Document:

Exhibit 10-k(i)

AT&T INC.

CASH DEFERRAL PLAN

 

Article 1 − Statement of Purpose 

The purpose of the Cash Deferral Plan (“Plan”) is to provide
savings opportunities to a select group of management employees of AT&T
Inc. (“AT&T”) and its Subsidiaries. 

Article 2 − Definitions 

For the purpose of this Plan, the following words and phrases
shall have the meanings indicated, unless the context indicates otherwise: 

Annual Bonus.  The award designated the “Annual Bonus” by AT&T
(including but not limited to an award that may be paid in more frequent
installments than annually), together with any individual discretionary award
made in connection therewith, or comparable awards, if any, determined by
AT&T to be used in lieu of these awards. 

Base Compensation.  The following types of cash-based compensation
paid by an Employer (but not including payments made by a non-Employer, such as
state disability payments), before reduction due to any contribution pursuant
to this Plan or reduction pursuant to any deferral plan of an Employer,
including but not limited to a plan that includes a qualified cash or deferral
arrangement under Section 401(k) of the Code: 

(a)  base salary; 

(b)  lump sum payments in lieu of a base salary increase; and 

(c)  Annual Bonus. 

Payments by an Employer under a disability plan made in lieu of any
compensation described above, shall be deemed to be a part of the respective
form of compensation it replaces for purposes of this definition.  Base
Compensation does not include zone allowances or any other geographical
differential and shall not include payments made in lieu of unused vacation or
other paid days off, and such payments shall not be contributed to this Plan. 

Determinations by AT&T (the Committee with respect to Officer
Level Employees) of the items that make up Base Compensation shall be final. 
The Committee may, from time to time, add or subtract types of compensation to
or from the definition of “Base Compensation” provided, however, any such
addition or subtraction shall be effective only with respect to the next period
in which a Participant may make an election to establish a Cash Deferral
Account.  Base Compensation that was payable in a prior Plan Year but paid in a
later Plan Year shall not be used to determine Employee Contributions in the
later Plan Year. 

 

 

 

Business Day.  Any day during regular
business hours that AT&T is open for business. 

Cash Deferral Account or Account.  The Account or Accounts
established annually by an election by a Participant to make Employee
Contributions to the Plan with each account relating to a Plan Year.  For each
Plan Year after 2008, there shall be a separate Cash Deferral Account for Base
Compensation (excluding Annual Bonus) and a separate Cash Deferral Account for
the Short Term Incentive Award and/or Annual Bonus.  Earnings on each of
Employee Contributions shall accrue to the respective Cash Deferral Accounts
where they are earned. 

Change in Control.  With respect to AT&T’s direct and indirect
ownership of an Employer, a “Change in the effective control of a Corporation,”
as defined in Treasury Regulation Section 1.409A−3(i)(5)(vi)(A)(1),
regardless of whether the Employer is a corporation or non-corporate entity as
permitted by the regulation, and using “50 percent” in lieu of “30 percent” in
such regulation.  A Change in Control will not apply to AT&T itself. 

Chief Executive Officer.  The Chief Executive Officer of AT&T
Inc. 

Code.  References to the Code shall be to provisions of the
Internal Revenue Code of 1986, as amended, including regulations promulgated
thereunder and successor provisions.  Similarly, references to regulations
shall include amendments and successor provisions. 

Committee.  The Human Resources Committee of the Board of
Directors of AT&T Inc. 

Disability.  Absence of an Employee from work with an Employer
under the relevant Employer’s disability plan. 

Eligible Employee.  An Employee who: 

(a) is a full or part time, salaried Employee of AT&T or an
Employer in which AT&T has a direct or indirect 100% ownership interest and
who is on active duty or Leave of Absence (but only while such Employee is
deemed by the Employer to be an Employee of such Employer); 

(b) is, as determined by AT&T, a member of Employer’s “select
group of management or highly compensated employees” within the meaning of the
Employee Retirement Income Security Act of 1974, as amended, and regulations
thereunder (“ERISA”), which is deemed to include each Officer Level  Employee;
and 

(c) has an employment status which has been approved by AT&T
to be eligible to participate in this Plan or is an Officer Level Employee. 

Notwithstanding the foregoing, AT&T (the Committee with
respect to Officer Level Employees) may, from time to time, exclude any
Employee or group of Employees from being deemed an “Eligible Employee” under
this Plan. 

In the event a court or other governmental authority determines
that an individual was improperly excluded from the class of persons who would
be permitted to make Employee Contributions during a particular time for any
reason, that individual shall not be permitted to 

 

 

 

make such contributions for purposes of
the Plan for the period of time prior to such determination. 

Employee.  Any person employed by an Employer and paid on an
Employer’s payroll system, excluding persons hired for a fixed maximum term and
excluding persons who are neither citizens nor permanent residents of the
United States, all as determined by AT&T.  For purposes of this Plan, a
person on Leave of Absence who otherwise would be an Employee shall be deemed
to be an Employee.

Employee Contributions.  Amounts credited to a Cash Deferral
Account pursuant to Section 4.1 (Election to Make Contributions) of the Plan.

Employer.  AT&T Inc. or any of its Subsidiaries. 

Incentive Award.  A cash award paid by an Employer (and not by a
non-Employer, such as state disability payments) under the Short Term Incentive
Plan or any successor plan, the 2006 Incentive Plan or any successor plan, or
any other award that the Committee specifically permits to be contributed to a
Cash Deferral Account under this Plan (regardless of the purpose of the award).

Leave of Absence.  Where a person is absent from employment with
an Employer on a leave of absence, military leave, sick leave, or Disability,
where the leave is given in order to prevent a break in the continuity of term
of employment, and permission for such leave is granted (and not revoked) in
conformity with the rules of the Employer that employs the individual, as
adopted from time to time, and the Employee is reasonably expected to return to
service.  Except as set forth below, the leave shall not exceed six (6) months
for purposes of this Plan, and the Employee shall Terminate Employment upon
termination of such leave if the Employee does not return to work prior to or
upon expiration of such six (6) month period, unless the individual retains a
right to reemployment under law or by contract.  A twenty-nine (29) month
limitation shall apply in lieu of such six (6) month limitation if the leave is
due to the Employee being “disabled” (within the meaning of Treasury Regulation
§1.409A−3(i)(4)).  A Leave of Absence shall not commence or shall be
deemed to cease under the Plan where the Employee has incurred a Termination of
Employment.

Officer Level Employee.  Any executive officer of AT&T, as
that term is used under the Securities Exchange Act of 1934, as amended, and
any Employee that is an “officer level” Employee for compensation purposes as
shown on the records of AT&T. 

Participant.  An Employee or former Employee who participates in
this Plan. 

Plan Interest Rate.  An annual rate of interest equal to Moody’s
Long-Term Corporate Bond Yield Average for the September preceding the calendar
year during which the interest rate will apply.  The Committee may choose
another method of calculating the Plan Interest Rate, but such other method may
only apply to Cash Deferral Units that Participants have not yet elected to
establish. 

 

 

 

Plan Year.  Each of the following shall be
a Plan year:  the period from January 1, 2005 through January 15, 2006; the
period January 16, 2006 through December 31, 2006; and, for all later Plan
Years, it is defined as the period from January 1 through December 31. 

Retirement or Retire.  Termination of Employment on or after the
date the Participant has attained one of the following combinations of age and
Net Credited Service: 

Net Credited Service                           Age

10 years or more                  65 or older

20 years or more                  55 or older

25 years or more                  50 or older

30 years or more                  Any age

For purposes of this Plan only, Net Credited Service shall be
calculated in the same manner as “Pension Eligibility Service” under the
AT&T Pension Benefit Plan – Nonbargained Program (“Pension Plan”), as the
same existed on October 1, 2008, except that service with an Employer shall be
counted as though the Employer were a “Participating Company” under the Pension
Plan and the Employee was a participant in the Pension Plan. 

Senior Manager.  Any Employee who is a “senior manager” for
compensation purposes as shown on the records of AT&T.

Short Term Incentive Award.  A cash award paid by an Employer (and
not by a non-Employer, such as state disability payments) under the Short Term
Incentive Plan or any successor plan, together with any individual
discretionary award made in connection therewith; an award under a similar plan
intended by the Committee to be in lieu of an award under such Short Term Incentive
Plan, including, but not limited to, Performance Units granted under the 2006
Incentive Plan or any successor plan.  It shall also include any other award
that the Committee designates as a Short Term Incentive Award specifically for
purposes of this Plan (regardless of the purpose of the award) provided the
deferral election is made in accordance with Section 409A. 

Specified Employee.  Any Participant who is a “Key Employee” (as
defined in Code Section 416(i) without regard to paragraph (5) thereof), as
determined by AT&T in accordance with its uniform policy with respect to
all arrangements subject to Code Section 409A, based upon the 12-month period
ending on each December 31st (such 12-month period is referred to below as the
“identification period”).  All Participants who are determined to be Key
Employees under Code Section 416(i) (without regard to paragraph (5) thereof)
during the identification period shall be treated as Key Employees for purposes
of the Plan during the 12-month period that begins on the first day of the 4th
month following the close of such identification period. 

Subsidiary.  Any corporation, partnership, venture or other entity
or business with which AT&T would be considered a single employer under
Sections 414(b) and (c) of the Code, using 50% as the ownership threshold as
provided under Section 409A of the Code. 

 

 

Termination of Employment.  References
herein to “Termination of Employment,” “Terminate Employment” or a similar
reference, shall mean the event where the Employee has a “separation from service,”
as defined under Section 409A, with all Employers.  For purposes of this Plan,
a Termination of Employment with respect to an Employer also shall be deemed to
occur when such Employer incurs a Change in Control. 

Article 3 − Administration of the
Plan 

3.1          The Committee.

Except as delegated by this Plan or by the
Committee, the Committee shall be the administrator of the Plan and will
administer the Plan, interpret, construe and apply its provisions and all
questions of administration, interpretation and application of the Plan,
including, without limitation, questions and determinations of eligibility
entitlement to benefits and payment of benefits, all in its sole and absolute
discretion.  The Committee may further establish, adopt or revise such rules
and regulations and such additional terms and conditions regarding
participation in the Plan as it may deem necessary or advisable for the
administration of the Plan.  References in this Plan to determinations or other
actions by AT&T, herein, shall mean actions authorized by the Committee,
the Chief Executive Officer, the Senior Executive Vice President of AT&T in
charge of Human Resources, or their respective successors or duly authorized
delegates, in each case in the discretion of such person.  All decisions by the
Committee, its delegate or AT&T, as applicable, shall be final and binding.

3.2          Claims and Appeals.

(a)           Claims.  A person who believes that he or she is
being denied a benefit to which he or she is entitled under this Plan
(hereinafter referred to as a “Claimant”) may file a written request for such
benefit with the Executive Compensation Administration Department, setting
forth his or her claim. The request must be addressed to the AT&T Executive
Compensation Administration Department at its then principal place of business.

(b)           Claim Decision.  Upon receipt of a claim, the
AT&T Executive Compensation Administration Department shall review the
claim and provide the Claimant with a written notice of its decision within a
reasonable period of time, not to exceed ninety (90) days, after the claim is
received. If the AT&T Executive Compensation Administration Department
determines that special circumstances require an extension of time beyond the
initial ninety (90)-day claim review period, the AT&T Executive
Compensation Administration Department shall notify the Claimant in writing
within the initial ninety (90)-day period and explain the special circumstances
that require the extension and state the date by which the AT&T Executive
Compensation Administration Department expects to render its decision on the
claim. If this notice is provided, the AT&T Executive Compensation
Administration Department may take up to an additional ninety (90) days (for a
total of one hundred eighty (180) days after receipt of the claim) to render
its decision on the claim. 

If the claim is denied by the AT&T Executive Compensation
Administration Department, in whole or in part, the AT&T Executive
Compensation Administration Department shall provide a written decision using
language calculated to be understood by the Claimant and 

 

 

setting forth:  (i) the specific reason or
reasons for such denial; (ii) specific references to pertinent provisions of
this Plan on which such denial is based; (iii) 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; (iv)
a description of the Plan’s procedures for review of denied claims and the
steps to be taken if the Claimant wishes to submit the claim for review; (v)
the time limits for requesting a review of a denied claim under this section
and for conducting the review under this section; and (vi) a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA if the
claim is denied following review under this section. 

(c)           Request for Review. Within sixty (60) days after the
receipt by the Claimant of the written decision on the claim provided for in
this section, the Claimant may request in writing that the Committee review the
determination of the AT&T Executive Compensation Administration
Department.  Such request must be addressed to the Committee at the address for
giving notice under this Plan.  To assist the Claimant in deciding whether to
request a review of a denied claim or in preparing a request for review of a denied
claim, a Claimant shall be provided, upon written request to the Committee and
free of charge, reasonable access to, and copies of, all documents, records and
other information relevant to the claim.  The Claimant or his or her duly
authorized representative may, but need not, submit a statement of the issues
and comments in writing, as well as other documents, records or other
information relating to the claim for consideration by the Committee.  If the
Claimant does not request a review of the AT&T Executive Compensation
Administration Department’s decision by the Committee within such sixty
(60)-day period, the Claimant shall be barred and estopped from challenging the
determination of the AT&T Executive Compensation Administration Department.

(d)           Review of Decision. Within sixty (60) days after the
Committee’s receipt of a request for review, the Administrator will review the
decision of the AT&T Executive Compensation Administration Department.  If
the Committee determines that special circumstances require an extension of
time beyond the initial sixty (60)-day review period, the Committee shall
notify the Claimant in writing within the initial sixty (60)-day period and
explain the special circumstances that require the extension and state the date
by which the Committee expects to render its decision on the review of the
claim.  If this notice is provided, the Committee may take up to an additional
sixty (60) days (for a total of one hundred twenty (120) days after receipt of
the request for review) to render its decision on the review of the claim. 

During its review of the claim, the Committee shall:

(1)           Take into account all comments, documents, records,
and other information submitted by the Claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial
review of the claim conducted pursuant to this section;

(2)           Follow reasonable procedures to verify that its
benefit determination is made in accordance with the applicable Plan documents;
and

 

 

 

(3)           Follow reasonable procedures
to ensure that the applicable Plan provisions are applied to the Participant to
whom the claim relates in a manner consistent with how such provisions have
been applied to other similarly-situated Participants. 

