Document:

Exhibit 10.1(b)

    
      
        

      

    

     

    
      	
              Exhibit
                10.1(b)

            
	 
	
              CENTURYTEL

            
	 
	
              UNION
                401(k)
                PLAN AND TRUST

            
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	
              As
                Amended and Restated

            
	
              Through
                December 31, 2006

            
	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CENTURYTEL
      UNION 401(k) PLAN AND TRUST

    (formerly
      the CenturyTel, Inc. Union Group Incentive Plan and Trust)

    As
      Amended and Restated Effective December 31, 2006

     

    The
      CenturyTel Union 401(k) Plan and Trust (formerly the CenturyTel, Inc. Union
      Group Incentive Plan and Trust) (“Plan”) is the product of the merger of the
      CenturyTel, Inc. Union Retirement Savings Plan and Trust (“Retirement Savings
      Plan”) and the Telephone USA of Wisconsin, LLC Union 401(k) Plan and Trust
      (“Telephone USA Union Plan”) into the CenturyTel, Inc. Union Group Incentive
      Plan and Trust (“Group Incentive Plan”), which merger was effective December 31,
      2006.

     

    Pacific
      Telecom, Inc. established the Group Incentive Plan for the exclusive benefit
      of
      eligible employees of Pacific Telecom, Inc. and its participating affiliates,
      originally effective June 1, 1983. The Group Incentive Plan was adopted by
      CenturyTel, Inc. (the “Company”) as of January 1, 1999, and was last amended and
      restated effective September 1, 2000. 

     

    CenturyTel,
      Inc. (the “Company”) established the Retirement Savings Plan for the exclusive
      benefit of eligible employees of the Company and its participating affiliates,
      originally effective April 1, 1992, and was last amended and restated effective
      September 1, 2000.

     

    Telephone
      USA of Wisconsin, LLC (“Telephone USA”) established the Telephone USA Union Plan
      for the exclusive benefit of eligible employees of Telephone USA and its
      participating affiliates, originally effective October 1, 2000. The Telephone
      USA Union Plan has not been amended and restated since its original effective
      date.

     

    The
      Plan,
      the Group Incentive Plan, the Retirement Savings Plan, and the Telephone USA
      Union Plan are intended to constitute qualified profit sharing plans, as
      described in Code Section 401(a), and include qualified cash or deferred
      arrangements, as described in Code Section 401(k). Participants in the former
      Group Incentive Plan and Telephone USA Union Plan are “Group A Participants”
under the Plan (see Appendix A), and Participants in the former Retirement
      Savings Plan are “Group B Participants under the Plan (see Appendix
      B).

     

    The
      assets of the Plan are held in the Union 401(k) Trust. The Union 401(k) Trust
      is
      incorporated herein as Appendix C. The Trustee of the Union 401(k) Trust is
      T.
      Rowe Price Trust Company. The Trust is intended to be tax exempt, as described
      in Code Section 501(a). 

     

    The
      Plan
      is intended to comply with the qualification requirements of the Economic Growth
      and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and other legal and
      regulatory changes since the last restatement, including requirements to adopt
      “good faith” amendments applicable to Cycle A filers in IRS Notice 2005-101, and
      is intended to comply in operation therewith. The Plan is also restated in
      good
      faith compliance with the final Treasury Regulations that were issued under
      Code
      Sections 401(k) and 401(m) and such provisions are effective January 1, 2006.
      To
      the extent that the Plan, as set forth below, is subsequently determined to
      be
      insufficient to comply with such requirements and any regulations issued, the
      Plan shall later be amended to so comply.

     

    The
      Plan,
      as set forth in this document, is hereby amended and restated effective December
      31, 2006, unless stated otherwise herein. The Plan name is being changed to
      the
      CenturyTel Union 401(k) Plan and Trust with this amendment and restatement.
      

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	 	
              Page

            
	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              1

            
	 	 	
               

            
	
              1.1

            	
              ACCRUED
                BENEFIT

            	
              1

            
	
              1.2

            	
              ADDITIONAL
                MATCH ACCOUNT

            	
              1

            
	
              1.3

            	
              ADDITIONAL
                MATCH CONTRIBUTIONS

            	
              1

            
	
              1.4

            	
              ADMINISTRATOR
                OR PLAN ADMINISTRATOR

            	
              1

            
	
              1.5

            	
              AFFILIATED
                EMPLOYER

            	
              1

            
	
              1.6

            	
              BENEFICIARY

            	
              1

            
	
              1.7

            	
              BOARD
                OR BOARD OF DIRECTORS

            	
              1

            
	
              1.8

            	
              BREAK
                IN SERVICE

            	
              1

            
	
              1.9

            	
              CATCH-UP
                CONTRIBUTIONS

            	
              1

            
	
              1.10

            	
              CODE

            	
              2

            
	
              1.11

            	
              COMMITTEE

            	
              2

            
	
              1.12

            	
              COMPANY

            	
              2

            
	
              1.13

            	
              COMPANY
                STOCK

            	
              2

            
	
              1.14

            	
              COMPENSATION

            	
              2

            
	
              1.15

            	
              EARLY
                RETIREMENT DATE

            	
              3

            
	
              1.16

            	
              EFFECTIVE
                DATE

            	
              3

            
	
              1.17

            	
              ELECTIVE
                DEFERRAL ACCOUNT

            	
              3

            
	
              1.18

            	
              ELECTIVE
                DEFERRALS

            	
              3

            
	
              1.19

            	
              EMPLOYEE

            	
              3

            
	
              1.20

            	
              EMPLOYER

            	
              3

            
	
              1.21

            	
              EMPLOYER
                CONTRIBUTION ACCOUNTS

            	
              4

            
	
              1.22

            	
              EMPLOYER
                MATCH ACCOUNT

            	
              4

            
	
              1.23

            	
              EMPLOYER
                MATCH CONTRIBUTIONS

            	
              4

            
	
              1.24

            	
              ERISA

            	
              4

            
	
              1.25

            	
              GROUP
                A PARTICIPANT

            	
              4

            
	
              1.26

            	
              GROUP
                B PARTICIPANT

            	
              4

            
	
              1.27

            	
              GROUP
                INCENTIVE PLAN

            	
              4

            
	
              1.28

            	
              HIGHLY
                COMPENSATED EMPLOYEE

            	
              4

            
	
              1.29

            	
              HOUR
                OF SERVICE

            	
              5

            
	
              1.30

            	
              INVESTMENT
                OPTIONS

            	
              6

            
	
              1.31

            	
              LEASED
                EMPLOYEE

            	
              6

            
	
              1.32

            	
              MATCHING
                CONTRIBUTIONS

            	
              6

            
	
              1.33

            	
              NON-HIGHLY
                COMPENSATED EMPLOYEE

            	
              6

            
	
              1.34

            	
              NORMAL
                RETIREMENT AGE

            	
              6

            
	
              1.35

            	
              PARTICIPANT

            	
              6

            
	
              1.36

            	
              PLAN

            	
              6

            
	
              1.37

            	
              PLAN
                YEAR

            	
              6

            
	
              1.38

            	
              PROFIT
                SHARING ACCOUNT

            	
              7

            
	
              1.39

            	
              QUALIFIED
                MATCHING CONTRIBUTION ACCOUNT

            	
              7

            
	
              1.40

            	
              QUALIFIED
                MATCHING CONTRIBUTIONS

            	
              7

            
	
              1.41

            	
              QUALIFIED
                NON-ELECTIVE CONTRIBUTION ACCOUNT

            	
              7

            
	
              1.42

            	
              QUALIFIED
                NON-ELECTIVE CONTRIBUTIONS

            	
              7

            
	
              1.43

            	
              RETIREMENT
                SAVINGS PLAN

            	
              7

            
	
              1.44

            	
              ROLLOVER
                ACCOUNT

            	
              7

            
	
              1.45

            	
              TELEPHONE
                USA UNION PLAN

            	
              7

            
	
              1.46

            	
              TRUST
                AGREEMENT

            	
              7

            
	
              1.47

            	
              TRUSTEE

            	
              7

            
	
              1.48

            	
              VALUATION
                DATE

            	
              7

            
	
              1.49

            	
              VESTING
                COMPUTATION PERIOD

            	
              7

            
	
              1.50

            	
              VOLUNTARY
                AFTER-TAX ACCOUNT

            	
              7

            

    

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    
      	
              1.51

            	
              YEAR
                OF SERVICE

            	
              8

            
	 	
               

            
	
              ARTICLE
                II ELIGIBILITY AND PARTICIPATION

            	
              8

            
	 	 	
               

            
	
              2.1

            	
              ACTIVE
                PARTICIPATION

            	
              8

            
	
              2.2

            	
              EXCLUSION
                OF CERTAIN EMPLOYEES

            	
              8

            
	
              2.3

            	
              RIGHTS
                OF RETURNING VETERANS

            	
              8

            
	 	
               

            
	
              ARTICLE
                III CONTRIBUTIONS

            	
              9

            
	 	 	
               

            
	
              3.1

            	
              ELECTIVE
                DEFERRALS

            	
              9

            
	
              3.2

            	
              EMPLOYER
                MATCH CONTRIBUTIONS

            	
              11

            
	
              3.3

            	
              ADDITIONAL
                MATCH CONTRIBUTIONS

            	
              13

            
	
              3.4

            	
              PAYMENT
                OF CONTRIBUTIONS: TIMING

            	
              14

            
	
              3.5

            	
              FORFEITURES

            	
              14

            
	
              3.6

            	
              ROLLOVERS
                AND TRANSFERS

            	
              14

            
	
              3.7

            	
              AVERAGE
                ACTUAL DEFERRAL PERCENTAGE TEST UNDER SECTION 401(K) OF THE
                CODE

            	
              14

            
	
              3.8

            	
              LIMITATIONS
                ON EMPLOYEE CONTRIBUTIONS AND EMPLOYER MATCHING
                CONTRIBUTIONS

            	
              18

            
	
              3.9

            	
              CORRECTIVE
                CONTRIBUTIONS

            	
              23

            
	 	
               

            
	
              ARTICLE
                IV ALLOCATION OF FUNDS

            	
              24

            
	 	 	
               

            
	
              4.1

            	
              ALLOCATION
                OF EMPLOYER CONTRIBUTIONS

            	
              24

            
	
              4.2

            	
              ALLOCATION
                OF NET EARNINGS OR LOSSES OF THE TRUST

            	
              24

            
	
              4.3

            	
              VALUATIONS

            	
              24

            
	
              4.4

            	
              ACCOUNTING
                FOR DISTRIBUTIONS

            	
              24

            
	
              4.5

            	
              SEPARATE
                ACCOUNTS

            	
              24

            
	
              4.6

            	
              INVESTMENT
                OF FUNDS

            	
              24

            
	 	
               

            
	
              ARTICLE
                V MAXIMUM CONTRIBUTIONS AND BENEFITS

            	
              26

            
	 	 	
               

            
	
              5.1

            	
              DEFINED
                CONTRIBUTION LIMITATION

            	
              26

            
	 	
               

            
	
              ARTICLE
                VI ENTITLEMENT TO BENEFITS

            	
              27

            
	 	 	 
	
              6.1

            	
              DISTRIBUTION
                EVENTS

            	
              27

            
	
              6.2

            	
              DISABILITY

            	
              27

            
	
              6.3

            	
              DEATH
                BENEFITS

            	
              28

            
	
              6.4

            	
              RETIREMENT

            	
              28

            
	
              6.5

            	
              TERMINATION
                OF EMPLOYMENT

            	
              28

            
	
              6.6

            	
              OTHER
                PERMITTED DISTRIBUTIONS

            	
              29

            
	 	
               

            
	
              ARTICLE
                VII DISTRIBUTION OF BENEFITS

            	
              32

            
	 	 	
               

            
	
              7.1

            	
              GENERAL

            	
              32

            
	
              7.2

            	
              METHOD
                OF DISTRIBUTION

            	
              32

            
	
              7.3

            	
              INSTALLMENT
                PAYMENTS

            	
              32

            
	
              7.4

            	
              COMMENCEMENT
                OF BENEFITS

            	
              32

            
	
              7.5

            	
              MINIMUM
                REQUIRED DISTRIBUTIONS

            	
              33

            
	
              7.6

            	
              DISTRIBUTION
                OF DEATH BENEFITS

            	
              34

            
	
              7.7

            	
              DISTRIBUTION
                UPON TERMINATION OF EMPLOYMENT AND RESTRICTIONS ON IMMEDIATE
                DISTRIBUTION

            	
              37

            
	
              7.8

            	
              FORFEITURE
                AND SPECIAL VESTING FORMULA

            	
              38

            
	
              7.9

            	
              RESTORATION
                OF FORFEITURE

            	
              38

            
	
              7.10

            	
              DIRECT
                ROLLOVER

            	
              39

            
	
              7.11

            	
              QUALIFIED
                DOMESTIC RELATIONS ORDER

            	
              40

            
	 	 
	
              ARTICLE
                VIII BENEFICIARY AND PARTICIPANT INFORMATION

            	
              41

            
	 	 	
               

            
	
              8.1

            	
              DESIGNATION
                OF BENEFICIARY

            	
              41

            
	
              8.2

            	
              INFORMATION
                TO BE FURNISHED BY PARTICIPANT AND BENEFICIARIES

            	
              41

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    
      	
              ARTICLE
                IX LOANS TO PARTICIPANTS

            	
              42

            
	 	 	
               

            
	
              9.1

            	
              LOANS

            	
              42

            
	
              9.2

            	
              PARTICIPANT
                LOAN PROGRAM

            	
              43

            
	 	
               

            
	
              ARTICLE
                X VOTING PROVISIONS

            	
              43

            
	 	 	 
	
              10.1

            	
              VOTING
                RIGHTS OF COMPANY STOCK

            	
              43

            
	
              10.2

            	
              RESPONDING
                TO TENDER AND EXCHANGE OFFERS

            	
              44

            
	
              10.3

            	
              CONFIDENTIALITY

            	
              44

            
	 	
               

            
	
              ARTICLE
                XI TOP HEAVY PROVISIONS

            	
              44

            
	 	 	
               

            
	
              11.1

            	
              APPLICABILITY

            	
              44

            
	
              11.2

            	
              DEFINITIONS

            	
              44

            
	
              11.3

            	
              MINIMUM
                ALLOCATION

            	
              48

            
	
              11.4

            	
              VESTING

            	
              49

            
	 	 
	
              ARTICLE
                XII ADMINISTRATION OF THE PLAN

            	
              49

            
	 	 	
               

            
	
              12.1

            	
              PLAN
                COMMITTEE

            	
              49

            
	
              12.2

            	
              DUTIES
                AND RESPONSIBILITIES OF FIDUCIARIES

            	
              49

            
	
              12.3

            	
              POWERS
                AND RESPONSIBILITIES OF THE PLAN ADMINISTRATOR

            	
              49

            
	
              12.4

            	
              ALLOCATION
                OF DUTIES AND RESPONSIBILITIES

            	
              51

            
	
              12.5

            	
              EXPENSES

            	
              51

            
	
              12.6

            	
              LIABILITIES

            	
              51

            
	
              12.7

            	
              CLAIMS
                PROCEDURE

            	
              51

            
	 	
               

            
	
              ARTICLE
                XIII AMENDMENT, TERMINATION AND MERGER

            	
              53

            
	 	 	
               

            
	
              13.1

            	
              AMENDMENTS

            	
              53

            
	
              13.2

            	
              PLAN
                TERMINATION: DISCONTINUANCE OF EMPLOYER CONTRIBUTIONS

            	
              53

            
	
              13.3

            	
              SUCCESSOR
                EMPLOYER

            	
              53

            
	
              13.4

            	
              MERGER,
                CONSOLIDATION OR TRANSFER

            	
              54

            
	 	
               

            
	
              ARTICLE
                XIV MISCELLANEOUS PROVISIONS

            	
              54

            
	 	 	
               

            
	
              14.1

            	
              EXCLUSIVE
                BENEFIT OF PARTICIPANTS AND BENEFICIARIES

            	
              54

            
	
              14.2

            	
              NONGUARANTEE
                OF EMPLOYMENT

            	
              54

            
	
              14.3

            	
              RIGHTS
                TO TRUST ASSETS

            	
              54

            
	
              14.4

            	
              NONALIENATION
                OF BENEFITS

            	
              55

            
	
              14.5

            	
              GENDER

            	
              55

            
	
              14.6

            	
              TITLES
                AND HEADINGS

            	
              55

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

    DEFINITIONS

     

    1.1    Accrued
      Benefit.
      The
      balance in a Participant’s or Beneficiary’s account, including contributions,
      distributions, forfeitures, income, expenses, gains and losses (whether or
      not
      realized) allocated or attributable thereto. Said account balance shall be
      determined as of the most recent Valuation Date. Each Accrued Benefit shall
      be
      divided into one or more of the following subaccounts, to the extent
      applicable:
      

     

    
      	 	
              (a)

            	
              Additional
                Match Account;

            

    

    
      	 	
              (b)

            	
              Elective
                Deferral Account; 

            

    

    
      	 	
              (c)

            	
              Employer
                Match Account; 

            

    

    
      	 	
              (d)

            	
              Profit
                Sharing Account;

            

    

    
      	 	
              (e)

            	
              Rollover/Transfer
                Account; 

            

    

    
      	 	
              (f)

            	
              Qualified
                Non-Elective Contribution Account;

            

    

    
      	 	
              (g)

            	
              Qualified
                Matching Contribution Account; and

            

    

    
      	 	
              (h)

            	
              Voluntary
                After-Tax Account.

            

    

    

    The
      foregoing accounts, which are designated as functional accounts, are derived
      from the source of the funds contributed thereto. 

     

    1.2    Additional
      Match Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Additional Match
      Contributions made to the Plan by the Employer. 

     

    1.3    Additional
      Match Contributions.
      Matching
      Contributions made to the Plan by the Employer pursuant to Section 3.3 of the
      Plan. 

     

    1.4    Administrator
      or Plan Administrator.
      The
      CenturyTel Retirement Committee.

     

    1.5    Affiliated
      Employer.
      The
      Employer and any corporation which is a member of a controlled group of
      corporations (as defined in Section 414(b) of the Code) which includes the
      Employer, any trade or business (whether or not incorporated) which is under
      common control (as defined in Section 414(c) of the Code) with the Employer,
      any
      organization (whether or not incorporated) which is a member of an affiliated
      service group (as defined in Section 414(m) of the Code) which includes the
      Employer, and any other entity required to be aggregated with the Employer
      pursuant to regulations under Section 414(o) of the Code. 

     

    1.6    Beneficiary.
      The
      person or persons so designated by the Participant to receive his benefits
      under
      the Plan in the event of his death, pursuant to Section 8.1 of the
      Plan. 

     

    1.7    Board
      or Board of Directors.
      The
      Board of Directors of the Company.

     

    1.8    Break
      in Service.
      A
      Vesting Computation Period in which an Employee fails to complete more than
      500
      Hours of Service with the Employer. 

     

    1.9    Catch-Up
      Contributions.
      Contributions made to the Plan by the Employer at the election of the
      Participant who has attained the age of 50 before the close of the Plan Year
      in
      lieu of cash compensation, pursuant to Section 3.1(d) of the Plan. These
      contributions are held in the Elective Deferral Account.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1.10     Code.
      The
      Internal Revenue Code of 1986, as amended.

     

    1.11  
        Committee.
      The
      committee designated by the Board of Directors or the Compensation Committee
      of
      the Board, pursuant to Section 12.1 of the Plan to control and manage the
      operation and administration of the Plan to the extent set forth
      herein. 

     

    1.12  
        Company.
      CenturyTel, Inc. or any successor by merger, purchase or otherwise.

     

    1.13  
        Company
      Stock. Shares
      of
      voting common stock, $1.00 par value, issued by the Company.

     

    1.14  
        Compensation.

     

    
      	 	
              (a)

            	
              Compensation.
                All of each Participant’s W-2 earnings, including any amount which is
                contributed by the Employer pursuant to a salary reduction agreement
                and
                which is not includible in the gross income of the Employee under
                Section
                125, 402(e)(3), 402(h)(1)(B), 403(b), 408(p)(2)(A)(i) or 457 of the
                Code,
                and excluding (a) severance pay or termination allowance in any form,
                (b)
                reimbursements or other expense allowances, cash and non-cash fringe
                benefits, moving expenses, deferred compensation and welfare benefits,
                and
                (c) for Group B Participants only, overtime, completion bonuses,
                Christmas
                bonuses, and restricted stock awards under the Company’s Restricted Stock
                Plan or Key Employee Incentive Compensation
                Plan.

            

    

     

    Effective
      January 1, 2007, Compensation shall mean the total amounts paid to a Participant
      by an Employer reported on Form W-2 of the Participant plus Elective Deferrals,
      including Catch-up Contributions, made pursuant to Section 3.1(d) of the Plan,
      contributions to Code Section 125 plans, and contributions to pay for qualified
      transportation fringe benefits under Code Section 132(f)(2), and excluding
      the
      following unless stated otherwise:

     

    
      	 	
              (1)

            	
              Overtime
                (for Group B Participants only). However, if a Group B Participant
                has
                fewer than 80 hours of standard pay, in such Employee’s payroll period,
                overtime pay is converted to standard pay until the Employee has
                80 hours
                for Plan purposes (40 hours if on a weekly
                payroll);

            

    

     

    
      	 	
              (2)

            	
              Reimbursements
                or other expense allowances, such as meal allowances, imputed income,
                special credits for waiver of benefits, housing allowance, moving
                expenses, and all other cash and non-cash fringe
                benefits;

            

    

     

    
      	 	
              (3)

            	
              Deferred
                compensation, and welfare benefits;
                and

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	 	
              (4)

            	
              Severance
                pay or termination pay in any form.

            

    

     

    
      	 	
              (b)

            	
              Section
                415 Compensation.
                Section 415 Compensation shall mean the total amounts paid to a
                Participant by an Employer reported on Form W-2 of the Participant
                plus
                Elective Deferrals, including Catch-up Contributions, made pursuant
                to
                Section 3.1(d) of the Plan, contributions to Code Section 125 plans,
                and
                contributions to pay for qualified transportation fringe benefits
                under
                Code Section 132(f)(2). The Employer can elect any other alternative
                definition of compensation as prescribed by the Code or Treasury
                Regulations provided the definition of compensation does not by design
                favor Highly Compensated Employees.

            

    

     

    
      	 	
              (c)

            	
              Total
                Compensation.
                Total Compensation shall mean Section 415 Compensation. However,
                the
                Employer can elect any alternative definition of compensation as
                prescribed by the Code or Treasury Regulations provided the definition
                of
                compensation does not favor Highly Compensated
                Employees.

            

    

     

    A
      Participant’s Compensation taken into account under the Plan for any Plan Year
      shall not exceed the limit that applies under Code Section 401(a)(17)(B) for
      that year, which limit is $225,000 for the 2007 Plan Year. Compensation shall
      include only the Compensation paid to an Employee while a Participant in the
      Plan.

     

    1.15  
        Early
      Retirement Date. The
      later
      of the date on which a Participant reaches age fifty-five (55) or completes
      five
      (5) Years of Service. 

     

    1.16  
        Effective
      Date.
      The
      effective date of this amendment and restatement shall be December 31,
      2006.

     

    1.17  
        Elective
      Deferral Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Elective Deferrals
      made to the Plan by the Employer on behalf of the Participant. 

     

    1.18  
        Elective
      Deferrals.
      Contributions made to the Plan by the Employer at the election of the
      Participant in lieu of cash compensation, pursuant to Section 3.1 of the Plan,
      including contributions made pursuant to a salary reduction
      agreement. 

     

    1.19  
        Employee.
      Any
      person employed by the Employer maintaining the Plan or any other Employer
      required to be aggregated with such Employer under Section 414(b), (c), (m)
      or
      (o) of the Code and including Leased Employees within the meaning of Section
      414(n)(2) or (o) of the Code. Notwithstanding the foregoing, if such Leased
      Employees constitute less than twenty percent of the Employer’s non-highly
      compensated work force within the meaning of Section 414(n)(5)(C)(ii) of the
      Code, the term “Employee” shall not include those Leased Employees covered by a
      plan described in Section 414(n)(5) of the Code unless otherwise provided by
      the
      terms of the Plan. 

     

    1.20  
        Employer.
      The
      entity that establishes or maintains the Plan and any successor to such entity,
      as reflected in the lists of employers entering into collective bargaining
      agreements with Employees listed in Appendices A and B. Such lists of Employers
      shall change when an Employer enters into a collective bargaining agreement
      and
      attaches a revised Appendix A or B hereto, without the necessity of amending
      the
      Plan. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    1.21  
        Employer
      Contribution Accounts.
      The
      portion of a Participant’s Accrued Benefit consisting of his Employer Match
      Account and his Additional Match Account. 

     

    1.22  
        Employer
      Match Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Employer Match
      Contributions made to the Plan by the Employer. 

     

    1.23  
        Employer
      Match Contributions.
      Matching Contributions made to the Plan by the Employer pursuant to Section
      3.2
      of the Plan.

     

    1.24  
        ERISA.
      The
      Employee Retirement Income Security Act of 1974, as amended.

     

    1.25 
        Group
      A Participant.
      A Group
      A Participant is one who participates in the Plan pursuant to a collective
      bargaining agreement, as set forth on Appendix A to the Plan. Group A
      Participants include those who participated in the Group Incentive Plan or
      the
      Telephone USA Union Plan prior to December 31, 2006 (prior to its merger with
      the Plan).

     

    1.26 
        Group
      B Participant.
      A Group
      B Participant is one who participates in the Plan pursuant to a collective
      bargaining agreement, as set forth on Appendix B to the Plan. Group B
      Participants include those who participated in the Retirement Savings Plan
      prior
      to December 31, 2006 (prior to its merger with the Plan).

     

    1.27  
        Group
      Incentive Plan.
      The
      CenturyTel, Inc. Union Group Incentive Plan and Trust, into which the Retirement
      Savings Plan and Telephone USA Union Plans merged effective December 31,
      2006.

     

    1.28  
        Highly
      Compensated Employee.
      The term
      Highly Compensated Employee includes active Highly Compensated Employees and
      former Highly Compensated Employees.

     

    An
      active
      Highly Compensated Employee includes any Employee who: 

     

    
      	 	
              (a)

            	
              was
                a five-percent (5%) owner (as defined in Section 416(i)(1)(B)(i)
                of the
                Code) at any time during the year or the preceding year, or
                

            

    

     

    
      	 	
              (b)

            	
              for
                the preceding year had compensation within the meaning of Section
                415(c)(3) of the Code from the Employer in excess of $100,000 (as
                adjusted
                under Code Section 415(d)). (Employees earning $100,000 in 2006 will
                be
                considered Highly Compensated Employees in 2007). The applicable
                year of
                the Plan for which a determination is being made is called a determination
                year and the preceding twelve (12) month period is called a look-back
                year. 

            

    

     

    A
      former
      Highly Compensated Employee is determined based on the rules applicable to
      determining Highly Compensated Employee status as in effect for the
      determination year, in accordance with Treasury Regulations Section 1.414(q)-lT,
      A-4, and Notice 97-45. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    1.29  
        Hour
      of Service. 

     

    
      	 	
              (a)

            	
              An
                Hour of Service shall mean and include each hour for which an Employee
                is
                compensated by the Employer, or is entitled to be so compensated,
                for
                Service rendered by him to the Employer. These hours will be credited
                to
                the Employee for the computation period in which the duties are performed.
                

            

    

     

    
      	 	
              (b)

            	
              An
                Hour of Service shall also mean and include each hour for which an
                Employee is compensated by the Employer, or is entitled to be so
                compensated, on account of a period of time during which no Services
                are
                rendered by him to the Employer (regardless of whether the Employee
                shall
                have ceased to be an Employee) due to vacation, holiday, illness,
                incapacity (including disability), layoff, jury duty, military duty
                or
                leave of absence. No more than five hundred and one (501) Hours of
                Service
                shall be credited pursuant to this subparagraph (b) on account of
                any
                single continuous period during which an Employee renders no Services
                to
                the Employer (whether or not such period occurs in a single computation
                period). Hours under this paragraph will be calculated and credited
                pursuant to Section 2530.200b-2 of the Department of Labor Regulations,
                which are incorporated herein by this
                reference.

            

    

     

    
      	 	
              (c)

            	
              An
                Hour of Service shall also mean and include each hour for which back
                pay,
                without regard to mitigation of damages, has been awarded or agreed
                to by
                the Employer. The same Hours of Service shall not be credited both
                under
                subparagraph (a) or subparagraph (b), whichever shall be applicable,
                and
                also under this subparagraph (c). The hours will be credited to the
                Employee for the computation period or periods to which the award
                or
                agreement pertains rather than the computation period in which the
                award,
                agreement or payment is made. 

            

    

     

    Hours
      of
      Service will be credited for employment with any Employer or Affiliated
      Employer. Hours of Service will also be credited for any individual considered
      an Employee under Section 414(n) or (o) of the Code, and Treasury Regulations
      thereunder. 

     

    Solely
      for purposes of determining whether a Break in Service for participation and
      vesting purposes has occurred in a computation period, an individual who is
      absent from work for maternity or paternity reasons shall receive credit for
      the
      Hours of Service which would otherwise have been credited to such individual
      but
      for such absence, or in any case in which such hours cannot be determined,
      eight
      (8) Hours of Service per day of such absence. For purposes of this paragraph,
      an
      absence from work for maternity or paternity reasons means an absence (i) by
      reason of the pregnancy of the individual, (ii) by reason of a birth of a child
      of the individual, (iii) by reason of the placement of a child with the
      individual in connection with the adoption of such child by such individual,
      or
      (iv) for purpose of caring for such child for a period beginning immediately
      following such birth or placement. The House of Service credited under this
      paragraph shall be credited only (i) in the computation period in which the
      absence begins if the crediting is necessary to prevent a Break in Service
      in
      that period, or (ii) in all other cases, in the following computation period.
      

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    1.30  
        Investment
      Options.
      Any
      regulated investment companies registered under the Investment Company Act
      of
      1940, any common trust fund or collective investment fund of T. Rowe Price
      Associates, Inc. qualified under Sections 401 and 501 of the Code, and any
      other
      funding vehicle that the Committee permits. The Committee may change the
      available Investment Options from time to time. 

     

    1.31  
        Leased
      Employee.
      Any
      person (other than an Employee of the recipient) who, pursuant to an agreement
      between the recipient and any other person (“leasing organization”), has
      performed services for the recipient (or for the recipient and related persons
      determined in accordance with Section 414(n)(6) of the Code) on a substantially
      full time basis for a period of at least one (1) year, and such services are
      performed under primary direction by the recipient employer. 

     

    Any
      Leased Employee shall be treated as an Employee of the recipient Employer.
      However, contributions or benefits provided by the leasing organization which
      are attributable to service performed for the recipient Employer shall be
      treated as provided by the recipient Employer. The preceding sentence shall
      not
      apply to any Leased Employee if Leased Employees do not constitute more than
      twenty percent (20%) of the Employer’s non-highly compensated work force, and if
      such Employee is covered by a money purchase pension plan providing: (a) a
      nonintegrated Employer contribution rate of at least ten percent (10%) of Total
      Compensation, but including amounts contributed by the Employer pursuant to
      a
      salary reduction agreement which are excludible from the Employee’s gross income
      under Section 125, 402(e)(3), 402(h)(1)(B) or 403 (b) of the Code, (b) full
      and
      immediate vesting, and (c) each employee of the leasing organization (other
      than
      employees who perform substantially all of their services for the leasing
      organization) immediately participate in the plan. Item (c) shall not apply
      to
      any individual whose Total Compensation from the leasing organization in each
      Plan Year during the 4-year period ending with the Plan Year is less than
      $1,000.

     

    1.32  
        Matching
      Contributions.
      Contributions to the Plan made by the Employer and allocated to a Participant’s
      account by reason of the Participant’s Elective Deferrals.

     

    1.33  
        Non-Highly
      Compensated Employee.
      An
      Employee of the Employer who is not a Highly Compensated Employee.

     

    1.34  
        Normal
      Retirement Age.
      Normal
      Retirement Age is the Participant’s sixty-fifth (65th) birthday.

     

    1.35  
        Participant.
      An
      Employee of the Employer who has met the eligibility requirements as specified
      in Article II, and any former Employee on whose behalf an Accrued Benefit
      continues to be maintained in the Plan.

     

    1.36  
        Plan.
      The
      CenturyTel Union 401(k) Plan and Trust.

     

    1.37  
        Plan
      Year.
      The
      calendar year.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    1.38  
        Profit
      Sharing Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Employer
      Contributions made to the Plan in prior years.

     

    1.39  
        Qualified
      Matching Contribution Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Qualified Matching
      Contributions made to the Plan by the Employer.

     

    1.40  
        Qualified
      Matching Contributions.
      Matching
      Contributions made by the Employer and satisfies special requirements such
      as
      immediate vesting, nondiscrimination, and subject to withdrawal restrictions
      that are applicable to Elective Deferrals and which the Employer elects to
      treat
      as Qualified Matching Contributions.

     

    1.41  
        Qualified
      Non-Elective Contribution Account.
      The
      portion of a Participant’s Accrued Benefit which consists of Qualified
      Non-Elective Contributions made to the Plan by the Employer. 

     

    1.42  
        Qualified
      Non-Elective Contributions. Contributions
      (other than Matching Contributions or Qualifying Matching Contributions) made
      by
      the Employer and satisfies special requirements such as immediate vesting,
      nondiscrimination, and subject to withdrawal restrictions that are applicable
      to
      Elective Deferrals and which the Employer elects to treat as Qualified
      Non-Elective Contributions.

     

    1.43  
        Retirement
      Savings Plan.
      The
      CenturyTel, Inc. Union Retirement Savings Plan and Trust, which merged into
      the
      Plan effective December 31, 2006.

     

    1.44  
        Rollover
      Account.
      The
      portion of a Participant’s Accrued Benefit established in accordance with
      Section 3.6 of the Plan.

     

    1.45  
        Telephone
      USA Union Plan.
      The
      Telephone USA of Wisconsin, LLC Union 401(k) Plan, which merged into the Plan
      effective December 31, 2006.

     

    1.46  
        Trust
      Agreement. The
      agreement between the Employer and the Trustee under which the assets of the
      Plan are held, administered and managed.

     

    1.47  
        Trustee. The
      individual or corporate Trustee or Trustees under the Trust Agreement as they
      may be constituted from time to time.

     

    1.48  
        Valuation
      Date. The
      last
      day of each Plan Year and such other dates as may be necessary for the proper
      administration of the Plan.

     

    1.49  
        Vesting
      Computation Period. For
      purpose of computing an Employee’s nonforfeitable right to the account balance
      derived from Employer contributions, Years of Service and Breaks in Service
      will
      be measured by the Plan Year.

     

    1.50  
        Voluntary
      After-Tax Account. For
      Group
      B Participants only, that portion of a Participant’s Accrued Benefit, if any,
      attributable to amounts contributed by the Participant to the Plan as Employee
      After-Tax Contributions
      prior to September 1, 2000. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    1.51  
        Year
      of Service. A
      Vesting
      Computation Period or Plan Year, whichever is applicable, during which an
      Employee completes at least one thousand (l,000) Hours of Service (whether
      or
      not continuous). A Year of Service shall also be credited under this Plan to
      each Participant who was a participant in the Telephone USA Union Plan who
      was
      employed by the Employer as of October 1, 2000, for each year of service
      credited, as of October 1, 2000, under the GTE Savings Plan and the GTE Hourly
      Savings Plan.

     

    ARTICLE
      II

    ELIGIBILITY
      AND PARTICIPATION 

     

    2.1    Active
      Participation. Each
      Employee who is included in a unit of Employees covered by a collective
      bargaining agreement between Employee representatives and the Employer which
      provides for participation in this Plan by such Employees, as reflected in
      Appendices A and B, shall be eligible to participate in the Plan upon his date
      of employment or reemployment.

     

    2.2    Exclusion
      of Certain Employees. The
      following Employees are excluded from participation in the Plan: 

     

    
      	 	
              (a)

            	
              Employees
                whose compensation and conditions of employment are covered by a
                collective bargaining agreement to which the Employer is a party
                and which
                does not call for the Employee’s participation in the Plan;
                

            

    

     

    
      	 	
              (b)

            	
              Temporary
                Employees hired specifically to fill temporary or occasional
                needs; 

            

    

     

    
      	 	
              (c)

            	
              Employees
                who are non-resident aliens and who receive no Earned Income from
                the
                Employer which constitutes income from sources within the United
                States;
                and 

            

    

     

    
      	 	
              (d)

            	
              Employees
                whose compensation and conditions of employment are not covered by
                a
                collective bargaining agreement.

            

    

     

    In
      the
      event an Employee who is not a member of an eligible class of Employees becomes
      a member of the eligible class, such Employee shall be eligible to participate
      immediately. In the event a Participant is no longer a member of an eligible
      class of Employees and becomes ineligible to participate, such Employee shall
      be
      eligible to participate immediately upon returning to an eligible class of
      Employees.

     

    2.3    Rights
      of Returning Veterans.
      Notwithstanding any of the provisions of the Plan to the contrary, rights of
      Employees with respect to Service in the Uniformed Services will be provided
      in
      accordance with Code Section 414(u).

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

    CONTRIBUTIONS

     

    3.1    Elective
      Deferrals.

     

    
      	 	
              (a)

            	
              Participant
                Election.
                A
                Participant may elect to defer Compensation that would otherwise
                be paid
                to him but for the deferral of such Compensation, in an amount expressed
                as a whole percentage from one percent (l%) to twenty-five percent
                (25%)
                of his Compensation as he shall elect in the manner prescribed by
                the
                Employer. The
                Employer may change from time to time, in writing, without the necessity
                of amending the Plan, the minimum and maximum percentages of Compensation
                that a Participant can elect to defer hereunder. Such salary deferral
                contributions shall be accomplished through the direct reduction
                of
                Compensation in each payroll period during which the election is
                in
                effect. A Participant may elect to increase, decrease or discontinue
                his
                salary deferral contributions by submitting a request to the Employer
                in
                the manner prescribed by the Employer. In addition, a Participant
                with an
                existing contribution rate of at least one percent (1%) may elect,
                in the
                manner prescribed by the Employer and under such procedures as are
                determined by the Employer, for his salary deferral contributions
                to be
                automatically increased according to a pre-determined schedule. A
                Participant shall at all times have a nonforfeitable interest in
                his
                Elective Deferral Account.

            

    

     

    
      	 	
              (b)

            	
              Elective
                Deferrals.
                With respect to any taxable year, a Participant’s Elective Deferrals are
                the sum of all Employer contributions made on behalf of such Participant
                pursuant to an election to defer under Section 3.1(a) of the Plan.
                

            

    

     

    
      	 	
              (c)

            	
              Limitation
                on Elective Deferrals.
                No
                Participant may make Elective Deferrals under this Plan, or any other
                qualified plan maintained by the Employer during any taxable year,
                in
                excess of the dollar limitation in Code Section 402(g) in effect
                for such
                taxable year, except to the extent permitted under Section 3.1(d)
                of this
                Plan and Code Section 414(v), if applicable. Notwithstanding any
                other
                provisions of the Plan, the Employer may distribute to the Participant,
                not later than April 15 following the calendar year to which the
                deferral
                is attributable, any deferral in excess of the aforesaid limit together
                with any earnings allocable thereto. A Participant is deemed to notify
                the
                Committee of any Excess Deferrals that arise under this Plan and
                any other
                plans of this Employer. The Employer may also distribute to the
                Participant any deferrals, together with any income allocable thereto,
                which the Participant has advised the Employer (in writing by March
                1)
                represent excess deferrals because of amounts deferred in the preceding
                year by the Participant under any other plans or arrangements described
                in
                Section 401(k), 408(k) or 403(b) of the Code.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    For
      purposes of the above, “Excess Deferrals” shall mean those Elective Deferrals
      that are includible in a Participant’s gross income under Section 402(g) of the
      Code to the extent such Participant’s Elective Deferrals for a taxable year
      exceed the dollar limitation under such Code Section. Excess Deferrals shall
      be
      treated as Annual Additions under the Plan, unless such amounts are distributed
      no later than the first April l5 following the close of Participant’s taxable
      year. 

     

    Determination
      of Earnings:
      Excess
      Deferrals shall be adjusted for any earnings up to the date of distribution.
      The
      amount of earnings allocable to Excess Deferrals is the sum of (1) income or
      loss allocable to the Participant’s Elective Deferral Account for the Plan Year
      multiplied by a fraction, the numerator of which is such Participant’s Excess
      Deferrals for the Plan Year and the denominator is the Participant’s account
      balance attributable to Elective Deferrals as of the beginning of the Plan
      Year
      plus the Participant’s Elective Deferrals for the Plan Year and (2) 10 percent
      of the amount determined under (1) multiplied by the number of whole calendar
      months between the end of the Plan Year and the date of distribution, counting
      the month of distribution if distribution occurs after the 15th
      day of
      such month. Notwithstanding, the Committee may use any reasonable method for
      computing the income allocable to Excess Deferrals, provided the method is
      used
      consistently for all Participants and for all corrective distributions under
      the
      Plan for the Plan Year, and is used by the Plan for allocating income to
      Participants’ accounts. The plan will not fail to use a reasonable method of
      computing the income allocable to Excess Deferrals merely because the income
      allocable to Excess Deferrals is determined on a date that is no more than
      seven
      days before the distribution. 

     

    
      	 	
              (d)

            	
              Catch-Up
                Contributions.
                All Participants who have attained age 50 before the close of the
                Plan
                Year shall be eligible to make Catch-Up Contributions in an amount
                expressed as a stated dollar amount, in the manner prescribed by
                the
                Employer and in accordance with, and subject to the limitations of,
                Code
                Section 414(v). For 2007 the Catch-Up Contribution Limit is $5,000.
                Such
                Catch-Up Contributions shall not be taken into account for purposes
                of the
                provisions of the Plan implementing the required limitations of Code
                Sections 402(g) and 415. The Plan shall not be treated as failing
                to
                satisfy the provisions of the Plan implementing the requirements
                of Code
                Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable,
                by reason of the making of such Catch-Up
                Contributions.

            

    

     

    
      	 	
              (e)

            	
              After-Tax
                Contributions.
                Retirement Savings Plan Participants were allowed to make Employee
                After-Tax Contributions to the Retirement Savings Plan prior to September
                1, 2000. Such contributions were disallowed on and after September
                1,
                2000. No other After-Tax Contributions are allowed.
                

