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QWEST COMMUNICATIONS INTERNATIONAL INC.  

 EQUITY INCENTIVE PLAN  

(effective June 23, 1997)  

 (amended and restated, effective October 4, 2000)  

 

  

 
  
 

    TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE I INTRODUCTION	 	1
	 	1.1	 	Establishment	 	1
	 	1.2	 	Purposes	 	1
	 	1.3	 	Effective Date; Amendment	 	1
	

ARTICLE II DEFINITIONS	
 	

1
	 	2.1	 	Definitions	 	1
	 	2.2	 	Gender and Number	 	3
	

ARTICLE III PLAN ADMINISTRATION	
 	

3
	 	3.1	 	General	 	3
	 	3.2	 	Delegation by Committee	 	4
	 	3.3	 	Grants to Non-Employee Directors	 	4
	

ARTICLE IV STOCK SUBJECT TO THE PLAN	
 	

4
	 	4.1	 	Number of Shares	 	4
	 	4.2	 	Other Shares of Stock	 	4
	 	4.3	 	Adjustments for Stock Split, Stock Dividend, Etc.	 	5
	 	4.4	 	Other Distributions and Changes in the Stock	 	5
	 	4.5	 	General Adjustment Rules	 	5
	 	4.6	 	Determination by the Committee, Etc.	 	5
	

ARTICLE V CORPORATE REORGANIZATION; CHANGE IN CONTROL	
 	

6
	 	5.1	 	Reorganization of Qwest	 	6
	 	5.2	 	Required Notice	 	6
	 	5.3	 	Acceleration of Exercisability	 	6
	 	5.4	 	Change in Control of Qwest	 	7
	 	5.5	 	Reorganization of Affiliated Corporations	 	7
	

ARTICLE VI PARTICIPATION	
 	

8
	 	6.1	 	Eligible Employees; Eligible Consultants	 	8
	 	6.2	 	Non-Employee Directors	 	8
	

ARTICLE VII OPTIONS	
 	

8
	 	7.1	 	Grant of Options	 	8
	 	7.2	 	Stock Option Certificates	 	8
	 	7.3	 	Restrictions on Incentive Options	 	11
	 	7.4	 	Shareholder Privileges	 	11
	

ARTICLE VIII RESTRICTED STOCK AWARDS	
 	

12
	 	8.1	 	Grant of Restricted Stock Awards	 	12
	 	8.2	 	Restrictions	 	12
	 	8.3	 	Privileges of a Stockholder, Transferability	 	12
	 	8.4	 	Enforcement of Restrictions	 	12
	 	 	 	 	 

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ARTICLE IX STOCK UNITS	
 	

12
	

ARTICLE X STOCK APPRECIATION RIGHTS	
 	

13
	 	10.1	 	Persons Eligible	 	13
	 	10.2	 	Terms of Grant	 	13
	 	10.3	 	Exercise	 	13
	 	10.4	 	Number of Shares or Amount of Cash	 	13
	 	10.5	 	Effect of Exercise	 	13
	 	10.6	 	Termination of Services	 	13
	

ARTICLE XI STOCK BONUSES	
 	

13
	

ARTICLE XII OTHER COMMON STOCK GRANTS	
 	

14
	

ARTICLE XIII RIGHTS OF PARTICIPANTS	
 	

14
	 	13.1	 	Service	 	14
	 	13.2	 	Nontransferability	 	14
	 	13.3	 	No Plan Funding	 	14
	

ARTICLE XIV GENERAL RESTRICTIONS	
 	

15
	 	14.1	 	Investment Representations	 	15
	 	14.2	 	Compliance with Securities Laws	 	15
	 	14.3	 	Changes in Accounting Rules	 	15
	

ARTICLE XV OTHER EMPLOYEE BENEFITS	
 	

15
	

ARTICLE XVI PLAN AMENDMENT, MODIFICATION AND TERMINATION	
 	

15
	

ARTICLE XVII WITHHOLDING	
 	

16
	 	17.1	 	Withholding Requirement	 	16
	 	17.2	 	Withholding With Stock	 	16
	

ARTICLE XVIII REQUIREMENTS OF LAW	
 	

16
	 	18.1	 	Requirements of Law	 	16
	 	18.2	 	Federal Securities Law Requirements	 	16
	 	18.3	 	Governing Law	 	16
	

ARTICLE XIX DURATION OF THE PLAN	
 	

17

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QWEST COMMUNICATIONS INTERNATIONAL INC.
  
    EQUITY INCENTIVE PLAN    
    

 
 

ARTICLE I
  
    INTRODUCTION    
    

        1.1   Establishment. Qwest Communications International Inc., a Delaware corporation, effective June 23, 1997,
established the Qwest Communications International Inc. Equity Incentive Plan (the "Plan") for certain employees of the Company (as defined in subsection 2.1(f)) and certain consultants to the
Company. The Plan permits the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified stock options,
restricted stock awards, stock appreciation rights, stock bonuses, stock units and other stock grants to certain key employees of the Company and to certain consultants to the Company. 

        1.2   Purposes. The purposes of the Plan are to provide those who are selected for participation in the Plan with added
incentives to continue in the long-term service of the Company and to create in such persons a more direct interest in the future success of the operations of the Company by relating
incentive compensation to increases in shareholder value, so that the income of those participating in the Plan is more closely aligned with the income of the Company's shareholders. The Plan is also
designed to provide a financial incentive that will help the Company attract, retain and motivate the most qualified employees and consultants. 

        1.3   Effective Date; Amendment. The initial effective date of the Plan was June 23, 1997. The Plan is hereby amended
and restated, as of October 4, 2000, to provide that Non-Employee Directors (as defined below) are eligible to receive grants of non-qualified stock options under the
Plan. The provisions of the Plan, as so amended and restated, shall apply to any Award (as defined in subsection 2.1(b)) granted on or after October 4, 2000. 

 
 

ARTICLE II
  
    DEFINITIONS    
    

        2.1   Definitions. The following terms shall have the meanings set forth below: 

        (a)   "Affiliated Corporation" means any corporation or other entity that is affiliated with Qwest through stock ownership or
otherwise and is designated as an "Affiliated Corporation" by the Board, provided, however, that for purposes of Incentive Options granted pursuant to the Plan, an "Affiliated Corporation" means any
parent or subsidiary of the Company as defined in Section 424 of the Code. 

        (b)   "Award" means an Option, a Restricted Stock Award, a Stock Appreciation Right, a Stock Unit, grants of Stock pursuant to
Article XI or other issuances of Stock hereunder. 

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

        (d)   "Code" means the Internal Revenue Code of 1986, as it may be amended from time to time. 

        (e)   "Committee" means a committee consisting of members of the Board who are empowered hereunder to take actions in the
administration of the Plan. The Committee shall be so constituted at all times as to permit the Plan to comply with Rule 16b-3 or any successor rule promulgated under the Securities
Exchange Act of 1934 (the "1934 Act"). Except as provided in Section 3.2, the Committee shall select Participants from Eligible Employees and Eligible Consultants of the Company and shall
determine the awards to be made pursuant to the Plan and the terms and conditions thereof. 

        (f)    "Company" means Qwest and the Affiliated Corporations. 

 

        (g)   "Disabled" or "Disability" shall have the meaning given to such terms in
Section 22(e)(3) of the Code. 

        (h)   "Effective Date" means the original effective date of the Plan, June 23, 1997. 

        (i)    "Eligible Employees" means those employees (including, without limitation, officers and directors who are also employees)
of the Company or any subsidiary or division thereof, upon whose judgment, initiative and efforts the Company is, or will become, largely dependent for the successful conduct of its business. For
purposes of the Plan, an employee is any individual who provides services to the Company or any subsidiary or division thereof as a common law employee and whose remuneration is subject to the
withholding of federal income tax pursuant to section 3401 of the Code. Employee shall not include any individual (A) who provides services to the Company or any subsidiary or division
thereof under an agreement, contract, or any other arrangement pursuant to which the individual is initially classified as an independent contractor or (B) whose remuneration for services has
not been treated initially as subject to the withholding of federal income tax pursuant to section 3401 of the Code even if the individual is subsequently reclassified as a common law employee
as a result of a final decree of a court of competent jurisdiction or the settlement of an administrative or judicial proceeding. Leased employees within the meaning of section 414(n) of the
Code shall not be treated as employees under this Plan. 

        (j)    "Eligible Consultants" means those consultants to the Company who are determined, by the Committee, to be individuals
whose services are important to the Company and who are eligible to receive Awards, other than Incentive Options, under the Plan. 

        (k)   "Fair Market Value" means the average of the mean between the bid and the asked prices of the Stock or the closing price,
as applicable, on the New York Stock Exchange, the principal stock exchange or other market on which the Stock is traded, over the five consecutive trading days ending on a particular date or by such
other method as the Committee, or the individual or individuals to whom the Committee has delegated authority to grant Awards, may specify at the time an Award is granted. If the price of the Stock is
not reported on any securities exchange or national market system, the Fair Market Value of the Stock on a particular date shall be as determined by the Committee. If, upon exercise of an Option, the
exercise price is paid by a broker's transaction as provided in subsection 7.2(g)(ii)(D), Fair Market Value, for purposes of the exercise, shall be the price at which the Stock is sold by the broker. 

        (l)    "Incentive Option" means an Option designated as such and granted in accordance with Section 422 of the Code. 

        (m)  "Non-Employee Director" means a member of the Board who is not an employee (as defined in the second sentence
of subsection 2.1(i) above) of the Company. 

        (n)   "Non-Qualified Option" means any Option other than an Incentive Option. 

        (o)   "Option" means a right to purchase Stock at a stated or formula price for a specified period of time. Options granted
under the Plan shall be either Incentive Options or Non-Qualified Options. 

        (p)   "Option Certificate" shall have the meaning given to such term in Section 7.2 hereof. 

        (q)   "Option Holder" means a Participant who has been granted one or more Options under the Plan. 

        (r)   "Option Price" means the price at which each share of Stock subject to an Option may be purchased, determined in
accordance with subsection 7.2(b). 

2

 

        (s)   "Participant" means an Eligible Employee or Eligible Consultant designated by the Committee from time to time during the
term of the Plan to receive one or more of the Awards provided under the Plan and a Non-Employee Director who has been granted an Option as provided in Section 6.2. 

        (t)    "Qwest" means Qwest Communications International Inc. and any successor thereto. 

        (u)   "Restricted Stock Award" means an award of Stock granted to a Participant pursuant to Article VIII that is subject
to certain restrictions imposed in accordance with the provisions of such Section. 

        (v)   "Share" means a share of Stock. 

        (w)  "Stock" means the $0.01 par value common stock of Qwest. 

        (x)   "Stock Appreciation Right" means the right, granted by the Committee pursuant to the Plan, to receive a payment equal to
the increase in the Fair Market Value of a Share of Stock subsequent to the grant of such Award. 

        (y)   "Stock Bonus" means either an outright grant of Stock or a grant of Stock subject to and conditioned upon certain
employment or performance related goals. 

        (z)   "Stock Unit" means a measurement component equal to the Fair Market Value of one share of Stock on the date for which a
determination is made pursuant to the provisions of this Plan. 

        2.2   Gender and Number. Except when otherwise indicated by the context, the masculine gender shall also include the feminine
gender, and the definition of any term herein in the singular shall also include the plural. 

 
 

ARTICLE III
  
    PLAN ADMINISTRATION    
    

        3.1   General. The Plan shall be administered by the Committee. In accordance with the provisions of the Plan, the Committee
shall, in its sole discretion, select the Participants from among the Eligible Employees and Eligible Consultants, determine the Awards to be made pursuant to the Plan, the number of Stock Units,
Stock Appreciation Rights or shares of Stock to be issued thereunder and the time at which such Awards are to be made, fix the Option Price, period and manner in which an Option becomes exercisable,
establish the duration and nature of Restricted Stock Award restrictions, establish the terms and conditions applicable to Stock Bonuses and Stock Units, and establish such other terms and
requirements of the various compensation incentives under the Plan as the Committee may deem necessary or desirable and consistent with the terms of the Plan. The Committee shall determine the form or
forms of the agreements with Participants that shall evidence the particular provisions, terms, conditions, rights and duties of Qwest and the Participants with respect to Awards granted pursuant to
the Plan, which provisions need not be identical except as may be provided herein; provided, however, that Eligible Consultants shall not be eligible to receive Incentive Options. The Committee may
from time to time adopt such rules and regulations for carrying out the purposes of the Plan as it may deem proper and in the best interests of the Company. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any agreement entered into hereunder in the manner and to the extent it shall deem expedient and it shall be the sole and final
judge of such expediency. No member of the Committee shall be liable for any action or determination made in good faith. The determinations, interpretations and other actions of the Committee pursuant
to the provisions of the Plan shall be binding and conclusive for all purposes and on all persons. 

3

 

        3.2   Delegation by Committee. The Committee may, from time to time, delegate, to specified officers of Qwest, the power and
authority to grant Awards under the Plan to specified groups of employees and consultants, subject to such restrictions and conditions as the Committee, in its sole discretion, may impose. The
delegation shall be as broad or as narrow as the Committee shall determine. To the extent that the Committee has delegated the authority to determine certain terms and conditions of an Award, all
references in the Plan to the Committee's exercise of authority in determining such terms and conditions shall be construed to include the Qwest officer or officers to whom the Committee has delegated
the power and authority to make such determination. The power and authority to grant Awards to any employee or consultant who is covered by Section 16(b) of the 1934 Act shall not be delegated
by the Committee. 

        3.3   Grants to Non-Employee Directors. The Committee may make grants of Non-Qualified Options to
Non-Employee Directors. 

 
 

ARTICLE IV
  
    STOCK SUBJECT TO THE PLAN    
    

        4.1   Number of Shares. The maximum aggregate number of Shares that may be issued under the Plan at any time pursuant to Awards
shall equal 10% of the aggregate number of Shares that are issued and outstanding at such time (determined as of the close of trading on the New York Stock Exchange on the trading day immediately
preceding such time), reduced by the number of Shares that are subject to outstanding Awards granted under this Plan and outstanding options granted under any other plan or arrangement of the Company
or any subsidiary of the Company (excluding the Company's Employee Stock Purchase Plan) at such time. Upon exercise of an option (whether granted under this Plan or otherwise), the Shares issued upon
exercise of such option shall no longer be considered to be subject to an outstanding Award or option for purposes of the immediately preceding sentence. Notwithstanding anything to the contrary
contained herein, no Award granted hereunder shall become void or otherwise be adversely affected solely because of a change in the number of Shares of the Company that are issued and outstanding from
time to time, provided that changes to the issued and outstanding Shares may result in adjustments to outstanding Awards in accordance with the provisions of this Article IV. The maximum number
of Shares with respect to which a Participant may receive Options and Stock Appreciation Rights under the Plan in any calendar year is 40,000,000. The maximum number of Shares as to which Incentive
Options may be granted is 75,000,000. The Shares may be either authorized and unissued Shares or previously issued Shares acquired by Qwest. Such maximum numbers may be increased from time to time by
approval of the Board and by the stockholders of Qwest if, in the opinion of counsel for Qwest, stockholder approval is required. Qwest shall at all times during the term of the Plan and while any
Options or Stock Units are outstanding retain as authorized and unissued Stock at least the number of Shares from time to time required under the provisions of the Plan, or otherwise assure itself of
its ability to perform its obligations hereunder. 

