Document:

ex10ggg.htm

    Exhibit
10-ggg

    

    

    AT&T CORP. EXECUTIVE DISABILITY
PLAN

    

    PROGRAM
SUMMARY FOR AT&T OFFICERS AND DIRECTORS

    

    FEBRUARY
2004

    

    

    

    

    ABOUT
THIS SUMMARY

    

    This Summary describes key features
of the AT&T Corp. Executive Disability Plan ("Plan") as they apply beginning
April 1, 2004, to active employees of AT&T Corp. ("AT&T") who are
classified at either (i) a salary grade level of "E-band", or its equivalent, in
a banded environment, or a level of "Manager 5", or its equivalent, in a
non-banded environment ("Directors"); or (ii) a salary grade level above
"E-band", or its equivalent, in a banded environment, or a level above "Manager
5", or its equivalent, in a non-banded environment, also referred to as "Senior
Managers" from time to time ("Officers").

    

    As a summary, this document is not
intended to cover all of the details of the Plan. More details about the Plan
can be found in the official Plan document and the insurance policies (for the
insured portion of the Plan), which legally govern all aspects of the Plan. If
there are any conflicts between the terms of the Plan document and the
description in this Summary, the Plan document and insurance policies, as
applicable, will control and govern the operation of the Plan.

    

    PRIOR
DISABILITY PROGRAMS

    

    Effective April 1, 2004, eligible
Officers and Directors will no longer be covered under the AT&T Short-Term
Disability Benefit Plan for Management Employees and the AT&T Long-Term
Disability Plan for Management Employees (including the "Additional 10% of Pay
Option" or "High Option"). That coverage is being replaced by the coverage
provided under the Plan. Officers will continue to be eligible to participate in
the AT&T Senior Management Long-Term Disability and Survivor Protection Plan
with respect to certain benefits that remain in effect under that
plan.

    

    
      
        1

      

      
        
        

        
          

        

      

      
        
        

      

    

    HOW THE
PLAN WORKS

    

    COMPOSITION
OF THE PLAN:   The Plan is comprised of three disability benefit
programs:

    

    
      	
              -  

            	
              Short-Term
      Disability Benefit Program

            

    

    
      	
              -  

            	
              Base
      LTD Benefit Program, and

            

    

    
      	
              -  

            	
              Supplemental
      Disability Income Program ("SDIP")

            

    

    

    ENROLLMENT:   All
Officers and Directors are automatically enrolled for coverage under the
Short-Term Disability Benefit Program and the Base LTD Benefit Program. If you
wish to enroll for coverage under the SDIP during the initial enrollment period,
you should complete and return the enrollment materials that accompany this
Summary by the indicated deadline. If you decline to enroll in the SDIP during
the initial enrollment period, you will be able to enroll with evidence of
insurability during future annual open enrollment periods.

    

    SHORT-TERM
DISABILITY BENEFIT PROGRAM:   The Short-Term Disability Benefit
Program will provide you with weekly short-term disability benefits equal to the
weekly equivalent of 100 percent of your annual base salary. The short-term
disability benefit will commence on the eighth consecutive day of your absence
from work due to disability (as defined in the Plan document). Short-term
disability benefits will continue until the earlier of (i) the date you are no
longer considered disabled; or (ii) the last day of the 26th week after
commencement of you short-term disability benefits under the Plan. All
short-term disability benefits are reduced by certain payments made under other
AT&T-sponsored benefit plans.

    

    BASE LTD
BENEFIT PROGRAM:   If, after receiving 26 weeks of short-term
disability benefits, you continue to be disabled (as defined in the Plan
document), regardless of your length of service with AT&T, you will be
eligible to receive base long-term disability ("LTD") benefits equal to 60
percent of your eligible compensation, reduced by benefit payments from certain
other AT&T benefit plans as specified in the Plan document. This benefit
entitlement arises if your disability is due to the same physical or mental
impairment for which you received short-term disability benefits. Your base LTD
benefits will continue until the earlier of (i) the time you are no longer
disabled; or (ii) your 65th
birthday.

    

    SUPPLEMENTAL
DISABILITY INCOME PROGRAM ("SDIP"):   The Plan also offers
supplemental long-term disability income protection to you under the SDIP. To be
eligible for this fully-insured supplemental disability coverage, you must
enroll (as described in the enclosed materials) in one of the following coverage
options and pay the applicable premiums:

    

    OPTION 1:   Additional
10% of your monthly base salary (and two-year average commission, if
applicable)

    OPTION 2:   Up to 70% of
the monthly equivalent of your two-year average annual bonus

    

    OPTION 3:   Up to an
additional 10% of your monthly base salary (and two-year average commission, if
applicable), plus up to 70% of the monthly equivalent of your two-year average
annual bonus

    

    If your disability (as defined in the
SDIP insurance policy) continues more than 180 days, you will be eligible for
the monthly supplemental disability income benefits provided under your SDIP
coverage option. The maximum amount of monthly SDIP benefits you may receive
under any of the three options will be the lesser of (i) $7,500 per month; or
(ii) the benefit amount which, when combined with your base LTD benefit and any
other disability coverage in force, provides you with a disability benefit of
$50,000 per month.

    

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

    One of the significant advantages of
the SDIP is that your insurance coverage is "portable", i.e., you will be able
to maintain the coverage after your employment with AT&T terminates. Another
advantage is that the SDIP benefits will not be subject to offset by payments
under other AT&T benefit programs. See the enclosed enrollment materials for
more information concerning the SDIP.

