Document:

mar0705_ex1028

Exhibit 10.28

  Vodafone

9 November 2004

Strictly Personal – Addressee Only

John Townsend

Dear John

Following our discussions, I am pleased to confirm
    the terms of employment, which will apply to your proposed International
    Assignment to Verizon Wireless (known as Host Company) in the USA (known
    as Host Country). This offer should be read in conjunction with the Group
    International Assignment Policy (IAP) (as amended from time to time) which
    you should familiarise yourself with. Unless otherwise stated, all defined
    terms in this letter are defined in the IAP. Where there is a material difference
    between the terms of this letter and the IAP, as opposed to any omissions, then
  the terms of this letter shall prevail.

For the avoidance of doubt, your Primary Employment
    is with your Home Company as defined in the IAP. Nothing in this letter or
    the IAP will create a relationship of employment between you and the Host
  Company.

Except as provided below, your terms and conditions
    of employment as set out in your Primary Employment Contract (as amended
    from time to time) will remain in force. Where there is a material difference
    between the terms of this letter and your Employment Contract whilst you are
    on assignment, as opposed to any omissions, then the terms of this letter
  shall prevail.

During the assignment the following terms will apply:

A THE
  ASSIGNMENT

Position
  and Duties

Your position during the assignment will be Chief
      Financial Officer reporting to Denny Strigl, President and CEO. Your duties
      will be as described by Denny. The Host Company reserves the right to assign to you other
  duties as  required by the needs of the business.

Status

The basis of the assignment will be Accompanied status

 

  Vodafone Group Services Limited

  Group
  Financial Director

  Vodafone House, The Connection,
  Newbury, Berkshire RG14 2FN, England

  Registered off: Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England. Register in England No. 3802001

Period of Assignment

Subject to the further terms of this letter and your Primary Employment Contract, the period of assignment in the host country will be for 24 months with effect from 1 January 2005. Should it be mutually agreed, the
  Assignment may be extended at which time the terms and conditions of the Assignment will be reviewed.

Hours of Work

Your working hours will be in accordance with Host Company practice and the operational needs of your role.

Immigration Approval

This Assignment offer is made subject to all the necessary permits/visas required for living and working in the Host Country being granted and the Assignment cannot commence before this authority is given. You may use
  Cendant Relocation (see attached contact sheet) to assist with the application process with all the associated costs paid for by the Receiving Company.

Pre Assignment Visit

You may make a 5 day visit to the Host Country to become familiar with the role and location. Further details are set out in the IAP.

Travel to Host Country

The Host Company will fund air travel for you and your family in accordance with your Home Company travel policy at the start of your Assignment. Further details are set out in the IAP.

B HOME BASE BENEFITS

Base Salary

During your assignment, you will receive your Assignment Salary in accordance with Section C below. Your Home Base Salary (although not payable whilst you are on Assignment) will be the starting point for the calculation of your Assignment Salary.   

The Benefits outlined below will continue in accordance with your Primary Employment Contract.

Pension

Your membership of your Home Company pension scheme will continue with contributions calculated using your Home Base Salary.

Insurance

Your membership of your Home Company life/ill health/disability insurance schemes will continue with contributions/benefits calculated using your Home Base Salary. 

  Cash Incentives/Bonuses

Your
    membership of your Home Company bonus/incentive will continue with payments as before.
    However your targets/criteria will be amended to those of the Host Company
    and payments will be in accordance with the IAP. 

Share/Stock Plans 

Your participation in your current Home Company plans will continue except where plan rules or the applicable legislation prevents this. The level of your participation will be determined in accordance with Home Company
practice.

Over the period of the Assignment, your collective
    tax and social security liabilities in relation to income arising from these
  schemes will be no greater than had you remained in your Home Country and these liabilities will arise no earlier than they would have done in your Home Country. All calculations will be provided by PricewaterhouseCoopers LLP (PwC), the Group's advisors on overseas personal tax matters.

It is your responsibility to notify PwC at least 5 working days in advance of any potential events relating to these share plans over which you have discretion (e.g. exercise of a share option).  This should allow sufficient time for any potential complications to be considered.

Holiday
  Entitlement

Your holiday entitlement under your Primary Employment
      Contract will continue but with actual days to be taken to be approved locally.
  You will observe Host Country Statutory Holidays while on assignment.

C ASSIGNMENT
  BENEFITS

Assignment Salary

Whilst on assignment, your net Assignment Salary
            will be GBP 184,613 per annum. This will continue to be paid by the Home Company
  in the usual way.

Full details of your Assignment Salary together
    with how it is calculated are contained in the Assignment Salary Build-Up
  Sheet attached.

Your Assignment Salary is calculated using a build-up
                approach based on your Home Net Base Salary that will provide
    an incentive to reward you for working internationally. It also takes account
    of any tax, social security and cost of living differentials between the
    Home and Company location. Deductions may be made to your Home Base Salary
    (which you hereby authorise) in order to deliver the actual amount of the
    Assignment Salary payable. An Additional Responsibility Allowance is also
  provided due to the level of your Assignment role.

Company Car Allowance

Your Car Allowance under your Primary Employment
                    Contract will continue during the Assignment and you will be responsible for
  funding your transport needs in the Host Country.

Home Leave

Every 6 months a return economy class air flight
                        from the Host Country will be provided for you and your Accompanying Family
  to return to your Home Country.

Medical Issues

Examinations and Vaccinations   

Prior to your Assignment you and your Accompanying
                              Family are required to obtain medical certification confirming fitness to travel
                              to, reside and work in the Host Country. Your Assignment is conditional upon
                              you obtaining  such medical certification. You must also ensure that all the
  recommended vaccinations have taken place before travelling. The fees for the medical consultations and vaccinations will be paid for initially by the Home Company.