        4.2   Other Shares of Stock. Any shares of Stock that are subject to an Option that expires or for any reason is terminated
unexercised, any shares of Stock that are subject to an Award (other than an Option) and that are forfeited, and any shares of Stock withheld for the payment of taxes or received by Qwest as payment
of the exercise price of an Option shall automatically become available for use under the Plan, provided, however, that no more than 75,000,000 shares of Stock may be awarded pursuant to Incentive
Options. 

4

 

        4.3   Adjustments for Stock Split, Stock Dividend, Etc. If Qwest shall at any time increase or decrease the number of its
outstanding Shares or change in any way the rights and privileges of such Shares by means of the payment of a stock dividend or any other distribution upon such shares payable in Stock, or through a
stock split, subdivision, consolidation, combination, reclassification or recapitalization involving the Stock, then in relation to the Stock that is affected by one or more of the above events, the
numbers, rights and privileges of the following shall be increased, decreased or changed in like manner as if they had been issued and outstanding, fully paid and nonassessable at the time of such
occurrence: (i) the Shares as to which Awards may be granted under the Plan, (ii) the Shares then included in each outstanding Award granted hereunder, (iii) the maximum number of
Shares available for grant to any one person in a calendar year, (iv) the maximum number of Shares available for grant pursuant to Incentive Options, and (v) the number of Shares subject
to a delegation of authority under Section 4.2 of this Plan. 

        4.4   Other Distributions and Changes in the Stock. If 

        (a)   Qwest
shall at any time distribute with respect to the Stock assets or securities of persons other than Qwest (excluding cash or distributions referred to in
Section 4.3), or 

        (b)   Qwest
shall at any time grant to the holders of its Stock rights to subscribe pro rata for additional shares thereof or
for any other securities of Qwest, or 

        (c)   there
shall be any other change (except as described in Section 4.3) in the number or kind of outstanding Shares or of any stock or other securities into which
the Stock shall be changed or for which it shall have been exchanged, 

and
if the Committee shall in its discretion determine that the event described in subsection (a), (b), or (c) above equitably requires an adjustment in the number or kind of Shares subject to
an Option or other Award, an adjustment in the Option Price or the taking of any other action by the Committee, including without limitation, the setting aside of any property for delivery to the
Participant upon the exercise of an Option or the full vesting of an Award, then such adjustments shall be made, or other action shall be taken, by the Committee and shall be effective for all
purposes of the Plan and on each outstanding Option or Award that involves the particular type of stock for which a change was effected. Notwithstanding the foregoing provisions of this
Section 4.4, pursuant to Section 8.3 below, a Participant holding Stock received as a Restricted Stock Award shall have the right to receive all amounts, including cash and property of
any kind, distributed with respect to the Stock after such Restricted Stock Award was granted upon the Participant's becoming a holder of record of the Stock. 

        4.5   General Adjustment Rules. No adjustment or substitution provided for in this Article IV shall require Qwest to
sell a fractional share of Stock under any Option, or otherwise issue a fractional share of Stock, and the total substitution or adjustment with respect to each Option and other Award shall be limited
by deleting any fractional share. In the case of any such substitution or adjustment, the aggregate Option Price for the total number of shares of Stock then subject to an Option shall remain
unchanged but the Option Price per share under each such Option shall be equitably adjusted by the Committee to reflect the greater or lesser number of shares of Stock or other securities into which
the Stock subject to the Option may have been changed, and appropriate adjustments shall be made to other Awards to reflect any such substitution or adjustment. 

        4.6   Determination by the Committee, Etc. Adjustments under this Article IV shall be made by the Committee, whose
determinations with regard thereto shall be final and binding upon all parties thereto. 

5

 

 
 

ARTICLE V
  
    CORPORATE REORGANIZATION; CHANGE IN CONTROL    
    

        5.1   Reorganization of Qwest. Except as provided otherwise by the Committee at the time an Award is granted, upon the
occurrence of any of the following events, if the notice required by Section 5.2 shall have first been given, the Plan and all Options then outstanding hereunder shall automatically terminate
and be of no further force and effect whatsoever, and other Awards then outstanding shall be treated as described in Sections 5.2 and 5.3, without the necessity for any additional notice or other
action by the Board or Qwest: (a) the merger or consolidation of Qwest with or into another corporation or other reorganization (other than a reorganization under the United States Bankruptcy
Code) of Qwest (other than a consolidation, merger, or reorganization in which Qwest is the continuing corporation and which does not result in any reclassification or change of outstanding shares of
Stock); or (b) the sale or conveyance of the property of Qwest as an entirety or substantially as an entirety (other than a sale or conveyance in which Qwest continues as a holding company of
an entity or entities that conduct the business or businesses formerly conducted by Qwest); or (c) the dissolution or liquidation of Qwest. 

        5.2   Required Notice. At least 30 days' prior written notice of any event described in Section 5.1 shall be
given by Qwest to each Option Holder and Participant unless (a) in the case of the events described in clauses (a) or (b) of Section 5.1, Qwest, or the successor or
purchaser, as the case may be, shall make adequate provision for the assumption of the outstanding Options or the substitution of new options for the outstanding Options on terms comparable to the
outstanding Options except that the Option Holder shall have the right thereafter to purchase the kind and amount of securities or property or cash receivable upon such merger, consolidation, other
reorganization, sale or conveyance by a holder of the number of Shares that would have been receivable upon exercise of the Option immediately prior to such merger, consolidation, sale or conveyance
(assuming such holder of Stock failed to exercise any rights of election and received per share the kind and amount received per share by a majority of the non-electing shares), or
(b) Qwest, or the successor or purchaser, as the case may be, shall make adequate provision for the adjustment of outstanding Awards (other than Options) so that such Awards shall entitle the
Participant to receive the kind and amount of securities or property or cash receivable upon such merger, consolidation, other reorganization, sale or conveyance by a holder of the number of Shares
that would have been receivable with respect to such Award immediately prior to such merger, consolidation, other reorganization, sale or conveyance (assuming such holder of Stock failed to exercise
any rights of election and received per share the kind and amount received per share by a majority of the non-electing shares). The provisions of this Article V shall similarly
apply to successive mergers, consolidations, reorganizations, sales or conveyances. Such notice shall be deemed to have been given when delivered personally to a Participant or when mailed to a
Participant by registered or certified mail, postage prepaid, at such Participant's address last known to the Company. 

        5.3   Acceleration of Exercisability. Participants notified in accordance with Section 5.2 may exercise their Options at
any time before the occurrence of the event requiring the giving of notice (but subject to occurrence of such event), regardless of whether all conditions of exercise relating to length of service,
attainment of financial performance goals or otherwise have been satisfied. Upon the giving of notice in accordance with Section 5.2, all restrictions with respect to Restricted Stock and other
Awards shall lapse immediately, all Stock Units shall become payable immediately and all Stock Appreciation Rights shall become exercisable. Any Options, Stock Appreciation Rights or Stock Units that
are not assumed or substituted under clauses (a) or (b) of Section 5.2 that have not been exercised prior to the event described in Section 5.1 shall automatically
terminate upon the occurrence of such event. 

6

 

        5.4   Change in Control of Qwest.

        (a)   In General. Unless provided otherwise by the Committee at the time of the grant of an Award, upon a change in control of
Qwest as defined in subsection 5.4(b), then (i) all Options shall become immediately exercisable in full during the remaining term thereof, and shall remain so, whether or not the Participants
to whom such Options have been granted remain employees, consultants or directors of the Company; (ii) all restrictions with respect to outstanding Restricted Stock Awards shall immediately
lapse; (iii) all Stock Units shall become immediately payable; and (iv) all other Awards shall become immediately exercisable or shall vest, as the case may be, without any further
action or passage of time. 

        (b)   Definition. For purposes of this Plan, a "change in control" shall be deemed to have occurred if either (i) any
individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act), other than Anschutz Company, The Anschutz Corporation, any entity or organization controlled
by Philip F. Anschutz (collectively, the "Anschutz Entities") or a trustee or other fiduciary holding securities under an employee benefit plan of the Company, acquires beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of either (A) the then-outstanding shares of Stock ("Outstanding Shares")
or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors ("Voting Power") or (ii) at
any time during any period of three consecutive years (not including any period prior to the Effective Date), individuals who at the beginning of such period constitute the Board (and any new director
whose election by the Board or whose nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either
were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority thereof. 

        5.5   Reorganization of Affiliated Corporations. If an Affiliated Corporation is merged or consolidated with another
corporation (other than a merger or consolidation pursuant to which the Affiliated Corporation continues to be, or the continuing corporation is, affiliated with Qwest through stock ownership or
control), or if all or substantially all of the assets or more than fifty percent (50%) of the stock of the Affiliated Corporation is acquired by any other corporation, business entity or person
(other than a transaction in which the successor is affiliated with Qwest through stock ownership or control), or in the case of a reorganization (other than a reorganization under the United States
Bankruptcy Code) including a divisive reorganization under Section 355 of the Code, or liquidation of the Affiliated Corporation, the Committee may, as to outstanding Awards, make appropriate
provision for the protection of outstanding Awards granted to Eligible Employees of, and Eligible Consultants to, the affected Affiliated Corporation by (i) providing for the assumption of
outstanding Options or the substitution of new Options for outstanding Options by the successor on terms comparable to the outstanding Options, (ii) providing for the adjustment of outstanding
Awards, or (iii) taking such other action with respect to outstanding Awards as the Committee deems appropriate. 

7

 
 
 

ARTICLE VI
  
    PARTICIPATION    
    

        6.1   Eligible Employees; Eligible Consultants. Participants in the Plan shall be those Eligible Employees who, in the judgment
of the Committee, are performing, or during the term of their incentive arrangement will perform, vital services in the management, operation and development of the Company, and significantly
contribute, or are expected to significantly contribute, to the achievement of long-term corporate economic objectives. Eligible Consultants shall be selected from those
non-employee consultants to the Company who are performing services important to the operation and growth of the Company. Participants may be granted from time to time one or more Awards;
provided, however, that the grant of each such Award shall be separately approved by the Committee and receipt of one such Award shall not result in automatic receipt of any other Award. Upon
determination by the Committee that an Award is to be granted to a Participant, written notice shall be given to such person, specifying the terms, conditions, rights and duties related thereto. Each
Participant shall, if required by the Committee, enter into an agreement with Qwest, in such form as the Committee shall determine and which is consistent with the provisions of the Plan, specifying
such terms, conditions, rights and duties. Awards shall be deemed to be granted as of the date specified in the grant resolution of the Committee, which date shall be the date of any related agreement
with the Participant. In the event of any inconsistency between the provisions of the Plan and any such agreement entered into hereunder, the provisions of the Plan shall govern. 

        6.2   Non-Employee Directors. The Committee may, from time to time, grant Non-Qualified Options to one
or more Non-Employee Directors, who shall be Participants in the Plan. Each Option shall include the terms and conditions that are determined by the Committee and that are consistent with
the terms of the Plan. Each Participant shall, if required by the Committee, enter into an agreement with Qwest, in such form as the Committee shall determine and that is consistent with the terms of
the Plan, specifying the terms and conditions of the Option and the rights and duties of the Participant. An Option shall be deemed granted as of the date specified in the grant resolution of the
Committee, which date shall be the date of any related Agreement with the Participant. In the event of any inconsistency between the provisions of the Plan and any such agreement entered into
hereunder, the provisions of the Plan shall govern. 

 
 

ARTICLE VII
  
    OPTIONS    
    

        7.1   Grant of Options. Coincident with or following designation for participation in the Plan, a Participant may be granted
one or more Options. The Committee in its sole discretion shall designate whether an Option is an Incentive Option or a Non-Qualified Option; provided, however, that only
Non-Qualified Options may be granted to Eligible Consultants. The Committee may grant both an Incentive Option and a Non-Qualified Option to an Eligible Employee at the same
time or at different times. Incentive Options and Non-Qualified Options, whether granted at the same time or at different times, shall be deemed to have been awarded in separate grants and
shall be clearly identified, and in no event shall the exercise of one Option affect the right to exercise any other Option or affect the number of shares for which any other Option may be exercised.
An Option shall be considered as having been granted on the date specified in the grant resolution of the Committee. 

        7.2   Stock Option Certificates. Each Option granted under the Plan shall be evidenced by a written stock option certificate or
agreement (an "Option Certificate"). An Option Certificate shall be issued by Qwest in the name of the Participant to whom the Option is granted (the "Option Holder") and in such form as may be
approved by the Committee. The Option Certificate shall incorporate and conform to the conditions set forth in this Section 7.2 as well as such other terms and conditions that are not
inconsistent as the Committee may consider appropriate in each case. 

8

 

        (a)   Number of Shares. Each Option Certificate shall state that it covers a specified number of shares of Stock, as determined
by the Committee. 

        (b)   Price. The price at which each share of Stock covered by an Option may be purchased shall be determined in each case by
the Committee and set forth in the Option Certificate, but, in the case of an Incentive Option, in no event shall the price be less than 100 percent of the Fair Market Value of the Stock on the
date the Incentive Option is granted. 

        (c)   Duration of Options; Restrictions on Exercise. Each Option Certificate shall state the period of time, determined by the
Committee, within which the Option may be exercised by the Option Holder (the "Option Period"). The Option Period must end, in all cases, not more than ten years from the date the Option is granted.
The Option Certificate shall also set forth any installment or other restrictions on exercise of the Option during such period, if any, as may be determined by the Committee. Each Option shall become
exercisable (vest) over such period of time, if any, or upon such events, as determined by the Committee. 

        (d)   Termination of Services, Death, Disability, Etc. The Committee may specify the period, if any, during which an Option may
be exercised following termination of the Option Holder's services. The effect of this subsection 7.2(d) shall be limited to determining the consequences of a termination and nothing in this
subsection 7.2(d) shall restrict or otherwise interfere with the Company's discretion with respect to the termination of any individual's services. If the Committee does not otherwise specify, the
following shall apply: 

        (i)    If
the services of the Option Holder are terminated within the Option Period for "cause", as determined by the Company, the Option shall thereafter be void for all
purposes. As used in this subsection 7.2(d), "cause" shall mean willful misconduct, a willful failure to perform the Option Holder's duties, insubordination, theft, dishonesty, conviction of a felony
or any other willful conduct that is materially detrimental to the Company or such other cause as the Board in good faith reasonably determines provides cause for the discharge of an Option Holder. 