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    3.2    Employer
      Match Contributions.
      

     

    
      	 	
              (a)

            	
              Subject
                to the limitation on Annual Additions as described in Article V of
                the
                Plan, for any Plan Year, the Employer shall contribute to the Employer
                Match Accounts in the Plan on behalf of each Participant, in the
                form of
                Matching Contributions, an amount equal to a percentage of such
                Participant’s Elective Deferrals as established by the Employer. Employer
                Match Contributions will be calculated on a payroll period basis.
                No
                contributions will be made to “true up” the Participant’s Match
                Contribution after the end of the Plan
                Year.

            

    

     

    
      	 	
              (b)

            	
              The
                Employer Match Contribution to be made by the Employer for each period
                shall be such percentage of a Participant’s Elective Deferrals, as is
                specified for such Participant’s union local on Appendices A and B hereof,
                provided that Employer Match Contributions shall be made based solely
                upon
                a Participant’s Elective Deferrals that do not exceed six percent (6%) of
                the Participant’s Compensation for such period. The percentage matching
                rate and percentage of considered Compensation as stated in the preceding
                sentence shall continue in effect until otherwise changed pursuant
                to the
                applicable union collective bargaining agreement or by resolution
                of the
                Employer’s Board of Directors, which change shall be effectuated by
                attaching a revised Appendix A or B hereto, without the necessity
                of
                amending the Plan. Any Matching Contributions made under this Section
                3.2
                on behalf of a Participant during the Plan Year that are attributable
                to
                Excess Deferrals, shall be deemed forfeited. 

            

    

     

    
      	 	
              (c)

            	
              Matching
                Contributions for Group A Participants shall be vested in accordance
                with
                the following schedule: 

            

    

     

    
      	
              YEARS
                OF SERVICE

            	
              VESTED
                PERCENTAGE

            
	
              0

            	
              0%

            
	
              1

            	
              20%

            
	
              2

            	
              40%

            
	
              3

            	
              60%

            
	
              4

            	
              80%

            
	
              5

            	
              100%

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Matching
      Contributions for Group B Participants shall be vested in accordance with the
      following schedule:

     

    
      	
              YEARS
                OF SERVICE

            	
              VESTED
                PERCENTAGE

            
	
              Less
                than 3

            	
              0%

            
	
              3
                or more

            	
              100%

            

    

     

    In
      any
      event, Matching Contributions shall be fully vested at a Participant’s Early or
      Normal Retirement Date, upon the complete or partial termination of the Plan,
      or
      upon the complete discontinuance of Employer contributions to the Plan.

     

    Matching
      Contributions attributable to Excess Deferrals will be forfeited and applied
      to
      reduce Employer Contributions to the Plan. Any Employer Match Contribution
      with
      respect to Excess Contributions that are distributed shall be
      forfeited.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Notwithstanding
                the above vesting schedule, an Employee’s right to his or her Employer
                Match Account balance shall fully vest and become nonforfeitable
                automatically upon the occurrence of any of the following events,
                each of
                which shall constitute a “Change of Control”: (i) the acquisition by any
                person of beneficial ownership of 30% or more of the outstanding
                shares of
                the Company Stock, or 30% or more of the combined voting power of
                the
                Company’s then outstanding securities entitled to vote generally in the
                election of directors; provided, however, that for purposes of this
                sub-item (i), the following acquisitions shall not constitute a Change
                of
                Control: (a) any acquisition (other than a Business Combination (as
                defined below) which constitutes a Change of Control under sub-item
                (iii)
                hereof) of Company Stock directly from the Company, (b) any acquisition
                of
                Company Stock by the Company or its subsidiaries, (c) any acquisition
                of
                Company Stock by any employee benefit plan (or related trust) sponsored
                or
                maintained by the Company or any corporation controlled by the Company,
                or
                (d) any acquisition of Company Stock by any corporation pursuant
                to a
                Business Combination that does not constitute a Change of Control
                under
                sub-item (iii) hereof; or (ii) individuals who, as of January 1,
                2000,
                constitute the Board of Directors (the “Incumbent Board”) cease for any
                reason to constitute at least a majority of the Board of Directors;
                provided, however, that any individual becoming a director subsequent
                to
                such date whose election, or nomination for election by the Company’s
                shareholders, was approved by a vote of at least two-thirds of the
                directors then comprising the Incumbent Board shall be considered
                a member
                of the Incumbent Board, unless such individual’s initial assumption of
                office occurs as a result of an actual or threatened election contest
                with
                respect to the election or removal of directors or other actual or
                threatened solicitation of proxies or consents by or on behalf of
                a person
                other than the Incumbent Board; or (iii) consummation of a reorganization,
                share exchange, merger or consolidation (including any such transaction
                involving any direct or indirect subsidiary of the Company), or sale
                or
                other disposition of all or substantially all of the assets of the
                Company
                (a “Business Combination”); provided, however, that in no such case shall
                any such transaction constitute a Change of Control if immediately
                following such Business Combination: (a) the individuals and entities
                who
                were the beneficial owners of the Company’s outstanding Company Stock and
                the Company’s voting
                securities entitled to vote generally in the election of directors
                immediately prior to such Business Combination have direct or indirect
                beneficial ownership, respectively, of more than 50% of the then
                outstanding shares of common stock, and more than 50% of the combined
                voting power of the then outstanding voting securities entitled to
                vote
                generally in the election of directors of the surviving or successor
                corporation, or, if applicable, the ultimate parent company thereof
                (the
                “Post-Transaction Corporation”), and (b) except to the extent that such
                ownership existed prior to the Business Combination, no person (excluding
                the Post-Transaction Corporation and any employee benefit plan or
                related
                trust of either the Company, the Post-Transaction Corporation or
                any
                subsidiary of either corporation) beneficially owns, directly or
                indirectly, 20% or more of the then outstanding shares of common
                stock of
                the corporation resulting from such Business Combination or 20% or
                more of
                the combined voting power of the then outstanding voting securities
                of
                such corporation, and (c) at least a majority of the members of the
                board
                of directors of the Post-Transaction Corporation were members of
                the
                Incumbent Board at the time of the execution of the initial agreement,
                or
                of the action of the Board of Directors, providing for such Business
                Combination; or (iv) approval by the shareholders of the Company
                of a
                complete liquidation or dissolution of the Company. For purposes
                of the
                immediately preceding sentence, the term “person” shall mean a natural
                person or entity, and shall also mean the group or syndicate created
                when
                two or more persons act as a syndicate or other group (including,
                without
                limitation, a partnership or limited partnership) for the purpose
                of
                acquiring, holding, or disposing of a security, except that “person” shall
                not include an underwriter temporarily holding a security pursuant
                to an
                offering of the security.

            

    

     

    3.3    Additional
      Match Contributions.
      The
      Employer may make an Additional Match Contribution to the Additional Match
      Accounts in the Plan in such amount as the Employer, in its discretion, may
      determine. Any such Additional Match Contribution shall be made on behalf of
      each Participant who (i) was an active Participant in the Plan at any time
      during the Plan Year and (ii) was an Employee on the last day of the Plan Year.
      The Additional Match Contribution shall be allocated to each such Participant’s
      Additional Match Account in the same proportion as the Employer Match
      Contributions on behalf of such Participant bears to the Employer Match
      Contributions on behalf of all Participants that qualify for Additional Match
      Contributions.
      Additional Match Contributions shall be vested in accordance with the Vesting
      Schedules set forth in Section 3.2.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    3.4    Payment
      of Contributions: Timing.
      The
      Employer Match Contributions and Additional Match Contributions made pursuant
      to
      this Article III of the Plan shall become due on the last day in such Plan
      Year,
      unless actually paid prior thereto. The Employer shall pay to the Trustee all
      Employer contributions not later than the due date (including extensions) of
      the
      Employer’s federal income tax return for the taxable year ending with or within
      the Plan Year. 

     

    3.5    Forfeitures.
      Forfeitures shall be used to reduce Employer obligations to make Employer Match
      Contributions or, at the discretion of the Committee, applied toward Plan
      expenses.

     

    3.6    Rollovers
      and Transfers.

     

    
      	 	
              (a)

            	
              A
                Participant may pay over to the Trust an amount which constitutes
                a
                qualified rollover contribution under Section 402(c) or 408(d)(3)
                of the
                Code.

            

    

     

    
      	 	
              (b)

            	
              The
                Plan will accept, in addition to the rollovers described in the previous
                paragraph, an eligible rollover distribution from an annuity contract
                described in Section 403(b) of the Code, excluding after-tax employee
                contributions, and distributions from an eligible plan under Section
                457(b) of the Code that is maintained by a State, political subdivision
                of
                a state or any agency or instrumentality of a state or political
                subdivision of a state.

            

    

     

    
      	 	
              (c)

            	
              The
                Trustee may accept a direct transfer of funds, pursuant to Section
                401(a)(31) of the Code from a plan which the Committee reasonably
                believes
                to be qualified under Section 401(a) of the Code in which a Participant
                was a participant. 

            

    

     

    
      	 	
              (d)

            	
              Any
                such rollover or transfer to the Plan shall constitute a part of
                the
                Participant’s Accrued Benefit under the Plan, shall be accounted for
                separately and shall be fully vested at all
                times.

            

    

     

    3.7    Average
      Actual Deferral Percentage Test Under Section 401(k) of the
      Code. 

     

    
      	 	
              (a)

            	
              General
                Tests.
                Notwithstanding any other provisions in the Plan, for any Plan Year,
                the
                Employer shall be permitted to impose an administrative limit on
                Elective
                Deferrals for any Highly Compensated Employee, to the extent necessary
                to
                ensure that the Plan satisfies one of the following tests:
                

            

    

     

    
      	 	
              (1)

            	
              The
                Average Actual Deferral Percentage for eligible Highly Compensated
                Employees for the Plan Year shall not exceed the Average Actual Deferral
                Percentage for eligible Non-Highly Compensated Employees for the
                Plan Year
                multiplied by 1.25; or 

            

    

     

    
      	 	
              (2)

            	
              the
                Average Actual Deferral Percentage for eligible Highly Compensated
                Employees for the Plan Year shall not exceed the Average Actual Deferral
                Percentage for eligible Non-Highly Compensated Employees for the
                Plan Year
                multiplied by two (2), provided that the Average Actual Deferral
                Percentage for eligible Highly Compensated Employees does not exceed
                the
                Average Actual Deferral Percentage for eligible Non-Highly Compensated
                Employees by more than two (2) percentage
                points.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    At
      the
      Committee’s election, the test described above may be performed in accordance
      with the alternatives described in Treasury Regulation Section
      1.401(k)-2(a)(1)(iii) for plans that permit participation prior to the minimum
      age and service period described in Section 410(a)(1)(A) of the
      Code.

     

    
      	 	
              (b)

            	
              Testing
                Method.
                The Company elects to use the current year testing method for determining
                the Actual Deferral Percentage for the Non-Highly Compensated
                Participants. This method has been used by the Plan, the Group Incentive
                Plan, the Retirement Savings Plan, and the Telephone USA Union Plan
                for
                the prior five years. The Company may elect to change to the prior
                year
                method as provided for in Internal Revenue Service Notice 98-1 or
                its
                subsequent modification and Treasury Regulation Section
                1.401(k)-2.

            

    

     

    
      	 	
              (c)

            	
              Definitions.
                For purposes of this Section 3.7 of the Plan, the following definitions
                shall apply: 

            

    

     

    
      	 	
              (1)

            	
              Actual
                Deferral Percentage
                (ADP) shall mean, for a group of Participants for a Plan Year, the
                average
                deferral ratio (“ADR”) (calculated separately for each Participant in such
                group) of (i) the amount of Employer contributions actually paid
                over to
                the Trust on behalf of such Participant for the Plan Year to (ii)
                the
                Total Compensation of the Participant for such Plan Year. Employer
                contributions on behalf of any Participant shall include: (i) any
                Elective
                Deferrals made pursuant to the Participant’s deferral election (including
                Excess Deferrals of Highly Compensated Employees), and (ii) at the
                election of the Committee, and provided the requirements described
                in
                Treasury Regulation Section 1.401(k)-2(a)(6) are satisfied, Qualified
                Non-Elective Contributions and Qualified Matching Contributions,
                but
                excluding (A) Catch-Up Contributions, (B) Excess Deferrals of Non-Highly
                Compensated Employees that arise solely from Elective Deferrals made
                under
                the Plan or plans, of this Employer, (C) Elective Deferrals that
                are taken
                into account in the Contribution Percentage Test (provided the ADP
                test is
                satisfied both with and without exclusion of these Elective Deferrals);
                and (D) Elective Deferrals made under Code Section 414(u) by reason
                of a
                Participant’s qualified military service. If no Elective Deferrals,
                Qualified Non-Elective Contributions and Qualified Matching Contributions
                are taken into account with respect to an Employee for the year,
                the ADR
                of the Employee is zero.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              Average
                Actual Deferral Percentage
                shall mean the average (expressed as a percentage) of the Actual
                Deferral
                Percentages of either eligible Highly Compensated Employees or Non-Highly
                Compensated Employees. 

            

    

     

    
      	 	
              (d)

            	
              Special
                Rules.
                The following special rules shall apply for purposes of this Section
                3.7:

            

    

     

    
      	 	
              (1)

            	
              The
                Actual Deferral Percentage for any eligible Highly Compensated Employee
                for the Plan Year and who is eligible to have Elective Deferrals
                or
                Qualified Non-Elective Contributions or Qualified Matching Contributions
                allocated to his account under two or more plans, or arrangements,
                described in Section 401(k) of the Code that are maintained by the
                Employer or an Affiliated Employer shall be determined as if all
                such
                Elective Deferrals, Qualified Non-Elective Contributions and Qualified
                Matching Contributions were made under a single arrangement. If a
                Highly
                Compensated Employee participates in two or more cash or deferred
                arrangements that have different Plan Years, all cash or deferred
                arrangements ending with or within the same calendar year shall be
                treated
                as a single arrangement. Notwithstanding the foregoing, certain plans
                will
                be treated as separately if mandatorily disaggregated under regulations
                under Section 401(k) of the Code.

            

    

     

    
      	 	
              (2)

            	
              In
                the event that this Plan satisfies the requirements of Section 401(k),
                401(a)(4) or 410(b) of the Code only if aggregated with one or more
                other
                plans, or if one or more other plans satisfy the requirements of
                Sections
                401(a)(4) and 410(b) of the Code only if aggregated with this Plan,
                then
                this Section shall be applied by determining the ADP of Employees
                as if
                all such plans were a single plan. Plans may be aggregated in order
                to
                satisfy Section 401(k) of the Code only if they have the same Plan
                Year
                and use the same ADP testing
                method.

            

    

     

    
      	 	
              (3)

            	
              For
                purposes of determining the ADP test, Elective Deferrals, Qualified
                Non-Elective Contributions and Qualified Matching Contributions must
                be
                made before the last day of the 12-month period immediately following
                the
                Plan Year to which contributions relate.

            

    

     

    
      	 	
              (4)

            	
              The
                Employer shall maintain records sufficient to demonstrate satisfaction
                of
                the ADP test and the amount of Qualified Non-Elective Contributions
                or
                Qualified Matching Contributions, or both, used in such test.
                

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	 	
              (5)

            	
              Treasury
                Regulations Sections 1.401(k)-1 and 1.401(k)-2 are incorporated herein
                for
                determining the Elective Deferrals, Qualified Non-Elective Contributions,
                Qualified Matching Contributions and Actual Deferral Percentage of
                any
                Participant. 

            

    

     

    
      	 	
              (e)

            	
              Distribution
                of Excess Contributions.
                Notwithstanding any other provisions of this Plan, Excess Contributions
                (defined below), plus any income and minus any loss allocable thereto,
                shall be distributed no later than the last day of each Plan Year
                to
                Participants to whose accounts such Excess Contributions were allocated
                for the preceding Plan Year except to the extent the Excess Contributions
                are classified as Catch-Up Contributions. If such excess amounts
                are
                distributed more than 2 1⁄2 months after the last day of the Plan Year in
                which such excess amounts arose, a ten percent (10%) excise tax will
                be
                imposed on the Employer maintaining the Plan with respect to such
                amounts.
                Excess Contributions are allocated to the Highly Compensated Employees
                with the largest amounts of Employer contributions taken into account
                in
                calculating the ADP test for the year in which the excess arose,
                beginning
                with the Highly Compensated Employee with the largest amount of such
                Employer contributions and continuing in descending order until all
                the
                Excess Contributions have been allocated. For purposes of the preceding
                sentence, the “largest amount” is determined after distribution of any
                Excess Contributions. Employer Match Contributions with respect to
                Excess
                Contributions that are distributed shall be
                forfeited.

            

    

     

    Excess
      Contributions (including the amounts recharacterized) shall be treated as Annual
      Additions under the Plan. 

     

    Determination
      of Income or Loss:
      Excess
      Contributions shall be adjusted for any income (gain or loss) up to the date
      of
      distribution. The income or loss allocable to Excess Contributions allocated
      to
      each Participant is the sum of (1) income or loss allocable to the Participant’s
      Elective Deferral Account (and, if applicable, the Qualified Non-Elective
      Contribution Account or the Qualified Matching Contribution Account or both)
      for
      the Plan Year multiplied by a fraction, the numerator of which is such
      Participant’s Excess Contributions for the year and the denominator of which is
      the Participant’s account balance attributable to Elective Deferrals (and
      Qualified Non-Elective Contributions or Qualified Matching Contributions, or
      both, if any of such contributions are included in the ADP test) without regard
      to any income or loss occurring during such Plan Year, and (2) 10 percent of
      the
      amount determined under (1) multiplied by the number of whole calendar months
      between the end of the Plan Year and the date of distribution, counting the
      month of distribution if distribution occurs after the 15th day of such month.
      Notwithstanding, the Committee may use any reasonable method for computing
      the
      income allocable to Excess Contributions, provided the method is used
      consistently for all Participants and for all corrective distributions under
      the
      Plan for the Plan Year, and is used by the Plan for allocating income to
      Participants’ accounts. The Plan will not fail to use a reasonable method merely
      because the income allocable to Excess Contributions is determined on a date
      that is no more than seven days before the distribution.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Accounting
      for Excess Contributions:
      Excess
      Contributions allocated to a Participant shall be distributed from the
      Participant’s Elective Deferral Account and Qualified Matching Contribution
      Account (if applicable) in proportion to the Participant’s Elective Deferrals
      and Qualified Matching Contributions (to the extent used in the ADP test) for
      the Plan Year. Excess Contributions shall be distributed from the Participant’s
      Qualified Non-Elective Contribution Account only to the extent that such Excess
      Contributions exceed the balance in the Participant’s Elective Deferral Account
      and Qualified Matching Contribution Account. 

     

    For
      purposes of this Section, “Excess Contributions” shall mean the excess of
      Elective Deferrals on behalf of Highly Compensated Employees for a Plan Year
      over the maximum amount of such deferrals permitted under the ADP
      test.

     

    3.8    Limitations
      on Employee Contributions and Employer Matching
      Contributions.

     

    
      	 	
              (a)

            	
              General
                Tests.
                Notwithstanding any other provisions in the Plan, for any Plan Year,
                the
                Employer shall be permitted to impose an administrative limit on
                Elective
                Deferrals, as described in Section 3.1 of the Plan, for any Highly
                Compensated Employee to the extent necessary to ensure that the Plan
                satisfies one of the following tests:

            

    

     

    
      	 	
              (1)

            	
              the
                Average Contribution Percentage for eligible Highly Compensated Employees
                for the Plan Year shall not exceed the Average Contribution Percentage
                for
                eligible Non-Highly Compensated Employees for the Plan Year multiplied
                by
                1.25; or

            

    

     

    
      	 	
              (2)

            	
              the
                Average Contribution Percentage for eligible Highly Compensated Employees
                for the Plan Year shall not exceed the Average Contribution Percentage
                for
                eligible Non-Highly Compensated Employees for the Plan Year multiplied
                by
                two (2), provided that the Average Contribution Percentage for eligible
                Highly Compensated Employees does not exceed the Average Contribution
                Percentage for eligible Non-Highly Compensated Employees by more
                than two
                (2) percentage points. 

            

    

     

    At
      the
      Committee’s election the test described above may be performed in accordance
      with the alternatives described in Treasury Regulation Section
      1.401(k)-2(a)(1)(iii) for plans that permit participation prior to the minimum
      age and service period described in Section 410(a)(1)(A) of the
      Code.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Testing
                Method.
                The Company elects to use the current year testing method for determining
                the Actual Contribution Percentage for the Non-Highly Compensated
                Participants. This method has been used by the Plan, the Group Incentive
                Plan, the Retirement Savings Plan, and the Telephone USA Union Plan
                for
                the prior five years. The Company may elect to change to the prior
                year
                method as provided for in Internal Revenue Service Notice 98-1 or
                its
                subsequent modification, and Treasury Regulation Section
                1.401(m)-2.

            

    

     

    
      	 	
              (c)

            	
              Definitions.
                For purposes of this Section 3.8 of the Plan, the following definitions
                shall apply: 

            

    

     

    
      	 	
              (1)

            	
              Average
                Contribution Percentage
                (ACP) shall mean the average (expressed as a percentage) of the
                Contribution Percentage Amounts for a group of Participants (either
                Highly
                Compensated Employees or Non-Highly Compensated Employees) for the
                Plan
                Year. 

            

    

     

    
      	 	
              (2)

            	
              Contribution
                Percentage
                shall mean the ratio (expressed as a percentage) of the Participant’s
                Contribution Percentage Amounts to the Compensation of the Participant.
                Sections 1.401(m)-1 and 1.401(m)-2 of the Treasury Regulations are
                incorporated herein for determining the Contribution
                Percentage.

            

    

     

    
      	 	
              (3)

            	
              Aggregate
                Limit
                shall mean the sum of (i) 125% of the greater of the Average Deferral
                Percentage of the Non-Highly Compensated Employees for the Plan Year
                or
                the Average Contribution Percentage of Non-Highly Compensated Employees
                under the Plan subject to Section 401(m) of the Code for the Plan
                Year
                beginning with or within the Plan Year of the CODA and (ii) the lesser
                of
                200% or two plus the lesser of such Average Deferral Percentage or
                Average
                Contribution Percentage. 

            

    

     

    
      	 	
              (4)

            	
              Contribution
                Percentage Amounts
                shall mean the sum of the Employee Contributions, Matching Contributions
                and Qualified Matching Contributions (to the extent not taken into
                account
                for purposes of the Average Deferral Percentage test) made under
                the Plan
                on behalf of the Participant for the Plan Year. Such Contribution
                Percentage Amounts shall not include Matching Contributions that
                are
                forfeited because the contributions to which they relate are Excess
                Deferrals, Excess Contributions or Excess Aggregate Contributions
                or
                additional Employee Contributions or Matching Contributions made
                under
                Code Section 414(u) by reason of a Participant’s qualified military
                service. The Employer may include Qualified Non-Elective Contributions
                in
                the Contribution Percentage Amounts. The Employer also may elect
                to use
                Elective Deferrals in the Contribution Percentage Amounts so long
                as the
                Average Deferral Percentage test is met before the Elective Deferrals
                are
                used in the Actual Contribution Percentage test and continues to
                be met
                following the exclusion of those Elective Deferrals that are used
                to meet
                the Actual Contribution Percentage test. If no Employee Contributions,
                Matching Contributions, Elective Contributions, or Qualified Non-elective
                Contributions are taken into account under this paragraph with respect
                to
                a Participant for the year, the Contribution Percentage Amount is
                zero.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	 	
              (5)

            	
              Employee
                Contribution
                shall mean any contribution made to the plan by or on behalf of a
                Participant that is included in the Participant’s gross income in the year
                in which made and that is maintained under a separate account to
                which
                earnings and losses are allocated. 

            

    

     

    
      	 	
              (6)

            	
              Matching
                Contribution
                shall mean an Employer contribution made to this or any other defined
                contribution plan on behalf of a Participant on account of a Participant’s
                Employee Contribution or Elective
                Deferral.

            

    

     

    
      	 	
              (d)

            	
              Special
                Rules.
                The following special rules shall apply for purposes of this Section
                3.8:
                

            

    

     

    
      	 	
              (1)

            	
              For
                purposes of this Section, the Contribution Percentage for any eligible
                Highly Compensated Employee for the Plan Year and who is eligible
                to have
                Contribution Percentage Amounts allocated to his or her account under
                two
                or more plans described in Section 401(a) of the Code or arrangements
                described in Section 401(k) of the Code that are maintained by the
                Employer or an Affiliated Employer shall be determined as if the
                total of
                such Contribution Percentage Amounts was made under each plan. If
                a Highly
                Compensated Employee participates in two or more cash or deferred
                arrangements that have different Plan Years, all cash or deferred
                arrangements ending with or within the same calendar year shall be
                treated
                as a single arrangement. Notwithstanding the foregoing, certain plans
                shall be treated as separate if mandatorily disaggregated under
                regulations under Section 401(m) of the Code.

            

    

     

    
      	 	
              (2)

            	
              In
                the event that this Plan satisfies the requirements of Section 401(m),
                401(a)(4) or 410(b) of the Code only if aggregated with one or more
                other
                plans, or if one or more other plans satisfy the requirements of
                Sections
                401(a)(4) and 410(b) of the Code only if aggregated with this Plan,
                then
                this Section 3.8 of the Plan shall be applied by determining the
                contribution percentages of Participants as if all such plans were
                a
                single plan. Plans may be aggregated in order to satisfy Section
                401(m) of
                the Code only if they have the same Plan Year and use the same ACP
                testing
                method. 

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	 	
              (3)

            	
              For
                purposes of determining the Contribution Percentage test, Employee
                Contributions are considered to have been made in the Plan Year in
                which
                contributed to the Trust. Matching Contributions and Qualified
                Non-Elective Contributions will be considered made before the last
                day of
                the 12-month period immediately following the Plan Year to which
                contributions relate. 

            

    

     

    
      	 	
              (4)

            	
              The
                Employer shall maintain records sufficient to demonstrate satisfaction
                of
                the ACP test and the amount of Qualified Non-Elective Contributions
                or
                Qualified Matching Contributions, or both, used in such
                test.

            

    

     

    
      	 	
              (5)

            	
              Targeted
                Matching Contribution Limit.
                An Employer Match Contribution for a Plan Year is not taken into
                account
                under the test for a Non-Highly Compensated Employee (NHCE) to the
                extent
                it exceeds the greatest of: (a) five percent (5%) of the NHCE’s Total
                Compensation for the Plan Year; (b) the NHCE’s Elective Deferrals for the
                Plan Year; and (c) the product of two (2) times the Plan’s “representative
                matching rate” and the NHCE’s Elective Deferrals for the Plan Year. The
                Plan’s “representative matching rate” is the lowest “matching rate” for
                any eligible NHCE among a group of NHCEs that consists of half of
                all
                eligible NHCEs in the Plan for the Plan Year who make Elective
                Contributions for the Plan Year (or, if greater, the lowest “matching
                rate” for all eligible NHCEs in the Plan who are employed by the Employer
                on the last day of the Plan Year and who make Elective Contributions
                for
                the Plan Year). The “matching rate” for an Employee generally is the
                Employer Match Contributions made for such Employee divided by the
                Employee’s Elective Deferrals for the Plan Year. If the matching rate is
                not the same for all levels of Elective Deferrals for an Employee,
                then
                the Employee’s “matching rate” is determined assuming that an Employee’s
                Elective Deferrals are equal to six percent (6%) of Total
                Compensation.

            

    

     

    
      	 	
              (6)

            	
              Treasury
                Regulations Sections 1.401(m)-1 and 1.40(m)-2 are incorporated herein
                for
                determining Employer Match Contribution, Qualified Matching Contribution
                and Actual Contribution Percentage of any
                Participant.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              Distribution
                of Excess Aggregate Contributions.
                Notwithstanding any other provision of this Plan, Excess Aggregate
                Contributions, plus any income and minus any loss allocable thereto,
                shall
                be forfeited, if forfeitable, or if not forfeitable, shall be distributed
                no later than the last day of each Plan Year to Participants to whose
                accounts such Excess Aggregate Contributions were allocated for the
                preceding Plan Year. If such Excess Aggregate Contributions are
                distributed more than 2 1⁄2 months after the last day of the Plan Year in
                which such excess amounts arose, a ten percent (10%) excise tax will
                be
                imposed on the Employer maintaining the Plan with respect to those
                amounts. Excess Aggregate Contributions are allocated to the Highly
                Compensated Employees with the largest Contribution Percentage Amounts
                taken into account in calculating the ACP test for the year in which
                the
                excess arose, beginning with the Highly Compensated Employee with
                the
                largest amount of such Contribution Percentage Amounts and continuing
                in
                descending order until all the Excess Aggregate Contributions have
                been
                allocated. For purposes of the preceding sentence, the “largest amount” is
                determined after distribution of any Excess Aggregate Contributions.
                Excess Aggregate Contributions shall be treated as Annual Additions
                under
                the Plan. 

            

    

     

    
      	 	
              (f)

            	
              Determination
                of Income or Loss:
                Excess Aggregate Contributions shall be adjusted for any income (gain
                or
                loss) up to the date of distribution. The income or loss allocable
                to
                Excess Aggregate Contributions allocated to each Participant is the
                sum of
                (1) income or loss allocable to the Participant’s Employee Contributions
                and Matching Contributions and other amounts taken into account under
                this
                Section 3.8 (including the contributions for the year), by a fraction,
                the
                numerator of which is such Participant’s Excess Aggregate Contributions
                for the year and the denominator of which is the Participant’s account
                balance attributable to Elective Employee Contributions and Matching
                Contributions and other amounts taken into account under this Section
                38
                as of the beginning of the Plan Year and any additional such contributions
                for the year and (2) 10 percent of the amount determined under (1)
                multiplied by the number of whole calendar months between the end
                of the
                Plan Year and the date of distribution, counting the month of distribution
                if distribution occurs after the 15th
                day of such month. Notwithstanding, the Committee may use any reasonable
                method for computing the income allocable to Excess Aggregate
                Contributions, provided the method is used consistently for all
                Participants and for all corrective distributions under the Plan
                for the
                Plan Year, and is used by the Plan for allocating income to Participants’
                accounts. The Plan will not fail to use a reasonable method merely
                because
                the income allocable to Excess Aggregate Contributions is determined
                on a
                date that is no more than seven days before the
                distribution.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	 	
              (g)

            	
              Accounting
                for Excess Aggregate Contributions:
                Excess Aggregate Contributions allocated to a Participant shall be
                forfeited, if forfeitable, or distributed on a pro rata basis from
                the
                Matching Contribution Account and Qualified Matching Contribution
                Account
                (and, if applicable, the Participant’s Qualified Non-Elective Contribution
                Account or Elective Deferral Account, or both).

            

    

     

    For
      purposes of this Section, “Excess Aggregate Contributions” shall mean, with
      respect to any Plan Year, the excess of: 

     

    
      	 	
              (1)

            	
              The
                aggregate Contribution Percentage Amounts taken into account in computing
                the numerator of the Contribution Percentage actually made on behalf
                of
                Highly Compensated Employees for such Plan Year, over
                

            

    

     

    
      	 	
              (2)

            	
              The
                maximum Contribution Percentage Amounts permitted by the ACP test
                (determined by hypothetically reducing contributions made on behalf
                of
                Highly Compensated Employees in order of their Contribution Percentages
                beginning with the highest of such
                percentages).

            

    

     

    Such
      determination shall be made after first determining Excess Deferrals pursuant
      to
      Section 3.1 and then determining Excess Contributions pursuant to Section
      3.7.

     

    3.9    Corrective
      Contributions.
      In lieu
      of distributing Excess Contributions as provided in Section 3.7(e) above, the
      Employer may make contributions on behalf of Non-Highly Compensated Employees
      that are sufficient to satisfy the ADP test, provided such amount does not
      exceed the Target Contribution Limit. In addition, in lieu of distributing
      Excess Aggregate Contributions as provided in Section 3.8(e) of the Plan, the
      Employer may make contributions on behalf of Non-Highly Compensated Employees
      that are sufficient to satisfy the ACP test, provided such amount does not
      exceed the Targets Contribution Limit.

     

    Targeted
      Contribution Limit.
      For
      purposes of either the ADP or ACP test, a Qualified Non-Elective Contributions
      cannot be taken into account for a Non-Highly Compensated Employee (“NHCE”) to
      the extent such contributions exceed the product of that Non-Highly Compensated
      Employee’s Total Compensation and the greater of five percent (5%) or two (2)
      times the Plan’s “representative contribution rate.” The Plan’s “representative
      contribution rate” is the lowest “applicable contribution rate” (i.e., the sum
      of the Qualified Non-Elective Contributions made and Qualified Matching
      Contributions taken into account for an eligible NHCE employee divided by the
      eligible NHCE’s Total Compensation) among a group of eligible NHCEs that
      consists of half of all the eligible NHCEs for the Plan Year (or, if greater,
      the lowest contribution rate among any eligible NHCE in the group of all
      eligible NHCEs for the Plan Year who is employed by the Employer on the last
      day
      of the Plan Year).

     

    Contribution
      only used once.
      Any
      Qualified Non-Elective Contribution or Qualified Matching Contribution taken
      into account under an ACP test, is not permitted to be taken into account for
      purposes of satisfying the ADP test. Qualified Matching Contributions which
      are
      taken into account for the ADP test are not taken into account for the purpose
      of satisfying the ACP test. Further, Qualified Non-Elective Contributions that
      are taken into account under a current year testing method may not be taken
      into
      account under the prior year testing method in the next year.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV

    ALLOCATION
      OF FUNDS 

     

    4.1    Allocation
      of Employer Contributions.
      Employer Match Contributions made pursuant to Section 3.2 of the Plan shall
      be
      allocated to the Employer Match Accounts of the Participants for whom such
      contributions are made. Additional Match Contributions made pursuant to Section
      3.3 of the Plan shall be allocated to the Additional Match Accounts of the
      Participants for whom such contributions are made. 

     

    4.2    Allocation
      of Net Earnings or Losses of the Trust.
      As of
      each Valuation Date, the net earnings or losses of the Trust, including capital
      gains and losses whether or not realized, since the preceding Valuation Date
      shall be allocated to the Accrued Benefit of all Participants (or Beneficiaries)
      in accordance with the ratio which the Accrued Benefit of each Participant
      bears
      to the aggregate of all such Accrued Benefits; provided, however, that earnings
      or losses of accounts for which Participants direct investment shall be
      specifically allocated to such accounts. 

     

    4.3    Valuations.
      In
      determining the earnings or losses of the Trust as of each Valuation Date,
      the
      Trust shall be valued at fair market value. 

     

    4.4    Accounting
      for Distributions.
      All
      withdrawals of Participant contributions, all distributions made to a
      Participant or his Beneficiary, and any transfers to another qualified plan
      shall be charged to the appropriate subaccount of the Participant’s Accrued
      Benefit. 

     

    4.5    Separate
      Accounts.
      A
      separate account shall be established and maintained to reflect the Accrued
      Benefit for each Participant, with subaccounts to separately show the divisions
      described in Section 1.1 of the Plan. 

     

    4.6    Investment
      of Funds. 

     

    
      	 	
              (a)

            	
              Investment
                Control.
                Subject to the provisions of paragraphs (b), (c), (d) and (e) below,
                and
                only to the extent accepted by the Trustee, the management and control
                of
                the Trust shall be vested in the Trustee.

            

    

     

    
      	 	
              (b)

            	
              Investment
                Limitations.
                The Trustee shall invest all funds received from the Employer and
                all Fund
                earnings in the Investment Options in the manner from time to time
                  directed in writing by the Committee.

            

    

     

    
      	 	
              (c)

            	
              Participant
                Directed Investments.
                Participants, subject to such reasonable restrictions as the Committee
                may
                impose for administrative convenience, may designate what percentage
                of
                all contributions and all accounts will be invested in the Investment
                Options.

            

    

     

    
      	 	
              (d)

            	
              Participant
                Election.
                If a Participant does not make a written designation of an Investment
                Option, the Committee shall direct the Trustee to invest all amounts
                held
                or received on account of such Participant in the Investment Option
                designated by the Committee to hold such amounts.
                

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              Employer
                Securities.
                The Participants shall have the right to direct that any assets in
                any of
                their accounts that are invested in Company Stock be transferred
                to
                another Investment Option, in a manner satisfactory to the Committee.
                The
                Plan shall include Company Stock as an Investment Option for assets
                that
                are invested in Company Stock as of December 31, 2006, however, once
                Company Stock in the Plan is transferred to another Investment Option,
                it
                cannot be reinvested in Company Stock.

            

    

     

    
      	 	
              (f)

            	
              Facilitation.
                Notwithstanding any instruction from any Participant for investment
                of
                funds in an Investment Option as provided for herein, the Trustee
                shall
                have the right to hold uninvested any amounts intended for investment
                until such time as investment may be made in accordance with this
                Section
                4.6 and the Trust Agreement.

            

    

     

    
      	 	
              (g)

            	
              Liability
                for Investment Directions.
                This Plan is intended to constitute a plan described in Section 404(c)
                of
                ERISA, and Title 29 of the Code of Federal Regulations Section
                2550.404c-1. Fiduciaries of the Plan may be relieved of liability
                for any
                losses which are the direct and necessary result of investment
                instructions given by each Participant or Beneficiary. Neither the
                Employer, the Trustee nor the Committee shall be responsible for
                any loss
                which may result from a Participant’s exercise of control over the
                investment of his Accrued Benefit. 

            

    

     

    
      	 	
              (h)

            	
              Each
                Participant shall have exclusive responsibility for and control over
                the
                investment of amounts allocated to his Accrued Benefit. Neither the
                Employers, the Trustee nor the Committee shall have any duty,
                responsibility or right to question a Participant’s investment directions
                or to advise a Participant with respect to the investment of his
                Individual Accounts. The Committee will be obligated to follow the
                Participant’s investment directions except when the
                instructions:

            

    

     

    
      	 	
              (1)

            	
              are
                not in accordance with this Plan document and instruments governing
                this
                Plan insofar as such documents and instruments are consistent with
                the
                provisions of Title I of ERISA;

            

    

     

    
      	 	
              (2)

            	
              would
                result in a prohibited transaction described in ERISA Section 406
                or Code
                Section 4975 that is not otherwise exempted by statute or
                regulation;

            

    

     

    
      	 	
              (3)

            	
              would
                generate income that would be taxable to this
                Plan;

            

    

     

    
      	 	
              (4)

            	
              would
                cause a fiduciary to maintain the indicia of ownership of any assets
                of
                the Plan outside the jurisdiction of the district courts of the United
                States other than as permitted by Section 404(b) of ERISA and related
                regulations;

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	 	
              (5)

            	
              would
                jeopardize the Plan’s tax qualified status under the Code;
                or

            

    

     

    
      	 	
              (6)

            	
              could
                result in a loss in excess of the individual account
                balances.

            

    

     

    ARTICLE
      V

    MAXIMUM
      CONTRIBUTIONS AND BENEFITS

     

    5.1    Defined
      Contribution Limitation.
      Contributions made on behalf of any Participant during any Plan Year to all
      defined contribution plans of the Employer or any Affiliated Employer shall
      be
      subject to the limits of Code Section 415(c)(1) as set forth in paragraph (a)
      below:

     

    
      	 	
              (a)

            	
              Annual
                Addition Limit.
                The Annual Addition (as defined below in paragraph (c)) that may
                be
                contributed or allocated to a Participant’s account under the Plan for any
                limitation year shall not exceed the lesser
                of:

            

    

     

    
      	 	
              (1)

            	
              $40,000,
                as adjusted for increases in the cost-of-living under Section 415(d)
                of
                the Code, or

            

    

     

    
      	 	
              (2)

            	
              100
                percent of the Participant’s Section 415 Compensation, for the limitation
                year.

            

    

     

    The
      Compensation limit referred to in (2) shall not apply to any contribution for
      medical benefits after separation from service (within the meaning of Section
      401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an
      Annual Addition.

     

    
      	 	
              (b)

            	
              Correction
                of Excess Annual Additions.
                If, as a result of the allocation of forfeitures, a reasonable error
                in
                estimating the Participant’s Section 415 Compensation, or a reasonable
                error in estimating the amount of Elective Deferrals that may be
                made with
                respect to any Participant under the limits of Section 415 of the
                Code or
                under other facts and circumstances permitted by the Commissioner
                of the
                Internal Revenue Service, Annual Additions exceed the limitation
                set forth
                in Section 5.1(a), the excess will be disposed of as
                follows:

            

    

     

    
      	 	
              (1)

            	
              If
                the Participant is covered by the Plan as of the end of the Plan
                Year in
                which the excess occurs, the Excess Deferrals shall be used to reduce
                Employer contributions (including any allocation of forfeitures)
                for such
                Member in the next Plan Year, and each succeeding Plan Year, if
                necessary.

            

    

     

    
      	 	
              (2)

            	
              If,
                after the application of Section 5.1(b)(1) an Excess Deferrals still
                exists, 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 Plan year,
                and
                the next succeeding Plan Year.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      	 	
              (3)

            	
              If
                a suspense account is in existence at any time during a Plan Year
                pursuant
                to this Section, it will not participate in the allocation of the
                gains
                and losses of the Trust. If a suspense account is in existence at
                any time
                during a particular Plan Year, all amounts in the suspense account
                must be
                allocated and reallocated to Participants’ accounts before any Employer or
                Elective Deferrals may be made to the Plan for that Plan Year. Excess
                amounts may not be distributed to
                Participants.

            

    

     

    
      	 	
              (4)

            	
              This
                Section 5.1 shall be satisfied prior to satisfying the Actual Deferral
                Percentage test in Section 3.7 of the
                Plan.

            

    

     

    
      	 	
              (c)

            	
              Annual
                Addition.
                Annual Addition means the sum credited to Participant’s Accounts for any
                Limitation Year of: (i) Employer Contributions, Elective Deferrals,
                except
                for Catch-Up Contributions, and forfeitures; (ii) Amounts allocated
                to an
                individual medical account described in Section 415(l)(1) of the
                Code that
                is part of a pension or annuity plan maintained by the Employer;
                (iii)
                Amounts attributable to post-retirement medical benefits allocated
                to the
                separate account of a key employee (as described in Section 419A(d)(3)
                of
                the Code); and (iv) Excess Contributions and Excess Aggregate
                Contributions returned to a Participant in accordance with Sections
                3.7
                and 3.8. Limitation Year means calendar year, unless the Company
                elects a
                different twelve (12) consecutive month period as provided by Treasury
                Regulation Section 1.415-2(b).

