Document:

Exhibit 10(b)(4)

AGREEMENT

This Agreement entered into this 26th day of July, 2001, is made
by and between ALLTEL CORPORATION, a Delaware corporation (the
"Corporation"), and JOE T. FORD (the "Executive").

On the date of this Agreement, the Executive is the Chairman and Chief
Executive Officer of the Corporation and is employed under the Executive
Compensation Agreement (as defined in Section 1(G)). The Corporation is desirous
of assuring the continued employment of the Executive as its Chairman and Chief
Executive Officer until the Executive's retirement from his position as Chief
Executive Officer, and, thereafter, the continued services of the Executive as
Chairman of the Board of Directors of the Corporation. The Corporation and the
Executive desire to agree regarding the foregoing in a manner and upon terms
that are satisfactory to the Corporation and to the Executive.

The Corporation and the Executive agree as follows:

1. Defined Terms. For purposes of this Agreement, the following
terms shall have the meanings indicated below:

(A) "Board" or "Board of Directors" shall mean the Board
of Directors of the Corporation.

(B) "Cause" for termination by the Corporation of the Executive's
employment shall mean (i) the willful failure by the Executive
substantially to perform the Executive's duties with the Corporation or a
Subsidiary, other than any failure resulting from the Executive's incapacity due
to physical or mental illness or any actual or anticipated failure after the
issuance of a Notice of Termination for Good Reason by the Executive in
accordance with Section 4(E), that continues for at least 30 days
after the Board delivers to the Executive a written demand for performance that
identifies specifically and in detail the manner in which the Board believes
that the Executive willfully has failed substantially to perform the Executive's
duties or (ii) the willful engaging by the Executive in misconduct that is
demonstrably and materially injurious to the Corporation or any Subsidiary,
monetarily or otherwise. For purposes of this definition, no act, or failure to
act, on the Executive's part shall be deemed "willful" unless done, or
omitted to be done, by the Executive not in good faith and without reasonable
belief that the Executive's act, or failure to act, was in the best interest of
the Corporation and its Subsidiaries.

(C) "Change in Control" shall mean:

(i) Any "person," as defined in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"),
other than the Corporation, any of its subsidiaries, or any employee benefit
plan maintained by the Corporation or any of its subsidiaries, becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act) of (A) 15% or more, but no greater than 50%, of the outstanding voting
capital stock of the Corporation, unless prior thereto, the Continuing Directors
approve the transaction that results in the person becoming the beneficial owner
of 15% or more, but no greater than 50%, of the outstanding voting capital stock
of the Corporation or (B) more than 50% of the outstanding voting capital
stock of the Corporation, regardless whether the transaction or event by which
the foregoing 50% level is exceeded is approved by the Continuing Directors;

(ii) At any time Continuing Directors no longer constitute a majority of the
directors of the Corporation; or

(iii) A record date is fixed for determining stockholders entitled to vote
upon (A) a merger or consolidation of the Corporation, statutory share
exchange, or other similar transaction with another corporation, partnership, or
other entity or enterprise in which either the Corporation is not the surviving
or continuing corporation or shares of common stock of the Corporation are to be
converted into or exchanged for cash, securities other than common stock of the
Corporation, or other property, (B) a sale or disposition of all or
substantially all of the assets of the Corporation, or (C) the dissolution
of the Corporation; or

(iv) The Corporation enters into an agreement with any Person, the
consummation of which would result in the occurrence of an event described in
clause (i), (ii) or (iii) above of this Section 1(C).

For purposes of this definition of "Change in Control," the term
"Continuing Directors" shall mean directors who were directors of the
Corporation at the beginning of the 24-month period ending on the date the
determination is made or whose election, or nomination for election by the
Corporation's stockholders, was approved by at least a majority of the directors
who are in office at the time of the election or nomination and who either (i) were
directors at the beginning of the period, or (ii) were elected, or
nominated for election, by at least a majority of the directors who were in
office at the time of the election or nomination and were directors at the
beginning of the period.

For purposes of this definition of "Change in Control," the term
"Person" shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof;
except that, a Person shall not include (i) the Corporation or any
Subsidiary, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Corporation or any Subsidiary, or (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities.

(D) "Code" means the Internal Revenue Code of 1986, as amended, or
corresponding provisions of any subsequent federal tax laws.

(E) "Date of Termination" shall have the meaning stated in
Section 4(F).

(F) "Disability" shall be deemed the reason for the termination by
the Corporation of the Executive's employment, if, as a result of the
Executive's incapacity due to physical or mental illness, the Executive shall
have been absent from the full-time performance of the Executive's duties with
the Corporation or a Subsidiary for a period of six consecutive months, the
Corporation shall have given the Executive a Notice of Termination for
Disability, and, within 20 business days after the Notice of Termination is
given, the Executive shall not have returned to the full-time performance of the
Executive's duties.

(G) "Executive Compensation Agreement" shall mean the Executive
Compensation Agreement between the Corporation and the Executive entered into
effective October 26, 1983, as amended by a Modification of Executive
Compensation Agreement entered into effective as of October 26, 1983, as further
amended by a Modification of Executive Compensation Agreement entered into
effective as of January 1, 1987, and as further amended by a Modification of
Executive Compensation Agreement entered into effective as of January 1, 1991,
as further amended from time to time.

(H) "Good Reason" for termination by the Executive of the
Executive's employment shall mean the occurrence, without the Executive's
express written consent, of any one of the following:

(i) the assignment to the Executive of any duties inconsistent with the
Executive's status as an executive officer of the Corporation or of a Subsidiary
or a substantial adverse alteration in the nature or status of the Executive's
responsibilities from those in effect immediately prior to the Change in
Control;

(ii) a reduction by the Corporation in the Executive's annual base salary to
any amount less than the Executive's annual base salary as in effect immediately
prior to the Change in Control;

(iii) the relocation of the principal executive offices of the Corporation or
of a Subsidiary, as the case may be, to a location more than 35 miles from
the location of such offices immediately prior to the Change in Control or the
Corporation's requiring the Executive to be based anywhere other than the
principal executive offices of the Corporation or of a Subsidiary as the case
may be, except for required business travel to an extent substantially
consistent with the Executive's business travel obligations immediately prior to
the Change in Control;

(iv) the failure by the Corporation to pay to the Executive any portion of
the Executive's current compensation, or to pay to the Executive any deferred
compensation under any deferred compensation program of the Corporation, within
five days after the date the compensation is due or to pay or reimburse the
Executive for any expenses incurred by him for required business travel;

(v) the failure by the Corporation to continue in effect any compensation
plan in which the Executive participates immediately prior to the Change in
Control that is material to the Executive's total compensation, including but
not limited to, stock option, restricted stock, stock appreciation right,
incentive compensation, bonus, and other plans, unless an equitable alternative
arrangement embodied in an ongoing substitute or alternative plan has been made,
or the failure by the Corporation to continue the Executive's participation
therein (or in a substitute or alternative plan) on a basis not materially less
favorable, both in terms of the amount of compensation provided and the level of
the Executive's participation relative to other participants, than existed
immediately prior to the Change in Control;

(vi) the failure by the Corporation to continue to provide the Executive with
benefits substantially similar to those enjoyed by the Executive under any of
the Corporation's pension, profit-sharing, life insurance, medical, health and
accident, disability, or other employee benefit plans in which the Executive was
participating immediately prior to the Change in Control; the failure by the
Corporation to continue to provide the Executive any material fringe benefit or
perquisite enjoyed by the Executive immediately prior to the Change in Control;
or the failure by the Corporation to provide the Executive with the number of
paid vacation days to which the Executive is entitled in accordance with the
Corporation's normal vacation policy in effect immediately prior to the Change
in Control;

(vii) any material breach by the Corporation of the Executive Compensation
Agreement; or

(viii) any purported termination by the Corporation of the Executive's
employment that is not effected in accordance with a Notice of Termination
satisfying the requirements of Section 4(E).

(I) "Long-Term Incentive Plan" shall mean the ALLTEL Corporation
Long-Term Performance Incentive Plan or any successor thereto, as amended from
time to time.

(J) "Notice of Termination" shall have the meaning stated in
Section 4(E).

(K) "Payment Trigger" shall mean the occurrence prior to July 1,
2002 of a Change in Control coincident with or followed (i) at any time
before the earlier of July 1, 2002 or the end of the 12th month immediately
following the month in which the Change in Control occurred, by the termination
of the Executive's employment with the Corporation or a Subsidiary for any
reason other than (A) by the Executive without Good Reason, (B) by the
Corporation as a result of the Disability of the Executive or with Cause or,
(C) as a result of the death of the Executive, or (ii) in the event
the Executive remains continuously employed by the Corporation or a Subsidiary
until the earlier of July 1, 2002 or the end of the 12th month immediately
following the month in which the Change in Control occurred, the termination of
the Executive's employment with the Corporation or a Subsidiary, at the earlier
of July 1, 2002 or at any time during the three month period immediately
following the expiration of such 12-month period, for any reason other than
(A) by the Corporation as a result of the Disability of the Executive or
(B) as a result of the death of the Executive.

(L) "Post-Retirement Chairman Status" shall mean that, if the
Executive is the Chairman of the Board of Directors at the time the Executive's
employment as Chief Executive Officer and an employee of the Corporation
terminates, the period commencing with that termination of employment and
continuing until the earliest of (i) the Executive's retirement from the Board
in accordance with ALLTEL's director retirement policy, (ii) the Executive's
resignation as Chairman of the Board at any time, (iii) the Executive's
failure to be reelected to the Board at ALLTEL's 2003 Annual Meeting of
Stockholders, or (iv) the termination by the Board of Mr. Ford's status as
Chairman of the Board at any time following the Corporation's 2003 Annual
Meeting of Stockholders.

(M) "SERP" shall mean the ALLTEL Corporation Supplemental Executive
Retirement Plan (First Restatement), dated May 14, 2001, as amended from time to
time.

(N) "Short-Term Incentive Plan" shall mean the ALLTEL Corporation
Performance Incentive Compensation Plan or any successor thereto, as amended
from time to time.

(O) "Subsidiary" shall mean any corporation or other entity or
enterprise, whether incorporated or unincorporated, of which at least a majority
of the securities or other interests having by their terms ordinary voting power
to elect a majority of the board of directors or others serving similar
functions with respect to such corporation or other entity or enterprise is
owned by the Corporation or other entity or enterprise of which the Corporation
directly or indirectly owns securities or other interests having all the voting
power.

2. Provisions Related to Retirement as CEO and Related Employment
Termination.

(A) The Executive's employment with the Corporation and any Subsidiary of the
Corporation (as an employee and as an officer) shall terminate at the earliest
of (i) July 1, 2002, (ii) the date on which the Executive elects not to continue
his service as Chief Executive Officer of the Corporation, (iii) the date on
which a Payment Trigger occurs, or (iv) the date otherwise provided under the
Executive Compensation Agreement.