After considering all materials presented by the Claimant, the
Committee will render a decision, written in a manner designed to be understood
by the Claimant.  If the Committee denies the claim on review, the written
decision will include (i) the specific reasons for the decision; (ii) specific
references to the pertinent provisions of this Plan on which the decision is
based; (iii) a statement that the Claimant is entitled to receive, upon request
to the Committee and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the claim; and (iv) a
statement of the Claimant’s right to bring a civil action under Section 502(a)
of ERISA. 

The Committee shall serve as the final review committee under the
Plan and shall have sole and complete discretionary authority to administer,
interpret, construe and apply the Plan provisions, and determine all questions
of administration, interpretation, construction, and application of the Plan,
including questions and determinations of eligibility, entitlement to benefits
and the type, form and amount of any payment of benefits, all in its sole and
absolute discretion.  The Committee shall further have the authority to
determine all relevant facts and related issues, and all documents, records and
other information relevant to a claim conclusively for all parties, and in
accordance with the terms of the documents or instruments governing the Plan.
Decisions by the Committee shall be conclusive and binding on all parties and
not subject to further review. 

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

Article 4 − Contributions 

4.1          Election to Make Contributions.

(a)  The Committee shall establish dates and other conditions for
participation in the Plan and making contributions as it deems appropriate. 
Except as otherwise provided by the Committee, each year an Employee who is an
Eligible Employee as of September 30 may thereafter make an election on or
prior to the last Business Day of the immediately following November (such
election shall be cancelled if the Employee is not an Eligible Employee on the
last day such an election may be made) to contribute on a pre-tax basis,
through payroll deductions, any combination of the following: 

(1)  From 1% to 50% (in whole percentage increments) of the
Participant’s monthly Base Compensation, other than Annual Bonus, during the
calendar year (the Plan Year for such contributions) following the calendar
year of such election.  Employees who are below the level of Senior Manager, as
shown on the records of AT&T at the time of the election, may contribute no
more than 25% or such other amount as determined by AT&T. 

(2)  Up to 95% (in whole percentage increments) of a Short Term
Incentive Award, or up to 50% (in whole percentage increments) of Annual Bonus
(25% for Employees who are below 

 

 

 

the level of Senior Manager), in each case
such contributions shall be made during the second calendar year (which is the
Plan Year for such contributions) following the year of such election, except
that in 2008 a separate election may be made with respect to contributions to
be made in 2009.  An Employee may make such an election with respect to the
type of Award (Short Term Incentive Award or Annual Bonus) that the Employee is
under as of the time the Employee’s eligibility to make such election is
determined.  If because of a promotion or otherwise, the Employee receives a
different type of Award instead of or in partial or full replacement for the
type of Award subject to the Employee’s election for the relevant Plan Year, the
election will apply to the other Award as well, including but not limited to
any individual discretionary award related thereto. 

(b)  The Committee may permit an Eligible Employee to make an
election to make other contributions under this Plan with compensation other
than Base Compensation or Short Term Incentive Awards on such terms and
conditions as such Committee may permit from time to time provided that any such
election is made in accordance with Section 409A of the Code. 

(c)  Notwithstanding anything to the contrary in this Plan, no
election shall be effective to the extent it would permit an Employee
Contribution or distribution to be made that is not in compliance with Section
409A of the Code.  To the extent such election related to Employee
Contributions that complied with such statute and regulations, thereunder, that
portion of the election shall remain valid, except as otherwise provided under
this Plan. 

(d)  To the extent permitted by Section 409A of the Code, AT&T
may refuse or terminate, in whole or in part, any election to make
contributions to the Plan at any time; provided, however, only the Committee
may take such action with respect to persons who are Officer Level Employees. 

(e)  In the event the Participant takes a hardship withdrawal
pursuant to Treasury Regulation §1.401(k)−1 from a benefit plan qualified
under the Code and sponsored by an Employer, any election to make Employee
Contributions of Annual Bonus or Short Term Incentive Award during 2020 by such
Participant shall be cancelled on a prospective basis. [This Section 4.1(e) is
deleted effective January 1, 2020.]

(f) To the extent a Participant makes contributions to the
Plan where the payment of which would be deductible by AT&T under Section
162(m) of the Code without regard to the size of the distribution, such
contributions and earnings thereon shall be distributed first. 

(g)  With respect to a Plan Year, an Employee may elect to (1)
make Employee Contributions of Base Compensation other than Annual Bonus to
this Plan but only if the Employee elects to contribute at least 6% of Base
Compensation other than Annual Bonus for the same Plan Year to the Stock
Purchase and Deferral Plan and/or (2) make Employee Contributions of Annual
Bonus to this Plan but only if the Employee elects to contribute at least 6% of
Annual Bonus for the same Plan Year to the Stock Purchase and Deferral Plan. 

 

 

 

 

4.2          Contributions to a Cash
Deferral Account.

(a)  Employee Contributions shall be made pursuant to a proper
election, only during the Participant’s lifetime; provided, however, with
respect to Employee Contribution elections made prior to 2007, the Employee
must remain an Eligible Employee while making any such contributions.  In the
event of a Change in Control of an Employer, subsequent compensation from the
Employer may not be contributed to the Plan.  The Employer may continue the
then current elections of the participants under a subsequent plan in order to
comply with applicable tax laws. 

(b)  A Participant’s contributions shall be credited to the
Participant’s Cash Deferral Account on the day the compensation – from which
the contribution is to be deducted – is to be paid (“paid,” as used in this
Plan, includes amounts contributed to the Plan that would have been paid were
it not for an election under this Plan), as determined by the relevant
Employer.  Earnings on each Cash Deferral Account shall be recorded on
Participant’s statements quarterly.  The Committee may modify or change this
paragraph (b) from time to time. 

4.3          Earnings on Cash Deferral Accounts.

During a calendar year, the Participant’s Cash Deferral Account
shall accrue interest on amounts held by such Account at the Plan Interest Rate
for such year, compounded quarterly on the last day of each quarter.  Interest
will accrue on unpaid amounts in the Cash Deferral Account from the date
credited to such Account. 

Article 5 − Distributions 

5.1          Distributions of Cash Deferral Accounts.

(a)  Initial Election with Respect to a Cash Deferral Account.  At
the time the Participant makes an election to make Employee Contributions with
respect to a Cash Deferral Account, the Participant shall also elect the
calendar year of the distribution of the Cash Deferral Account and the number
of installments.  The Participant may elect either of the following: 

(i)  Specified Date Distribution.  That
the distribution of the Cash Deferral Account commence in the calendar year
specified by the Participant, but no later than the 10th calendar year after
the Plan Year the Cash Deferral Account commenced, in up to Ten (10)
installments.  However, for purposes of Initial Elections with respect to Plan
Years prior to 2009 only, in the event the Participant Terminates Employment
prior to the calendar year of the distribution, the Cash Deferral Account must
commence distribution the calendar year following the calendar year of the
Termination of Employment, with the same number of installments, unless the
Employee has made an irrevocable election under (b), below. For example, if the
Participant elected a 2010 distribution with five (5) installments, but
Terminated Employment in 2007, the Cash Deferral Account would commence
distribution in 2008.

 

(ii)  Retirement Distribution.  That the distribution of the Cash
Deferral Account commence the calendar year following the calendar year of
Retirement in up to (10) installments.  If the Participant Terminates
Employment while not Retirement eligible, the distribution shall commence the
calendar year following the calendar year of Termination of Employment, but 

 

 

 

shall be limited to five (5)
installments.  This distribution alternative will not be available for Initial
Elections made after 2007. 

If no timely distribution election is made by the Participant,
then the Participant will be deemed to have made an election to have the Cash
Deferral Account distributed in a single installment in the first calendar year
after the calendar year Employee Contributions were first made. 

(b)  Election to Delay a Specified Date
Distribution. 

(i)                 
 If an Employee elected a Specified Date Distribution for a Cash
Deferral Account, the Employee may elect to delay the Specified Date
Distribution commencement date and, as part of such delay election elect a new
number of installments; provided, however, Termination of Employment will not
accelerate the distribution, unlike the initial deferral election.  Unless
otherwise provided by AT&T, the election of a new distribution commencement
date for a Cash Deferral Account must be made on or after October 16, and on or
before the last Business Day of the next following December, of the calendar
year that is the second calendar year preceding the calendar year in which the
distribution would otherwise commence.  

 

(ii)               
 To make this election, the Participant must be an Employee that
is, as determined by AT&T, a member of Employer's “select group of
management or highly compensated employees” within the meaning of ERISA on the
September 30 immediately preceding such election and on the day of such
election.  The new distribution election must delay commencement of the
distribution by five (5) years.  

 

(iii)             
 An election to delay the Specified Date Distribution commencement
date of a Cash Deferral Account may not be made in the same calendar year the
election to establish the Cash Deferral Account is made.  Notwithstanding
anything to the contrary in this Plan: 

 

a.       
 an election to delay the Specified Date Distribution commencement
date must be made at least 12 months prior to the date of the first scheduled
payment under the prior distribution election, and 

b.      
 the election shall not take effect until at least 12 months after
the date on which the election is made. 

 

(c)  A Participant’s Cash Deferral Account shall be distributed to
the Participant on March 10 (or as soon thereafter as administratively
practicable, as determined by AT&T) of the calendar year elected by the
Participant for the Account.  In the event the distribution is to be made to a
“Specified Employee” as a result of the Participant’s Termination of Employment
(other than as a result of a Change in Control), the distribution shall not
occur until the later of such March 10 or six (6) months after the Termination
of Employment, except it shall be distributed upon the Participant’s earlier
death in accordance with this Plan.  The distributions shall continue annually
on each successive March 10 (or such other date as determined by AT&T)
until the number of installments elected by the Participant is reached.  In each
installment, AT&T shall distribute to the Participant that portion of the
Participant’s Cash 

 

 

 

Deferral Account that is equal to the
total dollar amount of the Participant’s Account divided by the number of
remaining installments. 

(d)  The Committee may establish other distribution alternatives
from time to time, but such alternatives may be offered no earlier than the
next period in which a Participant may make an election to establish a Cash
Deferral Account. 

 

5.2          Death of the Participant.

In the event of the death of a Participant, notwithstanding
anything to the contrary in this Plan, all undistributed Cash Deferral Accounts
shall be distributed to the Participant’s beneficiary in accordance with the
AT&T Rules for Employee Beneficiary Designations, as the same may be
amended from time to time, within the later of 90 days following such
determination or the end of the calendar year in which determination was made. 

 

5.3          Unforeseeable Emergency Distribution.  

If a Participant experiences an “Unforeseeable Emergency,” the
Participant may submit a written petition to AT&T (the Committee in the
case of Officer Level Employees), to receive a partial or full distribution of
his Cash Deferral Account(s).  In the event that AT&T (the Committee in the
case of Officer Level Employees), upon review of the written petition of the
Participant, determines in its sole discretion that the Participant has
suffered an “Unforeseeable Emergency,” AT&T shall make a distribution to
the Participant from the Participant’s Cash Deferral Accounts, on a pro-rata
basis, within the later of 90 days following such determination or the end of
the calendar year in which determination was made, subject to the following: 

(a)           “Unforeseeable Emergency” shall mean a severe
financial hardship to the Participant resulting from an illness or accident of
the Participant, the Participant’s legal spouse, the Participant’s beneficiary,
or the Participant’s dependent (as defined in Code Section 152, without regard
to Code Section 152(b)(1), (b)(2), and (d)(1)(B)); loss of the Participant’s
property due to casualty; or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant,
all as determined in the sole discretion of the Committee.  Whether a
Participant is faced with an Unforeseeable Emergency permitting a distribution
is to be determined based on the relevant facts and circumstances of each case,
but, in any case, a distribution on account of Unforeseeable Emergency shall
not be made to the extent that such emergency is or may be relieved through
reimbursement or compensation from insurance or otherwise, by liquidation of
the Participant’s assets, to the extent the liquidation of such assets would
not cause severe financial hardship, or by cessation of deferrals under the
Plan.

(b)           The amount of a distribution to be made because of
an Unforeseeable Emergency shall not exceed the amount reasonably necessary, as
determined by AT&T (the Committee in the case of Officer Level Employees)
in its sole discretion, to satisfy the emergency need (which may include
amounts necessary to pay any Federal, state, local, or foreign income taxes or 

 

 

 

penalties reasonably anticipated to result
from the distribution).  Determinations of the amount reasonably necessary to
satisfy the emergency need shall take into account any additional compensation
that is available if the plan provides for cancellation of a deferral election
upon a payment due to an Unforeseeable Emergency.  The determination of amounts
reasonably necessary to satisfy the Unforeseeable Emergency need is not
required to, but may, take into account any additional compensation that, due
to the Unforeseeable Emergency, is available under another nonqualified
deferred compensation plan but has not actually been paid, or that is available
due to the Unforeseeable Emergency under another plan that would provide for
deferred compensation except due to the application of the effective date
provisions under Treasury Regulation § 1.409A−6. 

(c)           Upon such distribution on account of an
Unforeseeable Emergency under this Plan, any election to make Employee
Contributions by such Participant shall be immediately cancelled, and the
Participant shall not be permitted to make a new election with respect to
Employee Contributions that would be contributed during the then current and
immediately following calendar year. 

5.4          Ineligible Participant.

Notwithstanding any other provisions of this Plan to the contrary,
if AT&T receives an opinion from counsel selected by AT&T, or a final
determination is made by a Federal, state or local government or agency, acting
within its scope of authority, to the effect that an individual’s continued
participation in the Plan would violate applicable law, then such person shall
not make further contributions to the Plan to the extent permitted by Section
409A of the Code. 

5.5          Conflict of Interest
Distribution.

AT&T may in its sole discretion accelerate a distribution(s) to the
Participant, provided he or she is no longer actively employed by AT&T: (a)
to the extent necessary for any Federal officer or employee in the executive
branch to comply with an ethics agreement with the Federal government or (b) to
the extent reasonably necessary to avoid the
violation of an applicable Federal, state, local, or foreign ethics law or
conflicts of interest law (including where such payment is reasonably necessary
to permit the service provider to participate in activities in the normal
course of his or her position in which the service provider would otherwise not
be able to participate under an applicable rule). Any such distribution may
only be made in accordance with Section 409A of the Code and the regulations
thereunder.