Relocation Support

Lump Sum Payment

A one-off payment equal to half of one month’s
                                    annual Home Base Salary will be paid to assignees net of all taxes, subject
    to a maximum payment of €10,000 equivalent net on commencing the Assignment. 

Relocation Assistant 

You will be provided with pre-departure and on-arrival support by Cendant Relocation (see contact sheet attached).

Shipment of Personal Possessions

You may transport up to 14 cubic meters of personal
    belongings (not furniture) via an approved shipping agent. You will be responsible
  for any customs duties incurred on the import of personal belongings.

Excess Baggage

You will be provided with additional excess baggage
    of 50 kg per person in addition to the normal allowance at the beginning
  and end of the Assignment. 

Accommodation

Temporary Accommodation on Arrival in Host Country

If leased accommodation is not yet available you
          will be provided with up to 4 weeks hotel or serviced apartment accommodation.
          During this time reasonable out of pocket expenses will be reimbursed
  against receipts.

Housing

Host Company funded leased accommodation will be
  provided up to a monthly cost of USD 5000.

Utilities

Reasonable cost for utilities (gas, electricity
  and water) will be paid for or reimbursed by the Host Company.

Mobile Telephones

All business calls and up to 2 hours per week of
                      personal call charges will be paid for. An additional
    mobile phone will be provided for you and your partner for business related
  calls whilst on the Assignment.

Furnishings/Furniture Allowance

Accommodation should normally be fully furnished
                          but where this is not possible furniture may be leased
  within an agreed budget and will remain the property of the Host Company.

Education Support

Cross Cultural Training

Cross-cultural training will be provided to assist
                                you and your Accompanying Family to settle quickly
  into the Host Country business and lifestyle.

Partner Assistance

Financial assistance of up to 5% of the annual Home
                                    Base Salary will be provided for educational
  courses/job search subject to advance approval.

Insurance

Medical

The International Assignee Healthcare Plan will
    provide medical and dental cover for you and your Accompanying Family, subject to initial pre-Assignment medical clearance being obtained and Personal Data Sheet being completed. 

Personal Effects

Cover for items up to a cost of €5000 per item
    will be provided when belongings are in transit either to the Host Country
  at the start or back to the  Home Country at the end of the Assignment only.

Social
  Security

Wherever possible you will remain within your Home
      Country social security system and an application will be made to continue
  these deductions during the Assignment.

Taxation

You will receive a net income derived from your Home
  Base Salary as set out in the attached build up sheet

The Company will assume the obligation to pay the
            actual Host Country tax liabilities arising in respect of company
    source income.  Any calculations will be performed
    by the Group’s
            advisor on personal tax matters to ensure that you receive the net salary shown
  in the Salary Build-up Sheet, which is attached.

PricewaterhouseCoopers LLP (PwC), the Group’s
              advisors on personal tax matters (see contact sheet attached) will provide
              assistance with both Home and Host Country tax filing obligations. You must
  attend a  pre-assignment briefing with these advisors.

The benefits provided to you in Section C of this
                letter as a result of your status as an employee on assignment will continue
                only for so long as you remain on assignment from Home Company to Host Company
                and will cease  with immediate effect on the termination of your assignment
  for whatever reason.

Further details of the benefits provided to you
    in section C of this letter are set out in the IAP and are subject to the
    rules and provisions of that particular policy and any related contract or
  policies of insurance in force from time to time.

D TERMINATION
  OF ASSIGNMENT

Early Termination by the Company

The Host Company reserves the right to terminate
                        the assignment and return you to your Home Country at
    any time during the period of the Assignment, giving at least one month’s
    notice, if   

	The
                              work cannot be continued in the Host Country due to
      changes in local business needs or market conditions.
	You
                                fail to perform your Assignment role satisfactorily and
      fail to achieve your agreed objectives.
	You
          are unable to work due to an illness that is expected to continue
      for longer than 3 months.

The Assignment will terminate immediately if
        your employment with the Home Company ceases at any time for whatever
  reason or the Host Country Authorities cancel work permit/visa clearance.

Early Termination by the Employee

If you wish to terminate the Assignment itself and
                                    return to your Home Country, you are required to
          confirm this in writing to Home Company stating your reasons. The period
  of notice in your Primary Employment Contract will normally apply.

If you wish to resign from the Home Company during
                                      the Assignment you are required to provide
    written notice to Home Company in accordance with your Primary Employment
    Contract. You may be required to reimburse a proportion of the costs incurred
    during this Assignment, as stated in the IAP. The Home Country shall be entitled
            to make a deduction from salary or any other sums owing to you in
    relation to the reimbursement. 

Your Returning Role 

Or completion of the Assignment you will return to your Home Country in the Originating Business Unit, unless otherwise agreed, with continuity of employment in all aspects. Your actual role will be agreed with your Home
Company with as much advance notice as possible.

Return to Home Country

The Host Company will fund air travel for you and
    your family in accordance with your home company travel policy at the end
  of your Assignment

  Relocation Support on Return

Cendant Relocation will provide support in the following areas if applicable

	Temporary
      Accommodation
	Shipment and storage
        of personal possessions 

Tax Assistance

You are required to attend a post-assignment briefing with PwC, the Company’s advisors on personal tax matters.

E GOVERNING LAW

These terms and conditions and other contractual documents to which they relate shall be governed by and take effect in all aspects according to the law of your Home Country

A duplicate copy of this letter is enclosed. Would
    you please sign this letter and return it to me to confirm your acceptance
    of the Assignment. I will then discuss the various details with you in due
  course.