    

    COST OF
COVERAGE

    

    AT&T pays the full cost of your
coverage under the Short-Term Disability Benefit Program and the Base LTD
Benefit Program. If you enroll in the SDIP, you will pay the applicable premiums
through payroll deductions while you are employed by AT&T, and thereafter,
on a direct-pay basis with the insurer.

    

    FUNDING
AND POLICY OWNERSHIP

    

    Under the Plan, the short-term
disability and base LTD benefits will be self-insured by AT&T. The SDIP
coverage is fully-insured through a contract underwritten by MetLife. If you
enroll in the SDIP, you will receive a MetLife policy for your coverage under
that portion of the Plan.

    

    FEDERAL
INCOME TAX IMPLICATIONS

    

    Your Short-Term Disability Benefit
Program and Base LTD Benefit Program coverage will be provided to you by
AT&T on a pre-tax basis. Therefore, any short-term disability benefits or
base LTD benefits you receive under the Plan will be considered taxable income
to you (based on current federal income tax law).

    

    If you enroll in the SDIP, all of
your premium payments will be made on an after-tax basis. Therefore, any
benefits you receive under the SDIP will not be considered taxable income to
you.

    

    CONSULTATION
WITH FINANCIAL ADVISORS

    

    You may wish to speak with your
financial counselor regarding this Plan, including your disability income
replacement needs and the advisability of enrolling in the SDIP.

    

    INSURANCE
CARRIER

    

    Metropolitan Life Insurance Company
(MetLife) is the insurance carrier that underwrites the coverage under the SDIP
and is responsible for paying the applicable supplemental disability income
benefits under the Plan.

    

    FUTURE
PROGRAM CHANGES

    

    The Board of Directors at AT&T
Corp. (or its delegate) reserves the right to modify, suspend, change or
terminate the Plan at any time. Nothing contained in this Summary, the Plan
document or any related document (including any insurance policy) shall create a
contract of employment with any employee or a participant.

    
 

    3ex10hhh.htm

    

      Exhibit
10-hhh

      

      

      

      AT&T
CORP.

      SENIOR
MANAGEMENT

      UNIVERSAL
LIFE INSURANCE PROGRAM

      

      Effective
October 1, 1999

      

      

      Purpose

      

      The
purpose of the AT&T Corp. Senior Management Universal Life Insurance Program
is to provide  life  insurance  benefits to
certain  executives  who  contribute materially to
the continued  growth,  development,  and
future  business of AT&T Corp.

      

      Section  1.

      Definitions

      

      The
following words and phrases,  as used in this Plan,  shall
have the meanings set forth below unless a clearly different meaning is required
by the context in which the word or phrase is used.

      

      1.0      Administrator.  "Administrator"  means
the Executive  Vice  President -
Human  Resources  of the Company (or
any  successor  to such  position)
having  responsibility for personnel  matters,  or
his or her designee.  The Administrator shall manage and administer
the Program in accordance with its terms and conditions.

      

      1.1      Assignee.
"Assignee" means the person, trust, entity or organization to whom or to which a
Policyholder  makes an irrevocable  assignment on or after
October 1, 1999, of all his or her rights, title, interest, and
incidents  of  ownership,  both  present
and future,  to the  Insurance Policy  and
any  other  assignable  rights  to
the  benefits  under the Program.

      

      1.2      Beneficiary.   "Beneficiary"
means the person, trust, entity, organization or the estate of
a  Policy holder  designated  pursuant to
Section  5.4 that is  entitled to
receive  benefits  from an  Insurance Policy upon
the death of a Participant.

      

      1.3      Benefit
Amount. "Benefit Amount" means the amount of the life insurance benefit under
the Insurance Policy for which premiums are payable by the Company under the
Program.  The "Benefit Amount" for a Participant shall be determined
in accordance with Section 5.2.

      

      1.4      Board.  "Board"
means the Board of Directors of the Company.

      

      1.5      Company.  "Company"
means AT&T Corp., a New York corporation, and any successors to such
entity.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.6      Eligible
Executive.  "Eligible  Executive"  means either
(a) an active employee of an Employer  who, on
September  30, 1999,  is covered as an insured under one or
more life insurance policies that are subject to a
collateral  assignment  agreement with the Company under one
or both of the Prior Programs; or (b) any other regular, full-time employee of
the Company  who, on or after  October 1,
1999,  is  classified  as a U.S. salary-based
senior manager of the Company (or equivalent salary grade, as determined by the
Company in accordance with its payroll  practices) and is determined
by the Administrator,  in his or her sole discretion, to be eligible
for participation in the Program.

      

      1.7      Employer.  "Employer"
means the Company and certain of its subsidiaries and affiliates, as determined
by the Company in its sole discretion.

      

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

      

      1.9      Insurance
Policy.  "Insurance Policy" means one or more life insurance contracts
issued by the Insurer on the life of an Eligible Executive.

      

      1.10     Insurer.  "Insurer"
means the insurance company or companies to which the Company shall apply for
insurance on an Eligible Executive's life, and which issues an Insurance
Policy.

      

      1.11     Normal
Termination Date. "Normal Termination Date" means the latest of (a) the date a
Participant is eligible for retirement-related benefits from  the
Company as described in Section 2.2; (b) the date a Participant attains age 65;
(c) the date as of which a Participant has been covered for a
combined  total of at least 15 years under the Prior
Programs  and the Program (for an
Eligible  Executive  who had coverage under both of the
Prior Programs, this 15-year period of coverage shall be measured beginning
from  the later of his or her coverage commencement  dates
under the respective  Prior  Programs);  or (d)
the date the Insurance Policy has sufficient  cash value, as
determined by the Company in its sole discretion, to provide life insurance
coverage for the Participant's remaining life expectancy.