        (ii)   If
the Option Holder becomes Disabled, the Option may be exercised by the Option Holder within one year following the Option Holder's termination of services on account
of Disability (provided that such exercise must occur within the Option Period), but not thereafter. In any such case, the Option may be exercised only as to the shares as to which the Option had
become exercisable on or before the date of the Option Holder's termination of services because of Disability. 

        (iii)  If
the Option Holder dies during the Option Period while still performing services for the Company or within the one year period referred to in (ii) above or
the three-month period referred to in (iv) below, the Option may be exercised by those entitled to do so under the Option Holder's will or by the laws of descent and distribution within one
year following the Option Holder's death, (provided that such exercise must occur within the Option Period), but not thereafter. In any such case, the Option may be exercised only as to the shares as
to which the Option had become exercisable on or before the date of the Option Holder's death. 

        (iv)  If
the services of the Option Holder are terminated (which for this purpose means that the Option Holder is no longer employed by the Company or performing services for
the Company) by the Company within the Option Period for any reason other than cause, Disability, or death, the Option may be exercised by the Option Holder within three months following the date of
such termination (provided that such exercise must occur within the Option Period), but not thereafter. In any such case, the Option may be exercised only as to the shares as to which the Option had
become exercisable on or before the date of termination of services. 

9

 

        (e)   Transferability. Each Option shall not be transferable by the Option Holder except by will or pursuant to the laws of
descent and distribution. Each Option is exercisable during the Option Holder's lifetime only by him or her, or in the event of Disability or incapacity, by his or her guardian or legal
representative. The Committee may, however, provide at the time of grant or thereafter that the Option Holder may transfer a Non-Qualified Option to a member of the Option Holder's
immediate family, a trust of which members of the Option Holder's immediate family are the only beneficiaries, or a partnership of which members of the Option Holder's immediate family or trusts for
the sole benefit of the Option Holder's immediate family are the only partners. Immediate family means the Option Holder's spouse, issue (by birth or adoption), parents, grandparents, and siblings
(including half brothers and sisters and adopted siblings). During the Option Holder's lifetime the Option Holder may not transfer an Incentive Option under any circumstances. 

        (f)    Consideration for Grant of Option. Each Option Holder agrees to remain in the employment of the Company or to continue
providing consulting services to the Company, as the case may be, at the pleasure of the Company, for a continuous period of at least one year after the date the Option is granted, at the rate of
compensation in effect on the date of such agreement or at such changed rate as may be fixed, from time to time, by the Company. Nothing in this paragraph shall limit or impair the Company's right to
terminate the employment of any employee or to terminate the consulting services of any consultant. 

        (g)   Exercise, Payments, Etc.

        (i)    Manner of Exercise. The method for exercising each Option granted hereunder shall be by delivery to Qwest of written
notice specifying the number of Shares with respect to which such Option is exercised. The purchase of such Shares shall take place at the principal offices of Qwest within thirty days following
delivery of such notice, at which time the Option Price of the Shares shall be paid in full by any of the methods set forth below or a combination thereof. Except as set forth in the next sentence,
the Option shall be exercised when the Option Price for the number of shares as to which the Option is exercised is paid to Qwest in full. If the Option Price is paid by means of a broker's loan
transaction described in subsection 7.2(g)(ii)(D), in whole or in part, the closing of the purchase of the Stock under the Option shall take place (and the Option shall be treated as exercised) on the
date on which, and only if, the sale of Stock upon which the broker's loan was based has been closed and settled, unless the Option Holder makes an irrevocable written election, at the time of
exercise of the Option, to have the exercise treated as fully effective for all purposes upon receipt of the Option Price by Qwest regardless of whether or not the sale of the Stock by the broker is
closed and settled. A properly executed certificate or certificates representing the Shares shall be delivered to or at the direction of the Option Holder upon payment therefor. If Options on less
than all shares evidenced by an Option Certificate are exercised, Qwest shall deliver a new Option Certificate evidencing the Option on the remaining shares upon delivery of the Option Certificate for
the Option being exercised. 

        (ii)   The
exercise price shall be paid by any of the following methods or any combination of the following methods at the election of the Option Holder, or by any other
method approved by the Committee upon the request of the Option Holder: 

        (A)  in
cash; 

        (B)  by
certified check, cashier's check or other check acceptable to the Company, payable to the order of Qwest; 

10

 

        (C)  by
delivery to Qwest of certificates representing the number of shares then owned by the Option Holder, the Fair Market Value of which equals the purchase price of the
Stock purchased pursuant to the Option, properly endorsed for transfer to Qwest; provided however, that no Option may be exercised by delivery to Qwest of certificates representing Stock, unless such
Stock has been held by the Option Holder for more than six months; for purposes of this Plan, the Fair Market Value of any shares of Stock delivered in payment of the purchase price upon exercise of
the Option shall be the Fair Market Value as of the exercise date; the exercise date shall be the day of delivery of the certificates for the Stock used as payment of the Option Price; or 

        (D)  by
delivery to Qwest of a properly executed notice of exercise together with irrevocable instructions to a broker to deliver to Qwest promptly the amount of the proceeds
of the sale of all or a portion of the Stock or of a loan from the broker to the Option Holder required to pay the Option Price. 

        (h)   Date of Grant. An Option shall be considered as having been granted on the date specified in the grant resolution of the
Committee. 

        (i)    Withholding.

        (i)    Non-Qualified Options. Upon exercise of an Option, the Option Holder shall make appropriate arrangements with
the Company to provide for the amount of additional withholding required by Sections 3102 and 3402 of the Code and applicable state income tax laws, including payment of such taxes through delivery of
shares of Stock or by withholding Stock to be issued under the Option, as provided in Article XVII. 

        (ii)   Incentive Options. If an Option Holder makes a disposition (as defined in Section 424(c) of the Code) of any
Stock acquired pursuant to the exercise of an Incentive Option prior to the expiration of two years from the date on which the Incentive Option was granted or prior to the expiration of one year from
the date on which the Option was exercised, the Option Holder shall send written notice to the Company at the Company's principal place of business of the date of such disposition, the number of
shares disposed of, the amount of proceeds received from such disposition and any other information relating to such disposition as the Company may reasonably request. The Option Holder shall, in the
event of such a disposition, make appropriate arrangements with the Company to provide for the amount of additional withholding, if any, required by Sections 3102 and 3402 of the Code and applicable
state income tax laws. 

        7.3   Restrictions on Incentive Options.

        (a)   Initial Exercise. The aggregate Fair Market Value of the Shares with respect to which Incentive Options are exercisable
for the first time by an Option Holder in any calendar year, under the Plan or otherwise, shall not exceed $100,000. For this purpose, the Fair Market Value of the Shares shall be determined as of the
date of grant of the Option. 

        (b)   Ten Percent Stockholders. Incentive Options granted to an Option Holder who is the holder of record of 10% or more of the
outstanding Stock of Qwest shall have an Option Price equal to 110% of the Fair Market Value of the Shares on the date of grant of the Option and the Option Period for any such Option shall not exceed
five years. 

        7.4   Shareholder Privileges. No Option Holder shall have any rights as a shareholder with respect to any shares of Stock
covered by an Option until the Option Holder becomes the holder of record of such Stock, and no adjustments shall be made for dividends or other distributions or other rights as to which there is a
record date preceding the date such Option Holder becomes the holder of record of such Stock, except as provided in Article IV. 

11

 
 
 

ARTICLE VIII
  
    RESTRICTED STOCK AWARDS    
    

        8.1   Grant of Restricted Stock Awards. Coincident with or following designation for participation in the Plan, the Committee
may grant a Participant one or more Restricted Stock Awards consisting of Shares of Stock. The number of Shares granted as a Restricted Stock Award shall be determined by the Committee. 

        8.2   Restrictions. A Participant's right to retain a Restricted Stock Award granted to him under Section 8.1 shall be
subject to such restrictions, including but not limited to his continuous employment by or performance of services for the Company for a restriction period specified by the Committee or the attainment
of specified performance goals and objectives, as may be established by the Committee with respect to such Award. The Committee may in its sole discretion require different periods of service or
different performance goals and objectives with respect to different Participants, to different Restricted Stock Awards or to separate, designated portions of the Shares constituting a Restricted
Stock Award. In the event of the death or Disability of a Participant, or the retirement of a Participant in accordance with the Company's established retirement policy, all required periods of
service and other restrictions applicable to Restricted Stock Awards then held by him shall lapse with respect to a pro rata part of each such Award
based on the ratio between the number of full months of employment or services completed at the time of termination of services from the grant of each Award to the total number of months of employment
or continued services required for such Award to be fully nonforfeitable, and such portion of each such Award shall become fully nonforfeitable. The remaining portion of each such Award shall be
forfeited and shall be immediately returned to Qwest. If a Participant's employment or consulting services terminate for any other reason, any Restricted Stock Awards as to which the period for which
services are required or other restrictions have not been satisfied (or waived or accelerated as provided herein) shall be forfeited, and all shares of Stock related thereto shall be immediately
returned to Qwest. 

        8.3   Privileges of a Stockholder, Transferability. A Participant shall have all voting, dividend, liquidation and other rights
with respect to Stock in accordance with its terms received by him as a Restricted Stock Award under this Article VIII upon his becoming the holder of record of such Stock; provided, however,
that the Participant's right to sell, encumber, or otherwise transfer such Stock shall be subject to the limitations of Section 13.2. 

        8.4   Enforcement of Restrictions. The Committee shall cause a legend to be placed on the Stock certificates issued pursuant to
each Restricted Stock Award referring to the restrictions provided by Sections 8.2 and 8.3 and, in addition, may in its sole discretion require one or more of the following methods of enforcing the
restrictions referred to in Sections 8.2 and 8.3: 

        (a)   Requiring
the Participant to keep the Stock certificates, duly endorsed, in the custody of Qwest while the restrictions remain in effect; or 

        (b)   Requiring
that the Stock certificates, duly endorsed, be held in the custody of a third party while the restrictions remain in effect. 

 
 

ARTICLE IX
  
    STOCK UNITS    
    

        A Participant may be granted a number of Stock Units determined by the Committee. The number of Stock Units, the goals and objectives to be satisfied with respect
to each grant of Stock Units, the time and manner of payment for each Stock Unit, and the other terms and conditions applicable to a grant of Stock Units shall be determined by the Committee. 

12

 

 
 

ARTICLE X
  
    STOCK APPRECIATION RIGHTS    
    

        10.1 Persons Eligible. The Committee, in its sole discretion, may grant Stock Appreciation Rights to Eligible Employees or
Eligible Consultants. 

        10.2 Terms of Grant. The Committee shall determine at the time of the grant of a Stock Appreciation Right the time period
during which the Stock Appreciation Right may be exercised and any other terms that shall apply to the Stock Appreciation Right. 

        10.3 Exercise. A Stock Appreciation Right shall entitle a Participant to receive a number of shares of Stock (without any
payment to Qwest, except for applicable withholding taxes), cash, or Stock and cash, as determined by the Committee in accordance with Section 10.4 below. If a Stock Appreciation Right is
issued in tandem with an Option, except as may otherwise be provided by the Committee, the Stock Appreciation Right shall be exercisable during the period that its related Option is exercisable. A
Participant desiring to exercise a Stock Appreciation Right shall give written notice of such exercise to Qwest, which notice shall state the proportion of Stock and cash that the Participant desires
to receive pursuant to the Stock Appreciation Right exercised. Upon receipt of the notice from the Participant, Qwest shall deliver to the person entitled thereto (i) a certificate or
certificates for Stock and/or (ii) a cash payment, in accordance with Section 10.4 below. The date Qwest receives written notice of such exercise hereunder is referred to in this
Article X as the "exercise date". The delivery of Stock or cash received pursuant to such exercise shall take place at the principal offices of Qwest within 30 days following delivery of
such notice. 

        10.4 Number of Shares or Amount of Cash. Subject to the discretion of the Committee to substitute cash for Stock, or Stock
for cash, the number of Shares that may be issued pursuant to the exercise of a Stock Appreciation Right shall be determined by dividing: (a) the total number of Shares of Stock as to which the
Stock Appreciation Right is exercised, multiplied by the amount by which the Fair Market Value of one share of Stock on the exercise date exceeds the Fair Market Value of one Share of Stock on the
date of grant of one Share of Stock Appreciation Right, by (b) the Fair Market Value of one Share of Stock on the exercise date; provided, however, that fractional shares shall not be issued
and in lieu thereof, a cash adjustment shall be paid. In lieu of issuing Stock upon the exercise of a Stock Appreciation Right, the Committee in its sole discretion may elect to pay the cash
equivalent of the Fair Market Value of the Stock on the exercise date for any or all of the Shares of Stock that would otherwise be issuable upon exercise of the Stock Appreciation Right. 

        10.5 Effect of Exercise. If a Stock Appreciation Right is issued in tandem with an Option, the exercise of the Stock
Appreciation Right or the related Option will result in an equal reduction in the number of corresponding Options or Stock Appreciation Rights that were granted in tandem with such Stock Appreciation
Rights and Options. 

        10.6 Termination of Services. Upon the termination of the services of a Participant, any Stock Appreciation Rights then held
by such Participant shall be exercisable within the time periods, and upon the same conditions with respect to the reasons for termination of services, as are specified in Section 7.2(d) with
respect to Options. 

 
 

ARTICLE XI
  
    STOCK BONUSES    
    

        The Committee may award Stock Bonuses to such Participants, subject to such conditions and restrictions, as it determines in its sole discretion. Stock Bonuses
may be either outright grants of Stock, or may be grants of Stock subject to and conditioned upon certain employment or performance related goals. 

13

  

 
 

ARTICLE XII
  
    OTHER COMMON STOCK GRANTS    
    

        From time to time during the duration of this Plan, the Board may, in its sole discretion, adopt one or more incentive compensation arrangements for Participants
pursuant to which the Participants may acquire shares of Stock, whether by purchase, outright grant, or otherwise. Any such arrangements shall be subject to the general provisions of this Plan and all
shares of Stock issued pursuant to such arrangements shall be issued under this Plan. 

 
 

ARTICLE XIII
  
    RIGHTS OF PARTICIPANTS    
    

        13.1 Service. Nothing contained in the Plan or in any Option, or other Award granted under the Plan shall confer upon any
Participant any right with respect to the continuation of his employment by, or consulting relationship with, the Company, or interfere in any way with the right of the Company, subject to the terms
of any separate employment agreement or other contract to the contrary, at any time to terminate such services or to increase or decrease the compensation of the Participant from the rate in existence
at the time of the grant of an Award. Whether an authorized leave of absence, or absence in military or government service, shall constitute a termination of service shall be determined by the
Committee at the time. 