            

    

     

    ARTICLE
      VI

    ENTITLEMENT
      TO BENEFITS 

     

    6.1    Distribution
      Events.
      Upon a
      Participant’s termination of employment by reason of retirement, Disability, or
      for any other reason (other than death), the Participant is entitled to receive
      a benefit funded by the accounts. A Participant is deemed to have retired if
      he
      terminates employment on or after reaching age 55 with 5 Years of Service or
      on
      or after the Normal Retirement Age under the Plan (age 65). A Participant is
      entitled to receive a benefit during employment for Disability, Hardship or
      the
      attainment of age 591⁄2. 

     

    6.2    Disability. In
      the
      event that a Participant, at any time prior to his retirement or other
      termination of employment with the Employer, shall become totally and
      permanently disabled, and if proof of such disability satisfactory to the
      Employer is furnished (which proof shall include a determination of approval
      for
      Social Security benefits or, if such is not available, a written statement
      of a
      licensed physician appointed or approved by the Employer), then such Participant
      shall be entitled to the full value of his Accrued Benefit, which shall be
      one
      hundred percent (100%) vested and nonforfeitable. For purposes of this Section
      6.2, total and permanent disability shall mean the inability to engage in any
      substantial gainful activity by reason of any medically determinable physical
      or
      mental impairment that can be expected to result in death or to last for a
      continuous period of at least twelve (12) months.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    6.3    Death
      Benefits.
      In the
      event of the death of a Participant prior to his retirement, disability, or
      termination of employment with the Employer, the full value of his Accrued
      Benefit, which shall be one hundred percent (100%) vested and nonforfeitable
      shall become payable (according to the provisions of Article VII of the Plan),
      to his designated Beneficiary, upon submission of proof of death satisfactory
      to
      the Employer.

     

    6.4    Retirement.
      A
      Participant shall be deemed to have reached retirement upon his termination
      of
      employment on or after reaching his Early or Normal Retirement Date. As of
      his
      termination date, a retired Participant shall be entitled to the full value
      of
      his Accrued Benefit, which shall be deemed to be one hundred percent (100%)
      vested and nonforfeitable upon reaching his Early or Normal Retirement Date
      whether or not the Participant continues his employment with the Employer beyond
      such date. 

     

    6.5    Termination
      of Employment.
      In
      the
      event a Participant terminates employment with the Employer for any reason
      other
      than retirement, disability or death, such Participant shall become entitled
      to
      the vested portion of his Accrued Benefit, payable according to the provisions
      of Article VII of
      the
      Plan, which shall be determined as follows: 

     

    
      	 	
              (a)

            	
              A
                Participant shall at all times be one hundred percent (100%) vested
                in the
                portion of his Accrued Benefit derived from his Elective Deferral
                Account,
                Qualified Non-Elective Contribution Account, Qualified Matching
                Contribution Account and Rollover or Transfer Account, and Voluntary
                After-Tax Account.

            

    

     

    
      	 	
              (b)

            	
              A
                Participant’s vested and nonforfeitable interest in the portion of his
                Accrued Benefit derived from his Employer Contribution Accounts shall
                be
                determined in accordance with the vesting schedules set forth in
                Section
                3.2. 

            

    

     

    
      	 	
              (c)

            	
              In
                the event of a termination of employment as described in this Section
                6.5
                at a time when a Participant’s vested interest in his Employer
                Contribution Accounts is less than 100%, then, as of the forfeiture
                date
                set forth in Section 7.8 of the Plan, the non-vested portion shall
                be
                forfeited and used to reduce Employer Contributions to the Plan.
                

            

    

     

    
      	 	
              (d)

            	
              The
                Hours of Service method
                of crediting service shall be utilized (for Group B Participants,
                the
                elapsed time method (as defined in the Retirement Savings Plan as
                of
                December 31, 2006) was used to credit service prior to January 1,
                2001).
                In
                order to determine the vested interest of a Participant after a Break
                in
                Service for purposes of the vesting schedules set forth in Section
                3.2,
                the crediting of Service shall be determined as follows:
                

            

    

     

    
      	 	
              (1)

            	
              In
                the case of a Participant who has five (5) consecutive l-year Breaks
                in
                Service, all Years of Service after such Breaks in Service shall
                be
                disregarded for purposes of determining the Participant’s vested Accrued
                Benefit derived from Employer contributions which accrued before
                such
                breaks, but both pre-break and post-break Service shall count for
                purposes
                of determining the Participant’s vested Accrued Benefit derived from
                Employer contributions accruing after such breaks. Both accounts
                shall
                share in the earnings and losses of the Trust;

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              In
                the case of a Participant who does not have five (5) consecutive
                1-year
                Breaks in Service, both the pre-break and post-break Service shall
                count
                in determining both the Participant’s pre-break and post-break vested
                Accrued Benefit derived from Employer contributions.
                

            

    

     

    
      	 	
              (e)

            	
              If
                a Participant’s vesting schedule is amended, or the Plan is amended in any
                way that directly or indirectly affects the computation of the
                Participant’s nonforfeitable percentage or if the Plan is deemed amended
                by an automatic change to or from a Top Heavy vesting schedule, each
                Participant affected by the amendment with at least three (3) Years
                of
                Service with the Employer may elect to have the nonforfeitable percentage
                computed under the Plan without regard to such amendment or change.
                

            

    

     

    The
      period during which the election may be made shall commence with the date the
      amendment is adopted or deemed to be made and shall end on the latest of:

     

    
      	 	
              (1)

            	
              60
                days after the amendment is adopted;

            

    

     

    
      	 	
              (2)

            	
              60
                days after the amendment becomes effective; or

            

    

     

    
      	 	
              (3)

            	
              60
                days after the Participant is issued written notice of the amendment
                by
                the Employer or Plan Administrator

            

    

     

    6.6    Other
      Permitted Distributions. 

     

    
      	 	
              (a)

            	
              Hardship.
                By filing the required form, a Participant may withdraw on account
                of
                hardship all or a portion of his vested Accrued Benefit. Notwithstanding
                the preceding, earnings allocated after December 31, 1988 on Elective
                Deferrals are excluded. Further, amounts attributable to Qualified
                Non-Elective Contributions and Qualified Matching Contributions may
                not be
                distributed merely on account of hardship. The amount distributed
                will be
                withdrawn pro rata across money
                types.

            

    

     

    
      	 	
              (1)

            	
              Hardship
                withdrawals are permitted only for one of the following immediate
                and
                heavy financial needs:

            

    

     

    
      	 	
              (i)

            	
              medical
                expenses described in Section 213(d) of the Code incurred by the
                Employee,
                the Employee’s spouse, or any dependent of the Employee;
                or

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              purchase
                (excluding mortgage payments) of a principal place of residence of
                the
                Employee; or

            

    

     

    
      	 	
              (iii)

            	
              payment
                of tuition, related educational fees, and room and board expenses,
                for the
                next twelve months of post secondary education for the Employee,
                his or
                her spouse, children, or dependents (as defined in Code Section 152
                without regard to Section 152(b)(1), (b)(2) and (d)(1)(B));
                or

            

    

     

    
      	 	
              (iv)

            	
              the
                need to prevent the eviction of the Employee from his or her principal
                residence or foreclosure on the mortgage of the Employee’s principal
                residence;
                or

            

    

     

    
      	 	
              (v)

            	
              payments
                for burial or funeral expenses for the employee’s deceased parent, spouse,
                children or dependents (as defined in Code Section 152(b) without
                regard
                to Section 152(d)(1)(B)); or

            

    

     

    
      	 	
              (vi)

            	
              expense
                for repair of damage to the employee’s principal residence that would
                qualify for a casualty deduction on the employee’s tax return (without
                regard to whether the loan exceeds 10% of adjusted gross
                income).

            

    

     

    Provided
      however, if the Commissioner of Internal Revenue expands the list of deemed,
      immediate and heavy financial needs as provided above through publication of
      revenue rulings, notices or other documents of general applicability, then
      such
      deemed immediate and heavy financial needs may be included at the direction
      of
      the Committee in the list of needs for which hardship withdrawals may be
      made.

     

    
      	 	
              (2)

            	
              In
                order to obtain a hardship withdrawal, a Participant must satisfy
                the
                following requirements which are deemed to be necessary to satisfy
                an
                immediate and heavy financial need:

            

    

     

    
      	 	
              (i)

            	
              The
                distribution must not be in excess of the amount of the immediate
                and
                heavy financial need of the
                Participant;

            

    

     

    
      	 	
              (ii)

            	
              The
                Participant must have obtained all currently available distributions,
                all
                nontaxable loans currently available under all Plans maintained by
                the
                Employer (unless such loan would disqualify the Participant from
                obtaining
                other necessary financing); and

            

    

     

    
      	 	
              (iii)

            	
              The
                financial need can not be relieved from other resources; the Participant’s
                resources are deemed to include those assets of the Participant’s spouse
                and minor children that are reasonably available to the Participant,
                such
                as a vacation home.

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	 	
              (3)

            	
              The
                Committee may rely upon the Participant’s representation (made in writing
                or such other form as may be prescribed by the Commissioner of the
                Internal Revenue Service) that the Participant can not relieve the
                immediate and heavy financial need from other resources that are
                available
                to the Participant, unless the Committee has actual knowledge to
                the
                contrary, that the need cannot reasonably be
                relieved—

            

    

     

    
      	 	
              (i)

            	
              Through
                reimbursement or compensation by insurance or
                otherwise;

            

    

     

    
      	 	
              (ii)

            	
              By
                liquidation of the Participant’s
                assets;

            

    

     

    
      	 	
              (iii)

            	
              By
                cessation of elective contributions or employee contributions under
                the
                Plan;

            

    

     

    
      	 	
              (iv)

            	
              By
                other currently available distributions and nontaxable loans, under
                plans
                maintained by the Employer or by any other employer;
                or

            

    

     

    
      	 	
              (v)

            	
              By
                borrowing from commercial sources on reasonable commercial terms
                in an
                amount sufficient to satisfy the
                need.

            

    

     

    A
      Participant who receives a distribution on account of hardship shall be
      prohibited from making Elective Deferrals and employee contributions under
      this
      and all other plans of the Employer for six (6) months after receipt of the
      distribution.

     

    
      	 	
              (4)

            	
              There
                is no minimum amount for a hardship withdrawal, and there is no
                restriction on the number of hardship withdrawals permitted to a
                Participant.

            

    

     

    
      	 	
              (b)

            	
              Attainment
                of Age 591⁄2.
                On
                or after the attainment of age 591⁄2 a Participant shall be permitted to
                withdraw all or a portion of his vested Accrued Benefit under the
                Plan at
                any time.

            

    

     

    
      	 	
              (c)

            	
              Rollover
                Account.
                A
                Group B Participant may withdraw any amount from his Rollover Account
                at
                such times as permitted by the Committee by submitting a written
                request
                to the Committee specifying the amount to be
                withdrawn.

            

    

     

    
      	 	
              (d)

            	
              Voluntary
                After-Tax Account.
                A
                Group B Participant may withdraw any amount from his Voluntary After-Tax
                Account at such times as permitted by the Committee by submitting
                a
                written request to the Committee specifying the amount to be withdrawn.
                A
                distribution from such account shall be calculated on a pro-rata
                basis;
                thus, such distribution shall be considered in part a return of
                contributions and in part earnings on such contributions.
                

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

    DISTRIBUTION
      OF BENEFITS 

     

    7.1    General.
      The
      requirements of this Article shall apply to any distribution of a Participant’s
      interest and will take precedence over any inconsistent provisions of this
      Plan.
      All distributions required under this Article shall be determined and made
      in
      accordance with the Treasury Regulations under Code Section
      401(a)(9).

     

    7.2    Method
      of Distribution.
      A
      Participant may elect to have his Accrued Benefit distributed in the following
      manner: 

     

    
      	 	
              (a)

            	
              a
                single lump sum;

            

    

     

    
      	 	
              (b)

            	
              a
                portion paid in a lump sum, and the remainder paid later (partial
                payment); or 

            

    

     

    
      	 	
              (c)

            	
              periodic
                installments over a period not to exceed fifteen (15)
                years.

            

    

     

    In
      the
      absence of an election by the Participant, distribution will be made in a lump
      sum payment in cash. 

     

    7.3    Installment
      Payments.
      If all
      or any portion of a Participant’s Accrued Benefit is to be paid in installments,
      the Participant shall determine the period over which such installments shall
      be
      paid. The total amount to be so distributed shall continue to be invested in
      those assets currently retained in the Trust and any income, gain or loss
      attributable thereto (but not Employer contributions or forfeitures) shall
      be
      reflected in the installment distributions. 

     

    7.4    Commencement
      of Benefits. 

     

    
      	 	
              (a)

            	
              Unless
                the Participant elects otherwise, distribution of benefits will begin
                no
                later than the 60th day after the latest of the close of the Plan
                Year in
                which: 

            

    

     

    
      	 	
              (1)

            	
              the
                Participant attains age 65 (or the Normal Retirement Age specified
                in the
                Plan, if earlier); 

            

    

     

    
      	 	
              (2)

            	
              occurs
                the 10th anniversary of the year in which the Participant commenced
                participation in the Plan; or

            

    

     

    
      	 	
              (3)

            	
              the
                Participant terminates Service with the Employer.
                

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                the foregoing, the failure of a Participant to consent to a distribution
                while a benefit is immediately distributable shall be deemed to be
                an
                election to defer commencement of payment of any benefit sufficient
                to
                satisfy this Section. 

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    7.5    Minimum
      Required Distributions. 

     

    
      	 	
              (a)

            	
              Required
                Beginning Date.
                The entire interest of a Participant must be distributed or begin
                to be
                distributed no later than the Participant’s Required Beginning
                Date.

            

    

     

    
      	 	
              (b)

            	
              Limits
                on Distribution Periods.
                As of the first distribution calendar year, distributions, if not
                made in
                a single sum, may only be made over one of the following periods
                (or a
                combination thereof): 

            

    

     

    
      	 	
              (1)

            	
              a
                period certain not extending beyond the life expectancy of the
                Participant, or 

            

    

     

    
      	 	
              (2)

            	
              a
                period certain not extending beyond the joint life and last survivor
                expectancy of the Participant and a designated Beneficiary.
                

            

    

     

    
      	 	
              (c)

            	
              Minimum
                Amounts to be Distributed.

            

    

     

    
      	 	
              (1)

            	
              If
                a Participant’s interest is to be distributed in other than a single sum,
                the minimum amount that will be distributed for each distribution
                calendar
                year is the lesser of:

            

    

     

    
      	 	
              (i)

            	
              the
                quotient obtained by dividing the Participant’s account balance by the
                distribution period in the Uniform Lifetime Table set forth in Section
                1.401(a)(9)-9 of the Treasury regulations, using the Participant’s age as
                of the Participant’s birthday in the distribution calendar year; or
                

            

    

     

    
      	 	
              (ii)

            	
              if
                the Participant’s sole designated beneficiary for the distribution
                calendar year is the Participant’s spouse, the quotient obtained by
                dividing the Participant’s account balance by the number in the Joint and
                Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury
                regulations, using the Participant’s and spouse’s attained ages as of the
                Participant’s and spouse’s birthdays in
                the
                distribution calendar year.

            

    

     

    
      	 	
              (2)

            	
              Required
                minimum distributions will be determined under this Section 7.5 beginning
                with the first distribution calendar year and up to and including
                the
                distribution calendar year that includes the Participant’s date of
                death.

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    
      	 	
              (3)

            	
              The
                minimum distribution required for the Participant’s first distribution
                calendar year must be made on or before the Participant’s Required
                Beginning Date. The minimum distribution for other calendar years,
                including the minimum distribution for the distribution calendar
                year in
                which the Participant’s Required Beginning Date occurs, must be made on or
                before December 31 of that distribution calendar
                year.

            

    

     

    
      	 	
              7.6

            	
              Distribution
                of Death Benefits. 

            

    

     

    
      	 	
              (a)

            	
              Method
                of Distribution.
                Upon the death of a Participant, the following distribution provisions
                shall take effect:

            

    

     

    
      	 	
              (1)

            	
              If
                the Participant dies after the date distribution begins, the remaining
                portion of the Participant’s interest will continue to be distributed at
                least as rapidly as under the method of distribution being used prior
                to
                the Participant’s death. Notwithstanding the preceding sentence, the
                following shall apply: 

            

    

     

    
      	 	
              (i)

            	
              If
                there is a designated beneficiary, the minimum amount that will be
                distributed for each distribution calendar year after the year of
                the
                Participant’s death is the quotient obtained by dividing the Participant’s
                account balance by the longer of the remaining life expectancy of
                the
                Participant or the remaining life expectancy of the Participant’s
                designated beneficiary, determined as
                follows:

            

    

     

    
      	 	
              (A)

            	
              the
                Participant’s remaining life expectancy is calculated using the age of the
                Participant in the year of death, reduced by one for each subsequent
                year.
                

            

    

     

    
      	 	
              (B)

            	
              if
                the Participant’s surviving spouse is the Participant’s sole designated
                beneficiary, the remaining life expectancy of the surviving spouse
                is
                calculated for each distribution calendar year after the year of
                the
                Participant’s death using the surviving spouse’s age as of the spouse’s
                birthday in that year. For distribution calendar years after the
                year of
                the surviving spouse’s death, the remaining life expectancy of the
                surviving spouse is calculated using the age of the surviving spouse
                as of
                the spouse’s birthday in the calendar year of the spouse’s death, reduced
                by one for each subsequent calendar
                year.

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    
      	 	
              (C)

            	
              if
                the Participant’s surviving spouse is not the Participant’s sole
                designated beneficiary, the designated beneficiary’s remaining life
                expectancy is calculated using the age of the beneficiary in the
                year
                following the year of the Participant’s death, reduced by one for each
                subsequent year. 

            

    

     

    
      	 	
              (ii)

            	
              If
                there is no designated beneficiary as of September 30 of the year
                after
                the year of the Participant’s death, the minimum amount that will be
                distributed for each distribution calendar year after the year of
                the
                Participant’s death is the quotient obtained by dividing the Participant’s
                account balance by the Participant’s remaining life expectancy calculated
                using the age of the Participant in the year of death, reduced by
                one for
                each subsequent year.

            

    

     

    
      	 	
              (2)

            	
              If
                the Participant dies before the date distributions begin, the following
                provisions shall apply:

            

    

     

    
      	 	
              (i)

            	
              If
                the Participant’s surviving spouse is the Participant’s sole designated
                beneficiary, distributions to the surviving spouse will begin by
                December
                31 of the calendar year immediately following the calendar year in
                which
                the Participant died, or by December 31 of the calendar year in which
                the
                Participant would have attained age 701⁄2, if
                later. If the Participant’s surviving spouse is the Participant’s sole
                designated beneficiary and the surviving spouse dies after the Participant
                but before distributions to the surviving spouse begin, the provisions
                of
                this Section 7.6(a)(2), other than the preceding sentence, will apply
                as
                if the surviving spouse were the
                Participant.

            

    

     

    
      	 	
              (ii)

            	
              If
                the Participant’s surviving spouse is not the Participant’s sole
                designated beneficiary, distributions to the designated beneficiary
                will
                begin by December 31 of the calendar year immediately following the
                calendar year in which the Participant died.

            

    

     

    
      	 	
              (iii)

            	
              If
                there is a designated beneficiary (spouse or other), the minimum
                amount
                that will be distributed for each distribution calendar year after
                the
                year of the Participant’s death is the quotient obtained by dividing the
                Participant’s account balance by the remaining life expectancy of the
                Participant’s designated beneficiary, determined as provided in Section
                7.6(a)(1)(i). 

            

    

     

    
      	 	
              (iv)

            	
              If
                there is no designated beneficiary as of September 30 of the year
                following the year of the Participant’s death, distribution of the
                Participant’s entire interest will be completed by December 31 of the
                calendar year containing the fifth anniversary of the Participant’s death.
                

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    
      	 	
              (v)

            	
              For
                purposes of this Section 7.6(a)(2), distributions are considered
                to begin
                on the Participant’s Required Beginning Date (or, if the second sentence
                of Section 7.6(a)(2)(i) above applies, distributions are considered
                to
                begin on the date distributions are required to begin to the surviving
                spouse under such provision).

            

    

     

    
      	 	
              (b)

            	
              Definitions.
                For purposes of this Section 7.6, the following definitions shall
                apply:

            

    

     

    
      	 	
              (1)

            	
              Designated
                Beneficiary.
                The individual who is designated as the Beneficiary under Section
                8.1 of
                the Plan and is the designated beneficiary under Code Section 401(a)(9)
                and Treasury Regulation Section 1.401(a)(9)-1,
                Q&A-4.

            

    

     

    
      	 	
              (2)

            	
              Distribution
                Calendar Year.
                A
                calendar year for which a minimum distribution is required. For
                distributions beginning before the Participant’s death, the first
                distribution calendar year is the calendar year immediately preceding
                the
                calendar year which contains the Participant’s Required Beginning Date.
                For distributions beginning after the Participant’s death, the first
                distribution calendar year is the calendar year in which distributions
                are
                required to begin pursuant to this Section 7.6. The required minimum
                distribution for the Participant’s first distribution calendar year will
                be made on or before the Participant’s Required Beginning Date. The
                required minimum distribution for other distribution calendar years,
                including the required minimum distribution for the distribution
                calendar
                year in which the Participant’s Required Beginning Date occurs, will be
                made on or before December 31 of that distribution calendar
                year.

            

    

     

    
      	 	
              (3)

            	
              Life
                Expectancy.
                Life expectancy as computed by use of the Single Life Table in Section
                1.401(a)(9)-9 of the Treasury
                Regulations.

            

    

     

    
      	 	
              (4)

            	
              Participant’s
                Account Balance.
                The account balance as of the last Valuation Date in the calendar
                year
                immediately preceding the distribution calendar year (valuation calendar
                year) increased by the amount of any contributions or forfeitures
                allocated to the account balance as of dates in the valuation calendar
                year after the Valuation Date and decreased by distributions made
                in the
                valuation calendar year after the Valuation Date. The account balance
                for
                the valuation calendar year includes any amounts rolled over or
                transferred to the Plan.

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	 	
              (5)

            	
              Required
                Beginning Date.
                The Required Beginning Date of a Participant other than a 5% owner
                (as
                defined in Code Section 416(i)(1)(B)(1)) is the later of April 1
                of the
                calendar year following the calendar year in which the Participant
                attains
                the age of 701⁄2 or terminates employment with all Affiliated Employers. For
                5% owners, Required Beginning Date means April 1 of the calendar
                year in
                which a Participant attains age
                701⁄2.

            

    

     

    7.7    Distribution
      Upon Termination of Employment and Restrictions on Immediate
      Distribution. If
      the
      value of a Participant’s vested account balance derived from employer and
      employee contributions
      exceeds (or at the time of any prior distribution exceeded) $1,000 (for
      distributions made prior to March 28, 2005, this amount was $5,000), and the
      account balance
      is immediately distributable, the Participant must consent to any distribution
      of such account
      balance. If the value of a Participant’s nonforfeitable account balance as so
      determined is $1,000 or less, the Plan may immediately distribute the
      Participant’s entire nonforfeitable account balance. The consent of the
      Participant shall not be required to the extent that a distribution is required
      to satisfy Section 401(a)(9) or 415 of the Code. 

     

    An
      account balance is immediately distributable if any part of the account balance
      could be distributed to the Participant (or surviving spouse) before the
      Participant attains (or would have attained if not deceased) Normal Retirement
      Age. 

     

    In
      the
      absence of an election to receive an immediate distribution, the Participant’s
      Accrued Benefit shall remain invested in the Trust. The following provisions
      shall apply to termination benefits: 

     

    
      	 	
              (a)

            	
              The
                distribution of benefits to a Participant who has reached his distribution
                date by reason of a termination of employment other than retirement,
                disability or death shall be deferred until the first date the Participant
                would have been eligible for retirement under the Plan unless the
                Participant elects to commence distribution of such benefits at an
                earlier
                date. Prior to the commencement of benefits, the deferred benefits
                shall,
                in the discretion of the Employer, remain invested in the commingled
                Trust
                assets or be transferred to a segregated
                account.

            

    

     

    
      	 	
              (b)

            	
              If
                the vested portion of the Accrued Benefit of a Participant who terminates
                employment for reasons other than retirement, disability or death
                is less
                than 100%, so that his distribution date does not coincide with the
                date
                on which he ceases to be an Employee, such Accrued Benefit shall,
                in the
                discretion of the Employer, remain invested in the commingled Trust
                assets
                or be transferred to a segregated account pending distribution. A
                Participant may elect to receive the vested portion of his Accrued
                Benefit
                at any time after separation from service.

            

    

     

    
      	 	
              (c)

            	
              If
                a Participant separates from service before satisfying his Early
                Retirement Date, but has satisfied the service requirement of the
                Early
                Retirement Date, the Participant will be entitled to elect an early
                retirement benefit upon satisfaction of such age
                requirements.

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    7.8    Forfeiture
      and Special Vesting Formula.
      If the
      vested portion of the Accrued Benefit of a Participant who terminates employment
      for reasons other than retirement, disability or death, as described in Article
      VI of the Plan, is less than 100% and such Participant receives a distribution
      of the vested portion of his Accrued Benefit, forfeiture of the nonvested
      portion of his Accrued Benefit shall occur (subject to restoration pursuant
      to
      Section 7.9 of the Plan) as of the date on which the distribution is made.
      If
      upon termination of employment, a Participant has no vested interest in his
      Accrued Benefit, forfeiture of his entire Accrued Benefit shall occur (subject
      to restoration pursuant to Section 7.9 of the Plan) as of the date of
      termination of employment. In any other case involving a termination described
      in Section 7.7, forfeiture of the nonvested portion of the terminated
      Participant’s Accrued Benefit shall occur as of the earliest of: (a) his date of
      death following termination of employment, or (b) the last day of the Plan
      Year
      in which he incurs five (5) consecutive one (1) year Breaks in
      Service. 

     

    If
      a
      Participant terminates employment, and the value of the Participant’s vested
      account balance derived from Employer and Participant contributions is not
      greater than $1,000, the Participant will receive a distribution of the value
      of
      the entire vested portion of such account balance and the nonvested portion
      will
      be treated as a forfeiture. If an Employee would have received a distribution
      under the preceding sentence but for the fact that the Employee’s vested account
balance exceeded $1,000 when the Employee terminated employment and if at a
      later time such account balance is reduced such that it is not greater than
      $1,000, the Employee will receive a distribution of such account balance and
      the
      nonvested portion will be treated as a forfeiture. 

     

    For
      purposes of Section 6.5, if a distribution is made at a time when a Participant
      has a nonforfeitable right to less than 100% of the account balance derived
      from
      Employer contributions and the Participant may increase the nonforfeitable
      percentage in the account, a separate account shall be established for the
      Participant’s Employer Contributions Accounts as of the time of the
      distribution, and at any relevant time the vested portion of the separate
      account shall be equal to an amount determined by the formula: 

     

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

    

    For
      purposes of applying the formula, P is the vested percentage at the relevant
      time, AB is the separate account balance at the relevant time, D is the amount
      of the distribution, R is the ratio of the separate account balance at the
      relevant time to the separate account balance after distribution, and the
      relevant time is the Participant’s termination date.

     

    7.9    Restoration
      of Forfeiture.
      If a
      re-employed Participant: (a) was less than 100% vested in his Employer
      Contribution Accounts when he terminated employment, (b) received a distribution
      of the vested portion, if any, of his Employer Contribution Accounts pursuant
      to
      Section 7.7(b) of the Plan, and (c) resumed his status as an active Participant
      before having incurred five (5) consecutive 1-year Breaks in Service, then
      the
      full amount of the forfeiture (unadjusted for gains or losses in the interim)
      pursuant to Section 7.8 of the Plan shall be restored to his Accrued Benefit.
      If
      the Participant had no vested interest in his Employer Contribution Accounts,
      the restoration shall be made as of the date of resumption of status as an
      active Participant. Notwithstanding any other Plan provisions regarding
      utilization of forfeitures, the restored forfeiture shall be derived from
      forfeitures arising in the Plan Year in which the restoration occurs. However,
      the Employer may, and in the absence of available forfeitures shall, make a
      separate contribution to the Plan for the purpose of restoring the forfeiture,
      which contribution shall be made not later than the end of the Plan Year
      following the Plan Year in which the resumption of employment by the Participant
      occurred. The restoration shall not be deemed to be an Annual Addition for
      purposes of Article V of the Plan.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    7.10  
        Direct
      Rollover. 

     

    
      	 	
              (a)

            	
              Applicability.
                Notwithstanding any provision of the Plan to the contrary that would
                otherwise limit a distributee’s election under this Article, a distributee
                may elect, at the time and in the manner prescribed by the Committee
                to
                have any portion of an eligible rollover distribution paid directly
                to an
                eligible retirement plan specified by the distributee in a direct
                rollover.

            

    

     

    
      	 	
              (b)

            	
              Definitions.

            

    

     

    
      	 	
              (1)

            	
              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 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; any
                amount
                distributed on account of a hardship distribution; 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).

            

    

     

    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
      includable in gross income. However, such portion may be transferred only to
      an
      individual retirement account or annuity described in Code Section 408(a) or
      (b), or to a qualified defined contribution plan described in Code Section
      401(a) or 403(a) that agrees to separately account for amounts so transferred,
      including separately accounting for the portion of such distribution which
      is
      includable in gross income and the portion of such distribution which is not
      so
      includable.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              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. 

            

    

     

    An
      eligible retirement plan shall also mean an annuity contract described in Code
      Section 403(b) and an eligible plan under Code Section 457(b) which is
      maintained by a state, political subdivision of a state, or any agency or any
      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 relations order, as defined in Code
      Section 414(p).

     

    
      	 	
              (3)

            	
              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 described in Section 414(p)
                of
                the Code, are distributees with regard to the interest of the spouse
                or
                former spouse. 

            

    

     

    
      	 	
              (4)

            	
              Direct
                Rollover.
                A
                direct rollover is a payment by the plan to the eligible retirement
                plan
                specified by the distributee. 

            

    

     

    
      	 	
              (5)

            	
              Non-Spouse
                Beneficiary.
                Effective January 1, 2007, a direct trustee-to-trustee transfer may
                be
                made to an individual retirement account established for the purpose
                of
                receiving a distribution from a designated beneficiary who is not
                the
                spouse of the Employee or former
                Employee.

            

    

     

    7.11  
        Qualified
      Domestic Relations Order. All
      rights and benefits, including election rights, provided to Participants
      pursuant to this Plan, are subject to the rights afforded to any “alternate
      payee”, as defined in Section 414(p)(8) of the Code, pursuant to a “qualified
      domestic relations order”, as defined in Section 414(p) of the
      Code.

     

    Payment
      to an “alternate payee” pursuant to a “qualified domestic relations order” shall
      be made at such time as determined or permitted pursuant to the qualified
      domestic relations order, including distributions before the Participant reaches
      his earliest retirement age as defined in Code Section 414(p)(4)(B). The
      Committee shall establish procedures to determine the status of a judgment,
      decree or order as a qualified domestic relations order and to administer Plan
      distributions in accordance with any such qualified domestic relations
      order.

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    Upon
      receipt of any judgment, decree or order (including approval of a property
      settlement agreement) relating to the provision of payment by the Plan to an
      alternate payee pursuant to a state domestic relations law, the Committee shall
      promptly notify the affected Participant and any alternate payee of the receipt
      of such judgment, decree or order and shall notify the affected Participant
      and
      any alternate payee of the Committee’s procedure for determining whether or not
      the judgment, decree or order is a qualified domestic relations
      order.

     

    ARTICLE
      VIII

    BENEFICIARY
      AND PARTICIPANT INFORMATION 

     

    8.1    Designation
      of Beneficiary. 

     

    
      	 	
              (a)

            	
              Each
                Participant from time to time may designate any person or persons
                (who may
                be named contingently or successively) to receive any benefits payable
                under the Plan upon or after his death, and any such designation
                may be
                changed from time to time by the Participant by filing a new designation.
                Each designation will revoke all prior designations made by the
                Participant, shall be in writing in the form prescribed by the Employer
                and shall be effective only when the written designation is filed
                with the
                Employer during his lifetime. 

            

    

     

    
      	 	
              (b)

            	
              The
                Beneficiary of a Participant who is married at the time of his death
                shall
                be his surviving spouse unless his surviving spouse consents in writing
                on
                the form provided for that purpose by the Committee to the designation
                of
                another beneficiary. A consent by a Participant’s spouse shall not be
                effective unless such consent is witnessed by one of the members
                of the
                Committee or a Notary Public.

            

    

     

    
      	 	
              (c)

            	
              In
                the absence of a valid Beneficiary designation (except in conjunction
                with
                the election of a form of benefit payment which does not require
                the
                designation of a specific Beneficiary) or if, at the time any benefit
                becomes payable to a Beneficiary, there is no living Beneficiary
                properly
                designated by the Participant to receive the benefit, the Committee
                shall
                direct the Trustee to distribute such benefit to the Participant’s spouse,
                if then living. If there is no surviving spouse, then the benefit
                shall be
                paid to the Participant’s then living descendants, if any, by root,
                otherwise to the Participant’s then living parent or parents, equally,
                otherwise to the Participant’s
                estate.

            

    

     

    8.2    Information
      to be Furnished by Participant and Beneficiaries. Any
      communications addressed to a Participant or Beneficiary at his last post office
      address filed with the Committee shall be binding on the Participant or
      Beneficiary for all purposes of the Plan. Except for the Committee’s sending of
      a registered letter to the last known address, neither the Trustee nor the
      Committee shall be obliged to search for any Participant or
      Beneficiary.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX

    LOANS
      TO PARTICIPANTS

     

    9.1    Loans.
      The
      Committee shall establish a loan program under which: 

     

    
      	 	
              (a)

            	
              Loans
                shall be made available to all active Participants and Participants
                on
                long-term disability on a reasonably equivalent basis.
                

            

    

     

    
      	 	
              (b)

            	
              Loans
                shall not be made available to Highly Compensated Employees (as defined
                in
                Section 414(q) of the Code) in an amount greater, or on terms otherwise
                more favorable, than the amount or terms applicable to loans made
                available to other Employees.

            

    

     

    
      	 	
              (c)

            	
              Loans
                must be adequately secured and bear a reasonable interest rate.
                

            

    

     

    
      	 	
              (d)

            	
              No
                loan to any Participant can be made to the extent that such loan
                when
                added to the outstanding balance of all other loans to the Participant
                or
                Beneficiary would exceed the lesser of (a) $50,000 reduced by the
                excess
                (if any) of (the highest outstanding balance of loans during the
                one year
                period ending on the day before the loan is made, over the outstanding
                balance of loans from the Plan on the date the loan is made), or
                (b) 50%
                of the Participant’s vested Accrued Benefit.

            

    

     

    
      	 	
              (e)

            	
              A
                Participant is not required to obtain the consent of his or her spouse,
                if
                any, to use of the account balance as security for the loan.
                

            

    

     

    
      	 	
              (f)

            	
              Loan
                repayments will be suspended under the Plan as permitted under Code
                Section 414(u)(4).

            

    

     

    
      	 	
              (g)

            	
              Loans
                will be funded with assets withdrawn pro-rata across all money types
                and
                funds.

            

    

     

    Notwithstanding
      any other provision of this Plan, the portion of the Participant’s vested
      account balance used as a security interest held by the Plan by reason of a
      loan
      outstanding to the Participant shall be taken into account for purposes of
      determining the amount of the account balance payable at the time of death
      or
      distribution, but only if the reduction is used as repayment of the loan. If
      less than 100% of the Participant’s vested account balance (determined without
      regard to the preceding sentence) is payable to the surviving spouse, then
      the
      account balance shall be adjusted by first reducing the vested account balance
      by the amount of the security used as repayment of the loan, and then
      determining the benefit payable to the surviving spouse. 

     

    For
      the
      purpose of the above limitation, all loans from all plans of the Employer and
      all Affiliated Employers are aggregated. Furthermore, any loan shall by its
      terms require that repayment (principal and interest) be amortized in level
      payments, not less frequently than quarterly, over a period not extending beyond
      five years from the date of the loan, unless such loan is used to acquire a
      dwelling unit which within a reasonable time (determined at the time the loan
      is
      made) will be used as the principal residence of the Participant.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    9.2    Participant
      Loan Program.
      The
      Committee may prescribe such additional rules and procedures as it may deem
      appropriate, including, without limitation, rules and procedures by which the
      making of loans to Participants may be terminated, suspended, or restricted,
      if
      any, to the extent deemed by the Committee to be necessary or desirable in
      order
      to effect compliance with applicable laws or regulations (the “Participant Loan
      Program”). The rules and procedures reported in the Loan-by-Phone guidelines are
      incorporated in the Participant Loan Program. To the extent the Participant
      Loan
      Program conflicts with the terms of the Plan, the terms of the Participant
      Loan
      Program shall prevail, as long as such Program does not conflict with the Code,
      ERISA, or other applicable laws or regulations.

     

    ARTICLE
      X

    VOTING
      PROVISIONS

     

    10.1  
        Voting
      Rights of Company Stock. 
      Each
      Participant, including their beneficiaries and alternate payees (individually,
      “Participant” and collectively, “Participants”) is, for purposes of this Section
      hereby designated a “named fiduciary” within the meaning of ERISA Section
      403(a)(1) and shall be entitled to direct the Plan and Trustee as to the manner
      in which Company Stock allocated to such Participant’s accounts is to be voted
      on each matter brought before an annual or special stockholders’ meeting of the
      Company. Company Stock may be held in different accounts and shall be voted
      as
      provided below by the Trustee. 

     

    The
      Committee shall determine the total number of shares of Company Stock allocated
      to each Participant’s accounts as of the record date and such shares shall be
      voted in accordance with directions of such Participant. Upon timely receipt
      of
      such directions, the Trustee shall on each such matter, vote as directed the
      number of votes attributable to such Participant.

     

    The
      number of votes attributable to each Participant shall be determined as
      follows:

     

    
      	 	
              (a)

            	
              First,
                the total number of votes attributable to Company Stock held in the
                Trust
                shall be determined;

            

    

     

    
      	 	
              (b)

            	
              Second,
                the number of votes determined under (a), above, shall be attributed
                to
                each Participant, in the ratio which the number of shares of Company
                Stock
                allocated to such Participant’s accounts in the Trust as of the record
                date bears to the total number of shares of Company Stock held in
                the
                Trust as of such date.

            

    

     

    Each
      Participant as a named fiduciary, shall be entitled to separately direct the
      vote of a portion of the number of votes with respect to which a signed
      voting-direction instrument is not timely received from other Participants
      in
      the Trust (“Undirected Votes”). Such direction with respect to each Participant
      who timely elects to direct the vote of Undirected Votes in the Trust as a
      named
      fiduciary shall be with respect to a number of Undirected Votes in the Trust
      equal to the total number of Undirected Votes in the Trust multiplied by a
      fraction, the numerator of which is the total number of votes attributable
      to
      such Participant in the Trust and the denominator of which is the total number
      of votes attributable to all Participants who timely elect to vote Undirected
      Votes as a named fiduciary in the Trust.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    10.2  
        Responding
      to Tender and Exchange Offers.
      Each
      Participant is, for purposes of this Section, hereby designated a “named
      fiduciary” within the meaning of Section 403(a)(1) of ERISA and shall have the
      right, to the extent of the number of shares of Company Stock allocated to
      the
      Participant’s accounts in the Trust, to direct the Trustee in writing as to the
      manner in which to respond to such tender or exchange offer with respect to
      shares of Company Stock. The Committee shall use its best efforts to timely
      distribute or cause to be distributed to each Participant such information
      as
      will be distributed to stockholders of the Company in connection with any such
      tender or exchange offer. Upon timely receipt of such instructions, the Trustee
      shall respond as instructed with respect to shares of Common Stock in the Trust
      allocated to such Participant’s accounts. If the Trustee shall not receive
      timely instructions from a Participant as to the manner in which to respond
      to
      such a tender or exchange offer, the Trustee shall not tender or exchange any
      shares of Company Stock held in the Participant’s account. In effecting the
      foregoing, to the extent possible, the Trustee shall tender or exchange shares
      of Company Stock entitled to one vote per share prior to shares of Company
      Stock
      having greater than one vote per share.

     

    10.3  
        Confidentiality.
      Any
      instructions received by the Trustee from Participants (or, if applicable,
      Beneficiaries), pursuant to this Article X shall be held by the Trustee in
      strict confidence and no officer or Employee of the Company or an Affiliated
      Employer shall ask the Trustee to divulge or release such instructions to any
      officer or Employee of
      the
      Company or an Affiliated Employer; provided, however, that to the extent
      necessary for the operation of the Plan, such instructions may be relayed by
      the
      Trustee to a recordkeeper, auditor or other person providing services to the
      Plan if such person (1) is not the Company, an Affiliated Employer or any
      Employee, officer or director thereof, and (2) agrees not to divulge such
      directions to any other person, including Employees, officers and directors
      of
      the Company
      and its
      Affiliated Employers.

     

    ARTICLE
      XI

    TOP
      HEAVY PROVISIONS 

     

    11.1  
        Applicability.
      Notwithstanding any other provisions of the Plan, if for any Plan Year the
      Plan
      becomes a Top Heavy Plan, the requirements of this Article XI of the Plan shall
      be applied for such Plan Year.

     

    11.2  
        Definitions.
      The
      following terms shall have the following meanings in the determination of
      whether or not the Plan is a Top Heavy Plan:

     

    
      	 	
              (a)

            	
              Determination
                Date.
                The term “Determination Date” means, with respect to any Plan Year, the
                last day of the preceding Plan Year, or in case of the first Plan
                Year,
                the last day of such year.

            

    

     

    
      	 	
              (b)

            	
              Employer.
                The Employer who adopted this Plan and any other Employer some or
                all of
                whose Employees participate in this Plan or in a retirement plan
                which is
                aggregated with this Plan as part of a permissive or required aggregation
                group.

            

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              Employer
                Group.
                A
                group of Employers who, for purposes of Section 416 of the Code,
                are
                treated as a single Employer under Section 414(b), (c) or (m) of
                the
                Code.

