Document:

ex10kkk.htm

    Exhibit
10-kkk

    

    

    BELLSOUTH SPLIT-DOLLAR LIFE INSURANCE
PLAN

    

    AS
AMENDED AND RESTATED

    EFFECTIVE
AS OF NOVEMBER 24, 2003

    

    

    1.
PURPOSE

    

          The
purpose of the BellSouth Split-Dollar Life Insurance Plan (the "Plan") is to
provide a split-dollar insurance arrangement under which BellSouth Corporation
and its subsidiaries and affiliates can assist key employees in acquiring and
financing life insurance coverage. This Plan incorporates the provisions of the
BellSouth Corporation Executive Life Insurance Plan and the BellSouth
Corporation Senior Manager Life Insurance Plan, as amended as of the effective
date of this Plan (the "Prior Plans"), and, as of such effective date, shall be
deemed to constitute a complete restatement of both Prior Plans, as amended
(except to the extent otherwise specifically provided in Section 3.1 of this
Plan).

    

    2.
DEFINITIONS

    

          For
purposes of this Plan, the following terms have the meanings set forth
below:

    

          2.1   "AGREEMENT"
means the agreement executed between the Employer and a Participant implementing
the terms of this Plan, substantially in the form attached hereto as Exhibit
"A".

    

          2.2   "ASSIGNMENT"
means the collateral assignment executed by the Policy Owner, substantially in
the form attached hereto as Exhibit "B".

    

          2.3   "COVERAGE
AMOUNT" means the face amount of the insurance death benefit provided to a
Participant under the Plan, as specified in the Participant's
Agreement.

    

          2.4   "DISABILITY"
means that the Participant is receiving disability benefits under any long-term
disability plan sponsored by the Employer or an affiliated entity.

    

          2.5   "EFFECTIVE
DATE" means the effective date of the Plan, which is January 1,
1998.

    

          2.6   "EMPLOYEE"
means an employee or former employee of the Employer who is eligible to
participate in the Plan.

    

          2.7   "EMPLOYER"
means BellSouth Corporation and any subsidiary or affiliate of BellSouth
Corporation which is authorized by the Plan Administrator to participate in this
Plan.

    

          2.8   "EMPLOYER
ACCOUNT" means, with respect to a Participant's Policy, a bookkeeping entry
maintained by the Employer pursuant to Section 6 of the Plan, equal to the
lesser of (1) the cash value of the Policy, or (2) the amount of Policy premiums
paid by the Employer (and not collected from the Participant). With respect to a
Replacement Policy, the amount of Policy premiums paid by the Employer shall be
deemed to include the total of all such premiums paid on the Replacement Policy
and the Replaced Policy, reduced by an amount equal to that portion of the
Replaced Policy Cash Value, if any, paid to the Employer at the time the
Replacement Policy is issued.

    

          2.9   "EMPLOYER
PREMIUM" means, with respect to a Participant's Policy, the total Policy premium
payable for the Policy Year by the Company as specified in the Participant's
Agreement, less the portion of the premium to be paid by the Participant
pursuant to Section 5.1 of the Plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          2.10  "ENROLLMENT
AGE" means the Participant's age at the time of enrollment in the Prior Plans as
to the Participant's initial Coverage Amount, and it means the Participant's age
at a subsequent enrollment for an increased Coverage Amount as to the increased
Coverage Amount; provided, however, that with respect to a Replacement Policy,
the age at enrollment shall mean the age at the time of enrollment for the
Replaced Policy.

    

          2.11  "INSURANCE
COST" means, with respect to a Participant, the annual cost for the
Participant's Coverage Amount determined pursuant to the Insurance Cost schedule
maintained by the Plan Administrator.  The Insurance Cost for a
Participant shall be determined as of the time of the Participant's enrollment
in the Prior Plan(s), based on the Participant's Coverage Amount and Enrollment
Age, and shall not change thereafter. A smoker rate shall be used to determine
the Insurance Cost for any Participant who smoked cigarettes at any time during
the twelve month period immediately preceding the Participant's enrollment; a
nonsmoker rate shall be used for all other Participants. However,
notwithstanding the previous sentence, if a Replacement Policy is issued for a
Participant and the Participant qualifies as a nonsmoker for the Replacement
Policy, the nonsmoker rate shall thereafter be used to determine the Insurance
Cost for the Participant.

    

                If
a Participant's coverage is in effect for a period of less than twelve (12)
months during any Policy Year, the Participant's Insurance Cost for that year
shall be determined by multiplying the annual cost as determined from the
insurance cost schedule by a fraction, the numerator of which is the number of
full months that the coverage is in effect and the denominator of which is
twelve (12).

    

          2.12  "INSURER"
means, with respect to a Participant's Policy, the insurance company issuing the
insurance policy or group policy certificate on the Participant's life (or on
the joint lives of the Participant and the Participant's spouse) pursuant to the
provisions of the Plan.

    

          2.13  "PARTICIPANT"
means an Employee who is participating in the Plan.

    

          2.14  "PARTICIPANT
ACCOUNT" means, with respect to a Participant's Policy, a bookkeeping entry
maintained by the Employer pursuant to Section 6 of the Plan, equal to the
excess, if any, of the cash value of the Policy over the Employer
Account.

    

          2.15  "PARTICIPANT
PREMIUM" means, with respect to each Policy Year (or portion thereof) for a
Participant, the greater of (1) the Participant's Insurance Cost; or (2) the one
year term cost for the Policy Year (or portion thereof) determined based on the
Participant's age at the beginning of the Policy Year, the Insurer's published
one year term rates in effect at the beginning of the Policy Year, and the
Participant's Coverage Amount under the Plan.  The one year term cost
amount shall be determined pursuant to the guidelines set forth in Revenue
Ruling 66-110, 1966-1 C.B. 12, and Revenue Ruling 67-154, 1967-1 C.B. 11, and
shall be conclusively determined by the Plan Administrator.

    

          2.16  "PERMANENT
POLICY" means a Participant's Policy having cash values which are projected to
be sufficient to continue to provide death benefit coverage at least equal to
the Participant's Coverage Amount until the policy maturity date specified in
the Participant's Policy (determined without regard to any Policy rider which
extends the maturity date beyond the originally scheduled policy maturity date),
and which is projected to have a cash accumulation value equal to at least
ninety-five percent (95%) of the Policy Coverage Amount at the maturity date
specified in such Policy, with no further premium payments, following a
withdrawal by the Employer of all amounts to which it is entitled pursuant to
Section 8.2e or Section 8.3. A determination as to whether a Policy is at a
given time a Permanent Policy shall be made by the Plan Administrator, and shall
be based on Policy projections provided by the Insurer or its agent utilizing
the Policy's then current mortality rates and Policy expenses, and the following
Policy interest crediting rates. For the Policy Year of the Employer withdrawal
made pursuant to Section 8.2e or Section 8.3, the projections shall reflect the
actual Policy interest crediting rate in effect for such year (or, if such rate
is not known when the determination is made, the actual rate in effect for the
preceding Policy Year). For each of the ten (10) succeeding Policy Years, the
projections shall reflect that rate decreased ratably such that the rate in the
tenth Policy Year following the Policy Year in which the Employer withdrawal
occurs will be five percent (5%). For all successive Policy Years, the
projections shall reflect a five percent (5%) Policy interest crediting rate.
Notwithstanding the foregoing, if the actual Policy interest crediting rate in
effect when the determination is made is less than five percent (5%), the
projections shall reflect such lower rate for the Policy Year of the Employer
withdrawal and all subsequent Policy Years.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          2.17  "PLAN"
means the BellSouth Split-Dollar Life Insurance Plan. Except as otherwise
provided in Section 3.1, with respect to each Participant who participated in
the BellSouth Corporation Executive

    Life
Insurance Plan, the Plan shall be construed and interpreted as a restatement of
the provisions of such plan, as amended; and, with respect to each Participant
who participated in the BellSouth Corporation Senior Manager Life Insurance
Plan, the Plan shall be construed and interpreted as a restatement of such plan,
as amended.

    

          2.18  "PLAN
ADMINISTRATOR" means the Chief Executive Officer of BellSouth Corporation and
any individual or committee he designates to act on his behalf with respect to
any or all of his responsibilities hereunder; provided, the Board of Directors
of BellSouth Corporation may designate any other person or committee to serve in
lieu of the Chief Executive Officer as the Plan Administrator with respect to
any or all of the administrative responsibilities hereunder.

    

          2.19  "POLICY"
means the life insurance coverage acquired on the life of the Participant (or on
the joint lives of the Participant and the Participant's spouse) by the
Participant or other Policy Owner, which may be issued as a separate insurance
policy or a certificate under a group policy.

    

          2.20  "POLICY
OWNER" means the Participant or that person or entity to whom the Participant
has assigned his interest in the Policy. In the case of a Replacement Policy
issued to replace a Policy for which the Policy Owner is other than the
Participant, the Policy Owner of the Replacement Policy shall be the same as the
Policy Owner of the Policy being replaced, unless elected otherwise by such
Policy Owner.

    

          2.21  "POLICY
YEAR" means the twelve month period (and each successive twelve month period)
beginning on the effective date of the Agreement.

    

          2.22  "PREMIUM
PAYMENT YEARS" means, with respect to a Participant's Policy, the number of
consecutive Policy Years (including, for a Replacement Policy, the number of
Policy Years during which the Replaced Policy was in force), beginning with the
first Policy Year, during which the Employer is required to pay a Policy
premium, as specified in the Participant's Agreement.

    

          2.23  "REPLACED
POLICY" means a Policy which has been replaced by a Replacement Policy. If a
Participant's Policy has been replaced more than one time, then the term
Replaced Policy shall include all prior Policies.

    

          2.24  "REPLACED
POLICY CASH VALUE" means the cash value of the Replaced Policy on the Effective
Date.

    

          2.25  "REPLACEMENT
POLICY" means a Policy issued to replace a Policy previously issued under the
Plan.

    

          2.26  "RETIREMENT"
means a termination of the Participant's employment with the Employer under
circumstances where the Participant is immediately eligible to receive pension
benefits under the Supplemental Executive Retirement Plan (SERP) maintained by
the Employer or one of its subsidiaries.

    

          2.27  "SINGLE
LIFE COVERAGE" means life insurance coverage on the life of the
Participant.

    

          2.28  "SURVIVORSHIP
COVERAGE" means life insurance coverage on the lives of the Participant and the
Participant's spouse, with the life insurance death benefit to be payable at the
death of the last survivor of the Participant and the Participant's
spouse.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          2.29  "TERMINATED
FOR CAUSE" means, with respect to a Participant, the termination of the
Participant's employment with the Employer due to: (i) fraud, misappropriation,
embezzlement, or intentional material damage to the property or business of the
Employer; (ii) commission of a felony involving moral turpitude of which the
Participant is finally adjudicated guilty; or (iii) continuance of either
willful and repeated failure or grossly negligent and repeated failure by the
Participant to materially perform his duties.

    

    3.
ELIGIBILITY

    

          3.1   GENERAL.
Each Employee with a Prior Plan Agreement in effect on the day preceding the
Effective Date shall be eligible to participate in the Plan, provided that the
Employee (and any other appropriate party, such as the Employee's spouse or a
Policy Owner other than the Employee, as determined by the Plan Administrator)
executes an Agreement consenting to the terms of this Plan, as amended, and
completes such other forms as the Plan Administrator shall require. Any Employee
eligible to participate who fails to execute (or secure execution of) an
enrollment form consenting to the terms of this Plan, as amended, within the
time period prescribed by the Plan Administrator, shall not be eligible for
coverage under the Plan, but shall remain subject to the terms and conditions of
the Prior Plan(s) in which such Employee participates as in effect on the day
preceding the Effective Date, as amended thereafter from time to time. Effective
November 24, 2003, any Employee who is, or becomes, an executive officer or
director of BellSouth Corporation (as such terms are used in Section 402 of the
Sarbanes-Oxley Act of 2002) shall be ineligible to participate in the Plan and
any Agreement previously executed by such Employee shall be terminated pursuant
to Section 8 of the Plan.

    

          3.2   TYPE
OF COVERAGE. The type(s) of coverage for a Participant on the Effective Date
shall be the type(s) of coverage in place on the day preceding the Effective
Date pursuant to the Participant's Agreement(s) under the Prior Plan(s).
Provided, however, that the Policy Owner may make a one-time election to
exchange Survivorship Coverage for Single Life Coverage (equal to fifty percent
(50%) of the Participant's Survivorship Coverage Amount), or to exchange Single
Life Coverage for Survivorship Coverage (equal to two hundred percent (200%) of
the Participant's Single Life Coverage Amount), subject to any proof of
insurability required by the Insurer. Such an election must be made within the
time period prescribed by the Plan Administrator. If an unmarried Participant
enrolls for Single Life Coverage and subsequently marries, then, subject to the
approval of the Plan Administrator, the Participant (or other Policy Owner)
shall have the right to make an election, exercisable no later than one hundred
eighty (180) days following the marriage, to convert (subject to any proof of
insurability required by the Insurer) the Single Life Coverage to Survivorship
Coverage (with the Coverage Amount equal to two hundred percent (200%) of the
Single Life Coverage Amount). If a married Participant enrolls for Survivorship
Coverage and subsequently divorces, then, subject to the approval of the Plan
Administrator, the Participant (or other Policy Owner) shall have the right to
make an election, exercisable no later than one hundred eighty (180) days
following the finalization of the divorce, to convert (subject to any proof of
insurability required by the Insurer) the Survivorship Coverage to Single Life
Coverage (with the Coverage Amount equal to fifty percent (50%) of the
Survivorship Coverage Amount). Under no other circumstances shall a Participant
(or other Policy Owner) have any right to change an election as to type of
coverage after the coverage becomes effective. Any Insurer charges or tax
liability resulting from a conversion shall be borne by the Participant or other
Policy Owner.

    

    4.    AMOUNT
OF COVERAGE

    

          The
Coverage Amount for a Participant shall be the amount specified in the
Participant's Agreement.