        13.2 Nontransferability. Except as provided otherwise at the time of grant or thereafter, no right or interest of any
Participant in an Option, a Stock Appreciation Right, a Restricted Stock Award (prior to the completion of the restriction period applicable thereto), a Stock Unit, or other Award granted pursuant to
the Plan, shall be assignable or transferable during the lifetime of the Participant, either voluntarily or involuntarily, or subjected to any lien, directly or indirectly, by operation of law, or
otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. In the event of a Participant's death, a Participant's rights and interests in Options, Stock Appreciation Rights,
Restricted Stock Awards, other Awards, and Stock Units shall, to the extent provided in Articles VII, VIII, IX, X and XI, be transferable by will or the laws of descent and distribution, and payment
of any amounts due under the Plan shall be made to, and exercise of any Options may be made by, the Participant's legal representatives, heirs or legatees. Notwithstanding the foregoing, the Option
Holder may not transfer an Incentive Option during the Option Holder's lifetime. If in the opinion of the Committee a person entitled to payments or to exercise rights with respect to the Plan is
disabled from caring for his affairs because of mental condition, physical condition or age, payment due such person may be made to, and such rights shall be exercised by, such person's guardian,
conservator or other legal personal representative upon furnishing the Committee with evidence satisfactory to the Committee of such status. 

        13.3 No Plan Funding. Obligations to Participants under the Plan will not be funded, trusteed, insured or secured in any
manner. The Participants under the Plan shall have no security interest in any assets of the Company, and shall be only general creditors of the Company. 

14

 

 
 

ARTICLE XIV
  
    GENERAL RESTRICTIONS    
    

        14.1 Investment Representations. Qwest may require any person to whom an Option, Stock Appreciation Right, Restricted Stock
Award, Stock Unit, or Stock Bonus is granted, as a condition of exercising such Option or Stock Appreciation Right, or receiving such Restricted Stock Award, Stock Unit, or Stock Bonus, to give
written assurances in substance and form satisfactory to Qwest and its counsel to the effect that such person is acquiring the Stock for his own account for investment and not with any present
intention of selling or otherwise distributing the same, and to such other effects as Qwest deems necessary or appropriate in order to comply with Federal and applicable state securities laws. Legends
evidencing such restrictions may be placed on the Stock certificates. 

        14.2 Compliance with Securities Laws. Each Option, Stock Appreciation Right, Restricted Stock Award, Stock Unit, and Stock
Bonus grant shall be subject to the requirement that, if at any time counsel to Qwest shall determine that the listing, registration or qualification of the shares subject to such Option, Stock
Appreciation Right, Restricted Stock Award, Stock Unit, or Stock Bonus grant upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or
regulatory body, is necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder, such Option, Stock Appreciation Right, Restricted Stock Award, Stock Unit or
Stock Bonus grant may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions
acceptable to the Committee. Nothing herein shall be deemed to require Qwest to apply for or to obtain such listing, registration or qualification. 

        14.3 Changes in Accounting Rules. Except as provided otherwise at the time an Award is granted, notwithstanding any other
provision of the Plan to the contrary, if, during the term of the Plan, any changes in the financial or tax accounting rules applicable to Options, Stock Appreciation Rights, Restricted Stock Awards,
Stock Units or other Awards shall occur which, in the sole judgment of the Committee, may have a material adverse effect on the reported earnings, assets or liabilities of Qwest, the Committee shall
have the right and power to modify as necessary, any then outstanding and unexercised Options, Stock Appreciation Rights, outstanding Restricted Stock Awards, outstanding Stock Units and other
outstanding Awards as to which the applicable services or other restrictions have not been satisfied. 

 
 

ARTICLE XV
  
    OTHER EMPLOYEE BENEFITS    
    

        The amount of any compensation deemed to be received by a Participant as a result of the exercise of an Option or Stock Appreciation Right, the sale of shares
received upon such exercise, the vesting of any Restricted Stock Award, receipt of Stock Bonuses, distributions with respect to Stock Units, or the grant of Stock shall not constitute "earnings" or
"compensation" with respect to which any other employee benefits of such employee are determined, including without limitation benefits under any pension, profit sharing, 401(k), life insurance or
salary continuation plan. 

 
 

ARTICLE XVI
  
    PLAN AMENDMENT, MODIFICATION AND TERMINATION    
    

        The Board may at any time terminate, and from time to time may amend or modify the Plan provided, however, that no amendment or modification may become effective
without approval of the amendment or modification by the shareholders if shareholder approval is required to enable the Plan to satisfy any applicable statutory or regulatory requirements, or if
Qwest, on the advice of counsel, determines that shareholder approval is otherwise necessary or desirable. 

15

 

        No
amendment, modification or termination of the Plan shall in any manner adversely affect any Options, Stock Appreciation Rights, Restricted Stock Awards, Stock Units, Stock Bonuses or
other Award theretofore granted under the Plan, without the consent of the Participant holding such Options, Stock Appreciation Rights, Restricted Stock Awards, Stock Units, Stock Bonuses or other
Awards. 

 
 

ARTICLE XVII
  
    WITHHOLDING    
    

        17.1 Withholding Requirement. Qwest's obligations to deliver shares of Stock upon the exercise of any Option, or Stock
Appreciation Right, the vesting of any Restricted Stock Award, payment with respect to Stock Units, or the grant of Stock shall be subject to the Participant's satisfaction of all applicable federal,
state and local income and other tax withholding requirements. 

        17.2 Withholding With Stock. At the time the Committee grants an Option, Stock Appreciation Right, Restricted Stock Award,
Stock Unit, Stock Bonus, other Award, or Stock or at any time thereafter, it may, in its sole discretion, grant the Participant an election to pay all such amounts of tax withholding, or any part
thereof, by electing (a) to have Qwest withhold from shares otherwise issuable to the Participant, shares of Stock having a value equal to the amount required to be withheld or such lesser
amount as may be elected by the Participant; provided however, that the amount of Stock so withheld shall not exceed the minimum amount required to be withheld under the method of withholding that
results in the smallest amount of withholding, or (b) to transfer to Qwest a number of shares of Stock that were acquired by the Participant more than six months prior to the transfer to Qwest
and that have a value equal to the amount required to be withheld or such lesser amount as may be elected by the Participant. All elections shall be subject to the approval or disapproval of the
Committee. The value of shares of Stock to be withheld shall be based on the Fair Market Value of the Stock on the date that the amount of tax to be withheld is to be determined (the "Tax Date"). Any
such elections by Participants to have shares of Stock withheld for this purpose will be subject to the following restrictions: 

        (a)   All
elections must be made prior to the Tax Date. 

        (b)   All
elections shall be irrevocable. 

        (c)   If
the Participant is an officer or director of Qwest within the meaning of Section 16 of the 1934 Act ("Section 16"), the Participant must satisfy the
requirements of such Section 16 and any applicable Rules thereunder with respect to the use of Stock to satisfy such tax withholding obligation. 

 
 

ARTICLE XVIII
  
    REQUIREMENTS OF LAW    
    

        18.1 Requirements of Law. The issuance of Stock and the payment of cash pursuant to the Plan shall be subject to all
applicable laws, rules and regulations. 

        18.2 Federal Securities Law Requirements. If a Participant is an officer or director of Qwest within the meaning of
Section 16, Awards granted hereunder shall be subject to all conditions required under Rule 16b-3, or any successor rule promulgated under the 1934 Act, to qualify the Award
for any exception from the provisions of Section 16(b) of the 1934 Act available under that Rule. Such conditions shall be set forth in the agreement with the Participant which describes the
Award or other document evidencing or accompanying the Award. 

        18.3 Governing Law. The Plan and all agreements hereunder shall be construed in accordance with and governed by the laws of
the State of Delaware. 

16

 
 
 

ARTICLE XIX
  
    DURATION OF THE PLAN    
    

        Unless sooner terminated by the Board of Directors, the Plan shall terminate at the close of business on June 22, 2007, and no Option, Stock Appreciation
Right, Restricted Stock Award, Stock Unit, Stock Bonus, other Award or Stock shall be granted, or offer to purchase Stock made, after such termination. Options, Stock Appreciation Rights, Restricted
Stock Awards, other Awards, and Stock Units outstanding at the time of the Plan termination may continue to be exercised, or become free of restrictions, or paid, in accordance with their terms. 

Dated:
October 4, 2000 

	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.,

a Delaware corporation
	

 	
 	

By:	

/s/ Drake S. Tempest

Executive Vice President, General Counsel, and Chief

Administrative Officer

17

  

 
 

FORM OF
  NON-QUALIFIED STOCK OPTION AGREEMENT    
    

This
Option Agreement (the "Agreement") is made as of the            day
of                        , 200X, between Qwest Communications International Inc., a Delaware Corporation (the "Company"),
and                        (the "Optionee"). 

WHEREAS,
pursuant to the Qwest Communications International Inc. Equity Incentive Plan (the "Plan"), the Company desires to afford the Optionee the opportunity to purchase shares of Company
Common Stock, par value $.01 per share (the "Common Shares"). 

NOW,
THEREFORE, in connection with the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
hereto agree as follows: 

1.     DEFINITIONS: CONFLICTS.  

Capitalized
terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a
conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and provisions of the Plan shall govern and control. In the event of a
conflict or inconsistency between the terms and conditions of this Agreement and any agreement between Optionee and U S WEST, Inc. and/or its subsidiaries, the terms and conditions of this
Agreement shall govern and control. In the event of a conflict or inconsistency between the terms and conditions of this Agreement and any employment agreement between Company and Optionee (other than
an agreement between the Optionee and U S WEST, Inc. and/or its subsidiaries), such employment agreement shall govern. 

2.     GRANT OF OPTIONS.  

The
Company hereby grants to the Optionee the right and option (the "Option" or "Options") to purchase up to, but not exceeding in the aggregate,
                        Common Shares, on the terms and
conditions herein set forth. 

3.     PURCHASE PRICE.  

The
purchase price of each Common Share covered by the Option shall be $            (the "Purchase Price"). 

4.     TERM OF OPTIONS.  

The
term of the Option shall be ten (10) years from the date hereof, subject to earlier termination as provided in Sections 6 and 8 hereof. 

5.     VESTING OF OPTIONS.  

The
Option, subject to the terms, conditions and limitations contained herein, shall vest and become exercisable with respect to the Common Shares in installments of    % one year from the
date hereof and in additional installments of    % on each subsequent anniversary thereafter; provided that with respect to each such installment, the Optionee has remained in continuous
employment with the Company from the date hereof through the date such installment is designated to vest. 

Notwithstanding
the vesting schedule set forth above, the Options will vest and become immediately exercisable in the event of the Optionee's death or Disability and under the circumstances described
in Section 7 below. 

1

 

6.     TERMINATION OF EMPLOYMENT.  

	(a)
	Termination of Employment for Reasons other than Death, Disability, Retirement or Cause. In the event the Optionee's employment with
the Company terminates for reasons other than Optionee's death, Disability, Retirement or Cause, the Option shall remain exercisable for a period of up to three months after Optionee's termination of
employment (but not beyond the term of the Option), to the extent vested and exercisable at the time of Optionee's termination of employment.

	(b)
	Termination of Employment Because Optionee Dies, Becomes Disabled or Retires. In the event Optionee's employment with the Company
terminates because Optionee dies, becomes Disabled or Retires, the Option shall remain exercisable for two years after Optionee's termination of employment (but not beyond the term of the Option), to
the extent vested and exercisable at the time Optionee's employment terminated. For purposes of this Agreement, the terms "Disabled" and "Disability" shall mean that, at the time of Optionee's
termination of employment, Optionee is eligible for disability benefits under the Qwest Disability Plan or the Modified Disability Pension Program under the Qwest Pension Plan or any successor
program, as such programs may be amended from time to time. For purposes of this Agreement, the terms "Retire" and "Retirement" shall meant that, at the time of Optionee's termination of employment,
Optionee has one of the following age and service combinations: 

	Retirement Age
 
	 	Term of Employment

	Any Age	 	at least 30 years
	50-54	 	at least 25 years
	55-59	 	at least 20 years
	60-64	 	at least 15 years
	65 and older	 	at least 10 years

	(c)
	Termination of Employment for Cause. In the event Optionee's employment with the Company is terminated by the Company for Cause, the
Option shall be forfeited as of the date of such termination, whether or not otherwise vested or exercisable on such date. For purposes of this Agreement, any one or more of the following events shall
constitute "Cause" (i) willful misconduct or unlawful misconduct that results in injury to Qwest; (ii) conviction of (or pleading nolo contendere to) (a) any misdemeanor involving
moral turpitude or fraudulent conduct or (b) any felony; (iii) willful failure to perform Optionee's duties; or (iv) willful violation of the Qwest Code of Conduct or other Qwest
policies resulting in injury to Qwest, each as determined in the sole and absolute discretion of Qwest.

	(d)
	Unvested Options Forfeited Upon Termination of Employment. Any portion of the Option that has not vested as of the date Optionee's
employment terminates shall be forfeited immediately upon termination of Optionee's employment with the Company, unless such termination occurs because Optionee dies or becomes Disabled. 

7.     CHANGE OF CONTROL.  

In
the event there is a both a Change in Control, and a subsequent termination of Optionee's employment by the Company for a reason other than Cause in a two-year period after the date of
such Change of Control, the Option shall vest in full and become immediately exercisable on the date of such termination, and shall remain vested and exercisable during the remaining term thereof. 

2

 

8.     FORFEITURE OF OPTION.  

	(a)
	Performance for Competitors. Notwithstanding any other provision of this Agreement, Optionee shall immediately forfeit all rights under
the Option, if, during the one-year period beginning on the date of Optionee's termination of employment, Optionee is employed by, advises, represents or assists in any other way any
person or entity that competes with, or intends to compete with the Company or any other Qwest entity with respect to any product sold or service performed by the Company or any other Qwest entity in
any state or country in which the Company or any other Qwest entity sells such products or performs such services, and if the Committee, in its sole discretion, determines that such actions by
Optionee are detrimental to the Company. Notwithstanding the foregoing, if Optionee is an attorney, Optionee may, subject to the applicable rules of ethics and the nondisclosure provisions herein,
perform services solely in his or her capacity as an outside attorney on behalf of any person or entity, even if such person or entity competes with Qwest or sells goods or services similar to those
Qwest sells.

	(b)
	Non-solicitation of Employees. Notwithstanding any other provision of this Agreement, Optionee shall immediately forfeit
all rights under the Option, if, during the one-year period beginning on the date of Optionee's termination or employment, Optionee induces any employee of Qwest to leave Qwest's
employment, and if the Committee, in its sole discretion, determines that such actions by Optionee are detrimental to the Company.