Article 6 − Transition Provisions 

6.1          2005 Cash Deferral Accounts.

Notwithstanding Article 4 to the contrary, if an Employee is an
Eligible Employee on September 30, 2004, the Employee may make an election
under Article 4 on or prior to December 15, 2004, with respect to the
establishment of a Cash Deferral Account for the contribution of Base
Compensation and/or Incentive Awards that would otherwise be paid during the
period from January 1, 2005, through January 15, 2006, which shall be the Plan
Year for such Cash Deferral Account. 

 

 

6.2          2007 Amendments.

Amendments made to the Plan on November 15, 2007, shall be
effective January 1, 2008, except for amendments to this Article 7, which shall
be effective upon adoption.  Any Participants electing prior to November 15,
2007, to make Employee Contributions in 2008 shall have their elections
canceled if they do not consent by December 14, 2007, to all prior amendments to
this Plan and to the Stock Purchase and Deferral Plan.  Subject to the
foregoing consent requirements, all Employee Contribution elections made prior
to 2008, including but not limited to elections to contribute cash with respect
to Performance Shares granted that would be distributed under the 2001
Incentive Plan or a successor plan, shall remain in force, subject to all other
terms of the amended Plan. 

6.3          2008 Amendments.  For the 2008 Plan Year, only Salary
and Short Term Incentive Awards paid after Termination of Employment may be
contributed to the Plan. Article 7 − Discontinuation, Termination,
Amendment. 

7.1          AT&T’s Right to Discontinue Offering Cash
Deferral Accounts. 

The Committee may at any time discontinue offerings of Cash
Deferral Accounts or contributions under the Plan.  Any such discontinuance
shall have no effect upon existing Cash Deferral Accounts or the terms or
provisions of this Plan as applicable to such Accounts. 

7.2          AT&T’s Right to Terminate Plan.

The Committee may terminate the Plan at any time.  Upon
termination of the Plan, contributions shall no longer be made under the Plan. 

After termination of the Plan, Participants shall continue to earn
interest on undistributed amounts and shall continue to receive all
distributions under this Plan at such time as provided in and pursuant to the
terms and conditions of Participant’s elections and this Plan.  Notwithstanding
the foregoing, the termination of the Plan shall be made solely in accordance
with Section 409A of the Code and in no event shall cause the accelerated
distribution of any Account unless such termination is effected in accordance
with Section 409A of the Code. 

7.3          Amendment.

The Committee may at any time amend the Plan in whole or in part;
provided, however, that no amendment, including but not limited to an amendment
to this section, shall be effective, without the consent of a Participant, to
alter, to the material detriment of such Participant, any of the Cash Deferral
Accounts of the Participant, other than as provided elsewhere in this section. 
For purposes of this section, an alteration to the material detriment of a
Participant shall include, but not be limited to, a material reduction in the
period of time over which the Participant’s Cash Deferral Account may be
distributed to a Participant, any reduction in the amounts credited to the
Participant’s Cash Deferral Accounts, or any reduction in the Plan Interest
Rate (other than as it may fluctuate in accordance with its terms) for Cash
Deferral Accounts previously elected by the Participant.  Any such consent may
be in a writing, telecopy, or e-mail or in another electronic format.  An
election to make Employee Contributions shall be conclusively deemed to be the
consent of the Participant to any and all amendments to the Plan prior to such
election, 

 

 

 

and such consent shall be a condition to
making any election with respect to Employee Contributions. 

The Plan is established in order to provide deferred compensation
to a select group of management and highly compensated employees with in the
meaning of Sections 201(2) and 301(a)(3) of ERISA.  To the extent legally
required, the Code and ERISA shall govern the Plan, and if any provision hereof
is in violation of an applicable requirement thereof, the Company reserves the
right to retroactively amend the Plan to comply therewith to the extent
permitted under the Code and ERISA.  The Company also reserves the right to
make such other changes as may facilitate implementation of Section 409A of the
Code.  Provided, however, that in no event shall any such amendments be made in
violation of the requirements of Section 409A of the Code. 

 

Article 8 − Miscellaneous 

8.1          Tax Withholding.

Upon a distribution from a Participant’s Cash Deferral Account,
AT&T shall withhold sufficient amounts to satisfy the minimum amount of
Federal, state, and local taxes required by law to be withheld as a result of
such distribution. 

8.2          Loyalty Conditions for Officer Level Employees and
Senior Managers.

Each Officer Level Employee or a Senior Manager who elects to make
Employee Contributions under Section 4.1 of this Plan shall be subject to the
agreements and conditions of this section.

(a)                
 By making an Employee
Contribution election under Section 4.1 of this Plan after September 1, 2009, a
Participant acknowledges that AT&T would be unwilling to provide for such
an election but for the loyalty conditions and covenants set forth in this
section, and that the conditions and covenants herein are a material inducement
to AT&T’s willingness to sponsor the Plan and to offer Plan benefits for
the Participants.  Accordingly, as a condition to making an Employee
Contribution election under Section 4.1 of this Plan after September 1, 2009,
each such electing Participant is deemed to agree that he shall not, without
obtaining the written consent of the Committee in advance, participate in
activities that constitute engaging in competition with AT&T or engaging in
conduct disloyal to AT&T, as those terms are defined in this section. 

 

 

 

Definitions.  For purposes of this section and of the
Plan generally:

(i)                 
 an “Employer Business”
shall mean AT&T Inc. and any of its Subsidiaries, or any business in which
they or any affiliate of theirs has a substantial ownership or joint venture
interest; 

(ii)               
 “engaging in
competition with AT&T” shall mean, while employed by AT&T or any of its
Subsidiaries, or within two (2) years after Participant’s Termination of
Employment, engaging by the Participant in any business or activity in all or
any portion of the same geographical market where the same or substantially
similar business or activity is being carried on by an Employer Business. 
“Engaging in competition with AT&T” shall not include owning a
non-substantial publicly traded interest as a shareholder in a business that
competes with an Employer Business.  “Engaging in competition with AT&T”
shall include representing or providing consulting services to, or being an
employee of, any person or entity that is engaged in competition with any
Employer Business or that takes a position adverse to any Employer Business. 

(iii)             
 “engaging in conduct
disloyal to AT&T” means, while employed by AT&T or any of its
Subsidiaries, or within two (2) years after Participant’s Termination of
Employment, (i) soliciting for employment or hire, whether as an employee or as
an independent contractor, for any business in competition with an Employer
Business, any person employed by AT&T or any of its Subsidiaries during the
one (1) year prior to the Participant’s Termination of Employment, whether or
not acceptance of such position would constitute a breach of such person’s
contractual obligations to AT&T or any of its Subsidiaries; (ii)
soliciting, encouraging, or inducing any vendor or supplier with which
Participant had business contact on behalf of any Employer Business during the
two (2) years prior to the Participant’s Termination of Employment (regardless
of the reason for that termination) to terminate, discontinue, renegotiate,
reduce, or otherwise cease or modify its relationship with AT&T or any of
its Subsidiaries; or (iii) soliciting, encouraging, or inducing any customer or
active prospective customer with whom Participant had business contact, whether
in person or by other media (“Customer”), on behalf of any Employer Business
during the two (2) years prior to the Participant’s Termination of Employment
(regardless of the reason for that termination), to terminate, discontinue,
renegotiate, reduce, or otherwise cease or modify its relationship with any
Employer Business, or to purchase competing goods or services from a business
competing with any Employer Business, or accepting or servicing business from
such Customer on behalf of himself or any other business.  “Engaging in conduct
disloyal to AT&T” shall also mean, disclosing Confidential Information to
any third party or using Confidential Information, other than for an Employer
Business, or failing to return any Confidential Information to the Employer
Business following termination of employment.

 

 

 

 

(iv)              
 “Confidential
Information” shall mean all information belonging to, or otherwise relating to,
an Employer Business, which is not generally known, regardless of the manner in
which it is stored or conveyed to Participant, and which the Employer Business
has taken reasonable measures under the circumstances to protect from
unauthorized use or disclosure.  Confidential Information includes trade
secrets as well as other proprietary knowledge, information, know-how, and
non-public intellectual property rights, including unpublished or pending
patent applications and all related patent rights, formulae, processes,
discoveries, improvements, ideas, conceptions, compilations of data, and data,
whether or not patentable or copyrightable and whether or not it has been
conceived, originated, discovered, or developed in whole or in part by
Participant.  For example, Confidential Information includes, but is not
limited to, information concerning the Employer Business’ business plans,
budgets, operations, products, strategies, marketing, sales, inventions,
designs, costs, legal strategies, finances, employees, customers, prospective
customers, licensees, or licensors; information received from third parties
under confidential conditions; or other valuable financial, commercial,
business, technical or marketing information concerning the Employer Business,
or any of the products or services made, developed or sold by the Employer
Business.  Confidential Information does not include information that (i) was
generally known to the public at the time of disclosure; (ii) was lawfully
received by Participant from a third party; (iii) was known to Participant
prior to receipt from the Employer Business; or (iv) was independently
developed by Participant or independent third parties; in each of the foregoing
circumstances, this exception applies only if such public knowledge or
possession by an independent third party was without breach by Participant or
any third party of any obligation of confidentiality or non-use, including but
not limited to the obligations and restrictions set forth in this Plan.  

(b)               
 Equitable Relief.  The
parties recognize that any Participant’s breach of any of the covenants in this
section will cause irreparable injury to the AT&T, will represent a failure
of the consideration under which AT&T (in its capacity as creator and
sponsor of the Plan) agreed to provide the Participant with the opportunity to
receive Plan benefits, and that monetary damages would not provide AT&T
with an adequate or complete remedy that would warrant AT&T’s continued
sponsorship of the Plan (including the accrual or granting of Share Units,
Matching Share Units and Options) for all Participants.  Accordingly, in the
event of a Participant’s actual or threatened breach of the covenants in this
section, the Committee, in addition to all other rights and acting as a
fiduciary under ERISA on behalf of all Participants, shall have a fiduciary
duty (in order to assure that AT&T receives fair and promised consideration
for its continued Plan sponsorship and funding) to seek an injunction
restraining the Participant from breaching the covenants in this Section. 
AT&T shall pay for any Plan expenses that the Committee incurs hereunder,
and shall be entitled to recover from the Participant its reasonable attorneys’
fees and costs incurred in obtaining such injunctive remedies.  

(c)                
 Uniform Enforcement. 
In recognition of AT&T’s need for nationally uniform standards for the Plan
administration, it is an absolute condition in consideration of any
Participant’s ability to make Employee Contribution elections under Section 4.1
of this Plan after 

 

September 1, 2009, that each and all of
the following conditions apply to all such electing Participants: 

(i)                 
 ERISA shall control
all issues and controversies hereunder, and the Committee shall serve for
purposes hereof as a “fiduciary” of the Plan and its “named fiduciary” within
the meaning of ERISA.

(ii)               
 All litigation between
the parties relating to this section shall occur in federal court, which shall
have exclusive jurisdiction; any such litigation shall be held in the United
States District Court for the Northern District of Texas, and the only remedies
available with respect to the Plan shall be those provided under ERISA. 

8.3          Elections and Notices. Notwithstanding anything to
the contrary contained in this Plan, all elections and notices of every kind
under this Plan shall be made (1) on forms prepared by AT&T or the General
Counsel, Secretary or Assistant Secretary, or their respective delegates, or
(2) in such other manner as permitted or required by AT&T or the General
Counsel, Secretary or Assistant Secretary, or their respective delegates,
including through electronic means, over the Internet or otherwise. An election
shall be deemed made when received by AT&T (or its designated agent, but
only in cases where the designated agent has been appointed for the purpose of
receiving such election), which may waive any defects in form. Unless made
irrevocable by the electing person, each election with regard to making
Employee Contributions or distributions of Cash Deferral Accounts shall become
irrevocable at the close of business on the last day the Employee is permitted
to make such election. Notwithstanding anything to the contrary in this Plan,
AT&T may place additional limits on the times during which elections may be
made to make contribution(s) or to delay distribution(s).

If not otherwise specified by this Plan or AT&T, any notice or
filing required or permitted to be given to AT&T under the Plan shall be
delivered to the principal office of AT&T, directed to the attention of the
Senior Executive Vice President in charge of Human Resources for AT&T or
his or her successor.  Such notice shall be deemed given on the date of
delivery. 

Notice to the Participant shall be deemed given when mailed (or
sent by telecopy) to the Participant’s work or home address as shown on the
records of AT&T or, at the option of AT&T, to the Participant’s e-mail
address as shown on the records of AT&T.  It is the Participant’s
responsibility to ensure that the Participant’s addresses are kept up to date
on the records of AT&T.  In the case of notices affecting multiple
Participants, the notices may be given by general distribution at the
Participants’ work locations. 

By participating in the Plan, each Participant agrees that
AT&T may provide any documents required or permitted under the Federal or
state securities laws, including but not limited to the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended, by e-mail, by
e-mail attachment, or by notice by e-mail of electronic delivery through
AT&T’s Internet Web site or by other electronic means. 

 

 

 

8.4          Unsecured General Creditor.

Participants and their beneficiaries, heirs, successors, and
assigns shall have no legal or equitable rights, interest, or claims in any
property or assets of any Employer.  No assets of any Employer shall be held
under any trust for the benefit of Participants, their beneficiaries, heirs,
successors, or assigns, or held in any way as collateral security for the
fulfilling of the obligations of any Employer under this Plan.  Any and all of
each Employer’s assets shall be, and remain, the general, unpledged,
unrestricted assets of such Employer.  The only obligation of an Employer under
the Plan shall be merely that of an unfunded and unsecured promise of AT&T
to make distributions under and in accordance with the terms of the Plan. 

8.5          Non-Assignability.

Neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage, or otherwise
encumber, transfer, hypothecate or convey in advance of actual receipt, any
Cash Deferral Account under the Plan, if any, or any part thereof, which are,
and all rights to which are, expressly declared to be unassignable and
non-transferable.  No part of  a distributable Cash Deferral Account shall,
prior to actual distribution, be subject to seizure or sequestration for the
payment of any debts, judgments, alimony or separate maintenance owed by a
Participant or any other person, nor be transferable by operation of law in the
event of a Participant’s or any other person’s bankruptcy or insolvency. 