Yours Sincerely

  Ken Hydon

Group Financial Director

I hereby accept the terms and conditions of this
    Assignment to Verizon Wireless in USA as described above together with the
  provisions of the IAP.

Signed: /s/ John Townsend

Dated: 11/09/2004

Enclosures:  Salary Build-up Sheet

                   International
Assignment Policy (IAP)

                   Contact Sheetmar0705_ex1029

 

 Exhibit 10.29

  

 

VERIZON EXECUTIVE DEFERRAL
  PLAN

  SUMMARY PLAN
DESCRIPTION 

	
VERIZON EXECUTIVE DEFERRAL PLAN
	
	

	
	 
	
TABLE OF CONTENTS
	
	
INTRODUCTION
		 
		
1
	
	 	 	 
	
PLAN HIGHLIGHTS
		 
		
2
	
	 	 	 
	
PARTICIPATING IN THE PLAN
		 
		
4
	
	
           Active Participation
		 
		
4
	
	
           Inactive Participation
		 
		
4
	
	 	 	 
	
YOUR ACCOUNT BALANCE
		 
		
5
	
	
           Your Beginning Balance
		 
		
5
	
	
           Adding to Your Balance
		 
		
5
	
	
           Investing Your Account
		 
		
8
	
	 	 	 
	
PAYMENTS FROM THE PLAN
		 
		
10
	
	
           Making an Election
		 
		
10
	
	
           Default Form and Timing of Payments
		 
		
11
	
	
           Timing of Payments
		 
		
11
	
	
           Form of Payments
		 
		
11
	
	
           Special Rules
		 
		
11
	
	 	 	 
	
VESTING AND OTHER ISSUES
		 
		
13
	
	
           Vesting
		 
		
13
	
	
           Forfeiture
		 
		
13
	
	 	 	 
	
MISCELLANEOUS MATTERS
		 
		
14
	
	
           Plan Administration
		 
		
14
	
	
           Amendment and Termination
		 
		
14
	
	
           Effect on Other Benefit Plans
		 
		
14
	
	
           Hypothetical Nature of Plan Accounts and Investments
		 
		
14
	
	
           Plan Assets Not Held in Trust
		 
		
15
	
	
           Assignment and Alienation
		 
		
15
	
	
           Withholding and Other Tax Consequences
		 
		
15
	
	
           Continued Employment
		 
		
15
	

	

	
JANUARY 1, 2005
		 
		
TABLE OF CONTENTS
	

  INTRODUCTION

The new Verizon Executive Deferral Plan (the “Plan” or “EDP”) provides an easy way for you to set aside a portion of your annual base salary, your entire short-term incentive award and certain long-term
incentive awards for the future in order to avoid current Federal, State and Local income taxes (where applicable) and to receive valuable contributions from the Company. It reaches beyond the limits of a traditional 401(k) to provide exceptional
value. For non-employee directors, it allows for the deferral of your annual cash retainer and associated meeting fees and equity compensation. 

	
The EDP allows you to defer a portion of your annual base salary, all of your short-term incentive award or non-employee director’s annual retainer and associated meeting fees and
certain long-term incentive awards that otherwise provide for deferral into the Plan; and

	
The EDP also allows you to receive the full company matching contribution on the amounts you defer up to 6% of your compensation, without any limitations imposed by the Internal
Revenue Code (non-employee members of the board of directors are not eligible for any company matching contributions). The deferral of any long-term incentive awards will not eligible
for company matching contributions.

Because the EDP is an account-based plan, your benefit will equal the balance in a hypothetical account kept for you under the Plan. You can invest your EDP account in a broad variety of investment options and your account
balance will increase or decrease depending on the performance of the investments you choose. Therefore, you should exercise care when making your investment choices. 

The savings opportunities of the EDP mean you can set aside significantly more money for your future than you could if you could make deferrals only under the management savings plan. Verizon expects these advantages to
serve you well as you strive to meet your future financial goals. 

You should be aware that the Plan is a new plan that succeeds the Verizon Income Deferral Plan (the “IDP”) and the Verizon Deferred Compensation Plan for Non-Employee Directors (the “Directors’
Plan”), which were frozen as of December 31, 2004. If you were a participant in the IDP or the Directors’ Plan, vested amounts in your account in those plans as of December 31, 2004, remain in those plans and subject to the rules that
govern those plans. However, in order to comply with changes in the law that were effective January 1, 2005, amounts in your IDP account that were not vested as of December 31, 2004, have been transferred to the EDP and are now subject to the rules
that govern EDP accounts generally. 

This booklet is intended to summarize the terms of the Executive Deferral Plan, effective January 1, 2005. To the extent this summary conflicts with the terms of the Plan, the terms of the Plan will control. If you would
like to review the terms of the Plan or if you have any questions about your Plan benefits, please contact the Total Rewards department at 1-888-560-3669.

	

	 JANUARY 1, 2005 	  	 PAGE 1

PLAN HIGHLIGHTS 

	

	Nature of Plan and Benefit	 Your Plan benefit is expressed
        in terms of an account balance and will equal the value of that account
        balance when you receive payments from the Plan. The value of your account
        balance will increase or decrease based upon your investment elections.
    The Plan is an unfunded, nonqualified benefit plan. 
	

	Deferrals for Active

    Participants		 You can defer up to 100% of the portion
          of your base salary that exceeds a limit included in the
          Internal Revenue Code ($210,000 in 2005) (your “Eligible Base
          Salary”).

            

      
	 You can defer up to 100% of your short-term
          incentive award or directors’ cash retainer and associated
          meeting fees.

            

      
	 You may also be able to defer up to 100%
          of your long-term incentive award or annual equity grant
          to the extent otherwise permitted pursuant to the terms of the award.