(B) This Section 2(B) shall apply if (and only if) a Payment Trigger
does not occur. If this Section 2(B) applies: The Executive shall not be
eligible for or receive any short-term incentive bonus under the Incentive Plan
or otherwise for periods after 2001, except that, if the Executive's employment
as Chief Executive Officer terminates in 2002, the Executive shall receive a
bonus under the Incentive Plan for 2002 equal to the actual Incentive Plan
payment that would have occurred had the Executive's employment continued
through December 31, 2002, multiplied by a fraction, the numerator of which is
the number of calendar months (counting a partial calendar month as a full
month) that have elapsed in 2002 prior to the Executive's termination of
employment, and the denominator of which is 12. The Executive shall not be
eligible for or receive any long-term incentive bonus under the Long-Term
Incentive Plan or otherwise for cycles ending after 2002. If the Executive's
employment as Chief Executive Officer terminates in 2002, the Executive shall
receive a bonus under the Long-Term Incentive Plan for the cycle ending 2002
equal to the actual Long-Term Incentive Plan payment that would have occurred
had the Executive's employment continued through December 31, 2002 and the
achievement of the preestablished performance goals under the Long-Term
Incentive Plan for the cycle ending 2002 had occurred at the
"midpoint," multiplied by a fraction, the numerator of which is the
sum of 24 and the number of calendar months (counting a partial calendar month
as a full month) that have elapsed during 2002 prior to the Executive's
termination of employment, and the denominator of which is 36.

(C) Following the Executive's termination of employment as Chief Executive
Officer of the Corporation, the Executive shall be eligible to receive all
compensation and benefits to be provided under the Executive Compensation
Agreement (as modified by this Agreement) and any other benefits to which the
Executive is entitled, including, but not limited to, benefits under the ALLTEL
Corporation Executive Deferred Compensation Plan, the ALLTEL Corporation 1998
Management Deferred Compensation Plan, the ALLTEL Corporation Profit-Sharing
Plan, the ALLTEL Corporation Benefit Restoration Plan, and all stock option and
other equity incentives.

(D) The Executive's annual retirement benefit under Section VI of the
Executive Compensation Agreement payable in respect of the Executive's
retirement as Chief Executive Officer shall be the greatest of: (i) the
amount determined under Section VI of the Executive Compensation Agreement
without regard to this Section 2(D), except that, for purposes of the last
paragraph of Section VI of the Executive Compensation Agreement, the ALLTEL
Corporation Executive Deferred Compensation Plan shall include the ALLTEL
Corporation 1998 Management Deferred Compensation Plan; (ii) the amount
determined under Section VI of the Executive Compensation Agreement without
regard to this Section 2(D) but calculated using "SERP Compensation,"
as defined in Section 2.01(z) of the SERP, or any successor provision
thereto, as if the Executive were a "Participant" in the SERP
(irrespective of whether the Executive is a "Participant" in the SERP),
and if a Change in Control shall have occurred prior to July 1, 2002 while
the Executive is employed as Chief Executive Officer of the Corporation as if
the Executive were a SERP Participant to whom the SERP definition of
"Payment Trigger" applied and as if a "Payment Trigger" with
respect to the Executive had occurred, as the compensation taken into account
under Section VI of the Executive Compensation Agreement, in lieu of the
compensation that would otherwise be taken into account under Section VI of the
Executive Compensation Agreement; or (iii) an amount equal to two and one-half
multiplied by the Executive's base annual salary in effect on the date on
which the Executive's employment terminates as provided in Section 2(A). For
purposes of the immediately preceding sentence, any amendment to the SERP shall
be subject to the limitations contained in the SERP on amendments to the SERP
that would reduce benefits payable thereunder in the same manner as if the
Executive were a "Participant" in the SERP (irrespective of whether
the Executive is a "Participant" in the SERP) and as if the
Executive's "Early Retirement Date" has occurred.

(E) Except as provided below in this Section 2(E), the Executive's retirement
benefit under Section VI of the Executive Compensation Agreement, the death
benefit to the Executive's surviving spouse under the first paragraph of Section
VII of the Executive Compensation Agreement, the Executive's retiree medical
coverage (including, but not limited to, coverage under the Supplemental Medical
Expense Reimbursement Plan) under Section VIII of the Executive Compensation
Agreement, and the Executive's surviving spouse's medical coverage (including,
but not limited to, coverage under the Supplemental Medical Expense
Reimbursement Plan) under the second paragraph of Section VII of Executive
Compensation Agreement, shall continue for the life of the Executive, and the
life of the Executive's surviving spouse, as provided in the Executive
Compensation Agreement. The Compensation Committee of the Board, in its sole
discretion, may, however, accelerate the payment of the Executive's retirement
benefit (not including retiree medical coverage) under Section VI of the
Executive Compensation Agreement to the extent that it deems it equitable or
desirable under the circumstances, subject, however, to the Executive's prior
written consent. If payment of the Executive's retirement benefit is accelerated
under the immediately preceding sentence, the death benefit to the Executive's
surviving spouse under the first paragraph of Section VII of Executive
Compensation Agreement (not including retiree medical coverage) shall also be
accelerated. If the Executive should die prior to retirement, or if the
Executive dies after retirement but the Executive's retirement benefit under
Section VI of the Executive Compensation Agreement was not accelerated prior to
the Executive's death, the Compensation Committee of the Board, in its sole
discretion, may, however, accelerate the payment of the death benefit to the
Executive's surviving spouse under the first paragraph of Section VII of the Executive Compensation Agreement (not including retiree
medical coverage) to the extent that it deems it equitable or desirable under
the circumstances, subject, however, to the prior written consent of the
Executive's surviving spouse. Any action of the Compensation Committee
accelerating payment as described above shall not be changed unless the
Executive, or the Executive's surviving spouse if the Executive has died,
consents in writing thereto. Any accelerated payment under this Section 2(E)
shall be a single-sum payment that is the "Actuarial Equivalent" of
the benefit (or portion of benefit) the payment of which is being accelerated.
For purposes of this Section 2(E), "Actuarial Equivalent" shall have
the meaning set forth in the SERP. For purposes of the immediately preceding
sentence, any amendment to the SERP shall be subject to the limitations
contained in the SERP on amendments to the SERP that would reduce benefits
payable thereunder in the same manner as if the Executive were a
"Participant" in the SERP (irrespective of whether the Executive is a
"Participant" in the SERP) and as if the Executive's "Early
Retirement Date" has occurred.

(F) The Executive's retiree medical coverage (including, but not limited to,
coverage under the Supplemental Medical Expense Reimbursement Plan) under
Section VIII of the Executive Compensation Agreement and this Section 2 (F)
and the Executive's surviving spouse's medical coverage (including, but not
limited to, coverage under the Supplemental Medical Expense Reimbursement Plan)
under the second paragraph of Section VII of the Executive Compensation
Agreement and this Section 2 (F) shall be equivalent, in the aggregate, to the
benefits to which the Executive and the Executive's spouse were entitled
immediately prior to the Executive's termination of employment as Chief
Executive Officer and shall be provided to the Executive and the Executive's
spouse on a "pre-tax" basis:  If taxes are imposed on the
Executive or the Executive's spouse with respect to the coverage and/or benefits
the Corporation shall make an additional cash payment or payments to the
Executive and/or the Executive's spouse (a "Gross-Up Payment") in an
amount equal to the taxes imposed on the Executive and/or the Executive's spouse
with respect to the coverage and/or benefits and an amount sufficient to pay the
cumulative taxes (including any interest and penalties imposed with respect to
such taxes) relating to the Gross-Up Payment so that the coverage and/or
benefits received will be received without reduction for taxes. The Executive
and Executive's spouse as a condition to the benefit of this Section 2(F) shall
provide reasonable cooperation to the Corporation in obtaining any insurance
with respect to the coverage and/or benefits that the Corporation desires to
purchase. In the event any Gross-Up Payment under this Section 2(F) is
necessary, provisions substantially similar to the provisions of Section
3.05(c), Section 3.05(d), and Section 3.05(e) of the SERP shall apply. For
purposes of the immediately preceding sentence, any amendment to the SERP shall
be subject to the limitations contained in the SERP on amendment to the SERP
that would reduce benefits payable thereunder in the same manner as if the
Executive were a "Participant" in the SERP (irrespective of whether
the Executive is a "Participant" in the SERP) and as if the
Executive's "Early Retirement Date" has occurred.

3. Provisions Related to Post-Retirement Chairman Status.

(A) Upon the Executive's termination of employment as Chief Executive Officer
of the Corporation as provided in Section 2(A), the Executive's Post-Retirement
Chairman Status shall commence and shall continue thereafter until terminated in
accordance with Section 1(L).

(B) During the Executive's Post-Retirement Chairman Status, the Executive
shall be compensated by the Corporation with respect to his Post-Retirement
Chairman Status, as follows:

(i) For each calendar month or portion thereof during which the Executive's
Post-Retirement Chairman Status continues, the Corporation shall pay to the
Executive Twenty Thousand Eight Hundred Thirty-Three Dollars and Thirty-Four
Cents ($20,833.34).

(ii) The Corporation shall pay or reimburse the Executive for all reasonable
and customary business expenses that the Executive incurs in connection with the
business of the Corporation during the Executive's Post-Retirement Chairman
Status.

(iii) For purposes of determining vesting of the Executive's stock options,
the Executive shall be treated as if his employment with the Corporation had
continued during the Executive's Post-Retirement Chairman Status.

(iv) During the Executive's Post-Retirement Chairman Status, the Corporation
shall provide to the Executive reasonable office space and secretarial support,
either at the Corporation's principal executive offices or at such other
reasonable location as the Executive shall designate.

(v) During the Executive's Post-Retirement Chairman Status, the Corporation
shall continue reimbursement of the Executive's country club membership(s) on
the same basis as in effect at the Executive's termination of employment as
Chief Executive Officer.

(vi) During the Executive's Post-Retirement Chairman Status, the Executive
shall receive the following perquisites on the same basis as provided to senior
executive officers of the Corporation as in effect from time to time during the
Executive's Post-Retirement Chairman Status: annual physical exam reimbursement;
tax/estate planning reimbursement; and corporate plane usage. The Executive's
corporate plane usage shall be included in the annual review by the Corporation's
independent accountants of the Corporation's senior executives' plane usage
as required by the Audit Committee of the Board.

(vii) The foregoing compensation shall be paid at such times as are mutually
agreeable between the Corporation and the Executive, but the compensation shall
be paid to Executive promptly after it is due.

(viii) The foregoing compensation shall be in lieu of any director's fees,
director's meeting fees, director options, director stock grants, or other
amount payable to a member of the Board or the Chairman of the Board as such to
which the Executive would otherwise be entitled or receive by reason of being a
member of the Board of Directors of the Corporation.

4. Change in Control Payment Trigger Provisions.

(A) The Corporation shall pay to the Executive the payments described in this
Section 4 upon the occurrence of a Payment Trigger.

(B) Upon the occurrence of a Payment Trigger, the Corporation shall pay to
the Executive a lump sum payment, in cash, equal to the product of:

  
    (i) three multiplied by

    
      (ii) the sum of --

    

    (a) the higher of the Executive's annual base salary in effect
    immediately prior to the occurrence of the Change in Control or the
    Executive's annual base salary in effect immediately prior to the Payment
    Trigger, plus

    (b) the higher of the aggregate maximum amounts payable to the Executive
    pursuant to all incentive compensation plans for the fiscal year or other
    measuring period commencing coincident with or most recently prior to the
    date on which the Change in Control occurs or the aggregate maximum amounts
    payable to the Executive pursuant to all incentive compensation plans for
    the fiscal year or other measuring period commencing coincident with or most
    recently prior to the date on which the Payment Trigger occurs, in each
    case, assuming that the Executive were continuously employed by the
    Corporation or a Subsidiary on the terms and conditions, including, without
    limitation, the terms or the incentive plans, in effect immediately prior to
    the Change in Control or Payment Trigger, whichever applies, until the last
    day of that fiscal year or other measuring period.

