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IN RE WORLDCOM

August 24, 2005.

IN RE WORLDCOM, INC. ERISA LITIGATION. This Document Relates to: All Actions.


The opinion of the court was delivered by: DENISE COTE, District Judge

Order Approving Plan of Allocation

This matter having come before the Court pursuant the Class Action Settlement Agreement (the "Agreement") dated July 2, 2004, and specifically section 8.3 thereof, and on the ERISA Plaintiffs' Motion for Final Approval of Settlement filed September 1, 2004, and the matter having been heard and good cause appearing,
IT IS ORDERED:
I. Definitions.
A. Capitalized terms used herein shall have the meanings ascribed to them in section 1 of the Agreement or in this Order.

  B. "Participant" means a person who was a participant, as that term is used in ERISA, in the Plan during the Class Period.

  C. "Plan Administrator" means the administrator of the Plan pursuant to ERISA § 16(A).

  D. "Company Stock" means WorldCom, Inc. stock and MCI Group tracking stock. II. Amount to Be Distributed.

  A. As soon as practicable on or immediately after the Effective Date, the Custodian shall pay into the Plan:
(1) the Principal Class Settlement Amount ($46,750,000 pursuant to Section 7.2.1 of the Agreement); plus
(2) the Ebbers Initial Settlement Payment ($400,000 pursuant to Section 7.2.2 of the Agreement); plus
(3) any interest earned on those amounts pursuant to Section 7.1.2 of the Agreement; minus
(1) attorneys' fees, expenses, and Named Plaintiff compensation awarded by the Court, as contemplated by Section 10 of the Agreement or as reserved for or otherwise ordered by the Court; and
(2) any reasonable and necessary expenses of the Settlement Fund, as contemplated by Section 7.1.2 of the Agreement.
This amount is the "Net Class Settlement Amount."

  B. The total amount to be distributed to the Participants (the "Distribution Amount") shall be the Net Class Settlement Amount, as set out in Paragraph II.A above, minus any reasonable and necessary out-of-pocket expenses of the implementation of the Plan of Allocation, as contemplated by Section 8.3 of the Agreement.

  III. Calculation of Each Participant's Share of the Distribution Amount.

  A. The Plan Administrator shall calculate, for each Participant, a Net Loss. The Net Loss for each Participant shall be equal to (a) the dollar amount of the account balance invested in Company Stock at the beginning of the Class Period, plus (b) the dollar amounts of any additional investment(s) in Company Stock during the Class Period, as of the date of the investment(s), minus (c) the proceeds of all dispositions of Company Stock during the Class Period.

  B. The Net Losses of the Participants as calculated in Section III.A above will be totaled to yield the loss of the Plan as a whole over the Class Period (the "Plan's Loss").

  C. The Plan Administrator shall calculate for each Participant his or her "Preliminary Fractional Share" of the Plan's Loss, i.e., by dividing each Participant's Net Loss by the Plan's Loss.

  D. The Plan Administrator shall then calculate for each Participant his "Preliminary Dollar Recovery" of the Distribution Amount by multiplying the Participant's Preliminary Fractional Share by the Distribution Amount.

  E. The Plan Administrator shall identify all Participants whose Preliminary Dollar Recovery is greater than zero but less than ten dollars ($10.00) (the "De Minimis Amount"). All such Participants shall receive an allocation from Distribution Amount of the De Minimis Amount.

  F. The Plan Administrator shall then, taking into account the Participants who receive the De Minimis Amount, recalculate the Preliminary Fractional Shares and the Preliminary Dollar Recoveries as many times as necessary so as to arrive at the "Final Fractional Share" and the "Final Dollar Recovery" for ...


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