            

      
	 Generally, deferral elections for Eligible
          Base Salary or directors’ fees for a year must be submitted
          during an enrollment period in November or December of the preceding
          year and cannot be changed after December
          31st of
          that preceding year. For example, if you make an election
          in December 2004 to defer a percentage of your 2005 base salary, you
          cannot change that election after
          December 31, 2004, and it will remain in effect for all of 2005.

    

  
	 Generally, deferral elections for performance
          based short-term and long-term incentive awards must
          be made during an enrollment period in May or June of the year in which
          the award is earned and cannot be
          changed after June 30th of
          that year. For example, if you make an election
          in June 2005 to defer a percentage of your short-term incentive award
          earned in 2005 (and payable in 2006),
          you cannot change that election after June 30, 2005, and it will remain in
          effect for all of 2005.

    

  
	 If you are promoted or hired into an eligible
          position, you will be provided a 30-day window in
          which to submit your salary and/or incentive deferral elections, if
          appropriate. A similar rule applies
          to newly-appointed non-employee members of the board of directors.

	 	 
	 Company

    Contributions 
		The Company will add a “matching
        contribution credit” to your account equal to- 

        

        	if you defer at least 6% of the sum of your
                Eligible Base Salary and short-term incentive under the Plan, 5% of
                the sum of your Eligible Base Salary and short-term incentive; or 

                    

            
	if you defer less than 6% of the sum of your
              Eligible Base Salary and short-term incentive under the Plan, 100%
              of the first 4% and 50% of the next 2% of the sum of the Eligible Base
              Salary and short-term incentive that you defer. 

                    

            
	non-employee members of the board of directors
              are not eligible for any company matching contribution credits. 

                    

            
	any deferrals of long-term incentive awards
              are not eligible for company matching contribution credits.

      

	

	Account Investments 	 Generally, you can elect to have
        your EDP account treated as if it were invested in any of the investment
        options available under the Verizon Savings Plan for Management Employees.
        You can also elect to have your EDP account treated as if it were invested
        in an account that provides a return that mirrors the yield on certain
    corporate bonds. 
	

 

	

	 JANUARY 1, 2005 	  	 PAGE 2 

 

	

	Distributions from the

      Plan
          of Your Personal

      Deferrals 		 At the time you elect to defer you must
          also elect when and how you would like to have your benefit distributed.
          You may elect one of the following distribution forms: 

        

        	One lump sum payment, or 

              

          
	Annual installments (for between 2 and
              20 years) 

              

          

      
	 Distributions can generally begin at separation
          from service or on a specified date either before or after your separation
          from service. 

        

      
	 If you elect to receive a distribution based
          on a specified date rather than beginning at separation from service,
          the earliest you can receive a distribution with respect to a deferred
          amount is at least 2 years following the year the full deferral has
          been credited to your account. 

        

      
	 If you elect to receive a lump sum or begin
          receiving installments at separation from service, your distribution
          election is irrevocable. 

        

      
	 If you elect to receive a distribution based
          on a specific date, you can change your distribution elections with
          respect to a deferred amount provided that (1) you make the election
          change at least 12 months prior to the original distribution date,
          (2) you delay the date you would have otherwise received your distributions
          by at least 5 years, and (3) you will not receive your distribution
          sooner or over a shorter period of time. You may not switch from annual
          installments to a lump sum distribution. 

	

	 Distributions from the

      Plan
          of Company

      Contributions 	 All Company contributions in your
        EDP account (including amounts transferred to the EDP from the IDP or
        Directors’ Plan) will be distributed in a lump sum payment following
        your separation from service (or six months after your separation from
    service if you are a “key” employee). 
	

	Vesting		Your personal deferrals under the Plan are
          vested immediately.

      

      	 The matching contribution credits vest
            at the same time you vest in the matching contributions under
            the Verizon Savings Plan for Management Employees.

              

        
	 Your matching contribution credits will
            also vest if your employment is involuntarily terminated
            and you sign a release, if you become disabled, if you die, or if
            there is a change in control of
            Verizon.

              

        
	 Any other Company contributions transferred
            to the EDP from another plan (including Retirement
            Contribution Credits transferred from the IDP) will vest according
            to the vesting schedule in place under the other plan at the time of the
            transfer.

	

	

	 JANUARY 1, 2005 	  	 PAGE 3 

PARTICIPATING IN THE PLAN 

You can participate in the Plan on either an “active” or an “inactive” basis. The principal difference between the two is that, as an “active” participant, you can make deferrals into your EDP account
and you are eligible to receive matching contribution credits. As either an “active” or “inactive” participant, you can invest your EDP account in the investment options available under the Plan and make elections that will
determine when you receive distributions of your Plan account. 

ACTIVE PARTICIPATION 

If you were a director level employee or above (“Eligible Participant”) or a non-employee member of the Company’s Board of Directors (the “Board”) on January 1, 2005, you are automatically an active
participant in the Plan on that date. If you are hired or promoted to an Eligible Participant position or became a non-employee member of the Company’s Board of Directors after January 1, 2005, you will automatically be an active participant in
the Plan on the date you become an Eligible 

Participant or a non-employee member of the Board. Once you become an active participant, you will remain an active participant eligible for the Plan provisions applicable to Eligible Participants for as long as you are an
Eligible Participant or a non-employee member of the Board. If you are demoted to position not eligible for participation in the EDP, you will become an inactive participant after your demotion.