            

    

     

    
      	 	
              (d)

            	
              Key
                Employee.
                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 Code Section 416(i)(1)), 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 Code Section 415(c)(3). The
                determination of who is a Key Employee will be made in accordance
                with
                Code Section 416(i)(1) and the applicable regulations and other guidance
                of general applicability issued
                thereunder.

            

    

     

    
      	 	
              (e)

            	
              Non-Key
                Employee.
                Any Employee or former Employee (or Beneficiaries of such Employee)
                who is
                not considered to be a Key
                Employee.

            

    

     

    
      	 	
              (f)

            	
              Permissive
                Aggregation Group.
                The Committee may treat any plan not required to be included in the
                Required Aggregation Group (as defined herein) as being part of such
                group
                if the group would continue to satisfy the requirements of Sections
                401
                (a)(4) and 410 of the Code with such plan being taken into
                account.

            

    

     

    
      	 	
              (g)

            	
              Required
                Aggregation Group.
                (1) Each qualified plan of the Employer in which at least one Key
                Employee
                participates or participated at any time during the determination
                period
                (regardless of whether the plan has terminated), and (2) any other
                qualified plan of the Employer which enables a plan described in
                (1) to
                meet the requirements of Section 401(a)(4) or 410 of the
                Code.

            

    

     

    
      	 	
              (h)

            	
              Top
                Heavy Plan.
                For any Plan Year, this Plan is Top Heavy if any of the following
                conditions exist: 

            

    

     

    
      	 	
              (1)

            	
              If
                the Top Heavy Ratio for this Plan exceeds 60%, provided this Plan
                is not
                part of any required aggregation group or permissive aggregation
                group of
                plans.

            

    

     

    
      	 	
              (2)

            	
              If
                this Plan is a part of a required aggregation group of plans, but
                not part
                of a permissive aggregation group, the Top Heavy Ratio for the group
                of
                plans exceeds 60%.

            

    

     

    
      	 	
              (3)

            	
              If
                this Plan is a part of a required aggregation group and part of a
                permissive aggregation group of plans and the Top Heavy Ratio for
                the
                entire group exceeds 60%.

            

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    
      	 	
              (i)

            	
              Top
                Heavy Ratio.

            

    

     

    
      	 	
              (1)

            	
              If
                the Employer maintains one or more defined contribution plans (including
                any Simplified Employee Pension Plan) and the Employer has not maintained
                any defined benefit plan which during the 5-year period ending on
                the
                determination date(s) has or has had Accrued Benefits, the Top Heavy
                Ratio
                for this Plan alone or for the required or permissible aggregation
                group
                as appropriate is a fraction, the numerator of which is the sum of
                the
                account balances of all Key Employees as of the determination date(s)
                and
                the denominator of which is the sum of all account balances for all
                Participants, both computed in accordance with Section 416 of the
                Code and
                the regulations thereunder. Both the numerator and denominator of
                the Top
                Heavy Ratio are increased to reflect any contribution not actually
                made as
                of the determination date, but which is required to be taken into
                account
                on that date under Section 416 of the Code and the regulations
                thereunder.

            

    

     

    The
      present value of accrued benefits and the sum of all account balances shall
      be
      increased by the aggregate distribution made with respect to an Employer in
      the
      1-year period ending on the determination date; however, substitute “5-year
      period” for “1-year period” in the case of any distribution by reason other than
      severance from employment, death, or disability).

     

    
      	 	
              (2)

            	
              If
                the Employer maintains one or more defined contribution plans (including
                any Simplified Employee Pension Plan) and the Employer maintains
                or has
                maintained one or more defined benefit plans which during the 5-year
                period ending on the determination date(s) has or has had any accrued
                benefits, the Top Heavy Ratio for any required or permissive aggregation
                group as appropriate is a fraction, the numerator of which is the
                sum of
                account balances under the aggregated defined contribution plan or
                plans
                for all Key Employees, determined in accordance with paragraph (1)
                above,
                and the present value of accrued benefits under the aggregated defined
                benefit plan or plans for all Key Employees as of the determination
                date,
                and the denominator of which is the sum of the account balances under
                the
                aggregated defined contribution plan or plans for all Participants,
                determined in accordance with paragraph (1) above, and the present
                value
                of accrued benefits under the defined benefit plan or plans for all
                Participants, determined in accordance with paragraph (1) above,
                and the
                present value of accrued benefits under the defined benefit plan
                or plans
                for all Participants as of the determination date, all determined
                in
                accordance with Section 416 of the Code and the regulations
                thereunder.

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    The
      accrued benefit of a Non-Key Employee under any defined benefit plan shall
      be
      determined under the method, if any, that uniformly applies for accrual purposes
      under all defined benefit plans maintained by the Employer, or if there is
      no
      such method, as if such benefit accrued not more rapidly than the slowest
      accrual rate permitted under Section 411(b)(1)(C) of the Code. 

     

    
      	 	
              (3)

            	
              For
                purposes of (1) and (2) above, the value of account balances and
                the
                present value of accrued benefits will be determined as of the most
                recent
                Valuation Date that falls within or ends with the twelve (12) month
                period
                ending on the determination date, except as provided in Section 416
                of the
                Code and the regulations thereunder for the first and second plan
                years of
                a defined benefit plan. The account balances and accrued benefits
                of a
                Participant (i) who is a Non-Key Employee but who was a Key Employee
                in a
                prior year, any accrued benefit for such employee (and the account
                of such
                employee shall be disregarded).

            

    

     

    
      	 	
              (4)

            	
              The
                accrued benefits and accounts of any individual who has not performed
                services during the 1-year period ending on the determination date
                shall
                not be taken into account. The calculation of the Top Heavy Ratio,
                and the
                extent to which distributions, rollovers and transfers are taken
                into
                account will be made in accordance with Section 416 of the Code and
                the
                regulations thereunder. Deductible employee contributions will not
                be
                taken into account for purposes of computing the Top Heavy Ratio.
                When
                aggregating plans, the value of account balances and accrued benefits
                will
                be calculated with reference to the determination dates that fall
                within
                the same calendar year. 

            

    

     

    
      	 	
              (j)

            	
              Valuation
                Date.
                December 31 in each Plan Year, the date as of which account balances
                or
                Accrued Benefits are valued for purposes of calculating the Top Heavy
                Ratio.

            

    

     

    
      	 	
              (k)

            	
              Present
                Value.
                For purposes of establishing the present value of accrued benefits
                under
                defined benefit plans required to be aggregated with this Plan to
                compute
                the Top Heavy Ratio, any benefit shall be discounted only for mortality
                and interest based on the mortality assumptions and interest rate
                specified in such defined benefit
                plan.

            

    

     

    
      	 	
              (l)

            	
              Alternative
                Methods of Meeting Top-Heavy Requirements.
                Effective January 1, 2008, the term Top Heavy Plan shall not include
                a
                plan which consists solely of ំ 

            

    

     

    
      	 	
              (1)

            	
              a
                cash or deferred arrangement which meets the requirements of Section
                401(k)(12) or 401(k)(13), and

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              matching
                contributions with respect to which the requirements of Section 401(m)(11)
                or 401(m)(12) are met. 

            

    

     

    If,
      but
      for this paragraph, a plan would be treated as a Top-Heavy Plan because it
      is a
      member of an aggregation group which is a top-heavy group, contributions under
      the Plan may be taken into account in determining whether any other plan in
      the
      group has provided the minimum benefit described in Section 11.3 of the Plan.
      

     

    11.3  
        Minimum
      Allocation.

     

    
      	 	
              (a)

            	
              Except
                as otherwise provided in (c) and (d) below, the Employer contributions
                and
                forfeitures allocated on behalf of any Participant who is not a Key
                Employee shall not be less than the lesser of three percent of such
                Participant’s Total Compensation or in the case where the Employer has no
                defined benefit plan which designates this Plan to satisfy Section
                401 of
                the Code, the largest percentage of Employer contributions (including
                any
                salary deferral contribution) and forfeitures, as a percentage of
                the Key
                Employee’s Total Compensation, as limited by Section 401(a)(l7) of the
                Code, allocated on behalf of any Key Employee for that year. The
                minimum
                allocation is determined without regard to any Social Security
                contribution. This minimum allocation shall be made even though under
                other plan provisions, the Participant would not otherwise be entitled
                to
                receive an allocation, would have received a lesser allocation for
                the
                year because of (1) the Participant’s failure to complete 1,000 hours of
                service (or any equivalent provided in the Plan), (2) the Participant’s
                failure to make mandatory employee contributions (including Elective
                Deferrals) to the Plan, or (3) Compensation less than a stated amount.
                

            

    

     

    Matching
      Contributions shall be taken into account for purposes of satisfying the minimum
      contribution requirements of Code Section 416(c)(2) and the Plan. The preceding
      sentence shall apply with respect to matching contributions under the Plan
      or,
      if the Plan provides that the minimum contribution requirement shall be met
      in
      another plan, such other plan. Matching Contributions that are used to satisfy
      the minimum contribution requirements shall be treated as matching contributions
      for purposes of the actual contribution percentage test and other requirements
      of Code Section 401(m). Elective deferrals may not be taken into account for
      the
      purpose of satisfying the minimum Top Heavy contribution requirements.

     

    Catch-Up
      Contributions for the current year are not counted as Key Employee
      contributions, but prior-year Catch-Up Contributions are used to determine
      whether the Plan is Top Heavy.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              For
                purposes of computing the minimum allocation, Compensation will mean
                Total
                Compensation, as limited by Section 40l(a)(17) of the
                Code.

            

    

     

    
      	 	
              (c)

            	
              The
                provision in (a) above shall not apply to any Participant who was
                not
                employed by the Employer on the last day of the Plan
                Year.

            

    

     

    
      	 	
              (d)

            	
              If
                an Employee participates in both a defined benefit plan and a defined
                contribution plan, the minimum benefit shall be provided under the
                defined
                benefit plan. If an Employee participates in another defined contribution
                plan, the minimum benefit shall be provided under the other defined
                contribution plan. 

            

    

     

    11.4  
        Vesting.
      For any
      Plan Year in which this Plan is Top Heavy, each Employee’s Interest in his or
      her Accrued Benefit attributable to Employer contributions shall be fully vested
      and nonforfeitable. The minimum vesting schedule applies to all benefits accrued
      as of the date the Plan became Top Heavy and to all benefits accrued thereafter
      to which this Article applies. Further, no decrease in a Participant’s non
      forfeitable percentage may occur in the event the Plan’s status as Top Heavy
      changes for any Plan Year. However, this Section does not apply to the account
      balances of any Employee who does not have an hour of service after the Plan
      has
      initially become Top Heavy and such Employee’s Accrued Benefit attributable to
      Employer contributions and forfeitures will be determined without regard to
      this
      Section.

     

    ARTICLE
      XII

    ADMINISTRATION
      OF THE PLAN 

     

    12.1  
        Plan
      Committee. The
      CenturyTel Retirement Committee (the “Committee”), also known as the CenturyTel,
      Inc. Retirement Committee, shall serve as the Administrator, as defined in
      ERISA
      Section 3(16)(A). The Committee is also the Named Fiduciary, as defined in
      ERISA
      Section 402(a)(2), except where the Participant is the Named Fiduciary. The
      Committee shall be charged with the full power and the responsibility for
      administering the Plan in accordance with the terms and delegations stated
      in
      the Plan and the Charter of the CenturyTel Retirement Committee (the “Charter”),
      except as the Board of Directors of the Company shall otherwise expressly
      determine.

     

    12.2  
        Duties
      and Responsibilities of Fiduciaries.
      A
      fiduciary to the Plan shall have only those specific powers, duties,
      responsibilities and obligations as are explicitly given him under the Charter,
      Plan and Trust Agreement and shall not be responsible for any act or failure
      to
      act of another fiduciary. In general, the Employer shall have the sole
      responsibility for making contributions to the Plan required under Article
      III
      of the Plan, appointing the Trustee and the members of the Committee, and
      determining the funds available for investment under the Plan. The Committee
      shall have the sole responsibility for the administration of the Plan, as more
      fully described in Section 12.3 of the Plan.

     

    12.3  
        Powers
      and Responsibilities of the Plan Administrator. 

     

    
      	 	
              (a)

            	
              Administration
                of the Plan.
                The Committee shall have the responsibility for the management of
                the Plan
                and shall have the sole, final and absolute right to reconcile any
                inconsistency in the Plan, to interpret and construe the provisions
                of the
                Plan in all particulars, in such manner and to such extent as it
                deems
                proper, and to make all decisions and determinations necessary under
                the
                Plan. In addition, the Committee shall have the following powers,
                rights,
                and duties:

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    
      	 	
              (1)

            	
              The
                Committee may adopt suitable rules and regulations for the administration
                of the Plan.

            

    

     

    
      	 	
              (2)

            	
              Decisions
                of the Committee may be conveyed to third persons by any of its members.
                Third persons shall be entitled to assume that the decision so conveyed
                is
                given with the consent of the majority of the
                Committee.

            

    

     

    
      	 	
              (3)

            	
              The
                Committee shall cause to be kept all such records and other data
                as may be
                necessary for the performance of its
                duties.

            

    

     

    
      	 	
              (4)

            	
              The
                members of the Committee shall serve without compensation for their
                services as such. The Committee and the members thereof shall be
                free of
                any liability, joint or several, for their acts or failures to act
                as
                members or officers of such Committee in connection with this Plan,
                except
                that any member of the Committee shall be liable for his own willful
                misconduct or gross negligence. 

            

    

     

    
      	 	
              (5)

            	
              The
                Committee shall not exercise any powers conferred upon it in such
                a way as
                to result in discrimination in favor of any Participant who is a
                Highly-Compensated Employee.

            

    

     

    
      	 	
              (b)

            	
              Records
                and Reports.
                The Committee shall be responsible for maintaining sufficient records
                to
                reflect the Compensation of each Participant for purposes of determining
                the amount of contributions that may be made by or on behalf of the
                Participant under the Plan. The Committee shall be responsible for
                submitting all required reports and notification relating to the
                Plan to
                Participants or their Beneficiaries, the Internal Revenue Service,
                and the
                Department of Labor.

            

    

     

    
      	 	
              (c)

            	
              Furnishing
                Trustee with Instructions.
                The Committee shall be responsible for furnishing the Trustee with
                written
                instructions regarding all contributions to the Trust, all distributions
                to Participants and all loans to Participants. In addition, the Committee
                shall be responsible for furnishing the Trustee with any further
                information respecting the Plan which the Trustee may request for
                the
                performance of its duties or for the purpose of making any returns
                to the
                Internal Revenue Service or Department of Labor as may be required
                of the
                Trustee under the terms of the Trust
                Agreement.

            

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Rules
                and Decisions.
                The Committee may adopt such rules as it deems necessary, desirable
                or
                appropriate in the administration of the Plan. All rules and decisions
                of
                the Committee shall be applied uniformly and consistently to all
                Participants in similar circumstances. When making a determination
                of
                calculation, the Committee shall be entitled to rely upon information
                furnished by a Participant or Beneficiary, the Employer, and the
                legal
                counsel of the Employer or the
                Trustee.

            

    

     

    
      	 	
              (e)

            	
              Application
                and Forms for Benefits.
                The Committee may require a Participant or Beneficiary to complete
                and
                file with it an application for a benefit, and to furnish all pertinent
                information requested by it. The Committee may rely upon all such
                information so furnished to it, including the Participant’s or
                Beneficiary’s current mailing
                address.

            

    

     

    12.4  
        Allocation
      of Duties and Responsibilities.
      The
      Committee may by written instrument allocate among its members or employees
      any
      of its duties and responsibilities not already allocated under the Charter
      or
      Plan or may carry out any of the Committee’s duties and responsibilities under
      the Plan. Any such duties or responsibilities thus allocated must be described
      in the written instrument. If a person other than an Employee of the Employer
      is
      so designated, such person must acknowledge in writing his acceptance of the
      duties and responsibilities allocated to him.

     

    12.5  
        Expenses.
      Except
      as provided below, the Employer shall pay all expenses authorized and incurred
      by the Plan in the administration of the Plan (including Trustee’s fees) except
      to the extent such expenses are paid from the Trust. The Committee may direct
      the Trustee to charge reasonable administrative expenses of the Plan to
      Participants’ Accounts, including but not limited to fees to process domestic
      relations orders, but only to the extent that the Committee has determined
      that
      such charges to Participants’ Accounts are consistent with ERISA and
      interpretative guidance thereunder issued by the DOL.

     

    12.6  
        Liabilities.
      The
      Committee and each person to whom duties and responsibilities have been
      allocated pursuant to Section 12.4 of the Plan may be indemnified and held
      harmless by the Employer with respect to any alleged breach of responsibilities
      performed or to be performed hereunder.

     

    12.7  
        Claims
      Procedure.

     

    
      	 	
              (a)

            	
              Filing
                a Claim.
                Any Participant or Beneficiary under the Plan may file a written
                claim for
                a Plan benefit with the Committee or with a person named by the Committee
                to receive claims under the Plan.

            

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Notice
                of Denial of Claim.
                In the event of a denial or limitation of any benefit or payment
                due to or
                requested by any Participant or Beneficiary under the Plan (“Claimant”),
                Claimant shall be given a written notification containing specific
                reasons
                for the denial or limitation of his benefit. The written notification
                shall contain specific reference to the pertinent Plan provisions
                on which
                the denial or limitation of his benefit is based. In addition, it
                shall
                contain a description of any other material or information necessary
                for
                the Claimant to perfect a claim, and an explanation of why such material
                or information is necessary. The notification shall further provide
                appropriate information as to the steps to be taken if the Claimant
                wishes
                to submit his claim for review. This written notification shall be
                given
                to a Claimant within 90 days after receipt of his claim by the Committee
                unless special circumstances require an extension of time for processing
                the claim. If such an extension of time for processing is required,
                written notice of the extension shall be furnished to the Claimant
                prior
                to the termination of said 90-day period, and such notice shall indicate
                the special circumstances which make the postponement
                appropriate.

            

    

     

    
      	 	
              (c)

            	
              Right
                of Review.
                In the event of denial or limitation of his benefit, the Claimant
                or his
                duly authorized representative shall be permitted to review pertinent
                documents and to submit to the Committee issues and comments in writing.
                In addition, the Claimant or his duly authorized representative may
                make a
                written request for a full and fair review of his claim and its denial
                by
                the Committee; provided, however, that such written request must
                be
                received by the Committee (or its delegate to receive such requests)
                within 60 days after receipt by the Claimant of written notification
                of
                the denial or limitation of the claim. The 60-day requirement may
                be
                waived by the Committee in appropriate
                cases.

            

    

     

    
      	 	
              (d)

            	
              Decision
                on Review.
                A
                decision shall be rendered by the Committee within 60 days after
                the
                receipt of the request for review, provided that where special
                circumstances require an extension of time for processing the decision,
                it
                may be postponed on written notice to the Claimant (prior to the
                expiration of the initial 60-day period) for an additional 60 days
                after
                the receipt of such request for review. Any decision by the Committee
                shall be furnished to the Claimant in writing and shall set forth
                the
                specific reasons for the decision and the specific Plan provisions
                on
                which the decision is based.

            

    

     

    
      	 	
              (e)

            	
              Court
                Action.
                No Participant, Beneficiary or other Claimant shall have the right
                to seek
                judicial review of a denial of benefits, or to bring any action in
                any
                court to enforce a claim for benefits prior to filing a claim for
                benefits
                or exhausting his rights to review under this Section 12.7.
                

            

    

     

    
      	 	
              (f)

            	
              Notification.
                The Committee shall provide a Claimant with written or electronic
                notification. Electronic notification must comply with the standards
                imposed by 29 CFR 2520.104b-1(c)(1)(i), (ii), (iii), and
                (iv).

            

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    ARTICLE
      XIII

    AMENDMENT,
      TERMINATION AND MERGER

     

    13.1  
        Amendments.

     

    
      	 	
              (a)

            	
              The
                Employer expressly reserves the right to amend this Plan and Trust
                at any
                time and from time to time, and to any extent and in any manner that
                the
                Employer may deem advisable. The Board of Directors delegates to
                the
                Committee the right to amend the Plan and Trust to comply with changes
                in
                laws and regulations governing them. The Board also delegates to
                the
                Committee to right to incorporate prior amendments authorized by
                the Board
                or adopted by the Committee and current amendments adopted by the
                Committee into one Plan and Trust. Each amendment shall be authorized
                by
                the Committee and shall be set forth in an instrument in writing
                executed
                on behalf of the Employer by any one member of the
                Committee.

            

    

     

    
      	 	
              (b)

            	
              No
                amendment to the Plan (a) shall have the effect of vesting in the
                Employer
                any interest in the Trust; or (b) shall cause or permit the Trust
                or any
                part thereof to be diverted to purposes other than the exclusive
                benefit
                of the present or future Participants and their Beneficiaries and
                Alternate Payees; or (c) shall increase the duties or obligations
                of the
                Trustee without its written
                consent.

            

    

     

    13.2  
        Plan
      Termination: Discontinuance of Employer Contributions.

     

    
      	 	
              (a)

            	
              The
                Employer has established the Plan with the bona fide intention and
                expectation that from year to year it will make its contributions
                to the
                Trust under the Plan as herein provided. However, the Employer is
                not and
                shall not be under any obligation or liability whatsoever to continue
                its
                contributions or to maintain the Plan for any given length of time,
                and
                the Employer reserves the right, in its sole and absolute discretion,
                to
                terminate the Plan at any time without any liability whatsoever to
                any
                Employee, Participant, Beneficiary or Alternate Payee for such
                termination.

            

    

     

    
      	 	
              (b)

            	
              Upon
                the complete or partial termination of the Plan or the complete
                discontinuance of Employer contributions under the Plan, the Accrued
                Benefit of all active Participants affected thereby shall become
                fully
                vested and nonforfeitable, and the Committee shall direct the Trustee
                to
                distribute assets remaining in the Trust, after payment of any expenses
                properly chargeable thereto, to Participants or their Beneficiaries.
                

            

    

     

    13.3  
        Successor
      Employer.
      In the
      event of the dissolution, merger, consolidation or reorganization of the
      Employer, provision may be made by which the Plan and Trust shall be continued
      by a successor Employer, in which case such successor Employer shall be
      substituted for the Employer under the Plan. The substitution of the successor
      Employer shall constitute an assumption of Plan liabilities by the successor
      Employer, and the successor Employer shall have all powers, duties and
      responsibilities of the Employer under the Plan.

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    13.4  
        Merger,
      Consolidation or Transfer.
      The
      Plan may be merged or consolidated with, or its assets and liabilities may
      be
      transferred to, any other plan only if the benefits which would be received
      by a
      Participant in the event of a termination of the Plan immediately after such
      transfer, merger or consolidation are at least equal to the benefits such
      Participant would have received if the Plan had terminated immediately prior
      to
      the transfer, merger or consolidation.

     

    ARTICLE
      XIV

    MISCELLANEOUS
      PROVISIONS

     

    14.1  
        Exclusive
      Benefit of Participants and Beneficiaries.

     

    
      	 	
              (a)

            	
              All
                assets of the Trust shall be retained for the exclusive benefit of
                Participants and their Beneficiaries, and shall be used only to pay
                benefits to such persons or to pay reasonable fees and expenses of
                the
                Trust and of the administration of the Plan. The assets of the Trust
                shall
                not revert to the benefit of the Employer, except as otherwise
                specifically provided in Section 14.1(b) of the
                Plan.

            

    

     

    
      	 	
              (b)

            	
              Contributions
                to the Trust under this Plan are subject to the following
                conditions:

            

    

     

    
      	 	
              (1)

            	
              If
                a contribution or any part thereof is made to the Trust by the Employer
                under a mistake of fact, such contribution or part thereof shall
                be
                returned to the Employer within one year after the date the contribution
                is made;

            

    

     

    
      	 	
              (2)

            	
              Contributions
                to the Trust are specifically conditioned on their deductibility
                under
                Section 404 of the Code and, to the extent a deduction is disallowed
                for
                any such contribution, such amount shall be returned to the Employer
                within one year after the date of the disallowance of the
                deduction.

            

    

     

    14.2  
        Nonguarantee
      of Employment.
      Nothing
      contained in this Plan shall be construed as a contract of employment between
      the Employer and any Employee, or as a right of any Employee to be continued
      in
      the employment of the Employer, or as a limitation of the right of the Employer
      to discharge any of its Employees, with or without cause.

     

    14.3  
        Rights
      to Trust Assets.
      No
      Employee, Participant or Beneficiary shall have any right to, or interest in,
      any assets of the Trust upon termination of employment or otherwise, except
      as
      provided under the Plan. All payments of benefits under the Plan shall be made
      solely out of the assets of the Trust.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    14.4  
        Nonalienation
      of Benefits.
      Except
      as
      provided under Article IX of the Plan, with respect to Plan loans, benefits
      payable under the Plan shall not be subject in any manner to anticipation,
      alienation, sale, transfer, assignment, pledge, encumbrance, charge,
      garnishment, execution or levy of any kind, voluntary or involuntary; provided,
      however, that the Committee shall not be hereby precluded from complying with
      a
      qualified domestic relations order described in Section 414(p) of the Code.
      Any
      attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
      charge or otherwise dispose of any right to benefits payable hereunder shall
      be
      void. The Trust shall not in any manner be liable for, or subject to, the debts,
      contracts, liabilities, engagements or torts of any person entitled to benefits
      hereunder.

     

    14.5  
        Gender.
      The use
      of the masculine pronoun shall extend to and include the feminine gender
      wherever appropriate, the use of the singular shall include the plural and
      the
      use of the plural shall include the singular wherever appropriate.

     

    14.6  
        Titles
      and Headings.
      The
      titles or headings of the respective Articles and Sections are inserted merely
      for convenience and shall be given no legal effect.

     

    THUS
      DONE AND SIGNED THIS 22nd
      day of
      December, 2006.

     

    
      	 	
              CENTURYTEL,
                INC.

            
	 	 	 
	 	
              By:

            	
              /s/
                R. Stewart Ewing, Jr.

            
	 	 	
              R.
                Stewart Ewing, Jr.,

            
	 	 	
              Executive
                Vice President and Chief Financial
                Officer

            

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    GROUP
      A PARTICIPANTS, EMPLOYERS AND 

    EMPLOYER
      MATCH CONTRIBUTIONS

    

    Group
      A
      Participants participate in this Plan (or participated in the Group Incentive
      Plan or Telephone USA Union Plan) pursuant to collective bargaining agreements
      between the following Employers and Communications Workers of America (“CWA”) or
      International Brotherhood of Electrical Workers (“IBEW”) union locals, at the
      following Employer Match Contribution levels:

     

    

    
      	
              Employer
                

            	
              Union
                Local #

            	
              Match
                (as % of First 6% of Compensation deferred as an Elective
                Deferral

            
	
              CenturyTel
                of Alabama LLC

            	
              CWA
                3971

              CWA
                3972

              CWA
                3974

            	
              82%

              82%

              82%

            
	
              CenturyTel
                of Central Wisconsin

            	
              CWA
                4671

              CWA
                4672

              CWA
                4674

            	
              70%

              70%

              70%

            
	
              Telephone
                USA of Wisconsin LLC

            	
              CWA
                4675

            	
              70%

            
	
              CenturyTel
                of Northwest Arkansas LLC

            	
              CWA
                6171 (NW)

            	
              70%

              70%

            
	
              CenturyTel
                of Central Arkansas LLC

            	
              CWA
                6171

            	
              70%

              70%

            
	
              CenturyTel
                Holdings Missouri, Inc.

            	
              CWA
                6301

              CWA
                6310

              CWA
                6311

              CWA
                6312

              CWA
                6373

            	
              82%

              82%

              82%

              82%

              82%

            
	
              CenturyTel
                of Missouri LLC

            	
              IBEW
                257

            	
              70%

            
	
              CenturyTel
                of Washington, Inc. 

            	
              CWA
                7818

              IBEW
                89

            	
              60%

              60%

            
	
              CenturyTel
                of Oregon, Inc.

            	
              IBEW
                89

            	
              60%

            
	
              CenturyTel
                of Oregon, Inc. (except for Aurora, Knappa and Scappose
                areas

            	
              CWA
                7906

              IBEW
                89

            	
              60%

              60%

            
	
              CenturyTel
                of Eastern Oregon, Inc. (except Chiloquin and Lakeview
                areas)

            	
              CWA
                7906

            	
              60%

              60%

            
	
              CenturyTel
                of Upper Michigan, Inc.

            	
              IBEW
                1106

            	
              66%

            
	
              CenturyTel.
                of Montana

            	
              IBEW
                768

            	
              60%

            

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

    GROUP
      B PARTICIPANTS, EMPLOYERS AND

    EMPLOYER
      MATCH CONTRIBUTIONS

    

    Group
      B
      Participants participate in this Plan (or participated in the Retirement Savings
      Plan) pursuant to collective bargaining agreements between the following
      Employers and the Communications Workers of America (“CWA”) union locals, at the
      following Employer Match Contribution levels:

     

    

    
      	
              Employer
                

            	
              Union
                Local #

            	
              Match
                (as % of first 6% of Compensation Deferred as an Elective
                Deferral

            
	 	 	 
	
              CenturyTel
                of Ohio, Inc.

            	
              CWA
                4370

            	
              60%

            

    

     

     

    B-1Exhibit 10.1(c)

    
      

    

     

    Exhibit
      10.1(c)

     

    CENTURYTEL
      RETIREMENT PLAN

     

    As
      Amended and Restated effective December 31, 2006

     

    CenturyTel,
      Inc. (the “Company”) previously established the CenturyTel Retirement Plan
      (“Plan”) for the exclusive benefit of eligible employees of the Company and
      other adopting employers, and last amended and restated the Plan on February
      28,
      2002. The Plan provides benefits for Employees of the Company and adopting
      employers and former employees of other companies which were acquired by the
      Company directly or indirectly. Effective December 31, 2006, the CenturyTel,
      Inc. Plan for Salaried Employees’ Pensions (“Salaried Plan”), the CenturyTel,
      Inc. Plan for Hourly-Paid Employees’ Pensions (“Hourly Plan”) and the
      CenturyTel, Inc. Pension Plan for Bargaining Unit Employees (“Ohio Plan”)
      (collectively “Constituent Plans”) were merged into the Plan. Effective December
      31, 2006, the Constituent Plans and the Plan constitute a single plan under
      Code
      Section 414(l), and all of the assets of the former Constituent Plans and the
      Plan held by all Trusts under the Plan shall be available to pay all benefits
      under the Plan. The benefits for certain employees of certain Affiliates and
      Adopting Entities and benefits attributable to transfers of assets from the
      Constituent Plans and other plans to this Plan are determined in accordance
      with
      Schedules 6.1(f)-1 through 6.1(f)-4. Where a provision of the Plan is superceded
      or modified by a provision in the Hourly, Salaried or Ohio Plan portions of
      the
      Plan (for Participants receiving a benefit under such portions of the Plan),
      the
      following notations are included at the end of the applicable section of the
      Plan: ∑
      (Salaried Plan), #
      (Hourly
      Plan), or Ω (Ohio Plan). 

     

    The
      provisions of the Plan and Trust relating to the Trustee constitute the trust
      agreement which is entered into by and between CenturyTel, Inc., the adopting
      employers and Prudential Bank & Trust FSB. The Trust is intended to be tax
      exempt, pursuant to Code Section 501(a).

     

    The
      Plan
      is intended to comply with the qualification requirements of the Economic Growth
      and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), and other legal and
      regulatory changes since the last restatement, including requirements to adopt
      “good faith” amendments applicable to Cycle A filers in IRS Notice 2005-101, and
      is intended to comply in operation therewith. To the extent that the Plan,
      as
      set forth below, is subsequently determined to be insufficient to comply with
      such requirements and any regulations issued, the Plan shall later be amended
      to
      so comply.

     

    The
      Plan
      constitutes an amendment and restatement of the CenturyTel Retirement Plan
      and
      each Constituent Plan, effective December 31, 2006, unless stated otherwise
      herein. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of Contents

     

    
      	 	 	
              Page

            
	 	 
	
              ARTICLE
                I EFFECTIVE DATE AND APPLICATION

            	
              1

            
	 	 	 
	
              1.1

            	
              EFFECTIVE
                DATE.

            	
              1

            
	
              1.2

            	
              QUALIFICATION.

            	
              1

            
	
              1.3

            	
              SPONSORING
                AND ADOPTING EMPLOYERS.

            	
              1

            
	
              1.4

            	
              INCORPORATION
                OF TRUST AGREEMENT.

            	
              1

            
	 	 
	
              ARTICLE
                II DEFINITIONS

            	
              1

            
	 	 	 
	
              2.1

            	
              ACCRUED
                BENEFIT

            	
              1

            
	
              2.2

            	
              ACTUARIAL
                EQUIVALENCY OR ACTUARIAL EQUIVALENT

            	
              1

            
	
              2.3

            	
              ADOPTING
                ENTITY

            	
              2

            
	
              2.4

            	
              AFFILIATE

            	
              2

            
	
              2.5

            	
              ALTERNATIVE
                JOINT AND SURVIVOR ANNUITY

            	
              3

            
	
              2.6

            	
              ANNUITY
                STARTING DATE

            	
              3

            
	
              2.7

            	
              BENEFICIARY

            	
              3

            
	
              2.8

            	
              BENEFIT
                COMPUTATION PERIOD

            	
              3

            
	
              2.9

            	
              BOARD

            	
              3

            
	
              2.10

            	
              BREAK
                IN SERVICE

            	
              3

            
	
              2.11

            	
              CODE

            	
              3

            
	
              2.12

            	
              COMMITTEE

            	
              3

            
	
              2.13

            	
              COMPANY

            	
              3

            
	
              2.14

            	
              COMPENSATION

            	
              4

            
	
              2.15

            	
              COMPUTATION
                PERIOD

            	
              5

            
	
              2.16

            	
              CONSTITUENT
                PLANS

            	
              5

            
	
              2.17

            	
              CREDITED
                SERVICE

            	
              5

            
	
              2.18

            	
              DISABILITY
                OR DISABLED

            	
              5

            
	
              2.19

            	
              EARLY
                RETIREMENT DATE

            	
              5

            
	
              2.20

            	
              ELIGIBILITY
                COMPUTATION PERIOD

            	
              6

            
	
              2.21

            	
              ELIGIBLE
                EMPLOYEE

            	
              6

            
	
              2.22

            	
              EMPLOYEE

            	
              6

            
	
              2.23

            	
              EMPLOYER

            	
              6

            
	
              2.24

            	
              ERISA

            	
              6

            
	
              2.25

            	
              FINAL
                AVERAGE PAY

            	
              6

            
	
              2.26

            	
              HOUR
                OF SERVICE

            	
              6

            
	
              2.27

            	
              HOURLY
                PLAN

            	
              8

            
	
              2.28

            	
              LAYOFF

            	
              8

            
	
              2.29

            	
              LEAVE
                OF ABSENCE

            	
              8

            
	
              2.30

            	
              LTD
                PLAN

            	
              8

            
	
              2.31

            	
              MONTHLY
                COMPENSATION

            	
              8

            
	
              2.32

            	
              NORMAL
                FORM

            	
              8

            
	
              2.33

            	
              NORMAL
                RETIREMENT AGE

            	
              8

            
	
              2.34

            	
              NORMAL
                RETIREMENT DATE

            	
              9

            
	
              2.35

            	
              OHIO
                PLAN

            	
              9

            
	
              2.36

            	
              PARTICIPANT

            	
              9

            
	
              2.37

            	
              PLAN

            	
              9

            
	
              2.38

            	
              PLAN
                ADMINISTRATOR

            	
              9

            
	
              2.39

            	
              PLAN
                YEAR

            	
              9

            
	
              2.40

            	
              PRIOR
                PLAN

            	
              9

            
	
              2.41

            	
              QUALIFIED
                DOMESTIC RELATIONS ORDER OR QDRO

            	
              9

            
	
              2.42

            	
              QUALIFIED
                JOINT AND SURVIVOR ANNUITY OR QJSA

            	
              9

            
	
              2.43

            	
              REQUIRED
                BEGINNING DATE

            	
              9

            
	
              2.44

            	
              SALARIED
                PLAN

            	
              10

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    
      	
              2.45

            	
              SINGLE
                LIFE ANNUITY

            	
              10

            
	
              2.46

            	
              SOCIAL
                SECURITY COVERED COMPENSATION

            	
              10

            
	
              2.47

            	
              SPOUSE

            	
              10

            
	
              2.48

            	
              TRUST
                AGREEMENT

            	
              10

            
	
              2.49

            	
              TRUSTEE

            	
              11

            
	
              2.50

            	
              VESTING
                COMPUTATION PERIOD

            	
              11

            
	
              2.51

            	
              YEAR
                OF CREDITED SERVICE

            	
              11

            
	
              2.52

            	
              YEAR
                OF ELIGIBILITY SERVICE

            	
              11

            
	
              2.53

            	
              YEAR
                OF SERVICE

            	
              11

            
	
              2.54

            	
              YEAR
                OF VESTING SERVICE

            	
              11

            
	 	 
	
              ARTICLE
                III ELIGIBILITY AND PARTICIPATION

            	
              11

            
	 	 	 
	
              3.1

            	
              ELIGIBLE
                EMPLOYEES.

            	
              11

            
	
              3.2

            	
              REQUIREMENTS
                FOR PARTICIPATION.

            	
              12

            
	
              3.3

            	
              EFFECTIVE
                TIME OF PARTICIPATION.

            	
              12

            
	
              3.4

            	
              REASSIGNMENT
                AND REEMPLOYMENT.

            	
              12

            
	
              3.5

            	
              WAIVER
                OF PARTICIPATION.

            	
              12

            
	 	 
	
              ARTICLE
                IV CREDITING OF SERVICE

            	
              13

            
	 	 	 
	
              4.1

            	
              ELIGIBILITY
                SERVICE.

            	
              13

            
	
              4.2

            	
              VESTING
                SERVICE.

            	
              13

            
	
              4.3

            	
              CREDITED
                SERVICE.

            	
              13

            
	
              4.4

            	
              REEMPLOYMENT
                AFTER BREAK IN SERVICE.

            	
              15

            
	
              4.5

            	
              TRANSITION
                RULES AND SHORT AND OVERLAPPING COMPUTATION
                PERIODS.

            	
              15

            
	
              4.6

            	
              SPECIAL
                RULES FOR SERVICE UNDER PRIOR PLAN.

            	
              16

            
	
              4.7

            	
              TRANSFERS
                BETWEEN COMPANY, AFFILIATES AND ADOPTING
                ENTITIES.

            	
              17

            
	 	 
	
              ARTICLE
                V BENEFITS ON RETIREMENT, DEATH, DISABILITY AND TERMINATION OF
                EMPLOYMENT

            	
              18

            
	 	 	 
	
              5.1

            	
              NORMAL
                RETIREMENT.

            	
              18

            
	
              5.2

            	
              EARLY
                RETIREMENT.

            	
              18

            
	
              5.3

            	
              DEFERRED
                RETIREMENT.

            	
              18

            
	
              5.4

            	
              DISABILITY
                RETIREMENT.

            	
              18

            
	
              5.5

            	
              SPOUSE’S
                BENEFIT.

            	
              18

            
	
              5.6

            	
              BENEFIT
                ON TERMINATION OF EMPLOYMENT.

            	
              19

            
	
              5.7

            	
              LIMITATIONS
                ON PENSIONS.

            	
              21

            
	
              5.8

            	
              DEATH
                BENEFIT.

            	
              23

            
	 	 
	
              ARTICLE
                VI COMPUTATION OF BENEFIT AMOUNTS

            	
              23

            
	 	 	 
	
              6.1

            	
              NORMAL
                RETIREMENT BENEFIT.

            	
              23

            
	
              6.2

            	
              EARLY
                RETIREMENT BENEFIT.

            	
              25

            
	
              6.3

            	
              DEFERRED
                RETIREMENT BENEFIT.

            	
              26

            
	
              6.4

            	
              DISABILITY
                RETIREMENT BENEFIT.

            	
              28

            
	
              6.5

            	
              SPOUSE’S
                BENEFIT.

            	
              28

            
	
              6.6

            	
              BENEFITS
                FOR TERMINATED VESTED EMPLOYEES.

            	
              29

            
	
              6.7

            	
              REDUCTION
                FOR OTHER BENEFITS.

            	
              29

            
	
              6.8

            	
              COST
                OF LIVING ADJUSTMENT.

            	
              30

            
	
              6.9

            	
              DEATH
                BENEFIT.

            	
              30

            
	 	 
	
              ARTICLE
                VII TIMING AND FORM OF BENEFIT PAYMENTS

            	
              30

            
	 	 	 
	
              7.1

            	
              COMMENCEMENT
                OF BENEFITS.

            	
              30

            
	
              7.2

            	
              NORMAL
                FORM.

            	
              31

            
	
              7.3

            	
              WAIVER
                OF NORMAL FORM.

            	
              32

            
	
              7.4

            	
              TIMING
                OF ELECTION AND SPOUSAL CONSENT.

            	
              32

            
	
              7.5

            	
              NOTICE
                REQUIREMENTS.

            	
              33

            
	
              7.6

            	
              SPECIAL
                RULES FOR DEATH OF PARTICIPANT OR BENEFICIARY.

            	
              34

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              7.7

            	
              OPTIONAL
                FORMS OF PAYMENT.

            	
              35

            
	
              7.8

            	
              ANNUITY
                FORM OF PAYMENT.

            	
              38

            
	
              7.9

            	
              MANDATORY
                LUMP SUM DISTRIBUTION OF SMALL BENEFITS.

            	
              39

            
	
              7.10

            	
              MINIMUM
                DISTRIBUTIONS REQUIRED UNDER CODE SECTION
                401(A)(9).

            	
              39

            
	
              7.11

            	
              EARLY
                COMMENCEMENT ELECTION.

            	
              41

            
	
              7.12

            	
              SUSPENSION
                OF BENEFITS.

            	
              41

            
	
              7.13

            	
              ELIGIBLE
                ROLLOVER DISTRIBUTIONS.

            	
              42

            
	 	 
	
              ARTICLE
                VIII MEDICAL BENEFITS

            	
              43

            
	 	 	 
	
              8.1

            	
              ELIGIBILITY.

            	
              43

            
	
              8.2

            	
              MEDICAL
                BENEFITS.