    

    5.    PAYMENT
OF PREMIUMS; PAYMENT OF CERTAIN TAXES

    

          5.1   PARTICIPANT
PREMIUM PAYMENTS. A Participant shall pay the Participant Premium for each
Policy Year which is a Premium Payment Year for the Participant. The amount
shall be paid by the Participant to the Employer by payroll (or retirement
income) deductions of equal installments during the Policy Year, or in such
other manner as may be agreed to between the Plan Administrator and the
Participant. The Employer shall pay the Participant Premium amount to the
Insurer, and can do so as collected from the Participant or can advance payments
to the Insurer for a Policy Year at any time during the Policy Year or up to
thirty (30) days in advance of the Policy Year. If a Participant terminates
employment with the Employer, and the Employer has made such an advance payment
of the Participant Premium to the Insurer, the Employer may withhold any
uncollected portion of the advanced Participant Premium from any amount payable
to the Participant by the Employer to the extent permitted by law.
Notwithstanding the other provisions of this paragraph, no Participant Premium
shall be required with respect to Survivorship Coverage after the death of the
Participant, and no Participant Premium shall be required after termination of
the Participant's Agreement pursuant to Section 8.1.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          5.2   EMPLOYER
PREMIUM PAYMENTS. THE EMPLOYER SHALL PAY THE EMPLOYER.   Premium
for a Participant's Policy within thirty (30) days of the beginning of each
Policy Year which is a Premium Payment Year. However, no Employer Premium shall
be required: (1) after the Participant's Agreement terminates pursuant to
Section 8.1; or, (2) for a Policy Year if the Employer withdrawal and release of
Assignment under Section 8.3 would have occurred at the end of the prior Policy
year but for the requirement in Section 8.3 that the Policy not constitute a
Modified Endowment Contract following such withdrawal. Also, if the payment of
the Employer Premium for a Policy year would cause the Participant's Policy to
constitute a Modified Endowment Contract (as such term is defined in Section
7702A of the Internal Revenue Code), then the Employer Premium amount for such
Policy year shall be reduced to the largest such amount that can be paid without
causing the Policy to constitute a Modified Endowment Contract. The Employer
may, but shall not be required to, make additional premium payments with respect
to a Participant's Policy after the last Premium Payment Year.

    

    5.3         Additional
Employer Payments.

    

                a.    If,
during any year participation in the Plan results in the recognition of income
for tax purposes by the Participant as a result of BellSouth's election to treat
premium payments as loans for federal tax purposes and to impute interest
thereon to affected Participants, the Employer shall pay to the Participant an
amount determined by the Plan Administrator which is designed to approximate the
(1) sum of the total federal and state income taxes and additional payroll taxes
which would be payable by the Participant at the highest marginal rate provided
for under applicable federal income tax laws, and at the highest marginal rate
provided for under applicable state income tax laws for the state of the
Participant's tax domicile, on the additional income so recognized for the year,
plus (2) the total federal and state income taxes and additional payroll taxes
which would be payable by the Participant on the payment described in clause
(1). Any payment to be made under this subsection a. shall be made no later than
April 1 of the year following the year to which the payment
relates.

    

                b.    If,
with respect to Survivorship Coverage after the death of the Participant,
participation in the Plan results in the recognition of income for tax purposes
by the Participant's spouse or other Policy Owner as a result of BellSouth's
election to treat premium payments as loans for federal tax purposes and to
impute interest thereon to affected Participants, the Employer shall pay to the
Participant's spouse or other Policy Owner an amount determined by the Plan
Administrator which is designed to approximate the total federal and state
income taxes which would be payable by the Participant's spouse or other Policy
Owner at the highest marginal rate provided for under applicable federal income
tax laws, and the highest marginal rate provided for under applicable state
income tax laws for the state of the tax domicile of the Participant's spouse or
other Policy Owner, on the income so recognized. Any payment to be made under
this subsection b. shall be made no later than April 1 of the year following the
year to which the payment relates.

    

                c.    If
the termination of the Employer's interest in a Participant's Policy pursuant to
Section 8.3 of the Plan results in the recognition of income for tax purposes by
the Participant, the Employer shall pay to the Participant an amount determined
by the Plan Administrator which is designed to approximate the total federal and
state income taxes which would be payable by the Participant at the highest
marginal rate provided for under applicable federal income tax laws and at the
highest marginal rate provided for under applicable state income tax laws for
the state of the Participant's tax domicile, attributable to such termination.
Such payment shall be made immediately following the termination of the
Employer's interest in the Policy or, if later, at such time as a determination
is made that such a tax is payable.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                d.    For
purposes of this Section 5.3, a tax shall be deemed payable or income shall be
deemed recognized, if either (i) it is finally determined by the Internal
Revenue Service, or (ii) an opinion is given by the Employer's counsel, that the
tax is payable.

    

                e.    Any
amount to be paid to a Participant, a Participant's spouse, or other Policy
Owner under this Section, and the amounts payable, shall be conclusively
determined by the Plan Administrator, based on generally applicable tax rates
and not based upon the unique tax situation of each Participant, Participant's
spouse, or other Policy Owner.

    

    6.    ACCOUNTS

    

          With
respect to each Policy covered by an Agreement made under this Plan, the
Employer shall maintain bookkeeping entries reflecting the Employer Account and
Participant Account values.

    

    7.    POLICY
OWNERSHIP

    

          7.1   OWNERSHIP.
Except as otherwise provided in this Plan, the Policy Owner shall be the sole
and exclusive owner of a Participant's Policy and shall be entitled to exercise
all of the rights of ownership including, but not limited to, the right to
designate the beneficiary or beneficiaries to receive payment of the portion of
the death benefit under the Policy equal to the Coverage Amount, and the right
to assign any part or all of the Policy Owner's interest in the Policy (subject
to the Employer's rights, the terms and conditions of the Assignment specified
in Section 7.2 of the Plan, and the terms and conditions of this Plan) to any
person, entity or trust by the execution of a written instrument delivered to
the Employer.

    

          7.2   EMPLOYER'S
RIGHTS. In exchange for the Employer's agreement to pay the amounts described in
Sections 5.2 and 5.3 of this Plan, the Policy Owner shall execute an Assignment
to the Employer of the rights provided to the Employer under this Plan. The
Employer shall have the right to direct the Policy Owner in writing to take any
action required consistent with these rights, and upon the receipt of such
written direction from the Employer, the Policy Owner shall promptly take such
action as is necessary to comply therewith. The Employer agrees that it shall
not exercise any rights assigned to it in the Assignment in any way that might
impair or defeat the rights and interest of the Policy Owner under this Plan.
The Employer shall have the right to assign any part or all of its interest in
the Policy (subject to the Policy Owner's rights and the terms and conditions of
this Plan) to any person, entity or trust by the execution of a written
instrument delivered to the Policy Owner.

    

          7.3   DELIVERY
AND POSSESSION OF POLICY. Any Policy issued pursuant to an Agreement under the
Plan shall be delivered by the Insurer directly to the Employer, and the
Employer shall accept delivery of any such Policy on behalf of the Participant
or other Policy Owner and shall have the authority to execute any forms or
procedures required by the Insurer in order to complete the issue and delivery
of such Policy. Thereafter, the Employer shall keep possession of the Policy as
long as there is an Assignment in effect with respect to the Policy. The
Employer agrees to make the Policy available to the Policy Owner or to the
Insurer from time to time for the purposes of endorsing or filing any change of
beneficiary on the Policy or exercising any other rights as the owner of the
Policy, but the Policy shall promptly be returned to the Employer.

    

          7.4   POLICY
LOANS. Except as otherwise specifically provided for in Section 8 of this Plan,
neither the Employer nor the Policy Owner may borrow against the Policy cash
values.

    

          7.5   WITHDRAWALS
AND SURRENDER. Except as otherwise specifically provided for in Section 8 of
this Plan, neither the Employer nor the Policy Owner may withdraw Policy cash
values or surrender all or a portion of the Policy. Provided, however, that a
cancellation or exchange of a Replaced Policy in connection with the acquisition
of a Replacement Policy shall not be deemed a withdrawal from or surrender of
the Replaced Policy.

    

    8.
TERMINATION OF AGREEMENT

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          8.1   TERMINATION
EVENTS. Notwithstanding anything herein to the contrary, the Participant's
Agreement, and the Employer's obligation to pay premiums with respect to the
Participant's Policy acquired pursuant to the Agreement, shall terminate upon
the first to occur of any of the following events:

    

                a.    Termination
of employment of the Participant with the Employer prior to the Participant's
death for reasons other than Retirement or Disability; or upon termination of a
disabled Participant's Disability prior to the Participant's death for reasons
other than Retirement or return to active status.

    

                b.    Termination
of the Participant's Agreement by mutual agreement of the Participant and the
Employer.

    

                c.    A
unilateral election by the Participant to terminate the Participant's Agreement;
provided, however, that such an election may be made by a Participant only
within sixty (60) days following the end of the last Premium Payment Year for
the Participant's Policy.

    

                d.    The
written notice by the Employer to the Participant following a resolution by the
Board of Directors of BellSouth Corporation to terminate this Plan and all
Agreements made under the Plan.

    

                e.    As
to Single Life Coverage only, the death of the Participant.

    

                f.    As
to Survivorship Coverage only, the death of the last survivor of the Participant
and the Participant's spouse.

    

                g.    After
the release of Assignment pursuant to Section 8.3.

    

                h.    Upon
becoming an executive officer or director of BellSouth Corporation (as such
terms are used in Section 402 of the Sarbanes-Oxley Act of 2002).

    

          8.2
DISPOSITION OF POLICY

    

                a.    In
the event of a termination of a Participant's Agreement under Section 8.1a or b
of the Plan, the Policy Owner shall be entitled to acquire the Employer's rights
under the Participant's Policy by paying to the Employer an amount equal to the
Employer Account; alternatively, the Policy Owner can require the Employer to
withdraw a portion of the cash values from the Participant's Policy, partially
surrender the Policy, or borrow a portion of the cash values from the
Participant's Policy, with the amount to be specified by the Policy Owner, and
the Policy Owner's required payment to the Employer under this Section shall
thereby be reduced to an amount equal to the excess of the Employer Account over
the amount withdrawn, received upon partial surrender, or borrowed by the
Employer (for these purposes, the amount withdrawn, received upon partial
surrender, or borrowed shall refer to the amount actually received by the
Employer after the application of any charges, such as surrender charges,
applicable to the withdrawal, partial surrender, or borrowing). The Policy Owner
may exercise this right to acquire the Employer's interest in the Policy by so
notifying the Employer within ninety (90) days after an event of termination
under Section 8.1a or b of this Plan has occurred. Within thirty (30) days after
receipt of such notice, the Employer shall make any required withdrawal, partial
surrender, or policy loan and the Policy Owner shall pay the Employer the
applicable payment, if any. Upon receipt of payment from the Policy Owner, or
immediately following the withdrawal, partial surrender, or policy loan if no
payment is required, the Employer shall release the Assignment and the Policy
Owner shall have all rights, title, and interest in the Policy free of all
provisions and restrictions of the Assignment, the Agreement and this
Plan.

    

                b.    Notwithstanding
the provisions of Section 8.2a, if the Participant is Terminated for Cause by
the Employer, then the Policy Owner shall have no right to acquire the
Employer's interest in the Policy.

    

                c.    If
the Policy Owner fails to exercise his right to acquire the Employer's interest
in the Policy pursuant to Section 8.2a or is precluded from exercising such
right pursuant to Section 8.2b, the Policy Owner shall transfer title to the
Policy to the Employer, free of all provisions and restrictions of the
Assignment, the Participant's Agreement and this Plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                d.    In
the event of a termination of a Participant's Agreement pursuant to the
Participant's election under Section 8.1c, the Employer shall receive from the
Participant's Policy an amount equal to the Employer Account, with such amount
to be received through a withdrawal, partial surrender, policy loan, or some
combination thereof, as determined by the Employer. Immediately thereafter, the
Employer shall release the Assignment and the Policy Owner shall have all
rights, title and interest in the Policy free of all provisions and restrictions
of the Assignment, the Participant's Agreement, and this Plan.

    

                e.    Notwithstanding
the provisions of Section 2.8 to the contrary,in the event of a termination of a
Participant's Agreement under Section 8.1d, prior to the application of Section
8.2,the Employer Account shall be reduced to an amount equal to the excess, if
any, of the cash values of the Policy over the amount of cash value necessary in
order for such Policy to immediately qualify as a Permanent Policy after
withdrawal of such excess amount. The Employer shall receive from the Policy the
reduced Employer Account value and, with such amount to be received through a
withdrawal, partial surrender, policy loan, or some combination thereof, as
determined by the Employer, and shall, within thirty (30) days of the Plan
termination, release the Assignment and the Policy Owner shall have all rights,
title, and interest in the Policy free of all provisions and restrictions of the
Assignment, the Agreement and this Plan.

    

                f.    In
the event of a termination of a Participant's Agreement  under Section
8.1h of this Plan, the Employer Account shall be  reduced to an amount
equal to the excess, if any, of the cash  values of the Policy over
the amount of cash value necessary  in order for such Policy to
immediately qualify as a Permanent  Policy after withdrawal of such
excess amount. The Employer  shall receive from the Policy the reduced
Employer Account  value and, with such amount to be received through
a  withdrawal, partial surrender, policy loan, or
some  combination thereof, as determined by the Employer, and
shall  release the Assignment and the Policy Owner shall have all
rights, title and interest in the Policy free of all

     provisions
and restrictions of the Assignment, the Agreement  and this
Plan.

    

          8.3   RELEASE
OF ASSIGNMENT. At the end of each Policy Year for a Participant's Policy, the
Plan Administrator shall determine whether a withdrawal from the Policy by the
Employer of an amount equal to the Employer Account, and a release of the
Assignment, shall occur with respect to the Participant's Policy. Such
withdrawal and release shall be made within ninety (90) days after the end of
the first Policy Year as of the end of which: (1) the Participant's Policy would
qualify as a Permanent Policy following such withdrawal by the Employer; and,
(2) the Participant's Policy would not constitute a Modified Endowment Contract
(as such term is defined in Section 7702A of the Internal Revenue Code)
following such withdrawal. The Employer withdrawal shall be made though a
withdrawal, partial surrender, or policy loan, or some combination thereof, as
determined by the Employer. Immediately after receiving the proceeds of the
withdrawal, partial surrender, or policy loan, the Employer shall release the
Assignment and the Policy Owner shall have all rights, title and interest in the
Policy free of all provisions and restrictions of the Assignment, the
Participant's Agreement and this Plan.

    

           8.4   ALLOCATION
OF DEATH BENEFIT. In the event of a termination under Section 8.1e or 8.1f of
the Plan, the death benefit under the Participant's Policy shall be divided as
follows:

    

                a.    The
beneficiary or beneficiaries of the Policy Owner shall be entitled to receive an
amount equal to the Coverage Amount.

    

                b.    The
Employer shall be entitled to receive the balance of the death
benefit.

    

          8.5   EMPLOYER
UNDERTAKINGS. Upon the death of the Participant (or, in the case of Survivorship
Coverage, the death of the last survivor of the  Participant and the
Participant's spouse) while the Participant's  Agreement is in force,
the Employer agrees to take such action as may be necessary to obtain payment
from the Insurer of the death benefit to the beneficiaries, including, but not
limited to, providing the Insurer with an affidavit as to the amount to which
the Employer is entitled under the Agreement and this Plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.
GOVERNING LAWS AND NOTICES

    

          9.1   GOVERNING
LAW. This Plan shall be governed by and construed in accordance with the laws of
the State of Georgia.

    

          9.2   NOTICES.
All notices hereunder shall be in writing and sent by first class mail with
postage prepaid. Any notice to the Employer shall be ddressed to BellSouth
Corporation at its office at 1155 Peachtree Street, N.E., Atlanta, GA
30367-6000, ATTENTION: Human Resources-Director Executive Benefits. Any notice
to the Employee shall be addressed to the Employee at the address following such
party's signature on his Agreement. Any party may change the address for such
party herein set forth by giving notice of such change to the other parties
pursuant to this Section.