  

For purposes of this Section 4(B), the amounts determined for purposes of (a)
and (b) of clause (ii) above (i.e., annual base salary and amounts pursuant
incentive compensation plan, respectively) shall be determined without regard to
the second paragraph of Section III of the Executive Compensation Agreement. For
purposes of this Section 4(B), amounts payable to the Executive pursuant to an
incentive compensation plan for the fiscal year or other measuring period
commencing coincident with or most recently prior to the date on which the
Change in Control or Payment Trigger, as applicable, occurs (the
"applicable year/period') shall not include amounts attributable to a
fiscal year or other measuring period that commenced prior to the applicable
year/period and that become payable during the applicable year/period. For
purposes of this Section 4(B), incentive compensation plans shall include,
without limitation, the Short-Term Incentive Plan, the Long-Term Incentive Plan,
and any incentive bonus plan or arrangement that provides for payment of cash
compensation, and shall exclude, without limitation, the ALLTEL Corporation
Executive Deferred Compensation Plan as in effect from time to time, the ALLTEL
Corporation 1998 Management Deferred Compensation Plan as in effect from time to
time, any plan qualified or intended to be qualified under Section 401(a) of the Code and any plan supplementary thereto, executive
fringe benefits, and any plan or arrangement under which stock, stock options,
stock appreciation rights, restricted stock or similar options, stock, or rights
are issued. The amount determined under the foregoing provisions of this Section
4(B) shall be reduced by any cash severance benefit otherwise paid to the
Executive under any applicable severance plan or other severance arrangement.

(C) Notwithstanding any provision of any incentive compensation plan,
including, without limitation, any provision of any incentive plan requiring
continued employment after the completed fiscal year or other measuring period,
the Corporation shall pay to the Executive a lump sum amount, in cash, equal to
the amount of any incentive compensation that has been allocated or awarded to
the Executive for a completed fiscal year or other measuring period preceding
the occurrence of a Payment Trigger under any incentive compensation plan but
has not yet been paid to the Executive.

(D) The payments provided for in Section 4(B) and Section 4(C) shall be made
not later than the fifth day following the occurrence of a Payment Trigger,
unless the amounts of such payments cannot be finally determined on or on or
before that day, in which case, the Corporation shall pay to the Executive on
that day an estimate, as reasonably determined in good faith by the Corporation
of the minimum amount of payments to which the Executive is clearly entitled and
shall pay the remainder of the payments (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code) as soon as the amount
thereof can be determined but in no event later than the thirtieth day after the
occurrence of a Payment Trigger. In the event the amount of the estimated
payments exceeds the amount subsequently determined to have been due, the excess
shall constitute a loan by the Corporation to the Executive, payable on the
fifth business day after demand by the Corporation (together with interest at
the rate provided in Section 1274(b)(2)(B) of the Code). At the time that
payments are made under this Section 4, the Corporation shall provide the
Executive with a written statement setting forth the manner in which the
payments were calculated and the basis for the calculations including, without
limitation, any opinions or other advice the Corporation has received from
outside counsel, auditors or consultants (and any opinions or advice that are in
writing shall be attached to the statement).

(E) Any purported termination of the Executive's employment for purposes of
this Section 4 (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with Section 12. For purposes of this Agreement, a "Notice
of Termination" shall mean a written notice that indicates whether a
specific provision in this Agreement or in any other agreement is being relied
upon, and, if applicable, the notice shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive's employment under any provision so indicated. Further, a Notice of
Termination for Cause shall include a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the entire membership of the
Board at a meeting of the Board that was called and held for the purpose of considering
the termination finding that, in the informed, reasonable, good faith judgment
of the Board, the Executive was guilty of conduct set forth in the definition of
Cause in Section 1(B), and specifying the particulars thereof in detail.

(F) "Date of Termination" with respect to any purported termination
of the Executive's employment for purposes of this Section 4 (other than by
reason of death) shall mean (i) if the Executive's employment is terminated
for Disability, 20 business days after Notice of Termination is given (provided
that the Executive shall not have returned to the full-time performance of the
Executive's duties during that 20 business day period) and (ii) if the
Executive's employment is terminated for any other reason, the date specified in
the Notice of Termination, which, in the case of a termination by the
Corporation, shall not be less than ten business days except in the case of a
termination for Cause, and, in the case of a termination by the Executive, shall
not be less than ten business days nor more than 20 business days, respectively,
after the date such Notice of Termination is given.

(G) Any Change in Control that for any reason ceases to constitute a Change
in Control or is not followed by a Payment Trigger shall not effect a
termination or lapse of the provisions of this Section 4. Any transfer of the
Executive's employment from the Corporation to a Subsidiary, from a Subsidiary
to the Corporation, or from one Subsidiary to another Subsidiary shall not
constitute a termination of the Executive's employment for purposes of this
Section 4.

(H) No amount or benefit shall be payable under this Section 4 unless a
Payment Trigger occurs (prior to July 1, 2002). In no event shall payments in
accordance with this Section 4 be made in respect of more than one Payment
Trigger.

(I) This Agreement shall not be construed as creating an express or implied
contract of employment and, except as otherwise agreed in writing between the
Executive and the Corporation, the Executive shall not have any right to be
retained in the employ of the Corporation or of a Subsidiary. Notwithstanding
the immediately preceding sentence or any other provision of this Agreement, no
purported termination of the Executive's employment that is not effected in
accordance with a Notice of Termination satisfying of Section 4(E) shall be
effective for purposes of this Section 4. The Executive's right, following the
occurrence of a Change in Control, to terminate his employment for Good Reason
shall not be affected by the Executive's Disability or incapacity. The
Executive's continued employment shall not constitute consent to, or a waiver of
rights with respect to, any act or failure to act constituting Good Reason.

(J) The Executive shall not be required to seek other employment or to
attempt in any way to reduce any amounts payable to the Executive by the
Corporation pursuant to this Agreement. Further, the amount of any payment or
benefit provided for in this Agreement shall not be reduced by any compensation
earned by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owned by the
Executive to the Corporation or a Subsidiary, or otherwise.

5. Parachute Tax.

(A) If any portion of the amount of any payment or benefit heretofore or
hereafter provided under this Agreement or under any other agreement with or
plan of the Corporation or any Subsidiary, including, but not limited to, stock
options, restricted stock, and other long-term incentives (each a
"Payment") would constitute an "Excess Parachute Payment"
such that an excise tax is triggered under Section 4999 of the Code in
respect of such amounts, then the Corporation shall pay to the Executive, in
cash, an additional amount (or amounts) equal to such excise tax and any
interest or penalties incurred by the Executive with respect thereto
(collectively, "Excise Tax"), together with any federal and state
income, employment and other excise taxes payable by the Executive in respect of
such payment (and to cover the resulting income, employment, and other excise
taxes resulting from each successive payment, and so on as necessary to
completely offset the Excise Tax impact) (a "Gross-Up Payment"). For
this purpose, the Executive shall be deemed to be subject to the highest
marginal rate of federal and state taxes.

(B) Subject to the provisions of this Section 5(B), all determinations
required to be made under this Section 5(B), including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at the determination, shall be made by a
nationally recognized certified public accounting firm acceptable to the
Corporation designated by the Executive (the "Accounting Firm") which
shall provide detailed supporting calculations both to the Corporation and the
Executive within 30 days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Corporation. All fees and expenses of the Accounting Firm shall be borne solely
by the Corporation. Any Gross-Up Payment, as determined in accordance with this
Section 5(B), shall be paid by the Corporation to the Executive within five
days after the receipt of the Accounting Firm's determination or, as soon as
practicable, as payments are made to the extent that compensation or benefits
subject to the Excise Tax is paid or made available after such date. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall so indicate to the Executive in writing. Any determination by the
Accounting Firm shall be binding upon the Corporation and the Executive. As a
result of uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm, it is possible that
Gross-Up Payments that should have made will not have been made (an
"Underpayment"), consistent with the calculations required to be made
hereunder. In the event the Corporation exhausts the Corporation's remedies in
accordance with Section 5(C) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount
of Underpayment that has occurred and the Underpayment shall be promptly paid by
the Corporation to or for the benefit of the Executive.

(C) The Executive shall notify the Corporation in writing of any claim by the
Internal Revenue Service that, if successful, would require a Gross-Up Payment
(that has not already been paid by the Corporation). The notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of the claim and shall apprise the Corporation
of the nature of the claim and the date on which the claim is requested to be
paid. The Executive shall not pay the claim prior to the expiration of the
30-day period following the date on which the Executive gives notice to the
Corporation or any shorter period ending on the date that any payment of taxes
with respect to the claim is due. If the Corporation notifies the Executive in
writing prior to the expiration of the 30-day period that it desires to contest
the claim, the Executive shall:

(a) give the Corporation any information reasonably requested by the
Corporation relating to the claim;

(b) take any action in connection with contesting the claim as the
Corporation shall reasonably request in writing from time to time, including,
but not limited to, accepting legal representation with respect to the claim by
an attorney reasonably selected by the Corporation;

(c) cooperate with the Corporation in good faith in order effectively to
contest the claim; and

(d) permit the Corporation to participate in any proceedings relating to the
claim.

The Corporation shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with the contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any
Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of the representation and payment of costs and expenses.
Without limiting the foregoing provisions of this Section 5(C), the
Corporation shall control all proceedings taken in connection with the contest
and, at its option, may pursue or forego any and all administrative appeals,
proceedings, hearings, and conferences with the taxing authority in respect of
the claim and may, at its or their sole option, either direct the Executive to
pay the tax claimed and sue for a refund or contest the claim in any permissible
manner, and the Executive shall prosecute the contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or
more appellate courts, as the Corporation shall determine. If the Corporation
directs the Executive to pay the claim and sue for a refund, the Corporation
shall advance the amount of the payment to the Executive, on an interest-free
basis, and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or other tax (including interest or penalties with
respect thereto) imposed with respect to the advance or with respect to any
imputed income with respect to the advance; and any extension of the statue of
limitations relating to payment of taxes for the taxable year of the Executive with respect to which the contested amount is claimed to be due shall be
limited solely to the contested amount. The Corporation's control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and the Executive shall be entitled to settle or contest, as
the case may be, any other issue raised by the Internal Revenue Service or any
other taxing authority. If, after the receipt by the Executive of an amount
advanced by the Corporation pursuant to this Section 5(C), the Executive
becomes entitled to receive any refund with respect to the claim, the Executive
shall, subject to the Corporation's compliance with the requirements of this
Section 5(C), promptly pay to the Corporation the amount of the refund
(together with any interest paid or credited thereon after taxes applicable
thereto). If, after the receipt by the Executive of an amount advanced by the
Corporation pursuant to this Section 5(C), a determination is made that the
Executive shall not be entitled to any refund with respect to the claim and the
Corporation does not notify the Executive in writing of its intent to contest
the denial of refund prior to the expiration of 30 days after the
determination, then the advance shall be forgiven and shall not be required to
be repaid and the amount of the advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

(D) Without limitation of the foregoing provisions of this Section 5,
the Executive and the Corporation shall each use their reasonable best efforts
to cooperate with each other in resolving any matter arising under this
Section 5.