      

      1.12     Participant.   "Participant"
means an Eligible Executive who has satisfied all of the eligibility and
enrollment conditions in Section 2.0 and with respect to whom an Insurance
Policy has been procured pursuant to Section 3.0 through Section
3.3.  For purposes of this Section 1.12, "Participant" shall include
(a) a Participant who subsequently becomes disabled and satisfies the
requirements of Section 2.1; and (b) a Participant who retires from active
employment with the Company and is then eligible for retirement-related benefits
as described in Section 2.2.

      

      1.13     Policyholder.   "Policyholder"
means the person, trust, entity or organization determined in accordance with
Section 4.0 to be the owner of the Insurance Policy on an Eligible Executive's
life.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.14     Prior
Programs. "Prior Programs" means the AT&T Senior Management Basic Life
Insurance Program and the AT&T Senior Management Individual Life Insurance
Program as in effect on September 30, 1999.  The Prior Programs shall
be terminated effective as of September 30, 1999, and replaced by the
Program.

      

      1.15     Program.  "Program"
means the AT&T Corp. Senior Management Universal Life Insurance Program,
which shall be evidenced by this plan document, as amended from time to
time.

      

      

      Section
2.

      Eligibility
and Participation

      

      2.0      Eligibility
Conditions.  Upon becoming an Eligible Executive, an individual may
become a Participant by:

      

               (a)      Completing,
executing, and returning all of the enrollment applications and other documents
required under the Program in the form approved by the
Administrator;

      

               (b)      Cooperating
with the Company in obtaining the Insurance Policy on his or her life as
required by Sections 3.0 and 3.1; and

      

               (c)      Complying
with such further conditions as may be established by the Administrator from
time to time.

      

               Subject
to the provisions of Sections 2.1, 2.2, 3.3 and 4.1, an Eligible Executive shall
be eligible to continue to participate in the Program until the occurrence of
any event described in Section 6.0 that causes the termination of his or her
participation in the Program.

      

      2.1      Disability
Prior to Normal Termination Date. In the event that (a) a
Participant  becomes  disabled (as determined under the
AT&T Long Term Disability Plan for Management Employees),  and (b)
the Participant continues to be disabled until his or her Normal Termination
Date (without regard to whether the Participant continues to  receive
payments  under  the AT&T Long Term Disability Plan for
Management Employees through  such
date),  the  Participant shall be eligible to
continue  to  participate in the  Program until
his or her  Normal Termination  Date.  If, for any
reason, the Participant ceases to be disabled
(as  determined  under  the  terms of
the AT&T Long Term Disability Plan for Management Employees) prior to
reaching his or her Normal Termination Date and
the  Participant  does not resume  active
employment with the Employer,
the  Participant's  participation in the Program
shall  terminate as of the date of cessation of such disability
status.

      

      2.2      Retirement
Prior to Normal Termination Date.  In the event  that a
Participant  (a)  terminates  employment  prior  to
his  or her  Normal Termination Date, and (b) is eligible
for  retirement-related  benefits from
the  Company,  the  Participant  shall
be  eligible to continue to participate  in the Program
until his or her
Normal  Termination  Date.  Notwithstanding the
foregoing, the Participant's participation in the Program may cease prior to his
or her Normal  Termination Date upon the occurrence of
another  event  described in Section 6.0. For purposes of
this Program, a Participant shall
be  considered   eligible  for  retirement-related  benefits
if he or she has satisfied the eligibility conditions  for receipt
of  postretirement  medical  benefits under the
AT&T Medical Expense Plan for Retired Employees, as then in
effect.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.3      Recommencement
of Participation.  Once a Participant's participation in the Program
has  terminated  as provided in Section 6.0 (other than due
to the  occurrence  of an event  described in
Sections  6.0(a),  (b) or (c)), he or she
may  recommence  participation  in the Program if
he or she (a) is an  Eligible  Executive  at
the  time  participation  is to
recommence;   and  (b)   satisfies   any  and  all   requirements
for recommencement of participation established by the Administrator in his or
her sole discretion.

      

      

      Section  3.

      Procurement
of Insurance Policy

      

      3.0      Insurance  Application  Requirements.  The  Company  shall
apply to the Insurer for an Insurance Policy on the life of each
Eligible  Executive in an amount  determined by the Company
to be sufficient to provide the applicable Benefit Amount for the Eligible
Executive.

      

      3.1      Cooperation  Requirement
for Eligible Executive.  An Eligible Executive shall reasonably
cooperate with the Company in its efforts to apply for and obtain the Insurance
Policy on his or her life by:

      

               (a)      Furnishing
such information as the Insurer may require for completion of the insurance
application and related forms and documents;

      

               (b)      Taking
such physical examinations and supplying medical history as may be requested by
the Insurer;

      

               (c)      Signing
the application for the Insurance Policy as the insured; and

      

               (d)      Doing
any other act to comply with the underwriting and policy issuance requirements
which may reasonably be requested by the Insurer or the
Administrator.

      

      3.2      Cooperation   Requirement
for Policyholder.   A Policyholder shall reasonably cooperate
with the Company in its efforts to apply for and obtain the Insurance Policy on
the life of an Eligible Executive by:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

               (a)      Furnishing
such information  as the  Insurer may require
for  completion of the insurance  application and related
forms and documents;

      

               (b)      Signing
the application for the Insurance Policy as the proposed policy owner;
and

      

               (c)      Doing
any other act to comply with the underwriting and policy issuance requirements
which may reasonably be requested by the Insurer or the
Administrator.