    

    10. NOT A
CONTRACT OF EMPLOYMENT

    

          This
Plan and any Agreement executed hereunder shall not be deemed to constitute a
contract of employment between an Employee and the Employer or a Participant and
the Employer, nor shall any provision restrict the right of the Employer to
discharge an Employee or Participant, or restrict the right of an Employee or
Participant to terminate employment.

    

    11.   AMENDMENT,
TERMINATION, ADMINISTRATION, CONSTRUCTION AND SUCCESSORS

    

          11.1  AMENDMENT.
The Board of Directors of BellSouth Corporation, or its delegate, shall have the
right in its sole discretion, to amend the Plan in whole or in part at any time
and from time to time. In addition, the Plan Administrator shall have the right,
in its sole discretion, to amend the Plan at any time and from time to time so
long as such amendment is not of a material nature. Notwithstanding the
foregoing, no modification or amendment shall be effective so as to decrease any
benefits of a Participant unless the Participant consents in writing to such
modification or amendment. Written notice of any material modification or
amendment shall be given promptly to each Participant.

    

          11.2  TERMINATION.
The Board of Directors of BellSouth Corporation may terminate the Plan without
the consent of the Participants or Employees. Provided, however, in the event of
a termination of the Plan by the Employer, the Participants will have those
rights specified in Section 8.2e of the Plan.

    

          11.3  INTERPRETATION.
As to the provisions of the Assignment, the Agreement and the Plan, the
provisions of the Assignment shall control. As between the Agreement and the
Plan, the provisions of the Agreement shall control.

    

          11.4  SUCCESSORS.
The terms and conditions of this Plan shall enure to the benefit of and bind the
Employer, the Participant, their successors, assignees, and representatives. If,
subsequent to the Effective Date of the Plan, substantially all of the stock or
assets of the Employer are acquired by another corporation or entity or if the
Employer is merged into, or consolidated with, another corporation or entity,
then the obligations created hereunder shall be obligations of the acquirer or
successor corporation or entity.

    

    12.   PLAN
ADMINISTRATION

    

          12.1  INDIVIDUAL
ADMINISTRATOR. If the Plan Administrator is an individual, he shall act and
record his actions in writing. Any matter concerning specifically such
individual's own benefit or rights hereunder shall be determined by the Board of
Directors of BellSouth Corporation or its delegate.

    

          12.2  ADMINISTRATIVE
COMMITTEE. If the Plan Administrator is a committee, or if any of the duties or
responsibilities of the Plan Administrator are vested in a committee, action of
the Plan Administrator may be taken with or without a meeting of committee
members; provided, action shall be taken only upon the vote or other affirmative
expression of a majority of the committee members qualified to vote with respect
to such action. If a member of the committee is a Participant, he shall not
participate in any decision which solely affects his own benefit under the Plan.
For purposes of administering the Plan, the Plan Administrator shall choose a
secretary who shall keep minutes of the committee's proceedings and all records
and documents pertaining to the administration of the Plan. The secretary may
execute any certificate or other written direction on behalf of the Plan
Administrator.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          12.3  RIGHTS
AND DUTIES OF THE PLAN ADMINISTRATOR. The Plan Administrator shall administer
the Plan and shall have all powers necessary to accomplish that purpose,
including (but not limited to) the following:

    

                a.    to
construe, interpret and administer the Plan;

    

                b.    to
make determinations required by the Plan, and to maintain records regarding
Participants' benefits hereunder;

    

                c.    to
compute and certify the amount and kinds of benefits payable to Participants,
and to determine the time and manner in which such benefits are to be
paid;

    

                d.    to
authorize all disbursements pursuant to the Plan;

    

                e.    to
maintain all the necessary records of the administration of the
Plan;

    

                f.    to
make and publish such rules and procedures for the regulation of the Plan as are
not inconsistent with the terms hereof;

    

                g.    to
designate to other individuals or entities from time to time the performance of
any of its duties or responsibilities hereunder; and

    

                h.    to
hire agents, accountants, actuaries, consultants and legal counsel to assist in
operating and administering the Plan.

    

                The
Plan Administrator shall have the exclusive right to construe and interpret the
Plan, to decide all questions of eligibility for benefits and to determine the
amount of benefits, and its decisions on such matters shall be final and
conclusive on all parties.

    

          12.4  BOND;
COMPENSATION. The Plan Administrator and (if applicable) its members shall serve
as such without bond and without compensation for services
hereunder.

    

    13.   CLAIMS
PROCEDURE

    

          13.1  NAMED
FIDUCIARY. The Plan Administrator is hereby designated as the named fiduciary
under this Plan.

    

          13.2  CLAIMS
PROCEDURES. Any controversy or claim arising out of or relating to this Plan
shall be filed with the Plan Administrator which shall make all determinations
concerning such claim. Any decision by the Plan Administrator denying such claim
shall be in writing and shall be delivered to all parties in interest in
accordance with the notice provisions of Section 9.2 hereof. Such decision shall
set forth the reasons for denial in plain language. Pertinent provisions of the
Plan shall be cited and, where appropriate, an explanation as to how the
Employee can perfect the claim will be provided. This notice of denial of
benefits will be provided within 90 days of the Plan Administrator's receipt of
the Employee's claim for benefits. If the Plan Administrator fails to notify the
Employee of its decision regarding the claim, the claim shall be considered
denied, and the Employee shall then be permitted to proceed with the appeal as
provided in this Section.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                An
Employee who has been completely or partially denied a benefit shall be entitled
to appeal this denial of his/her claim by filing a written statement of his/her
position with the Plan Administrator no later than sixty (60) days after receipt
of the written notification of such claim denial. The Plan Administrator shall
schedule an opportunity for a full and fair review of the issue within thirty
(30) days of receipt of the appeal. The decision on review shall set forth
specific reasons for the decision, and shall cite specific references to the
pertinent Plan provisions on which the decision is based.

    

                Following
the review of any additional information submitted by the Employee, either
through the hearing process or otherwise, the Plan Administrator shall render a
decision on the review of the denied

     claim
in the following manner:

    

                a.    The
Plan Administrator shall make its decision regarding the merits of the denied
claim within 60 days following receipt of the request for review (or within 120
days after such receipt, in a case where there are special circumstances
requiring extension of time for reviewing the appealed claim). The
Plan

     Administrator
shall deliver the decision to the claimant in writing. If an extension of time
for reviewing the appealed claim is required because of special circumstances,
written notice of the extension shall be furnished to the Employee prior to the
commencement of the extension. If the decision on review is not furnished within
the prescribed time, the claim shall be deemed denied on review.

    

                b.    The
decision on review shall set forth specific reasons for the decision, and shall
cite specific references to the pertinent Plan provisions on which the decision
is based.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

                                       EXHIBIT
"A"

    

                       BELLSOUTH
SPLIT-DOLLAR LIFE INSURANCE PLAN

    

                                        AGREEMENT

    

    This
Agreement is made effective as of January 1, 1998, by and between the Employer
and _______________________ (the "Participant").

    

    WHEREAS,
the Employer and the Participant executed an agreement (the "Prior Agreement")
under the [BellSouth Corporation Executive Life Insurance Plan] [BellSouth
Corporation Senior Manager Life Insurance Plan] (the "Prior Plan");
and

    

    WHEREAS,
the Prior Plan has been amended and restated as the BellSouth Split-Dollar Life
Insurance Plan (the "Plan"); and

    

    WHEREAS,
in exchange for coverage under the Plan as amended and restated, the Participant
consents and agrees to the terms of the Plan, as amended and
restated;

    

    NOW,
THEREFORE, in consideration of the promises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Employer and the Participant hereby mutually covenant and
agree as follows:

    

    1.    This
Agreement shall constitute an amendment and restatement of the Prior Agreement
and, as of the effective date of this Agreement, the Prior Plan and Prior
Agreement shall be terminated and replaced by the Plan and this
Agreement.

    

    2.    The
Policy subject to this Agreement is Policy number ______________, issued by
Pacific Life Insurance Company (the "Replacement Policy"), which replaces the
Replaced Policy. As of the effective date of this Agreement, no further benefits
will be provided to the Participant or Employer under the Replaced Policy, and
such Policy will be canceled. 3. The Replaced Policy Cash Value shall be
transferred directly to the Replacement Policy as of the effective date of this
Agreement.

    

    4.    The
Coverage Amount shall be $ __________ of [Single Life] [Survivorship]
Coverage.

    

    5.    The
Premium Payment Years shall be _______ consecutive Policy Years.

    

    6.    For
each Policy Year beginning after 1998, the total Policy premium for each year
which is a Premium Payment Year shall be $__________, and the Employer Premium
shall equal such total Policy premium reduced by the Participant Premium payable
by the Participant for such Policy Year.

    

    7.    The
Policy Owner for the Replacement Policy shall be the same as the Policy Owner
for the Replaced Policy.

    

    8.    The
Participant agrees to pay the Participant Premium contribution as specified in
the Plan, and consents to paying such amount to the Employer through regular
payroll (or retirement income) deductions.

    

    9.    The
Participant has read and understands the provisions of the Plan, and agrees that
all of the terms and conditions specified in the Plan are hereby incorporated by
reference herein and form a part of this Agreement.

    

    10.   Subject
to the terms of the Plan, this Agreement shall not be amended or modified
without the written consent of the Participant and the Employer.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.   This
Agreement shall be governed by the laws of the State of Georgia.

    

    ______________________________    ____________________________________

    DATE                                                             
 FOR THE EMPLOYER

    

    ______________________________    ____________________________________

    DATE                                                             
 SIGNATURE OF PARTICIPANT

    

                                                                    ____________________________________

    

                                                                    ____________________________________

    

                                                                    ____________________________________

                                                                   ADDRESS
OF PARTICIPANT

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

                                       EXHIBIT
"B"

    

                       BELLSOUTH
SPLIT-DOLLAR LIFE INSURANCE PLAN

    

                                       ASSIGNMENT

    

    This
Assignment is made by the undersigned Policy Owner effective January 1,
1998.

    

    DEFINITIONS:

    

    ASSIGNEE:                     BellSouth
Corporation

    

    PARTICIPANT:            _________________________________________________________

    

    POLICY
OWNER:          _________________________________________________________

    

    INSURED(S):                  _________________________________________________________

    

                                             _________________________________________________________

    

    INSURER:                                                      
Pacific Life Insurance Company

    

    POLICY:                                                         
Policy
#                    issued
by the Insurer.

    

    REPLACED
POLICY:                                   
Policy
#                    issued
by the Insurer.

    

    SPLIT-DOLLAR
LIFE                                   That
certain Agreement executed to be effective on

    INSURANCE
PLAN
AGREEMENT            January
1, 1998, between the Participant and the Assignee.

    (THE
"AGREEMENT"):

    

    COVERAGE
AMOUNT:                              That
portion of the death benefit coverage under the Policy

                                                                            
equal to $___________________.

    

    

    

    RECITALS:

    

    1.    The
benefits provided to the Policy Owner under the Policy replace those previously
provided under the Replaced Policy.

    

    2.    Under
the Agreement, the Assignee has agreed to assist the Policy Owner in the payment
of premiums on the Policy issued by the Insurer.

    

    3.    In
consideration of such premium payments by the Assignee, the undersigned Policy
Owner intends to grant the Assignee certain limited interests in the
Policy.

    

    THEREFORE,
for value received, it is agreed:

    

    1.    ASSIGNMENT.
The Policy Owner hereby assigns, transfers, and sets over to the Assignee, its
successors and assigns, the following specific rights in the Policy and subject
to the following terms and conditions:

    

          a.    the
sole right to make withdrawals or borrow against the cash value of the Policy,
as provided in Sections 8.2a, 8.2d, 8.2e and 8.3 of the Plan;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

          b.    the
right to receive from the Insurer upon the death of the Insured(s) the proceeds
of the Policy in excess of the Coverage Amount;

    

          c.    the
sole right to surrender all or a portion of the Policy and receive the surrender
value thereof, as provided in Sections 8.2a, 8.2d, 8.2e and 8.3 of the
Plan.

    

    2.    RETAINED
RIGHTS. Except as expressly provided in Section 1, the Policy Owner retains all
rights under the Policy including but not limited to:

    

          a.    the
right to designate and change the beneficiary; and

    

          b.    the
right to elect any optional mode of settlement permitted by the Policy or
Insurer, subject only to the Assignee's right in Section 1.(b).

    

    3.    AUTHORIZATION.
For purposes of Sections 1 and 2, the signature of either the Assignee or the
Policy Owner shall be sufficient. Both the Assignee and the Policy Owner
acknowledge that between themselves, they are bound by the limitations of this
Assignment and that the Insurer will recognize the signature of
either.

    

    4.    INSURER.
The Insurer is hereby authorized to recognize, and is fully protected in
recognizing the claims of the Assignee to rights hereunder, without
investigating the reasons for such action by the Assignee, or the validity or
the amount of such claims, nor giving notice to the Policy Owner of such claims
of rights or interest to exercise such rights. Insurer reserves the right to
require signatures of both the Assignee and the Policy Owner to exercise any or
all ownership rights, as is their normal procedure.

    

    5.    DEATH
PROCEEDS. The Insurer shall pay to the Assignee that portion of the death
benefit to which it is entitled. Payment by the Insurer of any or all of the
death proceeds to the Assignee in reliance upon a signed authorization by any
officer of the Assignee as to the share of death proceeds due it shall be a full
discharge of the Insurer for such share and shall be binding on all parties
claiming any interest in the Policy.

    

    6.    RELEASE
OF ASSIGNMENT. Upon payment to the Assignee of those amounts due  to
it under the terms of the Agreement, the Assignee shall execute
a  written release of this Assignment to the Insurer who may then
treat the  Policy Owner of the Policy as the sole Policy Owner for all
purposes.

    

    7.    ASSIGNMENT
CONTROLS. In the event of any conflict between the provisions  of this
Assignment and provisions of the Agreement with respect to the  Policy
or rights of collateral assignment therein, the provisions of
this  Assignment shall prevail.

    

    8.    CANCELLATION
OF REPLACED POLICY. The Policy Owner agrees that no further benefits will be
provided under the Replaced Policy, and that benefits provided under the Policy
are in lieu of the benefits previously provided under the Replaced
Policy.