(E) Notwithstanding any other provision of this Section 5, to the extent
that the Executive is entitled to a tax "gross-up" payment with
respect to a Payment under any other provision or agreement, there shall be no
duplication of "gross-up" payments with respect to that Payment.

6. Effect on Other Agreements.

(A) Except as otherwise expressly provided in this Agreement, this Agreement
shall not affect any other agreements or arrangements between the Corporation or
any of its subsidiaries and the Executive under which the Corporation or any
such subsidiary would be obligated to make any payment to or pay any benefit to
or with respect to the Executive or any person or entity claiming through the
Executive, including, but not limited to, the Executive Compensation Agreement,
which shall remain in full force and effect and under which the Corporation
shall remain obligated.

(B) Neither the execution or delivery of this Agreement nor the consummation
of the actions contemplated hereby shall be a breach or default by any party
under the Executive Compensation Agreement, and the Executive Compensation
Agreement shall be deemed modified to the extent necessary to be consistent with
the intent and purposes of this Agreement.

 

7. Tax Matters. The Corporation shall report amounts paid by
the Corporation (or its subsidiaries) to the Executive as required by law. The
Executive shall retain all responsibility and liability for taxes, including but
not limited to, income taxes and Social Security/Medicare taxes on amounts paid
to the Executive that are "self-employment income" (or the like),
except to the extent provided in Section 2(F) and in Section 5. The
Corporation may withhold from any amounts payable to the Executive all federal,
state, city, or other taxes or payments as may be required pursuant to any law
or governmental regulation or ruling or as may be expressly authorized by the
Executive to be withheld, deducted or reduced from those amounts.

8. General Provisions.

(A) The Corporation hereby represents and warrants to the Executive as
follows: The execution and delivery of this Agreement and the performance by the
Corporation of the actions contemplated hereby have been duly authorized by all
necessary corporate action on the part of the Corporation. This Agreement is a
legal, valid and legally binding obligation of the Corporation enforceable in
accordance with its terms. Neither the execution or delivery of this Agreement
nor the consummation by the Corporation of the actions contemplated hereby (i) will
violate any provision of the certificate of incorporation or bylaws (or other
charter documents) of the Corporation, (ii) will violate or be in conflict
with any applicable law or any judgment, decree, injunction or order of any
court or governmental agency or authority, or (iii) will violate or
conflict with or constitute a default (or an event of which, with notice or
lapse of time or both, would constitute a default) under or will result in the
termination of, accelerate the performance required by, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the assets or properties of the Corporation
under, any term or provision of the certificate of incorporation or bylaws (or
other charter documents) of the Corporation or of any contract, commitment,
understanding, arrangement, agreement or restriction of any kind or character to
which the Corporation is a party or by which the Corporation or any of its
properties or assets may be bound or affected.

(B) The parties warrant that they fully understand this Agreement; that no
promise or inducement has been offered to them to enter into this Agreement
except as expressly set forth herein; that they are competent and authorized to
enter into this Agreement; and that this Agreement is executed with full
knowledge and understanding of its contents.

9. Non-Assignment. Any rights to payments or benefits under
this Agreement payable to or with respect to the Executive may not be assigned,
voluntarily or involuntarily, and any attempt to do so shall be void.

10. Disputes.

(A) If a dispute or controversy arises out of or in connection with this
Agreement, the parties shall first attempt in good faith to settle the dispute
or controversy by mediation under the Commercial Mediation Rules of the American
Arbitration Association before resorting to arbitration or litigation.
Thereafter, any remaining unresolved dispute or controversy arising out of or in
connection with this Agreement shall, upon a written notice from the Executive
to the Corporation either before suit thereupon is filed or within 20 business
days thereafter, be settled exclusively by arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association in a city
located within the continental United States designated by the Executive.
Judgment may be entered on the arbitrator's award in any court having jurisdiction. The Executive shall, however, be entitled to seek
specific performance of the Corporation's obligations hereunder during the
pendency of any dispute or controversy arising under or in connection with this
Agreement.

(B) Any legal action concerning this Agreement, other than a mediation or an
arbitration described in Section 10(A), whether instituted by the
Corporation or the Executive, shall be brought and resolved only in a state
court of competent jurisdiction located in the territory that encompasses the
city, county, or parish in which the Executive's principal residence is located
at the time such action is commenced. The Corporation hereby irrevocably
consents and submits to and shall take any action necessary to subject itself to
the personal jurisdiction of that court and hereby irrevocably agrees that all
claims in respect of the action shall be instituted, heard, and determined in
that court. The Corporation agrees that such court is a convenient forum, and
hereby irrevocably waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of the action. Any final
judgment in the action may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

(C) The Corporation shall pay all costs and expenses, including attorneys'
fees and disbursements, of the Corporation and, at least monthly, the Executive
in connection with any legal proceeding (including arbitration), whether or not
instituted by the Corporation or the Executive, relating to the interpretation
or enforcement of any provision of this Agreement, provided that if the
Executive instituted the proceeding and the judge, arbitrator, or other
individual presiding over the proceeding affirmatively finds that the Executive
instituted the proceeding in bad faith, the Executive shall pay all costs and
expenses, including attorney's fees and disbursements, of Executive and the
Corporation. The Corporation shall pay prejudgment interest on any money
judgment obtained by Executive as a result of such proceeding, calculated at the
rate provided in Section 1274(b)(2)(B) of the Code.

11. Successors; Binding Effect.

(A) This Agreement shall inure to the benefit of and be binding upon the
Corporation and any successor to its business or assets by operation of law or
otherwise.

(B) In addition to any obligations imposed by law upon any successor to the
Corporation, the Corporation shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business or assets of the Corporation expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Corporation would be required to perform it if no such
succession had taken place, and the Corporation shall not merge or consolidate
with or sell or transfer all or substantially all of its assets to any other
business entity or person until and unless such entity or person expressly
assumes the obligations of the Corporation under this Agreement. Failure of the
Corporation to obtain the assumption and agreement prior to the effectiveness of
any succession shall be a breach of this Agreement and shall entitle the
Executive to compensation from the Corporation in the same amount and on the
same terms as the Executive would be entitled to hereunder if the Executive were
to terminate his employment for Good Reason immediately after a Change in
Control, except that, for purposes of implementing the foregoing, the date on
which any succession becomes effective shall be deemed the Payment Trigger
occasioned by the foregoing deemed termination of employment for Good Reason
immediately following a Change in Control. The provisions of this
Section 11 shall continue to apply to each subsequent employer of the
Executive bound by this Agreement in the event of any merger, consolidation, or
transfer of all or substantially all of the business or assets of that
subsequent employer.

(C) This Agreement shall inure to the benefit of and be binding upon the
Executive and the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, legatees, and any
other person or entity claiming through the Executive. If the Executive shall
die while any amount would be payable to the Executive hereunder (other than
amounts which, by their terms, terminate upon the death of the Executive) if the
Executive had continued to live, unless otherwise provided herein, the amount(s)
shall be paid in accordance with the terms of this Agreement to the executors,
personal representatives or administrators of the Executive's estate.

12. Notices. Notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by United States registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth
below, or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address shall
be effective only upon actual receipt:

To the Corporation:

 

           
ALLTEL Corporation

           
One Allied Drive

           
Little Rock, Arkansas 72202

           
Attention:  Corporate Secretary

 

To the Executive:

 

    Prior to January 1, 2002:

           
Mr. Joe T. Ford

           
2100 Country Club Lane

           
Little Rock, Arkansas 72207

 

From and after January 1, 2002 (or such earlier date specified by the 

Executive):

           
Mr. Joe T. Ford

           
Plaza at Turtle Creek

           
#1303

           
2828 Hood Street

           
Dallas, Texas 75219

13. Miscellaneous. No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in writing and signed by the Executive and an officer of the
Corporation specifically designated by the Board. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set
forth in this Agreement.

14. Construction. Section titles herein are for ease of
reference purposes only and shall not be considered in the construction of this
Agreement.

15. Validity. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect. If any part of the Agreement is found to be unenforceable the other
provisions shall remain fully valid and enforceable. In the event any provision
of this Agreement is held unenforceable, such provision shall be reformed so as
to be enforced to the maximum extent possible, and that if a court determines
that it is not possible to reform any such provision of this Agreement, such
provision will be severed from the Agreement and the remainder of the Agreement
shall be enforced to the full extent permitted by law.

16. Governing Law. The provisions of this Agreement shall be
construed and enforced in accordance with the laws of the State of Delaware.

17. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have signed this Agreement on the date set
forth above.

    

 

                                                

		ALLTEL
CORPORATION       

       

      By     
      /s/ Francis X. Frantz          

      
      

    
			Name:     Francis X. Frantz
			Title:        Executive
      V.P.
		
		 
       

       

       

	Witness:	EXECUTIVE
	/s/ Francis X.
      Frantz                           	/s/ Joe T.
      Ford                         
	Name:   Francis X. Frantz	Joe T. FordExhibit 10(e)(1)

 

 

 

 

 

 

ALLTEL
CORPORATION

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

(First
Restatement)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

ARTICLE                                                                                                                                                                                                
PAGE

	I	Preamble	1
		1.01 Establishment and
      Restatement	1
		1.02 Purpose	1
		1.03 Funding 	1
			
	II	Definitions and Interpretation	1
		2.01 Definitions	1
			(a)	Actuarial Equivalent	1
			(b)	Benefit Percentage	1
			(c)	Board 	2
			(d)	Change in Control	2
			(e)	Code	2
			(f)	Company	2
			(g)	Compensation	2
			(h)	Controlled Group	3
			(i)	Defined Benefit Plan	4
			(j)	Defined Contribution Plan	4
			(k)	Early Retirement Date	5
			(l)	Employee Amounts	5
			(m)	ERISA	6
			(n)	Excess Plan	6
			(o)	Non-Qualified Defined Benefit Plan	6
			(p)	Non-Qualified Defined Contribution Plan	6
			(q)	Normal Retirement Date	8
			(r)	Offset Defined Benefit Amounts	8
			(s)	Offset Defined Contribution Amounts	8
			(t)	Participant	8
			(u)	Payment Trigger	8
			(v)	Payment Trigger Compensation	9
			(w)	Pension Plan	10
			(x)	Profit-Sharing Plan	11
			(y)	Retirement	11
			(z)	SERP Compensation	11
			(aa)	Spouse	11
			(bb)	Thrift Plan	11
			(cc)	Vesting Year of Service	11
					
		2.02 Construction and Governing Law	12
			
	III	Retirement and Spousal Death
      Benefits	12
		3.01 Eligibility	12
		3.02 Amount of Retirement Benefit	12
		3.03 Amount of Pre-Retirement
      Spouse Death Benefit	12
		3.04 Form and Timing of Payment	13
		3.05 Health and Dental Benefits	13
			
	IV	Administration	17
			
		4.01 Plan Administrator	17
		4.02 Expenses	17
		4.03 Records	17
		4.04 Legal Incompetency	17
		4.05 Claims Procedure	18
			
	V	Miscellaneous	18
			
		5.01 Amendments	18
		5.02 No Employment Rights	18
		5.03 Nonalienation	18
		5.04 Limitation of Liability	18
		5.05 Acceleration of Payment	19
		5.06 Representative of Board;
      Compensation Comittee	19
		5.07 Other Benefits	19
		5.08 Reemployment of a
      Participant	20

 

ARTICLE
I

Preamble

Section 1.01.  Establishment and Restatement .
ALLTEL Corporation established the ALLTEL Corporation Supplemental Executive
Retirement Plan (the "Plan"), effective as of October 24, 1994.
The Plan was subsequently amended on five occasions pursuant to resolutions of
the Board of Directors ("Board") of the Company. The Board has
determined that the Plan shall be restated to reflect all previous amendments,
and the Plan is hereby restated to provide as hereinafter set forth:

Section 1.02.  Purpose .  The
purpose of the Plan is solely to provide benefits to a select group of
management or highly compensated employees.