	(c)
	Nondisclosure. Optionee will not disclose outside of the Company or to any person within the Company who does not have a legitimate
business need to know, any Confidential Information (as defined below) during Optionee's employment with the Company. Optionee will not disclose to anyone or make any use of any Confidential
Information of the Company after Optionee's employment with the Company ends for any reason, except as required by law after timely notice is given by Optionee to the Company. This agreement not to
disclose or use Confidential Information means, among other things, that Optionee, for a period of two years beginning on the effective date of the termination of Optionee's employment with the
Company or any other Qwest entity for any reason, may not take or perform a job whose responsibilities would likely lead Optionee to disclose or use Confidential Information. Optionee acknowledges and
agrees that the assumption and performance of such responsibilities, in that situation, would likely result in the disclosure or use of Confidential Information and would likely result in irreparable
injury to the Company. Moreover, during Optionee's employment with the Company, Optionee shall not disclose or use for the benefit of the Company, himself or any other person or entity any
confidential or trade secret information belonging to any former employer or other person or entity to which Optionee owes a duty of confidence or nondisclosure of such information. If a court
determines that this provision is too broad, Optionee and Company agree that the court shall modify the provision to the extent (but not more than is) necessary to make the provision enforceable.
"Confidential Information" is any oral or written information not generally known outside of the Company, including without limitation, trade secrets, intellectual property, software and
documentation, customer information (including, without limitation, customer lists), company policies, practices and codes of conduct, internal analyses, analyses of competitive products, strategies,
merger and acquisition plans, marketing plans, corporate financial information, information related to negotiations with third parties, information protected by the Company's privileges (such as the
attorney-client privilege), internal audit reports, contracts and sales proposals, training materials, employment and personnel records, performance evaluations, and other sensitive information. This
agreement does not relieve Optionee of any obligations Optionee has to the Company under law. If Optionee fails to comply with the provisions of this paragraph, Optionee shall immediately forfeit all
rights under the Option. Nothing in this paragraph shall prevent or limit Optionee's ability to provide truthful responses to legitimate inquiries from governmental agencies. 

3

 
	(d)
	Post-termination finding of Cause. Notwithstanding any other provision of this Agreement, Optionee shall immediately
forfeit all rights under the Option and shall repay to Company all proceeds from the exercise of this Option occurring after Optionee's termination of employment, if, within the one-year
period beginning on Optionee's termination date, the Committee determines that Optionee, while employed by Company, engaged in conduct constituting Cause. This provision shall not be effective after a
Change in Control. 

9.     TRANSFERABILITY OF OPTION.  

Except
to the extent permitted by the Committee in accordance with the provisions of the Plan, the Optionee may not voluntarily or involuntarily pledge, hypothecate, assign, sell or otherwise transfer
the Option except by will or the laws of descent and distribution, and during the Optionee's lifetime, the Option shall be exercisable only by the Optionee. 

10.   NO RIGHTS AS A SHAREHOLDER.  

The
Optionee shall have no rights as a shareholder with respect to any Common Shares until the date of issuance to the Optionee of a certificate evidencing such Common Shares. No adjustments, other
than as provided in Article IV of the Plan, shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions for which the record date is
prior to the date the certificate for such Common Shares is issued. 

11.   REGISTRATION: GOVERNMENTAL APPROVAL.  

The
Option granted hereunder is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration, or qualifications of Common Shares issuable
upon exercise of the Option is required by any securities exchange or under any state or Federal law, rule or regulation, or the consent or approval of any governmental regulatory body or other person
is necessary or desirable as a condition of, or in connection with, the issuance of Common Shares, no Common Shares shall be issued, in whole or in part, unless such listing, registration,
qualification, consent or approval has been effected or obtained free of any conditions or with such conditions as are acceptable to the Committee. 

12.   METHOD OF EXERCISING OPTION.  

Subject
to the terms and conditions of this Agreement, the Option may be exercised by contacting the stock broker designated by the Company from time to time and following such broker's instructions.
Alternatively, if Optionee wishes to use his or her personal stock broker, Optionee may provide written notice to the Company, Attention: Manager, Stock Administration. Such notice shall state the
election to exercise the Option and the number of Common Shares in respect of which the Option is being exercised, shall be signed by the person or persons so exercising the Option and shall be
accompanied by payment in full of the Purchase Price for such Common shares. 

4

 

Payment
of such Purchase Price shall be made in United States dollars by certified check or bank cashier's check payable to the order of the Company or by wire transfer to such account as may be
specified by the Company for this purpose. Subject to such procedures and rules as may be adopted from time to time by the Committee, the Optionee may also pay such Purchase Price by
(i) tendering to the Company Common Shares with an aggregate Fair Market Value on the date of exercise equal to such Purchase Price provided that such Common Shares must have been held by the
Optionee for more than six (6) months, (ii) delivery to the Company of a copy of irrevocable instructions to a stockbroker to sell Common Shares or to authorize a loan from the
stockbroker to the Optionee and to deliver promptly to the Company an amount sufficient to pay such Purchase Price, or (iii) any combination of the methods of payment described in clauses
(i) and (ii) and in the preceding sentence. The certificate for Common Shares as to which the Option shall have been so exercised shall be registered in the name of the person or persons
so exercising the Option. All Common Shares purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 

13.   INCOME TAX WITHHOLDING.  

The
Company may make such provisions and take such steps as it may deem reasonably necessary or appropriate for the withholding of all federal, state, local and other taxes required by law to be
withheld with respect to the exercise of the Option and the issuance of the Common Shares, including, but not limited to, deducting the amount of any such withholding taxes from any other amount then
or thereafter payable to the Optionee, or requiring the Optionee, or the beneficiary or legal representative of the Optionee, to pay to the Company the amount required to be withheld or to execute
such documents as the Company deems necessary or desirable to enable it to satisfy its withholding obligations. 

14.   COMMITTEE DISCRETION.  

Any
decision, interpretation or other action made or taken in good faith by the Committee arising out of or in connection with this Agreement, the Plan or the Option shall be final, binding and
conclusive on the Company, Optionee and any respective heir, executor, administrator, successor or assign. 

15.   NON-QUALIFIED STOCK OPTION.  

The
Option granted hereunder is not intended to be an "incentive stock option" within the meaning of Section 422 of the Code. 

16.   WAIVER OF RIGHT TO JURY.  

By
signing this Agreement, Optionee voluntarily, knowingly and intelligently waives any right he or she may have to a jury trial for all claims relating to this Agreement and any other claim relating
to Optionee's employment with Company. The Company also hereby voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims relating to this
Agreement and any other claim relating to Optionee's employment with the Company. 

17.   GOVERNING LAW.  

This
Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the conflict of laws provisions of any state. Any action to enforce this
Agreement shall be brought in Colorado state or federal district court and the parties waive any objection to the jurisdiction or venue of such courts. 

18.   HEADINGS.  

Headings
are for the convenience of the parties and are not deemed to be part of this Agreement. 

5

 

19.   EXECUTION.  

This
Agreement is voidable by the Company if the Optionee does not execute the Agreement within 30 days of execution by the Company. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first written above. 

	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.
	

 	
 	

By:	

  

	

 	
 	

OPTIONEE:
	

 	
 	

  

6

  

For Non-Employee Directors  

  
  FORM OF
  NON-QUALIFIED STOCK OPTION AGREEMENT    
    

This
Option Agreement (the "Agreement") is made as of                        , between
Qwest Communications International Inc., a Delaware Corporation
(the "Company"), and                        (the "Optionee"). 

WHEREAS,
pursuant to the Qwest Communications International Inc. Equity Incentive Plan, the Company desires to afford the Optionee the opportunity to purchase shares of Common Stock, par value
$.01 per share (the "Common Shares"), of the Company. 

NOW,
THEREFORE, in connection with the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
hereto agree as follows: 

1.     DEFINITIONS: CONFLICTS.  

Capitalized
terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a
conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and provisions of the Plan shall govern and control. 

2.     GRANT OF OPTIONS.  

The
Company hereby grants to the Optionee the right and option (the "Option" or "Options") to purchase up to, but not exceeding in the aggregate,
                        Common Shares, on the terms and
conditions herein set forth. 

3.     PURCHASE PRICE.  

The
purchase price of each Common Share covered by the Option shall be $             (the "Purchase Price"). 

4.     TERM OF OPTIONS.  

The
term of the Option shall be ten (10) years from the date hereof, subject to earlier termination as provided in Sections 6 and 7 hereof. 

5.     VESTING OF OPTIONS.  

The
Option, subject to the terms, conditions and limitations contained herein, shall vest and become exercisable with respect to the Common Shares in installments of 25% one year from the date hereof
and in additional installments of 25% on each subsequent anniversary thereafter; provided that, with respect to each such installment, the Optionee has continuously remained a member of the Board of
Directors of the Company (the "Directorship") from the date hereof through the date such installment is designated to vest. 

Notwithstanding
the vesting schedule set forth above, the Options will vest and become immediately exercisable in the event of the Optionee's death or Disability and under the circumstances described
in Section 7 below. 

1

 

[**Notwithstanding
anything to the contrary in any other agreement, plan or other document, the Optionee agrees that no provision in any severance, separation, change of control,
retention, employment or other plan or agreement between the Optionee and any of U S WEST, Inc. and its subsidiaries or of which the Optionee was a beneficiary shall affect the terms of the
Option granted hereunder.**] NOTE: THIS PROVISION ONLY APPLIES TO THE FORMER U S WEST DIRECTORS. 

6.     TERMINATION OF DIRECTORSHIP.  

	(a)
	Except
as set forth in the Plan, in the event the Optionee's Directorship is terminated for reasons other than due to death, Disability, or cause, the Option shall remain exercisable
for a period of up to three months after such termination, to the extent exercisable at the time of such termination. In the event the Optionee's Directorship terminates by reason of death or
Disability, the Option shall vest in full in accordance with Section 5 and shall remain exercisable for a period of up to twenty-four (24) months after such termination. In
the event the Optionee's Directorship is terminated for cause, the Option shall immediately lapse as of the date of such termination whether or not exercisable on such date. Upon any termination of
the Optionee's Directorship, the Option shall lapse as to any Common Shares for which it has yet to become exercisable as of the date of such termination.

	(b)
	For
purposes of this Agreement, "cause" shall have the meaning set forth in the Company's bylaws as in effect from time to time. 

7.     CHANGE OF CONTROL  

	(a)
	For
purposes of this Agreement, "change in control" shall have the meaning set forth in the Plan.

	(b)
	In
the event there is a change in control, the Option shall vest in full and become immediately exercisable on the date of such change of control, and shall remain vested and
exercisable during the remaining term thereof. 

8.     TRANSFERABILITY OF OPTION.  

Except
to the extent permitted by the Committee in accordance with the provisions of the Plan, the Optionee may not voluntarily or involuntarily pledge, hypothecate, assign, sell or otherwise transfer
the Option except by will or the laws of descent and distribution, and during the Optionee's lifetime, the Option shall be exercisable only by the Optionee. 

9.     NO RIGHTS AS A SHAREHOLDER.  

The
Optionee shall have no rights as a shareholder with respect to any Common Shares until the date of issuance to the Optionee of a certificate evidencing such Common Shares. No adjustments, other
than as provided in Article IV of the Plan, shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions for which the record date is
prior to the date the certificate for such Common Shares is issued. 

2

 

10.   REGISTRATION: GOVERNMENTAL APPROVAL.  

The
Option granted hereunder is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration, or qualifications of Common Shares issuable
upon exercise of the Option is required by any securities exchange or under any state or Federal law, rule or regulation, or the consent or approval of any governmental regulatory body or other person
is necessary or desirable as a condition of, or in connection with, the issuance of Common Shares, no Common Shares shall be issued, in whole or in part, unless such listing, registration,
qualification, consent or approval has been effected or obtained free of any conditions or with such conditions as are acceptable to the Committee. 

11.   METHOD OF EXERCISING OPTION.  

Subject
to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company, Attention: Manager, Stock Administration. Such notice shall state the election to
exercise the Option and the number of Common Shares in respect of which the Option is being exercised, shall be signed by the person or persons so exercising the Option and shall be accompanied by
payment in full of the Purchase Price for such Common shares. 

Payment
of such Purchase Price shall be made in United States dollars by certified check or bank cashier's check payable to the order of the Company or by wire transfer to such account as may be
specified by the Company for this purpose. Subject to such procedures and rules as may be adopted from time to time by the Committee, the Optionee may also pay such Purchase Price by
(i) tendering to the Company Common Shares with an aggregate Fair Market Value on the date of exercise equal to such Purchase Price provided that such Common Shares must have been held by the
Optionee for more than six (6) months, (ii) delivery to the Company of a copy of irrevocable instructions to a stockbroker to sell Common Shares or to authorize a loan from the
stockbroker to the Optionee and to deliver promptly to the Company an amount sufficient to pay such Purchase Price, or (iii) any combination of the methods of payment described in clauses
(i) and (ii) and in the preceding sentence. The certificate for Common Shares as to which the Option shall have been so exercised shall be registered in the name of the person or persons
so exercising the Option. All Common Shares purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 

12.   INCOME TAX WITHHOLDING.  

The
Company may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all federal, state, local and other taxes required by law to be withheld with
respect to the exercise of the Option and the issuance of the Common Shares, including, but not limited to, deducting the amount of any such withholding taxes from any other amount then or thereafter
payable to the Optionee, or requiring the Optionee, or the beneficiary or legal representative of the Optionee, to pay to the Company the amount required to be withheld or to execute such documents as
the Company deems necessary or desirable to enable it to satisfy its withholding obligations. 

13.   NON-QUALIFIED STOCK OPTION.  

The
Option granted hereunder is not intended to be an "incentive stock option" within the meaning of Section 422 of the Code. 

14.   BINDING EFFECT.  

This
Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 

3

 

15.   GOVERNING LAW.  

This
Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware. 

16.   HEADINGS.  

Headings
are for the convenience of the parties and are not deemed to be part of this Agreement. 

17.   EXECUTION.  

This
Agreement is voidable by the Company if the Optionee does not execute the Agreement within 30 days of execution by the Company. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first written above. 

	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.
	

 	
 	

By:	

  

	

 	
 	

OPTIONEE:
	

 	
 	

  

4

  

Form agreement used prior to 3/2003  

  
  FORM OF
  NON-QUALIFIED STOCK OPTION AGREEMENT    
    

This
Option Agreement (the "Agreement") is made as of the            day
of                        , 200            , between Qwest
Communications International Inc., a Delaware Corporation
(the "Company"), and (the "Optionee"). 

WHEREAS,
pursuant to the Qwest Communications International Inc. Equity Incentive Plan, the Company desires to afford the Optionee the opportunity to purchase shares of Common Stock, par value
$.01 per share (the "Common Shares"), of the Company. 