    

    IN
TESTIMONY WHEREOF, the Policy Owner has executed this Assignment to be effective
January 1, 1998.

    

                                                    ________________________________

                                                    SIGNATURE
OF POLICY OWNER

    

                                                    ________________________________

                                                    DATEex10lll.htm

    

      Exhibit
10-lll

      

      

      PACIFIC
TELESIS GROUP

      EXECUTIVE
SUPPLEMENTAL CASH BALANCE PLAN

      

      (Amended
as of July 1, 1996)

      

      

      SECTION
1                            INTRODUCTION
AND PURPOSE

      

      Section
1.1                             Introduction

      

      The
Pacific Telesis Group Executive Supplemental Pension Plan (the "Executive Plan")
was adopted as of July 1, 1995 to merge the Pacific Telesis Group Executive
Non-Salaried Pension Plan (a "Predecessor Plan") and the Pacific Telesis Group
Supplemental Executive Retirement Plan (a "Predecessor Plan") into a single plan
and to include the minimum pension and related welfare and surviving spouse
benefits previously provided by the Pacific Telesis Group Senior Management Long
Term Disability and Survivor Protection Plan (a "Predecessor Plan"). The
benefits provided by the Executive Plan are substantially similar to the
benefits provided by the Predecessor Plans. The Board of Directors of the
Company adopted resolutions on March 22, 1996, authorizing the incorporation of
a cash balance formula and renaming the Executive Plan the Pacific Telesis Group
Executive Supplemental Cash Balance Plan. The terms of the Executive Plan, as
amended, apply to each Participant whose Termination of Employment occurs on or
after March 22, 1996. Capitalized terms are defined in Section 12.

      

      Section
1.2                             Purpose

      

      The
purpose of the Executive Plan is to assist Participating Companies in attracting
and retaining highly competent senior managers by providing certain unfunded
pension benefits to eligible Executives. The benefits provided by the Executive
Plan, when aggregated with the benefits provided by the Salaried Pension Plan,
are intended to provide the Executive with approximately the same benefit that
the Executive would have been entitled to receive under the Salaried Pension
Plan if the Salaried Pension Plan (i) recognized total base pay (whether or not
deferred) and short term incentive awards as compensation for purposes of
benefit calculation and (ii) were not subject to any legal limitations on the
amount of benefits that could be paid under such plan. In addition, the
Executive Plan provides minimum pensions and welfare benefits to certain
eligible Executives.

      

      SECTION
2                            ELIGIBILITY

      

      Section
2.1                             Participation

      

      An
Executive or a former Executive who is a Participant in the Executive Plan on
March 22, 1996 shall be an Existing Participant in the Executive Plan as
amended. Any other Employee who is designated as eligible to participate in the
Executive Plan after June 30, 1996 shall become a Participant immediately upon
being so designated. Participation shall cease at the Participant's Termination
of Employment unless the Participant is then eligible for benefits under the
Executive Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
2.2                             Mandatory
Retirement

      

      Each
Participant subject to a Mandatory Retirement Age shall cease to be eligible for
continued employment by a Participating Company no later than the last day of
the month in which such Participant attains the Mandatory Retirement
Age.

      

      Section
2.3                             Eligibility
For Executive Pension

      

      
        	
                2.3
      (a)

              	
                Requirements.
      A Participant shall be eligible for an Executive
  Pension:

              

      

      

      
        	
                 

              	
                (1)

              	
                at
      Termination of Employment, if the Participant is eligible for a pension
      under the Salaried Pension Plan without regard to any minimum benefits or
      early retirement window benefits which change the usual eligibility
      requirements for pensions under the Salaried Pension
  Plan;

              

      

      

      
        	
                 

              	
                (2)

              	
                at
      Termination of Employment, if the Participant is eligible for an Officer
      Minimum Benefit under Section 3.4;
or

              

      

      

      
        	
                 

              	
                (3)

              	
                before
      Termination of Employment, but only if a Participant who is not subject to
      the Mandatory Retirement Age requirements becomes eligible for an
      in-service pension under the Salaried Pension Plan. In such a case, the
      Participant's Executive Pension shall be redetermined upon Termination of
      Employment, under procedures applicable to the Participant's Qualified
      Pension Benefit as provided under the Salaried Pension
    Plan.

              

      

      

      
        	
                2.3
      (b)

              	
                Prior
      Participants. All Participants who were retired or terminated former
      Executives as of the initial Effective Date of the Executive Plan shall
      continue to be entitled to receive the benefits they were receiving or
      entitled to receive under the terms of the Predecessor Plans. Each other
      Participant who retired or terminated employment on or after the initial
      Effective Date, but before March 22, 1996, shall continue to be entitled
      to receive the benefits he or she was receiving or entitled to receive
      under the terms of the Executive Plan as in effect at such Participant's
      Termination of Employment.

              

      

      

      Section
2.4                              CFEP
Executive

      

      A
Participant who is a Select Officer will become a CFEP Executive as of the date
of such Participant's Termination of Employment, provided:

      

      
        	
                 

              	
                (a)

              	
                the
      Participant executes an acknowledgment within the applicable election
      period defined in the acknowledgment, as that may be amended, confirming
      the Participant's intent to defer Termination of Employment to the
      Intended Termination Month specified in the
  acknowledgment;

              

      

       

      
        	
                 

              	
                (b)

              	
                the
      Participant terminates employment in the Intended Termination Month or
      dies while an Employee prior to the Intended Termination
      Month;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (c)

              	
                the
      cashout value of the Total Benefit determined by using the CFEP Factor
      under the Basic Benefit formula in Section 3.3, the Officer Minimum
      Benefit formula under Section 3.4, or the Officer Supplemental Benefit
      formula under Section 3.6, whichever is the greatest, is greater than the
      balance of the Participant's Executive Account at the Participant's
      Termination of Employment; and

              

      

      

      
        	
                 

              	
                (d)

              	
                the
      Participant (or surviving spouse, in the event of the
      Participant's  death) elects to receive a cashout payment of the
      accelerated transition benefit payable under the Salaried Pension
      Plan.

              

      

      

      SECTION
3                            EXECUTIVE
PENSION

      

      Section
3.1                             Amount

      

      The
Executive Pension payable to a Participant at the Participant's Annuity Start
Date shall be equal to the Participant's Total Benefit determined under Section
3.2 below, reduced by the Participant's Qualified Pension Benefit. The Executive
Pension payable to the surviving spouse of a Participant who dies before his or
her Annuity Start Date shall be equal to the surviving spouse's Total Benefit
determined under Section 6 below, reduced by the surviving spouse's Qualified
Pension Benefit. If a Participant who dies before his or her Annuity Start Date
does not leave a surviving spouse, the Executive Pension attributable to such
Participant shall be equal to the excess, if any, of the Participant's Executive
Account over his or her Account under the Salaried Pension Plan, determined at
the distribution date, and shall be payable to the Participant's
estate.

      

      Section
3.2                             Applicable
Formula for Total Benefit

      

      The Total
Benefit of a Participant who is an Executive at Termination of Employment shall
be computed as follows:

      

      3.2(a)                            Participant
on March 22, 1996.

      

      
        	
                 

              	
                (1)

              	
                The
      Total Benefit of an Existing Participant payable at the Participant's
      Annuity Start Date shall be determined under whichever of the following
      formulas would provide the greatest benefit when expressed as a monthly
      pension for the Participant's life commencing at the Participant's
      Termination of Employment:

              

      

      

      
        	
                 

              	
                (A)

              	
                the
      Basic Benefit under Section 3.3, if eligible
  therefor;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
              	
                 (B)

              	
                the
      Officer Minimum Benefit under Section 3.4, if eligible
      therefor;

              

      

      

      (C)           the
Cash Balance Benefit under Section 3.5; or

      

      (D)           the
Officer Supplemental Benefit under Section 3.6.

      

      
        	
                 

              	
                (2)

              	
                If
      an Existing Participant other than a Participant described in paragraph
      (1) above is also a CFEP Executive, the Total Benefit payable at the
      Participant's Annuity Start Date shall be determined under whichever of
      the following formulas would provide the greatest cashout value at the
      Participant's Termination of Employment determined by using the CFEP
      Factor:

              

      

      

      (A)          the
Basic Benefit under Section 3.3, if eligible therefor;

      

      
        	
                 

              	
                 (B)

              	
                the
      Officer Minimum Benefit under Section 3.4, if eligible therefor;
      or

              

      

      

      (C)          the
Officer Supplemental Benefit under Section 3.6.

      

      
        	
                 

              	
                (3)

              	
                The
      Total Benefit determined under Section 3.3 or 3.4 shall be reduced for
      early payment as provided in the applicable section. A Participant's
      Qualified Pension Benefit shall be reduced for early payment to the extent
      provided under the Salaried Pension Plan. A Participant's Executive
      Pension shall be paid in the form and at the time provided in Section 4
      and may be subject to special increases as described in Section 3.7
      below.

              

      

      

      
        	
                3.2(b)

              	
                Participation
      Commences after Effective Date. The Total Benefit payable at the Annuity
      Start Date of an Employee who becomes a Participant after June 30, 1996
      shall be the Cash Balance Benefit determined under Section 3.5 at the
      Participant's Annuity Start Date.

              

      

      

      
        	
                3.2(c)

              	
                Participant
      Not An Executive At Retirement. If a Participant is not an Executive at
      his or her Termination of Employment, but was an Executive during some
      previous period, the Participant's Total Benefit shall be determined as
      set forth in this Section 3.2, except that, to the extent applicable, (i)
      the Years of Credited Service under the Basic Benefit shall be determined
      as though the Participant's Termination of Employment occurred on the date
      that he or she ceased serving as an Executive, (ii) the Participant shall
      not be eligible for the Officer Minimum Benefit or the Officer
      Supplemental Benefit, and (iii) the Executive Pension shall not be subject
      to special increases under Section 3.7 below. The Participant's actual
      service and age shall be used under Section 3.3(c) to determine the
      appropriate early payment discount for the Regular Basic
      Benefit.

              

      

      

      Section
3.3                     Basic
Benefit

      

      The Basic
Benefit is the sum of the Participant's Regular Basic Benefit and his or her
Imputed Basic Benefit.

      

      
        	
                3.3(a)

              	
                Eligibility
      for Regular Basic Benefit. An Employee who is or was an Executive shall be
      eligible for a Regular Basic Benefit if the Participant is eligible for a
      Qualified Pension Benefit.

              

      

      

      
        	
                3.3(b)

              	
                Amount
      of Regular Basic Benefit. A Participant's Regular Basic Benefit shall be a
      monthly pension equal to:

              

      

      

      
        	
                 

              	
                (1)

              	
                two
      percent (2%) of the sum of the Participant's Final Average Monthly Base
      Pay determined over the 60-month period ending June 30, 1996 or, if
      earlier, the Participant's Termination of Employment during the period
      beginning March 22, 1996 and ending June 30, 1996, and his or her Final
      Average Monthly STIP Awards determined over the 60-month period ending
      June 30, 1996 or, if earlier, the Participant's Termination of Employment
      during the period beginning March 22, 1996 and ending June 30, 1996;
      multiplied by

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (2)

              	
                the
      Participant's Years of Credited Service as of June 30, 1996 or, if
      earlier, as of the Participant's Termination of Employment during the
      period beginning March 22, 1996 and ending June 30, 1996. A Participant's
      Regular Basic Benefit shall be adjusted for early payment under Section
      3.3(c) below.

              

      

      

      
        	
                3.3(c)

              	
                Adjustments
      to Regular Basic Benefit. A Participant's Regular Basic Benefit shall be
      adjusted as follows based on the Participant's service at his or her
      Termination of Employment.

              

      

      

      
        	
                 

              	
                (1)

              	
                Early
      Payment. A discount equal to 1/12th of 2% will apply for each full or
      partial month down to age 50 prior to the month in which the Participant
      is at least 55 with a Term of Employment of not less than 20 years or, if
      earlier, the date on which the Employee is at least 65 with a Term of
      Employment of not less than five years. If the Participant is less than 50
      at his or her Annuity Start Date, an additional discount equal to 1/12th
      of 4% will apply for each full or partial month down to age 45 prior to
      the month in which the Participant is 50. If the Participant is less than
      45 at his or her Annuity Start Date, a further additional discount equal
      to 1/12th of 8% will apply to each full or partial month down the
      Participant's age at his or her Annuity Start Date prior to the month in
      which the Participant is 45.

              

      

      

      
        	
                 

              	
                (2)

              	
                Exceptions.
      No adjustment shall be made if the Participant has at least 10 Years
      of  Officer Service and if, at the time of his or her
      Termination of Employment, the Participant is at least 55 years of age and
      is an Officer. In addition, no adjustment shall be made if the
      Participant's Term of Employment is at least 30 years; the Participant is
      at least 55 with a Term of Employment of not less than 20 years; or the
      Participant is at least 65 and vested under the Salaried Pension
      Plan.

              

      

      

      
        	
                 

              	
                (3)

              	
                Minimum
      and Window Benefits. A Participant's Regular Basic Benefit shall not be
      increased for any minimum or early retirement window benefit that may be
      available under the Salaried Pension Plan unless the Executive Plan is
      amended accordingly. In no event shall a Participant's Regular Basic
      Benefit at his or her Annuity Start Date be less than the Regular Basic
      Benefit accrued under the Executive Plan at any earlier time, determined
      as though the Participant had terminated employment at the earlier time
      and as though the Executive Plan had always been in
    existence.

              

      

      

      
        	
                3.3(d)

              	
                Eligibility
      for Imputed Basic Benefit. A Participant who was a PacTel Employee before
      the Separation Date shall be eligible for an Imputed Basic Benefit if he
      or she received allocations of basic, variable or transition contributions
      under the PacTel Retirement Plan while deferring compensation under the
      Pacific Telesis Group Executive Deferral
Plan.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                3.3(e)

              	
                Amount
      of Imputed Basic Benefit. A Participant's Imputed Basic Benefit shall be a
      monthly pension whose Present Value at the Participant's Annuity Start
      Date is equal to:

              

      

      

      
        	
                 

              	
                (1)

              	
                the
      sum of the amounts actually deferred under the Pacific Telesis Group
      Executive Deferral Plan attributable to base salary and Short Term
      Incentive Plan awards for each year between January 1, 1987, and the
      Separation Date multiplied by the sum of the basic, variable and
      transition contribution rates in effect under the PacTel Retirement Plan
      for each of those years; plus

              

      

      

      
        	
                 

              	
                (2)

              	
                Interest
      on such contributions to the Participant's Annuity Start
    Date.

              

      

      

      Section
3.4                      Officer
Minimum Benefit

      

      The
Officer Minimum Benefit provides a monthly pension to certain Executives who
serve as Officers.