            	
              44

            
	
              8.3

            	
              SEPARATE
                MEDICAL BENEFITS ACCOUNT.

            	
              44

            
	
              8.4

            	
              LIMITATION
                ON CONTRIBUTIONS.

            	
              44

            
	
              8.5

            	
              SATISFACTION
                OF LIABILITIES.

            	
              45

            
	
              8.6

            	
              FORFEITURE
                OF BENEFITS.

            	
              45

            
	 	 
	
              ARTICLE
                IX FUNDING

            	
              45

            
	 	 	 
	
              9.1

            	
              PLAN
                ASSETS.

            	
              45

            
	
              9.2

            	
              TRUST
                AGREEMENT.

            	
              45

            
	
              9.3

            	
              INSURANCE
                ARRANGEMENTS.

            	
              45

            
	
              9.4

            	
              CONTRIBUTIONS.

            	
              45

            
	
              9.5

            	
              EXCLUSIVE
                BENEFIT.

            	
              45

            
	
              9.6

            	
              RETURN
                OF CONTRIBUTIONS.

            	
              46

            
	
              9.7

            	
              PROHIBITION
                AGAINST ASSIGNMENT OR ALIENATION OF BENEFITS.

            	
              46

            
	 	 
	
              ARTICLE
                X FIDUCIARY RESPONSIBILITIES AND PLAN
                ADMINISTRATION

            	
              47

            
	 	 	 
	
              10.1

            	
              ALLOCATION
                OF FIDUCIARY RESPONSIBILITIES.

            	
              47

            
	
              10.2

            	
              COMMITTEE.

            	
              47

            
	
              10.3

            	
              DUTIES
                AND RESPONSIBILITIES OF FIDUCIARIES.

            	
              47

            
	
              10.4

            	
              PLAN
                ADMINISTRATOR.

            	
              47

            
	
              10.5

            	
              COMMITTEE
                RELIANCE ON PROFESSIONAL ADVICE.

            	
              48

            
	
              10.6

            	
              PLAN
                ADMINISTRATION EXPENSES.

            	
              48

            
	
              10.7

            	
              RESPONSIBILITIES
                OF TRUSTEE.

            	
              48

            
	
              10.8

            	
              INVESTMENT
                MANAGEMENT BY TRUSTEE.

            	
              48

            
	
              10.9

            	
              ALLOCATION
                OF INVESTMENT MANAGEMENT RESPONSIBILITIES.

            	
              48

            
	
              10.10

            	
              APPOINTMENT
                AND REMOVAL OF INVESTMENT MANAGERS.

            	
              49

            
	
              10.11

            	
              ASCERTAINMENT
                OF PLAN FINANCIAL NEEDS.

            	
              49

            
	
              10.12

            	
              BENEFIT
                CLAIM PROCEDURE.

            	
              49

            
	
              10.13

            	
              QDRO
                PROCEDURES.

            	
              50

            
	
              10.14

            	
              SERVICE
                IN MULTIPLE FIDUCIARY CAPACITIES.

            	
              50

            
	 	 
	
              ARTICLE
                XI CO-SPONSORSHIP OF PLAN AND MERGERS WITH OTHER
                PLANS

            	
              51

            
	 	 	 
	
              11.1

            	
              CO-SPONSORSHIP
                OF PLAN BY AFFILIATES.

            	
              51

            
	
              11.2

            	
              CO-SPONSORSHIP
                OF PLAN BY ADOPTING ENTITIES.

            	
              51

            
	
              11.3

            	
              MERGER
                WITH PLAN OF AFFILIATE.

            	
              51

            
	 	 
	
              ARTICLE
                XII DURATION AND AMENDMENT

            	
              52

            
	 	 	 
	
              12.1

            	
              RESERVATION
                OF RIGHT TO SUSPEND OR TERMINATE PLAN.

            	
              52

            
	
              12.2

            	
              RESERVATION
                OF RIGHT TO AMEND PLAN.

            	
              52

            
	
              12.3

            	
              TRANSACTIONS
                SUBJECT TO CODE SECTION 414(1).

            	
              53

            
	
               

            	 
	
              ARTICLE
                XIII DISTRIBUTION UPON PLAN TERMINATION

            	
              53

            
	 	 	 
	
              13.1

            	
              VESTING
                ON PLAN TERMINATION.

            	
              53

            
	
              13.2

            	
              ALLOCATION
                OF ASSETS ON PLAN TERMINATION.

            	
              53

            
	
              13.3

            	
              PROVISION
                FOR BENEFITS AFTER PLAN TERMINATION.

            	
              54

            
	
              13.4

            	
              COMPUTATION
                OF BENEFITS AFTER PLAN TERMINATION.

            	
              54

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    

    
      	
              13.5

            	
              CONTINUED
                EMPLOYMENT NOT REQUIRED AFTER PLAN TERMINATION.

            	
              54

            
	
              13.6

            	
              DATA
                IN COMPANY RECORDS ON PLAN TERMINATION.

            	
              55

            
	
              13.7

            	
              SATISFACTION
                OF LIABILITIES ON PLAN TERMINATION.

            	
              55

            
	
              13.8

            	
              HIGH-25
                DISTRIBUTION RESTRICTIONS.

            	
              55

            
	 	 
	
              ARTICLE
                XIV INTERCHANGE OF BENEFIT OBLIGATIONS

            	
              56

            
	 	 	 
	
              14.1

            	
              INTERCHANGE
                AGREEMENT PERMITTED.

            	
              56

            
	 	 
	
              ARTICLE
                XV GENERAL PROVISIONS

            	
              56

            
	 	 	 
	
              15.1

            	
              NO
                EMPLOYMENT RIGHTS CONFERRED.

            	
              56

            
	
              15.2

            	
              INTEGRATION
                CLAUSE.

            	
              57

            
	
              15.3

            	
              INCAPACITY
                OF RECIPIENT.

            	
              57

            
	
              15.4

            	
              ERISA
                FIDUCIARY DUTIES.

            	
              57

            
	
              15.5

            	
              COMPLIANCE
                WITH STATE AND LOCAL LAW.

            	
              57

            
	
              15.6

            	
              USAGE.

            	
              57

            
	
              15.7

            	
              TITLES
                AND HEADINGS.

            	
              57

            
	
              15.8

            	
              SEVERABILITY
                CLAUSE.

            	
              57

            
	
              15.9

            	
              USERRA
                - MILITARY SERVICE CREDIT.

            	
              57

            
	 	 
	
              ARTICLE
                XVI TOP-HEAVY REQUIREMENTS

            	
              58

            
	 	 	 
	
              16.1

            	
              IN
                GENERAL.

            	
              58

            
	
              16.2

            	
              DEFINITIONS

            	
              58

            
	
              16.3

            	
              DETERMINATION
                OF TOP-HEAVY RATIO.

            	
              59

            
	
              16.4

            	
              TOP-HEAVY
                MINIMUM BENEFITS.

            	
              61

            
	
              16.5

            	
              TERMINATION
                OF TOP-HEAVY STATUS.

            	
              63

            
	
              16.6

            	
              INTERPRETATION.

            	
              63

            

    

    

    SCHEDULE
      6.1(a)(3) 

    SCHEDULE
      6.1(a)(4)

    SCHEDULE
      6.1(a)(5)

    SCHEDULE
      6.1(f)-1

    SCHEDULE
      6.1(f)-2

    SCHEDULE
      6.1(f)-3

    SCHEDULE
      6.1(f)-4

    SCHEDULE
      11.1

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

    EFFECTIVE
      DATE AND APPLICATION 

     

    1.1    Effective
      Date.
      The
      effective date of this Amendment and Restatement of the Plan shall be December
      31, 2006, except as otherwise indicated in specific Sections
      hereof.

     

    1.2    Qualification.
      It is
      the intention of the Company that the Plan shall satisfy the requirements of
      ERISA, that the Plan shall be qualified under Section 401(a) of the Code, and
      that the Trust established under the Plan shall be exempt from taxation under
      Section 501(a) of the Code. If the Commissioner of Internal Revenue determines
      that the Plan as restated does not qualify under Section 401(a) of the Code,
      the
      Plan may be retroactively amended to so qualify.

     

    1.3    Sponsoring
      and Adopting Employers.
      The
      Company is the adopting sponsor of the Plan. Any Affiliate or Adopting Entity
      approved by the Company may also adopt the Plan, by a statement in writing,
      signed by the Affiliate or Adopting Entity and approved by the Company. The
      statement shall include the effective date of adoption of the Plan by the
      adopting Affiliate or Adopting Entity and may include any special provisions
      applicable only to employees of such adopting Affiliate or Adopting
      Entity.

     

    1.4    Incorporation
      of Trust Agreement.
      The
      Trust Agreement(s) established under the Plan shall be incorporated into, and
      made a part of, the Plan in accordance with Section 9.2. 

     

    ARTICLE
      II

    DEFINITIONS 

     

    The
      following terms, when used with an initial capital letter in this Plan, shall
      have the following meanings unless the context clearly requires a different
      meaning. 

     

    2.1    Accrued
      Benefit
      means,
      for any Participant as of any determination date, the amount of monthly
      retirement income (whether or not vested) that would be payable to the
      Participant as a Single Life Annuity at his Normal Retirement Date in accordance
      with the provisions of Section 6.1, based on the Participant’s Credited Service
      and Final Average Pay as of the date of determination. Σ
      #
      Ω

     

    2.2    Actuarial
      Equivalency
      or
Actuarial
      Equivalent
      means a
      benefit under which the present value of the expected payments is equal to
      the
      present value of the expected benefit otherwise payable under the Plan,
      determined on the basis of the following mortality and interest
      assumptions:

     

    
      	 	
              Mortality:
                

            	
              UP
                - 1984 Morality Table

            

    

    
      	 	
              Interest
                Rate: 

            	
              8%
                per annum

            

    

     

    For
      all
      such determinations to be made on or after January 1, 2007 with respect to
      both
      pre-2007 and post-2006 benefit accruals, use the following mortality and
      interest assumptions:

     

    Participant
      mortality: RP2000 Combined Healthy Mortality projected to 2010 using Projection
      Scale AA, using blend of 70% male rates and 30% female rates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Beneficiary
      mortality: RP2000 Combined Healthy Mortality projected to 2010 using Projection
      Scale AA, using blend of 30% male rates and 70% female rates.

     

    Interest
      rate: 8% per annum

     

    Notwithstanding
      the foregoing, for determinations of lump sum amounts and for purposes of
      Section 7.7(e), interest shall be the annual rate of interest on 30 year
      Treasury securities for the September preceding the year in which the lump
      sum
      amount is paid and mortality shall be as provided in the mortality table
      prescribed by the Commissioner of Internal Revenue under Section
      417(e)(3)(A)(ii)(I) of the Internal Revenue Code.

     

    For
      valuing benefits accrued on or before December 31, 1987, the Consumer Price
      Index shall be assumed to increase at least two percent (2%) per
      annum.

     

    When
      the
      term Actuarial
      Value
      is used
      herein, it shall mean the present value of a benefit computed using the factors
      and assumptions provided in this Section 2.2.

     

    If
      the
      actuarial factors for determining equivalent benefits are changed by Plan
      amendment, the benefit actually paid in any form shall not be less than the
      amount determined for the same form by applying the prior factors to the
      Participant’s Accrued Benefits as of the date the change is adopted or is
      effective, whichever is later.

     

    Notwithstanding
      any other Plan provision to the contrary, effective for distributions with
      annuity starting dates on or after January 1, 2003, the applicable mortality
      table used for purposes of adjusting any benefit or limitation under Code
      Section 415(b)(2)(B), (C), or (D) set forth in this Plan and the applicable
      mortality table used for purposes of satisfying the requirements of Code Section
      417(e) set forth in this Plan is the table prescribed in IRS Revenue Ruling
      2001-62. Ω

     

    2.3    Adopting
      Entity
      means an
      entity that, with approval of the Company, adopts this Plan for the benefit
      of
      its eligible employees.

     

    2.4    Affiliate
      means:

     

    
      	 	
              (a)

            	
              any
                corporation that is a member of a controlled group of corporations
                (as
                defined in Section 1563(a) of the Code, without regard to Sections
                1563(a)
                (4) and 1563(e)(3)(C) of the Code) with the
                Company;

            

    

     

    
      	 	
              (b)

            	
              any
                unincorporated business under common control with the Company, as
                determined under Section 414(c) of the Code and, to the extent not
                inconsistent therewith, under such rules as may be adopted by the
                Board;

            

    

     

    
      	 	
              (c)

            	
              a
                member of any affiliated service group that includes the Company,
                as
                determined under Section 414(m) of the Code;
                or

            

    

     

    
      	 	
              (d)

            	
              except
                to the extent otherwise provided in Treasury Regulations, a leasing
                organization with respect to the periods of service performed by
                any
                individual who is a leased employee (within the meaning of Section
                414(n)
                of the Code) with respect to an Affiliate (determined without regard
                to
                this paragraph (e)) or any related person (within the meaning of
                Section
                144(a)(3) of the Code).

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    A
      corporation, unincorporated business, or other organization shall qualify as
      an
      Affiliate only with respect to the period during which it satisfies one or
      more
      of the applicable descriptions in paragraphs (a) through (d), above. Except
      as
      otherwise specifically provided in the Plan, the employment of an individual
      with an Affiliate for purposes of the Plan shall not include any period with
      respect to which the corporation, unincorporated business, or other organization
      constituting the Affiliate fails to satisfy one or more of the applicable
      descriptions in paragraphs (a) through (d), above, and an individual’s
      employment with an Affiliate shall be considered terminated for purposes of
      the
      Plan no later than the date on which the corporation, unincorporated business,
      or other organization constituting the Affiliate ceases to satisfy any of the
      applicable descriptions in paragraphs (a) through (d), above. Paragraphs (c)
      and
      (d), above, shall apply solely for purposes of determining an individual’s
      Eligibility Service and Vesting Service, and shall not apply for any other
      purpose under the Plan, including, without limitation, for purposes of
      determining his Credited Service.

     

    2.5    Alternative
      Joint and Survivor Annuity
      means an
      optional form of benefit payment provided under Section 7.7(a), which may be
      elected by a Participant (with Spousal consent) pursuant to Section
      7.3.

     

    2.6    Annuity
      Starting Date
      has the
      same meaning as in Code Section 417(f), i.e., the first day of the first period
      for which an amount is payable as an annuity or, in the case of a benefit not
      payable in the form of an annuity, the first day on which all events have
      occurred which entitle the Participant to payment of such benefit.

     

    2.7    Beneficiary
      means
      any individual designated by a Participant or former Participant to receive
      a
      benefit under the Plan after the death of the Participant or former
      Participant.

     

    2.8    Benefit
      Computation Period
      means
      the period determined under Section 4.3(a).

     

    2.9    Board
      means
      the Board of Directors of the Company, the executive committee of the Board,
      and
      any other committee of the Board authorized to act on its behalf.

     

    2.10  
        Break
      in Service
      means a
      Computation Period in which an Employee fails to complete more than five hundred
      (500) Hours of Service with the Employer. Ω

     

    2.11  
        Code
      means
      the Internal Revenue Code of 1986, as amended.

     

    2.12  
        Committee
      means
      the CenturyTel Retirement Committee, also known as the CenturyTel, Inc.
      Retirement Committee, which is the committee appointed by the Board or the
      Compensation Committee of the Board to administer the Plan pursuant to Article
      X.

     

    2.13  
        Company
      means
      CenturyTel, Inc.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.14  
        Compensation
      means
      the sum of (a) and (b), as adjusted under (c), (d), and (e) and after applying
      the provisions of (f) as determined on the basis of the amounts actually paid
      to
      or for the benefit of a Participant during a calendar month while actively
      employed:

     

    
      	 	
              (a)

            	
              All
                nondeferred compensation reportable on Form W-2 except the
                following:

            

    

     

    
      	 	
              (1)

            	
              overtime
                or premium pay.

            

    

     

    
      	 	
              (2)

            	
              Imputed
                income from expense reimbursements or fringe
                benefits.

            

    

     

    
      	 	
              (3)

            	
              Prizes
                and awards (such as employee recognition awards and safety
                awards).

            

    

     

    
      	 	
              (4)

            	
              Payment
                for termination of employment (such as retirement bonuses, disability
                benefits and severance pay).

            

    

     

    
      	 	
              (5)

            	
              Long-term
                incentive compensation (such as stock options, restricted stock and
                stock
                appreciation rights).

            

    

     

    
      	 	
              (b)

            	
              Salary
                reduction amounts elected by the Participant under a qualified cash
                or
                deferred arrangement or a cafeteria
                plan.

            

    

     

    
      	 	
              (c)

            	
              During
                periods of reduced compensation because of such causes as illness,
                disability or leave of absence, compensation shall be figured at
                the last
                regular rate before the start of the
                period.

            

    

     

    
      	 	
              (d)

            	
              For
                Plan Years beginning prior to December 31, 2001, the maximum amount
                of
                annual compensation taken into account for any year for a Participant
                shall be $150,000 plus any cost-of-living adjustment authorized for
                the
                year by applicable regulations. For the Plan Years beginning before
                January 1, 1997, for purposes of this limit, the following shall
                apply to
                any Participant who is a highly compensated employee (as defined
                in
                Internal Revenue Code Section 414(q) and related Treasury Regulations)
                and
                is either a five percent owner or one of the 10 highest paid
                employees:

            

    

     

    
      	 	
              (1)

            	
              The
                Participant’s compensation shall be aggregated with any compensation paid
                by the Employer to the Participant’s spouse and to the Participant’s
                lineal descendants under age 19.

            

    

     

    
      	 	
              (2)

            	
              If
                the $150,000 limit is exceeded in the aggregate, pay counted for
                each
                aggregated employee shall be reduced pro rata to stay within the
                limit.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    For
      Plan
      Years beginning after December 31, 2001, the annual compensation of each
      Participant taken into account in determining allocations for any Plan Year
      beginning after December 31, 2001, shall not exceed $200,000 as adjusted for
      cost-of-living increases in accordance with Code Section 401(a)(17)(B) (for
      2007, the limit is $225,000). Annual compensation means compensation during
      the
      Plan Year or such other consecutive 12-month period over which compensation
      is
      otherwise determined under the Plan (the determination period). The
      cost-of-living adjustment in effect for a calendar year applies to annual
      compensation for the determination period that begins with or within such
      calendar year.

     

    
      	 	
              (e)

            	
              The
                reduction in the maximum compensation under (d) shall be made by
                providing
                a Participant with the greater of the following (formula with extended
                wear-away):

            

    

     

    
      	 	
              (1)

            	
              The
                Participant’s benefit accrued under the Plan as of December 31, 1993 based
                on compensation up to the maximum permitted amount of compensation
                in each
                earlier year, plus the benefit accrued on the basis of service after
                that
                date and on compensation at the reduced
                level.

            

    

     

    
      	 	
              (2)

            	
              The
                Participant’s benefit accrued on the basis of service before and after
                December 31, 1993 and on compensation at the reduced
                level.

            

    

     

    
      	 	
              (f)

            	
              For
                purposes of the definition of compensation contained in this Section
                2.14,
                and Sections 5.7 and 16.2(c) of the Plan, compensation paid or made
                available during such years shall include elective amounts that are
                not
                includable in the gross income of the Employee by reason of Code
                Sections
                125 or 132(f).

            

    

     

    2.15  
        Computation
      Period
      means an
      Eligibility Computation Period, Vesting Computation Period or Benefit
      Computation Period, as is appropriate in the context in which used. Years of
      Service and Breaks in Service will be measured on the same Computation Period
      (Eligibility, Vesting or Benefit, as applicable).

     

    2.16  
        Constituent
      Plans
      means
      the Hourly Plan, the Salaried Plan, and the Ohio Plan.

     

    2.17  
        Credited
      Service
      means
      the number of Years of Credited Service credited to a Participant for benefit
      accrual purposes pursuant to Section 4.3.

     

    2.18  
        Disability
      or Disabled
      means
      the total disability of an Employee as evidenced by the Employee’s inability to
      engage in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment that can be expected to result in
      death or to last for a continuous period of at least twelve (12) months. An
      Employee shall only be considered disabled after proof of such disability
      satisfactory to the Employer is furnished (which proof shall include a
      determination of approval for Social Security disability benefits or, if such
      is
      not available, a written statement of a licensed physician appointed or approved
      by the Employer).

     

    2.19  
        Early
      Retirement Date
      means
      any date prior to his Normal Retirement Date on which an Employee actually
      retires or is retired pursuant to Section 5.2.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.20  
        Eligibility
      Computation Period
      means
      the period determined under Section 4.1(a).

     

    2.21  
        Eligible
      Employee
      means an
      Employee described in Section 3.1.

     

    2.22  
        Employee
      means
      any person regularly employed by the Employer, including employees of any other
      employer required to be aggregated with the Employer under Section 414(b),
      (c),
      (m) or (o) of the Code. The term Employee shall not include any leased employee
      deemed to be an employee of the Employer as provided in Sections 414(n) or
      (o)
      of the Code, any owner-employee, as defined in Code Section 401(c)(3), or any
      self-employed individual, as defined in Code Section 401(c)(1).

     

    The
      term
      Employee shall not include an individual who is retained by the Employer
      pursuant to a contract or agreement that specifies that the individual is not
      eligible to participate in the Plan, an individual whose basic compensation
      for
      services rendered is not paid by or on behalf of the Employer, or an individual
      who is not classified as a common-law employee by the Employer, regardless
      of
      any subsequent reclassification of such individual as a “common-law employee” of
      the Employer by the Employer, any governmental agency, or any court.
Σ
      #
      Ω

     

    2.23  
        Employer
      means
      the Company, any Affiliate that has adopted the Plan, and any Adopting Entity.
      This Plan is a single plan maintained by multiple employers in which all of
      the
      Plan assets are available to pay benefits for all Participants in the Plan.
      Ω

     

    2.24  
        ERISA
      means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    2.25  
        Final
      Average Pay
      means,
      effective January 1, 2007, the Participant’s average Monthly Compensation
      over the sixty (60) consecutive full calendar months of highest Monthly
      Compensation in the last one hundred twenty (120) full calendar months of
      employment with the Employer. Months separated by a period when the Employee
      is
      not in such employment shall be treated as consecutive. If an Employee has
      fewer
      than sixty (60) months of compensation, all months shall be used.
      Notwithstanding the above, the month in which a Participant is hired and the
      month in which a Participant terminates shall be counted as a full calendar
      month for purposes of computing the last 120 full calendar months, and, if
      either of such months is or both of such months are among the 60 consecutive
      months of highest Monthly Compensation, such month or months shall be counted
      among the 60 consecutive full calendar months. For purposes of computing Final
      Average Pay, Compensation for Employees of CenturyTel, Inc., any Affiliate
      or
      any Adopting Entity (not including former employees of Pacific Telecom, Inc.
      who
      became employees of CenturyTel, Inc. or an Affiliate thereof as of the date
      of
      acquisition of Pacific Telecom, Inc. by CenturyTel, Inc. or an Affiliate
      thereof) shall only be counted beginning with the 1999 Plan Year. Final Average
      Pay (formerly known as Final Average Compensation) prior to January 1, 2007
      is defined in previous Plan documents.

     

    2.26  
        Hour
      of Service
      means:

     

    
      	 	
              (a)

            	
              Each
                hour for which an Employee is compensated by the Employer, or is
                entitled
                to be so compensated, for service rendered by him to the Employer.
                These
                hours will be credited to the Employee for the computation period
                in which
                the duties are performed.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Each
                hour for which an Employee is compensated by the Employer, or is
                entitled
                to be so compensated, on account of a period of time during which
                no
                services are rendered by him to the Employer (irrespective of whether
                the
                employment relationship has terminated) due to vacation, holiday,
                illness,
                incapacity (including disability), layoff, jury duty, military duty
                or
                leave of absence. No more than five hundred and one (501) Hours of
                Service
                shall be credited pursuant to this subparagraph (b) on account of
                any
                single continuous period during which an Employee renders no services
                to
                the Employer (whether or not such period occurs in a single computation
                period). Hours under this paragraph will be calculated and credited
                pursuant to Section 2530.200b-2 of the Department of Labor Regulations,
                which are incorporated herein by this
                reference.

            

    

     

    
      	 	
              (c)

            	
              Each
                hour for which back pay, without regard to mitigation of damages,
                has been
                awarded or agreed to by the Employer. The same Hours of Service shall
                not
                be credited both under subparagraph (a) or subparagraph (b), whichever
                shall be applicable, and also under this subparagraph (c). The hours
                will
                be credited to the Employee for the computation period or periods
                to which
                the award or agreement pertains rather than the computation period
                in
                which the payment is made.

            

    

     

    An
      Employee whose compensation is not determined on an hourly basis or for whom
      hourly employment records are not maintained shall be credited with forty-five
      (45) Hours of Service per week.

     

    Hours
      of
      Service will be credited for eligibility, participation and vesting purposes
      for
      employment with other members of an affiliated service group (under Section
      414(m) of the Code), a controlled group of corporations (under Section 414(b)
      of
      the Code), or a group of trades or businesses under common control (under
      Section 414(c) of the Code), of which the Employer is a member, and any other
      entity required to be aggregated with the Employer pursuant to Section 414(o)
      of
      the Code and the regulations thereunder. Hours of Service for purposes of
      determining Years of Credited Service shall only include Hours of Service with
      the Employer. Hours of Service will be credited for eligibility, participation
      and vesting purposes for periods during which an Eligible Employee is on Layoff
      or a Leave of Absence. Hours of Service will also be credited for any individual
      considered an Employee under Section 414(n) or (o) of the Code, and regulations
      thereunder. 

     

    Solely
      for purposes of determining whether a Break in Service for participation and
      vesting purposes has occurred in a computation period, an individual who is
      absent from work for maternity or paternity reasons shall receive credit for
      the
      Hours of Service that would otherwise have been credited to such individual
      but
      for such absence, or in any case in which such hours cannot be determined,
      eight
      (8) Hours of Service per day of such absence. For purposes of this paragraph,
      an
      absence from work for maternity or paternity reasons means an absence (i) by
      reason of the pregnancy of the individual, (ii) by reason of a birth of a child
      of the individual, (iii) by reason of the placement of a child with the
      individual in connection with the adoption of such child by such individual,
      or
      (iv) for purpose of caring for such child for a period beginning immediately
      following such birth or placement. The Hours of Service credited under this
      paragraph shall be credited only (i) in the computation period in which the
      absence begins if the crediting is necessary to prevent a Break in Service
      in
      that period, or (ii) in all other cases, in the following computation period.
      Σ

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    2.27  
        Hourly
      Plan
      means
      the CenturyTel, Inc. Plan for Hourly-Paid Employees’ Pensions, which was merged
      into the Plan effective December 31, 2006. Special provisions set forth in
      Schedule 6.1(f)-3 govern the accrued benefits as of December 31, 2006 of
      Nonrepresented Participants (as defined in such Schedule) who were active
      Participants in the Hourly Plan on or before December 31, 2006, and all benefits
      of Represented Participants (as defined in such Schedule) who were active
      Participants in or who will become Participants in the Hourly Portion of the
      Plan on January 1, 2007 and new Represented Participants in the Hourly Plan
      portion of the Plan. Where a Section of the Plan is superceded by a provision
      in
      the Hourly Plan portion of the Plan, the #
      symbol
      will be present at the end of such section of the Plan. The provisions of the
      Plan shall not increase or duplicate benefits provided by the Hourly Plan
      portion of the Plan. 

     

    2.28  
        Layoff
      means
      the termination of employment due to the reduction of the Employer’s work force.
      An Employee shall continue as laid off until (i) the Employee retires, dies
      or
      resumes employment at the request of the Employer, (ii) the Employer notifies
      the Employee that employment has been terminated, (iii) the Employee elects
      to
      terminate employment, or the employee fails to return to work when recalled,
      or
      (iv) twelve (12) months have elapsed since the date of the Layoff. Termination
      of a Layoff under (ii), (iii) or (iv) above, shall be effective as of the date
      of the Layoff.

     

    2.29  
        Leave
      of Absence
      means
      (i) a leave authorized by the Employer if the Employee returns within the time
      prescribed by the Employer and otherwise fulfills all the conditions of the
      leave imposed by the Employer, (ii) absence because of Disability, or (iii)
      periods of military service if the Employee returns with employment rights
      protected by law. If a person on Leave of Absence fails to meet the conditions
      of the leave or fails to return to work when required, employment shall
      terminate and termination of the Leave of Absence shall be effective as of
      the
      date the leave began unless the failure is due to death or retirement. In
      authorizing Leaves of Absence, the Employer shall treat all Employees similarly
      situated alike as much as possible. 

     

    2.30  
        LTD
      Plan
      means
      the CenturyTel, Inc. Long-Term Disability Plan. 

     

    2.31  
        Monthly
      Compensation
      means
      the actual Compensation paid to or for the benefit of a Participant during
      a
      calendar month. Σ
      #

     

    2.32  
        Normal
      Form
      means
      the form of benefit payable to a Participant pursuant to Section 7.2 of this
      Plan.

     

    2.33  
        Normal
      Retirement Age
      means
      age sixty-five (65). Σ
      #

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    2.34  
        Normal
      Retirement Date
      means
      the first day of the calendar month coinciding with or following the date the
      Participant attains Normal Retirement Age.

     

    2.35  
        Ohio
      Plan
      means
      the CenturyTel, Inc. Pension Plan for Bargaining Unit Employees, which was
      merged into the Plan effective December 31, 2006. Special provisions within
      Schedule 6.1(f)-4 apply to any Participants who were active Participants in
      the
      Ohio Plan on or before December 31, 2006 who become Participants in the Plan
      on
      or after January 1, 2007 and to continuing Participants and new Participants
      in
      the Ohio Plan portion of the Plan. Where a section of the Plan is superceded
      by
      a provision in the Ohio Plan portion of the Plan, the Ω
      symbol
      will be present at the end of such section of the Plan. The provisions of the
      Plan shall not increase or duplicate benefits provided by the Ohio Plan Portion
      of the Plan.

     

    2.36  
        Participant
      means an
      Employee participating in the Plan in accordance with the provisions of Article
      III. #

     

    2.37  
        Plan
      means
      the CenturyTel Retirement Plan.

     

    2.38  
        Plan
      Administrator
      means
      the Committee.

     

    2.39  
        Plan
      Year
      means
      the calendar year, except that the first Plan Year with respect to each Employer
      shall mean the period from the Effective Date with respect to such Employer
      to
      December 31 of such year.

     

    2.40  
        Prior
      Plan
      means
      the Pacific Telecom Retirement Plan. Σ
      #
      Ω

     

    2.41  
        Qualified
      Domestic Relations Order or QDRO
      means a
“qualified domestic relations order” within the meaning of ERISA Section
      206(d).

     

    2.42  
        Qualified
      Joint and Survivor Annuity or QJSA
      means,
      for any Participant who has a Spouse at his retirement date, an annuity payable
      monthly for the lifetime of the Participant and a survivor annuity payable
      monthly to the Spouse (if living) upon the Participant’s death that is
      fifty-percent (50%) of the amount of the annuity payable during the lifetime
      of
      the Participant.

     

    2.43  
        Required
      Beginning Date
      means

     

    
      	 	
              (a)

            	
              General
                Rule.
                The required beginning date of a Participant is the later of the
                April 1
                of the calendar year following the calendar year in which the Participant
                attains age 70 1⁄2 or retires except that benefit distributions to a
                5-percent owner must commence by the April 1 of the calendar year
                following the calendar year in which the Participant attains age
                70
                1⁄2.

            

    

     

    
      	 	
              (b)

            	
              Deferral
                or Cessation of Distributions.

            

    

     

    
      	 	
              (1)

            	
              Any
                Participant attaining age 70 1⁄2 in years after 1995 may elect by April 1 of
                the calendar year following the year in which the Participant attained
                age
                70 1⁄2 (or by December 31, 1997 in the case of a Participant attaining age
                70 1⁄2 in 1996) to defer distributions until the calendar year following
                the
                calendar year in which the Participant retires. If no such election
                is
                made the Participant will begin receiving distributions by the April
                1 of
                the calendar year following the year in which the Participant attained
                age
                70 1⁄2 (or by December 31, 1997 in the case of a Participant attaining age
                70 1⁄2 in 1996).

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              Any
                Participant attaining age 70 1⁄2 in years prior to 1997 may elect to stop
                distributions and recommence by the April 1 of the calendar year
                following
                the year in which the Participant retires. There will be a new annuity
                starting date upon recommencement. 

            

    

     

    
      	 	
              (c)

            	
              5-Percent
                Owner.
                A
                Participant is treated as a 5-percent owner for purposes of this
                Section
                if such Participant is a 5-percent owner as defined in Section 416
                of the
                Code at any time during the Plan Year ending with or within the calendar
                year in which such owner attains age 70
1⁄2.

            

    

     

    
      	 	
              (d)

            	
              Distributions
                Begun.
                Once distributions have begun to a 5-percent owner under this Section,
                they must continue to be distributed, even if the Participant ceases
                to be
                a 5-percent owner in a subsequent
                year.

            

    

     

    2.44  
        Salaried
      Plan
      means
      the CenturyTel, Inc. Plan for Salaried Employees’ Pensions, which was merged
      into the Plan effective December 31, 2006. Special provisions set forth in
      Schedule 6.1(f)-2 govern the accrued benefits of Participants who were active
      Participants in the Salaried Plan (as defined in such Schedules) on or before
      December 31, 2006 and apply only to those benefits that were accrued under
      the
      Salaried Plan as of December 31, 2006. Where a section of the Plan is superceded
      by a provision in the Salaried Plan portion of the Plan, the Σ
      symbol
      will be present at the end of such section of the Plan. The provisions of the
      Plan shall not increase or duplicate benefits provided by the Salaried Plan
      portion of the Plan.

     

    2.45  
        Single
      Life Annuity
      means an
      annuity payable monthly in equal installments for the life of a Participant,
      which terminates upon the death of the Participant and does not provide any
      survivor benefits.

     

    2.46  
        Social
      Security Covered Compensation
      means
      the covered compensation amount for a person with the Participant’s Social
      Security retirement age, as determined in accordance with applicable
      regulations. The Committee may, in its discretion, use a table of Social
      Security Covered Compensation published by the Internal Revenue Service with
      rounded amounts.

     

    2.47  
        Spouse
      means
      any individual who is the opposite sex of the Participant and who is legally
      married to a Participant as of any applicable date, provided that a former
      spouse shall be treated as the spouse of a Participant to the extent provided
      under a QDRO.

     

    2.48     Trust
      Agreement
      means
      the Trust Agreement between CenturyTel, Inc. and Prudential Bank & Trust
      FSB, as from time to time amended and in effect, and any other or additional
      trust agreement under the Plan, so designated for such purpose by the Board,
      between the Company, any adopting Affiliate, or Adopting Entity, and any Trustee
      at any time acting thereunder. All of the assets held in the Trust created
      in
      the Trust Agreement shall be available to pay all benefits under the
      Plan.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    2.49  
        Trustee
      means
      the trustee under a Trust Agreement.

     

    2.50  
        Vesting
      Computation Period
      means
      the period determined under Section 4.2(a).

     

    2.51  
        Year
      of Credited Service
      means a
      Benefit Computation Period in which an Employee meets the requirements of
      Section 4.3(b) and is credited with a Year of Credited Service
      thereunder.

     

    2.52  
        Year
      of Eligibility Service
      means an
      Eligibility Computation Period in which an Employee meets the requirements
      of
      Section 4.1(b) and is credited with a Year of Eligibility Service
      thereunder.

     

    2.53  
        Year
      of Service
      means a
      Plan Year in which an Employee completes one thousand (1000) or more Hours
      of
      Service (whether or not continuous) with the Company or an Adopting Entity.
      Ω

     

    2.54  
        Year
      of Vesting Service
      means a
      Vesting Computation Period in which an Employee meets the requirements of
      Section 4.2(b) and is credited with a Year of Vesting Service thereunder.

     

    ARTICLE
      III

    ELIGIBILITY
      AND PARTICIPATION 

     

    3.1    Eligible
      Employees.
      Effective January 1, 2007, any Employee of an Employer shall be eligible to
      participate in the Plan, except for the following: 

     

    
      	 	
              (a)

            	
              Any
                Employee covered by a collective bargaining agreement that does not
                provide for participation in this
                Plan.

            

    

     

    
      	 	
              (b)

            	
              A
                leased employee treated as an employee for pension purposes solely
                because
                of Code Section 414(n).

            

    

     

    
      	 	
              (c)

            	
              A
                “casual employee” as categorized in the Employer’s personnel policies,
                generally including workers who are on call, have no regular established
                work week and no fixed days or hours of
                work.

            

    

     

    
      	 	
              (d)

            	
              A
                temporary employee hired specifically to fill temporary or occasional
                needs.

            

    

     

    
      	 	
              (e)

            	
              An
                employee of CenturyTel, Inc. or an Affiliate who was on disability
                under
                the LTD Plan as of January 1, 1999, until such time as the employee
                returns to active employment.

            

    

     

    
      	 	
              (f)

            	
              An
                employee of an Affiliate or other entity that is not an adopting
                Affiliate
                or an Adopting Entity.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	 	
              (g)

            	
              Employees
                of the following Affiliates:

            

    

     

    
      	 	
              (1)

            	
              Century
                Marketing Solutions, LLC;

            

    

     

    
      	 	
              (2)

            	
              CenturyTel
                Interactive Company;

            

    

     

    
      	 	
              (3)

            	
              CenturyTel
                Security Systems, Inc.;

            

    

     

    
      	 	
              (4)

            	
              CenturyTel
                Holdings, Inc; and

            

    

     

    
      	 	
              (5)

            	
              CenturyTel
                Investments of Texas, Inc.

            

    

     

    Effective
      January 1, 1999, the Company became the sponsor of this Plan, and Employees
      of
      the Company, any adopting Affiliate, and any Adopting Entity became eligible
      to
      participate in this Plan effective January 1, 1999. Σ
      # Ω

     

    3.2    Requirements
      for Participation.
      To be
      eligible to participate in the Plan, an Employee must: 

     

    
      	 	
              (a)

            	
              Be
                an Eligible Employee under Section
                3.1;

            

    

     

    
      	 	
              (b)

            	
              Complete
                one (1) Year of Eligibility Service, as determined under Section
                4.1;
                and

            

    

     

    
      	 	
              (c)

            	
              Attain
                age twenty-one (21). #
                Ω

            

    

     

    3.3    Effective
      Time of Participation.
      An
      Eligible Employee who meets the requirements of Section 3.2 shall be a
      Participant in the Plan as of the first day of the Eligibility Computation
      Period in which the Employee meets such requirements.

     

    3.4    Reassignment
      and Reemployment.
      In the
      event an Employee who is not a member of the eligible class of Employees becomes
      a member of the eligible class, such Employee shall be eligible to participate
      immediately.

     

    In
      the
      event a Participant is no longer a member of the eligible class of Employees
      and
      becomes ineligible to participate, such Employee shall be eligible to
      participate immediately upon returning to the eligible class of
      Employees.

     

    A
      former
      Participant shall become a Participant immediately upon returning to the employ
      of the Employer if such former Participant is a member of the eligible class
      of
      Employees when re-employed.

     

    3.5    Waiver
      of Participation.
      The
      Employer may grant a waiver of participation to any Employee who so requests.
      Whether or not such waiver shall be granted, and the terms and conditions
      (including duration) thereof, shall be made in accordance with written and
      objective rules and shall be applied in a uniform and nondiscriminatory manner.
      

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV

    CREDITING
      OF SERVICE 

     

    4.1    Eligibility
      Service.

     

    
      	 	
              (a)

            	
              A
                Year of Eligibility Service for purposes of satisfying Section 3.2(b)
                shall be measured on an employment year, which is the twelve (12)
                month
                period starting on the date the Employee first performs an Hour of
                Service
                for the Employer, or an anniversary of such date (Eligibility Computation
                Period).

            

    

     

    
      	 	
              (b)

            	
              An
                Employee shall be credited with a Year of Eligibility Service for
                each
                Eligibility Computation Period in which the Employee completes at
                least
                one thousand (1000) Hours of Service.

            

    

     

    
      	 	
              (c)

            	
              For
                purposes of computing Years of Eligibility Service, an Employee’s service
                shall also include service credited under Sections 4.6 and 4.7.
                #

            

    

     

    4.2    Vesting
      Service.

     

    
      	 	
              (a)

            	
              For
                Plan Years ending prior to January 1, 1999, a Year of Vesting Service
                shall be measured on an employment year, which is the twelve (12)
                month
                period starting on the date the Employee first performs an Hour of
                Service
                for the Employer, or an anniversary of such date. For Plan Years
                commencing on or after January 1, 1999, a Year of Vesting Service
                shall be
                measured on a Plan Year (Vesting Computation
                Period).

            

    

     

    
      	 	
              (b)

            	
              Subject
                to the provisions of Section 4.5(c)(1), an Employee shall be credited
                with
                a Year of Vesting Service for each Plan Year in which the Employee
                completes at least one thousand (1000) Hours of
                Service.

            

    

     

    
      	 	
              (c)

            	
              For
                purposes of computing Years of Vesting Service, an Employee’s service
                shall include service credited under Section 4.6. In the case of
                an
                Employee who was enrolled in and met the eligibility and disability
                requirements of the LTD Plan and who has not retired and become eligible
                for a disability benefit under this Plan, service shall also include
                the
                period of time (i) commencing with the beginning of the disability
                covered by the LTD Plan and (ii) ending when eligibility for benefits
                under the LTD Plan ceases. Σ
                #

            

    

     

    4.3    Credited
      Service.

     

    
      	 	
              (a)

            	
              For
                Plan Years ending prior to January 1, 1999, a Year of Credited Service
                shall be measured on an employment year, which is the twelve (12)
                month
                period starting on the date the Participant first performs an Hour
                of
                Service for the Employer, or an anniversary of such date. For Plan
                Years
                commencing on or after January 1, 1999, service for purposes of
                determining an Employee’s Years of Credited Service shall be measured on a
                Plan Year (Benefit Computation
                Period).

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              Subject
                to the provisions of Section 4.5(a), an Employee shall be credited
                with a
                full Year of Credited Service for any Plan Year in which he has been
                credited, for service with the Employer, with at least one thousand
                (1000)
                Hours of Service.