      

      3.3      Consequences
of Failure to Cooperate.  The Company shall have no obligation to the
Eligible Executive, the Policyholder or the Policyholder's Beneficiary under the
Program and the Eligible Executive's participation in the Program shall become
null, void and of no force or effect if:

      

               (a)      The
Administrator,  in his or her sole discretion,  determines
that  an  Eligible  Executive  or  the  Policyholder  has  not
adequately   cooperated   in  the  process  of  procuring  the
Insurance Policy on the Eligible  Executive's life as required by
Section 3.1 and Section 3.2, respectively; or

      

               (b)      The
Company is, for any reason,  unable to obtain insurance in
the  specified  amount  on
an  Eligible  Executive's  life  at
standard rates or rates otherwise acceptable to the Company.

      

      

      Section  4.

      Incidents
of Ownership

      

      4.0      Policy  Ownership.  The
Insurance  Policy shall, at all times, be owned solely
and  absolutely by the  Policyholder,  except in
the event of an assignment  to an Assignee as provided  for
in Section 4.2. The person,
trust,  entity  or  organization  that  will
be the  Policyholder  with respect to a Participant shall be
determined as follows:

      

               (a)      Eligible  Executive
Who  Participated  in Prior  Programs with Single
Policy Owner.  If on September 30, 1999 (i) an Eligible
Executive  was  covered as
an  insured  under one or more life insurance policies that
are subject to a collateral assignment with the Company under one or both of the
Prior Programs,  and (ii) all such
life  insurance  policies were owned by a single policy
owner (or  assignee),  such policy owner
(or  assignee) shall  be
the  Eligible  Executive's  Policyholder  under  the
Program.

      

               (b)      Eligible  Executive
Who  Participated  in Prior  Programs with
Multiple  Policy  Owners.  If
on  September  30,  1999  (i) an
Eligible Executive was covered as an insured under one or more
life  insurance  policies  that
are  subject  to a  collateral assignment
agreement with the Company under one or both of the Prior Programs, and (ii) all
such life insurance policies were owned by two or more
different  policy owners (or  assignees), the Eligible
Executive's  Policyholder under the Program shall be the
person,  trust, entity or organization that all of such policy owners
or assignees  (excluding the Eligible  Executive if he
or  she is one of
the  policy  owners)  agree  upon  and
designate  as
the  Policyholder  with  respect to the Eligible
Executive.  If, for any reason, an agreement among such policy
owners  (or  assignees)  cannot be reached by
October 1, 1999, and/or
no  designation  of  Policyholder  is  received  by
the Administrator by October 1, 1999, the Eligible Executive shall be the
Policyholder  unless the  Administrator,  in his
or her sole  discretion,  determines  that one or
more other persons,  trusts,  entities or
organizations  should be the Policyholder
with  respect  to  the   Insurance   Policy  on  the  Eligible
Executive's life.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

               (c)      Eligible  Executive  Who  Did  Not  Participate  in
the  Prior Programs.  If on September 30, 1999, an Eligible
Executive was not  covered  as an insured  under
one or more life  insurance policies issued under one or both of the
Prior  Programs,  the
Eligible  Executive's  Policyholder under the Program shall
be the person (including the Eligible  Executive),  trust,
entity or organization that the
Eligible  Executive  designates to be his or
her  Policyholder in the
Eligible  Executive's  written
enrollment  application for participation in the
Program.  If, for any reason, an Eligible  Executive who did
not participate in either of the Prior Programs on September 30, 1999 fails to
designate  a  Policyholder  under
the  Program,  the  Eligible
Executive  shall  be  the  Policyholder  with  respect  to
the Insurance Policy on his or her life.

      

      4.1      Rights
of Policyholder  and Company.  Prior to
a  Participant's  Normal Termination Date, the Policyholder
or his or her Assignee shall control
all  incidents  of  ownership  with  respect  to
the  Insurance  Policy including all policy cash values and
death benefits under the Insurance
Policy  on  the  Participant's   life.   However,   in  the  event  the
Policyholder  or his or her Assignee  surrenders the
Insurance  Policy, withdraws  any cash value from
the  Insurance  Policy or obtains a loan from
the  Insurance  Policy,  the  Participant's  participation  in
the Program shall  immediately  cease and the Company will
not be obligated to continue to make any further premium payments as provided by
Section 5.1 for the Insurance Policy.

      

      4.2      Assignment
of Insurance  Policy by Policyholder.  A
Policyholder  shall have the right, at any time, to absolutely
and  irrevocably  assign his or her
rights,  title,  interest,  and incidents of
ownership in and to the Insurance Policy and any other
assignable  rights to benefits under
this  Program  to  any  person,  trust,  entity  or  organization.  Any
assignment  shall be subject to the  consent of
the  Insurer.  Any such assignment shall be on a form
approved by the Insurer. No assignment by a Policyholder  shall be
effective until acknowledged in writing by the Insurer. A copy of the
written  acknowledgment shall be returned to the
Policyholder  and the  Assignee.  Once
the  assignment of the Insurance Policy has
been  acknowledged by the
Insurer,  the  Policyholder  shall have no further
rights, title, interest or incidents of ownership, both present and
future,  in or under the  Insurance  Policy or to
any other rights to benefits under the Program covered by the assignment, and
the Assignee  shall have all such
assigned  rights,  title,  interest, and incidents
of  ownership,  both present and future,  under
the Insurance Policy and the Program.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.3      Beneficiary  Elections
and Settlement Options. A Policyholder or his or her Assignee, if any, may
exercise (a) the right to designate or change  the Beneficiary of life
insurance  proceeds under the
Insurance  Policy  pursuant to Section 5.4;  and
(b) the right to elect any optional  mode
of  settlement  with  respect  to such
life  insurance  proceeds.  Upon request of
a Policyholder  or  his  or  her  Assignee,  if  any,  the
applicable  form for any  designation  or change
of  Beneficiary or any
election  of  an  optional  mode  of  settlement  shall  be  sent  to
a Policyholder, an Assignee or a Beneficiary, as appropriate.