Section 1.03.  Funding .  The
Plan is unfunded, and the rights, if any, of any person to any benefits
hereunder shall be the same as any unsecured general creditor of the Company.
The benefits payable under the Plan shall be paid by the Company from its
general assets.

ARTICLE
II

Definitions
and Interpretation

Section 2.01.  Definitions .  When
the initial letter of a word or phrase is capitalized herein, such word or
phrase shall have the meaning hereinafter set forth:

  
    
      
        (a) "Actuarial Equivalent" means a benefit of equivalent
        actuarial present value determined on the basis of a fixed blend of 50
        percent male mortality rates and 50 percent female mortality rates from
        the 1983 GAM table, as published in Revenue Ruling 95-6, 1995-1 C.B. 80
        (without regard to any modification thereof), and the annual interest
        rate on 30-year Treasury securities for the month of November (published
        in December) immediately preceding the calendar year containing the date
        as of which the Actuarial Equivalent value is being determined. The
        blended mortality basis specified in the immediately preceding sentence
        shall be applied without setback, projection or other adjustment and
        without regard to the gender of the payee(s).

        (b) "Benefit Percentage " means: (1) with respect to a
        Participant whose Normal Retirement Date has occurred, sixty percent
        (60%); or (2) with respect to a Participant whose Normal Retirement
        Date has not occurred but whose Early Retirement Date has occurred,
        forty-five percent (45%), increased, but not to in excess of sixty
        percent (60%), by a percentage equal to the product of fifteen percent
        (15%) and a fraction, the numerator of which is the number of completed
        calendar months of service of the Participant with the Controlled Group
        occurring in and after the calendar month in which his Early Retirement
        Date occurred and prior to his Normal Retirement Date, and the
        denominator of which is the number of completed calendar months of
        service with the Controlled Group the Participant would have if he
        remained continuously employed with the Controlled Group in and after
        the calendar month in which the Participant's Early Retirement Date
        occurred until the last day of the calendar month immediately preceding
        the date on which his Normal Retirement Date would occur if he remained
        continuously employed by the Controlled Group.

        (c) "Board " means the Board of Directors of the Company.

        (d) "Change in Control " means, with respect to a
        Participant designated by the Board as being a Participant to whom this
        definition applies, an event defined as such in a certain written
        agreement between the Company and the Participant that occurs during the
        term of that agreement. The Participants as of the effective date of the
        Plan to whom this definition applies and the dates on which the
        applicable written agreement between the Company and the Participant was
        executed are as follows: John C. Comparin - October 24, 1994;
        Dennis J. Ferra - October 24, 1994; Francis X. Frantz -
        October 24, 1994; Carroll D. McHenry - October 24, 1994;
        James W. Milligan - October 24, 1994; Tom T. Orsini -
        October 24, 1994; and Ronald D. Payne - October 24, 1994.

        (e) "Code " means the Internal Revenue Code of 1986, as
        amended, or corresponding provisions of any subsequent federal tax laws.

        (f) "Company " means ALLTEL Corporation, a Delaware
        corporation, its successors and survivors resulting from any merger or
        acquisition of ALLTEL Corporation with or by any other corporation or
        other entity or enterprise.

        (g) "Compensation " means, with respect to the Controlled
        Group, for a calendar year, the sum of: (a) the Participant's base
        salary paid to the Participant during the calendar year; and (b) the
        total of all amounts paid to the Participant pursuant to all incentive
        compensation plans during the calendar year.

        For purposes of this definition, incentive compensation plans shall
        include, without limitation, the ALLTEL Corporation Performance
        Incentive Compensation Plan or any successor thereto as in effect from
        time to time, the ALLTEL Corporation Long-Term Performance Incentive
        Compensation Plan or any successor thereto as in effect from time to
        time, and any incentive bonus plan or arrangement that provides for
        payment of cash compensation, and shall exclude, without limitation, the
        ALLTEL Corporation Executive Deferred Compensation Plan or any successor
        thereto as in effect from time to time, the ALLTEL Corporation 1998
        Management Deferred Compensation Plan or any successor thereto as in
        effect from time to time, any plan qualified or intended to be qualified
        under Section 401(a) of the Code and any plan supplementary thereto,
        executive fringe benefits, and any plan or arrangement under which
        stock, stock options, stock appreciation rights, restricted stock or
        similar options, stock, or rights are issued.

        Notwithstanding the foregoing: (1) Compensation shall not be affected
        by any compensation reduction pursuant to a "cafeteria plan"
        as defined in Section 125 of the Code; (2) Compensation shall not be
        affected by the deferral of any amount that would otherwise constitute
        Compensation under any cash-or-deferred arrangement under Section 401(k)
        of the Code or under any nonqualified arrangement, and any such deferred
        amount (that would otherwise be Compensation) shall be credited to the
        Participant as Compensation during the calendar year when the deferred
        amount would have been paid (in the absence of the deferral election)
        rather than during the period when the deferred amount is paid; and (3)
        in no event shall any of the following be included as Compensation: (a)
        any bonus payment not paid pursuant to a formalized incentive
        compensation plan or arrangement covering executives of the Controlled
        Group;(b) any payment, whether paid before or after employment
        termination, pursuant to or in respect of any severance or change in
        control plan, arrangement, or agreement, including, without limitation,
        any agreement covered by Section 2.01(v), the Amended and Restated
        Change-In-Control Severance Agreement dated as of December 29, 1997
        between Kevin L. Beebe and 360 Communications Company, as amended, and
        the Amended and Restated Change-In-Control Severance Agreement dated as
        of December 29, 1997 between Jeffery R. Gardner and 360 Communications
        Company, as amended; and (c) any amount paid or payable under the Plan.

        (h) "Controlled Group " means the Company and any and all
        other corporations, trades and/or businesses or organizations, the
        employees of which together with the employees of the Company are
        required, pursuant to the applicable provisions of Section 414 of
        the Internal Revenue Code of 1986 as in effect on January 1, 1994,
        to be treated as if they were employed by a single employer, but with
        respect only to periods during which the controlled group status
        described in Section 414 of the Internal Revenue Code of 1986 as in
        effect on January 1, 1994 exists.

        (i) "Defined Benefit Plan " means the Pension Plan and any
        portion (or all) of any plan that is a defined benefit plan, as defined
        in ERISA, maintained at any time by any member of the Controlled Group
        that is intended at any time by the sponsor thereof to be a plan
        qualified under Section 401(a) of the Code. Notwithstanding the
        foregoing: (1) In the case of Kevin L. Beebe, any plan that is
        (or was) a defined benefit plan, as defined in ERISA, maintained at any
        time by 360 Communications Company, any affiliate of 360E
        Communications Company, any predecessor of 360 Communications Company,
        or any affiliate of any predecessor of 360 Communications Company that
        is (or was) intended at any time by the sponsor thereof to be a plan
        qualified under Section 401(a) of the Code shall be treated as a
        Defined Benefit Plan for purposes of the Plan; (2) In the case of
        Michael T. Flynn, any plan that is (or was) a defined benefit plan,
        as defined in ERISA, maintained at any time by Southwestern Bell
        Corporation, any affiliate of Southwestern Bell Corporation, any
        predecessor of Southwestern Bell Corporation, or any affiliate of any
        predecessor of Southwestern Bell Corporation that is (or was) intended
        at any time by the sponsor thereof to be a plan qualified under
        Section 401(a) of the Code shall be treated as a Defined Benefit
        Plan for purposes of the Plan; and (3) In the case of Jeffery R.
        Gardner, any plan that is (or was) a defined benefit plan, as defined in
        ERISA, maintained at any time by 360 Communications Company, any
        affiliate of 360 Communications Company, any predecessor of 360
        Communications Company, or any affiliate of any predecessor of 360
        Communications Company that is (or was) intended at any time by the
        sponsor thereof to be a plan qualified under Section 401(a) of the
        Code shall be treated as a Defined Benefit Plan for purposes of the
        Plan.

        (j) "Defined Contribution Plan " means the Profit-Sharing
        Plan, the Thrift Plan, and any portion (or all) of any plan that is a
        defined contribution plan, as defined in ERISA, maintained at any time
        by any member of the Controlled Group that is intended at any time by
        the sponsor thereof to be a plan qualified under Section 401(a) of the
        Code, excluding, however, the Allied Telephone Company Profit Sharing
        Plan, as amended from time to time, and any portion of any other plan
        attributable to any merger with or transfer of assets and liabilities
        from the Allied Telephone Company Profit Sharing Plan, as amended from
        time to time. Notwithstanding the foregoing: (1) In case of Kevin L.
        Beebe, the 360 Communications Company Retirement Savings Plan or any
        successor thereto, as amended from time to time, shall be treated as a
        Defined Contribution Plan for purposes of the Plan; and (2) In the case
        of Michael T. Flynn, any plan that is (or was), a defined contribution
        plan, as defined in ERISA, maintained at any time by Southwestern Bell
        Corporation, and any affiliate of Southwestern Bell Corporation, any
        predecessor of Southwestern Bell Corporation, or any affiliate of any
        predecessor of Southwestern Bell Corporation that is (or was) intended
        at any time by the sponsor thereof to be a plan qualified under Section
        401(a) of the Code shall be treated as a Defined Contribution Plan for
        purposes of the Plan; and (3) In the case of Jeffery R. Gardner, the 360
        Communications Company Retirement Savings Plan or any successor thereto,
        as amended from time to time, shall be treated as a Defined Contribution
        Plan for purposes of the Plan

        (k) "Early Retirement Date " means the date on which the
        earliest of the following has occurred with respect to the Participant:
        (1) the Participant is alive, the Participant is an employee of the
        Controlled Group, the Participant has 20 or more Vesting Years of
        Service, and the last day of the calendar month in which the
        Participant's fifty-fifth (55th) birthday occurs has ended; (2) the
        Participant is alive, the Participant is an employee of the Controlled
        Group, the Participant has 15 or more Vesting Years of Service, and the
        last day of the calendar month in which the Participant's sixtieth
        (60th) birthday occurs has ended; or (3) the Participant is alive
        and a Payment Trigger with respect to the Participant has occurred.