INACTIVE PARTICIPATION 

You will become an inactive participant if your employment with the Company ends, if you decide not to defer any part of your Eligible Base Salary, short-term incentive, long-term incentive or director’s fees under the Plan,
if you are demoted below the status of director or any equivalent level, or if you cease to be a non-employee member of the Board. Once you become an inactive participant, you will remain an inactive participant as long as you have a positive
balance in your EDP account or until you again become an active participant. 

 

	

	 JANUARY 1, 2005 	  	 PAGE 4 

YOUR ACCOUNT BALANCE 

YOUR BEGINNING BALANCE 

Depending on the circumstances under which you became an active participant, you might have a beginning balance in your EDP account when you first become eligible for the Plan provisions applicable to active
participants.

If you participated in the Verizon Income Deferral Plan (IDP) or the Verizon Deferred Compensation Plan for Non-Employee Directors (Directors’ Plan) prior to January 1, 2005, any unvested benefit under those plans will be
transferred to the EDP and credited to your EDP account as a beginning balance. (As noted in “Effect on Other Benefit Plans” beginning on page 14, you will no longer be eligible for a benefit under the plan from which the benefit was
transferred with respect to the amounts transferred to the EDP.) Any amounts in your beginning EDP account that were transferred from the IDP will be characterized as “Personal Deferral Credits,” “Matching Contribution Credits,”
or “Retirement Contribution Credits” (as defined below) by the Plan’s administrator depending on the nature of those credits under the plan from which the amounts were transferred. 

Amounts transferred to the Plan might be subject to various restrictions in addition to those described in this summary. The Plan’s administrator will advise you if any such restrictions apply to any part of your EDP account.

ADDING TO YOUR BALANCE 

The balance in your EDP account can increase while you are an active participant through your deferral of salary, short-term incentive, long-term incentives, directors’ fees or annual equity awards into your EDP account and
through Company Matching Contributions that are credited to your EDP account. As previously noted, the value of your account may increase or decrease due to investment performance. 

Your Deferral of Compensation 

Personal Deferral Credits 

The Internal Revenue Code limits the amount of your pay that can be treated as “compensation” under the Company’s “qualified” savings plan and “qualified” pension plan. This limit is $210,000 for
the year 2005. Any base salary you earn over this limit is referred to under the Plan as “Eligible Base Salary.” 

You can elect to defer receipt of all or part of your Eligible Base Salary or your director’s fees into your EDP account. In addition, you may defer all or part of your short-term incentive from the Short-Term Incentive Plan
into your EDP account, provided that you are still an active participant in the Plan when the short-term incentive is payable. You may also be able to defer receipt of certain other forms of compensation (including certain long-term incentive
awards) if permitted by the Plan’s administrator.

	

	 JANUARY 1, 2005 	  	 PAGE 5 

If you elect to defer compensation under the Plan, you waive your right to receive the amount deferred at the time it would otherwise be paid and agree instead to receive the amount deferred under the terms of the Plan. 

Any deferrals of Eligible Base Salary, short-term incentive, long-term incentive or directors’ fees are known under the Plan as “Personal Deferral Credits,” and the balance of your EDP account attributable to
Personal Deferral Credits, including any investment earnings (or minus any investment losses) on these credits, is known as your “Employee Balance.”

Making an Election to Defer Compensation 

If you elect to defer all or part of your Eligible Base Salary, short-term incentive, director’s fee, or other eligible compensation, your election must be made according to any terms and conditions the Plan’s
administrator may impose and is effective as soon as practicable after you deliver it to the Plan’s administrator. 

Eligible Base Salary deferral elections must be submitted during an annual enrollment period specified by the Plan’s administrator. The enrollment period for Eligible Base Salary will be in November or December of the year
prior to when the salary is earned. (For example, elections with respect to 2005 base salary must be made during November or December of 2004.) At the time you elect to defer Eligible Base Salary, you must also make an election on how and when you
would like to receive your benefit.

Your election will apply only to Eligible Base Salary earned after the effective date of the election-you cannot make your election retroactive. Your election will remain
in effect only through the end of the tax year for which the election was made and will not be renewed automatically for the following year. In addition, you can not change or revoke your election after December 31st. (For example, the election you make in November or December of 2004 will remain in effect throughout 2005 unless you change it before December 31, 2004.) Similar rules apply to the deferral of
directors’ fees. 

To defer all or part of your performance based short-term incentive or long-term incentive, you must submit an annual election to the Plan’s administrator during the specified enrollment period, generally in May before the
year in which the award becomes payable. (For example, you will make your deferral election with respect to your 2005 annual bonus (which is payable in 2006) during May 2005.) Performance based short-term and long-term incentive deferrals are
irrevocable after June 30th. Your election will remain in effect only until the end of the year for which the election is made and will not be renewed automatically for the following
year. 

If you are promoted or hired into an eligible position, you will be provided a 30-day window in which to submit your salary and/or incentive deferral elections, if appropriate. If a newly eligible employee does not submit a
deferral election within 30 days of the effective date of hire or promotion, his or her deferral election will be solicited during the next standard 

 

	

	 JANUARY 1, 2005 	  	 PAGE 6 

enrollment period as specified by the Plan’s administrator. 

All personal deferral credits are managed in class years. Compensation deferred as follows constitutes one class year: 

	
One full tax year of Eligible Base Salary or directors’ fees; and

	
One annual short-term or long-term incentive award.

Each class year requires a corresponding distribution election. No deferral election will be valid unless it is accompanied by a distribution election. 

The Company’s Contributions 

Matching Contribution Credits 

If you elect to defer all or part of your Eligible Base Salary and/or short-term incentive, you will receive additional credits in your EDP account when your Personal Deferral Credits are credited to your EDP account. These
credits are known under the Plan as “Matching Contribution Credits,” and the balance of your EDP account attributable to Matching Contribution Credits, including any investment earnings (or minus any investment losses) on these credits, is
known as “Employer Contributions.” Matching Contribution Credits are designed to replicate the Company matching contributions under the Company’s “qualified” savings plan. Non-employee Directors are not eligible for Matching
Contribution Credits.  