NOW,
THEREFORE, in connection with the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
hereto agree as follows: 

1.     DEFINITIONS: CONFLICTS.  

Capitalized
terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are incorporated herein by reference. In the event of a
conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and provisions of the Plan shall govern and control. 

2.     GRANT OF OPTIONS.  

The
Company hereby grants to the Optionee the right and option (the "Option" or "Options") to purchase up to, but not exceeding in the aggregate,
                        Common Shares, on the terms and
conditions herein set forth. 

3.     PURCHASE PRICE.  

The
purchase price of each Common Share covered by the Option shall be $            (the "Purchase Price"). 

4.     TERM OF OPTIONS.  

The
term of the Option shall be ten (10) years from the date hereof, subject to earlier termination as provided in Sections 6 and 8 hereof. 

5.     VESTING OF OPTIONS.  

The
Option, subject to the terms, conditions and limitations contained herein, shall vest and become exercisable with respect to the Common Shares in installments of    % one year from the
date hereof and in additional installments of    % on each subsequent anniversary thereafter; provided that, with respect to each such installment, the Optionee has remained in continuous
employment with the Company from the date hereof through the date such installment is designated to vest. 

Notwithstanding
the vesting schedule set forth above, the Options will vest and become immediately exercisable in the event of the Optionee's death or Disability and under the circumstances described
in Section 7 below. 

[Notwithstanding
anything to the contrary in any other agreement, plan or other document, the Optionee agrees that no provision in any severance, separation, change of control, retention,
employment or other plan or agreement between the Optionee and any of U S WEST, Inc. and its subsidiaries or of which the Optionee was a beneficiary shall affect the terms of the Option granted
hereunder.] 

1

 

6.     TERMINATION OF EMPLOYMENT.  

	(a)
	Except
as set forth in the Plan, in the event the Optionee's employment with the Company is terminated for reasons other than due to death, Disability, or cause, the Option shall
remain exercisable for a period of up to three months after cessation of employment, to the extent exercisable at the time of cessation of employment. In the event the Optionee's employment with the
Company terminates by reason of death or Disability, the Option shall remain exercisable for a period of up to twenty-four (24) months after cessation of employment, to the extent
exercisable at the time of cessation of employment. In the event the Optionee's employment with the Company is terminated by the Company for cause, the Option shall immediately lapse as of the date of
such termination whether or not exercisable on such date. Upon any cessation of the Optionee's employment with the Company, the Option shall lapse as to any Common Shares for which it has yet to
become exercisable as of the date of cessation of employment.

	(b)
	For
purposes of this Agreement, "cause" shall mean willful misconduct, a willful failure to perform the Optionee's duties, insubordination, theft, dishonesty, conviction of a felony
or any other willful conduct that is materially detrimental to the Company or such other cause as the Board of Directors of the Company in good faith reasonably determines provides cause for the
discharge of the Optionee. 

9.     CHANGE OF CONTROL  

	(a)
	For
purposes of this Agreement, "change in control" shall have the meaning set forth in the Plan.

	(b)
	In
the event there is [both a change in control and subsequent termination of the Optionee's employment with the Company (i) by the Company for reasons other than
cause or (ii) by the Optionee because of a material diminution of his duties and responsibilities, in each case following] a change in control, the Option shall vest in full and
become immediately exercisable on the date of such termination, and shall remain vested and exercisable during the remaining term thereof. 

10.   FORFEITURE OF OPTION.  

Notwithstanding
any other provision of this Agreement, if the Optionee engages in any activity in competition with any activity of the Company, or otherwise contrary or harmful to the interests of the
Company, including but not limited to (i) conduct related to the Optionee's employment for which either criminal or civil penalties against the Optionee may be sought, (ii) violation of
Company policies, including without limitation, the Company's insider trading policy, (iii) accepting employment with or serving as a consultant, or advisor or in any other capacity to an
employer that is in competition with or acting against the interests of the Company, including employing or recruiting any present, former or future employee of the Company, (iv) disclosing or
misusing any confidential information or material concerning the Company, or (v) participating in a hostile takeover attempt, then this Option shall become void, shall be forfeited and shall
terminate effective the date on which the Optionee enters into such activity, unless the Option was terminated sooner by operation of another term or condition of this Agreement or the Plan. 

9.     TRANSFERABILITY OF OPTION.  

Except
to the extent permitted by the Committee in accordance with the provisions of the Plan, the Optionee may not voluntarily or involuntarily pledge, hypothecate, assign, sell or otherwise transfer
the Option except by will or the laws of descent and distribution, and during the Optionee's lifetime, the Option shall be exercisable only by the Optionee. 

2

 

10.   NO RIGHTS AS A SHAREHOLDER.  

The
Optionee shall have no rights as a shareholder with respect to any Common Shares until the date of issuance to the Optionee of a certificate evidencing such Common Shares. No adjustments, other
than as provided in Article IV of the Plan, shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions for which the record date is
prior to the date the certificate for such Common Shares is issued. 

11.   REGISTRATION: GOVERNMENTAL APPROVAL.  

The
Option granted hereunder is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration, or qualifications of Common Shares issuable
upon exercise of the Option is required by any securities exchange or under any state or Federal law, rule or regulation, or the consent or approval of any governmental regulatory body or other person
is necessary or desirable as a condition of, or in connection with, the issuance of Common Shares, no Common Shares shall be issued, in whole or in part, unless such listing, registration,
qualification, consent or approval has been effected or obtained free of any conditions or with such conditions as are acceptable to the Committee. 

12.   METHOD OF EXERCISING OPTION.  

Subject
to the terms and conditions of this Agreement, the Option may be exercised by written notice to the Company, Attention: Manager, Stock Administration. Such notice shall state the election to
exercise the Option and the number of Common Shares in respect of which the Option is being exercised, shall be signed by the person or persons so exercising the Option and shall be accompanied by
payment in full of the Purchase Price for such Common shares. 

Payment
of such Purchase Price shall be made in United States dollars by certified check or bank cashier's check payable to the order of the Company or by wire transfer to such account as may be
specified by the Company for this purpose. Subject to such procedures and rules as may be adopted from time to time by the Committee, the Optionee may also pay such Purchase Price by
(i) tendering to the Company Common Shares with an aggregate Fair Market Value on the date of exercise equal to such Purchase Price provided that such Common Shares must have been held by the
Optionee for more than six (6) months, (ii) delivery to the Company of a copy of irrevocable instructions to a stockbroker to sell Common Shares or to authorize a loan from the
stockbroker to the Optionee and to deliver promptly to the Company an amount sufficient to pay such Purchase Price, or (iii) any combination of the methods of payment described in clauses
(i) and (ii) and in the preceding sentence. The certificate for Common Shares as to which the Option shall have been so exercised shall be registered in the name of the person or persons
so exercising the Option. All Common Shares purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 

13.   INCOME TAX WITHHOLDING.  

The
Company may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all federal, state, local and other taxes required by law to be withheld with
respect to the exercise of the Option and the issuance of the Common Shares, including, but not limited to, deducting the amount of any such withholding taxes from any other amount then or thereafter
payable to the Optionee, or requiring the Optionee, or the beneficiary or legal representative of the Optionee, to pay to the Company the amount required to be withheld or to execute such documents as
the Company deems necessary or desirable to enable it to satisfy its withholding obligations. 

3

 

14.   NON-QUALIFIED STOCK OPTION.  

The
Option granted hereunder is not intended to be an "incentive stock option" within the meaning of Section 422 of the Code. 

15.   BINDING EFFECT.  

This
Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 

16.   GOVERNING LAW.  

This
Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware. 

17.   HEADINGS.  

Headings
are for the convenience of the parties and are not deemed to be part of this Agreement. 

18.   EXECUTION.  

This
Agreement is voidable by the Company if the Optionee does not execute the Agreement within 30 days of execution by the Company. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first written above. 

	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.
	

 	
 	

By:	

  

	

 	
 	

OPTIONEE:
	

 	
 	

  

4

 
  FORM OF
  RESTRICTED STOCK AGREEMENT    
    

This
Restricted Stock Agreement ("Agreement") is made as of the            day
of                        , 200            , between Qwest
Communications International Inc., a Delaware
Corporation (the "Company"), and                        (the "Grantee"). 

WHEREAS,
pursuant to the Qwest Communications International Inc. Equity Incentive Plan (the "Plan"), the Company desires to grant shares of Common Stock, par value $0.01 per share, of the
Company to the Grantee subject to the restrictions and on the terms and conditions specified below. 

NOW
THEREFORE, in connection with the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto
agree as follows: 

1.     DEFINITIONS: CONFLICTS.  

Capitalized
terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are incorporated herein by reference. Except as
specifically otherwise provided herein, in the event of a conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and
provisions of the Plan shall govern and control. 

2.     GRANT OF RESTRICTED STOCK.  

The
Company hereby grants to the Grantee             shares (the "Shares") of the Common Stock (the "Restricted Stock"), effective as
of                        (the "Transfer Date"), with a value
of $        per Share on the Transfer Date. After the Grantee becomes the holder of record with respect to the Stock, the Grantee shall be treated as the beneficial owner of the Stock and shall
have the right to receive all amounts, including cash and property of any kind, distributed with respect to the Stock. 

2.     RESTRICTIONS.  

The
Grantee shall not sell, assign, transfer by gift or otherwise, pledge, hypothecate, or otherwise dispose of, by operation of law or otherwise, any of the Shares for the period commencing on the
Transfer Date and ending on the Expiration Date (as defined in Section 3 below), except as otherwise provided in Section 3 or Section 4 or as otherwise permitted by this Agreement
or the terms of the Plan. 

In
any transfer of Shares is made or attempted to be made contrary to the terms of this Agreement, the Company shall have the right to acquire for its own account, without the payment of any
consideration therefor, such Shares from the owner thereof or his transferee, at any time before or after such prohibited transfer. In addition to any other legal or equitable remedies it may have,
the Company may enforce its rights to specific performance to the extent permitted by law and may exercise such other equitable remedies then available to it. The Company may refuse for any purpose to
recognize any transferee who receives Shares contrary to the provisions of this Agreement as a stockholder of the Company and may retain and/or recover all dividends on such Shares that were paid or
payable subsequent to the date on which the prohibited transfer was made or attempted. 

3.     VESTING; LAPSE OF RESTRICTIONS.  

Except
as otherwise provided in this Agreement, the Shares of Restricted Stock shall vest in installments if the Grantee has been employed continuously by the Company from the Transfer Date through
the dates specified in the following schedule: 

	Date
 
	 	Vested

Percentage

	                        	 	 
	                        	 	 
	                        	 	 
	                        	 	 

The
Restricted Stock shall be fully vested and this Agreement shall terminate on the last date set forth in the vesting schedule above (the "Expiration Date"). Shares that have become vested and as to
which the restrictions have lapsed shall be referred to as Vested Shares. Shares that have not become vested and as to which the restrictions have not lapsed shall be referred to as Unvested Shares. 

Notwithstanding
the vesting schedule set forth above, the Unvested Shares will become Vested Shares in the event of the Grantee's death or Disability. 

After
the restrictions have lapsed, the Grantee may sell, assign, transfer by gift or otherwise, hypothecate, or otherwise dispose of, by operation of law or otherwise, any of the Vested Shares at the
Grantee's discretion. 

4.     CHANGE OF CONTROL.  

        (a)   For
purposes of this Agreement, "change in control" shall have the meaning set forth in the Plan. 

        (b)   In
the event there is both a change in control and a subsequent termination by the Company of the Grantee's employment with the Company for reasons other than cause, all
Unvested Shares vest in full and become Vested Shares on the date of such termination. 

        (c)   For
purposes of this Agreement, "cause" shall mean willful misconduct, a willful failure to perform the Grantee's duties, insubordination, theft, dishonesty, conviction
of a felony or any other willful conduct that is materially detrimental to the Company or such other cause as the Board of Directors of the Company in good faith reasonably determines provides cause
for the discharge of the Grantee. 

5.     TERMINATION OF EMPLOYMENT; FORFEITURE OF UNVESTED SHARES.  

In
the event the Grantee's employment with the Company is terminated for any reason other than due to death or Disability, all Unvested Shares shall be forfeited and the Grantee shall immediately
transfer and assign to the Company, without the requirement of consideration, all Unvested Shares, which shall promptly be tendered to the Company by the delivery of certificates, if any, for such
Unvested Shares, duly endorsed in blank by the Grantee or the Grantee's representative or with stock powers attached thereto duly endorsed, at the Company's principal offices, all in form suitable for
the transfer of such Shares to the Company without the payment of any consideration therefor by the Company. After the time at which any such Shares are required to be delivered to the Company for
transfer to the Company, the Company shall not pay any dividend to the Grantee on account of such Shares or permit the Grantee to exercise any of the privileges or rights of a stockholder with respect
to such Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares. 

6.     ADJUSTMENT OF THE SHARES.  

Upon
the occurrence of an event described in Article IV of the Plan, the Shares shall be adjusted in accordance with Article IV. 

7.     FORFEITURE OF UNVESTED SHARES.  

Notwithstanding
any other provision of this Agreement, if the Grantee engages in any activity in competition with any activity of the Company, or otherwise contrary or harmful to the interests of the
Company, including but not limited to (i) conduct related to the Grantee's employment for which either criminal or civil penalties against the Grantee may be sought, (ii) violation of
Company policies, including without limitation, the Company's insider trading policy, (iii) accepting employment with or serving as a consultant, or advisor or in any other capacity to an
employer that is in competition with or acting against the interests of the Company, including employing or recruiting any present, former or future employee of the Company, (iv) disclosing or
misusing any confidential information or material concerning the Company, or (v) participating in a hostile takeover attempt, then this Agreement and all outstanding Unvested Shares shall
become null and void and shall be forfeited and this Agreement and all outstanding Unvested Shares shall terminate effective the date on which the Grantee enters into such activity, unless the
Agreement and outstanding Shares were terminated sooner by operation of another term or condition of this Agreement or the Plan. 

8.     ENFORCEMENT OF RESTRICTIONS.  

If
a certificate or certificates representing Shares is issued, it shall bear the following legend: 

"The
Shares of stock represented by this Certificate are subject to all of the terms of a Restricted Stock Agreement between Qwest Communications International Inc. and the registered owner of
this Certificate (the "Agreement") and to the terms of the Qwest Communications International Inc. Equity Incentive Plan. Copies of the Agreement and the Plan are on file at the office of the
Company. The Agreement, among other things, limits the right of the Owner to transfer the Shares represented hereby and provide in certain circumstances that all or a portion of the Shares must be
returned to the Company." 

The
Company may, in its sole discretion, require the Grantee to keep the certificate, if any, representing the Shares, duly endorsed, in the custody of the Company while the Shares are subject to the
restrictions contained in Section 2. The Company may, in its sole discretion, require that the certificate, if any, representing the Shares, duly endorsed, be held in the custody of a third
party while the Shares are subject to the restrictions contained in Section 2. 