      

      4.4      No
Ownership Interest by the Company. No provision in the Program shall be
construed or  interpreted  to permit or provide the Company
with any rights,  title,  interest or  incidents
of  ownership, both present or future, to the Insurance
Policy.

      

      

      Section  5.

      Payment
of Benefits

      

      5.0      Source
of Benefits. The sole benefit under the Program to a Participant
shall  be the  premium  payments  made
by the  Company  to the  Insurer pursuant to
Section 5.1 to maintain the Insurance  Policy on his or her
life  and  the  tax   adjustment   made  pursuant  to  Section  5.3.  A
Beneficiary's  sole source of benefits  under the
Program  shall be the Insurance Policy under which the
Policyholder,  or his or her Assignee,
designates  a  Beneficiary  to  receive   benefits   payable  upon  the
Participant's death.

      

      5.1      Payment
of Insurance Premiums.  When the Company submits an application for
the Insurance Policy on the life of an
Eligible  Executive,  or as
soon  thereafter  as is required by the
Insurer,  the Company shall pay the initial premium on the Insurance
Policy to the Insurer. Thereafter,
the  Company  shall  annually  (or
more  frequently  as required by the Insurer)  pay
the  premiums  determined  to be due under
the  Insurance Policy.  While the
Eligible  Executive is a Participant,  the amount of the
premiums paid by the Company shall be sufficient,  as determined by
the Company in its sole discretion, to maintain life insurance coverage on
the  life  of
the  Participant  equal  to
the  Benefit  Amount.  The
Company's  obligation to make premium  payments on the
Insurance Policy covering the life of a Participant  shall cease upon
the termination of the Participant's participation, as provided for in Section
6.0.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.2      Benefit
Amount.

      

              (a)       The  Benefit  Amount  under  the  Program  with  respect  to
a Participant  who
is  actively  employed  by an Employer at any time
on
or  after  October  1,  1999  shall
be  determined  as follows:

      

                        (i)      Prior
to Age 65: The Benefit Amount for a Participant prior to age 65 shall be equal
to 250  percent of the Participant's annual base salary (determined
based on the  Employer's  records) paid to
the  Participant by
the  Employer,  rounded  up to the
next  $1,000.  Any
salary  increase  will be  reflected  in
the  Benefit Amount as soon as administratively  practicable
after the salary increase becomes effective.

      

                        (ii)     Age  65  and  Older:   The   Benefit   Amount  for  a
Participant  age 65 or  older  will
be  equal  to the Participant's Benefit Amount at age
64.

      

               (b)      Any
Participant who is eligible for continued participation in the
Program  pursuant to the  provisions of either Section 2.1
or  Section  2.2 due
to  retirement  or  disability  prior  to
attainment of his of her Normal  Termination  Date will have
a Benefit Amount as described  under Section  5.2(a)(i) and
(ii) above,  whichever is applicable,  throughout the
Participant's period of continued  participation  in the
Program  (under the terms of Section 2.1 or Section 2.2, as
applicable); provided, however,  that for purposes of determining
such  Participant's
Benefit  Amount,   the  Participant's   "annual  base  salary"
referred to in Section  5.2(a)(i)  shall be
the  Participant's
final  "annual  base  salary"  on  the  date  of  his  or  her
retirement or disability.

      

      5.3      Tax
Adjustment. The Company shall make a tax adjustment with respect to each premium
payment made to the Insurer pursuant to Section 5.1 on the
Insurance  Policy  covering the life of
a  Participant.  The amount and frequency of each
tax  adjustment,  as determined by the Company in its
sole  discretion,  is intended to be  sufficient
to cover the estimated amount of federal  income taxes and FICA taxes
that will be incurred by the  Participant  on
the  sum
of  the  premium  payment  plus  the  tax
adjustment itself. Each tax adjustment shall be equal to the sum of two amounts
that are described below and referred to herein respectively as the "tax
withholding portion" and the "excess portion":

      

               (a)      Tax
Withholding Portion of Tax Adjustment: The tax withholding portion of each tax
adjustment  shall be equal to the combined total amount of
federal  income taxes and FICA taxes  required to be
withheld  with respect to (i) each premium  payment made by
the Company; and (ii) each corresponding tax adjustment.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

               (b)      Excess
Portion of Tax  Adjustment:  The excess portion of each
tax   adjustment   shall  be  equal  to  the   applicable  tax
adjustment,  reduced by the related tax withholding portion of such
tax  adjustment  determined  under  Section  5.3(a)  with  respect
to the premium payment and the related tax adjustment.

      

               The  tax  withholding  portion  of  each  tax  adjustment  payment,  as
described  in  Section  5.3(a)  (above),  shall
be paid by the  Company directly to the applicable federal tax
authorities.  The excess portion of each tax adjustment payment, as
described in Section 5.3(b) (above), shall be paid in cash to
the  Participant  (or if he or she is not then
living,  to his or her
estate).  The  Company's  obligation to make
tax  adjustment  payments with respect to a Participant
shall cease upon the termination of the Participant's  participation
in the Program pursuant to the provisions of Section 6.0.