        (l) "Employee Amounts " means any accrued benefit under any
        Defined Benefit Plan, any Defined Contribution Plan, any Non-Qualified
        Defined Benefit Plan, and any Non-Qualified Defined Contribution Plan
        attributable to employee after-tax contributions, elective contributions
        under Section 401(k) of the Code, rollover contributions under
        Section 402 of the Code to the extent attributable to a
        distribution from a plan not at any time maintained by any member of the
        Controlled Group or to elective contributions under Section 401(k)
        of the Code, or employee elective compensation reductions or deferrals
        under any non-qualified arrangement (including earnings on such
        contributions), but excluding any amounts attributable to matching
        contributions described in Section 401(m) of the Code of a member
        of the Controlled Group or amounts under any non-qualified arrangement
        that would be matching contributions described in Section 401(m) of
        the Code if the non-qualified arrangement were part of a Defined
        Contribution Plan.

        (m) "ERISA " means the Employee Retirement Income Security
        Act of 1974, as amended, or corresponding provisions of any subsequent
        federal laws.

        (n) "Excess Plan " means the ALLTEL Corporation Excess
        Benefit Plan or any successor thereto, as amended from time to time, the
        Systematics Information Services, Inc. Excess Benefit Plan or any
        successor thereto, as amended from time to time, and/or the Computer
        Power, Inc. Excess Benefit Plan or any successor thereto, as amended
        from time to time.

        (o) "Non-Qualified Defined Benefit Plan " means the portion
        of the Excess Plan that provides a defined benefit and the portion (or
        all) of any plan that is a defined benefit plan, as defined in ERISA,
        maintained at any time by any member of the Controlled Group that is not
        intended at any time by the sponsor thereof to be a plan qualified under
        Section 401(a) of the Code. For purposes of this definition, whether an
        arrangement is a defined benefit plan as defined in ERISA shall be
        determined without regard to Section 3(36) of ERISA, Section 4
        of ERISA, or any other provision of ERISA that provides a partial or
        total exclusion from coverage under or applicability of ERISA, without
        regard to whether the arrangement covers more than one employee, and
        without regard to whether the arrangement meets any formality
        requirements to be considered a plan. Notwithstanding the foregoing, in
        the case of Michael T. Flynn: (1) the provisions of
        Article II and Article IV (and other provisions integrally
        thereto) of the Amended and Restated Supplemental Retirement Benefit
        Agreement dated July 14, 1997 between Michael T. Flynn and
        ALLTEL Corporation, as amended from time to time, shall be treated as a
        Non-Qualified Defined Benefit Plan for purposes of the Plan; and
        (2) any similar non-qualified retirement benefit or survivor
        benefit arrangement maintained by Southwestern Bell Corporation or any
        of its affiliates or any of their successors shall be treated as a
        Non-Qualified Defined Benefit Plan for purposes of the Plan.

        (p) "Non-Qualified Defined Contribution Plan " means those
        portions of the Excess Plan, the ALLTEL Corporation Executive Deferred
        Compensation Plan or any successor thereto, as amended from time to
        time, the ALLTEL Corporation 1998 Management Deferred Compensation Plan
        or any successor thereto, as amended from time to time, the ALLTEL
        Corporation Performance Incentive Plan or any successor thereto, as
        amended from time to time, and the ALLTEL Corporation Long-Term
        Performance Incentive Compensation Plan or any successor thereto, as
        amended from time to time, that provides deferred compensation based on
        a hypothetical defined contribution, and the portion (or all) of any
        plan that is a defined contribution plan, as defined in ERISA,
        maintained at any time by any member of the Controlled Group that is not
        intended at any time by the sponsor thereof to be a plan qualified under
        Section 401(a) of the Code. For purposes of this definition, whether an
        arrangement is a defined contribution plan as defined in ERISA shall be
        determined without regard to Section 3(36) of ERISA, Section 4
        of ERISA, or any other provision of ERISA that provides a partial or
        total exclusion from coverage under or applicability of ERISA, without
        regard to whether the arrangement covers more than one employee, and
        without regard to whether the arrangement meets any formality
        requirements to be considered a plan. Notwithstanding the foregoing: (1)
        In the case of Kevin L. Beebe, the 360 Communications Company Deferred
        Compensation Plan or any successor thereto, as amended from time to
        time, shall be treated as a Non-Qualified Defined Contribution Plan for
        purposes of the Plan; (2) In the case of Kevin L. Beebe, the 360
        Communications Company Retirement Savings Restoration Plan or any
        successor thereto, as amended from time to time, shall be treated as a
        Non-Qualified Defined Contribution Plan for purposes of the Plan; (3) In
        the case of Michael T. Flynn, the provisions of Article III (and other
        provisions integrally related thereto) of the Amended and Restated
        Supplemental Retirement Benefit Agreement dated July 14, 1997 between
        Michael T. Flynn and ALLTEL Corporation, as amended from time to time,
        shall be treated as a Non-Qualified Defined Contribution Plan for
        purposes of the Plan, and any non-qualified defined contribution plan
        maintained at any time by Southwestern Bell Corporation, any affiliate
        of Southwestern Bell Corporation, any predecessor of Southwestern Bell
        Corporation, or any affiliate of any predecessor of Southwestern Bell
        Corporation shall be treated as a Non-Qualified Defined Contribution
        Plan for purposes of the Plan;(4) In the case of Jeffery R. Gardner, the
        360 Communications Company Deferred Compensation Plan or any successor
        thereto, as amended from time to time, shall be treated as a
        Non-Qualified Defined Contribution Plan for purposes of the Plan; and
        (5) In the case of Jeffery R. Gardner, the 360 Communications Company
        Retirement Savings Restoration Plan or any successor thereto, as amended
        from time to time, shall be treated as a Non-Qualified Defined
        Contribution Plan for purposes of the Plan.

        (q) "Normal Retirement Date " means the date on which the
        earliest of the following has occurred with respect to the Participant:
        (1) the Participant is alive, the Participant is an employee of the
        Controlled Group, and the last day of the calendar month in which the
        Participant's sixty-fifth (65th) birthday occurs has ended; or
        (2) the Participant is alive, the Participant's Early Retirement
        Date has occurred other than by reason of a Payment Trigger, and a
        Payment Trigger with respect to the Participant has occurred.

        (r) "Offset Defined Benefit Amounts " means the Actuarial
        Equivalent of any accrued benefits under any Defined Benefit Plan and/or
        any Non-Qualified Defined Benefit Plan that have been distributed or
        paid to, with respect to, or on behalf of the Participant or that are
        currently payable to, with respect to, or on behalf of the Participant
        determined without regard to any requirement that the Participant elect
        to receive such benefits, but excluding any Employee Amounts.

        (s) "Offset Defined Contribution Amounts " means the sum
        of: (1) the Actuarial Equivalent of any accrued benefits under any
        Defined Contribution Plan and/or any Non-Qualified Defined Contribution
        Plan determined as of the most recent valuation date for determining
        accrued benefits thereunder immediately preceding the date as of which
        the retirement or Spouse pre-retirement death benefit hereunder
        commences, but excluding any Employee Amounts; (2) the Actuarial
        Equivalent of any accrued benefits under any Defined Contribution
        Plan and/or any Non-Qualified Defined Contribution Plan distributed or
        paid to, with respect to, or on behalf of the Participant prior to the
        valuation date referred to in (1) above, but excluding any Employee
        Amounts. For purposes of this definition, amounts described in
        clause (2) transferred in a rollover under Section 402 of the
        Code to a plan maintained by a member of the Controlled Group and not
        again distributed or paid to, with respect to, or on behalf of the
        Participant, shall be taken into account under clause (1) of
        this definition and not under clause (2) of this definition.

        (t) "Participant " means a person (1) who is
        designated by the Board as a participant in the Plan, and (2) who
        agrees to be bound by the provisions of the Plan on a form provided by
        the Company. The only Participants as of the date of this restatement of
        the Plan are the persons listed in Section 2.01(u).

        (u) "Payment Trigger " means, with respect to a Participant
        designated by the Board as being a Participant to whom this definition
        applies, an event defined as such in a certain written agreement between
        the Company and the Participant that occurs during the term of that
        agreement. The Participants as of the date of this restatement of the
        Plan to whom this definition applies and the dates on which the
        applicable written agreement between the Company and the Participant was
        executed are as follows: Francis X. Frantz - October 24, 1994;
        James W. Milligan - October 24, 1994; Scott T. Ford - April
        25, 1996; Jeffrey H. Fox - January 30, 1997; Kevin L. Beebe -
        July 23, 1998; Michael T. Flynn - July 23, 1998; and
        Jeffery R. Gardner - January 28, 1999.

        (v) "Payment Trigger Compensation " means, with respect to
        the Controlled Group, the sum of: (1) the highest of (a) the
        Participant's annual base salary in effect immediately prior to the
        occurrence of a Change in Control, (b) the Participant's annual
        base salary in effect immediately prior to the occurrence of a Payment
        Trigger, or (c) the Participant's annual base salary in effect on
        the day immediately preceding the Participant's Retirement; and
        (2) the highest of (a) the aggregate maximum amounts payable
        to the Participant pursuant to all incentive compensation plans for the
        fiscal year or other measuring period commencing coincident with or most
        recently prior to the date on which a Change in Control occurs,
        (b) the aggregate maximum amounts payable to the Participant
        pursuant to all incentive compensation plans for the fiscal year or
        other measuring period commencing coincident with or most recently prior
        to the date on which a Payment Trigger occurs, or (c) the aggregate
        maximum amounts payable to the Participant pursuant to all incentive
        compensation plans for the fiscal year or other measuring period
        commencing coincident with or most recently prior to the date of the
        Participant's Retirement, in each case assuming that the Participant
        were continuously employed by the Controlled Group on the terms and
        conditions, including, without limitation, the terms of the incentive
        plans, in effect immediately prior to the Change in Control, Payment
        Trigger, or Retirement whichever applies, until the last day of that
        fiscal year or other measuring period. For purposes of this definition,
        amounts payable to the Participant pursuant to an incentive compensation
        plan for the fiscal year or other measuring period commencing coincident
        with or most recently prior to the date on which the Change of Control,
        Payment Trigger, or Retirement, as applicable, occurs (the
        "applicable year/period") shall not include amounts
        attributable to a fiscal year or other measuring period that commenced
        prior to the applicable year/period and that become payable during the
        applicable year/period.

        For purposes of this definition, incentive compensation plans shall
        include, without limitation, the ALLTEL Corporation Performance
        Incentive Compensation Plan or any successor thereto as in effect from
        time to time, the ALLTEL Corporation Long-Term Performance Incentive
        Compensation Plan or any successor thereto as in effect from time to
        time, and any incentive bonus plan or arrangement that provides for
        payment of cash compensation, and shall exclude, without limitation, the
        ALLTEL Corporation Executive Deferred Compensation Plan or any successor
        thereto as in effect from time to time, the ALLTEL Corporation 1998
        Management Deferred Compensation Plan or any successor thereto as in
        effect from time to time, any plan qualified or intended to be qualified
        under Section 401(a) of the Code and any plan supplementary thereto,
        executive fringe benefits, and any plan or arrangement under which
        stock, stock options, stock appreciation rights, restricted stock or
        similar options, stock, or rights are issued.