9.     TAX WITHHOLDING.  

Upon
the vesting of any portion of the Shares, the Grantee must make arrangement satisfactory to the Company to make payment to the Company of the amount required to be withheld under applicable
federal, state and local income and other tax laws (collectively, "Withholding Taxes"). The Grantee may elect to pay such Withholding Taxes (a) in cash, (b) by selling a portion of the
Vested Shares, or (c) as permitted by Section 17.2 of the Plan by having the Company withhold from the Vested Shares a number of shares having a value equal to the amount of the minimum
required Withholding Taxes, or such lesser amount as the Grantee may elect. In such case, the value of the Shares to be withheld shall be based on the Fair Market Value (as defined in the Plan) of the
Shares on the date the amount of the Withholding Taxes is determined (the "Tax Date"). The Grantee must make an irrevocable election of the manner of payment of the Withholding Taxes as provided in
Section 17.2 of the Plan. If the Grantee has not made arrangements satisfactory to the Company to pay the Withholding Taxes, the Company shall withhold from the Vested Shares, a number of
Shares having a value equal to the amount required to pay the minimum required Withholding Taxes. The value of the Shares to be withheld shall be calculated in the same manner as noted above. 

10.   BINDING EFFECT.  

This
Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 

11.   GOVERNING LAW.  

This
Agreement shall be governed and interpreted in accordance with the laws of the State of Delaware. 

12.   HEADINGS.  

Headings
are for the convenience of the parties and are not deemed to be part of this Agreement. 

13.   EXECUTION.  

This
Agreement is voidable by the Company if the Grantee does not execute the Agreement within thirty (30) days of execution by the Company. 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth opposite their signatures to be effective as of the date and year first written above. 

	 	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.
	

Date:	

  
	
 	

By:	

  

	

 	

 	
 	
GRANTEE:
	

Date:	

  
	
 	

  

QuickLinks

TABLE OF CONTENTS

QWEST COMMUNICATIONS INTERNATIONAL INC. EQUITY INCENTIVE PLAN

ARTICLE I INTRODUCTION

ARTICLE II DEFINITIONS

ARTICLE III PLAN ADMINISTRATION

ARTICLE IV STOCK SUBJECT TO THE PLAN

ARTICLE V CORPORATE REORGANIZATION; CHANGE IN CONTROL

ARTICLE VI PARTICIPATION

ARTICLE VII OPTIONS

ARTICLE VIII RESTRICTED STOCK AWARDS

ARTICLE IX STOCK UNITS

ARTICLE X STOCK APPRECIATION RIGHTS

ARTICLE XI STOCK BONUSES

ARTICLE XII OTHER COMMON STOCK GRANTS

ARTICLE XIII RIGHTS OF PARTICIPANTS

ARTICLE XIV GENERAL RESTRICTIONS

ARTICLE XV OTHER EMPLOYEE BENEFITS

ARTICLE XVI PLAN AMENDMENT, MODIFICATION AND TERMINATION

ARTICLE XVII WITHHOLDING

ARTICLE XVIII REQUIREMENTS OF LAW

ARTICLE XIX DURATION OF THE PLAN

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

FORM OF RESTRICTED STOCK AGREEMENTQuickLinks
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Exhibit 10.35    
    

 
  SEVERANCE AGREEMENT

        This
Severance Agreement ("Agreement"), which is effective as of July 28, 2003 (the "Effective Date"), is by and between  John W. Richardson ("Executive"),
who is an officer of Qwest Communications International, Inc., a Delaware corporation having its principal
executive offices in Denver, Colorado or one of its subsidiaries or affiliates ("Company") and who is employed by Qwest Services Corporation, a subsidiary of the Company, and Company and any successor
thereto: 

        WHEREAS,
the Company wishes to encourage Executive's continued service and dedication in the performance of Executive's duties; and 

        WHEREAS,
in order to induce Executive to remain in the employ of the Company, and in consideration for Executive's continued service to the Company, the Company agrees that Executive
shall receive the benefits set forth in this Agreement in the event that Executive's employment with the Company is terminated in the circumstances described herein. 

        Therefore,
in consideration of the mutual promises set forth below, Company and Executive hereby agree as follows: 

        1.    TERM OF EMPLOYMENT; AT-WILL EMPLOYMENT.    This Agreement does not contain any promise or
representation concerning the duration of Executive's employment. Executive's employment is at-will, and may be altered or terminated by either Executive or the Company at any time, with
or without cause, and with or without notice. This at-will employment relationship may not be modified unless in a written agreement signed by Executive and either the Chief Executive
Officer or the Chief Human Resources Officer. 

        2.    CHANGE IN CONTROL    

        a.     CHANGE IN CONTROL DEFINED: For purposes of this Agreement, "Change in Control" shall have the definition currently in the
Qwest Equity Incentive Plan ("Stock Plan"). 

        b.     STOCK OPTIONS/EQUITY: The Board of Directors may, in its discretion, periodically grant Executive additional stock options
or other awards under the Stock Plan. Notwithstanding the terms of any stock option agreement to the contrary, pursuant to the Board of Directors' resolution effective September 19, 2002, upon
a Change in Control, all awards granted to Executive after September 19, 2002 under the Stock Plan shall immediately vest and all stock options shall remain exercisable for the full term of
such option. 

        3.    TERMINATION.    

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

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

        (2)   Unlawful
conduct resulting in material injury to Qwest, as determined by the Company in its sole discretion; 

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

 

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

        (5)   Willful
violation of the Qwest Code of Conduct or other Qwest policies resulting in injury to Qwest, as determined by the Company in its sole discretion. 

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

        b.     Severance Payments When Termination Not By Executive.

        (1)   Termination without Cause by Company. The parties agree that the Company may terminate Executive's employment without
Cause. Except under circumstances described in subparagraph 3.b.(2) below, if Company terminates Executive's employment without Cause, and Executive signs a complete waiver and release of claims
against Qwest acceptable to Company in the form attached hereto as Attachment A ("Waiver"), then Company shall pay Executive the "Standard Severance Amount" defined below. The Waiver includes, among
other terms, a provision requiring Executive to pay back to Qwest any severance received by Executive if after the payments are made it is determined that, while employed by Qwest or any Qwest entity,
Executive engaged in conduct constituting Cause. The Waiver does not include a release of Qwest's obligations, if any, to indemnify Executive under Qwest bylaws or applicable state law. The Standard
Severance Amount will equal Executive's highest annual base salary during the 12 months preceding the termination of Executive's employment. The Standard Severance Amount will be paid over a
12-month period through the Company's regular management payroll processes. If, at the end of the 12-month period, Executive has not breached or threatened to breach any part
of this Agreement, Executive will also receive a lump-sum payment equal to Executive's highest target bonus percentage or sales incentive in effect during the 12 months preceding
the termination of Executive's employment, prorated for the portion of the bonus payment measurement period in which Executive was employed before the termination of Executive's employment, minus any
applicable or legally-required withholdings. 

        (2)   Change in Control Termination. If Company (with the required approval of the Board of Directors) terminates Executive's
employment without Cause within two years following a Change in Control, then, provided Executive signs a Waiver, as described in subparagraph 3.b.(1) above, Company shall pay Executive the Change in
Control Severance Amount defined in the following sentence: The Change in Control Severance Amount payable to Executive will equal (a) (i) two times Executive's annual base salary in effect at
the time of the termination of Executive's employment, or, if greater, Executive's annual base salary in effect at the time of the Change in Control, plus (ii) two times Executive's target
annual bonus or annual sales incentive in effect at the time of the termination of Executive's employment, or, if greater, Executive's target annual bonus in effect at the time of the Change in
Control plus (b) a pro rata bonus or sales incentive payment for the portion of the bonus payment measurement period in which Executive was employed before the termination of Executive's
employment, calculated using individual, business unit and company performance at 100% of target. The Change in Control Severance amount will be paid in a lump sum within 30 days of receiving
the signed Waiver. 

2

 

        c.     Change in Control Termination for Good Reason. Executive may terminate his or her employment for Good Reason after giving
written notice to the Company within sixty (60) days after an event constituting Good Reason, (as defined in subparagraph 3.c.(1) below). If Executive terminates Executive's employment for Good
Reason within two years following a Change in Control, then, provided Executive signs a Waiver (as defined in subparagraph 3.b.(1) above), Company shall pay Executive the Change in Control Severance
Amount, as described in subparagraph 3.b.(2) above in a lump sum within 30 days of receiving the signed Waiver. 

        (1)   Termination for Good Reason Following a Change in Control. For purposes of this subparagraph 3.c., Good Reason
shall mean: 

	(A)
	a
reduction of either base salary or Executive's target annual bonus, where the salary or annual target bonus are measured immediately prior to such reduction, as opposed to at the
time of Executive's execution of this Agreement;

	(B)
	a
material reduction of Executive's responsibilities, where such responsibilities are measured immediately prior to such reduction, as opposed to at the time of Executive's execution
of this Agreement;

	(C)
	Company's
material breach of this Agreement;

	(D)
	Company's
failure to obtain the agreement of any successor to honor the terms of this Agreement; or

	(E)
	A
requirement that Executive's primary work location be moved to a location that is greater than thirty-five straight line miles from Executive's primary work location
immediately prior to the imposition of such requirement. 

"Good
Reason" shall not include any other circumstances, including but not limited to, Executive's discharge for Cause, Executive's resignation or retirement (other than in the circumstances set forth
in (A)-(E) above), or any leave of absence. 

        d.     COBRA Coverage. If Executive's employment is terminated pursuant to subparagraph 3.b. above, Executive may be eligible for
Qwest-subsidized COBRA for a period of 12 months (unless Executive becomes ineligible for or forfeits severance benefits pursuant to the terms of this Agreement) following the Executive's
election of COBRA health care continuation coverage (generally beginning as of the first day of the first month following the month in which Executive is designated as terminated on the Qwest payroll
system) on the same basis as for active employees under the group medical plan. If Executive's employment is terminated pursuant to subparagraph 3.c. above, then the 12 months in the
previous sentence shall be increased to 18 months. Executive may continue coverage under COBRA for any period remaining under Internal Revenue Code Section 4980B after the subsidized
period is exhausted by paying the full coverage premium(s) set forth in the Executive's COBRA billing statements. This provision shall not extend the period for which any Executive is eligible for
COBRA continuation coverage. 

        4.     OFFSET. To the extent permitted by law, any severance benefits received under this Agreement may be reduced by the
amount(s) of any outstanding monetary debts Executive owes to Qwest. Such debts will be treated as satisfied to the extent of the withheld payments. 

        It
is the express intent of Qwest that the monies received under this Agreement be a set-off against amounts to which you are entitled under any applicable state unemployment
statute. 

3

 

        5.     NONDISCLOSURE. Executive will not disclose outside of Qwest or to any person within Qwest who does not have a legitimate
business need to know, any Confidential Information (as defined below) during Executive's employment with the Company or any other Qwest entity. Executive will not disclose to anyone or make any use
of any Confidential Information of Qwest after Executive's employment with Qwest ends for any reason, except as required by law after timely notice is given by Executive to Qwest. This agreement not
to disclose or use Confidential Information means, among other things, that Executive, for a period of 12 months beginning on the effective date of the termination of Executive's employment
with the Company or any other Qwest entity for any reason, may not take or perform a job whose responsibilities would likely lead Executive to disclose or use Confidential Information. Executive
acknowledges and agrees that the assumption and performance of such responsibilities, in that situation, would likely result in the disclosure or use of Confidential Information and would likely
result in irreparable injury to Qwest. Moreover, during Executive's employment with Qwest, Executive shall not disclose or use for the benefit of Qwest, Executive or any other person or entity any
confidential or trade secret information belonging to any former employer or other person or entity to which Executive owes a duty of confidence or nondisclosure of such information. If a court
determines that this provision is too broad, Executive and Company agree that the court shall modify the provision to the extent (but not more than is) necessary to make the provision enforceable.
"Confidential Information" is any oral or written information not generally known outside of Qwest, including without limitation, trade secrets, intellectual property, software and documentation,
customer information (including, without limitation, customer lists), company policies, practices and codes of conduct, internal analyses, analyses of competitive products, strategies, merger and
acquisition plans, marketing plans, corporate financial information, information related to negotiations with third parties, information protected by Qwest's privileges (such as the attorney-client
privilege), internal audit reports, contracts and sales proposals, training materials, employment and personnel records, performance evaluations, and other sensitive information. This agreement does
not relieve Executive of any obligations Executive has to Qwest under law. Nothing in this agreement shall limit, restrict, preclude or influence Executive's testimony in any way or cause Executive
not to provide truthful testimony or information in any manner or in response to any inquiry by a governmental official. 

        6.     NONCOMPETE. In light of Executive's senior level position with Qwest, an international corporation engaged in a highly
competitive business environment, for a period of 12 months beginning on the effective date of the termination of Executive's employment with the Company or any other Qwest entity, regardless
of the reason for the termination and regardless of the party bringing about the termination, Executive agrees not to work for, own more than 2% of the common stock of, advise, represent or assist in
any other way any person or entity that competes with, or intends to compete with the Company or any other Qwest entity with respect to any product sold or service performed by the Company or any
other Qwest entity in any state or country in which the Company or any other Qwest entity sells such products or performs such services. If a court determines that this provision is too broad,
Executive and Company agree that the court should modify the provision to the extent (but not more than is) necessary to make the provision enforceable. 

4

 

        7.     NONSOLICITATION/NO-HIRE. For a period of one year beginning on the effective date of the termination of
Executive's employment with the Company or any other Qwest entity, regardless of the reason for the termination and regardless of the party bringing about the termination, Executive agrees not to
induce any employee of Qwest to leave Qwest's employment. This agreement means, among other things, that Executive may not have any part in hiring anyone who is a Qwest employee, even if Executive is
contacted by the Qwest employee first. For these purposes, employees of Qwest shall include all persons who are employed by the Company or any other Qwest entity at the time Executive violates this
paragraph 7 or were employed by the Company or any other Qwest entity at any time during the six months preceding such violation. If a court determines that this provision is too broad,
Executive and Company agree that the court should modify the provision to the extent (but not more than is) necessary to make the provision enforceable. 

        8.     REMEDIES FOR VIOLATION OF PARAGRAPHS 5, 6, OR 7. The Executive agrees that it would be difficult to measure any damages
caused to Qwest which might result from any breach by the Executive of the promises set forth in paragraphs 5, 6, and 7, and that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, subject to paragraph 9, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, Qwest or the Company shall be entitled,
in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to Qwest. 