      

      
        	
                3.4(a)

              	
                Eligibility
      for Officer Minimum Benefit. A Participant is eligible for an Officer
      Minimum Benefit if:

              

      

      

      
        	
                 

              	
                (1)

              	
                the
      Participant became an Officer on or before January 24,
    1992;

              

      

      

      
        	
                 

              	
                (2)

              	
                the
      Participant completes at least 10 Years of Officer Service at his or her
      Termination of Employment;

              

      

      

      
        	
                 

              	
                (3)

              	
                at
      the time of his or her Termination of Employment, the Participant is at
      least 55 years of age and is an Officer;
and

              

      

      

      
        	
                 

              	
                (4)

              	
                in
      the case of a Participant whose Years of Officer Service were interrupted
      for any period of longer than six (6) months, the Participant thereafter
      completes at least 5 Years of Officer
Service.

              

      

      

      
        	
                3.4(b)

              	
                Amount
      of Officer Minimum Benefit. An eligible Participant's Officer Minimum
      Benefit shall be a monthly pension equal
to:

              

      

      

      
        	
                 

              	
                (1)

              	
                45%
      of the sum of the Officer's Final Average Monthly Base Pay and Final
      Average Monthly STIP Award determined over the 60-month period ending June
      30, 1996 or, if earlier, the Participant's Termination of Employment
      during the period beginning March 22, 1996, but ending June 30, 1996;
      reduced by

              

      

      

      
        	
                 

              	
                (2)

              	
                the
      sum of the Officer's PacTel Account Benefit, if any, and PacTel Pension
      Benefit, if any.

              

      

       

      The
percentage in paragraph (1) above shall be increased by 1% (up to a maximum of
50% for 15 or more Years of Officer Service) for each whole Year of Officer
Service that an Officer has completed as of June 30, 1996 in excess of 10 Years
of Officer Service. The percentage in paragraph (1) shall not be increased
beyond 45% for any Years of Officer Service completed after June 30,
1996.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
3.5                      Cash
Balance Benefit

      

      The Cash
Balance Benefit of a Participant shall be a monthly pension payable for the
Participant's life determined by dividing the Participant's Executive Account
described in subsection (a) below at the applicable determination date by the
product of the Standard Factor based on the Participant's age and 12. For
purposes of determining which benefit formula provides the largest Total Benefit
under Section 3.2(a)(1), the applicable determination date shall be the
Participant's Termination of Employment. If a Participant's Total Benefit at the
Annuity Start Date is determined under the cash balance benefit formula, the
applicable determination date for computing the amount payable shall be the
Participant's Annuity Start Date.

      

      
        	
                3.5(a)

              	
                Executive
      Account. A hypothetical Executive Account shall be established for each
      Employee who is a Participant on or after March 22, 1996. As of any
      determination date, the value of a Participant's Executive Account shall
      be equal to the sum of:

              

      

      

      
        	
                 

              	
                (1)

              	
                the
      Pay-based credits allocated to the Participant's Executive Account under
      subsection (b) below:

              

      

      

      
        	
                 

              	
                (2)

              	
                to
      the extent the Participant is eligible, the opening account balance
      credited under subsection (c)
below;

              

      

      

      
        	
                 

              	
                (3)

              	
                any
      benefit in the nature of a cash balance benefit that is transferred to the
      Executive Plan from the Mid-Career Plan or the Excess Plan that is
      credited under subsection (e) on behalf of an Employee who becomes a
      Participant; and

              

      

      

      (4)            
   Cash Balance Interest credited under subsection
(d).

      

      
        	
                3.5(b)

              	
                Pay-based
      Credits. As of the end of each month after June 1996, a Participant's
      Executive Account shall be credited with an amount equal to the sum of the
      Participant's Basic Rate and Supplementary Rate times the Participant's
      Pay for such month to the extent such Pay represents compensation for
      services performed as an Executive.

              

      

      

      
        	
                3.5(c)

              	
                Opening
      Balance. An opening balance will be established as of the Effective Date
      for each Existing Participant. The amount of the opening balance will be
      the sum of (w) times (z) and (x) times (y) times (z)
  where:

              

      

      

      
        	
                 

              	
                (w)

              	
                is
      the percentage factor from the Accumulation Table in Appendix A to the
      Salaried Pension Plan based on the Participant's service as of June 30,
      1996;

              

      

      

      (x)             
  is the Participant's Supplementary Rate;

      

      
        	
                 

              	
                (y)

              	
                is
      the percentage factor from the Accumulation Table in Appendix B based on
      the Participant's service as of June 30, 1996, which shall include any
      service that could be bridged (as that term is described under the
      Salaried Pension Plan) as of June 30, 1996;
and

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (z)           
    is the Participant's Cash Balance Conversion
Pay.

      

      
        	
                3.5(d)

              	
                Interest
      Credits. As of the end of each month after June 1996, a Participant's
      Executive Account shall be credited with Cash Balance Interest on the
      balance in such account at the beginning of such
  month.

              

      

      

      3.5(e)           Transferred
Benefits.

      

      
        	
                 

              	
                (1)

              	
                Mid-Career
      Plan Participant. An Employee who is appointed to an Officer position
      while a participant in the Mid-Career Plan shall cease participation in
      such plan as of the effective date of the appointment and immediately
      become a Participant in the Executive Plan. The Executive Account
      established for such a Participant shall be credited with the sum of the
      Participant's Mid-Career Account under the Mid-Career Plan and the
      Participant's Total Account under the Excess Plan as of the date the
      Employee becomes covered under the Executive Plan. Benefits payable at the
      Participant's Termination of Employment shall be paid under the Executive
      Plan and the Salaried Pension Plan, and the Participant shall have no
      further right to benefits under the Mid-Career Plan or the Excess
      Plan.

              

      

      

      
        	
                 

              	
                (2)

              	
                Other
      Promoted Employees. If an Employee who is not a participant in the
      Mid-Career Plan is designated as an eligible Executive, such Employee
      shall become a Participant in the Executive Plan as of the effective date
      of the designation. The Executive Account established for such an Employee
      shall be credited with the balance of the Employee's Total Account under
      the Excess Plan as of the date the Employee becomes covered under the
      Executive Plan. Benefits payable at the Participant's Termination of
      Employment shall be paid under the Executive Plan and the Salaried Pension
      Plan, and the Participant shall have no further right to benefits under
      the Excess Plan.

              

      

      

      3.5(f)           Service
Proration.

      

      
        	
                 

              	
                (1)

              	
                A
      Participant's Executive Account shall be reduced under paragraph (2) below
      at the Participant's Termination of Employment prior to determining the
      applicable formula and the benefit payable if the
    Participant:

              

      

      

      (A)         is
an Existing Participant, or

      

      
        	
                 

              	
                          (B)

              	
                was
      a participant in the Mid-Career Plan on March 22, 1996 or after March 22,
      1996, but before July 1, 1996, and subsequently becomes a Participant in
      the Executive Plan, and the Participant's Termination of Employment occurs
      before the Participant attains age 55 and completes not less than 10 Years
      of Officer Service or has a Term of Employment of not less than 20 years
      or, if earlier, occurs before the Participant attains age 65 and has a
      Term of Employment of not less than five
years.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (2)

              	
                The
      Executive Account of a Participant described in paragraph (1) above, to
      the extent attributable to the application of the Participant's
      Supplementary Rate, shall be reduced by multiplying such portion by a
      fraction determined under (x) or (y) below, whichever produces the lower
      reduction, where:

              

      

      

      
        	
                 

              	
                (x)

              	
                is
      a fraction, the numerator of which is the Participant's actual Years of
      Officer Service at Termination of Employment, and the denominator of which
      is the number of Years of Officer Service the Participant would have
      completed if the Participant had remained in service until attaining age
      55 and completing 10 Years of Officer Service;
  and

              

      

      

      
        	
                 

              	
                (y)

              	
                is
      a fraction, the numerator of which is the Participant's actual years and
      months in his or her Term of Employment at Termination of Employment, and
      the denominator of which is the number of years and months that the
      Participant would have completed if the Participant had remained in
      service until attaining age 55 and having a Term of Employment of not less
      than 20 years.

              

      

      

      Section
3.6                      Officer
Supplemental Benefit

      

      The
Officer Supplemental Benefit provides a monthly pension to certain Executives
who serve as Officers.

      

      
        	
                3.6(a)

              	
                Eligibility.
      A Participant is eligible for a Officer Supplemental Benefit if the
      Participant:

              

      

      

      (1)           
    is an Existing Participant;

      

      
        	
                 

              	
                (2)

              	
                completes
      not less than 10 Years of Officer Service or has a Term of Employment of
      not less than 20 years; and

              

      

      

      
        	
                 

              	
                (3)

              	
                at
      the time of his or her Termination of Employment, the Participant is not
      less than 55 years of age and is an
Officer.

              

      

      

      
        	
                3.6(b)

              	
                Amount.
      An eligible Participant's Officer Supplemental Benefit shall be a fixed
      dollar amount that restores a certain percentage of the monthly pension,
      determined as of July 1, 1996, that would have been payable under the
      Salaried Pension Plan and the Executive Plan as in effect at March 21,
      1996 as of the date the Participant attained age 55 and completed not less
      than 10 Years of Officer Service or a Term of Employment of not less than
      20 years.

              

      

      

      Section
3.7                      Special
Increases

      

      Unless
the Committee determines otherwise, an Executive Pension payable as a monthly
pension shall be increased by the same percentage and pursuant to the same terms
and conditions as set forth in the Salaried Pension Plan for ad hoc increases to
monthly pensions for retired Participants or their joint
annuitants.

      

      SECTION
4.                            DISTRIBUTION

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
4.1                     Pensions

      

      
        	
                4.1(a)

              	
                Time
      of Payment. A Participant's Executive Pension shall be paid or commence as
      of the Participant's Annuity Start Date, subject to the Committee's
      discretion to determine another time or times of
  payment.

              

      

      

      
        	
                4.1(b)

              	
                Form
      of Payment. Subject to the Committee's discretion to determine another
      form of payment, a Participant may elect, prior to his or her Termination
      of Employment, one of the payment forms listed in paragraphs (1) through
      (3) for his or her Executive
Pension.

              

      

      

      
        	
                 

              	
                (1)

              	
                A
      single life annuity providing monthly payments over the Participant's life
      in the amount determined under Section 3, including any adjustment for
      early payment.

              

      

      

      
        	
                 

              	
                (2)

              	
                A
      joint and survivor annuity providing monthly payments equal to 90% of the
      amount payable under paragraph (1) above over the Participant's life, with
      a survivor benefit to the surviving spouse equal to 50% of the monthly
      pension payable during the Participant's lifetime. If the spouse dies
      during the Participant's lifetime, the Participant's monthly pension shall
      be increased to 100% of the single life annuity payable under paragraph
      (1) above as of the month following the month in which the spouse
      dies.

              

      

      

      
        	
                 

              	
                (3)

              	
                120
      equal monthly payments. The amount of the monthly payment shall be
      determined by dividing the cashout value determined under subsection (d)
      below (using the Standard Factor or the CFEP Factor, as applicable) by a
      conversion factor supplied by the actuaries of the Executive Plan. If the
      Participant dies before receiving all payments, the monthly payments shall
      continue to be paid to the Participant's surviving spouse unless the
      surviving spouse makes a written election to receive the present value of
      the remaining payments in a lump sum payment and the Committee consents.
      If no spouse survives, the present value of the remaining payments
      (determined by using the Applicable Interest Rate as of the effective date
      of the payment) shall be paid to the Participant's estate as soon as
      practicable after the Participant's
death.

              

      

      

      
        	
                4.1(c)

              	
                Committee's
      Final Determination. If the Participant does not elect one of the
      alternative forms of payment listed in subsection (b) above before his or
      her Termination of Employment, or if the Committee does not consent to the
      form of payment elected by the Participant, then the Committee shall
      determine, in its sole discretion, the form of payment for the
      Participant's Executive Pension and the appropriate adjustment to its
      amount.

              

      

      

      
        	
                4.1(d)

              	
                Lump
      Sum Determination. If the Committee, in its sole discretion, determines
      that a Participant's Executive Pension shall be paid in a lump sum, the
      amount of such benefit shall be calculated as
  follows:

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (1)

              	
                If
      the Participant's Total Benefit is determined under the Cash Balance
      Benefit formula, the Executive Pension payable as a lump sum shall equal
      the excess of the Participant's Executive Account over the Participant's
      Account under the Salaried Pension
Plan.

              

      

      

      
        	
                 

              	
                (2)

              	
                If
      the Participant's Total Benefit is determined under the Basic Benefit
      formula, the Officer Minimum Benefit formula or the Officer Supplemental
      Benefit formula, and the Participant is not a CFEP Executive, the
      Executive Pension payable as a lump sum shall equal the Present Value of
      the Participant's Total Benefit under the applicable formula determined by
      using the Standard Factor for the Participant's age at the Annuity Start
      Date less the Participant's Qualified Pension Benefit. If the Participant
      is a CFEP Executive, the Executive Pension payable as a lump sum shall
      equal the Present Value of the Participant's Total Benefit under the
      applicable formula determined by using the CFEP Factor at the Annuity
      Start Date less the Participant's Qualified Pension
    Benefit.

              

      

      

      
        	
                4.1(e)

              	
                Limitation.
      Notwithstanding subsection (b) above, if a Participant receives his or her
      Qualified Pension Benefit as a lump sum, and the lump sum value of his or
      her benefits under all nonqualified pension plans sponsored by the
      Company, including the Executive Plan, is less than $50,000 at the
      Participant's Annuity Start Date, the Participant's Executive Pension
      shall be paid to the Participant in a lump sum at the same time as the
      Participant's Qualified Pension
Benefit.

              

      

      

      Section
4.2                      Notification
Of and Application For Benefits

      

      The Plan
Administrator may notify the Participant of the amount of his or her Executive
Pension and may require the Participant to apply for benefits under the
Executive Plan.

      

      Section
4.3                    
 Deferred Payment Date

      

      If a
Participant's Qualified Pension Benefit is payable as an accelerated transition
benefit, and the Participant fails to consent to an immediate distribution as of
his or her Annuity Start Date, the commencement of his or her Executive Pension
also shall be delayed, and any unpaid monthly benefits under this Executive Plan
from the Annuity Start Date to the date that the Executive Pension actually
starts shall be paid to the Participant in a single sum without interest when
payment commences.