For each Plan year, your Matching Contribution Credits will be determined as follows- 

	 If you defer at least 6% of the sum of your Eligible
        Base Salary and short-term incentive into your EDP account, you will receive
        Matching Contribution Credits equal to 5% of the sum of your Eligible Base
    Salary and short-term incentive; or 

    

  
	 If you defer less than 6% of the sum of your
        Eligible Base Salary and short-term incentive into your EDP account, you
    will receive Matching Contribution Credits equal to the sum of- 

    

    	100% of the first 4% of the sum of the Eligible
        Base Salary and short- term incentive that you defer; and 

        

      
	50% of the next 2% of the sum of the Eligible
        Base Salary and short- term incentive that you defer. 

  

However, if you are no longer an active participant in the Plan when your short-term incentive is payable, you generally cannot defer your short-term incentive and, as a result, will not be eligible to receive Matching
Contribution Credits with respect to your short-term incentive.

	

	 JANUARY 1, 2005 	  	 PAGE 7 

 

	EXAMPLE. You
          have $50,000 in Eligible Base Salary and earn a $100,000 short-term
          incentive in 2004. You defer 100% of your Eligible Base Salary and
          75% of your short-term incentive into your EDP account. For the year,
          you will have $132,500 in total contributions to your EDP account,
          calculated as follows: 

       Personal Deferral Credits: $125,000
            (100% of $50,000 plus 75% of $100,000); and 

       Matching Contribution Credits: $7,500
            (Because you have deferred at least 6% of your total Eligible Base
            Salary plus short-term incentive into your EDP account, your Matching
    Contribution Credits equal 5% of $150,000, or $7,500.) 

Retirement Contribution Credits 

Participants who were eligible to receive Retirement Contribution Credits under the IDP with respect to base salary and incentives earned in 2004 will receive those credits under the EDP in the early part of 2005. No Retirement
Contribution Credits will be made with respect to base salary and incentives earned after 2004.

INVESTING YOUR ACCOUNT Investment Options 

You will be able to invest your EDP account as long as you are either an active or an inactive participant in the Plan. The investment options available under the Plan mirror those available under the Verizon Savings Plan for
Management Employees and are subject to any restrictions imposed by the Verizon Savings Plan for 

Management Employees. For example, the restriction in the Verizon Savings Plan for Management Employees that you cannot buy shares under the Company stock fund within seven days after you sell shares in that fund applies under the
Verizon Shares Fund in the EDP as well. In addition, you can invest your EDP account in a “Moody’s” investment fund that provides a return that mirrors the yield on certain long-term, high-grade corporate bonds. 

Allocating Your Account Balance Among the Investment Options 

When you first become a participant in the Plan, your initial EDP account balance (if you have one as discussed under “Your Beginning Balance” on page 5) will be allocated in the same manner these credits were allocated
in the IDP or the Directors’ Plan. Thereafter, you may elect (or change an existing election) at any time to allocate all or any part of your existing or new Personal Deferral Credits to any of the investment options available under the Plan,
except that, again as noted above and under “Your Beginning Balance” on page 5, special rules apply with respect to certain restricted amounts in your EDP account. If, upon becoming an active participant, you do not make an election with
respect to your Personal Deferral Credits, those credits will be invested in the “Moody’s” investment fund until you make a valid election. 

Your Matching Contribution Credits will all be allocated to the Verizon Shares Fund, an investment option that mirrors the return on the Company’s common stock. You can transfer your Matching Contribution 

	

	 JANUARY 1, 2005 	  	 PAGE 8 

Credits to any other investment fund only in accordance with the “diversification” transfer rules for matching contributions under the Verizon Savings Plan for Management Employees. In general, if you have at least one
year of service with Verizon, these diversification transfer rules permit you to transfer up to 50% of your Matching Contribution Credits out of the Verizon Shares Fund beginning at age 50 and up to 100% of your Matching Contribution Credits out of
the Verizon Shares Fund beginning at age 55. For more information about these diversification transfer rules, please consult the summary materials provided for the Verizon Savings Plan for Management Employees.

Exchange Restrictions on Four Funds 

The EDP restricts exchanges (transfers) into the investment options that mirror the four funds listed below in order to encourage longer-term investing and discourage excessive short-term trading: 

	
Active International Equity Fund

	
Passive International Equity Index Fund

	
Fidelity REIT Collective Pool

	
Active U.S. Small Capitalization Fund

Participants who make exchanges (transfers) out of any of these four investment options will not be able to exchange back into the same option for seven calendar days. You may continue to exchange out of these options at any time,
but you must wait seven calendar days before exchanging back into that same investment option.

 

	

	 JANUARY 1, 2005 	  	 PAGE 9 

DISTRIBUTIONS FROM THE PLAN 

MAKING AN ELECTION 

Each time you elect to defer either Eligible Base Salary, short term incentive awards or directors’ fees into the EDP, you also need to indicate how and when you would like to receive your benefit – this is called class
year accounting. You may elect one of the following distribution forms with respect to each class year of deferrals: 

	
One lump sum payment, or

	
Annual installments (for between 2 and 20 years)

You can elect to receive your benefit at separation from service or at a specific date. (In the case of installments, this is the date when the first installment is paid.) However, if you elect to receive a distribution based on a
specific date, you may not elect a distribution date that is earlier than 2 years following the year the full deferral was credited to your account.