        Notwithstanding the foregoing: (1) Payment Trigger Compensation shall
        not be affected by any compensation reduction pursuant to a
        "cafeteria plan" as defined in Section 125 of the Code;
        (2) Payment Trigger Compensation shall not be affected by the
        deferral of any amount that would otherwise constitute Compensation
        under any cash-or-deferred arrangement under Section 401(k) of the Code
        or under any nonqualified arrangement, and any such deferred amount
        (that would otherwise constitute Payment Trigger Compensation) shall be
        taken into account as of the date the deferred amount would have been
        payable (in the absence of the deferral election) rather than when the
        deferred amount is payable; and (3) in no event shall any of the
        following be included as Payment Trigger Compensation: (a) any bonus
        payment not paid or payable pursuant to a formalized incentive
        compensation plan or arrangement covering executives of the Controlled
        Group;(b) any payment, whether paid or payable before or after
        employment termination, pursuant to or in respect of any severance or
        change in control plan, arrangement, or agreement, including, without
        limitation, any agreement covered by Section 2.01(v), the Amended and
        Restated Change-In-Control Severance Agreement dated as of December 29,
        1997 between Kevin L. Beebe and 360 Communications Company, as amended,
        and the Amended and Restated Change-In-Control Severance Agreement dated
        as of December 29, 1997 between Jeffery R. Gardner and 360
        Communications Company, as amended; and (c) any amount paid or payable
        under the Plan.

        (w) "Pension Plan " means the ALLTEL Corporation Pension
        Plan or any successor thereto, as amended from time to time.

        (x) "Profit-Sharing Plan " means the ALLTEL Corporation
        Profit-Sharing Plan or any successor thereto, as amended from time to
        time, the Profit Sharing Plan for Employees of Systematics Information
        Services, Inc. and Participating Affiliates or any successor thereto, as
        amended from time to time, and/or the TDS Healthcare Systems Corporation
        Profit Sharing Plan or any successor thereto, as amended from time to
        time.

        (y) "Retirement " means that the Participant is alive and
        is no longer an employee of any member of the Controlled Group on a date
        occurring after the Participant's Normal Retirement Date or after the
        Participant's Early Retirement Date.

        (z) "SERP Compensation " means, with respect to a
        Participant, the highest of: (1) the Participant's Payment Trigger
        Compensation (if a Payment Trigger has occurred with respect to the
        Participant); (2) the Participant's Compensation for the calendar
        year immediately preceding the calendar year in which the Participant's
        Retirement occurs; or (3) the Participant's average annual
        Compensation for the three calendar years preceding the calendar year in
        which the Participant's Retirement occurs.

        (aa) "Spouse " means the person (if any) to whom the
        Participant is legally married at the time of the Participant's death.

        (bb) "Thrift Plan " means the Thrift Plan for Employees of
        Systematics Information Services, Inc. and Participating Affiliates or
        any successor thereto, as amended from time to time, the CP National
        Incentive Thrift Savings Plan or any successor thereto, as amended from
        time to time, the Computer Power, Inc. Retirement Savings Plan or any
        successor thereto, as amended from time to time, and/or the Houston Wire
        & Cable Company Combination Profit Sharing and Salary Deferral Plan
        or any successor thereto, as amended from time to time.

        (cc) "Vesting Year of Service " means, with respect to a
        Participant, (1) for periods prior to January 1, 1989, each
        "Vesting Year of Service" with which he was credited on
        December 31, 1988, if any, under the ALLTEL Corporation
        Pension Plan (January 1, 1985 Restatement), as in effect on
        December 31, 1988, and (2) for periods after December 31,
        1988, each calendar year in which the Participant completes at least
        1,000 hours of service with an employer that is a member of the
        Controlled Group (including only hours of service completed while the
        employer was a member of the Controlled Group). For the purpose of this
        definition, hours of service shall be determined in accordance with
        Department of Labor Regulations Sections 2530.200b-2(a) and
        2530.200b-3(e)(1)(iv) as in effect on January 1, 1994.
        Notwithstanding the foregoing, there shall be added to Kevin L. Beebe's
        Vesting Years of Service for purposes of the Plan fourteen
        (14) years. Notwithstanding the foregoing, there shall be added to
        Jeffery R. Gardner's Vesting Years of Service for purposes of the Plan
        thirteen (13) years

      

    

  

Section 2.02.  Construction and Governing Law .

  
    
      
        (a) The Plan shall be construed, enforced, and administered and the
        validity thereof determined in accordance with the laws of the State of
        Delaware, to the extent that applicable federal law does not apply to
        the Plan.

        (b) Words used herein in the masculine gender shall be construed to
        include the feminine gender where appropriate and the words used herein
        in the singular or plural shall be construed as being in the plural or
        singular where appropriate.

      

    

  

ARTICLE
III

Retirement
and Spousal Death Benefits

Section 3.01.  Eligibility . A Participant whose
Retirement has occurred shall receive a retirement benefit as provided in
Section 3.02. The surviving Spouse of a Participant whose death occurs on
or after the date of the Participant's Retirement shall receive a
post-retirement death benefit as provided in Section 3.02. The surviving
Spouse of a Participant whose death occurs while he is an employee of the
Controlled Group shall receive a pre-retirement death benefit as provided in
Section 3.03.

Section 3.02.  Amount of Retirement Benefit .
The amount of annual retirement benefit payable to a Participant who is eligible
therefor shall be equal to: (1) the product of the Participant's Benefit
Percentage and the Participant's SERP Compensation; less (2) any Offset
Defined Contribution Amounts, and (if already paid or when currently payable)
any Offset Defined Benefit Amounts. The amount of annual post-retirement death
benefit payable to the surviving Spouse (if any) of a Participant described in
the immediately preceding sentence shall be an amount equal to fifty percent
(50%) of the annual retirement benefit the Participant was entitled to receive
immediately prior to his death.

Section 3.03.  Amount of Pre-Retirement Spouse Death
Benefit . The pre-retirement death benefit payable under this
Section 3.03 to a surviving Spouse who is eligible therefor shall be
determined as follows: The annual death benefit payable to the surviving Spouse
shall be equal to fifty percent (50%) of the annual retirement benefit the
Participant would have received if his employment with the Controlled Group had
terminated on the day immediately preceding the date of his death, except that
if the Participant's Early Retirement Date or Normal Retirement Date has not
occurred prior to his death, the first day of the calendar month in which the
Participant's death occurs shall be considered the Participant's Early
Retirement Date (for purposes only of computing the benefit under this
Section 3.03).

Section 3.04.  Form and Timing of Payment .
The form of payment of the applicable benefit as determined under this
Article III shall be a monthly amount equal to one-twelfth (1/12th) of the
annual benefit amount, payable monthly as of the first day of each calendar
month for the life only of the retired Participant or Spouse, as applicable.
Payment of a Participant's retirement benefit under the Plan shall commence as
of the first day of the calendar month next following the calendar month in
which the Participant's Retirement occurs, and the last monthly payment of the
retirement benefit shall be for the calendar month in which the retired
Participant's death occurs. Any Spouse death benefit under the Plan shall
commence as of the first day of the calendar month next following the calendar
month in which the Participant's death occurs, and the last monthly payment of
the Spouse death benefit shall be for the calendar month in which the Spouse's
death occurs.

Section 3.05.  Health and Dental Benefits .

(a) The Company shall provide to a retired Participant who receives a
retirement benefit under Section 3.02, a spouse to whom the retired
Participant is legally married, and the retired Participant's eligible
dependents, and/or to a Spouse of a Participant who receives a post-retirement
death benefit under Section 3.02 or a pre-retirement death benefit under
Section 3.03, health and dental benefits equivalent to the health and
dental benefits provided to active employees of the Company, spouses of active
employees of the Company, and their eligible dependents under the health and
dental plans of the Company (or in the event the Company does not maintain such
a plan or plans, another comparable plan or plans of the Controlled Group), as
in effect from time to time, and under any additional and/or supplemental plans
provided to executives of the Company and their spouses and eligible dependents
(or in the event the Company does not maintain such a plan or plans, another
comparable plan or plans of the Controlled Group), as in effect from time to
time (the "equivalent coverage"). Notwithstanding the foregoing,
subject to any applicable legal requirements, the equivalent coverage may
coordinate with any government provided coverage (with the government provided
coverage as primary) to the extent that the government provided coverage is
provided to the recipient without any requirement that the recipient pay any
premium or make any contribution as a condition of receiving the government
provided coverage and to the extent that the equivalent coverage (with
coordination) and the government provided coverage provide coverage at least
equal to the equivalent coverage (without coordination). Eligible dependents
shall be those dependents of the retired Participant or Spouse, as applicable,
that meet the requirements of the applicable coverage to be eligible for
dependent coverage. The equivalent coverage shall be provided by the Company for
the lifetime of the retired Participant or Spouse, as applicable, and without
regard to any acceleration of payment of benefits under Section 5.05. The
equivalent coverage shall be provided by the Company without any requirement for
the recipient thereof to pay any premium or contribution as a condition of
receiving the coverage. The Company shall provide the equivalent coverage
through its established plans in effect from time to time or through any other
means, at the Company's option. The Participant, spouse, Spouse, and/or
dependents shall provide reasonable cooperation to the Company in obtaining any
insurance for the equivalent coverage that the Company desires to purchase.

(b) If taxes are imposed on the retired Participant, spouse, Spouse, or
dependents with respect to the equivalent coverage and/or benefits received
under the equivalent coverage that are greater than the amount of taxes (if any)
that would be imposed with respect to the equivalent coverage and/or benefits
received under the equivalent coverage if it were received by an active employee
(and/or spouses and dependents) of the Controlled Group through a generally
applicable plan or plans, the Company shall make additional cash payments to the
retired Participant, spouse, Spouse, and/or dependents (a "Gross-Up
Payment") in an amount equal to the additional taxes imposed on the retired
Participant, spouse, Spouse and/or dependents and an amount sufficient to pay
the cumulative taxes (including any interest and penalties imposed with respect
to such taxes) relating to the Gross-Up Payment so that the equivalent coverage
and/or benefits received under the equivalent coverage received by the retired
Participant, spouse, Spouse and/or dependents pursuant to this Section 3.05
after reduction for taxes is an amount equal to the equivalent coverage and/or
benefits if it were received by an active employee (and/or spouses and
dependents) of the Controlled Group through a generally applicable plan or plans
after reduction for taxes (if any). Notwithstanding the foregoing or the other
provisions of this Section 3.05, to the extent that the Gross-Up Payment
recipient would be entitled to a tax gross-up payment from the Company with
respect to the equivalent coverage and/or benefits and/or Gross-Up Payment
provided under this Section 3.05 under any other agreement, the Gross-Up
Payment provisions of this Section 3.05 shall not apply.