      

      Section
4.4                     Death
Following Annuity Start Date

      

      If a
Participant dies before the Executive Pension commences, but after his or her
Annuity Start Date (so that a surviving spouse benefit is not payable under
Section 6), the Participant's Executive Pension shall be paid in the form
previously elected, or deemed elected under Section 4.1(b) as soon as
practicable after the Participant's death, unless the Committee determines
another time and form of payment. If the Participant had elected a life annuity,
unpaid monthly benefits from the Participant's Annuity Start Date to the date of
death shall be payable to the Participant's estate or to such other person or
persons as are entitled to the Participant's property under applicable law. If
the Participant had elected a joint and survivor annuity, unpaid monthly
benefits from the Participant's Annuity Start Date to the date of death shall be
payable to the Participant's joint annuitant and the survivor portion of such
annuity shall be payable to the joint annuitant as of the date of the
Participant's death.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SECTION
5                    WELFARE
BENEFITS FOR CERTAIN PARTICIPANTS

      

      Section
5.1                      Eligibility

      

      A
Participant is eligible for benefits under this section after his or her
Termination of Employment if he or she is not eligible for retiree welfare
benefit coverage under the Company's group welfare benefit plans but
is:

      

      
        	
                 

              	
                (a)

              	
                at
      least 62 years of age at Termination of Employment and has a Term of
      Employment of at least 5 years; or

              

      

      

      
        	
                 

              	
                (b)

              	
                at
      least 55 years of age and an Officer at Termination of Employment and has
      at least 10 Years of Officer
Service.

              

      

      

      Section
5.2                      Benefits

      

      An
eligible Participant under Section 5.1 above shall be entitled to life insurance
benefits which are equivalent to the benefits which would have been provided to
the Participant under the Company's group life insurance plans if he or she had
been eligible for a service pension under the Salaried Pension Plan as in effect
at March 21, 1996. In addition, an eligible Participant under Section 5.1(b)
above shall be entitled to medical and dental benefits which are equivalent to
the benefits which would have been provided to the Participant under the
Company's group medical and dental benefit plans if he or she had been eligible
for a service pension under the Salaried Pension Plan as in effect at March 21,
1996.

      

      SECTION
6                    DISTRIBUTION
AT PARTICIPANT'S DEATH

      

      Section
6.1                     Dies
After Annuity Start Date

      

      If the
Participant cashed out his or her Executive Pension before death, no additional
benefits shall be payable under the Executive Plan at the Participant's death
except as provided in Section 7, to the extent applicable. If the Participant
was receiving his or her Executive Pension in the form of a monthly pension
under a single life annuity at his or her death, all payment shall cease as of
the end of the month in which the Participant's death occurs. If the Participant
was receiving his or her Executive Pension as a joint and survivor annuity, or
under the 120 monthly payment option at death, payment of the Executive Pension
shall continue as provided in Section 4.1(b)(2).

      

      Section
6.2                     Dies
Before Annuity Start Date

      

      
        	
                6.2(a)

              	
                Existing
      Participants. If an Existing Participant dies before his or her Annuity
      Start Date, the Total Benefit of the surviving spouse shall be determined
      as provided in this subsection (a).

              

      

      

      
        	
                 

              	
                (1)

              	
                Amount.
      If an Existing Participant was not a Select Officer described in
      subparagraph (2) below at his or her death, the Total Benefit at the
      surviving spouse's Annuity Start Date shall be the Regular Surviving
      Spouse Benefit under Section 6.3(a) below if such benefit, determined at
      the Participant's death, is greater than the Surviving Spouse Cash Balance
      Benefit under Section 6.4(a) when expressed as a monthly pension payable
      for the life of the surviving spouse, commencing at the Participant's
      death. The Total Benefit at the surviving spouse's Annuity Start Date
      shall be the Surviving Spouse Cash Balance Benefit under Section 6.4(a) if
      such benefit, determined at the Participant's death, is greater than the
      Regular Surviving Spouse Benefit under Section 6.3(a) when expressed as a
      monthly pension payable for the life of the surviving spouse, commencing
      at the Participant's death.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (2)

              	
                Select
      Officer Benefit. If an Existing Participant was a Select Officer at his or
      her death, had executed the required acknowledgment described in Section
      2.4 within the applicable period, but died prior to the Intended
      Termination Month, the Participant shall be deemed a CFEP Executive. In
      that case, the Total Benefit of the surviving spouse of such a Participant
      at the surviving spouse's Annuity Start Date shall be the cashout value of
      Regular Surviving Spouse Benefit under Section 6.3(a), determined at the
      Participant's death by using the CFEP Factor, if such amount is greater
      than the balance of the Existing Participant's Executive Account at the
      Participant's death. Otherwise, the Total Benefit at such spouse's Annuity
      Start Date shall be the Surviving Spouse Cash Balance Benefit under
      Section 6.4.

              

      

      

      
        	
                6.2(b)

              	
                New
      Hires. If a Participant, other than an Existing Participant, dies before
      his or her Annuity Start Date, the Total Benefit payable at the surviving
      spouse's Annuity Start Date shall be the Surviving Spouse Cash Balance
      Benefit under Section 6.4(a), provided such spouse is eligible for a
      Qualified Plan Benefit.

              

      

      

      
        	
                6.2(c)

              	
                No
      Surviving Spouse. If no spouse survives a Participant, an amount equal to
      the excess of the Participant's Executive Account over his or her Account
      under the Salaried Pension Plan, determined as of the date of
      distribution, shall be paid to the Participant's estate as soon as
      practicable after the Participant's
death.

              

      

      

      Section
6.3                     Regular
Surviving Spouse Benefit

      

      
        	
                6.3(a)

              	
                Amount.
      The Regular Surviving Spouse Benefit determined at the applicable date
      shall be equal to the survivor portion of the joint and survivor annuity
      that would have been payable under the Basic Benefit formula, the Officer
      Minimum Benefit formula, or the Officer Supplemental Benefit formula, as
      applicable, if the Participant had started receiving such benefit in the
      form of a joint and survivor annuity on the day of his or her death and
      then immediately died. For this purpose, the joint and survivor annuity
      shall be deemed to be 90% of the monthly pension payable over the
      Participant's life under Section 3.3, 3.4 or 3.6, as applicable. A
      Participant's pension determined under Section 3.3 (Basic Benefit) shall
      be adjusted for early payment to the extent applicable under Section
      3.3(c)(1) except if, at the time of his or her death, the Participant was
      an Employee and (i) had attained age 65 and was vested in his or her
      Qualified Pension Benefit or (ii) had a Term of Employment of not less
      than 15 years. For purposes of determining the applicable formula for
      computing the surviving spouse benefit of an Existing Participant at the
      spouse's Annuity Start Date, the applicable determination date shall be
      the day of the Participant's death. For purposes of determining the amount
      of the surviving spouse benefit payable at the spouse's Annuity Start
      Date, the applicable determination date shall be the surviving spouse's
      Annuity Start Date.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                6.3(b)

              	
                Special
      Increases. Unless the Committee determines otherwise, a surviving spouse
      benefit payable as a monthly pension under this Section 6.3 shall be
      increased by the same percentage and pursuant to the same terms and
      conditions set forth in the Salaried Pension Plan for ad hoc benefit
      increases to surviving spouses, provided the surviving spouse would be
      entitled to an automatic survivor annuity under the terms of the Salaried
      Pension Plan as in effect at March 21,
1996.

              

      

      

      Section
6.4                     Surviving
Spouse Cash Balance Benefit

      

      
        	
                6.4(a)

              	
                Amount.
      The Surviving Spouse Cash Balance Benefit determined at the applicable
      date shall be a monthly pension for the life of the surviving spouse of a
      Participant, determined by dividing the Participant's Executive Account by
      the product of the Standard Factor for the surviving spouse's age at the
      Participant's death and 12. For purposes of determining the applicable
      formula for computing the surviving spouse benefit of a Participant at the
      spouse's Annuity Start Date, the applicable determination date shall be
      the day of the Participant's death. For purposes of determining the
      surviving spouse benefit payable at the spouse's Annuity Start Date, the
      applicable determination date is the surviving spouse's Annuity Start
      Date.

              

      

      

      
        	
                6.4(b)

              	
                Special
      Increases. Unless the Committee determines otherwise, the surviving spouse
      benefit payable as a monthly pension under this Section 6.4 shall be
      increased by the same percentage and pursuant to the same terms and
      conditions set forth in the Salaried Pension Plan for ad hoc benefit
      increases to the monthly pensions of surviving spouses, provided the
      surviving spouse would be entitled to an automatic survivor annuity under
      the terms of the Salaried Pension Plan as in effect at March 21,
      1996.

              

      

      

      Section
6.5                      Form
and Time of Payment

      

      
        	
                6.5(a)

              	
                General  Rule.
      The Executive Pension payable to a surviving spouse shall be equal to the
      Regular Surviving Spouse Benefit or the Surviving Spouse Cash Balance
      Benefit, as applicable, reduced by the surviving spouse's Qualified
      Pension Benefit. Subject to the Committee's discretion to determine
      another time and form of payment, such Executive Pension shall be payable
      as a monthly pension for the life of the surviving spouse, commencing as
      of the surviving spouse's Annuity Start
Date.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                6.5(b)

              	
                Exception.
      Notwithstanding the general rule in subsection (a) above, a surviving
      spouse of a Participant who dies prior to his or her Annuity Start Date
      may elect, within the election period that applies to payment of his or
      her benefits under the Salaried Pension Plan, to receive his or her
      Executive Pension in 120 equal monthly payments, subject to the
      Committee's discretion to determine another form. The amount of the
      monthly payment under the 120 payment option shall be determined by
      dividing the cashout value of the Executive Pension, determined by using
      the Standard Factor or CFEP Factor, as applicable (with respect to an
      Executive Pension based on a Regular Surviving Spouse Benefit) or the
      excess of the Participant's Executive Account over the Participant's
      Account under the Salaried Pension Plan (with respect to an Executive
      Pension based on a Surviving Spouse Cash Balance Benefit) by a conversion
      factor, which shall be provided by the actuaries of the Executive Plan. If
      the surviving spouse dies before receiving all payments, the present value
      of the remaining payments will be paid to the spouse's estate in a lump
      sum.

              

      

      

      
        	
                6.5(c)

              	
                Limitation.
      Notwithstanding subsection (a) above, if a surviving spouse receives his
      or her Qualified Pension Benefit as a lump sum, and the lump sum value of
      his or her benefits under all nonqualified pension plans sponsored by the
      Company, including the Executive Plan, is less than $50,000 at the
      surviving spouse's Annuity Start Date, the surviving spouse's Executive
      Pension shall be paid to the surviving spouse in a lump sum at the same
      time as the surviving spouse's Qualified Pension
  Benefit.

              

      

      

      
        	
                6.5(d)

              	
                Lump
      Sum Determination. If the Committee, in its sole discretion, determines
      that a surviving spouse's Executive Pension shall be paid in a lump sum,
      the amount of such benefit shall be calculated as
  follows:

              

      

      

      
        	
                 

              	
                (1)

              	
                If
      the Executive Pension payable at the surviving spouse's Annuity Start Date
      is based on the Surviving Spouse Cash Balance Benefit, the lump sum amount
      shall equal the excess of the Participant's Executive Account over the
      Participant's Account under the Salaried Pension Plan at such
      date.

              

      

      

      
        	
                 

              	
                (2)

              	
                If
      the Executive Pension payable at the surviving spouse's Annuity Start Date
      is based on the Regular Surviving Spouse Benefit, and the Participant is
      not deemed a CFEP Executive at death, the lump sum amount shall equal the
      Present Value of such benefit, reduced by the Present Value of the
      surviving spouse's Qualified Plan Benefit, both determined by using the
      Standard Factor for the surviving spouse's age at the Annuity Start Date.
      If the Participant is deemed a CFEP Executive at his or her death, the
      lump sum amount shall equal the Present Value of such benefit, reduced by
      the Present Value of the surviving spouse's Qualified Plan Benefit, both
      determined by using the CFEP Factor for the surviving spouse's age at the
      Annuity Start Date.

              

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SECTION
7                     DEATH
BENEFITS

      

      Section
7.1                      Eligibility
and Waiver

      

      The
beneficiary of a Participant who dies as an Executive, or who dies after
Termination of Employment if the Participant was an Executive at the time of his
or her Termination of Employment, shall be eligible for a death benefit under
the Executive Plan if the beneficiary is eligible for death benefits under the
Salaried Pension Plan. If a Participant is deemed to have waived a sickness or
pensioner death benefit under the Salaried Pension Plan, then the associated
death benefit under the Executive Plan also shall be deemed to have been
waived.

      

      Section
7.2                      Benefits

      

      Except as
otherwise provided in this section (or elsewhere in the Executive Plan), the
death benefits provided by the Executive Plan shall be determined and
administered in the same manner and subject to the same terms and conditions as
the accident, sickness and pensioner death benefits provided under the Salaried
Pension Plan.

      

      
        	
                7.2(a)

              	
                Determination
      of Amount. The amount of a sickness, accident or pensioner death benefit
      provided by the Executive Plan shall be equal to one times the
      Participant's Final Annual Pay, reduced by the sickness, accident or
      pensioner death benefit payable with respect to the Participant under the
      Salaried Pension Plan, as applicable. In the case of a pensioner death
      benefit payable under the Executive Plan, the amount based on the
      Participant's Final Annual Pay shall be subject to the same reductions, if
      any, which are applied to the Participant's pensioner death benefit under
      the Salaried Pension Plan.

              

      

      

      
        	
                7.2(b)

              	
                Form
      and Time of Payment. The Committee shall determine, in its sole
      discretion, the time and form of payment for any death benefit paid under
      the Executive Plan.

              

      

      

      
        	
                7.2(c)

              	
                Beneficiary.
      The Participant's beneficiary for purposes of this Section 7 shall be the
      beneficiary under the Salaried Pension
Plan.

              

      

      

      SECTION
8                     RIGHTS
TO BENEFITS

      

      Section
8.1                      Entitlement
to Benefits.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      A
Participant's Executive Pension shall be based on the terms of the Executive
Plan in effect at the Participant's Termination of Employment. Entitlement to a
surviving spouse benefit under Section 6 or a death benefit under Section 7
shall accrue on the date such benefit becomes payable. Except as otherwise
provided in the Executive Plan, entitlement to other benefits described in the
Executive Plan shall accrue on the date of the Participant's Termination of
Employment.

      

      
        	
                8.1(a)

              	
                Assignment
      or Alienation. Except to the extent consistent with the requirements of
      section 206(d)(3) of ERISA relating to qualified domestic relations
      orders, no assignment or alienation of pensions or other benefits under
      the Executive Plan will be permitted or
  recognized.

              

      

      

      
        	
                8.1(b)

              	
                Payments
      to Others. Benefits payable to an individual unable to execute a proper
      receipt may be paid to another person in accordance with the standards and
      procedures established under the Salaried Pension
  Plan.

              

      

      

      Section
8.2                      Effect
of Reemployment

      

      If a
former Executive who is receiving an Executive Pension again becomes an Employee
of any Participating Company, the monthly pension otherwise payable under the
Executive  Plan during the period of reemployment shall be suspended
and forfeited. At the Executive's subsequent Termination of Employment, his or
her Executive Pension shall be recalculated, as determined by the Committee, in
the manner prescribed under the Salaried Pension Plan and the Excess Plan for
redetermining pensions following reemployment and for adjusting such pensions
for prior Executive Plan payments.