8.6          Employment Not Guaranteed.

Nothing contained in this Plan nor any action taken hereunder
shall be construed as a contract of employment or as giving any employee any
right to be retained in the employ of an Employer or to serve as a director. 

8.7          Errors.

At any time AT&T or an Employer may correct any error made
under the Plan without prejudice to AT&T or any Employer.  Neither AT&T
nor any Employer shall be liable for any damages resulting from failure to
timely allow any contribution to be made to the Plan or for any damages resulting
from the correction of, or a delay in correcting, any error made under the
Plan.  In no event shall AT&T or any Employer be liable for consequential
or incidental damages arising out of a failure to comply with the terms of the
Plan. 

8.8          Captions.

The captions of the articles, sections, and paragraphs of this
Plan are for convenience only and shall not control nor affect the meaning or
construction of any of its provisions. 

8.9          Governing Law.

To the extent not preempted by Federal law, the Plan, and all
benefits and agreements hereunder, and any and all disputes in connection
therewith, shall be governed by and construed in accordance with the
substantive laws of the State of Texas, without regard to conflict or 

 

 

 

choice of law principles which might
otherwise refer the construction, interpretation or enforceability of this Plan
to the substantive law of another jurisdiction. 

Because benefits under the Plan are granted in Texas, records
relating to the Plan and benefits thereunder are located in Texas, and the Plan
and benefits thereunder are administered in Texas, AT&T and the Participant
under this Plan, for themselves and their successors and assigns, irrevocably
submit to the exclusive and sole jurisdiction and venue of the state or Federal
courts of Texas with respect to any and all disputes arising out of or relating
to this Plan, the subject matter of this Plan or any benefits under this Plan,
including but not limited to any disputes arising out of or relating to the
interpretation and enforceability of any benefits or the terms and conditions
of this Plan.  To achieve certainty regarding the appropriate forum in which to
prosecute and defend actions arising out of or relating to this Plan, and to
ensure consistency in application and interpretation of the Governing Law to
the Plan, the parties agree that (a) sole and exclusive appropriate venue for
any such action shall be an appropriate Federal or state court in Dallas
County, Texas, and no other, (b) all claims with respect to any such action
shall be heard and determined exclusively in such Texas court, and no other,
(c) such Texas court shall have sole and exclusive jurisdiction over the person
of such parties and over the subject matter of any dispute relating hereto and
(d) that the parties waive any and all objections and defenses to bringing any
such action before such Texas court, including but not limited to those
relating to lack of personal jurisdiction, improper venue or forum non
conveniens.

8.10        Plan to Comply with Section 409A.

In the event any provision of this Plan is held invalid, void, or
unenforceable, the same shall not affect, in any respect whatsoever, the
validity of any other provision of this Plan.  Notwithstanding any provision to
the contrary in this Plan, each provision in this Plan shall be interpreted to
permit the deferral of compensation in accordance with Section 409A of the Code
and any provision that would conflict with such requirements shall not be valid
or enforceable. 

8.11        Successors and Assigns.

This Plan shall be binding upon AT&T and its successors and
assigns.Exhibit 10-n

 

 

AT&T HEALTH PLAN

Effective January 1, 2020 

 

ARTICLE 1   PURPOSE

The AT&T Health Plan ("Plan")
provides Participants with certain medical, dental, and vision benefits, as
specified herein.  Effective March 23, 2010, the Plan shall be frozen to new Participants,
except as described in Section 2.15.  The Company intends this Plan to be a
“grandfathered health plan” under the Patient Protection and Affordable Care
Act (the “Affordable Care Act”).  Appendix C hereto contains the required
Participant disclosure regarding the Plan’s grandfathered status under the
Affordable Care Act.

 

ARTICLE 2   DEFINITIONS

For
purposes of this Plan, the following words and phrases shall have the meanings
indicated, unless the context clearly indicates otherwise:

 

2.1               
 Active
Participant.  “Active Participant” shall mean an Active Employee Participant and his
Dependents.

 

2.2               
 Active
Employee Participant.  “Active Employee Participant” shall mean an Eligible Employee
electing to participate in the Plan while in active service, on a Leave of
Absence or while receiving short term disability benefits under the Officer
Disability Plan.

 

2.3               
 Annual
Deductible. 
“Annual Deductible” shall mean the amount the Active Participant must pay for
Covered Health Services in a Plan Year before the Plan will begin paying for
Covered Benefits in that calendar year.  The Annual Deductible applies to all
Covered Health Services.  The Annual Deductible does not apply to Preventive
Care, Dental Services and Vision Services.   Once the Participant meets his
applicable Annual Deductible, the Plan will begin to pay Covered Benefits,
subject to any required Coinsurance, in accordance with and as governed by
Section 4.1.  The applicable Annual Deductible is set forth in Appendix A
to this Plan. 

 

2.4               
 Annual
Out-of-Pocket Maximum.  “Annual Out-of-Pocket Maximum” shall mean the maximum amount of
Covered Health Services an Active Participant must pay out-of-pocket every
calendar year, including the Participant’s Annual Deductible.  Once the
Participant reaches the applicable Annual Out-of-Pocket Maximum, Covered
Benefits for those Covered Health Services that apply to the Annual Out-of-Pocket
Maximum are payable in accordance with and as governed by Section 4.1 during
the rest of that Plan Year.  The following costs shall never apply toward the
Annual Out-of-Pocket Maximum:  (a) any applicable Monthly Contributions and (b)
any charges for Non-Covered Health Services.  Even when the Annual
Out-of-Pocket Maximum has been reached, Covered Benefits will not be provided
for the following:  (a) any applicable Monthly Contributions and (b) any
charges for Non-Covered Health Services.  The applicable Annual Out-of-Pocket
Maximum is set forth in Appendix A to this Plan.

 

2.5               
 AT&T.  “AT&T” shall mean
AT&T Inc.  References to “Company” shall mean AT&T.

 

 

 

 

 

2.6               
 CEO.  "CEO" shall mean
the Chief Executive Officer of AT&T Inc. 

 

2.7               
 COBRA.  “COBRA” shall mean the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended.

 

2.8               
 Coinsurance.  “Coinsurance” shall mean the
amount an Active Participant must pay each time he/she receives Covered Health
Services, after he/she meets the applicable Annual Deductible.  Coinsurance
payments are calculated as a percentage of Covered Health Services, rather than
a set dollar amount.  Coinsurance does not apply to Preventive Care, Dental
Services and Vision Services (or Medical Services for Retired Participants as
provided in Section 4.1(c)).  The applicable Coinsurance percentage is set
forth in Appendix A to this Plan.  

 

2.9               
 Committee.  "Committee" shall
mean the Human Resources Committee of the Board of Directors of AT&T Inc.

 

2.10            
 Covered
Benefits. 
“Covered Benefits” shall mean the benefits provided by the Plan, as provided
for and governed by Section 4.1 of the Plan.

 

2.11            
 Covered
Health Services.  “Covered Health Services” means all Medical Services or
Preventive Care that would qualify as deductible medical expenses for federal
income tax purposes, whether deducted or not.  Dental Services and Vision
Services are not included in the definition of Covered Health Services. 

 

2.12            
 Dental
Services. 
“Dental Services” shall mean services for dental and orthodontic care.   The
Plan Administrator, in its sole discretion, shall determine whether a
particular service is classified as Preventive Care or a Dental, Medical or
Vision Service. 

 

2.13            
 Dependent(s).  “Dependent(s)” shall mean those
individuals who would qualify as a Participant’s dependent(s) under the terms
of the AT&T Medical Program.

 

2.14            
 Disability.  "Disability" shall
mean qualification for long term disability benefits under Section 3.1 of the
Officer Disability Plan. 

 

2.15            
 Eligible
Employee. 
"Eligible Employee" shall mean an Officer.  Notwithstanding the
foregoing, the CEO may, from time to time, exclude any Officer or group of
Officers from being an “Eligible Employee” under this Plan.  Employees of a
company acquired by AT&T shall not be considered an Eligible Employee
unless designated as such by the CEO.  Notwithstanding the foregoing, only the
Committee shall have the authority to exclude from participation or take any
action with respect to Executive Officers.   

 

Notwithstanding
the foregoing provisions, unless otherwise provided for in Appendix D to this
Plan, individuals hired, rehired or promoted to an Officer level position on or
after March 23, 2010 shall be excluded from the term Eligible Employee, and
such individuals (and their Dependents) shall not be eligible to participate in
this Plan.

 

2.16            
 Employer.  "Employer" shall
mean AT&T Inc. or any of its Subsidiaries. 

 

2.17            
 Executive
Officer. 
“Executive Officer” shall mean any executive officer of AT&T, as that term
is used under the Securities Exchange Act of 1934.

 

 

2.18            
 International
Plan.  “International
Plan” shall mean the “AT&T International Health Plan” for Officers serving
in expatriate positions with the Company.  

 

2.19            
 Leave
of Absence. 
“Leave of Absence” shall mean a Company-approved leave of absence.

 

2.20            
 Medical
Services. 
“Medical Services” shall mean medical/surgical, mental health/substance abuse
and prescription pharmacy services.  The Plan Administrator, in its sole
discretion, shall determine whether a particular service is classified as
Preventive Care or a Medical, Dental or Vision Service.  Medical Services do
not include Dental Services and Vision Services.

 

2.21            
 Monthly
Contributions.  “Monthly Contributions” shall mean the monthly premiums or
contributions required for participation in this Plan as further governed by
Article 7 of the Plan.  The applicable Monthly Contributions are set forth in
Exhibit A to this Plan.

 

2.22            
 Non-Covered
Health Services.  “Non-Covered Health Services” shall mean any Medical Services or
Preventive Care which do not meet the definition of Covered Health Services.

 

2.23            
 Officer.  "Officer" shall
mean an individual who is designated as an officer level employee for
compensation purposes on the records of AT&T.

 

2.24            
 Participant.  “Participant” shall mean an
Active Participant or Retired Participant or both, as the context indicates. 

 

2.25            
 Plan
Administrator.  “Plan
Administrator” shall mean the SEVP-HR, or any other person or persons whom the
Committee may appoint to administer the Plan; provided that the Committee may
act as the Plan Administrator at any time.

 

2.26            
 Plan
Year.  ”Plan
Year” shall mean the calendar year. 

 

2.27            
 Preventive
Care. 
“Preventive Care” generally focuses on evaluating a Participant’s current
health status when the Participant is symptom-free and taking the necessary steps
to maintain the Participant’s health. The Plan Administrator, in its sole
discretion, shall determine whether a particular service constitutes Preventive
Care.

 

2.28            
 Qualified
Dependent.  “Qualified Dependent” shall
mean a
Dependent who loses coverage under a COBRA eligible program due to a Qualifying
Event.

 

2.29            
 Qualifying
Event. 
 “Qualifying
Event” shall mean any of the following events if, but for COBRA continuation
coverage, they would result in a Participant’s loss of coverage under this
Plan:  

 

(1)           death of a covered Eligible Employee;

(2)           termination (other than by reason of
such Eligible Employee’s gross  misconduct) of an Employee’s employment;

(3)           reduction in hours of an Eligible
Employee;

 

 

 

(4)           divorce
or legal separation of an Eligible Employee or dissolution of an Eligible
Employee’s registered domestic partnership;

(5)           an Eligible Employee’s entitlement to
Medicare benefits; or

(6)           a Dependent child ceasing to qualify as
a Dependent

 

2.30            
 Retire,
Retired or Retirement. 
“Retire,” “Retired” or "Retirement" shall mean the termination of an
Active Employee Participant's employment with AT&T or any of its
Subsidiaries, for reasons other than death, on or after the earlier of the
following dates:  (1) the date such Active Employee Participant has attained
age 55, and, for an Active Employee Participant on or after January 1, 2002,
has five (5) years of service, or (2) the date the Active Employee Participant
has attained one of the following combinations of age and service at
termination of employment on or after April 1, 1997:    

 

Net Credited Service                                               Age 

25 years or more                                                  50
or older

30 years or more                                                  Any
age

 

2.31        Retired
Participant.  “Retired Participant” shall mean a Retired Employee Participant and
his Dependents.   

 

2.32        Retired Employee
Participant.  “Retired Employee Participant” shall mean a former Active
Employee Participant who has Retired within the meaning of Section 2.30 and who
meets the additional requirements of Section 3.2 to be eligible for coverage in
Retirement.

 

2.33        SEVP-HR.            “SEVP-HR” shall
mean AT&T’s highest ranking Officer, specifically responsible for human
resources matters. 

 

2.34        Subsidiary .  "Subsidiary"
shall mean any corporation, partnership, venture or other entity in which
AT&T holds, directly or indirectly, a 50% or greater ownership interest. 
The Committee may, at its sole discretion, designate any other corporation,
partnership, venture or other entity a Subsidiary for the purpose of
participating in this Plan.  

  

2.35        Vision
Services. 
“Vision Services” shall mean services for vision care.  The Plan Administrator,
in its sole discretion, shall determine whether a particular service is
classified as Preventive Care or a Vision, Medical or Dental Service.

 

2.36        Medicare
Eligible Retired Participant.   “Medicare Eligible Retired
Participant” shall mean a Retired Participant who is eligible for Medicare due
to reaching the eligible age for Medicare.

 

 

ARTICLE 3   ELIGIBILITY

 

3.1               
 Active
Participants.  Each Eligible Employee shall be eligible to participate
in this Plan along with his/her Dependent(s) beginning on the effective date of
the employee becoming an Eligible Employee.

 

 

 

 

In order to continue participation, the Active Participant must
pay all applicable Monthly Contributions.  If an Active Employee Participant
terminates participation in this Plan at any time for any reason, that
Participant and his/her Dependent(s) shall be ineligible to participate in the
Plan at any time in the future. 