      

      5.4      Beneficiary  Designations.  A
Policyholder  or, if the Policyholder has  assigned the
Insurance Policy pursuant to Section 4.2, the Assignee may designate a
Beneficiary  to receive life  insurance  proceeds
under the Insurance  Policy upon the death of
the  Participant,  or may change an
existing  designation  of
the  Beneficiary  to
receive  such  insurance
proceeds.  Any  designation  of Beneficiary or
change in the designated Beneficiary  shall
be  accomplished  in accordance  with the
applicable terms of the Insurance Policy using forms approved by the
Insurer.  If, for any reason,  no
valid  Beneficiary  designation is on file with the
Insurer  at the time of
the  Participant's  death,  the
life  insurance proceeds payable under the Insurance Policy shall be
paid in accordance with the terms of the Insurance Policy.

      

      5.5      No
Company or  Employer  Obligation.  Neither the
Company nor any other Employer  shall  have
any  obligation  of
any  nature  whatsoever  to a
Policyholder  or his or her Assignee or Beneficiary  under
this Program
if  the  circumstances  of  the  Participant's  death,  the  terms  and
conditions of this Program,  or any other reason,  precludes
payment of life  insurance  proceeds  or any
other  benefits  under the  Insurance Policy or
Program.

      

      5.6      No
Affect on Other Company Benefits:  No portion of any premium payment
on any Insurance Policy or any tax adjustment payment made with respect to
a  Participant  as provided  in
this  Section 5 shall be included or otherwise taken
into  consideration as pay,  compensation or income for
purposes  of any
other  "employee  welfare  benefit  plan"  (within
the meaning of Section 3(1) of ERISA),  any "employee pension benefit
plan"
(within  the  meaning  of  Section   3(2)  of  ERISA),   or  any  other
compensation  or benefit plan,  program
or  arrangement of any Employer covering the
Participant  unless  expressly  provided for in
such plan, program or arrangement.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section  6.

      Termination
of Participation

      

      6.0      Events  that  Cause  Termination  of  Participation.   A  Participant's
participation  in the Program shall  terminate when the
first of any of the following events occurs:

      

               (a)      The
death of the Participant;

      

               (b)      The
Participant attains his or her Normal Termination Date;

      

               (c)      The
Board (or its delegate) terminates the Program pursuant to Section
8.1;

      

               (d)      The  termination  of
the  Participant's  employment  with  the
Company,  for any
reason  (other  than  death,  disability  as
described in Section 2.1 or retirement with retirement-related benefits
as  described  in Section  2.2),  prior
to his or her Normal  Termination  Date
(unless  otherwise  agreed to by the Company in
writing);

      

               (e)      Cessation
of the Participant's  disability prior to his or her
Normal  Termination  Date  under  circumstances  described  in
Section  2.1,  when  the   Participant   does  not  recommence
employment with the Employer;

      

               (f)      Voluntary  termination
of the  Participant's  participation in the Program
initiated by the Participant giving written notice to
the  Administrator  prior to his or her
Normal  Termination  Date;

      

               (g)      The
Policyholder or his or her Assignee,  if any, takes any of
the  actions
described  in  Section  4.1  (e.g.,
loans or
withdrawals)  that  cause  termination  of  the
Participant's participation in the Program;

      

               (h)      Demotion  of  the  Participant  to  a  position  that  is  not
classified  or  otherwise  treated  by
the  Company as being a senior manager-level position (or equivalent
salary grade), as determined by the Administrator; or

      

               (i)      The   Participant   is  determined   by  the  Executive   Vice
President-Human  Resources of the Company,  in his or her
sole discretion,  to have engaged in any
competitive  activity that violates the provisions of the AT&T
Non-Competition Guideline, as  amended  from time to
time,  or any other  non-competition commitment of the
Participant to any Employer.

      

               Termination
of a  Participant's  participation  in the Program
upon the occurrence  of any of the
events  described  in this  Section 6.0 shall have
the consequences  described in Sections 6.1, 6.2 or 6.3, whichever is
applicable.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.1      Death
of Participant Prior to Normal Termination Date. If a Participant continues to
participate in the Program until his or her  participation
terminates  due to
death  (as  provided  in  Section  6.0(a))  prior
to attainment of his or her Normal  Termination Date, then effective
as of the date of death:

      

               (a)      The  Company  shall  have
no  further  obligation  to make any
premium  payments with respect to the Insurance  Policy on
the Participant's life pursuant to Section 5.1.

      

               (b)      The  Policyholder's  Beneficiary  shall
be entitled to receive the
life  insurance  benefit  payable by the Insurer
under the Insurance Policy,  subject to any
binding  settlement  options elected by the Policyholder
prior to the Participant's death.

      

               (c)      The  restrictions  in  Section  4.1  on  the  Policyholder  or
Assignee  pertaining  to the exercise of
certain  incidents of ownership of the Insurance  Policy on
the  Participant's  life (e.g., loans and withdrawals) shall
no longer apply.

      

      6.2      Attainment
of Normal  Termination  Date. If a
Participant  continues to participate in the Program until his or her
participation terminates by reason of his or
her  attainment  of
the  Normal  Termination  Date (as
provided  in  Section  6.0(b)),  then  effective  as  of  the  date
of termination of participation:

      

               (a)      The  Company  shall  have
no  further  obligation  to make any
premium  payments with respect to the Insurance  Policy on
the Participant's life pursuant to Section 5.1.

      

               (b)      The  Insurance  Policy
will have  sufficient  cash  value,  as
determined using
reasonable  actuarial  assumptions  chosen by the
Company in its sole discretion,  to provide life insurance
coverage   throughout   the   Participant's   remaining   life
expectancy.

      

               (c)      The  restrictions  in  Section  4.1  on  the  Policyholder  or
Assignee  pertaining  to the exercise of
certain  incidents of ownership of the Insurance  Policy on
the  Participant's  life  (e.g., loans and
withdrawals) shall no longer apply.