            

    

     

    
      	 	
              (c)

            	
              In
                the case of an Employee who was eligible to the participate in the
                Plan
                and who was enrolled in and met the eligibility and disability
                requirements of the LTD Plan, who has not retired and become eligible
                for
                a disability benefit under this Plan, and who has completed ten (10)
                Years
                of Service, service for purposes of determining an Employee’s Years of
                Credited Service shall also include the period of time (i) commencing
                with
                the beginning of the disability covered by the LTD Plan and (ii)
                ending
                when eligibility for benefits under the LTD Plan ceases, with his
                rate of
                compensation immediately prior to his Disability being deemed to
                continue
                during such period for the purpose of computing Final Average
                Pay.

            

    

     

    
      	 	
              (d)

            	
              Subject
                to the provisions of Section 4.6, service of Employees of CenturyTel,
                Inc., any adopting Affiliate, and any Adopting Entity (other than
                former
                employees of Pacific Telecom, Inc. who became employees of CenturyTel,
                Inc. or an Affiliate thereof as of the date of acquisition of Pacific
                Telecom, Inc. by CenturyTel, Inc, or an Affiliate thereof) shall
                begin to
                be counted for purposes for computing Years of Credited Service effective
                January 1, 1999. Such Employees shall not be credited with Years
                of
                Credited Service for years beginning before January 1,
                1999.

            

    

     

    
      	 	
              (e)

            	
              Employees
                who were Participants in the Salaried Plan or who were Participants
                who
                were not covered by a collective bargaining agreement in the Hourly
                Plan
                before January 1, 2007 shall not be credited with Years of Credited
                Service for purposes of computing their basic benefits under Article
                VI of
                the Plan for years beginning before January 1,
                2007.

            

    

     

    
      	 	
              (f)

            	
              Employees
                who become Participants entitled to accrue basic benefits under Article
                VI
                of the Plan on or after January 1, 2007 shall not be credited with
                Years
                of Credited Service for purposes of Article VI for periods for which
                they
                are credited with years of Credited Service for benefit accrual purposes
                under the Hourly Plan portion of this Plan or under the Ohio Plan
                portion
                of this Plan.

            

    

     

    
      	 	
              (g)

            	
              Notwithstanding
                the foregoing provisions of this Section 4.3, Credited Service shall
                not
                include any period of an individual’s employment during which the
                individual is not classified by the Company, an Affiliate or an Adopting
                Entity as a common-law employee of the Company, an Affiliate, or
                an
                Adopting Entity regardless of any subsequent reclassification of
                such
                individual as a “common-law” employee of the Company, an Affiliate or an
                Adopting Entity by the Company, an Affiliate, an Adopting Entity,
                any
                governmental agency, or any court. Σ
                # Ω

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    4.4    Reemployment
      after Break in Service.

     

    
      	 	
              (a)

            	
              When
                an Employee who does not have a vested interest in his or her benefit
                under Section 5.6(b) incurs a Break in Service, and thereafter is
                reemployed by the Employer, and the number of Years of Service before
                the
                Break in Service is greater than the number of consecutive Breaks
                in
                Service, then the break in the Employee’s employment shall be bridged, and
                there shall be added to the service that has accumulated since his
                reemployment the aggregate of all previous periods of service that
                the
                Employee had prior to the break, provided that the Employee had at
                least
                one (1) Year of Service preceding the Break in Service. Years of
                Service
                for a vested Employee shall be bridged in the same manner as Years
                of
                Service for an Employee who is entitled to bridging of service under
                the
                preceding sentence.

            

    

     

    
      	 	
              (b)

            	
              Upon
                retirement or separation from service following the bridging of a
                Break in
                Service hereunder, the Employee’s benefits under this Plan shall be based
                on his Final Average Pay and Years of Credited Service both before
                and
                after the Break in Service.

            

    

     

    
      	 	
              (c)

            	
              Notwithstanding
                the foregoing, if the application of the bridging of service provisions
                contained in this Section 4.4 would result in a lower or reduced
                benefit
                for a Participant, then the provisions of this Section 4.4 shall
                not apply
                to such Participant.

            

    

     

    4.5    Transition
      Rules and Short and Overlapping Computation Periods.

     

    
      	 	
              (a)

            	
              For
                each Computation Period commencing prior to 1999, if a Participant
                was
                credited in a Plan Year with less than 2080 of Hours of Service,
                the
                Participant will be credited for such Computation Period with a fraction
                of a Year of Credited Service (not in excess of one (1)), where the
                numerator of the fraction is the number of Hours of Service credited
                to
                the Participant during such Computation Period and the denominator
                is
                2080. For Plan Years commencing in 1999 and thereafter, a Participant
                shall be credited with one (1) full Year of Credited Service if the
                Participant completes one thousand (1000) Hours of Service during
                such
                Plan Year. For the 1998 Plan Year, each Participant’s Year of Credited
                Service shall be determined pursuant to (c)(3)
                below.

            

    

     

    
      	 	
              (b)

            	
              If
                the compensation (if any) used to determine a Participant’s accrued
                benefit under any benefit formula in the Plan is so defined as to
                cause
                application of the preceding subsection (a) otherwise to violate
                the
                prohibition against double proration in 29 C.F.R. §2530.204-2(d), then the
                Participant’s compensation under such definition for any Plan Year during
                which the Participant is credited with less than 2080 of Hours of
                Service
                in the Plan Year shall be adjusted by multiplying the Participant’s
                compensation under such definition for the Plan Year by a fraction,
                the
                numerator of which is 2080 Hours of Service, and the denominator
                of which
                is the number of Hours of Service credited to the Participant during
                such
                Plan Year.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              For
                any short and/or overlapping computation period for vesting, break
                in
                service or benefit accrual purposes which arose due to the changes
                in the
                Computation Periods for Years of Vesting Service and Years of Credited
                Service, commencing on or after January 1, 1999, the following rules
                shall
                apply:

            

    

     

    
      	 	
              (1)

            	
              For
                vesting purposes, a Participant who is credited with 1000 Hours of
                Service
                in both the Computation Period commencing in 1998 and the overlapping
                Computation Period commencing January 1, 1999 shall be credited with
                two
                (2) Years of Service for vesting
                purposes.

            

    

     

    
      	 	
              (2)

            	
              For
                Break in Service purposes, an Employee who has terminated employment
                will
                have a One-Year Break in Service for each of the Computation Periods
                commencing in 1998 and commencing on January 1, 1999 if the Employee
                has
                not more than 500 Hours of Service in such Computation Periods,
                respectively.

            

    

     

    
      	 	
              (3)

            	
              For
                benefit accrual purposes, a Participant shall be credited with a
                pro-rated
                portion of a Year of Credited Service for the Computation Period
                commencing in 1998 if the Participant completes a pro-rated portion
                of
                1000 Hours of Service by December 31, 1998. The pro-rated portion
                of the
                1000-hour requirement shall be determined by multiplying the number
                of
                calendar days between the participant’s employment anniversary date and
                December 31, 1998 times 2.7.

            

    

     

    4.6    Special
      Rules for Service Under Prior Plan.
      An
      Eligible Employee shall be credited with service for all purposes under this
      Plan, including eligibility, participation, vesting and benefit accrual, for
      service credited under the terms of the Prior Plan. Notwithstanding the
      preceding sentence, this Section 4.6 shall not be applied in a manner which,
      in
      conjunction with the service crediting rules above, would result in an Employee
      being credited with more than one Year of Service in any Plan Year, and in
      such
      event, the Employee’s service credit will be limited to one (1) year of service.
      An Employee will receive service credit under this Section 4.6 only if the
      Employee is a participant in this Plan upon his initial hire by the Employer,
      and only if this Plan receives a transfer of benefit liabilities and assets
      with
      respect to such Employee from the Prior Plan. Σ
      #

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    4.7    Transfers
      Between Company, Affiliates and Adopting Entities.

     

    
      	 	
              (a)

            	
              Transfer
                of employment between the Company, an adopting Affiliate, or an Adopting
                Entity shall not be considered a termination of
                employment.

            

    

     

    
      	 	
              (b)

            	
              Service
                for an Affiliate or Adopting Entity shall only be counted after the
                date
                of affiliation, or such earlier date fixed by the Company in a statement
                of adoption.

            

    

     

    
      	 	
              (c)

            	
              Years
                of Eligibility Service and Years of Vesting Service shall be counted
                for
                service with the Company, any Affiliate, and any Adopting Entity.
                Except
                as provided in (d) below, Years of Credited Service shall be counted
                for
                service with an Employer, and a nonadopting Affiliate only if the
                obligation to pay benefits based on service with such Affiliate is
                assumed
                from a plan maintained by the Affiliate, as evidenced by a statement
                of
                assumption signed by the Company, provided to the Committee and
                communicated to Employees.

            

    

     

    
      	 	
              (d)

            	
              Years
                of Credited Service shall be counted for service with CenturyTel,
                Inc. or
                any Affiliate beginning as of January 1, 1999, and service with
                CenturyTel, Inc. or any adopting Affiliate prior to January 1, 1999,
                shall
                not be counted under this Plan for purposes of determining Years
                of
                Credited Service.

            

    

     

    
      	 	
              (e)

            	
              An
                Employee’s Year of Credited Service for the year in which the Employee
                transfers to or from employment with an Employer shall be determined
                as
                follows:

            

    

     

    
      	 	
              (1)

            	
              The
                total number of days worked by the Employee for an Employer during
                a Plan
                Year shall be divided by 365.

            

    

     

    
      	 	
              (2)

            	
              The
                total number of hours worked by the Employee for the Company, any
                Affiliate and any Adopting Entity for the Plan Year shall be determined
                and shall be utilized to determine if the Employee would have been
                entitled to be credited with a Year of Credited Service under Section
                4.3
                if the Employee had worked for an Employer during the entire Plan
                Year.
                

            

    

     

    
      	 	
              (3)

            	
              The
                result of the determination under (2) above, shall be multiplied
                by the
                fraction resulting from the computation under (1) above, and the
                result
                shall be the fractional Year of Credited Service, if any, credited
                to the
                Employee under this Plan for such Plan Year.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

    BENEFITS
      ON RETIREMENT, DEATH,

    DISABILITY
      AND TERMINATION OF EMPLOYMENT

     

    5.1    Normal
      Retirement.
      An
      Employee who attains Normal Retirement Age shall have the right to retire with
      a
      fully vested and nonforfeitable basic benefit computed in accordance with
      Section 6.1, subject to the limitations contained in Section 5.7, commencing
      as
      of the first day of the month coinciding with or immediately following his
      retirement. Σ
      # Ω

     

    5.2    Early
      Retirement.

     

    
      	 	
              (a)

            	
              An
                Employee who has attained age fifty-five (55) and completed five
                (5) Years
                of Credited Service may retire before attaining Normal Retirement
                Age and
                shall be entitled to a benefit
                hereunder.

            

    

     

    
      	 	
              (b)

            	
              The
                benefit provided on Early Retirement under this Section 5.2 shall
                be a
                fully vested and nonforfeitable benefit computed in accordance with
                Section 6.2, subject to the limitations contained in Section 5.7.
                Σ
                #

            

    

     

    5.3    Deferred
      Retirement.
      An
      Employee who continues to work for the Employer after his Normal Retirement
      Age
      shall be entitled to a deferred retirement benefit, computed in accordance
      with
      Section 6.3, subject to the limitations contained in Section 5.7. Σ
      # Ω

     

    5.4    Disability
      Retirement.
      An
      Employee shall be entitled to a disability retirement benefit if he becomes
      Disabled. An Employee’s disability retirement benefit will be computed in
      accordance with Section 6.4, and will commence as of the first day of the month
      coinciding with or following the Employee’s Normal Retirement Age; provided,
      however, that an Employee may elect an early commencement of his disability
      retirement benefit pursuant to Section 7.11. Σ
      # Ω

     

    5.5    Spouse’s
      Benefit.
      A Spouse
      of a Participant shall be entitled to a benefit computed in accordance with
      Section 6.5 if the Participant dies before the Annuity Starting Date and if
      the
      requirements of (a) or (b), below, are met, and the requirement of (c), below,
      is met. 

     

    
      	 	
              (a)

            	
              the
                Participant was employed by the Employer on his date of death and
                had
                earned a nonforfeitable right to benefits
                hereunder.

            

    

     

    
      	 	
              (b)

            	
              (1)

            	
              the
                Participant had terminated employment with the Employer after attaining
                Normal Retirement Age or becoming eligible for an early retirement
                benefit
                under Section 5.2 or a disability retirement benefit under Section
                5.4;
                or

            

    

     

    
      	 	
              (2)

            	
              the
                Participant had terminated employment with the Employer after earning
                a
                nonforfeitable right to benefits hereunder but prior to attaining
                Normal
                Retirement Age or becoming eligible for an early or disability retirement
                benefit hereunder.

            

    

     

    
      	 	
              (c)

            	
              the
                Participant was legally married to the surviving spouse at death
                and was
                so married for the year preceding death.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    The
      spouse of a Participant who has a Platteville employee contribution account
      under Schedule 6.1(f)-1 to the Plan shall be entitled to a benefit determined
      under Section 6.5(d) upon the death of the Participant.

     

    No
      Spouse’s benefit shall be payable to the Spouse of a Participant who dies before
      the Annuity Starting Date without having met the requirements of this Section
      5.5. Except as otherwise provided in the Plan, whether a Participant has earned
      a nonforfeitable right to a benefit shall be determined in accordance with
      Section 5.6(b). Σ
      #

     

    5.6    Benefit
      on Termination of Employment.

     

    
      	 	
              (a)

            	
              A
                Participant who terminates employment prior to becoming eligible
                for a
                normal, early or disability retirement benefit hereunder, and prior
                to his
                death, shall be entitled to a benefit computed in accordance with
                Section
                6.6, subject to the vesting schedule in (b) below, and the limitations
                contained in Section 5.7.

            

    

     

    
      	 	
              (b)

            	
              Participants
                shall earn a nonforfeitable interest in their benefits under this
                Plan
                according to the following
                schedule:

            

    

     

    
      	
              YEARS
                OF VESTING SERVICE

            	
              VESTING
                PERCENTAGE

            
	 	 
	
              less
                than five (5)

            	
              0%

            
	
              five
                (5) or more

            	
              100%

            

    

    

    Notwithstanding
      the foregoing schedule, a Participant’s right to benefits under this Plan shall
      be fully vested and nonforfeitable upon attainment of Normal Retirement Age,
      upon meeting the requirements for an early retirement benefit under Section
      5.2,
      upon meeting the requirements for a disability benefit under Section 5.4, and
      upon the death of the Participant.

     

    
      	 	
              (c)

            	
              Notwithstanding
                the vesting schedule in (b), above, a Participant’s Accrued Benefit shall
                be fully vested and become nonforfeitable upon the occurrence of
                any of
                the following events, each of which shall be referred to herein as
                a
                “Change of Control”:

            

    

     

    
      	 	
              (1)

            	
              the
                acquisition by any person of beneficial ownership of 30% or more
                of the
                outstanding shares of the Company’s common stock, $1.00 par value per
                share (the “Common Stock”), or 30% or more of the combined voting power of
                the Company’s then outstanding securities entitled to vote generally in
                the election of directors; provided, however, that for purposes of
                this
                subsection (1), the following acquisitions shall not constitute a
                Change
                of Control: 

            

    

     

    
      	 	
              (i)

            	
              any
                acquisition (other than a Business Combination (as defined below)
                which
                constitutes a Change of Control under Section 5.6(c)(3)) of Common
                Stock
                directly from the Company,

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              any
                acquisition of Common Stock by the Company or its subsidiaries,
                

            

    

     

    
      	 	
              (iii)

            	
              any
                acquisition of Common Stock by any employee benefit plan (or related
                trust) sponsored or maintained by the Company or any corporation
                controlled by the Company, or 

            

    

     

    
      	 	
              (iv)

            	
              any
                acquisition of Common Stock by any corporation pursuant to a Business
                Combination that does not constitute a Change of Control under Section
                5.6(c)(3); or 

            

    

     

    
      	 	
              (2)

            	
              individuals
                who, as of January 1, 2000, constituted the Board of Directors of
                the
                Company (the “Incumbent Board”) cease for any reason to constitute at
                least a majority of the Board of Directors, provided, however, that
                any
                individual becoming a director subsequent to such date whose election,
                or
                nomination for election by the Company’s shareholders, was approved by a
                vote of at least two-thirds of the directors then comprising the
                Incumbent
                Beard shall be considered a member of the Incumbent Board, unless
                such
                individual’s initial assumption of office occurs as a result of an actual
                or threatened election contest with respect to the election or removal
                of
                directors or other actual or threatened solicitation of proxies or
                consents by or on behalf of a person other than the Incumbent Board;
                or
                

            

    

     

    
      	 	
              (3)

            	
              consumption
                of a reorganization, share exchange, merger or consolidation (including
                any such transaction involving any direct or indirect subsidiary
                of the
                Company), or sale or other disposition of all or substantially all
                of the
                assets of the Company (a “Business Combination”); provided, however, that
                in no such case shall any transaction constitute a Change of Control
                if
                immediately following such Business
                Combination:

            

    

     

    
      	 	
              (i)

            	
              the
                individuals and entities who were the beneficial owners of the Company’s
                outstanding Common Stock and the Company’s voting securities entitled to
                vote generally in the election of directors immediately prior to
                such
                Business Combination have direct or indirect beneficial ownership,
                respectively, of more than 50% of the then outstanding shares of
                common
                stock, and more than 50% of the combined voting power of the then
                outstanding voting securities entitled to vote generally in the election
                of directors of the surviving or successor corporation, or, if applicable,
                the ultimate parent company thereof (the “Post-Transaction
                Corporation”);

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              except
                to the extent that such ownership existed prior to the Business
                Combination, no person (excluding the Post-Transaction Corporation
                and any
                employee benefit plan or related trust of either the Company, the
                Post-Transaction Corporation or any subsidiary of either corporation)
                beneficially owns, directly or indirectly, 20% or more of the then
                outstanding shares of common stock of the corporation resulting from
                such
                Business Combination or 20% or more of the combined voting power
                of the
                then outstanding voting securities of such corporation;
                and

            

    

     

    
      	 	
              (iii)

            	
              at
                least a majority of the members of the board of directors of the
                Post-Transaction Corporation were members of the Incumbent Board
                at the
                time of the execution of the initial agreement, or of the action
                of the
                Board of Directors, providing for such Business Combination;
                or

            

    

     

    
      	 	
              (4)

            	
              approval
                by the shareholders of the Company of a complete liquidation or
                dissolution of the Company.

            

    

     

    For
      purposes of this Section 5.6(c), the term “person” shall mean a natural person
      or entity, and shall also mean the group or syndicate created when two or more
      persons act as a syndicate or other group (including, without limitation, a
      partnership or limited partnership) for the purpose of acquiring, holding,
      or
      disposing of a security, except that “person” shall not include an underwriter
      temporarily holding a security pursuant to an offering of the security.
Σ
      # Ω

     

    5.7    Limitations
      on Pensions.
      (Effective January 1, 2002)

     

    
      	 	
              (a)

            	
              In
                addition to any other limits set forth in the Plan, and notwithstanding
                any other provision of the Plan, in no event shall the annual amount
                of
                any retirement benefit payable with respect to a Participant under
                the
                Plan exceed the maximum annual amount permitted by Section 415 of
                the Code
                for a retirement benefit payable in the form and commencing at the
                age
                provided for with respect to the Participant. The determination in
                the
                preceding sentence shall be made after taking into account the retirement
                benefits payable with respect to the Participant under all other
                defined
                benefit plans required to be aggregated with this plan under Section
                415(f) (1)(A) of the Code.

            

    

     

    
      	 	
              (b)

            	
              If
                the limits imposed by subsection (a) above would otherwise be exceeded
                with respect to a Participant, the retirement benefits with respect
                to the
                Participant under the plans described in subsection (a) above shall
                be
                reduced until those limits are satisfied. Reductions shall be made
                in
                reverse chronological order, that is, on a plan-by-plan basis, beginning
                with the plan under which the Participant most recently accrued a
                benefit
                or was allocated an annual addition, and ending with the plan under
                which
                the Participant least recently accrued a benefit. However, in the
                event of
                a reduction of benefit from this Plan, reduction should be in the
                following sequence: 6.1(a)(1), 6.1(a)(2), 6.1(a)(3), 6.1(a)(4), 6.1(a)(5)
                and 6.1(a)(6).

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              The
                limits imposed by subsection (a), above, shall be applied on the
                basis
                of:

            

    

     

    
      	 	
              (1)

            	
              the
                assumptions described below,

            

    

     

    
      	 	
              (i)

            	
              The
                mortality table used for purposes of adjusting any benefit or limitation
                under Code Section 415(b)(2)(B),(C) or (D) shall be the “applicable
                mortality table” prescribed from time-to-time by the Secretary of the
                Treasury for purposes of Code Section
                417(e).

            

    

     

    
      	 	
              (ii)

            	
              The
                interest rate used for purposes of adjusting any benefit or limitation
                under Code Section 415(b)(2)(B),(C) or (D) except forms of benefit
                subject
                to Section 417(e) of the Code, shall be
                5%.

            

    

     

    
      	 	
              (iii)

            	
              The
                interest rate used to adjust the limitation under Code Section
                415(b)(2)(B) of the Code for forms of benefit subject to Section
                417(e) of
                the Code shall be the “applicable interest rate” under Code Section 417(e)
                for years prior to 2004. For 2004 and 2005, the interest rate shall
                be
                5.5%. For years after 2005 the interest rate shall be the greater
                of (i)
                5.5% or (ii) the rate that provides a benefit of not more than 105
                percent
                of the benefit that would be provided if the applicable interest
                rate (as
                defined in Code Section 417(e)) were the interest rate
                assumption.

            

    

     

    
      	 	
              (2)

            	
              the
                definition of compensation in Treas. Reg. Section
                1.415-2(d)(11)(i),

            

    

     

    
      	 	
              (3)

            	
              any
                cost-of-living increase that the Plan is permitted to take into account
                under Section 415(d) of the Code,

            

    

     

    
      	 	
              (4)

            	
              any
                applicable transition rule prescribed in Section 1106(i) of the Tax
                Reform
                Act of 1986, and

            

    

     

    
      	 	
              (5)

            	
              any
                other applicable transition rule that preserves a Participant’s accrued
                benefit under the Plan as of the effective date of the enactment
                or
                amendment of Section 415 of the
                Code.

            

    

     

    
      	 	
              (d)

            	
              Notwithstanding
                the foregoing, the application of this Section 5.7 shall not cause
                a
                Participant’s accrued benefit (including any optional benefit) determined
                under the provisions of the Plan to be less than the greater
                of:

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	 	
              (1)

            	
              the
                Participant’s accrued benefit based on all service credited under the Plan
                taking into account the limitations of Section 415 of the Code in
                effect
                as of the date of the determination;
                or

            

    

     

    
      	 	
              (2)

            	
              the
                sum of

            

    

     

    
      	 	
              (i)

            	
              the
                Participant’s accrued benefit under the terms of the Prior Plans in effect
                as of December 31, 1999, taking into account the limitations of Section
                415 of the Code in effect as of December 7, 1994,
                and

            

    

     

    
      	 	
              (ii)

            	
              the
                Participant’s accrued benefit based solely on service after December 31,
                1999, taking into account the limitations of Section 415 of the Code
                in
                effect as of the date of the
                determination.

            

    

     

    This
      Section 5.7 is intended to satisfy the requirements imposed by Section 415
      of
      the Code and shall be construed in a manner that will effectuate this intent.
      This Section 5.7 shall not be construed in a manner that would impose
      limitations that are more stringent than those required by Section 415 of the
      Code.

     

    5.8    Death
      Benefit.
      A
      Participant’s Beneficiary or a terminated vested Participant’s Beneficiary shall
      be entitled to a benefit calculated in accordance with Section 6.9 if the
      Participant or the terminated vested Participant dies before his Annuity
      Starting Date. 

     

    ARTICLE
      VI

    COMPUTATION
      OF BENEFIT AMOUNTS 

     

    6.1    Normal
      Retirement Benefit.

     

    
      	 	
              (a)

            	
              Except
                as provided in Section 6.1(b) and subject to the limitations contained
                in
                Section 5.7, the basic benefit on normal retirement for a person
                retiring
                on or after January 1, 1990 is a monthly pension for the life of
                the
                Participant equal to the sum of: 

            

    

     

    
      	 	
              (1)

            	
              Years
                of Credited Service (YCS) as of December 31, 1998, up to a maximum
                of
                thirty (30), times the sum of 1.3 percent of Final Average Pay (FAP)
                plus
                .65 percent of Final Average Pay in excess of social Security Covered
                Compensation (SSCC), as follows: 

            

    

     

    YCS
      (up
      to 30) X ((1.3%X FAP) + (.65% X (FAP - SSCC))), and 

     

    
      	 	
              (2)

            	
              Years
                of Credited Service (YCS) accrued after December 31, 1998, up to
                a maximum
                of thirty (30), taking into account Years of Credited Service under
                clause
                (1), above, first in determining the thirty (30) year maximum, times
                the
                sum of 0.50 percent of Final Average Pay plus 0.50 percent of Final
                Average Pay in excess of Social Security Covered Compensation (SSCC),
                as
                follows: 

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    YCS
      (up
      to 30, taking into account benefit years under (1), above, first) X (.50% X
      FAP
      + .50% X (FAP-SSCC)).

     

    
      	 	
              (3)

            	
              For
                a Participant listed in Schedule 6.1(a)(3), the amount specified
                in
                Schedule 6.1(a)(3) with respect to such
                Participant.

            

    

     

    
      	 	
              (4)

            	
              For
                a Participant listed in Schedule 6.1(a)(4), the amount specified
                in
                Schedule 6.1(a)(4) with respect to such
                Participant.

            

    

     

    
      	 	
              (5)

            	
              For
                a Participant listed in Schedule 6.1(a)(5), the amount specified
                in
                Schedule 6.1(a)(5) with respect to such Participant.
                

            

    

     

    
      	 	
              (6)

            	
              In
                no event shall a Participant’s Accrued Benefit, expressed as an annual
                benefit payable at Normal Retirement Date, be less than $650, and
                in no
                event shall a Participant’s Accrued Benefit be less than his or her
                Accrued Benefit (if any) as of December 31,
                2006.

            

    

     

    
      	 	
              (b)

            	
              Except
                as provided in Section 6.1(d) below, for Participants covered by
                a
                collective bargaining agreement that provides for participation in
                this
                Plan, and subject to the limitations contained in Section 5.7, the
                basic
                benefit on normal retirement for a person retiring on or after January
                1,
                1990 is a monthly pension for the life of the Participant equal to
                the
                number of Years of Credited Service (YCS), up to a maximum of thirty
                (30),
                times the sum of 1.3 percent of Final Average Pay (FAP) plus .65
                percent
                of Final Average Pay in excess of Social Security Covered Compensation
                (SSCC) as follows: 

            

    

     

    YCS
      (up
      to 30) X ((1.3% X FAP) + (.65% X (FAP - SSCC))).

     

    
      	 	
              (c)

            	
              Notwithstanding
                the provisions of (a) and (b), above, the benefit of former employees
                of
                Pacific Telecom, Inc. who were on long-term disability under the
                Pacific
                Telecom, Inc. Long-Term Disability Plan as of December 31, 1998 shall,
                subject to the limitations contained in Section 5.7, be computed
                in
                accordance with the benefit formula contained in Section 6.1(b),
                above.

            

    

     

    
      	 	
              (d)

            	
              If
                a Participant either becomes covered by a collective bargaining agreement
                which provides for participation in this Plan or ceases to be so
                covered,
                the Participant’s basic benefit shall be determined by applying Section
                6.1(a) above to the time period during which the Participant is not
                covered by a collective bargaining agreement which provides for
                participation in this Plan, and Section 6.1(b) above shall apply
                to the
                time period during which the Participant is so covered unless the
                collective bargaining agreement provides that the Participant’s basic
                benefit shall be determined by applying Section 6.1(a), in which
                case it
                shall apply to his Years of Credited Service after Section 6.1(a)
                begins
                to apply. In the event a Participant’s basic benefit is determined under
                both Section 6.1(a) and (b) for periods within a single Plan Year,
                the
                Participant shall not be given duplicate credit under both Section
                6.1(a)
                and 6.1(b), but each period shall be counted only once in determining
                the
                Participant’s basic benefit.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              Effective
                on and after January 1, 2007, if a Participant ceases accruing benefits
                under a Constituent Plan portion of this Plan and begins accruing
                benefits
                under Section 6.1(a) (the date of such cessation and beginning being
                his
                “Transfer Date”), his Credited Service for purposes of calculating his
                Normal Retirement Benefit under the Constituent Plan portion(s) of
                this
                Plan will not increase after his Transfer Date and his benefit shall
                be
                the greatest of: (1) his benefit under the Constituent Plan(s) plus
                the
                additional benefit under Section 6.1(a), (2) his Minimum Benefit
                (if
                applicable) under the Constituent Plan(s) or (3) the benefit under
                Section
                6.1(a)(6) of this Plan.

            

    

     

    
      	 	
              (f)

            	
              The
                benefits for certain employees of certain Affiliates and Adopting
                Entities
                and certain benefits from the Constituent Plans and other plans are
                determined in accordance with Schedules 6.1(f)-1 through 6.1(f)-4.
                Employees of certain acquired and adopting companies are governed
                by
                special rules for eligibility, vesting, benefits and other features,
                as
                set forth in Schedule 6.1(f)-1. Benefits attributable to service
                prior to
                January 1, 2007 for Participants in the following plans are governed
                by
                the following Schedules:

            

    

     

    
      	
              Plan

            	
              Schedule

            
	
              Salaried
                Plan

            	
              Schedule
                6.1(f)-2

            
	
              Hourly
                Plan

            	
              Schedule
                6.1(f)-3

            
	
              Ohio
                Plan

            	
              Schedule
                6.1(f)-4

            

    

     

    In
      addition, the benefits of Represented Employees (as defined in Schedules
      6.1(f)-3 and 6.1(f)-4) attributable to employment with the Employer on and
      after
      January 1, 2007 continue to be governed by the terms of Schedules 6.1(f)-3
      and
      6.1(f)-4, until such time as such Employees become Nonrepresented Employees
      (i.e. until such time as such Employees cease to be covered by a collective
      bargaining agreement that provides for participation in the Hourly Plan portion
      of the Plan or the Ohio Plan portion of the Plan). Σ
      # Ω

     

    6.2    Early
      Retirement Benefit.
      On early
      retirement, the basic benefit shall be the normal retirement benefit under
      Section 6.1 reduced as follows. The amount of basic benefit attributable to:
      (1)
      the appropriate percentage of Final Average Pay determined under Section 6.1(a)
      or 6.1(b) (the Base Benefit); (2) the amount attributable to the appropriate
      percentage of Final Average Pay in excess of Social Security Covered
      Compensation determined under Section 6.1(a) or 6.1(b) (the Excess Benefit);
      and
      (3) the amounts specified in Section 6.1(a)(3) and 6.1(a)(4) (both of which
      utilize the Excess Benefit Percentage); shall be adjusted to the Annuity
      Starting Date by the percentages prescribed in the following table,
      interpolating between ages through the last full month. Σ
      # Ω

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
              Age
                at Benefit Starting Date

            	
              Base
                Benefit Percentage

            	
              Excess
                Benefit Percentage

            
	
              64

            	
              100%

            	
              92%

            
	
              63

            	
              100%

            	
              84%

            
	
              62

            	
              100%

            	
              76%

            
	
              61

            	
              95%

            	
              72%

            
	
              60

            	
              90%

            	
              68%

            
	
              59

            	
              84%

            	
              64%

            
	
              58

            	
              78%

            	
              60%

            
	
              57

            	
              72%

            	
              56%

            
	
              56

            	
              66%

            	
              52%

            
	
              55

            	
              60%

            	
              48%

            

    

    

    6.3    Deferred
      Retirement Benefit.

     

    
      	 	
              (a)

            	
              On
                deferred retirement, the basic benefit shall be that for normal retirement
                based on Years of Credited Service and Final Average Pay at actual
                retirement. 

            

    

     

    
      	 	
              (b)

            	
              The
                monthly normal retirement benefit payable with respect to a Participant
                who continues in employment with the Employer or an Affiliate after
                his
                Normal Retirement Date shall be determined as provided in paragraph
                (1),
                and, if applicable, (2). 

            

    

     

    
      	 	
              (1)

            	
              For
                the period beginning on the Participant's Normal Retirement Date
                and
                ending on the April 1 following the calendar year in which he reaches
                age
                70 1/2, his "adjusted normal retirement benefit" shall be the greater
                of:

            

    

     

    
      	 	
              (i)

            	
              the
                Participant's Accrued Benefit as of the date such benefit
                is being determined; or

            

    

     

    
      	 	
              (ii)

            	
              the
                Actuarial Equivalent (as of the date such benefit is being determined)
                of
                the Participant's Accrued Benefit as of his Normal Retirement Date,
                based
                on the number of months his Annuity Starting Date follows his Normal
                Retirement Date (but no later than the April 1 following the calendar
                year
                in which the Participant attains age 70
                1/2).

            

    

     

    
      	 	
              (2)

            	
              For
                the period beginning on the April 1 following the calendar year in
                which
                he reaches age 70 1/2, the Participant's monthly retirement benefit
                shall
                be adjusted as of each "determination date" (as defined in this Section).
                His "adjusted normal retirement benefit" shall be the greater
                of:

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      	 	
              (i)

            	
              the
                Participant's Accrued Benefit as of the "determination date";
                or

            

    

     

    
      	 	
              (ii)

            	
              the
                Actuarial Equivalent on the "determination date" of the Participant's
                "adjusted normal retirement benefit" determined under this Section
                for the
                prior "determination date" (as defined in this
                Section).

            

    

     

    For
      purposes of this Section 6.3(b), a "determination date" means the last day
      of
      each calendar year during the period beginning with the calendar year following
      the calendar year in which the Participant attains age 70 1/2 and ending on
      the
      earlier of (i) the date the Participant retires from employment with the
      Employer and all Affiliates, or (ii) his Annuity Starting Date, except that
      the
      first "determination date" is the April 1 following the calendar year in which
      the Participant attains age 70-1⁄2. 

    

    No
      reduction shall be made to a Participant's monthly normal retirement benefit
      after the earlier of (i) the date the Participant retires from employment with
      the Employer and all Affiliates, or (ii) his Annuity Start Date. However, If
      the
      Participant continues to accrue benefits under the Plan, such accruals shall
      be
      reduced by the Actuarial Equivalent of any benefits received

    

    
      	 	
              (c)

            	
              If
                benefits start under Section 7.10 to a Participant during employment
                the
                following shall apply: 

            

    

     

    
      	 	
              (1)

            	
              The
                starting date under Section 7.10 shall be the Annuity Starting
                Date.

            

    

     

    
      	 	
              (2)

            	
              All
                provisions with respect to the time, form and amount of benefit shall
                apply as of the Annuity Starting Date. The form of benefit determined
                as
                of that date shall be final and shall not be reopened at later termination
                of employment. The amount of benefit for service to the Annuity Starting
                Date shall not be changed by later changes in Final Average
                Pay.

            

    

     

    
      	 	
              (3)

            	
              Additional
                accruals shall be calculated at each calendar year-end after the
                Annuity
                Starting Date as follows:

            

    

     

    
      	 	
              (i)

            	
              The
                additional benefit shall be based on additional service and on Final
                Average Pay as of the year-end. 

            

    

     

    
      	 	
              (ii)

            	
              Added
                benefits shall be in the form determined under (2)
                above.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              In
                the year in which the Employee terminates employment the date of
                termination shall be substituted for
                year-end.

            

    

     

    
      	 	
              (4)

            	
              The
                preretirement death benefit for a spouse under Section 5.5 will not
                apply
                if the Participant dies after the Annuity Starting
                Date.

            

    

     

    6.4    Disability
      Retirement Benefit.
      The
      annual benefit amount payable to a disabled Participant shall be computed in
      the
      same manner as the basic benefit under Section 6.1, determined on the basis
      of
      Years of Credited Service and Final Average Pay at retirement and Social
      Security Covered Compensation at Disability. Σ
      # Ω

     

    6.5    Spouse’s
      Benefit.
      The
      benefit payable to a Spouse who qualifies for a Spouse’s benefit under Section
      5.5 shall be determined as follows: 

     

    
      	 	
              (a)

            	
              If
                at death the Participant is age fifty-five (55) or over, or actively
                employed by the Employer with thirty (30) or more Years of Service,
                the
                benefit of the Spouse shall be the amount payable to the Spouse as
                Beneficiary under the survivor annuity portion of the Qualified Joint
                and
                Survivor Annuity with respect to the Participant, determined as though
                the
                Participant had retired on the first day of the month in which death
                occurs. On the death of a Participant with thirty (30) or more Years
                of
                Service before age fifty-five (55), the Participant shall be assumed
                to be
                age fifty-five (55) for purposes of this subparagraph
                (a).

            

    

     

    
      	 	
              (b)

            	
              If
                the Participant does not meet the requirements of (a), above, at
                death,
                the benefit of the Spouse shall be the amount payable to the Spouse
                as
                Beneficiary under the survivor annuity portion of the Qualified Joint
                and
                Survivor Annuity with respect to the Participant, determined as though
                the
                Participant had separated from service on the date of death, if not
                already separated, and had survived until age fifty-five
                (55).

            

    

     

    
      	 	
              (c)

            	
              Notwithstanding
                the foregoing, if at the time of death the Actuarial Value of the
                Participant’s Accrued Benefit is such that the provisions of Section 7.9
                would have applied to require a lump sum payment of such Participant’s
                Accrued Benefit if the Participant had terminated employment on the
                date
                or his or her death, the Spouse shall be paid the amount of the lump
                sum
                payment as determined under Section
                7.9.

            

    

     

    
      	 	
              (d)

            	
              In
                addition to any benefit to which a Spouse may be entitled under this
                Plan,
                a Spouse of a Participant who has a Platteville employee contribution
                account under Section 6.1(f)-1 to the Plan shall be entitled to a
                benefit
                upon the death of the Participant equal to the value of such account.
                Σ
                # Ω

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    6.6    Benefits
      for Terminated Vested Employees.

     

    
      	 	
              (a)

            	
              The
                benefit amount payable on or after Normal Retirement Age to a Participant
                who terminates employment prior to death, disability or meeting the
                requirements for Early Retirement under Section 5.2, and with a
                nonforfeitable interest (in whole or in part) in his accrued benefit
                hereunder shall be computed in accordance with Section 6.1, based
                on Years
                of Credited Service, Final Average Pay and Social Security Covered
                Compensation at termination of employment.

            

    

     

    
      	 	
              (b)

            	
              If
                a terminated vested Participant elects early commencement of benefits
                under Section 7.1(f), the benefit payable on such an early commencement
                of
                benefits shall be the Accrued Benefit, reduced to the Annuity Starting
                Date under the following table, interpolating between ages through
                the
                last full month. Σ
                # Ω 

            

    

     

    
      	
              Age
                at Annuity Starting Date

            	
              Benefit
                Percentage

            
	
              64

            	
              88%

            
	
              63

            	
              78%

            
	
              62

            	
              68%

            
	
              61

            	
              61%

            
	
              60

            	
              54%

            
	
              59

            	
              48%

            
	
              58

            	
              43%

            
	
              57

            	
              38%

            
	
              56

            	
              34%

            
	
              55

            	
              30%

            

    

    

    6.7    Reduction
      for Other Benefits.

     

    
      	 	
              (a)

            	
              If
                an Employee becomes entitled to workers’ compensation benefits for
                disability, the normal retirement basic benefit shall be reduced
                as
                follows: 

            

    

     

    
      	 	
              (1)

            	
              Each
                monthly benefit shall be reduced by the amount of any workers’
                compensation installment payment for that month.
                

            

    

     

    
      	 	
              (2)

            	
              The
                total benefit shall be reduced actuarially by the portion of any
                lump sum
                workers’ compensation award that is actuarially attributable to years
                after normal retirement date. 

            

    

     

    
      	 	
              (b)

            	
              If
                an Employee becomes entitled to benefits under any other defined
                benefit
                pension maintained by an Employer, based on service counted for purposes
                of determining Years of Credited Service under this Plan, the Employee’s
                benefit under this Plan shall be reduced by the Actuarial Equivalent
                of
                the Employee’s benefit based on such service under the other Plan.
                Ω

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    6.8    Cost
      of Living Adjustment.

     

    
      	 	
              (a)

            	
              The
                amount currently payable to each Participant who has no Hours of
                Service
                after December 31, 1987, or to the Spouse or other Beneficiary of
                such a
                Participant, shall be adjusted by the amount under (b), below, as
                follows:
                

            

    

     

    
      	 	
              (1)

            	
              The
                adjustment shall be made each January 1 beginning with the first
                January
                that is at least twelve (12) months after benefits payments
                commence.

            

    

     

    
      	 	
              (2)

            	
              The
                adjustment shall be made to the benefit actually being paid after
                conversion to an optional form.

            

    

     

    
      	 	
              (b)

            	
              The
                adjustment under (a) shall be the lesser
                of:

            

    

     

    
      	 	
              (1)

            	
              The
                percentage increase in the U.S. Consumer Price Index (all items)
                during
                the twelve (12) months ending with the September index preceding
                the
                adjustment date, and 

            

    

     

    
      	 	
              (2)

            	
              Two
                (2) Percent.

            

    

     

    
      	 	
              (c)

            	
              If
                the Consumer Price Index decreases during the period described in
                (b) (1), no downward adjustment in retirement benefits shall be made.
                Any such decrease shall offset any subsequent
                increases.

            

    

     

    
      	 	
              (d)

            	
              The
                benefit of a Participant who has Hours of Service after December
                31, 1987
                shall not be adjusted as provided above. The amount of the benefit
                shall
                be at least as much as the actuarial equivalent of the Participant’s
                accrued benefit under the Prior Plan as of December 31, 1987, including
                the value of potential cost-of-living adjustments.
                

            

    

     

    6.9    Death
      Benefit.
      The
      one-time benefit amount payable to a Participant’s Beneficiary who qualifies for
      a death benefit under Section 5.8 shall be $500.