If you elect to receive a distribution based on a specific date, you can make a subsequent election to change an existing election with respect to a class year of deferrals provided that (1) you make the election change at least
12 months prior to the original distribution date, (2) you delay the date you would have otherwise received your distributions by at least 5 years, and (3) under the terms of the new election, you will not receive your distribution sooner or over a
shorter period of time.

Consequently, you cannot make a subsequent election that results in your receiving your distribution sooner. In addition, you cannot change from installment payments to a lump sum and you cannot change from 20 annual installments to 5 annual installments. Lastly, if you have elected to receive a
distribution as of a specific date, you cannot change that election to receive payment at separation from service, as this may accelerate your distribution. Please keep these rules in mind when you are making your initial elections. 

Once you are in distribution status for a particular class year of deferrals, you can no longer submit another distribution election to further defer receiving the distribution of that class year of deferrals. 

	EXAMPLE. You
          have elected to receive your Excess Base Salary deferred in 2005 in
          two annual installments beginning on January 1, 2008. On December 1,
          2007, you submit a new election to receive your Excess Base Salary
          deferred in 2005 in a lump-sum on January 1, 2013. Because you did
          not submit this new election within 12 months of when your payment
          was scheduled to begin, your new election is invalid, and you
          will receive your first installment in January 2008. You will receive
          your second installment in January 2009 because once your benefit is
    in distribution status, you can not change your election. 

 

	

	 JANUARY 1, 2005 	  	 PAGE 10 

If you attempt to modify your election and all or any part of your new election is invalid, any valid election in effect immediately before you submitted the modification will continue to be effective. If there is no such valid
election in effect, the default rules discussed under “Default Form and Timing of Payments” beginning on page 11 will apply. 

If you elect to commence payments when your employment ends and your employment ends during the first 12 months after you submit your election, you will receive your payments at the end of the 12 month period required in order for
your election to be valid. All vested Company Contributions will be distributed in a lump sum payment after you separate from service (or six months after you separate from service if you are a “key” employee of the Company, as discussed
under “Special Rules” below). 

DEFAULT FORM AND TIMING OF PAYMENTS 

If you do not have a valid election to receive payments of all or any part of your vested EDP account, you will receive payments of your EDP account (or the part of your EDP account for which no valid election has been made) in a
lump sum as soon as administratively practicable after the month in which you separate from service with the Company.

TIMING OF PAYMENTS 

You can elect to begin receiving payments of your Personal Deferrals - 

	
on any specific date that is 2 years following the year that the Personal Deferral was credited to your account; or

	
at your separation from service with the Company (including its affiliates).

All vested Matching Contributions and any other Company Contributions will be distributed to you in a lump sum payment as soon as administratively practicable following your separation from service. 

In addition, there are some special rules that apply to the timing of payments for “key” employees of the Company, which are discussed below under “Special Rules”.

FORM OF PAYMENTS 

Subject to certain limitations discussed below under “Special Rules”, your vested Plan benefit can be paid in- 

	
a single sum; or

	
annual installments over a period of two to twenty years, subject to the “Special Rules” discussed below.

Distributions from the EDP will be made to your Fidelity brokerage account unless other arrangements are made at least 2 weeks prior to the valuation date of the distribution. 

SPECIAL RULES 

Twenty-Year Limit on Benefit Payments 

Your vested Plan benefits must be fully paid within 20 years of when your 

 

	

	 JANUARY 1, 2005 	  	 PAGE 11

employment with Verizon (and its affiliates) ends. This could impact your benefit payments in the following ways-

	
if you elect to receive all or part of your Plan benefit in a single sum on a specific date and the date you elect is more than 20 years from the date
your employment with Verizon ends, you will be deemed to have elected to receive your lump sum 20 years from the date your employment
ends;

	
if you elect to receive all or part of your Plan benefit in annual installments and, upon payment commencement, your annual installments would last
more than 20 years from the date your employment with Verizon ends, you will be deemed to have elected the number of installments equal to
the maximum number of installments between your payment commencement date and the date that is 20 years from the date your employment
ended.

Special Rule for Key Employees 

Employees who, at the time of distribution, are “key” employees of Verizon cannot receive distributions from the EDP until at least six months after their separation from service from Verizon and its affiliates. In
general, those corporate officers who earn in excess of an amount specified in the Internal Revenue Code are “key” employees. For 2005, the specified amount is $135,000.

Special Rules that Apply at Disability 

If you become disabled (as defined in the Plan) before your employment with Verizon ends, you will receive your Plan benefit according to the terms of any valid election made in accordance with the general terms of the Plan then in effect or under the default rules for form and timing of payments discussed beginning on page 11. However, in no
event will you receive any installment payments before the first business day of the first calendar quarter that begins after the date of your disability. 

If you become disabled after your employment with Verizon ends, you may only change your election regarding the form and timing of your Plan payments in accordance with the otherwise applicable terms of the Plan. 

Special Rules that Apply at Death 

At time of death, your beneficiary will receive a lump sum payout of your account as soon as administratively practicable. 

Your beneficiary or beneficiaries will not be permitted to name their own beneficiaries or to change the form or timing of the benefit payments that they will receive.

Hardship Payments 

You may at any time request payment of all or part of your Personal Deferral Credits if you can demonstrate to the Plan’s administrator that you have incurred unusual, extraordinary expenses or hardship caused by events
beyond your control, such as an accident or illness. The maximum amount that you can withdraw under these circumstances is the amount necessary to relieve the hardship or financial emergency on which the request is based.

	

	 JANUARY 1, 2005 	  	 PAGE 12

VESTING AND OTHER ISSUES 

VESTING 

“Vesting” refers to your right to the balance in all or part of your EDP account.