      

      6.3      Discontinuance
of Participation  Prior to Normal Termination Date. If a
Participant's  participation  in  the  Program  terminates  due  to
the occurrence  of any of the events  described in
Section  6.0(c)  through
Section  6.0(i),  inclusive,  then  effective  as
of the  date  of such termination of
participation:

      

               (a)      The  Company  shall  have
no  further  obligation  to make any
premium  payments with respect to the Insurance  Policy on
the Participant's life pursuant to Section 5.1.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

               (b)      The
Participant,  Policyholder, and any Assignee shall have no further
rights under the Program and shall only be entitled to  the
Insurance  Policy cash value as of the date of termination
of  participation  in the Program.  The
Company  shall have no obligation  to
pay  additional  premiums or increase  the cash
value so as to provide cash values  sufficient to continue any level
of coverage  under the
Insurance  Policy  throughout the
Participant's   remaining  life   expectancy.   The  Insurance  Policy's  cash
value  (whether  above or below
any  estimates,  projections
or  illustrations)  shall be limited solely to the
cash  value  of  the  Insurance  Policy  on  the  date  of
the Participant's termination of participation in the Program.

      

               (c)      The  restrictions  in  Section  4.1  on  the  Policyholder  or
Assignee  pertaining  to the exercise of
certain  incidents of ownership of the Insurance  Policy on
the  Participant's  life (e.g., loans and withdrawals) shall
no longer apply.

      

      

      Section  7.

      Claims
and Appeals

      

      7.0      Claims.  A
person who believes that he or she is being denied a benefit  to which
he or she is entitled under this Program (hereinafter referred to as
a  "Claimant")  may file a written  request for
such benefit with  the Company's Executive Human
Resources  Department,  setting forth his or her claim. The
request must be addressed to the Company's  Executive
Human  Resources  Department at its
then  principal  place of
business.   Notwithstanding  the
foregoing,  any Beneficiary's claim for payment
of  life  insurance  proceeds from an
Insurance  Policy on a  Participant's life shall not
be  considered a claim for benefits  under this
Program.  Any such  claim for
life  insurance  proceeds  should be filed with
the  Insurer in accordance  with the terms
and  provisions of the applicable Insurance Policy.

      

      7.1      Claim
Decision.  Upon receipt of a claim, the Company's Executive
Human  Resources  Department  shall advise
the  Claimant  that a reply will be
forthcoming  within ninety (90) days and shall,  in
fact,  deliver such reply within
such  period.  The  Company's  Executive  Human  Resources
Department  may,  however,  extend  the  reply  period  for  up  to  an
additional ninety (90) days for reasonable cause.

      

               If
the claim is  denied  by
the Company's  Executive  Human  Resources  Department,  in  whole  or  in  part,  the  Company's  Executive  Human  Resources  Department  shall
provide a written  response using language calculated to be understood
by the Claimant and setting forth:  (a) the  specific reason
or reasons for such denial; (b) specific  references to pertinent
provisions of this Program on which such denial is based; (c) a description of
any additional  material or information  necessary for the
Claimant to perfect his or her claim and an explanation of why such material or
such information is necessary;  (d) appropriate information as to the
steps to be taken if the Claimant  wishes to submit the claim
for  review;  and (e) the time  limits
for  requesting  a review  under Section 7.2 and
for review under Section 7.3.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.2      Request  for  Review.  Within  sixty
(60) days after the receipt by the Claimant of the
written  opinion  described  above,  the  Claimant  may  request
in writing that the  Administrator  review the determination
of  the Company's Executive Human
Resources  Department.  Such request must  be
addressed to the  Administrator  at the address for giving
notice to the Administrator designated in Section 9.3. The Claimant or his or
her  duly authorized  representative may, but need not,
review the pertinent  documents and submit  issues and
comments in writing for  consideration  by the
Administrator.  If the Claimant does not request a review of
the  Company's Executive Human
Resources  Department's  determination by the
Administrator  within such sixty (60) day period, the Claimant shall
be  barred and estopped from challenging the determination of the
Company's Executive Human Resources Department.

      

      7.3      Review
of Decision.  Within  sixty (60) days after
the  Administrator's receipt of a
request  for  review,  the  Administrator  will
review the determination  of the Company's  Executive Human
Resources  Department.  After  considering  all  materials  presented  by  the  Claimant,   the
Administrator  will  render  a  written  opinion,  written  in
a manner designed to be understood  by the
Claimant,  setting forth the specific reasons for
the  decision
and  containing  specific  references  to
the  pertinent provisions of this Program on which the decision is
based. If special  circumstances  require  that
the sixty (60) day time period be  extended, the Administrator will so
notify the Claimant and will render  the decision as soon as
possible,  but no later than one hundred twenty (120) days after
receipt of the request for review.

      

               The  Administrator  shall
serve as the final review committee under the  Program and shall have
sole
and  complete  discretionary  authority  to
determine  conclusively  for all parties,  and
in  accordance  with the  terms of the documents
or  instruments  governing the Program,  any and
all  questions   arising  from   administration   of  the  Program  and
interpretation  of  all  Program   provisions,   determination  of  all  questions   relating  to  participation  of  Eligible   Executives  and
eligibility  for benefits,  determination  of all
relevant  facts,  the  amount and type
of  benefits  payable to
any  Participant,  Assignee
or  Beneficiary,  and  the  construction  of  all  terms  of  the  Program.  Decisions
by the  Administrator  shall be conclusive and binding on
all parties and not subject to further review.

      

               In
any case, a  Participant  may have further  rights
under
ERISA.  The  Program  provisions  require  that  Participants  pursue  all
claim and appeal rights described above before they seek any other legal
recourse  regarding claims for benefits.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section  8.