     

    ARTICLE
      VII

    TIMING
      AND FORM OF BENEFIT PAYMENTS 

     

    7.1    Commencement
      of Benefits.
      Subject
      to the provisions of Sections 7.9 and 7.10, benefits to a Participant (or Spouse
      under Sections 5.5 and 6.5) shall commence as of the following dates:

     

    
      	 	
              (a)

            	
              For
                normal retirement benefits under Section 5.1 and 6.1, as of the last
                day
                of the month in which the Participant’s Normal Retirement Date occurs,
                unless the Participant elects deferred retirement.
                

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              For
                early retirement benefits under Section 5.2 and 6.2, benefits shall
                commence as of the last day of the month after the Participant attains
                Normal Retirement Age, unless the Participant elects to commence
                benefits
                as of the first day of any month coincident with or following the
                date of
                early retirement, in which event benefits shall commence as of the
                last
                day of such month.

            

    

     

    
      	 	
              (c)

            	
              For
                deferred retirement benefits under Sections 5.3 and 6.3, benefits
                shall
                commence as of the last day of the month following the first day
                of the
                month coinciding with or following the date on which the Participant
                actually retires and elects to commence receiving
                benefits.

            

    

     

    
      	 	
              (d)

            	
              For
                disability benefits under Sections 5.4 and 6.4, benefits shall commence
                as
                of the Participant’s Normal Retirement Age, provided that, if otherwise
                eligible for early retirement, the Participant may elect for benefits
                to
                commence on or after the Participant’s meeting the requirements for early
                retirement. If the Participant notifies the Committee in writing
                that
                disability benefits under this Plan would reduce any other disability
                benefit, the Committee shall defer payment until the other benefit
                stops.

            

    

     

    
      	 	
              (e)

            	
              For
                benefits of a Spouse under Section 5.5 and 6.5, benefits under Section
                6.5(a) shall commence as of the last day of the month following the
                first
                day of the month coinciding with or following the date of death of
                the
                Participant, benefits under Section 6.5(b) shall commence on the
                last day
                of the month following the first day of the month coinciding with
                or
                following the later of the date of death of the Participant or the
                date on
                which the Participant would have attained age fifty-five (55), and
                benefits for a Spouse under Section 6.5(d) shall be paid as soon
                as
                administratively feasible following the date of death of the
                Participant.

            

    

     

    
      	 	
              (f)

            	
              For
                benefits of a terminated vested Participant under Sections 5.6 and
                6.6,
                benefits shall normally commence as of the last day of the month
                after the
                Participant reaches Normal Retirement Age, provided that a Participant
                may
                elect to commence receiving benefits as of the last day of any month
                after
                the first day of the month coinciding with or following the date
                the
                Participant attains age fifty-five (55). In such event, benefits
                shall be
                reduced as provided in Section 6.6(b). Ω

            

    

     

    7.2    Normal
      Form.
      Unless a
      Participant elects another form of payment in accordance with Section
      7.3,

     

    
      	 	
              (a)

            	
              a
                Participant who is married as of the commencement date of his benefits
                shall receive benefits in the form of a Qualified Joint and Survivor
                Annuity.

            

    

     

    
      	 	
              (b)

            	
              a
                Participant who is not married on the commencement date of his benefits
                shall receive his benefits in the form of a Single Life
                Annuity.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    7.3    Waiver
      of Normal Form.

     

    
      	 	
              (a)

            	
              a
                Participant may elect, subject to the provisions of this Section
                7.3 and
                during the applicable election period, to waive the Normal Form of
                benefit
                and to receive his benefits in an optional form provided in Section
                7.7
                pursuant to the following terms and conditions:

            

    

     

    
      	 	
              (1)

            	
              a
                married Participant may elect to waive the QJSA provided in Section
                7.2(a)
                above in favor of an Alternative Joint and Survivor Annuity, a Single
                Life
                Annuity, or any other optional form of benefit provided in Section
                7.7.

            

    

     

    
      	 	
              (2)

            	
              an
                unmarried Participant may elect to waive the Single Life Annuity
                provided
                under Section 7.2(b) above in favor of any optional form of benefit
                provided in Section 7.7.

            

    

     

    
      	 	
              (3)

            	
              any
                election hereunder of an alternative form of benefit must specify
                such
                form, and any election of an alternative form of joint and survivor
                annuity must be accompanied by proof of the age of the designated
                Beneficiary satisfactory to the
                Committee.

            

    

     

    
      	 	
              (4)

            	
              a
                married Participant shall not be entitled to waive the Spouse’s benefit
                provided in Section 5.5.

            

    

     

    
      	 	
              (b)

            	
              Any
                election under this Section 7.3 may be revoked, either automatically
                in
                the circumstances described in Section 7.6, below, or by filing a
                written
                revocation with the Committee in a form and in a manner acceptable
                to the
                Committee. After any such revocation, a new election under Section
                7.3(a)
                above may be made at any time before the commencement of benefits
                to the
                Participant (or during such other period permitted or required by
                law).
                However, except as provided in Section 7.12(b) or as the Committee
                may
                otherwise provide on the basis of uniform and nondiscriminatory rules,
                any
                election under Section 7.3(a) shall be irrevocable after benefits
                have
                commenced to the Participant.

            

    

     

    7.4    Timing
      of Election and Spousal Consent.
      An
      election or revocation of an election under Sections 7.2 and 7.3 shall be
      subject to the following terms and conditions:

     

    
      	 	
              (a)

            	
              Any
                election or revocation of a form of benefit shall be made within
                the
                ninety (90) day period ending on the date of commencement of benefits
                to
                the Participant (or during such other period permitted or required
                by
                law), and shall be made by giving written notice in such form and
                manner
                as may be required by the
                Committee.

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              The
                election by a married Participant of any form of benefit other than
                a QJSA
                shall be ineffective unless the Spouse consents in writing to the
                election, the election designates a specific alternate Beneficiary,
                including any class of beneficiaries or any contingent Beneficiaries,
                and/or a form of benefit payment, which may not be changed without
                Spousal
                consent (or the Spouse expressly permits designations by the Participant
                without any further Spousal consent), the consent of the Spouse
                acknowledges the effect of the election, and the consent of the Spouse
                is
                witnessed by a notary public or plan representative. The consent
                of the
                Spouse must acknowledge the effect of the election of the form of
                benefit
                that the Participant has made, as well as the effect of the designation
                of
                any Beneficiary or Beneficiaries other than the Spouse which a Participant
                has made. The consent of the Spouse shall be irrevocable unless the
                Participant and the Spouse agree to a revocation.
                

            

    

     

    
      	 	
              (c)

            	
              Spousal
                consent as provided in (b), above, shall not be required if the Committee
                determines that the consent cannot be obtained because there is no
                Spouse,
                the Spouse cannot be located, or in any other circumstance specified
                by
                any written guidance issued by the Internal Revenue
                Service.

            

    

     

    
      	 	
              (d)

            	
              The
                consent of a Spouse pursuant to (b), above, shall be effective only
                with
                respect to that Spouse. Also, any establishment that the consent
                of a
                Spouse cannot be obtained under (c), above, shall be effective only
                with
                respect to that Spouse. A consent that permits designations by the
                Participant without any requirements of further consent by the Spouse
                must
                acknowledge that the Spouse has the right to limit consent to a specific
                Beneficiary, and a specific form of benefit where applicable, and
                that the
                Spouse voluntarily elects to relinquish either or both of such
                rights.

            

    

     

    
      	 	
              (e)

            	
              Any
                consent by a Spouse pursuant to (b), above, shall be effective only
                as
                long as the Participant makes no change in the designated Beneficiary
                or
                class of Beneficiaries.

            

    

     

    7.5    Notice
      Requirements.
      Not less
      than thirty (30) days nor more than ninety (90) days before the date of
      commencement of benefits to a Participant (or during such other period permitted
      or required by law), the Committee shall provide to each Participant a written
      notice that complies with the content and other requirements of Treasury
      Regulation § 1.417(a)(3)-1, including an explanation of:

     

    
      	 	
              (a)

            	
              The
                material features and relative financial values of the alternative
                forms
                of benefits to which the Participant is entitled, or which the Participant
                could elect to receive, under the
                Plan;

            

    

     

    
      	 	
              (b)

            	
              In
                the case of a married Participant, his right to elect to waive the
                Normal
                Form of benefit provided in Section 7.2(a) above, the effect of such
                an
                election, and the requirements (including any spousal consent
                requirements) applicable to his
                election;

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              In
                the case of an unmarried Participant, his right to elect or receive,
                and
                the effect of such an election, any other form of benefit as an
                alternative benefit to the normal form of benefit specified in Section
                7.2(b) above;

            

    

     

    
      	 	
              (d)

            	
              In
                the case of a Participant who is entitled to elect commencement of
                a form
                of payment before attaining Normal Retirement Age, his right not
                to elect
                such early commencement;

            

    

     

    
      	 	
              (e)

            	
              The
                terms and conditions (if any) under which an election by a Participant,
                or
                a consent by the Spouse of a married Participant, may be revoked,
                and the
                effect of such revocation; and

            

    

     

    
      	 	
              (f)

            	
              An
                explanation of the relative values of the alternative forms of benefit
                or
                a statement that the optional forms in question are approximately
                equal in
                value to the QJSA.

            

    

     

    The
      notice requirement contained in this Section 7.5 shall not apply in the case
      of
      a lump sum cash out distribution to a Participant pursuant to Section
      7.9.

     

    The
      commencement date for a benefit in a form other than a QJSA may be less than
      thirty (30) days after receipt of the written explanation described above
      provided: (a) the Participant has been provided with information that clearly
      indicates that the Participant has at least thirty (30) days to consider whether
      to waive the QJSA and elect (with Spousal consent) a form of distribution other
      than a QJSA; (b) the Participant is permitted to revoke any affirmative
      distribution election at least until the commencement date of his benefit or,
      if
      later, at any time prior to the expiration of the seven (7) day period that
      begins the day after the explanation of the QJSA is provided to the Participant;
      and (c) the commencement date of the Participant’s benefit is a date after the
      date that the written explanation was provided to the Participant.

     

    7.6    Special
      Rules for Death of Participant or Beneficiary.

     

    
      	 	
              (a)

            	
              If
                the designated Beneficiary with respect to an Alternative Joint and
                Survivor Annuity dies before the Annuity Starting Date for the
                Participant, the election of such annuity (including, if applicable,
                any
                election pursuant to Section 7.3, above, to waive the Spouse’s benefit)
                shall be void, and the Participant shall be deemed not to have previously
                elected an Alternative Joint and Survivor Annuity. If the designated
                Beneficiary with respect to an Alternative Joint and Survivor Annuity
                dies
                before the Participant, but after the Annuity Starting Date for the
                Participant, the amount of the benefit thereafter payable to the
                Participant shall not be affected in any way as a result
                thereof.

            

    

     

    
      	 	
              (b)

            	
              If
                a Participant dies before his Annuity Starting Date without having
                made a
                valid election of an optional form of payment described in Section
                7.7, no
                individual shall have a right to any payment under the Plan with
                respect
                to the Participant, unless the Participant is survived by a spouse
                who is
                entitled to a Spouse’s benefit.

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              If
                a Participant dies before his Annuity Starting Date after terminating
                employment with the Employer and after having made (and not revoked)
                a
                valid election of an Alternative Joint and Survivor Annuity leaving
                the
                designated Beneficiary with respect to the Alternative Joint and
                Survivor
                Annuity surviving him, the Beneficiary shall be eligible to receive
                the
                survivor annuity payable under such Alternative Joint and Survivor
                Annuity
                as if the Employee had died on the day following his Annuity Starting
                Date.

            

    

     

    
      	 	
              (d)

            	
              If
                a Participant dies before his Annuity Starting Date after terminating
                employment with the Employer and after having made (and not revoked)
                a
                valid election of a lump sum distribution described in Section 7.7(c),
                the
                lump sum distribution shall be paid to the Participant’s designated
                Beneficiary (or, if the Participant has not designated a Beneficiary,
                or
                if none of his designated Beneficiaries survives him, the lump sum
                distribution shall be paid to the executor of the Participant’s will or
                the administrator of his estate).

            

    

     

    
      	 	
              (e)

            	
              If
                a Participant dies before his Annuity Starting Date after terminating
                employment with the Employer and after having made (and not revoked)
                a
                valid election of a Ten-Year Certain and Life Annuity Option described
                in
                Section 7.7(d), the Participant’s designated Beneficiary shall be eligible
                to receive the ten-year certain payments pursuant to such option
                as if the
                Employee had died on the day following his Annuity Starting Date
                (or, if
                the Participant has not designated a Beneficiary, or if none of his
                designated Beneficiaries survives him, the ten-year certain payments
                pursuant to such option shall be paid to the executor of his will
                or the
                administrator of his estate).

            

    

     

    
      	 	
              (f)

            	
              If
                a Participant dies on or after his Annuity Starting Date, any distribution
                that was scheduled to be paid to him on or before his date of death
                but
                that was not paid to him on or before his date of death due to
                administrative or other delay, shall be paid instead to the executor
                of
                his will or the administrator of his estate. Σ
                # Ω

            

    

     

    7.7    Optional
      Forms of Payment.

     

    
      	 	
              (a)

            	
              Alternative
                Joint and Survivor Annuity.

            

    

     

    
      	 	
              (1)

            	
              Under
                the Alternative Joint and Survivor Annuity, a reduced amount shall
                be
                payable to the retired Employee for his lifetime. The Beneficiary,
                if
                surviving at the retired Employee’s death, shall be entitled to receive
                thereafter a lifetime survivor benefit in an amount equal to 100
                percent
                of the reduced amount that had been payable to the retired
                Employee.

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              The
                reduced amount payable to the retired Employee shall be the Actuarial
                Equivalent of the amount determined under Section 6.1, 6.2, 6.3 and/or
                6.4, as the case may be. The appropriate actuarial factor shall be
                determined for any Employee and his Beneficiary as of the commencement
                date of the Employee’s benefits.

            

    

     

    
      	 	
              (3)

            	
              If
                an Employee designates any individual other than his or her spouse
                as his
                Beneficiary, the annual amount of the Employee’s annuity under the
                Alternative Joint and Survivor Annuity shall be not less than fifty
                percent (50%) of the annual benefit calculated as a single life annuity,
                and the Beneficiary’s survivor annuity under the Alternative Joint and
                Survivor Annuity shall be reduced to the extent necessary to reflect
                any
                adjustment required by this paragraph (3) in the amount of the Employee’s
                annuity under the Alterative Joint and Survivor
                Annuity.

            

    

     

    
      	 	
              (b)

            	
              Qualified
                Optional Survivor Annuity (“QOSA”).
                (Effective January 1, 2008, unless the IRS or Treasury Department
                issues
                guidance obviating the need for the Plan to add the QOSA, in which
                case
                this Section 7.7(b) shall not go into
                effect.)

            

    

     

    
      	 	
              (1)

            	
              Under
                the QOSA, a reduced amount shall be payable to the retired Employee
                for
                his lifetime. The Beneficiary, if surviving at the retired Employee’s
                death, shall be entitled to receive thereafter a lifetime survivor
                benefit
                in an amount equal to 75 percent of the reduced amount that had been
                payable to the retired Employee.

            

    

     

    
      	 	
              (2)

            	
              The
                reduced amount payable to the retired Employee shall be the Actuarial
                Equivalent of the amount determined under Section 6.1, 6.2, 6.3 and/or
                6.4, as the case may be. The appropriate actuarial factor shall be
                determined for any Employee and his Beneficiary as of the commencement
                date of the Employee’s benefits.

            

    

     

    
      	 	
              (c)

            	
              Lump
                Sum Distribution Option.

            

    

     

    
      	 	
              (1)

            	
              Any
                Employee who qualifies for a benefit under Section 5.1, 5.2, 5.3,
                5.4 or
                5.6 may elect to receive his or her benefit in the form of a lump
                sum
                distribution if the Actuarial Value of the vested, accrued benefit
                of the
                Participant under the Plan (and disregarding any benefit of the
                Participant under the Constituent Plans) is over $5,000 (effective
                for
                distributions made on or after March 28, 2005, this amount shall
                be
                $1,000) but not over $10,000. The amount of any such lump sum distribution
                shall be the Actuarial Equivalent (as of the Annuity Starting Date
                for the
                Employee) of his benefit computed under Section 6.1 (or in the case
                of a
                terminated vested Employee’s benefit, as computed under Section 6.6) as a
                single life annuity commencing on his Annuity Starting
                Date.

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              If
                the Actuarial Value of the Spouse’s death benefit under Section 5.5 and
                6.5 is greater than $5,000 (effective for distributions made on or
                after
                March 28, 2005, this amount shall be $1,000) and not over $10,000,
                the
                Spouse may elect to receive his or her benefits as a lump sum.
                

            

    

     

    
      	 	
              (3)

            	
              Notwithstanding
                anything to the contrary in Section 7.7, the payment of a benefit
                in the
                form of a lump sum distribution shall be made in a single taxable
                year of
                the recipient and shall be made on or as soon as practicable after
                the
                commencement date of the Employee’s
                benefits.

            

    

     

    
      	 	
              (d)

            	
              Ten-Year
                Certain and Life Annuity Option.
                A
                Participant in the Plan shall be eligible to elect to receive his
                benefits
                in the form of an annuity that is actuarially equivalent to the Plan’s
                Single Life Annuity and that provides equal monthly payments for
                the life
                of the Participant, with the condition that if the Participant dies
                before
                he has received one-hundred twenty (120) monthly payments, the
                Participant’s designated Beneficiary shall receive monthly payments in the
                same amount as the Participant until a total of one-hundred twenty
                (120)
                monthly payments have been made to the Participant and his Beneficiary
                combined.

            

    

     

    
      	 	
              (e)

            	
              Early
                Retirement Annuity Option.
                On Early Retirement, a Participant in the Plan shall be eligible
                to elect
                to receive his benefits in the form of an annuity that is Actuarially
                Equivalent to the Plan’s Single Life Annuity under which the monthly
                payments before first eligibility for Social Security retirement
                benefits
                (either age 62 or age 65, as elected by the Participant) are increased
                by
                a temporary supplement and the remaining payments are reduced so
                as to
                provide approximately equal payments throughout when combined with
                Social
                Security.

            

    

     

    
      	 	
              (f)

            	
              Lump
                Sum Option for Qualifying Participants.

            

    

     

    
      	 	
              (1)

            	
              Right
                to Lump Sum .
                Each Qualifying Participant or, in the event of the Qualifying
                Participant’s death prior to the Qualifying Participant’s Annuity Starting
                Date, such Qualifying Participant’s surviving Spouse, may elect to have
                his or her Qualifying Benefit paid as a lump sum as of any Qualifying
                Distribution Date. Such election shall be made in writing on a form
                provided by the Committee and must be consented to in writing by
                the
                Qualifying Participant’s Spouse, if any. If the Qualifying Participant
                dies prior to the Qualifying Participant’s Annuity Starting Date without a
                surviving Spouse, the Qualifying Benefit shall be paid as a lump
                sum as of
                the earliest Qualifying Distribution Date to the Participant’s
                Beneficiary.

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              Qualifying
                Distribution Date.
                “Qualifying Distribution Date” means the first day of any month beginning
                after the date the Qualifying Participant attains his Early Retirement
                Date. 

            

    

     

    
      	 	
              (3)

            	
              Qualifying
                Participant.
                “Qualifying Participant” means each Participant who is entitled to an
                Enhanced Annuity as specified in Schedule 6.1(a)(5).
                

            

    

     

    
      	 	
              (4)

            	
              Qualifying
                Benefit.
                “Qualifying Benefit” means the Participant’s Enhanced Annuity, as
                described in Schedule 6.1(a)(5).

            

    

     

    
      	 	
              (5)

            	
              Spousal
                Consent.
                Spousal consent to a lump sum distribution under this Section
                7.7(e) must
                be provided on a form prescribed by the Committee, acknowledging
                the
                effect of the Qualifying Participant’s election of a single sum
                distribution, signed by the Qualifying Participant and the Qualifying
                Participant’s Spouse and witnessed by a notary public. Spousal consent
                will be effective only with respect to the Spouse who signs the consent.
                The election made by the Qualifying Participant with Spousal consent
                may
                be revoked by the Qualifying Participant without Spousal consent
                at any
                time prior to the date benefit payments begin. Such revocation shall
                be
                effected by written notification to the Committee. Σ
                # Ω

            

    

     

    7.8    Annuity
      Form of Payment.
      All
      benefits, except those benefits paid in a lump sum distribution pursuant to
      Section 7.7(c) or 7.9, shall be payable in monthly installments as follows:
      

     

    
      	 	
              (a)

            	
              The
                first installment shall be paid to the retired Employee (or Spouse,
                in the
                case of a Spouse’s benefit) as of the commencement date determined in
                accordance with Section 7.1;

            

    

     

    
      	 	
              (b)

            	
              Where
                installments are to be paid to a Beneficiary under an Alternative
                Joint
                and Survivor Annuity, the first installment to the Beneficiary shall
                be
                paid as of the beginning of the first month following the death of
                the
                Participant;

            

    

     

    
      	 	
              (c)

            	
              The
                final installment shall be paid as of the beginning of the month
                during
                which the death of the retired Employee or Beneficiary, as the case
                may
                be, occurs, except that disability benefit installments shall cease
                prior
                to the death of the retired Employee if and when such Employee ceases
                to
                satisfy the disability conditions of Section 5.4;
                and

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              A
                check in payment of a monthly installment may be mailed, in the discretion
                of the Committee, before the date as of which the payment is
                made.

            

    

     

    7.9    Mandatory
      Lump Sum Distribution of Small Benefits.
      If a
      former Employee is entitled to a termination benefit and the Actuarial Value
      of
      such termination benefit does not exceed $5,000 (effective for distributions
      made on or after March 28, 2005, this amount shall be $1,000), the former
      Employee shall receive such termination benefit in the form of a lump sum
      payment equal to the Actuarial Value of the termination benefit otherwise
      payable to him under the Plan. If a Spouse is entitled to a Spouse’s benefit and
      the Actuarial Value of such Spouse’s benefit does not exceed $5,000 (effective
      for distributions made on or after March 28, 2005, this amount shall be $1,000),
      the Spouse shall receive such Spouse’s benefit in the form of a lump sum payment
      equal to the Actuarial Value of the Spouse’s benefit otherwise payable to the
      Spouse under the Plan. Notwithstanding the foregoing, this Section 7.9 shall
      not
      apply in the case of a former Employee or a Spouse who is otherwise eligible
      to
      elect immediate commencement of a termination benefit or Spouse’s
      benefit.

     

    7.10  
        Minimum
      Distributions Required Under Code Section 401(a)(9).
      The
      following subsections limit the timing of benefit distributions under the
      Plan:

     

    
      	 	
              (a)

            	
              Any
                benefit that is payable to a Participant hereunder shall be distributed
                or
                commence not later than the Participant’s Required Beginning Date. The
                benefit shall be distributed, in accordance with Section 401(a)(9)
                of the
                Code (including the incidental benefit rules applicable thereunder)
                ,
                

            

    

     

    
      	 	
              (1)

            	
              in
                a lump sum (to the extent otherwise permitted under the Plan, including,
                without limitation, under Section 7.7(c) or 7.9),
                

            

    

     

    
      	 	
              (2)

            	
              over
                the life of the Participant,

            

    

     

    
      	 	
              (3)

            	
              over
                the lives of the Participant and the Participant’s
                Beneficiary,

            

    

     

    
      	 	
              (4)

            	
              over
                a period not extending beyond the Participant’s life expectancy,
                or

            

    

     

    
      	 	
              (5)

            	
              over
                a period not extending beyond the joint and last survivor expectancy
                of
                the Participant and the Participant’s
                Beneficiary.

            

    

     

    If
      the
      Participant’s entire interest is to be distributed over a period of more than
      one (1) year, then the amount to be distributed each year shall be no less
      than
      the amount prescribed under Section 401(a)(9) of the Code.

     

    
      	 	
              (b)

            	
              If
                the distribution of the Participant’s benefit has commenced in conformity
                with subsection (a), above, and the Participant dies before his entire
                benefit has been distributed to him, the remaining portion of his
                benefit
                shall be distributed to his Beneficiary at least as rapidly as under
                the
                method of distribution that was in effect as of the date of the
                Participant’s death.

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              Subject
                to subsection (d), below, if the Participant dies before distribution
                of
                his benefit has commenced, any benefit that is payable under the
                terms of
                the Plan shall be distributed within five (5) years after the
                Participant’s death.

            

    

     

    
      	 	
              (d)

            	
              SubSection
                (c), above, shall not apply to:

            

    

     

    
      	 	
              (1)

            	
              any
                portion of the Participant’s benefit payable to (or for the benefit of) a
                Beneficiary that is distributed (in accordance with Section 401(a)(9)
                of
                the Code) over the Beneficiary’s life (or a period not extending beyond
                his life expectancy) commencing within one (1) year after the date
                of the
                Participant’s death (or such later date as may be prescribed under Section
                401(a)(9) of the Code), or

            

    

     

    
      	 	
              (2)

            	
              any
                portion of the Participant’s benefit payable to his Spouse that is
                distributed over the Spouse’s life (or a period not extending beyond the
                Spouse’s life expectancy) commencing no later than the date on which the
                Participant would have attained age 70 1⁄2; provided that if the Spouse dies
                before payments to such Spouse begin, subsections (c) and (d) shall
                apply
                as if the Spouse were the Participant; and further provided that
                any
                amount paid to the child of the Participant shall be treated as if
                it had
                been paid to the Spouse of the Participant if such amount is payable
                to
                the Spouse upon such child’s reaching majority (or such other event as may
                be prescribed by the regulations under Section 401(a)(9) of the
                Code).

            

    

     

    
      	 	
              (e)

            	
              For
                purposes of this Section 7.10, the life expectancy of the Participant
                and
                his Spouse shall be recomputed on an annual basis, but the life expectancy
                of any non-Spouse Beneficiary shall be computed only on the date
                as of
                which the distribution commences. 

            

    

     

    
      	 	
              (f)

            	
              This
                Section 7.10 shall apply notwithstanding any other provision of the
                Plan.
                The sole purpose of this Section 7.10 is to limit the manner in which
                the
                benefit payments may be made under the Plan in accordance with Section
                401(a)(9) of the Code. This Section 7.10 does not confer any rights
                or
                benefits upon any Participant, spouse, Beneficiary, or any other
                person.

            

    

     

    
      	 	
              (g)

            	
              This
                Section 7.10 shall not apply to any method of distribution designated
                in
                writing by a Participant under the terms of the Plan or a Prior Plan
                before January 1, 1984, in accordance with Section 242(b)(2) of the
                Tax
                Equity and Fiscal Responsibility Act of 1982 (as in effect before
                the
                amendments made by the Tax Reform Act of
                1984).

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    
      	 	
              (h)

            	
              Any
                Participant who does not elect a form of distribution before his
                distribution is required to commence under this Section 7.10 shall
                receive
                the distribution in the form provided for under Section
                7.2.

            

    

     

    7.11  
        Early
      Commencement Election.
      Notwithstanding any other provision in the Plan, and subject to the provisions
      of Sections 7.2-7.6 and Section 7.9, the Participant (or his Spouse, in the
      case
      of a Spouse’s benefit) may elect a commencement date that precedes the normal
      commencement date if he is otherwise eligible to do so under the terms of the
      Plan. The election shall be in writing, in a form acceptable to the Committee,
      and executed and filed with the Committee during the ninety (90) day period
      ending on the commencement date of the Employee’s benefits, or during such other
      period permitted or required by law.

     

    7.12  
        Suspension
      of Benefits.

     

    
      	 	
              (a)

            	
              No
                benefit shall be paid or payable with respect to a Participant (including
                a retired or terminated Employee) during any month in which he is
                credited
                with forty (40) or more Hours of Service as a regular or temporary
                employee of the Employer. For purposes of this Section 7.12 only,
                the term
                “Employer” shall mean the applicable Employer and any Affiliate of such
                Employer (as determined under Section 2.4). Thus,
                

            

    

     

    
      	 	
              (1)

            	
              a
                retired or terminated Employee’s benefit shall be suspended during any
                month during which he is credited with forty (40) or more Hours of
                Service
                as a regular or temporary employee of the Employer; and
                

            

    

     

    
      	 	
              (2)

            	
              the
                benefit of a Participant other than a retired or terminated Employee
                shall
                be suspended during any month during which he is credited with forty
                (40)
                or more Hours of Service as a regular or temporary employee of the
                Employer.

            

    

     

    The
      preceding provisions of this subsection (a) shall apply, even though the retired
      or terminated Employee’s or Participant’s service as a regular or temporary
      employee of the Employer does not constitute “Section 203(a)(3)(B) service”
described in 29 C.F.R. §2530.203-3(c), and even though the procedures regarding
      notice, review, and administration otherwise prescribed under 29 C.F.R.
§2530.203-3 are not observed. 

     

    
      	 	
              (b)

            	
              If
                a Participant (including a retired or terminated Employee) is reemployed
                or remains in employment as a regular or temporary employee of the
                Employer, as described in subsection (a), above, the commencement
                date of
                his benefit shall occur no earlier than the first day of the first
                month
                in which he ceases to be so employed, and his benefit shall be calculated,
                in accordance with Sections 4.3 and 4.4, to take such employment
                into
                account. If a retired or terminated Employee, subject to subsections
                (a)(1) or (2), above, becomes entitled to have his benefit resume,
                the
                amount and form of the benefit shall be governed by the generally
                applicable provisions of the Plan, as if he had then first
                retired.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              The
                benefit of a Participant who works past his age 65 Normal Retirement
                Age
                will be determined in accordance with Section
                6.3.

            

    

     

    
      	 	
              (d)

            	
              If
                an Employee subject to subsection (a)(1) or (2), above, previously
                received a total distribution of his benefit in accordance with Sections
                7.7(b) or 7.9, the amount of the Single Life Annuity used to determine
                his
                benefit upon retirement under subsection (b), above, shall be reduced
                by
                the amount of the Single Life Annuity upon which such total distribution
                was based. 

            

    

     

    7.13  
        Eligible
      Rollover Distributions.

     

    
      	 	
              (a)

            	
              Notwithstanding
                any provision of the Plan to the contrary that would otherwise limit
                a
                distributee’s election under this Section 7.13, 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.

            

    

     

    
      	 	
              (b)

            	
              Definitions.

            

    

     

    
      	 	
              (1)

            	
              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: 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 (10) 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 eligible rollover
                distributions or the exclusion for net unrealized appreciation with
                respect to employer securities). For distributions made after December
                31,
                2001, 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 includable in gross income.
                However,
                such portion may be transferred only to an individual retirement
                account
                or annuity described in Code Section 408(a) or (b), or to a qualified
                defined contribution plan described in Code Section 401(a) or 403(a)
                that
                agrees to separately account for amounts so transferred, including
                separately accounting for the portion of such distribution which
                is
                includable in gross income and the portion of such distribution which
                is
                not so includable.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    
      	 	
              (2)

            	
              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. For distributions made after December 31, 2001,
                an
                eligible retirement plan shall also mean an annuity contract described
                in
                Code Section 403(b) and an eligible plan under Code Section 457(b)
                which
                is maintained by a state, political subdivision of a state, or any
                agency
                or any 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
                relations order, as defined in Code Section
                414(p).

            

    

     

    
      	 	
              (3)

            	
              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. 

            

    

     

    
      	 	
              (4)

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

            

    

     

    ARTICLE
      VIII

    MEDICAL
      BENEFITS 

     

    8.1    Eligibility.

     

    
      	 	
              (a)

            	
              Medical
                benefits under this Article shall be provided to a Participant, or
                the
                dependents of a Participant, who: 

            

    

     

    
      	 	
              (1)

            	
              Has
                terminated employment, commenced receiving pension benefits on early,
                normal or deferred retirement, and qualifies for post-retirement
                medical
                benefits under the CenturyTel, Inc. Welfare Benefits Plan or successor
                thereto,

            

    

     

    
      	 	
              (2)

            	
              Retires
                and commences benefits on or after January 1,
                1998,

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (3)

            	
              Is
                not covered by a collective bargaining agreement at retirement, and
                

            

    

     

    
      	 	
              (4)

            	
              Has
                never been a “key employee” as defined in Section 416(i) of the Internal
                Revenue Code.

            

    

     

    
      	 	
              (b)

            	
              The
                term “benefits” used alone in this Plan shall refer to pension benefits
                under Article V and Article VI and not to medical benefits provided
                under
                this Article.

            

    

     

    8.2    Medical
      Benefits.

     

    
      	 	
              (a)

            	
              The
                medical benefits provided under this Plan to Participants eligible
                under
                Section 8.1 shall be all medical benefits, as defined in Internal
                Revenue
                Code Section 213(d)(1), provided to such Participants after retirement
                under the CenturyTel, Inc. Welfare Benefits Plan or successor thereto.
                The
                provisions of such Welfare Benefits Plan can limit medical benefits
                to
                retired Participants who meet further eligibility requirements. Any
                medical benefits to which retired Participants are entitled under
                such
                Welfare Benefits Plan that are not provided under this Plan due to
                insufficiency of funding or otherwise, shall be paid from a welfare
                benefits trust established by the Company for that purpose or from
                the
                Employer’s general assets.

            

    

     

    
      	 	
              (b)

            	
              The
                document evidencing the CenturyTel, Inc. Welfare Benefits Plan or
                successor thereto, including all of the separate documents incorporated
                into it, is incorporated by reference as part of this Plan. This
                incorporation by reference shall include any amendments made from
                time to
                time to the CenturyTel, Inc. Welfare Benefits Plan and any successor
                plan.
                

            

    

     

    8.3    Separate
      Medical Benefits Account.

     

    
      	 	
              (a)

            	
              Subject
                to 8.4, each Employer may make contributions to fund the medical
                benefits
                provided in Section 8.2 for its Employees. A separate account shall
                be
                maintained for all such contributions, and earnings on them. Any
                medical
                benefits for Participants shall be paid only from such account.
                

            

    

     

    
      	 	
              (b)

            	
              Investment
                earnings and losses of the trust fund shall be allocated to the accounts
                in Section 8.3(a) in proportion to the investment earnings and losses
                of
                the entire trust. 

            

    

     

    8.4    Limitation
      on Contributions.
      The
      aggregate actual contributions (measured from January 1, 1989) to fund medical
      benefits shall not exceed twenty five (25) percent of the total actual
      contributions (measured from January 1, 1989) to the Plan, disregarding in
      such
      total any contributions to fund past service credits. 

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    8.5    Satisfaction
      of Liabilities.

     

    
      	 	
              (a)

            	
              Unless
                all obligations under Section 8.2 have been satisfied, no part of
                the
                medical benefits account shall be used for any purpose other than
                payment
                of either of the following:

            

    

     

    
      	 	
              (1)

            	
              Medical
                benefits.

            

    

     

    
      	 	
              (2)

            	
              Necessary
                or appropriate expenses attributable to the administration of the
                medical
                benefits account.

            

    

     

    
      	 	
              (b)

            	
              Following
                satisfaction of the obligations under Section 8.2, any amounts remaining
                in the medical benefits account shall be returned to the Employers
                on an
                equitable basis as determined by the
                Committee.

            

    

     

    8.6    Forfeiture
      of Benefits.
      If a
      person’s interest in the medical benefits account is forfeited prior to
      termination of the Plan, the amount forfeited shall be applied as soon as
      possible to reduce the Employer’s contributions to fund medical
      benefits.

     

    ARTICLE
      IX

    FUNDING

     

    9.1    Plan
      Assets.
      The
      assets of the Plan shall be held in of one or more Trust Funds and/or one or
      more arrangements with insurance companies for the funding of benefits, as
      determined by the Company.

     

    9.2    Trust
      Agreement.
      Each
      Trust Fund shall be established and maintained pursuant to a Trust Agreement
      that contains such provisions as the Company shall determine. The terms of
      each
      Trust Agreement are hereby incorporated into and made a part of the Plan. The
      assets of the Trust created in each Trust Agreement shall be available to pay
      all benefits under the Plan.

     

    9.3    Insurance
      Arrangements.
      Each
      arrangement with an insurance company shall be established and maintained
      pursuant to a written contract or policy between the Company and an insurance
      company qualified to do business in a State, which shall contain such provisions
      as the Company shall determine.

     

    9.4    Contributions.
      The
      Company intends to make contributions to the Plan sufficient to comply with
      the
      minimum funding standards imposed by the Code. The Company’s contributions shall
      be determined annually, or more frequently, by the Board. Each contribution
      made
      to the Plan shall be made on the condition that it is currently deductible
      under
      Section 404 of the Code for the taxable year with respect to which the
      contribution is made and without regard to any subsequent amendment improving
      benefits under the Plan. 

     

    9.5    Exclusive
      Benefit.
      Except
      as provided in this Section 9.5 and in Section 9.6, all Company contributions
      to
      the Plan and all property of the Plan, including income from investments and
      other sources, shall be used for the exclusive benefit of Employees, retired
      Employees, former Employees, and Beneficiaries and shall be used to provide
      benefits under the Plan and to pay the reasonable expenses of administering
      the
      Plan and the Trust, except to the extent that such expenses are paid by the
      Company. Any forfeitures arising under the Plan shall be applied to reduce
      the
      Company’s contributions to the Plan and shall not be used to increase the
      benefit that any Employee, retired Employee, former Employee, or Beneficiary
      would otherwise be entitled to receive under the Plan. Except as provided in
      Section 9.6, it shall be impossible at any time prior to the satisfaction of
      all
      liabilities under the Plan for any portion of the assets of the Plan to be
      used
      for, or diverted to, purposes other than the exclusive benefit of Employees,
      retired Employees, former Employees, and Beneficiaries; provided, however,
      that
      after all liabilities under the Plan have been satisfied, any assets remaining
      in the Trust that are attributable to erroneous actuarial computations shall
      be
      distributed to the Company, except as otherwise required by Section
      4044(d)(3)(A) of ERISA.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    9.6    Return
      of Contributions.
      Notwithstanding any other provision of the Plan, the Company shall be entitled
      upon request to the return of any contribution made to the Plan (adjusted,
      in
      the case of any contribution described in subsection (a) or (c), below, to
      reflect any investment losses allocable thereto, but not to reflect any
      investment gains allocable thereto):

     

    
      	 	
              (a)

            	
              within
                one (1) year after the payment of the contribution, in the case of
                a
                contribution made by mistake of
                fact;

            

    

     

    
      	 	
              (b)

            	
              within
                one (1) year after the date of denial of the Plan’s qualification, if the
                contribution is conditioned on initial qualification of the Plan
                under
                Section 401(a) of the Code; or

            

    

     

    
      	 	
              (c)

            	
              within
                one (1) year after the disallowance of the deduction, to the extent
                the
                deduction is disallowed, if the contribution is conditioned on the
                deductibility of the contribution under Section 404 of the
                Code.

            

    

     

    9.7    Prohibition
      Against Assignment or Alienation of Benefits.
      Benefits
      under the Plan may not be anticipated, assigned (either at law or in equity),
      alienated, or subjected to attachment, garnishment, levy, execution, or other
      legal or equitable process, provided that:

     

    
      	 	
              (a)

            	
              an
                arrangement whereby benefit payments are paid to a Participant’s savings
                or checking account in a financial institution is not prohibited;
                

            

    

     

    
      	 	
              (b)

            	
              once
                a Participant begins receiving benefits under the Plan, such Participant
                may assign or alienate the right to future payments if such transaction
                is
                limited to assignments or alienations
                that:

            

    

     

    
      	 	
              (1)

            	
              are
                voluntary and revocable,

            

    

     

    
      	 	
              (2)

            	
              with
                respect to a particular benefit payment, do not in the aggregate
                exceed
                ten percent (10%) of such payment,
                and

            

    

     

    
      	 	
              (3)

            	
              neither
                are for the purpose, nor have the effect, of defraying administrative
                costs of the Plan; and

            

    

     

    
      	 	
              (c)

            	
              payments
                made in accordance with a Qualified Domestic Relations Order are
                not
                prohibited.

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    For
      purposes of subsection (b), above, an attachment, garnishment, levy, execution
      or other legal or equitable process is not considered a voluntary assignment
      or
      alienation. 

     

    ARTICLE
      X

    FIDUCIARY
      RESPONSIBILITIES AND PLAN ADMINISTRATION

     

    10.1  
        Allocation
      of Fiduciary Responsibilities.
      Fiduciary responsibilities in connection with the Plan shall be allocated in
      accordance with the provisions of this Article X and shall be carried out in
      accordance with the Plan and applicable law. It is intended that, to the extent
      permitted by applicable law, each fiduciary shall be obligated to discharge
      only
      the responsibilities assigned to him and that he shall not be charged with
      the
      responsibilities assigned to any other fiduciary.

     

    10.2  
        Committee.
      Committee shall serve as the Administrator, as defined in ERISA Section
      3(16)(A). The Committee is also the Named Fiduciary, as defined in ERISA Section
      402(a)(2). The Committee shall be charged with the full power and responsibility
      for administering the Plan in accordance with the terms and delegations stated
      in the Plan and the Charter of the CenturyTel Retirement Committee (the
“Charter”), except as the Board shall otherwise expressly
      determine.

     

    10.3  
        Duties
      and Responsibilities of Fiduciaries.
      A Plan
      fiduciary shall have only those specific powers, duties, responsibilities and
      obligations as are explicitly given him under the Charter, Plan and Trust
      Agreement and shall not be responsible for any act or failure to act of another
      fiduciary. In general, the Employer shall have the sole responsibility for
      making contributions to the Plan, appointing the Trustee and the members of
      the
      Committee, and determining the funds available for investment under the Plan.
      The Committee shall have the sole responsibility for the administration of
      the
      Plan, as more fully described in Section 10.4 of the Plan.

     

    10.4  
        Plan
      Administrator.
      The
      Committee shall be responsible for the administration of the Plan. In addition
      to any implied powers and duties that may be necessary or appropriate to the
      conduct of its affairs, the Committee shall have the following powers and
      duties, including the discretionary power:

     

    
      	 	
              (a)

            	
              to
                make and enforce such rules and regulations as it shall determine
                to be
                necessary or proper for the administration of the
                Plan;

            

    

     

    
      	 	
              (b)

            	
              to
                interpret the Plan and to decide all matters arising thereunder,
                including
                the right to remedy possible ambiguities, inconsistencies, and
                omissions;

            

    

     

    
      	 	
              (c)

            	
              to
                determine the right of any person to benefits under the Plan and
                the
                amount of such benefits;

            

    

     

    
      	 	
              (d)

            	
              to
                issue instructions to a Trustee or insurance company to make disbursements
                from the Trust, and to make any other arrangement necessary or appropriate
                to provide for the orderly payment and delivery of disbursements
                from the
                Trust;

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              to
                delegate to other persons such of its responsibilities as it may
                determine;

            

    

     

    
      	 	
              (f)

            	
              to
                retain an enrolled actuary;

            

    

     

    
      	 	
              (g)

            	
              to
                employ suitable agents, actuaries, auditors, legal counsel, and other
                advisers as it may determine;

            

    

     

    
      	 	
              (h)

            	
              to
                allocate among its members such of its responsibilities as it may
                determine; and

            

    

     

    
      	 	
              (i)

            	
              to
                prepare, file, and distribute such forms, statements, descriptions,
                returns, and reports relating to the Plan as may be required by
                law.