      

      Section
8.3                      Forfeiture
for Misconduct

      

      Notwithstanding
any other provision of the Executive Plan, all or a portion of the benefits that
a Participant or his or her surviving spouse, joint annuitant or beneficiaries
would otherwise be eligible to receive under the Executive Plan may be
forfeited, in the sole discretion of the Company's Board of Directors, if the
Participant is discharged by a Participating Company for cause or a
determination is made by the board of directors of a Participating Company that
the Participant engaged in misconduct in connection with his or her employment
by that Participating Company.

      

      Section
8.4                      Waiver
in Absence of Claims Release

      

      In case
of an accident resulting in the death of a Participant which entitles his or her
beneficiaries to death benefits under the Executive Plan, the beneficiaries
shall, prior to the payment of any death benefits, sign a release releasing the
Company or other Participating Company, as applicable, from all claims and
demands which the Participant and the beneficiaries had or may have against it
on account of the accident, other than claims for benefits under the Executive
Plan or under any other plan maintained by the Company or a Participating
Company. If any persons other than the beneficiaries under the Executive Plan
might legally assert claims against a Participating Company on account of the
death of the Participant, no death benefit shall be due or payable until there
have also been delivered to the Committee good and sufficient releases of all
claims, arising from or growing out of the death of the Participant, which such
other persons might legally assert against the Participating Company. The
Committee, in its discretion, may require that the releases described above also
release any other company connected with the accident, including any company
participating in the Executive Plan or the Salaried Pension Plan, and any
company with which arrangements have been made, directly or indirectly, for the
interchange of benefit obligations as described in the Salaried Pension Plan.
The determination of whether or not a death is due to accident for purposes of
this Section 8.4 shall be made by the Committee in the manner provided in the
Salaried Pension Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
8.5                      Waiver
by Damage Claims or Suits

      

      Should a
claim be presented or suit brought against the Company or any Participating
Company, other than under the Executive Plan, for damages on account of the
death of an individual who was at any time a Participant in the Executive Plan,
no death benefits shall be payable under the Executive Plan except as provided
in Section 8.6 below or unless the Committee, in its sole discretion and upon
such terms as it may prescribe, waives this provision after withdrawal of the
claim or dismissal of the suit.

      

      

      Section
8.6                      Offset
for Judgment or Settlement

      

      In case
any judgment is recovered against any Participating Company or any settlement is
made of any claim or suit on account of the death of an individual who was at
any time a Participant in the Executive Plan, and the amount paid to the
beneficiaries who would have received death benefits under the Executive Plan is
less than what would otherwise have been payable under the Executive Plan, the
difference between the two amounts may, in the sole discretion of the Committee,
be distributed to the beneficiaries.

      

      Section
8.7                      Offset
for Payments Under Law

      

      If any
benefit becomes payable to a Participant or his or her surviving spouse, joint
annuitant or beneficiaries under any law now in force or hereafter enacted, and
if the Committee determines that it is of the same general character as a
benefit provided by the Executive Plan, then only the excess, if any, of the
amount prescribed in the Executive Plan above the amount of the payment
prescribed by law shall be payable under the Executive Plan. In those cases
where the existence of an excess is not ascertainable by mere comparison because
of such factors as differences in the beneficiaries or the time or methods of
payment, the Committee shall have sole discretion to determine whether or not
any excess exists and to make any adjustments necessary to carry out in a fair
and equitable manner the spirit of this provision. Notwithstanding the
foregoing, no benefit payable under the Executive Plan shall be reduced by
reason of any governmental benefit or pension payable on account of military
service, or by reason of any benefit provisions of the Social Security Act other
than those related to disability.

      

      SECTION
9                     SOURCE
OF BENEFIT PAYMENTS

      

      Section
9.1                      Participating
Company Liability

      

      Where a
Participant's Term of Employment includes service with more than one
Participating Company, or with one or more Participating Companies and one or
more non-participating corporations or partnerships, the last Participating
Company to employ the Participant as an Executive prior to his or her
Termination of Employment with entitlement to a benefit hereunder shall be
primarily liable for the full benefit payable under the Executive Plan. However,
if for any reason the primarily liable Participating Company fails to make
timely payment of an amount due to or on behalf of a Participant, the Company
shall be secondarily liable for the obligation to pay the amount due. A
Participating Company's withdrawal from participation shall not affect that
company's liability hereunder. In addition, the liability of a Participating
Company shall not be affected by any action or inaction (on the part of the
Participant, his or her surviving spouse, joint annuitant or beneficiaries, or
any company) with respect to amounts owed, including but not limited to the
granting of extensions of time or other indulgences, the failure to make timely
demand, the failure to make timely payment or the failure to give notices of any
type, other than as prescribed in Section 10.4.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
9.2                     All
Benefits Unfunded

      

      All
benefits payable under the Executive Plan shall be paid from the Company's or
Participating Company's operating expenses, through the purchase of insurance
from an insurance company, or through a trust established by the Company and/or
the other Participating Companies for this purpose, as the Company may
determine.

      

      Section
9.3                      No
Right to Company Assets

      

      Neither
an Executive nor any other person shall acquire by reason of the Executive Plan
any right in or title to any assets, funds or property of the Company or any
other Participating Company, including, without limiting the generality of the
foregoing, any specific funds, trust accounts or assets which any Participating
Company, in its sole discretion, may earmark or set aside in anticipation of a
liability under the Executive Plan. A Participating Company's obligation to pay
any amounts under the Executive Plan shall be unfunded as to the Executive whose
rights shall be those of a general unsecured creditor.

      

      SECTION
10                  ADMINISTRATION

      

      Section
10.1                   Plan
Sponsor

      

      The
Company shall be the sponsor of the Executive Plan as that term is defined in
ERISA.

      

      Section
10.2                   Plan
Administrator

      

      The
Executive Vice President-Human Resources of the Company shall be the Plan
Administrator as that term is defined in ERISA. The Plan Administrator shall
have the specific powers granted to him elsewhere in the Executive Plan and
shall also have such other powers as may be necessary in order to administer the
Executive Plan in his sole discretion, except for those powers granted or
provided to be granted to others by the Executive Plan. The Plan Administrator
shall determine conclusively for all parties all questions arising in the
administration of the Executive Plan and, insofar as permitted by applicable
law, any decision of the Plan Administrator shall not be subject to further
review. The Plan Administrator, acting in his or her absolute discretion, shall
have the duty and authority to interpret and construe the provisions of the
Executive Plan and to decide all questions which may arise or be raised under
the Executive Plan by any Executive, Participant, former Participant,
beneficiary or any other person including, but not limited to all questions
relating to eligibility to participate in the Executive Plan, the amount of
service accrued by the Participant and the amount of the Executive Pension to
which a Participant or his or her beneficiary may be entitled.

      

      Section
10.3                  
 Procedure To Approve and Deny Claims

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
Committee shall have sole discretion to determine the rights of Participants (or
their surviving spouses, joint annuitants or other beneficiaries) to benefits
under the Executive Plan, and to authorize disbursements under the Executive
Plan. In all questions relating to age and service for eligibility for any
benefit under the Executive Plan, or relating to service and rates of pay for
determining benefits payable under the Executive Plan, the decisions of the
Committee, based upon the Executive Plan and upon the records of the
Participating Companies employing the individual, shall be final insofar as
permitted by applicable law. The Committee may adopt such rules of procedure as
it may find appropriate. A claim for benefits under the Executive Plan shall be
deemed denied unless the decision of the Committee is sent within 90 days of its
receipt of the claim (or within 180 days, if the Committee extends the time by
notifying the claimant in writing of the special circumstances requiring an
extension and the date by which the decision is expected). If a claim is denied
in whole or part by the Committee, it shall send a written decision stating (i)
the specific reasons for the denial, making specific reference to pertinent
provisions of the Executive Plan; (ii) what additional information, if any,
would help perfect the claim for benefits; and (iii) what steps the claimant
must take to submit the claim for review.

      

      Section
10.4                    Review
Procedure

      

      The Board
of Directors of the Company shall serve as the final review committee, under the
Executive Plan and ERISA, for the review of all claims appealed by Participants
(or their surviving spouses, joint annuitants or other beneficiaries) whose
initial claims for benefits have been denied, in whole or in part, by the
Committee. Within 60 days after the date of a denial by the Committee, the
claimant may file a written request for the Board of Directors of the Company to
review the denial. Such request for review must be made in a timely manner for
the purpose of seeking any further review of a decision or determining any
entitlement to a benefit under the Executive Plan. In such a case, the Board of
Directors of the Company shall conduct a full and fair review of the Committee's
decision and notify the claimant in writing of the review decision, specifying
the reasons for the decision and the provisions of the Executive Plan on which
it is based. A claim shall be deemed denied unless the decision on appeal is
sent within 60 days (or within 120 days, if the Board of Directors of the
Company extends the time to respond by notifying the claimant in writing of the
special circumstances requiring an extension of time).

      

      Section
10.5                   Further
ERISA Rights

      

      Any
Participant (or surviving spouse, joint annuitant or other beneficiary) whose
claim for benefits has been denied upon review shall have such further rights as
are provided in section 503 of ERISA and the regulations thereunder. The
Company, the Board of Directors of the Company, the Committee and the Executive
Vice President-Human Resources of the Company shall retain such rights,
authority and discretion as are provided or not expressly limited by section 503
of ERISA and the regulations thereunder.

      

      Section
10.6                   Named
Fiduciaries

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
Company, each Participating Company, the Board of Directors of the Company, the
Committee and the Executive Vice President-Human Resources of the Company are
each a named fiduciary to the Executive Plan as that term is used in ERISA with
respect to the particular duties and responsibilities allocated to each of them.
Any person or group of persons may serve in more than one fiduciary capacity
with respect to the Executive Plan.

      

      Section
10.7                    Allocation
of Responsibilities

      

      The
Company, the Committee, the Executive Vice President-Human Resources of the
Company and each Participating Company may designate in writing other persons to
carry out their respective responsibilities under the Executive Plan and may
employ persons to advise them with regard to any such
responsibilities.

      

      Section
10.8                   Administrative
Expenses

      

      The
expenses of administering the Executive Plan shall be apportioned among the
Participating Companies, as determined by the Plan Administrator.

      

      SECTION
11                  AMENDMENT
AND TERMINATION

      

      Section
11.1                    Plan
Amendment

      

      The
Company may from time to time make any changes in the Executive Plan which it
deems appropriate, with or without notice to Participants, by appropriate action
of its Board of Directors. In addition, the Plan Administrator, with the
approval of the Executive Vice President—Human Resources and General Counsel of
the Company, shall be authorized to make minor or administrative changes to the
Executive Plan, as well as changes dictated by the requirements of federal or
state statutes applicable to the Company or authorized or made desirable by such
statutes. However, in recognition of the reliance placed upon the Executive Plan
and its contractual nature in inducing the change in position caused by
retirement, any such change or modification shall not result in the cessation or
reduction of benefits to retired individuals or their surviving spouses or joint
annuitants, nor shall such modification affect the rights of any individual to
any benefit to which he or she may have previously become entitled under the
Executive Plan.

      

      Section
11.2                    Plan
Termination

      

      At any
time, for any reason, and with or without notice to Participants, the Company
retains the right to terminate the Executive Plan in whole or in part by
appropriate action of its Board of Directors, and each Participating Company
retains the right to withdraw from the Executive Plan. Neither termination of
the Executive Plan nor withdrawal by a Participating Company shall result the
cessation or reduction of benefits to any retired Participant (or his or her
surviving spouse, joint annuitant or other beneficiary), or affect the rights of
any individual to any benefit to which he or she may have previously become
entitled under the Executive Plan. A Participating Company's withdrawal from
participation shall not affect that company's liability to provide benefits to a
Participant as described in Section 9.1 of the Executive Plan.

      

      SECTION
12                   DEFINITIONS

      

      "Annuity Start Date" means the date
as of which the Participant's or surviving spouse's Qualified Pension Benefit
commences or is paid.

      

      "Applicable Interest Rate" has the
same meaning as under the Salaried Pension Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Basic Benefit" means the Total
Benefit determined under the Basic Benefit formula, as set forth in Section
3.3.

      

      "Basic Rate" means the uniform
percentage (5%) of a Participant's Pay or Cash Balance Conversion Pay (as
applicable) that is used in conjunction with a Participant's Supplementary Rate
to determine the ongoing monthly Pay-based allocations credited to a
Participant's Executive Account and to construct the opening balance of a
Participant's Executive Account.

      

      "Cash Balance Benefit" means the
Total Benefit determined under the cash balance benefit formula, as set forth in
Section 3.5.

      

      "Cash Balance Conversion Pay" means a
Participant's base pay for the 12 months ending June 30, 1996 (or, if earlier,
the Participant's Termination of Employment after March 22, 1996, but before
July 1, 1996), whether or not deferred, plus the Participant's Final Average
Monthly STIP Awards for the 12 months ending June 30, 1996 (or, if earlier, the
Participant's Termination of Employment after March 22, 1996, but before July 1,
1996), whether or not deferred. Any changes in the rate of base pay during the
applicable computation period shall be taken into account.

      

      "Cash Balance Interest" means the
monthly rate of interest which, when compounded, equals the effective annual
rate of interest applicable to 30-year Constant Maturity Treasury securities for
the second calendar month preceding the calendar quarter containing the relevant
month, provided that in no event shall the annualized rate exceed 9% in any year
through the end of the year 2000.

      

      "Cashout Factor" has the same meaning
as under the Salaried Pension Plan.

      

      "CFEP Executive" means a Select
Officer who meets the requirements of Section 2.4.

      

      "CFEP Factor" means the Cashout
Factor that would have applied if the CFEP Executive had terminated employment
as of December 30, 1996, but based on such Participant's age at his or her
Annuity Start Date.

      

      "Committee" means the Compensation
and Personnel Committee of the Board of Directors of the Company.

      

      "Company" means Pacific Telesis
Group, a Nevada corporation, or its successors.

      

      "Effective Date" means, with respect
to the initial adoption of the Executive Plan,  July 1, 1995. The
Effective Date of this amendment and restatement is July 1, 1996.

      

      "Employee" has the same meaning as
under the Salaried Pension Plan.

      

      "Employer Group" has the same meaning
as under the Salaried Pension Plan.

      

      "ERISA" means the Employee Retirement
Income Security Act of 1974, as it may be amended from time to
time.

      

      "Excess Plan" means the Pacific
Telesis Group Excess Benefit Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Executive" means an Officer of any
Participating Company or any other Employee who is designated by the Committee
to be within a Participating Company's executive group for purposes of the
Executive Plan.