      Amendment
and Termination

      

      8.0      Continuation   of  Program.   The  Company  does  not   guarantee   the  continuation
of the Program or any benefits during  employment or at or during
retirement, nor does the Company guarantee any specific level
of  benefits.  Benefits  are  provided  under
the Program at the  Company's  discretion  and do
not create a
contract  of  employment.  Neither  the
establishment  nor the  continuance  of the Plan
shall be  construed as conferring  any legal rights upon
any  Eligible  Executive or any other  person for
continuation of employment,  nor shall such establishment
or  continuance  interfere  with the right of the
Company to discharge  any  Eligible Executive without regard
to the existence of the Program.  The Company  intends to
continue  the
Program  indefinitely;  however,  the  Board  reserves
the right to amend or terminate the Program at any time  pursuant to
Section 8.1.

      

      8.1      Amendment
or Termination. The Board or pursuant to delegated
authority,  the  Chairman  of
the  Board  (or in
his  absence  the  Executive  Vice  President
- Human Resources)  ("Delegate"),  may amend, modify,
suspend  or  change  the  Program  from  time
to  time,  and the  Board  (or
its  Delegate) may terminate the Program at any time. Program
amendments may include,  but are not limited to, elimination or
reduction in the level or type of benefits provided to any class or classes of
employees.

      

      

      Section  9.

      General
Provisions

      

      9.0      Named
Fiduciary.  The  Administrator is hereby designated as the
"named  fiduciary" under this Program. The named fiduciary shall have
authority  to control and manage the operation and administration of
this Program.

      

      9.1      Effective  Date.
The effective date of this Program shall be October 1, 1999.

      

      9.2      Calendar  Year  Program.  All
Program  records shall be maintained on a calendar-year basis,
beginning January 1 and ending December 31, except that
Program  records  for the year 1999 shall be maintained for
the period beginning October 1, 1999 and ending December 31, 1999.

      

      9.3      Notice
Under  Program.  Any notice to be given under this Program
shall be in  writing  and  shall be either
delivered  in person or mailed by United States
Mail,  first-class  postage pre-paid.  If notice
is to be given to the  Administrator  by mail, such notice
shall be addressed as
indicated  below  and  mailed  to
the  Administrator  at the  following
address:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Executive
Vice President - Human Resources

      AT&T
Corp.

      295 North
Maple Avenue

      Basking
Ridge NJ 07920

      

               If
notice is to be given to a Participant,  Policyholder or Assignee by
United States Mail, such notice shall be addressed to the address
shown  as
such  Participant's,  Policyholder's  or
Assignee's  address then on  file with the Company's
Executive Human Resources Department. Any
party  may  change  the  address  to
which  notices  shall be mailed by giving written notice of
such change of address.

      

      9.4      Binding  Effect.  This  Program  shall
be  binding  upon the  Company's successors and
assigns, and upon the Participants, the Policyholders, and their Assignees,
Beneficiaries,  heirs, executors, and administrators.

      

      9.5      Welfare
Plan Under ERISA.  The Program is intended to constitute an "employee
welfare benefit plan" within the meaning of Section 3(1) of ERISA, covering a
select group of management or highly compensated employees.

      

      9.6      Plan
Document.  This Program document is the plan document required by
ERISA.  The  information   contained  herein  provides  the  final  and  exclusive  statement  of
the  terms of
the  Program.  Unless  otherwise  authorized
by the Board or its delegate,  no amendment or  modification
to this Program shall be effective until reduced to writing and adopted pursuant
to Section 8.1. This document legally governs the operation of  the
Program,  and any claim of right
or  entitlement  under the Program shall be
determined  solely in accordance with its
provisions  pursuant  to
the  provisions  of  Section  7. To
the  extent  that  there are any
inconsistencies  between  the  terms  of
the  Insurance  Policy  or any
related  materials  and the terms of
this  document,  the terms of this
document  shall  control and govern the  operation
of the  Program. No other evidence, whether written or oral, shall be
taken into account in determining  the  right of
an  Eligible  Executive,  a  Participant,
a Policyholder,  a  Beneficiary  or an
Assignee,  as  applicable,  to any benefit of any
type provided under the Program.

      

      9.7      Governing  Law.
To the extent not preempted by applicable  federal law, the
Program  shall be  governed by
and  construed  and  interpreted  in
accordance  with the laws of the State of New
Jersey  (irrespective  of the choice of laws principles of
the State of New Jersey).

      

      9.8      Severability.  If
any  provision  of this  Program  or
the  application thereof  to
any  person  or  circumstance  shall  be
held by a court of
competent  jurisdiction  to  be  invalid  or  unenforceable
under any applicable law, such event  shall not affect or render
invalid or unenforceable  he remainder  of
the  Program and shall not affect the application  of
any  provision  of the Program to any
other  person or circumstance.

      

      9.9      Headings.  The
headings and subheadings preceding the Sections of this Program have
been  inserted solely as a matter of convenience and reference, and
shall not, in any manner, define or limit the scope or intent of any provision
of this Program.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9.10     Procedural
Rules. The Administrator shall establish rules, forms and procedures for the
administration of this Program from time to time.

      

      9.11     Construction.  The
use of the singular form herein shall be deemed to include the plural form, and
vice versa, as appropriate. All references to Sections contained herein refer to
Sections of this Program, unless otherwise stated. The use of the words
"hereof," "herein," "hereunder," and words of similar import shall refer to this
entire Program, and not to
any  particular  Section,  subsection,  clause,  paragraph  or
other subdivision  of this  Program,  unless
the  context  clearly  indicates
otherwise.  The word "or" shall not be
exclusive;  "may  not"  is prohibitive and not
permissive.

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