 

3.2               
 Retired
Participants.  Provisions of this Plan will continue in effect during Retirement
for each Retired Employee Participant and his/her Dependent(s) with respect to
any Eligible Employee who became a Participant before January 1, 1999.  Neither
an Eligible Employee who became a Participant after December 31, 1998 nor
his/her Dependent(s) shall be eligible for participation hereunder on or after
such Participant’s Retirement. Coverage for Retired Participants shall be subject
to the payment of all applicable Monthly Contributions, as governed by Article
7.  The provisions of this Plan related to Retired Participants, including the
level of Covered Benefits and the applicable Monthly Premiums, shall begin to
apply on the first day of the month following the month in which the Active
Employee Participant Retires.  If a Retired Employee Participant terminates
participation at any time for any reason, participation of that Retired
Employee participant and his/her Dependent(s) may not be reinstated for any
reason.

 

3.3               
 Requirement
to Enroll and Participate in Medicare and the International Plan.  Notwithstanding any
provision in this plan to the contrary, as a condition to participation in the
Plan, each Participant must be enrolled in, paying for, and participating in
(i) all parts of Medicare for which such Participant is eligible and for which
Medicare would be primary if enrolled therein, except for Medicare Part D
relating to prescription drug coverage, and (ii) the International Plan (if
eligible).

 

ARTICLE 4   BENEFITS

 

4.1               
 Covered
Benefits. Subject to the limitations in this Plan (including but not limited to the
loyalty conditions set forth in Article 8 below),
this Plan provides the benefits described below.  Monthly Contributions for
participation in this Plan, the International Plan, Medicare, or any other
health plan are not considered “services”, and are therefore are not Covered
Benefits under this Plan.

 

(a)     Active Participants (Medical
Services and Preventive Care) -  

 

Medical
Services - After the Annual Deductible has been met, 100% payment of Covered
Health Services not paid under the International Plan or Medicare minus the
amount of Coinsurance, until the Active Participant reaches the Annual
Out-of-Pocket Maximum, at which time coverage is 100% of Covered Health
Services (or 100% of Covered Health Services not paid under the International
Plan).

   

Preventive
Care - Preventive Care is covered at 100%, not subject to the Annual Deductible
or Coinsurance.  

 

(b)     Active Participants (Dental
Services and Vision Services) -

  

100%
payment, through reimbursement or otherwise, of all Dental Services and Vision
Services not paid under the Active Participant’s (i) Medicare, or (ii)
International Plan, provided expenses for such services would qualify as
deductible medical expenses for federal income tax purposes, whether deducted
or not.  

 

 

 

 

(c)    
 Retired
Participants

  

100% payment,
through reimbursement or otherwise, of all Medical, Dental, Vision and
Preventive services not paid under the Retired Participant’s Medicare, provided
expenses for such services would qualify as deductible medical expenses for
federal income tax purposes, whether deducted or not. 

 

 

4.2               
 Priority
of Paying Covered Claims.  Claims for benefits will be applied against the
various health plans, as applicable, and coordinated with Medicare in the
following order: 

(1)               
 Medicare, to the extent the Participant is eligible
therefore and such claim is actually paid by Medicare, 

(2)               
 International Plan, if applicable,

(2)           CarePlus, if elected, 

(3)           Long
Term Care Plan, if elected, 

(4)           this Plan.

 

 

ARTICLE 5   TERMINATION OF
PARTICIPATION

 

5.1               
 Termination
of Participation. 
Participation will cease on the last day of the month in which one of the
following conditions occurs:

 

(1)               
 A Participant ceases to meet the definition of a
Dependent (as set forth in Section 2.13 of this Plan) for any reason, in which
case participation ceases for such Participant;  

 

(2)               
 A Participant eligible to enroll in Medicare is no
longer a participant in all parts of Medicare for which such Participant is
eligible to enroll and for which Medicare would be primary if enrolled therein,
except for Medicare Part D relating to prescription drug coverage, in which
case participation ceases for such Participant;  

 

(3)               
 The Active Employee Participant’s termination of
employment for reasons other than Death, Disability, or Retirement by an
individual who meets the applicable requirements of Section 3.2 in order to
qualify for Plan benefits in Retirement, in which case participation ceases for
the Participant and his/her Dependent(s);

 

(4)               
 The demotion or designation of an Active Employee
Participant so as to no longer be eligible to participate in the Plan, in which
case participation ceases for the Participant and his/her Dependent(s);

 

(5)               
 The Active Employee Participant (or Retired Employee
Participant) participates in an activity that constitutes engaging in
competitive activity with AT&T or engaging in conduct disloyal to AT&T
under Article 8, in which case participation ceases for the Active Employee
Participant (or Retired Employee Participant) and his/her Dependent(s); or

 

 

 

 

 

(6)               
 Discontinuance of the Plan by AT&T, or, with
respect to a Subsidiary’s Active Employee Participants (or Retired Employee
Participants), such Subsidiary’s failure to make the benefits hereunder
available to Active Employee Participants employed by it (or its Retired
Employee Participants). 

 

5.2               
 Death.  In the event of the Active
Employee Participant’s (or Retired Employee’s Participant’s) death, his
Dependents may continue participation in this Plan as follows:

 

(1)           In the event of the death of a Retired Employee
Participant such Retired Employee Participant’s Dependents may continue
participation in this Plan, eligible for the Covered Benefits described in
Section 4.1(c) of the Plan, for so long as such Dependents would have otherwise
been eligible to participate under the terms of the AT&T Medical Program,
are paying any applicable contributions for this Plan as provided in Article 7,
and are participating in Medicare if eligible. If a surviving spouse of such
deceased Active Employee Participant otherwise eligible for participation in
the Plan remarries, his/her participation and the participation of any
otherwise eligible Dependents will cease with the effective date of his/ her
marriage.

 

(2)           In the event of an in-service death of an Active
Employee Participant eligible to participate in the Plan in Retirement as provided
under Article 3.2, who was Retirement eligible, within the meaning of Section
2.30, at the time of death, such Active Employee Participant’s surviving
Dependents may continue participation in this Plan, eligible for the Covered
Benefits described in Section 4.1(a) and (b), for so long as such Dependents
would have otherwise been eligible for participation under the terms of the
AT&T Medical Program, are paying any applicable contributions for this Plan
as provided in Article 7, and are participating in Medicare if eligible.  If a
surviving spouse of such deceased Active Employee Participant otherwise
eligible for participation in the Plan remarries, his/her participation and the
participation of any otherwise eligible Dependents will cease with the effective
date of his/ her marriage.

 

(3)           In the event of (i) an in-service death of an Active
Employee Participant not eligible to participate in the Plan in Retirement as
provided in Article 3.2 or (ii) an in-service death of an Active Employee
Participant eligible to participate in the Plan in Retirement as provided in
Article 3.2 but the individual was not Retirement eligible, within the meaning
of Section 2.30, at the time of death, such Active Employee Participant’s
Dependent(s) may continue participation in this Plan, eligible for the Covered
Benefits described in Sections 4.1(a) and (b), for a 36-month period commencing
the month following the month in which such Active Employee Participant dies as
long as such Dependent(s) would have otherwise been eligible for participation
under the terms of the AT&T Medical Program and subject to the payment of
Active Participant Contributions for the first 12 months and payment of Active
COBRA Contributions for the remaining 24 months, as provided by Articles 7 and
10.1.  If the Active Employee Participant’s Dependent(s) are eligible for
COBRA, they will automatically be enrolled in COBRA so that there is no lapse
in coverage, and this 36-month coverage will be integrated and run concurrently
with COBRA coverage.

 

 

 

ARTICLE 6   DISABILITY

 

6.1               
 Disability.  With respect to any Active
Employee Participant who commences receipt of short term or long term
disability benefits under the Officer Disability Plan, participation under this
Plan will be as follows: 

 

(1)           The Participant will continue to
participate in this Plan, eligible for the Covered Benefits described in
Section 4.1(a) and (b), for as long as he/she receives short term disability
benefits under the Officer Disability Plan and pays the applicable
contributions for this Plan as provided by Article 7. 

 

(2)           An Active Employee Participant not
eligible to participate in the Plan in Retirement as provided in Article 3.2
who commences long term disability benefits under the Officer Disability Plan
or an Active Employee Participant eligible to participate in the Plan in Retirement
as provided in Article 3.2 but who is not Retirement eligible, within the
meaning of Section 2.30, at the time long term disability benefits under the
Officer Disability Plan commence, will cease participation in this Plan (along
with his/her Dependents) effective as of the last day of the calendar month in
which such long term disability benefits commence, unless such benefits
commence on the first day of a calendar month, in which case participation in
this Plan shall cease effective as of the last day of the prior month.

 

(3)           An Active Employee Participant eligible
to participate in the Plan in Retirement as provided in Article 3.2 ,who is
Retirement eligible, within the meaning of Section 2.30, at the time long term
disability benefits under the Officer Disability Plan commence, will be
eligible to continue participation in this Plan on the same terms and
conditions that participation would be available to such Participant in
Retirement, subject to the payment of applicable contributions for this Plan as
provided by Article 7, regardless of his/her continued receipt of long term
disability benefits under the Officer Disability Plan. 

 

 

ARTICLE 7   COSTS

 

7.1               
 Provision
of Benefits under the Plan.  Except as provided below in this Article 7 with
respect to required Monthly Contributions or with respect to any required
Coinsurance, the benefits available to
Participants under this Plan shall be provided through an insurance policy
maintained by AT&T. 

 

7.2               
 Active
Participant Contributions.  An Active Participant electing to participate in
the Plan will pay Monthly Contributions to participate in the Plan while in
active service, while on Leave of Absence or while receiving short term
disability benefits under the Officer Disability Plan. The Monthly Contribution
for participation may change annually, effective at the beginning of each Plan
Year.  Contributions to be made by Active Participants electing to participate in
the Plan shall be set annually by the SEVP-HR, determined in the SEVP-HR’s sole
and absolute discretion.  The SEVP-HR may adopt tiered rates for similarly
situated groups of Participants based on factors such as the number of
Dependents covered or Medicare eligibility.  Notwithstanding the foregoing,
required Monthly Contributions for Executive Officers shall be approved by the
Committee.

 

 

7.3               
 Retired
Participant Contributions.  Retired Participants who elect to participate will
pay Monthly Contributions to participate in the Plan. The Monthly Contribution
for participation may change annually, effective at the beginning of each Plan
Year.  Contributions to be
made by Retired Participants who elect to participate shall be set annually by
the SEVP-HR (in his/her sole and absolute discretion), to the extent their
contributions have not previously been provided for in a separate agreement.

 

7.4               
 Survivor
Contributions.   Upon the death
of a Participant, the Participant’s Dependents shall be required to pay Monthly
Contributions to participate in the Plan.  The Monthly Contributions shall be set annually by the SEVP-HR, in the SEVP-HR’s sole and
absolute discretion.  Any changes to the Monthly Contributions shall be
effective at the beginning of each Plan Year.

 

7.5               
 Contributions
for Participants on Disability.  Participants continuing benefits while on Disability shall be
required to pay Monthly Contributions to participate in the Plan.  The Monthly
Contributions shall be set annually by the SEVP-HR,
determined in the SEVP-HR’s sole and absolute discretion.  Any changes
to the Monthly Contributions shall be effective at the beginning of each Plan
Year.

 

ARTICLE 8   LOYALTY CONDITIONS

 

8.1               
 Participants
acknowledge that no coverage and benefits would be provided under this Plan on
and after January 1, 2010 but for the loyalty conditions and covenants set
forth in this Article, and that the conditions and covenants herein are a
material inducement to AT&T’s willingness to sponsor the Plan and to offer
Plan coverage and benefits for the Participants on or after January 1, 2010. 
Accordingly, as a condition of receiving coverage and any Plan benefits on or
after January 1, 2010, each Participant is deemed to agree that he/she shall
not, without obtaining the written consent of the Plan Administrator in
advance, participate in activities that constitute engaging in competition with
AT&T or engaging in conduct disloyal to AT&T, as those terms are defined
in this Section.  Further and notwithstanding any other provision of this Plan,
all coverage and benefits under this Plan on and after January 1, 2010 with
respect to a Participant and his or her Dependents shall be subject in their
entirety to the enforcement provisions of this Section if the Participant,
without the Plan Administrator’s consent, participates in an activity that
constitutes engaging in competition with AT&T or engaging in conduct
disloyal to AT&T, as defined below.  The provisions of this Article 8 as in
effect immediately before such date shall be applicable to Participants who
retire before January 1, 2010.  

8.2               
 Definitions.  For purposes of this Article and of the
Plan generally

(1)               
 an “Employer Business”
shall mean AT&T, any Subsidiary, or any business in which AT&T or a
Subsidiary or an affiliated company of AT&T has a substantial ownership or
joint venture interest;

 

 

 

 

(2)               
 “engaging in
competition with AT&T” shall mean, while employed by an Employer Business
or within two (2) years after the Participant’s termination of employment,
engaging by the Participant in any business or activity in all or any portion
of the same geographical market where the same or substantially similar
business or activity is being carried on by an Employer Business.  “Engaging in
competition with AT&T” shall not include owning a nonsubstantial publicly
traded interest as a shareholder in a business that competes with an Employer
Business.  “Engaging in competition with AT&T” shall include representing
or providing consulting services to, or being an employee or director of, any
person or entity that is engaged in competition with any Employer Business or
that takes a position adverse to any Employer Business.

(3)               
 “engaging in conduct
disloyal to AT&T” means, while employed by an Employer Business or within
two  (2) years after the Participant’s termination of employment,
(i) soliciting for employment or hire, whether as an employee or as an
independent contractor, for any business in competition with an Employer Business,
any person employed by AT&T or its affiliates during the one (1) 
year prior to the termination of the Participant’s employment, whether or not
acceptance of such position would constitute a breach of such person’s
contractual obligations to AT&T and its affiliates; (ii) soliciting,
encouraging, or inducing any vendor or supplier with which Participant had
business contact on behalf of any Employer Business during the
two (2) years prior to the termination of the Participant’s employment,
for any reason to terminate, discontinue, renegotiate, reduce, or otherwise
cease or modify its relationship with AT&T or its affiliate; or
(iii) soliciting, encouraging, or inducing any customer or active
prospective customer with whom Participant had business contact, whether in
person or by other media, on behalf of any Employer Business during the
two (2) years prior to the termination of Participant’s employment
for any reason (“Customer”), to terminate, discontinue, renegotiate, reduce, or
otherwise cease or modify its relationship with any Employer Business, or to
purchase competing goods or services from a business competing with any
Employer Business, or accepting or servicing business from such Customer on
behalf of himself or any other business.  “Engaging in conduct disloyal to
AT&T” also means, disclosing Confidential Information to any third party or
using Confidential Information, other than for an Employer Business, or failing
to return any Confidential Information to the Employer Business following termination
of employment.