        9.     WAIVER OF RIGHT TO JURY. By signing this Agreement, Executive voluntarily, knowingly and intelligently waives any right he
or she may have to a jury trial for all claims arising out of or relating to this Agreement and any other claim arising out of or relating to Executive's employment with or termination from the
Company. The Company also hereby voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims arising out of or relating to this Agreement and any
other claim arising out of or relating to Executive's employment with or termination from the Company. 

        10.   COOPERATION AND REIMBURSEMENT. Executive agrees, both during Executive's employment and following the termination of
Executive's employment, to cooperate reasonably with the Company or any other Qwest entity in connection with any dispute, lawsuit, arbitration, or any internal or external investigation involving
Qwest or any of their predecessors (a "Proceeding") with respect to which Qwest believes in good faith that Executive may possess relevant information. In that event, upon reasonable notice and at
reasonable times, and for reasonable periods, Executive agrees to make himself or herself available for interviews, witness preparation sessions, and appearances in connection with any Proceeding
(including, but not limited to, appearances at depositions, hearings and trials). Recognizing that upon Executive's separation from Company, participating in interviews or witness preparation sessions
may be a burden, Company agrees to reimburse Executive for the time Executive spends involved in interviews and witness preparation sessions requested by Qwest at a rate equal to Executive's final
base salary, computed on an hourly basis (assuming a 40 hour work week), for such time actually spent in such interviews or witness preparation sessions. In addition, Company will reimburse
Executive for reasonable expenses Executive incurs in connection with such interviews and witness preparation sessions. Company will not be obligated to reimburse Executive for lost wages, lost
opportunities, or other financial consequences of such cooperation, or to make any other payment to Executive other than the payments by Company referred to in the two previous sentences of this
paragraph of this Agreement; provided, however, nothing in this paragraph 10 shall impair or limit any 

5

 

rights
or entitlement Executive may have to indemnification and director's and officer's liability insurance coverage. The parties further agree that Company will not, and will not be obligated to,
reimburse Executive for any time spent testifying in any Proceeding (including, but not limited to, appearances at depositions, hearings and trials), although Company will reimburse reasonable
expenses for such appearances, as provided above. Nothing in this Agreement shall limit, restrict, preclude, require or influence Executive's testimony in any Proceeding or cause Executive not to
provide truthful testimony or information in any matter or in response to any inquiry by a government official or representative. Company's obligation to reimburse Executive as described above is
conditional upon Executive providing, at all times, information that he objectively, reasonably and in good faith believes to be truthful in connection with any Proceeding. 

        11.   INDEMNIFICATION. Both during Executive's employment and after the termination of Executive's employment for any reason,
Company, or any subsidiary or successor of Company of which Executive is an officer or member of the board of directors, shall indemnify Executive to the fullest extent required or permitted by its
Bylaws and applicable law. 

        12.   SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive,
Executive's assigns, the Company, any other Qwest entity, and their successors and assigns. 

        13.   CHOICE OF LAW. All questions concerning the construction, validity and interpretation of this Agreement shall be governed
by the internal law, and not the law of conflicts, of the State of Colorado. 

        14.   SEVERABILITY. If one or more terms, provisions or parts of this Agreement are found by a court or arbitrator to be
invalid, illegal, or incapable of being enforced by any rule of law or public policy, the terms, provisions or parts shall be modified to the extent (but not more than is) necessary to make the
provision enforceable. Additionally, all other terms, provisions and parts of this Agreement shall nevertheless remain in full force and effect. 

        15.   COMPLETE AGREEMENT. This Agreement contains the entire understanding of the parties with respect to the matters addressed
in this Agreement, and supersedes all prior representations, understandings and agreements of the parties with respect to the matters addressed in this Agreement, including, but not limited to, any
and all prior agreements for the payment of severance benefits. The parties acknowledge that no promises or representations have been made to induce Company or Executive to sign this Agreement other
than as expressly set forth in this Agreement, and that each party has signed this Agreement as a free and voluntary act. No term or provision of this Agreement may be modified or extinguished, in
whole or in part, except by a writing which is dated and signed by both Executive and the Chief Executive Officer of Company and approved by the Board Of Directors. 

        16.   CONSTRUCTION; REPRESENTATION. In any interpretation of this Agreement, any ambiguities shall not be construed against any
party on the basis that the party was the drafter. Executive represents that Executive is knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, that
he or she has read this Agreement and that he understands its terms. Executive acknowledges that, prior to assenting to the terms of this Agreement, Executive has been encouraged to, and has been
given a reasonable amount of time to review it, to consult with counsel of Executive's choice, and to negotiate at arm's-length with the Company as to its contents. Executive and Company agree that
the language used in this Agreement is the language chosen by the parties to express their mutual intent, and that they have entered into this Agreement freely and voluntarily and without pressure or
coercion from anyone. 

6

 

        17.   CONDITIONAL REPAYMENT OF PAYMENTS AND BENEFITS. If Executive receives benefits under Paragraph 3.b.(1) above, and,
within two years following Executive's termination of employment, Company determines that during Executive's employment with Qwest, Executive engaged in conduct that would have constituted "Cause" for
termination (as defined in 3.a. above), regardless of (i) when during Executive's employment with Qwest such conduct occurred, (ii) when Qwest knew or learns of such conduct or should
have known of such conduct, or (iii) what Qwest now knows or should have known about Executive's conduct, then Company shall provide to Executive (or, if applicable, Executive's estate or
beneficiary) written notification of such determination, which written notification shall expressly set forth the basis for Company's determination in reasonable detail. After Company provides this
written notification to Executive, it may stop or withhold any payments which have not been made under this Agreement. If Executive disputes that such Cause exists or existed, Executive and his or her
counsel shall make a presentation to the Company to request that Company withdraw such determination. If the matter is not settled or resolved after Executive's presentation to the Company, either
party may commence an action in a court of competent jurisdiction, subject to the waiver of any right to jury trial in Paragraph 9 above. In addition, if Executive breaches Executive's
obligations under the Nondisclosure (Paragraph 5) or Noncompete (Paragraph 6) provisions of this Agreement, Company may stop or withhold any payments which have not been made under this
Agreement. 

        If
a court finds that Cause exists or existed or that Executive has breached Executive's obligations under the Nondisclosure or Noncompete provisions of this Agreement, or if Executive
does not timely commence an action disputing Company's Cause determination, Executive shall make prompt repayment to Company of the cash payments provided in Section 3 of this Agreement and
other benefits received by Executive pursuant to this Agreement (including, but not limited to, the value of any discounted COBRA coverage). Consistent with applicable law, any repayments shall
include an interest factor equal to the applicable federal short term interest rate pursuant to Internal Revenue Code section 1274. Interest shall begin to accrue on the 31st day after
Executive (or, if applicable, Executive's estate or beneficiary) received Company's written notification of its determination that such Cause exists or existed, and shall continue to accrue until
complete repayment is made to Company. If Company notifies Executive (or, if applicable, Executive's estate or beneficiary) in writing of the determination that Cause for termination exists prior to
having made the payment required pursuant to Section 3 of this Agreement, such payment shall not be made unless the Company withdraws its determination, if the arbitrator determines that Cause
did not exist, or if the parties agree otherwise. 

        18.   RE-EMPLOYMENT. Executive agrees that if at any time during Executive's severance period Executive accepts
employment with Qwest Communications International, Inc., Qwest Services Corporation, any of their wholly-owned subsidiaries or any successor(s) thereto, all severance benefits to which
Executive is entitled for the remainder of his or her severance period shall cease effective the date Executive accepts the position. 

        19.   WAIVER OF BREACH. The waiver by either Company or Executive of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any prior or subsequent breach by either party. 

        20.   HEADINGS. The headings contained in this Agreement are for convenience only, do not constitute part of the Agreement and
shall not limit, be used to interpret or otherwise affect in any way the provisions of the Agreement. 

7

 

        21.   NOTICES. Any notices provided hereunder must be in writing and shall be deemed effective on the earlier of personal
delivery (including personal delivery by telecopy or private overnight carrier) or the third day after mailing by first class mail to the recipient at the address indicated below: 

	

 	

To the Company:	
 	

Executive Vice President and Chief Human

Resources Officer

Qwest Communications International, Inc.

1801 California Street

Denver, CO 80202
	

 	

To Executive:	
 	
John W. Richardson

3932 Forestridge Drive

Richfield, OH 44286
	

 	

With a copy to:	
 	

  

_____________________

or
to such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. 

        IN
WITNESS WHEREOF, the parties now execute this Agreement, to be effective as of the Effective Date. 

	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.:
	

 	
 	

By:	

/s/  BARRY K. ALLEN      
 Barry K. Allen

Executive Vice President and

Chief Human Resources Officer
	

 	
 	

Executive:
	

 	
 	

By:	

/s/  JOHN W. RICHARDSON      
John W. Richardson

SVP—Controller

8

  

 
 

ATTACHMENT A    
    

 
 

WAIVER AND RELEASE AGREEMENT    
    

1.    Release and Waiver of Claims and Covenant Not to Sue.  

        As a free and voluntary act, you hereby release and discharge and covenant not to sue, Qwest Communications International Inc., any present or former
subsidiary or affiliated Company, any predecessor (including U S WEST and all its affiliates) or successor, and the directors, officers, employees, shareholders and agents of any or all of them,
(hereinafter "Qwest"), from any and all debts, obligations, claims, liability, damages, punitive damages, demands, judgments and/or causes of action of any kind whatsoever, including specifically but
not exclusively: 

	•
	all
claims relating to or arising out of your employment with Qwest and/or U S WEST;

	•
	all
claims arising out of your Severance Agreement (except for claims arising under this Agreement);

	•
	all
claims relating to or arising from any claimed breach of an alleged oral or written employment contract, quasi-contracts, implied contracts, payment for services, wages
or salary and/or promissory estoppel;

	•
	any
alleged tort claims;

	•
	any
claims for libel and/or slander;

	•
	all
claims relating to purported employment discrimination or civil rights violations or arising under any federal or state employment statutes including, without
limitation, claims under Title VII of the Civil Rights Act of 1964, as amended; claims under the Civil Rights Act of 1991; claims under the Age Discrimination in Employment Act of 1967, as amended;
claims under 42 U.S.C. § 1981, § 1981a, § 1983, § 1985, or § 1988; claims under the Family and Medical Leave Act of 1993; claims under the
Americans with Disabilities Act of 1990, as amended; claims under the Rehabilitation Act of 1973; claims under the Fair Labor Standards Act of 1938, as amended; claims under the Worker Adjustment and
Retraining Notification Act; claims under the Colorado Anti-Discrimination Act; and claims under the Employee Retirement Income Security Act of 1974, as amended; or any other applicable
federal, state or local statute or ordinance, including claims for attorneys' fees;

	•
	any
claim for any disability payments under the Qwest Disability Plan or Qwest Pension Plan after your termination date. The reference to the Qwest Disability Plan and Qwest
Pension Plan includes any successor or predecessor of such plans such as the former Sickness and Accident Disability Plan or Long Term Disability Plan of any Qwest or U S WEST entity and all benefits
thereunder;

	•
	any
and all claims which you might have or assert against Qwest (1) by reason of your employment with and/or termination of employment from Qwest and all
circumstances related thereto; or (2) by reason of any other matter, cause, or dispute whatsoever between you and Qwest which arose prior to the effective date of this Agreement. This Agreement
excludes any claims you may make under (1) the applicable state unemployment compensation laws, (2) applicable workers' compensation statutes, (3) for indemnification to the
extent permitted or required by the bylaws of a Qwest company or applicable state law; and (4) claims which arise after the execution of this Agreement; 

9

 

	•
	your
right to seek individual relief on your own behalf for any charges of discrimination filed with any federal, state or local agency, pending or otherwise, arising from
or related to your employment or termination of employment with Qwest.

	2.
	Waiver of Right to Jury. By signing this Agreement, you voluntarily, knowingly and intelligently waive any right you may have to a jury
trial for all claims arising out of or relating to this Agreement and any other claim arising out of or relating to your employment with or termination from the Company. The Company also hereby
voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims arising out of or relating to this Agreement and any other claim arising out of or
relating to your employment with or termination from the Company.

	3.
	You
agree that the monies and benefits described above are considerations to which you would not otherwise be entitled unless you sign this Agreement, and that these considerations
constitute payment in exchange for signing this Agreement.

	4.
	If
one or more terms, provisions or parts of this Agreement are found by a court or arbitrator to be invalid, illegal, or incapable of being enforced by any rule of law or public
policy, the terms, provisions or parts shall be modified to the extent (but not more than is) necessary to make the provision enforceable. You agree that if any portion of this Agreement is found to
be unenforceable or prohibited, the remainder of this Agreement shall remain in full force and effect, unless the material terms and intent of this Agreement are materially changed by the fact that a
portion of this Agreement is unenforceable or prohibited.

	5.
	You
agree that this Agreement shall not be admissible in any proceeding as evidence of any improper conduct by Qwest against you and Qwest denies that it has taken any improper action
against you in violation of any federal, state, or local law or common law principle.

	6.
	You
acknowledge that no promises or representations have been made to induce you to sign this Agreement other than as expressly set forth herein and that you have signed this Agreement
as a free and voluntary act.

	7.
	You
acknowledge that this release means, in part, that you give up all your rights to damages and/or money based upon any claims against Qwest of age discrimination. You do not waive
your rights to make claims for damages and/or money which arise after the date this Agreement is signed. Under the Age Discrimination in Employment Act, you have the right within seven days of the
date you sign this Agreement to revoke your waiver of rights to claim damages and/or money. In the event you revoke your agreement to be obligated to the terms of this Agreement, the benefits offered
herein shall be null and void, meaning you will receive no involuntary termination benefits under your Severance Agreement. To be effective, your revocation must be in writing and delivered to
Executive Vice President and Chief Human Resources Officer, Qwest Communications International, Inc. 1801 California Street, Denver, Colorado 80202, within the seven-day period. If
by mail, the revocation must be (1) postmarked within the seven-day period, (2) properly addressed, and (3) sent by certified mail, return receipt requested.

	8.
	You
acknowledge that you (a) have had sufficient opportunity (not less than 45 days) to review this Waiver and Release Agreement, (b) have been encouraged to
consult with and have had sufficient opportunity to consult with your attorney and financial advisor before signing this Waiver and Release Agreement, and (c) that you understand and agree to
all of the terms of this Waiver and Release Agreement. 

10

 
 
 

AGREEMENT

I have read and I understand the terms of the foregoing Waiver and Release, and I hereby agree to all of the terms of the foregoing Agreement.

	

 (Employee's Signature)	
 	

 (Date)

	
 	

 

Please
return all pages of this signed agreement to: 

Executive
Compensation

1801 California Street

Suite 4500

Denver, Colorado 80202 

11

QuickLinks

Exhibit 10.35

SEVERANCE AGREEMENT

ATTACHMENT A

WAIVER AND RELEASE AGREEMENT

AGREEMENT

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