            

    

     

    The
      foregoing list of express powers is not intended to be either complete or
      conclusive, but the Committee shall, in addition, have such powers as it may
      reasonably determine to be necessary to the performance of its duties under
      the
      Plan. The decision or judgment of the Committee on any question arising in
      connection with the exercise of any of its powers or any matter of Plan
      Administration or the determination of benefits shall be final, binding and
      conclusive upon all parties concerned.

     

    10.5  
        Committee
      Reliance on Professional Advice.
      The
      Committee is authorized to obtain, and act on the basis of, tables, valuations,
      certificates, opinions, and reports furnished by an enrolled actuary,
      accountant, legal counsel, or other advisors.

     

    10.6  
        Plan
      Administration Expenses.
      All
      reasonable expenses of administering the Plan (including, without limitation,
      the expenses of the Committee) shall be paid out of the assets of the Trust,
      in
      accordance with and to the extent provided in the provisions of the Trust
      Agreement, except to the extent paid by the Company without request by the
      Company for reimbursement from the Trust. Notwithstanding the foregoing
      sentence, the Employer may direct the Trustee to charge reasonable
      administrative expenses of the Plan to Participants, including but not limited
      to fees to process domestic relations orders, but only to the extent that such
      charges to Participants are consistent with ERISA and interpretative guidance
      thereunder issued by the DOL.

     

    10.7  
        Responsibilities
      of Trustee.
      Each
      Trustee shall be responsible for the custody of the assets of the Plan assigned
      to it, making disbursements at the order of the Committee, and accounting for
      all receipts and disbursements the assets of the Plan assigned to
      it.

     

    10.8  
        Investment
      Management by Trustee.
      Each
      Trustee shall be responsible for managing the investment of the Plan assets
      in
      its custody, or any part thereof, when directed to do so by the Committee in
      accordance with the terms of the Trust Agreement.

     

    10.9  
        Allocation
      of Investment Management Responsibilities.
      The
      Committee shall have the sole fiduciary responsibility for determining whether
      investment of the Plan assets held by a Trustee shall be managed by the Trustee,
      or by one or more investment managers, or whether both the Trustee and one
      or
      more investment managers are to participate in investment management and, if
      so,
      how investment responsibility is to be divided.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    10.10
        Appointment
      and Removal of Investment Managers.
      The
      Committee shall have the sole fiduciary responsibility for the appointment
      or
      removal of any investment manager and shall enter into an investment management
      agreement with each investment manager appointed by it on such terms and
      conditions consistent with the provisions of this Plan as it shall deem
      advisable. Each investment manager shall be responsible for managing the
      investment of such portion of the Trust as shall be placed under its management
      pursuant to the investment management agreement. 

     

    10.11
        Ascertainment
      of Plan Financial Needs.
      The
      Committee shall have the sole fiduciary responsibility for periodically
      ascertaining the financial needs of the Plan, including the Plan’s liquidity
      needs, and shall convey the pertinent information to the Trustee and/or
      investment managers responsible for managing the investments of the
      Trust.

     

    10.12
        Benefit
      Claim Procedure.

     

    
      	 	
              (a)

            	
              If
                an individual is denied any benefits (in whole or in part) to which
                he
                believes he is entitled under the Plan, he may file a claim for benefits
                as set forth herein. Any claim for benefits under the Plan shall
                be
                delivered in writing by the claimant to the Committee. The claim
                shall
                identify the benefits requested and shall include a statement of
                the
                reasons why the benefits should be granted. The Committee shall grant
                or
                deny the claim. If the claim is denied in whole or in part, the Committee
                shall give written or electronic notification to the claimant, setting
                forth: (1) the reasons for the denial, (2) specific reference to
                pertinent
                Plan provisions on which the denial is based, (3) a description of
                any
                additional material or information necessary for the perfection of
                the
                claim and an explanation of why such material or information is necessary,
                and (4) an explanation of the Plan’s claim review procedure and the time
                limits applicable to such procedures, including a statement of the
                claimant’s right to bring a civil action under Section 502(a) of ERISA.
                The notice described in the preceding sentence shall be furnished
                to the
                claimant within a period of time not exceeding ninety (90) days after
                receipt of the claim; except that such period of time may be extended,
                if
                special circumstances should require, for an additional ninety (90)
                days
                commencing at the end of the initial ninety (90) day period. Written
                or
                electronic notice of such an extension shall be given to the claimant
                before the expiration of the initial ninety (90) day period and shall
                indicate the special circumstances requiring the extension and the
                date by
                which the final decision is expected to be
                rendered.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              A
                claimant who has been denied a claim for benefits, in whole or in
                part,
                may, within a period of sixty (60) days thereafter, request a review
                of
                such denial by filing a written notice of appeal with the Committee.
                In
                connection with an appeal, the claimant (or his duly authorized
                representative) may, upon request, review pertinent documents, and
                may
                submit evidence and arguments in writing to the Committee. The Committee
                shall review all comments, documents, records and other information
                submitted by the claimant related to the claim and decide the questions
                presented by the appeal, either with or without holding a hearing,
                and
                shall issue to the claimant a written or electronic notice setting
                forth:
                (1) the specific reasons for the decision, (2) the specific reference
                to pertinent Plan provisions on which the decision is based, (3) a
                statement that the claimant is entitled to receive, upon request
                and free
                of charge, reasonable access to, and copies of, all documents, records
                and
                other information relevant to the claimant’s claim, and (4) a
                statement of the claimant’s right to bring an action under Section 502(a)
                of ERISA. The notice described in the preceding sentence shall be
                issued
                within a period of time not exceeding sixty (60) days after receipt
                of the
                request for review; except that such period of time may be extended,
                if
                special circumstances (including, but not limited to, the need to
                hold a
                hearing) should require, for an additional sixty (60) days commencing
                at
                the end of the initial sixty (60) day period. Written or electronic
                notice
                of such an extension shall be provided to the claimant prior to the
                expiration of the initial sixty (60) day period. The decision of
                the
                Committee shall be final and
                conclusive.

            

    

     

    
      	 	
              (c)

            	
              Any
                electronic notice provided by the Committee to the claimant under
                this
                Section 10.12 shall comply with the requirements for electronic
                communications under 29 CFR § 2520.104b-1(c)(1)(i), (iii) and
                (iv).

            

    

     

    10.13
        QDRO
      Procedures.
      The
      Committee shall establish written procedures to determine the qualified status
      of domestic relations orders and to administer distributions under QDROs. Such
      procedures shall be consistent with any regulations prescribed under Section
      206(d) of ERISA. The Committee shall promptly notify the Participant and any
      alternate payee (as defined in Section 206(d)(3)(K) of ERISA) of the receipt
      of
      an order and the procedures for determining the qualified status of domestic
      relations orders. Within a reasonable period after receipt of an order, the
      Committee shall determine whether the order is qualified and shall notify the
      Participant and each alternate payee of such determination. During any period
      in
      which the qualified status of a domestic relations order is being determined
      (by
      the Committee, by a court, or otherwise), the Committee shall direct the Trustee
      to account separately for the amounts that would have been payable to each
      alternate payee if the order had been determined to be a QDRO. If within
      eighteen (18) months of the receipt of the order, the order (or modification
      thereof) is determined to be a QDRO, the Committee shall direct the Trustee
      to
      pay the segregated amounts (plus any interest thereon) to the person or persons
      entitled thereto. If within eighteen (18) months of the receipt of the order,
      it
      is determined that the order is not qualified, or the issue as to whether the
      order is qualified is not resolved, then the Committee shall direct the Trustee
      to pay the segregated amount (plus any interest thereon) to the person or
      persons who would have been entitled to such amounts if there had been no order.
      Any determination that an order is qualified that is made after the close of
      the
      eighteen (18) month period shall be applied prospectively only.

     

    10.14
        Service
      in Multiple Fiduciary Capacities.
      Any
      person or group of persons may serve in more than one (1) fiduciary capacity
      with respect to the Plan, in accordance with Section 402(c) (1) of
      ERISA.

     

    
      
        
        

      

      
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    ARTICLE
      XI

    CO-SPONSORSHIP
      OF PLAN AND MERGERS WITH OTHER PLANS 

     

    11.1  
        Co-Sponsorship
      of Plan by Affiliates.
      Any
      Affiliate, with the specific approval of the Board and the Affiliate’s board of
      directors (or other governing body, if applicable), may join in this Plan as
      a
      co-sponsor. Thereupon, such Affiliate shall be included in the definition of
      Company hereunder and shall have the obligation to make contributions to this
      plan sufficient to fund the benefits of its Employees and their Beneficiaries.
      In any such case, this Plan shall remain a single plan with any and all of
      its
      assets derived from Company contributions (regardless of the entity to whose
      contributions such assets can be traced) available to pay the benefits to each
      Participant and Beneficiary hereunder and any other liabilities of the Plan.
      A
      list of the Affiliates that have become co-sponsors of the Plan pursuant to
      this
      Section 11.1, together with the respective effective dates of their
      co-sponsorship, appears in Schedule 11.1, which may be revised when an Affiliate
      becomes a co-sponsor in accordance with this Section 11.1, without the necessity
      of amending the Plan. 

     

    11.2  
        Co-Sponsorship
      of Plan by Adopting Entities.
      Any
      Adopting Entity, with the specific approval of the Board and the Adopting
      Entity’s board of directors (or other governing body, if applicable), may join
      in this Plan as a co-sponsor. Thereupon, such Adopting Entity shall be included
      in the definition of Company hereunder and shall have the obligation to make
      contributions to this Plan sufficient to fund the benefits of its Employees
      and
      their Beneficiaries. A list of the Adopting Entities that have become
      co-sponsors of the Plan pursuant to this Section 11.2, together with the
      respective effective dates of their co-sponsorship, appears in 11.1, which
      may
      be revised when an Adopting Entity becomes a co-sponsor in accordance with
      this
      Section 11.2, without the necessity of amending the Plan.

     

    11.3  
        Merger
      with Plan of Affiliate.

     

    
      	 	
              (a)

            	
              Any
                other pension or retirement plan, sponsored by an Affiliate, may
                be merged
                into this Plan, with this Plan as the surviving instrument, with
                the
                specific approval of the Board and, if applicable, the board of directors
                (or other governing body, if applicable) of the Affiliate. Thereupon,
                if
                the employer sponsoring the merged plan is an Affiliate, the Affiliate
                shall become a co-sponsor of the Plan, and included in the definition
                of
                Company hereunder. In any such case, the Plan shall remain a single
                plan
                with any and all of its assets derived from Company contributions
                (regardless of the entity to whose contributions such assets can
                be
                traced) available to pay the benefits of each Participant and Beneficiary
                hereunder and any other liabilities of the
                Plan.

            

    

     

    
      	 	
              (b)

            	
              The
                assets of the merged plan shall be transferred to the Trustee and
                be
                assets of the Plan, and the liabilities of the merged plan shall
                be
                liabilities of the Plan.

            

    

     

    
      	 	
              (c)

            	
              Each
                Participant in the merged plan shall become a Participant in the
                Plan on
                the merger date, with accrued or vested benefits under the Plan equal
                to
                his accrued or vested benefits under the merged plan, and thereafter
                shall
                continue to participate in the Plan in accordance with its terms.
                Furthermore, each Participant in the merged plan who is an Employee
                on the
                merger date shall be entitled to Credited Service for his service
                under
                the merged plan and the greater of (i) his accrued or vested benefits
                under the Plan on account of such Credited Service or (ii) his accrued
                or
                vested benefits under the merged plan.

            

    

     

    
      
        
        

      

      
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              (d)

            	
              It
                is the intention, and it shall be the effect, of this Section 11.3
                that
                any merger of a plan into this Plan be carried out in accordance
                with
                Section 12.3.

            

    

     

    ARTICLE
      XII

    DURATION
      AND AMENDMENT

     

    12.1  
        Reservation
      of Right to Suspend or Terminate Plan.
      Except
      as otherwise provided herein, while it is the intention of the Company that
      the
      Plan shall remain in effect indefinitely, the Board reserves the right to
      suspend or terminate the Plan in whole or in part, at any time and from time
      to
      time, and for any reason whatsoever that in the Board’s sole discretion appears
      to it to make such action advisable.

     

    12.2  
        Reservation
      of Right to Amend Plan.
      Except
      as otherwise provided herein, the plan may be amended in accordance with the
      procedures set forth in this Section 12.2. The Board by duly adopted
      written resolution or by unanimous written consent may modify or amend the
      Plan
      in whole or in part, prospectively or retroactively, at any time and from time
      to time. The Board by duly adopted written resolution or by unanimous written
      consent may delegate the power to so modify or amend the Plan to one or more
      officers of the Company, subject to such conditions as the Board may in its
      sole
      discretion impose. Notwithstanding the preceding sentence, and without the
      necessity of a delegation of authority from the Board, the General Counsel
      of
      the Company may adopt any amendment or modification to the Plan that is, in
      the
      opinion of such General Counsel, necessary or appropriate to comply with
      applicable laws and regulations, including without limitation ERISA and the
      Code. The officers of the Company may take all actions necessary or appropriate
      to implement or effectuate any amendment or modification to the Plan described
      herein. Any modification or amendment of the Plan by one or more officers of
      the
      Company (including without limitation the General Counsel) shall be adopted
      by a
      written instrument executed by such officer or officers. Notwithstanding the
      foregoing, no amendment shall reduce any benefit, that is accrued or treated
      as
      accrued under Section 411(d)(6) of the Code, of any Participant, or the
      percentage (if any) of such benefit that is vested, on the later of the date
      on
      which the amendment is adopted or the date on which the amendment becomes
      effective.

     

    
      
        
        

      

      
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    12.3  
        Transactions
      Subject to Code Section 414(1).
      Except
      as otherwise provided herein, the Plan may be merged into or consolidated with
      another plan, and its assets or liabilities may be transferred to another plan.
      However, to the extent that Section 401(a)(12) or 414(1) of the Code is
      applicable and in accordance therewith, no such merger, consolidation, or
      transfer shall be consummated unless each Employee, retired Employee, former
      Employee, and Beneficiary under the Plan would, if the resulting plan then
      terminated, receive a benefit immediately after the merger, consolidation,
      or
      transfer that is equal to or greater than the benefit he would have been
      entitled to receive immediately before the merger, consolidation, or transfer,
      if the Plan had then terminated; provided that the foregoing provisions of
      this
      Section 12.3 shall not apply if such alternative requirements as may be imposed
      by the regulations under Section 414(1) of the Code are satisfied. For purposes
      of the preceding sentence, the benefit of an Employee, retired Employee, former
      Employee, or Beneficiary upon the deemed termination of a plan shall be
      determined without regard to any requirement under Title IV of ERISA or
      otherwise that (a) the Employer or any other person make additional
      contributions to the Plan in connection with its termination, or (b) any assets
      of the Plan attributable to employee contributions remaining after satisfaction
      of all liabilities described in Section 4044(a) of ERISA be distributed to
      Participants pursuant to Section 4044(d)(3) of ERISA. Any liability transferred
      from the Plan to another plan pursuant to this Section 12.3 shall result in
      the
      extinguishment of such liability hereunder immediately upon such transfer,
      and
      no benefit previously payable under the Plan on account of such liability shall
      be payable under the Plan following such transfer. 

     

    ARTICLE
      XIII

    DISTRIBUTION
      UPON PLAN TERMINATION

     

    13.1  
        Vesting
      on Plan Termination.
      In case
      of a termination or partial termination of the Plan, the rights of all affected
      Employees, retired Employees, and Beneficiaries to benefits accrued under the
      plan to the date of such termination or partial termination, to the extent
      then
      funded, shall be nonforfeitable.

     

    13.2  
        Allocation
      of Assets on Plan Termination.
      Upon
      termination of the Plan, the Committee shall allocate the assets of the Plan
      in
      accordance with the following priority schedule, after providing for reasonable
      Plan administration expenses:

     

    
      	 	
              (a)

            	
              First,
                there shall be paid any portion of a Participant’s accrued benefits
                derived from any non-mandatory contributions by him to the
                Plan;

            

    

     

    
      	 	
              (b)

            	
              Second,
                there shall be paid any portion of a Participant’s accrued benefits
                derived from any mandatory contributions by him to the
                Plan;

            

    

     

    
      	 	
              (c)

            	
              Third,
                there shall be allocated to (i) the benefit of each retired Employee
                (or
                Beneficiary) that was being paid on the date three (3) years prior
                to the
                date of termination, and (ii) the benefit of each Employee (or former
                Employee or Beneficiary) that would have been in pay status three
                (3)
                years prior to the date of termination if the Employee or former
                Employee
                had retired prior to such earlier date and if his benefit had commenced
                (in the normal form of annuity under the Plan) as of the beginning
                of such
                three (3) year period, an amount that is sufficient to provide such
                benefit, payable from the date of termination based on the provisions
                of
                the Plan as in effect during the five (5) year period ending on such
                date
                and under which the benefit was or would have been the
                least;

            

    

     

    
      	 	
              (d)

            	
              Fourth,
                there shall be allocated to each benefit an mount that together with
                any
                amount allocated under subsection (c), above, is sufficient to provide
                the
                portion of the benefit that is guaranteed by the Pension Benefit
                Guaranty
                Corporation, as provided under Title IV of ERISA (without regard
                to
                Sections 4022(b)(5) and 4022(b)(6)
                thereof);

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    
      	 	
              (e)

            	
              Fifth,
                there shall be allocated to each benefit an amount that together
                with any
                amounts allocated under subsections (c) and (d), above, is sufficient
                to
                provide each such benefit, to the extent it is nonforfeitable;
                

            

    

     

    
      	 	
              (f)

            	
              Sixth,
                there shall be allocated to each benefit the amount that together
                with any
                amounts allocated under subsections (c) through (e), above, is sufficient
                to provide the accrued benefit on the date of the termination;
                and

            

    

     

    
      	 	
              (g)

            	
              Seventh,
                after all liabilities of the Plan have been satisfied, any residual
                assets
                shall be distributed to the Company, except as otherwise required
                by
                Section 4044(d)(3) (A) of ERISA.

            

    

     

    If
      the
      assets of the Plan are insufficient to provide in full the amounts required
      under subsections (a) through (d) above, such assets shall be allocated pro
      rata
      among the benefits described in the subsection for which the required amounts
      first cannot be provided in full. If the assets of the Plan are insufficient
      to
      provide in full the amounts required under subsection (e) above, the assets
      available for allocation under subsection (e) shall be allocated first to
      provide the amounts required under such subsection on the basis of the terms
      of
      the Plan as in effect at the beginning of the five (5) year period ending on
      the
      date of the Plan termination. If the assets of the Plan are insufficient to
      provide such amounts in full, the assets shall be allocated among such amounts
      on a pro rata basis. If the assets of the Plan are sufficient to provide such
      amounts in full, then any remaining assets shall be allocated to provide the
      amounts under such subsection based on the benefits resulting from each
      successive amendment during the five (5) year period until the available assets
      are insufficient to provide the amounts required under subsection (e). The
      assets available for allocation with respect to the benefits resulting from
      the
      first such amendment shall be allocated on a pro rata basis.

     

    13.3  
        Provision
      for Benefits After Plan Termination.
      The
      provision of benefits pursuant to Section 13.2 may be made, in the discretion
      of
      CenturyTel, Inc., by the purchase of annuities or by continuing in existence
      any
      Trust Agreements or arrangements with insurance companies entered into pursuant
      to the Plan and making provision therefrom for benefits, or both, or by
      immediate distribution from the Plan, or by any combination of these means,
      as
      CenturyTel, Inc., in its sole discretion, shall determine.

     

    13.4  
        Computation
      of Benefits After Plan Termination.
      The
      benefits specified in Section 13.2 shall be computed in accordance with the
      provisions of Article VI or the Schedules of the Plan, as applicable, except
      that, to the extent permitted by law, the periods of Vesting Service and
      Credited Service used in the computation of benefits for Employees shall be
      regarded as ended as of the Plan termination date and only Average Annual
      Compensation as of that date shall be taken into account.

     

    13.5  
        Continued
      Employment Not Required After Plan Termination.
      The
      payment of benefits on termination of the Plan shall not be contingent on an
      Employee’s continuing in the service of the Company or any other employer after
      the termination of the Plan, except to the extent such service is otherwise
      required under the Plan to become eligible for a particular benefit or form
      of
      payment.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    13.6  
        Data
      in Company Records on Plan Termination.
      In all
      cases benefits on termination of the Plan shall be determined, to the extent
      permitted by law, on the basis of the Employee’s age, Vesting Service, Credited
      Service, and Average Annual Compensation as shown by the Company’s records as of
      the Plan termination date.

     

    13.7  
        Satisfaction
      of Liabilities on Plan Termination.
      In the
      case of all benefits for which provision is made for the purchase of annuities
      from an insurance company, the delivery of an annuity contract or certificate
      of
      the insurance company from which the annuity is purchased to each Employee,
      retired Employee, former Employee, or Beneficiary to whom such benefits are
      payable shall, to the extent permitted by applicable law, serve to relieve
      the
      Plan from any further obligations for the payment of such benefits. In the
      case
      of all benefits for which provision is not made through the purchase of
      annuities from an insurance company, the judgment of CenturyTel, Inc. as to
      the
      adequacy of the alternative provision shall be final to the extent permitted
      by
      applicable law. If such alternative provision made as of the Plan termination
      date should thereafter at any time appear, in the judgment of CenturyTel, Inc.,
      inadequate or more than sufficient to continue the payment of the amounts
      previously estimated to be payable, the remaining payments of such benefits
      shall be adjusted pro rata in the order of precedence set forth in Section
      13.2.

     

    13.8  
        High-25
      Distribution Restrictions.

     

    
      	 	
              (a)

            	
              Upon
                the termination of the Plan, the benefit of each highly compensated
                employee and each highly compensated former employee (both as defined
                in
                Section 414(q) of the Code) shall be limited to a benefit that is
                nondiscriminatory under Section 401(a)(4) of the
                Code.

            

    

     

    
      	 	
              (b)

            	
              The
                annual payments under the Plan with respect to a Participant shall
                not
                exceed the annual payments that would be made with respect to the
                Participant under a straight life annuity that is the actuarial equivalent
                of his Accrued Benefit. The preceding sentence shall not apply to
                a
                Participant for a calendar year if: (i) the Participant is not among
                the
                twenty-five (25) highly compensated employees and highly compensated
                former employees (both as defined in Section 414(q) of the Code)
                of an
                adopting Affiliate or Adopting Entity with the greatest compensation
                in
                that calendar year or any prior calendar year; (ii) after satisfying
                all
                benefits payable to the Participant under the Plan, the value of
                Plan
                assets does not fall below 110 percent of the Plan’s current liabilities
                (as defined in Section 412(l)(7) of the Code); (iii) the value of
                the
                benefits payable with respect to the Participant under the plan is
                less
                than one percent (1%) of the value of the Plan’s current liabilities (as
                defined in Section 412(l)(7) of the Code and determined before
                distribution to the Participant); or (iv) the value of the benefits
                payable with respect to the Participant under the Plan does not exceed
                the
                amount described in Section 411(a)(11)(A) of the Code. If the Plan
                is
                terminated while the restrictions pursuant to this subsection (b) are in
                effect, amounts in excess of those restrictions shall first be applied
                in
                a nondiscriminatory manner to the satisfaction of any Plan liabilities
                to
                Participants who are not subject to the restrictions, and any balance
                remaining shall then be applied in a nondiscriminatory manner to
                any Plan
                liabilities that may be outstanding with respect to Participants
                who are
                subject to the restrictions.

            

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              This
                Section 13.8 is intended to satisfy the requirement of Treas. Reg.
                Section
                1.401(a)(4)-5(b). This Section 13.8 shall not be construed in a manner
                that would impose limitations that are more stringent than those
                required
                by Section 1.401(a)(4)-5(b) of the Treasury Regulations. If Congress
                should provide by statute, or the United States Treasury Department
                or the
                Internal Revenue Service should provide by regulation, ruling, or
                other
                guidance of general applicability, that the foregoing restrictions
                are no
                longer necessary for the Plan to meet the requirements of Section
                401(a)
                of the Code or any other applicable provision of the Internal Revenue
                Code
                then in effect, such restrictions shall become void and shall no
                longer
                apply, without the necessity of further amendment to the
                Plan.

            

    

     

    ARTICLE
      XIV

    INTERCHANGE
      OF BENEFIT OBLIGATIONS 

     

    14.1  
        Interchange
      Agreement Permitted.
      Agreements may be made by the Company with Affiliates other than the Company
      for
      an interchange of the obligations to which they may be subject under similar
      pension plans. These agreements shall provide that:

     

    
      	 	
              (a)

            	
              pension
                plans shall be maintained on a consistent and substantially uniform
                basis
                by all of the companies participating in such interchange
                agreements;

            

    

     

    
      	 	
              (b)

            	
              advance
                provision for the payment of pensions shall be made by each company
                in
                such amounts as may be necessary to provide for and fulfill all
                requirements of its plan as in effect from time to time;
                and

            

    

     

    
      	 	
              (c)

            	
              the
                vesting service and credited service of the Participants under the
                pension
                plans sponsored by the companies that are parties to such agreements
                shall
                include service with all such
                companies.

            

    

     

    ARTICLE
      XV

    GENERAL
      PROVISIONS 

     

    15.1  
        No
      Employment Rights Conferred.
      Neither
      the action of the Company establishing this Plan nor any action taken by the
      Company under the Plan shall be construed as giving to any Employee a right
      to
      be retained in the service of the Company.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    15.2  
        Integration
      Clause.
      No
      Employee, retired Employee, former Employee, Beneficiary, or any other person
      shall be entitled to or have any vested right in or claim to a benefit under
      the
      Plan, except as expressly provided herein.

     

    15.3  
        Incapacity
      of Recipient.
      Benefit
      payments to a retired Employee or a Beneficiary unable to execute a proper
      receipt therefor may be made to a relative or other person, selected by the
      Committee, for the benefit of the retired Employee or the Beneficiary, and
      the
      receipt executed by such person shall discharge the obligations of the Plan
      and
      the Committee to such retired Employee or Beneficiary and anyone claiming
      through either of them.

     

    15.4  
        ERISA
      Fiduciary Duties.
      Nothing
      in the Plan shall relieve or be deemed to relieve any Plan fiduciary from any
      responsibility, obligation, or duty imposed by or under ERISA.

     

    15.5  
        Compliance
      with State and Local Law.
      The
      provisions of this Plan relating to an Employee’s age of retirement shall not be
      applied in circumstances that would cause such provisions to be in violation
      of
      applicable state or local law. In such circumstances, the Employee Benefits
      Committee as Plan Administrator shall modify the application of such provisions
      to the extent necessary to comply with applicable state or local law, but only
      to the extent such laws are not preempted by federal law.

     

    15.6  
        Usage.
      Words in
      the masculine gender shall include the feminine gender and the plural shall
      include the singular unless the context indicates otherwise.

     

    15.7  
        Titles
      and Headings.
      The
      titles to Articles and the headings of Sections, subsections, paragraphs, and
      subparagraphs in this Plan are placed herein for convenience of reference only
      and, as such, shall be of no force or effect in the interpretation of the
      Plan.

     

    15.8  
        Severability
      Clause.
      In the
      event any provision of the Plan is held to be in conflict with or in violation
      of any state or federal statute, rule, or decision, all other provisions of
      this
      Plan shall continue in full force and effect. In the event that the making
      of
      any payment or the provision of any other benefit required under the plan is
      held to be in conflict with or in violation of any state or federal statute,
      rule, or decision or otherwise invalid or unenforceable, such conflict,
      violation, invalidity, or unenforceability shall not prevent any other payment
      or benefit from being made or provided under the Plan, and in the event that
      the
      making of any payment in full or the provision of any other benefit required
      under the Plan in full would be in conflict with or in violation of any state
      or
      federal statute, rule or decision or otherwise invalid or unenforceable, then
      such conflict, violation, invalidity or unenforceability shall not prevent
      such
      payment or benefit from being made or provided in part, to the extent that
      it
      would not be in conflict with or in violation of any state or federal statute,
      rule or decision or otherwise invalid or unenforceable, and the maximum payment
      or benefit that would not be in conflict with or in violation of any state
      or
      federal statute, rule or decision or otherwise invalid or unenforceable, shall
      be made or provided under the Plan.

     

    15.9  
        USERRA
      - Military Service Credit.
      Notwithstanding any provision of this Plan to the contrary, contributions,
      benefits and service credit with respect to qualified military service will
      be
      provided in accordance with Section 414(u) of the Code.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    ARTICLE
      XVI

    TOP-HEAVY
      REQUIREMENTS

     

    16.1  
        In
      General.
      This
      Article XVI shall apply only if the Plan is Top-Heavy, as defined below. If,
      as
      of any Determination Date, as defined below, the Plan is Top-Heavy, the
      provisions of Section 16.4, below, shall take effect as of the first day of
      the
      Plan Year next following the Determination Date and shall continue to be in
      effect until the first day of any subsequent Plan Year following a Determination
      Date as of which it is determined that the Plan is no longer
      Top-Heavy.

     

    16.2  
        Definitions. For
      purposes of this Article XVI, the following definitions shall apply, and shall
      be interpreted in accordance with the provisions of Section 416 of the Code
      and
      the regulations thereunder:

     

    
      	 	
              (a)

            	
              Permissive
                Aggregation Group
                means a group of CenturyTel, Inc. Plans consisting of each CenturyTel,
                Inc. Plan in the Required Aggregation Group and each other CenturyTel,
                Inc. Plan selected by the Committee for inclusion in the Permissive
                Aggregation Group that would not, by its inclusion, prevent the Permissive
                Aggregation Group from continuing to meet the requirements of Sections
                401(a)(4) and 410 of the Code.

            

    

     

    
      	 	
              (b)

            	
              Average
                Compensation
                means the Participant’s average Compensation, as defined in Section
                16.2(c), below, for the period of consecutive years (not exceeding
                five)
                during which the Participant had the greatest aggregate Compensation
                from
                the Company, excluding (i) years ending before 1984, and (ii) years
                commencing after the last Top-Heavy Year, and adjusted, in accordance
                with
                Section 416(c)(1)(D)(ii) of the Code, for years not included in a
                year of
                Vesting Service.

            

    

     

    
      	 	
              (c)

            	
              Compensation
                means compensation for a calendar year within the meaning of Section
                415
                of the Code and the regulations thereunder, but shall not exceed
                the
                annual compensation limit in effect for the calendar year under Section
                401(a)(17) of the Code. 

            

    

     

    
      	 	
              (d)

            	
              Determination
                Date
                means, with respect to any Plan Year, the last day of the preceding
                Plan
                Year.

            

    

     

    
      	 	
              (e)

            	
              Employer
                means the Employer who adopted this Plan and any other Employer some
                or
                all of whose Employees participate in this Plan or in a retirement
                plan
                which is aggregated with this Plan as part of a Permissive or Required
                Aggregation Group

            

    

     

    
      	 	
              (f)

            	
              CenturyTel
                Plan
                means any stock bonus, pension, or profit-sharing plan of the Company
                and
                the Affiliates intended to qualify under Section 401(a) of the
                Code.

            

    

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    
      	 	
              (g)

            	
              Key
                Employee
                means any employee of the Employer who satisfies the criteria set
                forth in
                Section 416(i)(1) of the Code. For purposes of determining who is
                a Key
                Employee, compensation shall mean compensation as defined in Section
                415
                of the Code and the regulations thereunder. Effective January 1,
                2005,
                ‘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 $135,000 (as adjusted under Code Section
                416(i)(1) for Plan Years after 2005), a 5-percent owner of the Employer
                or
                an Affiliate, 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 Code Section 415(c)(3).
                The
                determination of who is a Key Employee will be made in accordance
                with
                Code Section 416(i)(1) and the applicable regulations and other guidance
                of general applicability issued thereunder.

            

    

     

    
      	 	
              (h)

            	
              Required
                Aggregation Group
                means (1) each CenturyTel Plan in which a Key Employee is a Participant
                and (2) any other CenturyTel Plan that enables a plan described in
                (1) to
                meet the requirements of Section 401(a)(4) or 410 of the
                Code.

            

    

     

    
      	 	
              (i)

            	
              Top-Heavy
                means that the plan is included in an Aggregation Group under which,
                as of
                the Determination Date, the sum of the present value of the cumulative
                accrued benefits for Key Employees under all defined benefit plans
                in the
                Aggregation Group and the aggregate of all accounts of Key Employees
                under
                all defined contribution plans in the Aggregation Group exceeds sixty
                percent (60%) of the analogous sum determined for all employees.
                The
                determination of whether the Plan is Top-Heavy shall be made in accordance
                with Section 416(g)(2)(B) of the Code and the regulations thereunder.
                

            

    

     

    
      	 	
              (j)

            	
              Top-Heavy
                Ratio
                means the percentage calculated in accordance with Section 16.2(i)
                hereof
                and Section 416(g)(2) of the Code and the Regulations thereunder.
                

            

    

     

    
      	 	
              (k)

            	
              Top-Heavy
                Year
                means a Plan Year for which the Plan is
                Top-Heavy.

            

    

     

    Unless
      otherwise specified herein, other terms in this Article XVI have the respective
      meanings ascribed thereto by the other provisions of the Plan.

     

    16.3  
        Determination
      of Top-Heavy Ratio.
      In
      determining the Top-Heavy Ratio with respect to any Plan Year, the following
      rules shall apply:

     

    
      	 	
              (a)

            	
              The
                accrued benefit of any current Participant shall be calculated, as
                of the
                most recent valuation date that is within a twelve (12) month period
                ending on the Determination Date, as if the Participant had voluntarily
                terminated employment as of such valuation date. Such valuation date
                shall
                be the same valuation date used for computing plan costs for purposes
                of
                the minimum funding provisions of Section 412 of the Code. Unless,
                as of
                the valuation date, the Plan provides for a nonproportional subsidy,
                the
                present value of the accrued benefit shall reflect a benefit commencing
                at
                age sixty-five (65) (or attained age, if later). If, as of the valuation
                date, the Plan provides for a nonproportional subsidy, the benefit
                shall
                be assumed to commence at the age at which the benefit is most
                valuable.

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                present value of such accrued benefit shall be calculated by multiplying
                the accrued benefit by the appropriate factor in the following table
                based
                on the Participant’s age as of the Determination
                Date.

            

    

     

    
      	
              Age

            	
              Deferred
                Annuity Factor to
                Age 65

            
	
              19

            	
              0.36752

            
	
              20

            	
              0.39337

            
	
              21

            	
              0.42104

            
	
              22

            	
              0.45067

            
	
              23

            	
              0.48240

            
	
              24

            	
              0.51637

            
	
              25

            	
              0.55274

            
	
              26

            	
              0.59169

            
	
              27

            	
              0.63340

            
	
              28

            	
              0.67806

            
	
              29

            	
              0.72589

            
	
              30

            	
              0.77713

            
	
              31

            	
              0.83202

            
	
              32

            	
              0.89084

            
	
              33

            	
              0.95388

            
	
              34

            	
              1.02145

            
	
              35

            	
              1.09389

            
	
              36

            	
              1.17156

            
	
              37

            	
              1.25486

            
	
              38

            	
              1.34422

            
	
              39

            	
              1.44010

            
	
              40

            	
              1.54301

            
	
              41

            	
              1.65348

            
	
              42

            	
              1.77212

            
	
              43

            	
              1.89957

            
	
              44

            	
              2.03654

            
	
              45

            	
              2.18380

            
	
              46

            	
              2.34220

            
	
              47

            	
              2.51265

            
	
              48

            	
              2.69619

            
	
              49

            	
              2.89392

            
	
              50

            	
              3.10709

            

    

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    

    
      	
              Age

            	
              Deferred
                Annuity Factor to
                Age 65

            
	
              51

            	
              3.33707

            
	
              52

            	
              3.58536

            
	
              53

            	
              3.85366

            
	
              54

            	
              4.14383

            
	
              55

            	
              4.45797

            
	
              56

            	
              4.79844

            
	
              57

            	
              5.16786

            
	
              58

            	
              5.56923

            
	
              59

            	
              6.00589

            
	
              60

            	
              6.48169

            
	
              61

            	
              7.00098

            
	
              62

            	
              7.56874

            
	
              63

            	
              8.19069

            
	
              64

            	
              8.87343

            
	
              65

            	
              9.62458

            
	
              66

            	
              9.41000

            
	
              67

            	
              9.19088

            
	
              68

            	
              8.96748

            
	
              69

            	
              8.73999

            
	
              70

            	
              8.50892

            

    

     

    
      	 	
              (c)

            	
              The
                Plan shall be aggregated with all CenturyTel Plans included in the
                Permissive Aggregation Group.

            

    

     

    
      	 	
              (d)

            	
              The
                present value 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 Code Section 416(g)(2) 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
                Code
                Section 416(g)(2)(A)(i). In the case of a distribution made for a
                reason
                other than severance from employment, death, or disability, this
                provision
                shall be applied by substituting ‘5-year period’ for ‘1-year period.’ 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.

            

    

     

    
      	 	
              (e)

            	
              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.

            

    

     

    16.4  
        Top-Heavy
      Minimum Benefits. 

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    
      	 	
              (a)

            	
              In
                any Top-Heavy Year, each Participant shall be entitled to the greater
                of:
                

            

    

     

    
      	 	
              (1)

            	
              the
                Pension he otherwise is entitled to under the Plan, or
                

            

    

     

    
      	 	
              (2)

            	
              an
                annual benefit that, when expressed as a benefit commencing at his
                Normal
                Retirement Date (with no ancillary benefits), is equal to two percent
                (2%)
                of the Participant’s Average Compensation for each of the Participant’s
                first ten (10) years of Credited Service after 1983 during which
                the Plan
                is Top-Heavy.

            

    

     

    The
      annual benefit described in paragraph (2), above, shall not be adjusted to
      take
      into account the availability of preretirement death benefits under the
      Plan.

     

    
      	 	
              (b)

            	
              A
                Participant who has completed at least three (3) years of Vesting
                Service
                and who is credited with an Hour of Service in a Top-Heavy Year shall
                have
                a nonforfeitable right to his Accrued
                Benefit.

            

    

     

    
      	 	
              (c)

            	
              For
                each Top-Heavy Year, the Annual Compensation of each Participant
                taken
                into account under the plan for all plan Years (including Plan Years
                before the first Top-Heavy Year) shall not exceed his Compensation
                (as defined in Section 16.2(c)); provided that any benefits accrued
                before a Top-Heavy Year (determined without regard to any Plan amendments
                adopted after the end of the Plan Year next preceding the Top-Heavy
                Year)
                shall not be reduced as a result of the application of this subsection
                (c).

            

    

     

    
      	 	
              (d)

            	
              The
                benefit required by Section 16.4(a) and vested pursuant to Section
                16.4(b)
                shall not be forfeitable under provisions that otherwise would be
                permitted by Section 411(a)(3)(B) (relating to suspension of benefits
                upon
                reemployment) or 411(a)(3)(D) (relating to forfeitures upon withdrawal
                of
                mandatory contributions) of the
                Code.

            

    

     

    
      	 	
              (e)

            	
              The
                Plan shall meet the requirements of this Section 16.4 without taking
                into
                account, in accordance with Section 416(e) of the Code, contributions
                or
                benefits under Chapter 21 of the Code (relating to the Federal Insurance
                Contributions Act), Title II of the Social Security Act, or any other
                federal or state law.

            

    

     

    
      	 	
              (f)

            	
              The
                requirements of this Section 16.4 shall not apply with respect to
                any
                employee included in a unit of employees covered by an agreement
                that the
                Secretary of Labor finds to be a collective bargaining agreement
                between
                employee representatives and one or more Affiliates if there is evidence
                that retirement benefits were the subject of good faith bargaining
                between
                such employee representatives and the
                Affiliate.

            

    

     

    
      	 	
              (g)

            	
              For
                purposes of satisfying the minimum benefit requirements of Code Section
                416(c)(1) and this Plan, in determining Years of Service with the
                Employer, any service with the Employer shall be disregarded to the
                extent
                that such service occurs during a Plan Year when the Plan benefits
                (within
                the meaning of Code Section 410(b)) no Key Employee or former Key
                Employee.

            

    

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    16.5  
        Termination
      of Top-Heavy Status.
      If, for
      any plan Year after a Top-Heavy Year, the Plan is no longer Top-Heavy, the
      provisions of Section 16.4, above, shall not apply with respect to such Plan
      Year; provided that

     

    
      	 	
              (a)

            	
              the
                Accrued Benefit of any Participant shall not be reduced on account
                of the
                operation of this Section 16.5;

            

    

     

    
      	 	
              (b)

            	
              each
                Participant shall remain fully vested in any portion of the Participant’s
                Accrued Benefit that was fully vested before the Plan ceased to be
                Top-Heavy; and

            

    

     

    
      	 	
              (c)

            	
              any
                Participant who was a Participant in a Top-Heavy Year and who has
                completed at least five (5) years of Vesting Service as of the first
                day
                of the Plan Year in which the Plan is no longer Top-Heavy may elect
                to
                remain subject to the provisions of Section
                16.4(b).

            

    

     

    16.6  
        Interpretation.
      This
      Article XVI is intended to satisfy the requirements imposed by Section 416
      of
      the Code and shall be construed in a manner that will effectuate this intent.
      This Article XVI shall not be construed in a manner that would impose
      requirements that are more stringent than those imposed by Section 416 of the
      Code.

     

    THUS
      DONE
      AND SIGNED, this 22nd day of December, 2006.

     

    
      	 	
              CENTURYTEL,
                INC.

            
	 	 
	 	 
	 	
              By:/s/
                R. Stewart Ewing, Jr.

            

    

     

     

    63

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