Your Employee Balance 

You are always 100% vested in your Personal Deferral Credits, unless you and the Company have a written agreement providing that part of your Personal Deferral Credits will vest on a different schedule.

Your Employer Contributions 

You will be fully vested in your Matching Contribution upon the earliest to occur of the following- 

	
your account in the Verizon Savings Plan for Management Employees is fully vested, which usually occurs after three years of service with
Verizon;

	
your employment with the Company is involuntarily terminated without cause, and you execute a release in a form acceptable to the Plan’s
administrator or the Plan’s administrator otherwise determines that all or a portion of your Matching Contribution Credits should be
vested;

	
you become disabled or die while employed
with Verizon; or

	
there is a change in control of Verizon

You will vest in any employer contributions transferred to the EDP under the terms of the plan from which those amounts were transferred. In addition, you will vest in any Retirement Contribution Credits received with respect to
2004 salary and bonuses under the vesting provisions of the IDP applicable to Retirement Contribution Credits. Note if you are retirement eligible or become retirement eligible under the terms of the Verizon Management Pension Plan all Retirement
Contribution Credits will be fully vested on such date. 

FORFEITURE 

You can never forfeit your Personal Deferral Credits or the vested portion of your Matching Contribution Credits. However, if you resign from Verizon or if you are terminated for cause, you will forfeit any unvested account
balance. 

In addition, the IDP rules with respect to forfeitures for violations of non-competition and non-solicit covenants continue to apply to unvested Retirement Contribution Credits transferred from the IDP and to Retirement
Contribution Credits provided under the EDP with respect to salary and incentives earned in 2004.

 

	

	 JANUARY 1, 2005 	  	 PAGE 13

MISCELLANEOUS MATTERS 

PLAN ADMINISTRATION 

The Plan’s administrator is the most senior Human Resources officer of the Company, which will generally be the Executive Vice President-Human Resources. However, if you are an “insider” for purposes of certain
securities laws, the Plan’s administrator is the Human Resources Committee of the Company’s Board of Directors. The Plan’s administrator has full discretionary authority and responsibility to administer and interpret the Plan, and has
the discretion to charge participants for reasonable Plan administration expenses. All decisions of the Plan’s administrator are final and controlling for purposes of the Plan. 

AMENDMENT AND TERMINATION 

The Company intends to operate the Plan indefinitely. However, the Company has the right to amend or terminate the Plan at any time as long as (except with respect to certain changes in the law) no amendment or termination
adversely affects the present dollar value of the vested balance in your EDP account at the time the amendment is made or the Plan is terminated. In addition, for five years following a change in control of Verizon, no amendment may adversely affect
your rights under the Plan other than your right to future Matching Contribution Credits. 

EFFECT ON OTHER BENEFIT PLANS 

By participating in the Plan, you agree that the Plan will provide all of your Company-sponsored non-qualified deferred compensation benefits beginning January 1, 2005. You will no longer be eligible to make personal contributions
or receive company contributions under the Verizon Income Deferral Plan or the Directors’ Plan. 

However, amounts you deferred into the IDP or Directors’ Plan
that were vested on or before December 31, 2004, and were not transferred to
the EDP will remain in the IDP or Directors’ Plan and subject to the applicable
 provisions of those plans as they may be amended from time to time. Amounts
 you deferred into the IDP or Directors’ Plan that were not vested on or before December 31, 2004, and were transferred to the EDP as of January 1, 2005, will
be subject to the terms of the EDP and not subject to the terms of the
IDP or Directors’ Plan after December 31, 2004. 

HYPOTHETICAL NATURE OF PLAN ACCOUNTS AND INVESTMENTS

Your EDP account is hypothetical in nature. That is, your Personal Deferral Credits and your Matching Contribution Credits are maintained for bookkeeping purposes only-there are no actual funds or assets in any of these
accounts.

 

	

	 JANUARY 1, 2005 	  	 PAGE 14

Similarly, the investments under the Plan are only hypothetical in nature. You will instruct the Plan’s administrator as to how you would like your EDP account invested. However, because your EDP account is only hypothetical,
the Plan’s administrator will not necessarily make any actual investments in accordance with your instructions. Nonetheless, the Plan’s administrator will track your investment selections and will credit your EDP account with investment
gains (or losses) based on the gains (or losses) on the investments you choose. 

PLAN ASSETS NOT
HELD IN TRUST 

  Unlike the Verizon Savings Plan for Management
  Employees and the Verizon Management Pension Plan, the EDP is not funded and
  your benefits under the Plan are not protected by a trust. (If your EDP account
  were funded by a trust, you would be subject to immediate income tax on your
  vested Plan benefits, even though you would not receive your vested Plan benefits
  until some future date-one that is possibly many years in the future.) Consequently,
  in the unlikely event that the Company becomes bankrupt, you will only be a
  general, unsecured creditor of the Company with respect to the balance in your
EDP account, and you may not receive all of your benefits. 

ASSIGNMENT AND ALIENATION  

In general, your rights under the Plan may not be assigned or alienated. However, the Plan will recognize and abide by the terms of certain domestic relations orders. 

WITHHOLDING AND OTHER TAX CONSEQUENCES 

The Plan’s administrator has full authority to withhold any taxes (including employment taxes) applicable to amounts deferred from your compensation, credits made to your EDP account, or payments of your Plan benefit. All
deferrals and company match to the EDP are subject to FICA taxes (Medicare and Social Security up to annual limits). 

CONTINUED EMPLOYMENT  

Nothing in the Plan confers on you the right to continue in the employment or service of the Company or to receive an annual base salary of any particular amount. 

 

	

	 JANUARY 1, 2005 	  	 PAGE 15

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