(c) Subject to the provisions of paragraph (d) of this
Section 3.05, all determinations required to be made under this Section
3.05, including whether and when a Gross-Up Payment is required and the amount
of such Gross-Up Payment and the assumptions to be utilized in arriving at the
determination, shall be made by a nationally recognized certified public
accounting firm designated by the Gross-Up Payment recipient (the
"Accounting Firm") which shall provide detailed supporting
calculations both to the Company and the Gross-Up Payment recipient within 30
days after the receipt of notice from the Gross-Up Payment recipient, or such
earlier time as is requested by the Company. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined in accordance with this Section 3.05, shall be paid by the
Company to the Gross-Up Payment recipient within five days after the receipt of
the Accounting Firm's determination. If the Accounting Firm determines that no
amount is payable by the Company to the Gross-Up Payment recipient, it shall so
indicate to the Gross-Up Payment recipient in writing. Any determination by the
Accounting Firm shall be binding upon the Company and the Gross-Up Payment
recipient. As a result of uncertainty in the application of the Code at the time
of the initial determination by the Accounting Firm, it is possible that
Gross-Up Payments that the Company should have made will not have been made (an
"Underpayment"), consistent with the calculations required to be made
hereunder. In the event the Company exhausts its remedies in accordance with
paragraph (d) of this Section 3.05 and the Gross-Up Payment recipient
thereafter is required to make a payment of any tax in respect of the claim, the
Accounting Firm shall determine the amount of Underpayment that has occurred and
the Underpayment shall be promptly paid by the Company to or for the benefit of
the Gross-Up Payment recipient.

(d) The Gross-Up Payment recipient shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require a
Gross-Up Payment (that has not already been paid by the Company). The
notification shall be given as soon as practicable but no later than ten
business days after the Gross-Up Payment recipient is informed in writing of the
claim and shall apprise the Company of the nature of the claim and the date on
which the claim is requested to be paid. The Gross-Up Payment recipient shall
not pay the claim prior to the expiration of the 30-day period following the
date on which the Gross-Up Payment recipient gives notice to the Company or any
shorter period ending on the date that any payment of taxes with respect to the
claim is due. If the Company notifies the Gross-Up Payment recipient in writing
prior to the expiration of the 30-day period that it desires to contest the
claim, the Gross-Up Payment recipient shall:

  
    (i) give the Company any information reasonably requested by the Company
    relating to the claim;

    (ii) take any action in connection with contesting the claim as the
    Company shall reasonably request in writing from time to time, including,
    without limitation, accepting legal representation with respect to the claim
    by an attorney reasonably selected by the Company;

    (iii) cooperate with the Company in good faith in order effectively to
    contest the claim; and

    (iv) permit the Company to participate in any proceedings relating to the
    claim.

  

The Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with the contest and
shall indemnify and hold the Gross-Up Payment recipient harmless, on an
after-tax basis, for any tax (including interest and penalties with respect
thereto) imposed as a result of the representation and payment of costs and
expenses. Without limitation of the foregoing provisions of this
Section 3.05, the Company shall control all proceedings taken in connection
with the contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings, and conferences with the taxing
authority in respect of the claim and may, at its sole option either direct the
Gross-Up Payment recipient to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Gross-Up Payment recipient
agrees to prosecute the contest to a determination before any administrative
tribunal, in a court of initial jurisdiction, and in one or more appellate
courts, as the Company shall determine. If the Company directs the Gross-Up
Payment recipient to pay the claim and sue for a refund, the Company shall
advance the amount of the payment to the Gross-Up Payment recipient, on an
interest-free basis, and shall indemnify and hold the Gross-Up Payment recipient
harmless, on an after-tax basis from any tax (including interest or penalties
with respect thereto) imposed with respect to the advance or with respect to any
imputed income with respect to the advance; and any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Gross-Up
Payment recipient with respect to which the contested amount is claimed to be
due shall be limited solely to the contested amount. The Company's control of
the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Gross-Up Payment recipient shall be entitled
to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

(e) If, after the receipt by the Gross-Up Payment recipient of an amount
advanced by the Company pursuant to paragraph (d) of this
Section 3.05, the Gross-Up Payment recipient becomes entitled to receive
any refund with respect to the claim, the Gross-Up Payment recipient shall,
subject to the Company's compliance with the provisions of paragraph (d) of
this Section 3.05, promptly pay to the Company the amount of the refund
(together with any interest paid or credited thereon after taxes applicable
thereto). If, after the receipt by the Gross-Up Payment recipient of an amount
advanced by the Company pursuant to paragraph (d) of this
Section 3.05, a determination is made that the Gross-Up Payment recipient
shall not be entitled to any refund with respect to the claim and the Company
does not notify the Gross-Up Payment recipient in writing of its intent to
contest the denial of refund prior to the expiration of 30 days after the
determination, then the advance shall be forgiven and shall not be required to
be repaid and the amount of the advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.

ARTICLE IV

Administration

Section 4.01.  Plan Administrator . The Plan
Administrator shall be the Company, except that, any discretionary determination
provided for in the Plan with respect to the timing, amount, or form of a
Participant's benefit under the Plan shall be made by the Compensation Committee
of the Board. The Plan Administrator may retain auditors, accountants, legal
counsel and actuarial counsel selected by it. Any person authorized to act on
behalf of the Plan Administrator may act in any such capacity, and any such
auditors, accountants, legal counsel and actuarial counsel may be persons acting
in a similar capacity for one or more members of the Controlled Group and may be
employees of one or more members of the Controlled Group. The opinion of any
such auditor, accountant, legal counsel or actuarial counsel shall be full and
complete authority and protection in respect to any action taken, suffered or
omitted by any person authorized to act on behalf of the Plan Administrator in
good faith and in accordance with such opinion. Notwithstanding the foregoing,
no person shall vote or take action on a matter solely with respect to his own
Plan benefit.

Section 4.02.  Expenses . The Company
shall pay all expenses incurred in the administration of the Plan.

Section 4.03.  Records . The Company
shall keep such records as shall be proper, necessary or desirable to effectuate
the purposes of the Plan, including, without in any manner limiting the
generality of the foregoing, records and information with respect to the
benefits granted to Participants, dates of employment and determinations made
hereunder.

Section 4.04.  Legal Incompetency . The
Plan Administrator may, in its discretion, make or cause to be made payment
either directly to an incompetent or disabled person, or to the guardian of such
person, or to the person having custody of such person, without further
liability on the part of the Company, any member of the Controlled Group, the
Plan Administrator, or any person, for the amounts of such payment to the person
on whose account such payment is made.

Section 4.05.  Claims Procedure . The
claims procedures provisions of the ALLTEL Corporation Pension Plan
(January 1, 1994 restatement), as in effect on the date of this restatement
of the Plan, are incorporated herein by reference and shall apply to benefits
under Article III of the Plan.

ARTICLE V

Miscellaneous

Section 5.01.  Amendments . The Board from
time to time may amend, suspend, or terminate, in whole or in part, any or all
of the provisions of the Plan, effective as of any date specified in the action
by the Board, except that no such action, other than an action that increases
benefits provided by the Plan, taken by the Board on or after the date a Change
in Control or Payment Trigger has occurred with respect to a Participant or on
or after the date on which a Participant's Early Retirement Date, Normal
Retirement Date, or death, as applicable, has occurred shall be effective with
respect to the Participant (or the Participant's Spouse, spouse, dependents or
other person claiming through the Participant or Spouse), unless the
Participant, spouse, or Spouse consents in writing thereto. Any action of the
Board amending, suspending, or terminating the Plan shall be set forth in a
written resolution of the Board. The Plan Administrator shall furnish a copy of
the written resolution to each Participant affected thereby or person claiming
benefits under the Plan through a Participant affected thereby as soon as
practicable after the adoption of the resolution.

Section 5.02.  No Employment Rights .
Neither the establishment or maintenance of the Plan nor the status of an
employee as a Participant shall give any Participant any right to be retained in
the employ of any member of the Controlled Group; and no Participant and no
person claiming under or through such Participant shall have any right or
interest in any benefit under the Plan unless and until the terms, conditions
and provisions of the Plan affecting such Participant shall have been satisfied.

Section 5.03.  Nonalienation .  The
right of any Participant or any person claiming under or through such
Participant to any benefit or any payment hereunder shall not be subject in any
manner to attachment or other legal process for the debts of such Participant or
person; and the same shall not be subject to anticipation, alienation, sale,
transfer, assignment or encumbrance.

Section 5.04.  Limitation of Liability .  No
member of the Board and no officer or employee of any member of the Controlled
Group shall be liable to any person for any action taken or omitted in
connection with this Plan, nor shall any member of the Controlled Group be
liable to any person for any such action or omission. No person shall, because
of the Plan, acquire any right to an accounting or to examine the books or the
affairs of any member of a Controlled Group. Nothing in the Plan shall be
construed to create any trust or fiduciary relationship between any member of
the Controlled Group and any Participant or any other person.

Section 5.05.  Acceleration of Payment .
The Compensation Committee of the Board in its sole discretion may accelerate
the payment of any benefit under the Plan to the extent that it deems it
equitable or desirable under the circumstances with respect to: (1) a
Participant who is still an employee of the Controlled Group and who would meet
the requirements to receive a benefit under the Plan if the Participant's
employment with the Controlled Group were then involuntarily terminated other
than by the Participant's death (i.e., the Participant's Retirement would occur
by reason of the employment termination either because the Participant has met
the age and service requirements for Retirement or because the termination of
employment would be a Payment Trigger); and (2) a Participant who is not an
employee of the Controlled Group and who has met the requirements to receive a
benefit under the Plan (i.e., the Participant's Retirement has occurred); and
(3) a Participant whose death occurred while the Participant was an employee of
the Controlled Group. If payment of a married Participant's retirement benefit
is accelerated, payment of the post-retirement death benefit to the
Participant's spouse shall also be accelerated, payment of which shall be made
to the Participant rather than the Participant's spouse. Any accelerated payment
of a benefit (or portion of a benefit) under the Plan shall be in a single sum
payment that is the Actuarial Equivalent of the benefit (or portion of a
benefit) the payment of which is being accelerated. Any action of the
Compensation Committee accelerating the payment of a benefit under this Section
5.05 may not be changed unless the Participant, or the Participant's Spouse if
the Participant has died, consents in writing thereto. Notwithstanding any other
provision of the Plan to the contrary, if payment of a spouse death benefit is
accelerated, no other death benefit shall be payable under the Plan with respect
to any spouse of the Participant.

Section 5.06.  Representative of Board;
Compensation Committee .  The Board may from time to time
designate an individual or committee to carry out any duties or responsibilities
of the Board hereunder (not including any duty or responsibility specifically
charged to the Compensation Committee of the Board hereunder). If at any time
there is no Compensation Committee of the Board, the Board shall have any duty
or responsibility charged specifically to the Compensation Committee of the
Board hereunder.

 

Section 5.07.  Other Benefits . Nothing in
this Plan shall be construed to affect an employee's right to participate in any
benefit plan, qualified or unqualified, of the Controlled Group, according to
the terms of that plan.

Section 5.08.  Reemployment of a Participant .
In the event of the reemployment as an employee in any capacity by the Company
or a member of the Controlled Group of a Participant whose employment covered
under the Plan has terminated, payment of his benefits under the Plan shall be
suspended during his period of reemployment to the same extent as payment of his
benefits under the Pension Plan are suspended. The Participant shall accrue
additional benefits under the Plan with respect to his reemployment period only
if he again becomes a Participant as provided in Section 2.01.

IN WITNESS WHEREOF, ALLTEL CORPORATION has caused this First Restatement to
be executed as of this 14th day of May, 2001.

                                                                                         

                                                                                                 

                                                                                                 

		ALLTEL CORPORATION

    
		By     /s/Scott T.
Ford                                                           

		
Name:        Scott T.
Ford                                                     

    
		
Title:          President &
COO

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