(4)               
 “Confidential
Information” shall mean all information belonging to, or otherwise relating to,
an Employer Business, which is not generally known, regardless of the manner in
which it is stored or conveyed to the Participant, and which the Employer
Business has taken reasonable measures under the circumstances to protect from
unauthorized use or disclosure.  Confidential Information includes trade
secrets as well as other proprietary knowledge, information, know-how, and
non-public intellectual property rights, including unpublished or pending
patent applications and all related patent rights, formulae, processes,
discoveries, improvements, ideas, conceptions, compilations of data, and data,
whether or not

 

 

 

patentable or copyrightable and whether or
not it has been conceived, originated, discovered, or developed in whole or in
part by the Participant.  For example, Confidential Information includes, but
is not limited to, information concerning the Employer Business’ business
plans, budgets, operations, products, strategies, marketing, sales, inventions,
designs, costs, legal strategies, finances, employees, customers, prospective
customers, licensees, or licensors; information received from third parties
under confidential conditions; or other valuable financial, commercial,
business, technical or marketing information concerning the Employer Business,
or any of the products or services made, developed or sold by the Employer
Business.  Confidential Information does not include information that (i) was
generally known to the public at the time of disclosure; (ii) was lawfully
received by the Participant from a third party; (iii) was known to the
Participant prior to receipt from the Employer Business; or (iv) was
independently developed by the Participant or independent third parties; in
each of the foregoing circumstances, this exception applies only if such public
knowledge or possession by an independent third party was without breach by the
Participant or any third party of any obligation of confidentiality or non-use,
including but not limited to the obligations and restrictions set forth in this
Plan.

 

8.3               
 Forfeiture
of Benefits.  Subject
to the provisions of Section 1001(5) of the Affordable Care Act, coverage and
benefits shall be forfeited and shall not be provided under this Plan for any
period as to which the Plan Administrator determines that, within the time
period and without the written consent specified, Participant has been either
engaging in competition with AT&T or engaging in conduct disloyal to
AT&T.

8.4               
 Equitable
Relief.  The parties recognize that any
Participant’s breach of any of the covenants in this Article 8 will cause
irreparable injury to AT&T, will represent a failure of the consideration
under which AT&T (in its capacity as creator and sponsor of the Plan)
agreed to provide the Participant with the opportunity to receive Plan coverage
and benefits, and that monetary damages would not provide AT&T with an
adequate or complete remedy that would warrant AT&T’s continued sponsorship
of the Plan and payment of Plan benefits for all Participants.  Accordingly, in
the event of a Participant’s actual or threatened breach of the covenants in
this Article, the Plan Administrator, in addition to all other rights and
acting as a fiduciary under ERISA on behalf of all Participants, shall have a
fiduciary duty (in order to assure that AT&T receives fair and promised
consideration for its continued Plan sponsorship and funding) to seek an
injunction restraining the Participant from breaching the covenants in this
Article 8.  In addition, AT&T shall pay for any Plan expenses that the
Plan Administrator incurs hereunder, and shall be entitled to recover from the
Participant its reasonable attorneys’ fees and costs incurred in obtaining such
injunctive remedies.  To enforce its repayment rights with respect to a
Participant, the Plan shall have a first priority, equitable lien on all Plan
benefits provided to or for the Participant and his or her Dependents.  In the
event the Plan Administrator succeeds in enforcing the terms of this Article
through a written settlement with the Participant or a court order granting an
injunction hereunder, the Participant shall be entitled to collect Plan benefits
collect Plan benefits prospectively, if the Participant is otherwise entitled
to such benefits, net of any fees and costs assessed pursuant hereto (which
fees and costs shall be paid to AT&T as a repayment on behalf of the
Participant), provided that the Participant complies with said settlement or
injunction.

 

 

8.5               
 Uniform
Enforcement.  In
recognition of AT&T’s need for nationally uniform standards for the Plan
administration, it is an absolute condition in consideration of any
Participant’s accrual or receipt of benefits under the Plan after January 1,
2010 that each and all of the following conditions apply to all Participants
and to any benefits that are paid or are payable under the Plan: 

(1)               
 ERISA shall control
all issues and controversies hereunder, and the Committee shall serve for purposes
hereof as a “fiduciary” of the Plan, and as its “named fiduciary” within the
meaning of ERISA.

(2)               
 All litigation between
the parties relating to this Article shall occur in federal court, which shall
have exclusive jurisdiction, any such litigation shall be held in the United
States District Court for the Northern District of Texas, and the only remedies
available with respect to the Plan shall be those provided under ERISA.

(3)               
 If the Plan
Administrator determines in its sole discretion either (I) that AT&T or its
affiliate that employed the Participant terminated the Participant’s employment
for cause, or (II) that equitable relief enforcing the Participant’s covenants
under this Article 8 is either not reasonably available, not ordered by a
court of competent jurisdiction, or circumvented because the Participant has
sued in state court, or has otherwise sought remedies not available under
ERISA, then in any and all of such instances the Participant shall not be
entitled to collect any Plan benefits, and if any Plan benefits have been paid
to the, the Participant shall immediately repay all Plan benefits to the Plan
(with such repayments being used within such year for increased benefits for
other Participants in any manner determined in the Plan Administrator’s
discretion) upon written demand from the Plan Administrator.  Furthermore, the
Participant shall hold AT&T and its affiliates harmless from any loss,
expense, or damage that may arise from any of the conduct described in clauses
(I) and (II) hereof.

 

ARTICLE 9   MISCELLANEOUS

 

9.1               
 Administration.  The Plan Administrator is
the named fiduciary of the Plan and has the power and duty to do all things
necessary to carry out the terms of the Plan.  The Plan Administrator has the
sole and absolute discretion to interpret the provisions of the Plan, to make
findings of fact, to determine the rights and status of Participants and other
under the Plan, to determine which expenses and benefits qualify as Covered
Health Services or Covered Benefits, to make all benefit determinations under
the Plan, to decide disputes under the Plan and to delegate all or a part of
this discretion to third parties and insurers.  To the fullest extent permitted
by law, such interpretations, findings, determinations and decisions shall be
final, binding and conclusive on all persons for all purposes of the Plan.  The
Plan Administrator may delegate any or all of its authority and responsibility
under the Plan to other individuals, committees, third party administrators,
claims administrators or insurers for any purpose, including, but not limited
to the processing of benefits and claims related thereto.  In carrying out
these functions, these individuals or entities have been delegated
responsibility and discretion for interpreting the provisions of the Plan,
making findings of fact, determining the rights

 

 

 

 

and status of Participants and others under the Plan, and deciding
disputes under the Plan and such interpretations, findings, determinations and
decisions shall be final, binding and conclusive on all persons for all
purposes of the Plan.  

 

9.2               
 Amendments
and Termination.  This Plan may be modified or terminated at any time in
accordance with the provisions of AT&T's Schedule of Authorizations. 

 

9.3               
 Newborns'
and Mothers' Health Protection Act of 1996.  To the extent this Plan provides benefits for hospital lengths
of stay in connection with childbirth, the Plan will cover the minimum length
of stay required for deliveries (i.e., a 48-hour hospital stay after a vaginal
delivery or a 96-hour stay following a delivery by Cesarean section.)  The
mother’s or newborn’s attending physician, after consulting with the mother,
may discharge the mother or her newborn earlier than the minimum length of stay
otherwise required by law.  Such coverage shall be subject to all other
provisions of this Plan.

 

9.4               
 Women's
Health and Cancer Rights Act of 1998.  To the
extent this Plan provides benefits for mastectomies, it will provide, for an
individual who is receiving benefits in connection with a mastectomy and who
elects breast reconstruction in connection with such mastectomy, coverage for
reconstruction on the breast on which the mastectomy was performed, surgery and
reconstruction on the other breast to give a symmetrical appearance, and
prosthesis and coverage for physical complications of all stages of the
mastectomy, including lymphedemas.  Such coverage shall be subject to all other
provisions of this Plan.

 

9.5               
 Paul
Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of
2008.   To the extent
this Plan provides mental health benefits or substance use disorder benefits it
will not place annual or lifetime maximums for such benefits that are lower
than the annual and lifetime maximums for physical health benefits.  In
addition, the financial requirements (e.g., deductibles and co-payments) and
treatment limitations (e.g., number of visits or days of coverage) that apply
to mental health benefits or substance use disorder benefits will not be more
restrictive than the predominant financial requirements or treatment
limitations that apply to substantially all medical/surgical benefits; mental
health benefits and substance use disorder benefits will not be subject to any
separate cost sharing requirements or treatment limitations that only apply to
such benefits; if the Plan provides for out of network medical/surgical or
substance use disorder benefits, it will provide for out of network mental health
and substance use disorder benefits and standards for medical necessity
determinations and reasons for any denial of benefits relating to mental health
benefits and substance use disorder benefits will be made available upon
request to plan participants.  Such coverage shall be subject to all other
provisions of this Plan.

 

9.6               
 Continuation
of Coverage During Family or Medical Leave.  During any period which an Active
Employee Participant is on a family or medical leave as defined in the Family
or Medical Leave Act, any benefit elections in force for such Participant shall
remain in effect.  While the Participant is on paid leave, contributions shall
continue.  If the Participant is on an unpaid leave, the Participant may elect
to prepay required contributions on a pre-tax basis before the commencement of
such unpaid leave.  Alternatively, the Participant may elect to make such
payments on an after-tax basis monthly in accordance with an arrangement that
the Plan Administrator shall provide.  If coverage is not continued during the
entire period of the family or medical leave because the Participant declines
to pay the premium, the coverage must be reinstated upon reemployment with no
exclusions or waiting periods, notwithstanding any other provision

 

 

 

of this Plan to the contrary. If the
Participant does not return to work upon completion of the leave, the
Participant must pay the full cost of any health care coverage that was
continued on his/her behalf during the leave.  These rules apply to the COBRA
eligible programs.  

  

9.7               
 Rights While
on Military Leave. 
Pursuant to the provisions of the Uniformed
Services Employment and Reemployment Rights Act of 1994, an Active Employee
Participant on military leave will be considered to be on a Leave of Absence
and will be entitled during the leave to the health and welfare benefits that
would be made available to other similarly situated employees if they were on a
Leave of Absence.  This entitlement will end if the individual provides written
notice of intent not to return to work following the completion of the military
leave.  The individual shall have the right to continue his/her coverage,
including any Dependent coverage, for the lesser of the length of the leave or
18 months.  If the military leave is for a period of 31 days or more, the
individual may be required to pay 102 percent of the total premium (determined
in the same manner as a COBRA continuation coverage premium).  If coverage is
not continued during the entire period of the military leave because the
individual declines to pay the premium or the leave extends beyond 18 months,
the coverage must be reinstated upon reemployment with no pre-existing
condition exclusions (other than for service-related illnesses or injuries) or
waiting periods (other than those applicable to all Eligible Employees).

 

9.8               
 Qualified Medical Child Support Orders.  The Plan will comply with any Qualified
Medical Child Support Order issued by a court of competent jurisdiction or
administrative body that requires the Plan to provide medical coverage to a
Dependent child of an Active Employee or Retired Employee Participant.  The
Plan Administrator will establish reasonable procedures for determining whether
a court order or administrative decree requiring medical coverage for a
Dependent child meets the requirements for a Qualified Medical Child Support
Order.  The cost of coverage or any additional cost of such coverage, if any,
shall be borne by the Participant.

 

9.9               
 Right of Recovery.   If the Plan has made an erroneous or excess
payment to any Participant, the Plan Administrator shall be entitled to recover
such excess from the individual or entity to whom such payments were made.  The
recovery of such overpayment may be made by offsetting the amount of any other
benefit or amount payable by the amount of the overpayment under the Plan.

 

ARTICLE 10   COBRA

 

10.1            
 Continuation
of Coverage Under COBRA.  Participants
shall have all COBRA continuation rights required by federal law and all
conversion rights.  COBRA continuation coverage shall be continued as provided
in this Article 10.   

 

10.2            
 COBRA
Continuation Coverage for Terminated Participants.  A covered Active Employee Participant may elect COBRA
continuation coverage, at his/her own expense, if his participation under this
Plan would terminate as a result of one of the following Qualifying Events: an
Employee’s termination of employment or reduction of hours with an Employer.  

 

10.3            
 COBRA
Continuation Coverage for Dependents.  A Qualified
Dependent may elect COBRA continuation coverage, at his/her own expense, if
his/her participation under this Plan would terminate as a result of a
Qualifying Event.
 

 

10.4            
 Period of
Continuation Coverage for Covered Participants.  A covered Active Employee Participant who qualifies for COBRA
continuation coverage as a result of a Participant’s termination of employment
or reduction in hours of employment described in Subsection 10.2 may elect
COBRA continuation coverage for up to 18 months measured from the date of the
Qualifying Event.  

 

Coverage under this Subsection 10.4
may not continue beyond the:

(1)         
 date on which the Active Employee Participant’s
Employer ceases to maintain this Plan;

(2)         
 last day of the month for which premium payments have
been made with respect to this Plan, if the individual fails to make premium
payments on time, in accordance with Subsection 10.6;

(3)         
 date the covered Active Employee Participant becomes
entitled to Medicare; or

(4)         
 date the covered Participant is no longer subject to a
pre-existing condition exclusion under the Participant's other coverage or new
employer plan for the type of coverage available under the COBRA eligible
program for which the COBRA election was made.

 

10.5            
 Period of COBRA Continuation Coverage for Dependents.  If a Qualified
Dependent elects COBRA continuation coverage under a COBRA eligible program as
a result of the an Active Employee Participant’s termination of employment as
described in Subsection 10.2, continuation coverage may be continued for up to
18 months measured from the date of the Qualifying Event.  COBRA continuation
coverage for all other Qualifying Events may continue for up to 36 months.

 

Continuation coverage under this
Subsection 10.5 with respect to a COBRA eligible program may not continue
beyond the date:

(1)         
 on which premium payments have not been made, in
accordance with Subsection 10.6 below;

(2)         
 the Qualified Dependent becomes entitled to Medicare; 

(3)         
 on which the Employer ceases to maintain this Plan; or

(4)         
 the Qualified Dependent is no longer subject to a
pre-existing condition exclusion under the Participant’s other coverage or new
employer plan for the type of coverage available under this Plan. 

 

 

10.6            
 Contribution Requirements for COBRA Continuation Coverage.  Covered
Participants and Qualified Dependents who elect COBRA continuation coverage as
a result of a Qualifying Event will be required to pay continuation coverage
payments.  Continuation coverage payments are the payments required for COBRA
continuation coverage that is an amount equal to a reasonable estimate of the
cost to this Plan of providing coverage for all covered Participants at the
time of the Qualifying Event plus a 2% administrative expense.

 

10.7            
 In the case of a disabled individual who receives an additional
11-month extended coverage under COBRA, the Employer may assess up to 150% of
the cost for this extended coverage period.  Such cost shall be determined on
an actuarial basis and take into account such factors as the Secretary of the
Treasury may prescribe in regulations.

 

Covered Participants and Qualified
Dependents must make the continuation coverage payment prior to the first day
of the month in which such coverage will take effect.  However, a covered
Participant or Qualified Dependent has 45 days from the date of an affirmative
election to pay the continuation coverage payment for the first month's payment
and the cost for the period between the date medical coverage would otherwise
have terminated due to the Qualifying Event and the date the covered
Participant and/or Qualified Dependent actually elects COBRA continuation
coverage.  

 

The covered Participant and/or
Qualified Dependent shall have a 30-day grace period to make the continuation
coverage payments due thereafter.  Continuation coverage payments must be
postmarked on or before the completion of the 30-day grace period.  If
continuation coverage payments are not made on a timely basis, COBRA
continuation coverage will terminate as of the last day of the month for which
timely premiums were made.  The 30-day grace period shall not apply to the
45-day period for the first month’s payment of COBRA premiums as set out in the
section above. 

 

If payment is received that is
significantly less than the required continuation coverage payment, then
continuation coverage will terminate as of the last day of the month for which
premiums were paid.  A payment is considered significantly less than the amount
due if it is greater than the lesser of $50 or 10% of the required continuation
coverage payment.  Upon receipt of a continuation coverage payment that is
insignificantly less than the required amount, the Plan Administrator must
notify the covered Participant or Qualified Dependent of the amount of the
shortfall and provide them with an additional 30-day grace period from the date
of the notice for this payment only.  

 

10.8            
 Limitation on Participant's Rights to COBRA Continuation Coverage.

 

(1)               
 If a Qualified Dependent loses, or will lose medical
coverage under this Plan as a result of divorce, legal separation, entitlement
to Medicare, or ceasing to be a Dependent, such Qualified Dependent is
responsible for notifying the Plan Administrator in writing within 60 days of
the Qualifying Event.  Failure to make timely notification will terminate the
Qualified Dependent's rights to COBRA continuation coverage under this Article.

(2)               
 A Participant must complete and return the required
enrollment materials within 60 days from the later of (a) the date of loss of
coverage, or (b) the date the Plan Administrator sends notice of eligibility
for COBRA continuation coverage.  Failure to enroll for COBRA continuation
coverage during this 60-day period will terminate all rights to COBRA continuation
coverage under this Article.  An affirmative election of COBRA continuation
coverage by a Participant or his/her spouse shall be deemed to be an election
for that Participant's Dependent(s) who would otherwise lose coverage under the
Plan.

 

 

 

 

10.9            
 Subsequent
Qualifying Event.  If a second Qualifying Event occurs
during an 18-month extension explained above, coverage may be continued for a
maximum of 36 months from the date of the first Qualifying Event.  In the event
the Dependent loses coverage due to a Qualifying Event and after such date the
Participant becomes entitled to Medicare, the Dependent shall have available up
to 36 months of coverage measured from the date of the Qualifying Event that
causes the loss of coverage.  If the Participant was entitled to Medicare prior
to the Qualifying Event, the Dependent shall have up to 36 months of coverage
measured from the date of entitlement to Medicare.

 

10.10        
 Extension of
COBRA Continuation Period for Disabled Individuals.  The period of continuation shall be extended to 29 months in
total (measured from the date of the Qualifying Event) in the event the
individual is disabled as determined by the Social Security laws within 60 days
of the Qualifying Event.  The individual must provide evidence to the Plan
Administrator of such Social Security determination prior to the earlier of 60
days after the date of the Social Security determination, or the expiration of
the initial 18 months of COBRA continuation coverage.  In such event, the
Employer may charge the individual up to 150% of the COBRA cost of the
coverage.

 

ARTICLE 11   PRIVACY OF
MEDICAL INFORMATION

 

11.1            
 Definitions.  For purposes of this
Article 11, the following defined terms shall have the meaning assigned to such
terms in this subsection: 

(1)           “Business Associate” shall have the
meaning assigned to such phrase at 45 C.F.R. § 160.103; 

 

(2)           “Health Care Operations” shall have the
meaning assigned to such phrase at 45 C.F.R. § 164.501;

 

(3)           “HIPAA” shall mean Parts 160 (“General
Administrative Requirements”) and 164 (“Security and Privacy”) of Title 45 of
the Code of Federal Regulations as such parts are amended from time to time; 

 

(4)           “Payment” shall have the meaning
assigned to such phrase at 45 C.F.R § 160.103;

 

(5)           “Protected Health Information” or “PHI”
shall have the meaning assigned to such phrase at 45 C.F.R. § 160.103; and

 

(6)           “Treatment” shall have the meaning
assigned to such phrase at 45 C.F.R. § 164.501.

 

11.2            
 Privacy
Provisions Relating to Protected Health Information (“PHI”).  The Plan and its Business
Associates shall use and disclose PHI to the extent permitted by, and in
accordance with, HIPAA, for purposes of providing benefits under the Plan and
for purposes of administering the plan, including, by way of illustration and
not by way of limitation, for purposes of Treatment, Payment, and Health Care
Operations.  

 

 

 

 

11.3            
 Disclosure
of De-Identified or Summary Health Information.  The HIPAA Plan, or, with respect to the
HIPAA Plan, a health insurance issuer, may disclose summary health information
(as that phrase is defined at 45 C.F.R. § 160.5049a))  to the Plan Sponsor of
the HIPAA Plan (and its affiliates) if such entity requests such information
for the purpose of: 

 

(1)           Obtaining premium bids from health plans
for providing health

                insurance coverage under the HIPAA
Plan; 

 

(2)           Modifying, amending or terminating the
group health benefits

                under the HIPAA Plan. 

 

In addition, the HIPAA Plan or a health insurance
insurer with respect to the HIPAA Plan may disclose to the Plan Sponsor of the
HIPAA Plan (or its affiliates) information on whether an individual is
participating in the group health benefits provided by the HIPAA Plan or is
enrolled in, or has ceased enrollment with health insurance offered by the
HIPAA Plan.

 

11.4            
 The
HIPAA Plan Will Use and Disclose PHI as Required by Law      

           or as Permitted by the Authorization of the Participant or
Beneficiary. 

 

Upon
submission of an authorization signed by a Participant, beneficiary, subscriber
or personal representative that meets HIPAA requirements, the HIPAA Plan will
disclose PHI. 

 

In addition, PHI will be disclosed to the extent
permitted or required by law, without the submission of an authorization form.

 

11.5            
 Disclosure
of PHI to the Plan Sponsor.  The HIPAA Plan will disclose information to the Plan Sponsor
only upon certification from the Plan Sponsor that the HIPAA Plan documents
have been amended to incorporate the assurances provided below. 

 

The Plan Sponsor agrees to:

(1)           not use or further disclose PHI
other than as permitted or required by the HIPAA Plan document or as required
by law; 

 

(2)           ensure that any affiliates or agents,
including a subcontractor, to whom the Plan Sponsor provides PHI
received from the HIPAA Plan, agrees to the same restrictions and conditions
that apply to the Plan Sponsor with respect to such PHI; 

 

(3)           not use or disclose PHI
for employment-related actions and decisions unless authorized by the
individual to whom the PHI relates; 

 

(4)           not use or disclose PHI
in connection with any other benefits or employee benefit plan of the Plan
Sponsor or its affiliates unless permitted by the Plan or authorized by an
individual to whom the PHI relates; 

 

(5)           report to the Plan any PHI
use or disclosure that is inconsistent with the uses or disclosures provided
for of which it becomes aware; 

 

 

 

(6)           make
 PHI available to an individual in accordance with HIPAA’s access rules; 

 

(7)           make PHI available for amendment and
incorporate any amendments to PHI in accordance with HIPAA; 

 

(8)           make available the information required
to provide an accounting

                of disclosures; 

 

(9)           make internal practices, books and
records relating to the use and disclosure of PHI received from the HIPAA Plan
available to the Secretary of the United States Department of Health and Human
Resources for purposes of determining the Plan’s compliance with HIPAA; and

 

(10)         if feasible, return or destroy all PHI
received from the HIPAA Plan that the Plan Sponsor still maintains in any form,
and retain no copies of such PHI when no longer needed for the purpose for
which disclosure was made (or if return or destruction is not feasible, limit
further uses and disclosures to those purposes that make the return or
destruction infeasible). 

 

11.6            
 Separation
Between the Plan Sponsor and the HIPAA Plan.  In accordance with HIPAA,
only the following employees and Business Associate personnel shall be given
access to PHI: 

 

(1)           employees of the AT&T Benefits
and/or AT&T Executive Compensation organizations responsible for
administering group health plan benefits under the HIPAA Plan, including those
employees whose functions in the regular course of business include Payment,
Health Care Operations or other matters pertaining to the health care programs
under a HIPAA Plan; 

 

(2)           employees who supervise the work of the
employees described in (1), above; 

 

(3)           support personnel, including other
employees outside of the AT&T Benefits or AT&T Executive Compensation
organizations whose duties require them to rule on health plan-related appeals
or perform functions concerning the HIPAA Plan; 

 

(4)           investigatory personnel to the limited
extent that such PHI is necessary to conduct investigations of possible fraud; 

 

(5)           outside and in-house legal counsel
providing counsel to the HIPAA Plan; 

 

(6)           consultants providing advice concerning
the administration of the HIPAA Plan; and

 

(7)           the employees of Business Associates
charged with providing services to the HIPAA Plan. 

 

 

 

 

The persons
identified above shall have access to and use PHI to the extent that such
access and use is necessary for the administration of group health benefits
under a HIPAA Plan.  If these persons do not comply with this Plan document,
the Plan Sponsor shall provide a mechanism for resolving issues of
noncompliance, including disciplinary sanctions. 

 

11.7            
 Enforcement.   

Enforcement
of this Article 11 shall be as provided for by HIPAA. In particular,
participants and beneficiaries are not authorized to sue with regard to
purported breaches of this Article 11 except as explicitly permitted by HIPAA. 

ARTICLE 12                      CLAIM
AND APPEAL PROCESS

 

12.1                        Claims for Benefits
under the Plan. – See Appendix B.

 

12.2                        Claims
Related to Basic Eligibility for Coverage under the Plan and Claims Related to
the Article 8 Loyalty Conditions. 

 

 

(a)           Claims. 
A person who believes that he or she is being denied a benefit to which he or
she is entitled under this Plan (hereinafter referred to as a “Claimant”) based
on a claim for basic eligibility for coverage under the Plan or a claim related
to the Article 8 Loyalty Conditions may file a written request for such benefit
with the Executive Compensation Administration Department, setting forth his or
her claim. The request must be addressed to the AT&T Executive Compensation
Administration Department at its then principal place of business.

(b)           Claim
Decision.  Upon receipt of a claim, the AT&T Executive Compensation
Administration Department shall review the claim and provide the Claimant with
a written notice of its decision within a reasonable period of time, not to exceed
ninety (90) days, after the claim is received. If the AT&T Executive
Compensation Administration Department determines that special circumstances
require an extension of time beyond the initial ninety (90)- day claim review
period, the AT&T Executive Compensation Administration Department shall
notify the Claimant in writing within the initial ninety (90)-day period and
explain the special circumstances that require the extension and state the date
by which the AT&T Executive Compensation Administration Department expects
to render its decision on the claim. If this notice is provided, the AT&T
Executive Compensation Administration Department may take up to an additional
ninety (90) days (for a total of one hundred eighty (180) days after receipt of
the claim) to render its decision on the claim. 

If the claim is
denied by the AT&T Executive Compensation Administration Department, in
whole or in part, the AT&T Executive Compensation Administration Department
shall provide a written decision using language calculated to be understood by
the Claimant and setting forth:  (i) the specific reason or reasons for such
denial; (ii) specific references to pertinent provisions of this Plan on which
such denial is based; (iii) 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; (iv) a
description of the Plan’s procedures for review of denied claims and the steps
to be taken if the Claimant wishes to submit the claim for

 

 

review; (v) the time
limits for requesting a review of a denied claim under this section and for
conducting the review under this section ; and (vi)  a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA if the claim
is denied following review under this section. 

(c)           Request
for Review. Within sixty (60) days after the receipt by the Claimant of the
written decision on the claim provided for in this section, the Claimant may
request in writing that the Plan Administrator review the determination of the
AT&T Executive Compensation Administration Department.  Such request must
be addressed to the Plan Administrator at the address provided in the written
decision regarding the claim.  To assist the Claimant in deciding whether to
request a review of a denied claim or in preparing a request for review of a
denied claim, a Claimant shall be provided, upon written request to the Plan
Administrator and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the claim.  The Claimant
or his or her duly authorized representative may, but need not, submit a
statement of the issues and comments in writing, as well as other documents,
records or other information relating to the claim for consideration by the
Committee.  If the Claimant does not request a review by the Plan Administrator
of the AT&T Executive Compensation Administration Department’s decision
within such sixty (60)-day period, the Claimant shall be barred and estopped
from challenging the determination of the AT&T Executive Compensation
Administration Department. 

(d)           Review
of Decision.  Within sixty (60) days after the Plan Administrator’s receipt of
a request for review, the Plan Administrator will review the decision of the
AT&T Executive Compensation Administration Department.  If the Plan
Administrator determines that special circumstances require an extension of
time beyond the initial sixty (60)-day review period, the Plan Administrator
shall notify the Claimant in writing within the initial sixty (60)-day period
and explain the special circumstances that require the extension and state the
date by which the Plan Administrator expects to render its decision on the
review of the claim.  If this notice is provided, the Plan Administrator may
take up to an additional sixty (60) days (for a total of one hundred twenty
(120) days after receipt of the request for review) to render its decision on
the review of the claim. 

During its review of
the claim, the Plan Administrator shall:

(1)           Take
into account all comments, documents, records, and other information submitted
by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial review of the claim
conducted pursuant to this section;

(2)           Follow
reasonable procedures to verify that its benefit determination is made in accordance
with the applicable Plan documents; and

(3)           Follow
reasonable procedures to ensure that the applicable Plan provisions are applied
to the Participant to whom the claim relates in a manner consistent with how
such provisions have been applied to other similarly-situated Participants. 

After considering
all materials presented by the Claimant, the Plan Administrator will render a
decision, written in a manner designed to be understood by the Claimant.  If
the Plan Administrator denies the claim on review, the written decision will
include (i) the specific reasons for the decision; (ii) specific references to
the pertinent provisions of this Plan on which the decision is based; (iii) a
statement that the Claimant is entitled to receive, upon request to the

 

 

 

Plan Administrator
and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the claim; and (iv) a statement of
the Claimant’s right to bring a civil action under Section 502(a) of ERISA. 

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

 

 

 

APPENDIX A

 

AT&T HEALTH
PLAN

 

2020 MONTHLY CONTRIBUTIONS,
ANNUAL DEDUCTIBLE, COINSURANCE PERCENTAGES AND ANNUAL OUT-OF-POCKET MAXIMUM

 

Active
Participants

	
  Monthly Contributions

  	
  Individual - $196

  Individual + Spouse - $322

  Individual + 1 or More Children - $212

  Individual + Spouse + 1 or More Children - $501

  
	
  Annual Deductible 

  	
  Individual - $1,700

  All other tiers - $3,400

  
	
  Coinsurance Percentage 

  	
  10% after the Annual Deductible is met.  Coinsurance
  applies until the Annual Out-of-Pocket Maximum is reached.

  
	
  Annual Out-of-Pocket Maximum

  	
  Individual - $6,900

  All other tiers- $13,800 (individual amount of
  $6,900)

  

 

Retired
Participants – Monthly Contributions

	
  Retired Prior to August 31, 1992 and Surviving
  Spouses

  	
  Individual - $209

  Individual + Spouse - $209

  Individual + 2 or More - $209

  
	
  Retired on or after September 1, 1992 and Surviving
  Spouses

   

  Note:  The Plan Administrator shall maintain records
  governing whether a Retired Participant is in Class A, B, C or D.  

   

  	
  Class A

  	
  Individual - $667

  Individual + Spouse - $1,016

  Individual + 1 or More Children - $667

  Individual + Spouse + 1 or More Children - $946

  
	
  Class B

  	
  Individual - $799

  Individual + Spouse - $1,150

  Individual + 1 or More Children - $799

  Individual + Spouse + 1 or More Children - $1,159

  
	
  Class C

  	
  Individual - $987

  Individual + Spouse - $1,339

  Individual + 1 or More Children - $987

  Individual + Spouse + 1 or More Children - $1,399

  
	
  Class D

  	
  Individual - $1,266

  Individual + Spouse - $1,906

  Individual + 1 or More Children - $1,266

  Individual + Spouse + 1 or More Children - $1,912

  

 

COBRA Continuation Coverage – Monthly Contributions

	
  Active COBRA

  	
  Individual - $2,295

  Individual + Spouse - $4,702

  Individual + 1 or More Children - $3,729

  Individual + Spouse + 1 or More Children - $6,725

  
	
  Retired Prior to August 31, 1992 and Surviving
  Spouses COBRA

  	
  Individual - $1,502

  Individual + 1 - $2,934

  Individual + 2 or More - $4,213

  
	
  Retired on or after September 1, 1992 and Surviving
  Spouses COBRA

  	
  Individual - $1,441

  Individual + Spouse - $2,953

  Individual + 1 or More Children - $2,342

  Individual + Spouse + 1 or More Children - $4,224

  

 

APPENDIX B

 

CLAIMS PROCEDURE
APPLICABLE TO CLAIMS FOR BENEFITS UNDER THE PLAN

 

Claim for Benefits Procedures

You, your covered dependents or a duly
authorized person has the right under ERISA and the Plan to file a written
claim for benefits under the Plan. The following describes the procedures used
by the Plan to process claims for benefits, along with your rights and
responsibilities. These procedures were designed to comply with the rules of
the Department of Labor (DOL) concerning claims for Benefits. It is important
that you follow these procedures to make sure that you receive full benefits
under the Plan.

The Plan is an ERISA plan, and you may
file suit in federal court if you are denied benefits you believe are due you
under the Plan. However, you must complete the full claims and appeal process
offered under the Plan before filing a lawsuit.

Filing
a Claim for Benefits

When filing a claim for benefits, you
should file the claim with the Claims Administrator.  The Claims Administrator
is the third party to whom claims and appeal responsibility has been delegated
as permitted under Section 9.1 of the Plan.

The following are not considered claims
for benefits under the Plan:

·     
 A claim related to basic eligibility for coverage under the Plan
(See Section 12.2 of the Plan).

·     
 A claim related to the Loyalty Conditions contained in Article 8
of the Plan (See Section 12.2 of the Plan).

Claim Filing Limits

A request for payment of benefits must be
submitted within one year after the date of service or the date the
prescription was provided.

Required Information

When you request payment of benefits from
the Plan, you must provide certain information as requested by the Claims
Administrator. 

Benefit Determinations

Post-Service
Claims

Post-service claims are those claims that
are filed for payment of benefits after medical care has been received. If your
post-service claim is denied, you will receive a written notice from the Claims
Administrator within 30 days of receipt of the claim, as long as all needed
information identified above and any other information that the Claims
Administrator may request in connection with services rendered to you was
provided with the claim. The Claims Administrator will notify you within this
30-day period if additional information is needed to process the Claim and may
request a one-time extension not longer than 15 days and pend your Claim until
all information is received.

Once notified of the extension, you then
have 45 days to provide this information. If all of the needed information is
received within the 45-day time frame and the claim is denied, the claims
Administrator will notify you of the denial within 15 days after the
information is received. If you don't provide the needed information within the
45-day period, your claim will be denied.

A denial notice will explain the reason
for denial, refer to the part of the Plan on which the denial is based, and
provide the claim appeal procedures.

Pre-Service
Claims

Pre-service claims are those claims that
require notification or approval prior to receiving medical care or require
notification within a specified time period after service begins as required
under the Plan provisions. If your claim is a pre-service claim and is
submitted properly with all needed information, you will receive written notice
of the claim decision from the Claims Administrator within 15 days of receipt
of the claim. If you file a pre-service claim improperly, the Claims
Administrator will notify you of the improper filing and how to correct it
within five days after the pre-service claim is received. If additional
information is needed to process the

 

pre-service
claim, the Claims Administrator will notify you of the information needed
within 15 days after the claim was received and may request a one-time
extension not longer than 15 days and pend your claim until all information is
received. Once notified of the extension, you then have 45 days to provide this
information. If all of the needed information is received within the 45-day
time frame, the Claims Administrator will notify you of the determination
within 15 days after the information is received. If you don't provide the
needed information within the 45-day period, your claim will be denied. A
denial notice will explain the reason for denial, refer to the part of the Plan
on which the denial is based, and provide the claim appeal procedures.

Urgent Care Claims That Require Immediate Action

Urgent care claims are those claims that
require notification or approval prior to receiving medical care in which a
delay in treatment could seriously jeopardize your life or health or the
ability to regain maximum function or, in the opinion of a physician with
knowledge of your medical condition, could cause severe pain. In these
situations:

·     
 You will receive notice of the benefit determination in writing or
electronically within 72 hours after the Claims Administrator receives all
necessary information, taking into account the seriousness of your condition.

·     
 Notice of denial may be oral with a written or electronic
confirmation to follow within three days.

If you filed an urgent claim improperly,
the Claims Administrator will notify you of the improper filing and how to
correct it within 24 hours after the urgent claim was received. If additional
information is needed to process the claim, the Claims Administrator will
notify you of the information needed within 24 hours after the claim was
received. You then have 48 hours to provide the requested information.

You will be notified of a determination no
later than 48 hours after either:

·     
 The Claims Administrator's receipt of the requested information.

·     
 The end of the 48-hour period within which you were to provide the
additional information, if the information is not received within that time.

A denial notice will explain the reason
for denial, refer to the part of the Plan on which the denial is based, and
provide the claim appeal procedures.

Concurrent
Care Claims

If an ongoing course of treatment was
previously approved for a specific period of time or number of treatments, and
your request to extend the treatment is an urgent care claim as defined above,
your request will be decided within 24 hours, provided your request is made at
least 24 hours prior to the end of the approved treatment. The Claims
Administrator will make a determination on your request for the extended
treatment within 24 hours from receipt of your request.

If your request for extended treatment is
not made at least 24 hours prior to the end of the approved treatment, the
request will be treated as an urgent care claim and decided according to the
time frames described above. If an ongoing course of treatment was previously
approved for a specific period of time or number of treatments, and you request
to extend treatment in a non-urgent circumstance, your request will be
considered a new claim and decided according to post-service or pre-service
timeframes, whichever applies.

How to
Appeal a Claim Decision

If you disagree with a pre-service or post-service claim
determination after following the above steps, you can contact the applicable
Claims Administrator in writing to formally request an appeal. Your first
appeal request must be submitted to the Claims Administrator within 180 days
after you receive the Claim denial.

Appeal
Process

A qualified individual who was not
involved in the decision being appealed will be appointed to decide the appeal.
The Claims Administrator may consult with, or seek the participation of,
medical experts as part of the appeal resolution process. You must consent to
this referral and the sharing of pertinent medical claim information. Upon
written request and free of charge you have the right to reasonable access to
and copies of all documents, records and other information relevant to your
claim for benefits.

 

 

 

 

Appeals Determinations

Pre-Service and Post-Service
Claim Appeals

You will be provided written or electronic
notification of the decision on your appeal as follows:

·     
 For appeals of pre-service claims, the first-level appeal will be
conducted and you will be notified by the Claims Administrator of the decision
within 15 days from receipt of a request for appeal of a denied Claim. The
second-level appeal will be conducted and you will be notified by the Claims
Administrator of the decision within 15 days from receipt of a request for
review of the first-level appeal decision.

·     
 For appeals of post-service claims, the first-level appeal will be
conducted and you will be notified by the Claims Administrator of the decision
within 30 days from receipt of a request for appeal of a denied claim. The
second-level appeal will be conducted and you will be notified by the Claims
Administrator of the decision within 30 days from receipt of a request for
review of the first-level appeal decision.

·     
 For procedures associated with urgent Claims, refer to the
following "Urgent
Claim Appeals That Require Immediate Action" section.

·     
 If you are not satisfied with the first-level appeal decision of
the Claims Administrator, you have the right to request a second-level appeal
from the Claims Administrator. Your second level appeal request must be
submitted to the Claims Administrator in writing within 60 days from receipt of
the first-level appeal decision.

·     
 For pre-service and post-service claim appeals, the Plan
Administrator has delegated to the Claims Administrator the exclusive right to
interpret and administer the provisions of the Plan. The Claims Administrator's
decisions are conclusive and binding.

Please note that the Claims
Administrator's decision is based only on whether or not benefits are available
under the Plan for the proposed treatment or procedure. The determination as to
whether the pending health service is necessary or appropriate is between you
and your physician.

Urgent Claim Appeals
That Require Immediate Action

Your appeal may require immediate action
if a delay in treatment could significantly increase the risk to your health or
the ability to regain maximum function or cause severe pain.

In these urgent situations, the appeal
does not need to be submitted in writing. You or your physician should call the
Claims Administrator as soon as possible. The Claims Administrator will provide
you with a written or electronic determination within 72 hours following
receipt by the Claims Administrator of your request for review of the
determination taking into account the seriousness of your condition.

For urgent claim appeals, the Plan
Administrator has delegated to the applicable Claims Administrator the
exclusive right to interpret and administer the provisions of the Plan. The
Claims Administrator's decisions are conclusive and binding.

In any case, a
Participant or Beneficiary may have further rights under ERISA. The Plan
provisions require that Participants or Beneficiary pursue and exhaust all
claim and appeal rights described in this section before they seek any other
legal recourse regarding claims for benefits. 

 

 

 

 

APPENDIX C

DISCLOSURE OF
GRANDFATHERED STATUS

MODEL NOTICE

 

AT&T, as plan
sponsor, believes this Plan is a “grandfathered health plan” under the Patient
Protection and Affordable Care Act (the “Affordable Care Act”).  As permitted
by the Affordable Care Act, a grandfathered health plan can preserve certain basic
health coverage that was already in effect when that law was enacted.  Being a
grandfathered health plan means that the plan may not include certain consumer
protections of the Affordable Care Act that apply to other plans, for example,
the requirement for the provision of preventive health services without any
cost sharing.  However, grandfathered health plans must comply with certain
other consumer protections of the Affordable Care Act, for example, the
elimination of lifetime limits on benefits.

Questions regarding which protections apply
and which protections do not apply to a grandfathered health plan and what
might cause a plan to change from grandfathered health plan status can be
directed to the plan administrator at P.O. Box 30558, Salt Lake City, Utah  84130-0558.  You
 may
also contact the Employee Benefits Security Administration, U.S. Department of
labor at 1-866-444-3272 or www.dol.gov/ebsa/healthreform.  This website has
a table summarizing which protections do and do not apply to grandfathered
health plans.  

 

 

 

 

APPENDIX D

 

 

 

Notwithstanding the provisions and
limitations of Section 2.15 of the Plan, the following Officers shall be included in the term
“Eligible Employee” and shall be eligible to participate in the Plan (along
with any Dependents) subject to all applicable provisions of the Plan:

 

	
  Name

  	
  Title

  	
  Effective Date of
  Participation

  
	
  David McAtee

  	
  Senior Executive Vice
  President & General Counsel

  	
  February 1, 2018

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