      

      "Executive Account" means the
unfunded bookkeeping account established for each Participant to record the
opening account balance, Pay-based allocations and Cash Balance Interest credits
determined under Section 3.5. An account shall be maintained solely for record
keeping purposes and

      without
segregation of any assets.

      

      "Executive Pension" means the pension
determined under Section 3.1.

      

      "Executive Plan" means the Pacific
Telesis Group Executive Supplemental Cash Balance Plan.

      

      "Existing Participant" means an
Executive who was a Participant on March 22, 1996, or who became a Participant
after March 22 1996, but on or before June 30, 1996.

      

      "Final Annual Pay," which is used in
determining the death benefit in Section 7.2(a)(1), means the Participant's
annual rate of base pay (whether or not deferred) on the last day he or she was
on the active payroll of a Participating Company plus the Participant's annual
Standard Award as determined under the Short Term Incentive Plan on the last day
he or she was on the active payroll.

      

      "Final Average Monthly Base Pay,"
which is used in determining the Regular Basic Benefit in Section 3.3(b)(1) and
the Officer Minimum Benefit in Section 3.4(b)(1), means the average of the
Participant's monthly rates of base pay, whether or not deferred, for the
applicable period.

      

      "Final Average Monthly STIP Award,"
as used in Section 3.3(b)(1) and Section 3.4(b)(1) means the average of the
Participant's Monthly STIP Awards for the applicable period.

      

      "Intended Termination Month" means
the month specified by the Committee following the close of the merger between
the Company and SBC Communications Inc., as it may be amended by agreement of
the parties.

      

      "Interest" means hypothetical
earnings on an account balance, which shall be calculated in the manner
determined by the Committee in its sole discretion. The Committee may, but is
not required to, calculate Interest based on the interest rate used to calculate
the Present Value of a Participant's Executive Pension as of a Participant's
Annuity Start Date.

      

      "Joint Venture Employer" has the
meaning set forth in the Salaried Pension Plan.

      

      "Mandatory Retirement Age" means age
65 for those Participants who meet the requirements of section 12(c)(1) of the
Age Discrimination in Employment Act of 1967, as amended ("ADEA"); or as
permitted under the ADEA, for those Participants for whom age is a bona fide
occupational qualification within the meaning of section 4(f)(1) of the ADEA.
There shall be no Mandatory Retirement Age for other Participants, if
any.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Mid-Career Account" means the
hypothetical unfunded bookkeeping account established for a participant in the
Mid-Career Plan.

      

      "Mid-Career Plan" means the
hypothetical unfunded bookkeeping account established for a participant in the
Mid-Career Plan.

      

      "Mid-Career Plan" means the Pacific
Telesis Group Mid-Career Cash Balance Plan.

      

      "Monthly STIP Award" means, for any
month in a calendar year, 1/12 of the Participant's annual Standard Award
(whether or not deferred) as set forth under the Short Term Incentive Plan for
that calendar year. In the case of Participants who were Employees on the
Separation Date and who had participated in the PacTel Corporation Short Term
Incentive Plan, the Monthly STIP Award for any month before April 1, 1994,
during such participation means 1/12 of the Participant's annual standard award
under the PacTel Corporation Short Term Incentive Plan, as adjusted for changes
in position rate.

      

      "Officer" means an individual elected
or appointed to, and serving in, one or more of the following
positions:

      

      
        	
                 

              	
                (1)

              	
                a
      position with the Company described in the bylaws of the Company as that
      of an officer, other than an assistant officer
  position;

              

      

      

      
        	
                 

              	
                (2)

              	
                a
      position with Pacific Bell described in the bylaws of Pacific Bell as that
      of an officer, other than an assistant officer position;
  or

              

      

      

      
        	
                 

              	
                (3)

              	
                a
      position with any Participating Company for which there is in effect a
      specific designation by the Committee that the position shall be
      considered to be that of an Officer for purposes of the benefit and
      retirement plans.

              

      

      

      An
Officer also means a named Employee of any Participating Company for which there
is in effect a specific designation by the Committee that the named Employee
shall be included in the definition of "Officer" for purposes of the benefit and
retirement plans.

      

      "Officer Minimum Benefit" means the
Total Benefit determined under the Officer Minimum Benefit formula, as set forth
in Section 3.3.

      

      "Officer Supplemental Benefit" means
the Total Benefit determined under the Officer Supplemental Benefit formula, as
set forth in Section 3.6.

      

      "PacTel Account Benefit," which is
used to reduce the Officer Minimum Benefit in Section 3.4(b),means a monthly
pension, commencing as of the Participant's Annuity Start Date, whose Present
Value equals the sum of the following amounts:

      

      
        	
                 

              	
                (1)

              	
                the
      value of the Basic Account under the PacTel Retirement Plan on the
      Separation Date, plus Interest to the Annuity Start
  Date;

              

      

      

      
        	
                 

              	
                (2)

              	
                the
      value of the Variable Account under the PacTel Retirement Plan on the
      Separation Date, plus Interest to the Annuity Start
  Date;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 

              	
                (3)

              	
                the
      value of the Transition Account under the PacTel Retirement Plan on the
      Separation Date, plus Interest to the Annuity Start
  Date;

              

      

      

      
        	
                 

              	
                (4)

              	
                the
      amount of all withdrawals and distributions made from the Basic, Variable
      and Transition Accounts under the PacTel Retirement Plan prior to the
      Separation Date, plus Interest from the date of withdrawal to the Annuity
      Start Date; and

              

      

      

      
        	
                 

              	
                (5)

              	
                the
      value of the Participant's accounts attributable to Company contributions
      under the PacTel Corporation Excess Benefit Plan and the PacTel
      Corporation Deferred Compensation Plan as of the Separation Date, other
      than Company "matching" contributions, plus Interest to the Annuity Start
      Date. (As of the Separation Date, assets and liabilities attributable to
      these plans were transferred to the AirTouch Communications Excess Benefit
      Plan.)

              

      

      

      "PacTel Employee" means a Participant
who was employed by PacTel Corporation or any of its subsidiaries
(if  such subsidiary was a participating company in the PacTel
Corporation Employees Pension Plan) before the Separation Date.

      

      "PacTel Pension Benefit," which is
used to reduce the Officer Minimum Benefit in Section 3.4(b), means the sum of
the pensions payable at age 65 that were accrued as of the Separation Date under
the AirTouch Communications Employees Pension Plan (other than any pension
payable under Supplements A, B and C of that plan) and the AirTouch
Communications Supplemental Executive Pension Plan, except that each pension
shall be adjusted for early payment, under the terms of its plan in effect at
the Separation Date, as if the Participant's annuity under the plan commenced on
the Participant's Annuity Start Date under those plans, if received as a service
pension, or on the Annuity Start Date under this Plan, if received as a vested
pension.

      

      "PacTel Retirement Plan" means the
defined contribution plan maintained by the Company before the Separation Date
for the benefit of employees of PacTel Corporation and its subsidiaries. Its
formal name was the PacTel Corporation Retirement Plan. (As of the Separation
Date, assets and liabilities attributable to this plan were transferred to the
AirTouch Communications Retirement Plan).

      

      "Participant" means an Employee
described in Section 2.1 of the Executive Plan and, to the extent that other
Employees who participated in the Executive Plan or a Predecessor Plan are
specifically included, such other Employees.

      

      "Participating Companies" mean the
Company and each other corporation or partnership that both (a) participates in
the Salaried Pension Plan and (b) has determined, with the concurrence of the
Company's Board of Directors, to participate in this Plan.

      

      "Pay" means a Participant's base pay,
whether or not deferred, plus the Participant's Standard Award, whether or not
deferred. For purposes of determining the ongoing Pay-based allocations under
Section 3.5, the Standard Award shall be taken into account in the month in
which it is paid.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Plan Administrator" means the
Executive Vice President-Human Resources of the Company, as set forth in Section
10.2.

      

      "Predecessor Plans" mean the Pacific
Telesis Group Executive Non-Salaried Pension Plan, the  Pacific
Telesis Group Supplemental Executive Retirement Plan, and the minimum pension
and related welfare and surviving spouse benefit provisions of the Pacific
Telesis Group Executive Disability and Survivor Protection Plan (formerly called
the Pacific Telesis Group Senior Management Long Term Disability and Survivor
Protection Plan). It also means the predecessor plan to those plans, i.e., the
Bell System Senior Management Non-Salaried Pension Plan.

      

      "Present Value" means a single sum
which is actuarially equivalent to a monthly pension commencing as of a
specified date and payable for the Participant's life determined by using
Standard Factors.

      

      "Qualified Pension Benefit" means the
part of a Participant's Total Benefit payable from the pension fund associated
with the Salaried Pension Plan. Such benefit shall be adjusted for early payment
if applicable and further adjusted for any additional pension actually payable
after the Annuity Start Date due to increased limits under section 415 of the
Internal Revenue Code. However, if a Participant is not an Executive at his or
her Termination of Employment and if nonqualified pension benefits are payable
under the Excess Plan due to limits under sections 401(a)(17) and 415 of the
Internal Revenue Code, then the term Qualified Pension Benefit, for purposes of
determining the appropriate offset, shall include the nonqualified pension
benefits payable under the Excess Plan. Any ad hoc or other increases payable
under the Salaried Pension Plan after the Annuity Start Date (other than
increases due to section 415 limits) shall not be included in the amount of the
Participant's Qualified Pension Benefit.

      

      "Regular Surviving Spouse Benefit"
means the Total Benefit of the surviving spouse of an Existing Participant
determined under the formula set forth in Section 6.3.

      

      "Salaried Pension Plan" means the
Pacific Telesis Group Cash Balance Pension Plan for Salaried
Employees.

      

      "Select Officer" means a Participant
designated by the Committee or its delegate as providing services in the
position then held by the Participant that are critical to the efficient
operation of the Company through, and continuing after, the merger of the
Company and SBC Communications Inc.

      

      "Separation Date" means April 1,
1994, the date as of which occurred the total and complete separation of the
ownership of PacTel Corporation from the Company.

      

      "Short Term Incentive Plan" means the
Pacific Telesis Group Short Term Incentive Plan and its predecessor
plan.

      

      "Standard Award" shall have the
meaning set forth in the Short Term Incentive Plan, which includes adjustments
for changes in position rate.

      

      "Standard Factor" has the same
meaning as under the Salaried Pension Plan.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Supplementary Rate" means the rate
used to construct a Participant's opening account balance under Section 3.5(c)
and to make ongoing Pay-based allocations to the Participant's Executive Account
or Mid-Career Account. The Supplementary Rate of a Participant hired on or after
July 1, 1996 shall be the percentage specified in Appendix A based on the
Participant's age at hire, subject to any inconsistent or overriding provision
in an employment agreement between the Participant and the Company. The
Supplementary Rate of an Existing Participant shall be the rate that, in
combination with the Participant's Basic Rate, is designed to provide a
projected Total Benefit under the Executive Plan payable at age 65 that is a
specified percentage of the projected Total Benefit that would have been payable
to the Participant under the terms of the Salaried Pension Plan, Mid-Career Plan
and Executive Plan as in effect at March 21, 1996. The Supplementary Rate of
each Existing Participant is defined in an administrative document held by
Executive Compensation and Benefits, the provisions of which are effective as of
July 1, 1996, and not subject to amendment thereafter.

      

      "Surviving Spouse Cash Balance
Benefit" means the Total Benefit of the surviving spouse of a Participant
determined under the cash balance benefit formula in Section 6.4.

      

      "Term of Employment" means the number
of years and months credited to the Participant as of the applicable
determination date. A Participant's Term of Employment (i) includes all periods
that the Participant was employed by the Company, other companies participating
in the Salaried Pension Plan, certain Joint Venture Employers, and certain
predecessor employers; (ii) does not include service before a break in service
until such service is "bridged" as provided in the Salaried Pension Plan; and
(iii) excludes any period of employment which was transferred from the Salaried
Pension Plan to the PacTel Corporation Employees Pension Plan effective before
the Separation Date and was included in the Participant's service recognized by
that plan as of the Separation Date.

      

      "Termination of Employment" has the
same meaning as under the Salaried Pension Plan.

      

      "Total Account" means the
hypothetical unfunded bookkeeping account established for each participant in
the Excess Plan.

      

      "Total Benefit" means the benefit
payable to a Participant (or surviving spouse, in the event of a Participant's
death) under the Salaried Pension Plan and the Executive Plan.

      

      "Years of Credited Service" means the
number of whole and partial years credited to the Participant for purposes of
calculating the monthly pension under the Salaried Pension Plan except that, as
provided in Section 3.2(c) above, if a Participant is not an Executive at his or
her Termination of Employment, the years so credited under the Salaried Pension
Plan after the Participant ceased serving as an Executive shall be disregarded.
As provided under the Salaried Pension Plan as in effect at March 21, 1996, a
Participant's Years of Credited Service (i) reflect an adjustment for part- time
employment; (ii) do not include periods of service with a non-Participating
Company without a transfer of assets and corresponding liabilities; (iii) do not
include periods that the Participant was employed by PacTel Corporation (and its
subsidiaries) between January 1, 1987, and the Separation Date unless the
Participant was an Employee on the Separation Date and had been a full accrual
participant under the PacTel Corporation Employees Pension Plan before the
Separation Date; (iv) do not include periods of service before a break in
service until such service is "bridged" as provided in the Salaried Pension Plan
(provided, however, that for purposes of determining a Participant's Basic
Benefit, Years of Credited Service shall include any service that could be
bridged as of June 30, 1996); and (v) are limited to the greater of 30 years or
the actual years accrued as of December 31, 1994.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      "Years of Officer Service" means the
number of whole and partial 365-day periods during which the Participant was
continuously employed as an Officer of a Participating Company. In addition,
Years of Officer Service include periods of service with other members of the
Employer Group or Joint Venture Employers (non-Participating Companies) if such
service is included in the Participant's Term of Employment and if the position
in which the Participant served at the non-Participating Company is designated
by the Committee to be the equivalent of an Officer position for purposes of
this Plan. Such service with non-Participating Companies shall not be considered
a break in the continuity of Years of Officer Service for purposes of Sections
3.3(a) and (b). If a Participant has a break in the continuity of Years of
Officer Service which does not exceed six months, service before and after the
break shall be included in the Participant's Years of Officer Service. However,
if a Participant is reemployed after a break of more than six (6) months in the
continuity of Years of Officer Service, the Participant's service before the
break shall not be included in his or her Years of Officer Service until the
Participant completes 5 Years of Officer Service after reemployment. Subject to
these break-in-service rules, service as an Officer with a company that
participated in a Predecessor Plan before the Separation Date (including PacTel
Corporation) shall be included in the Participant's Years of Officer Service,
regardless of whether or not such service is included in the Participant's Term
of Employment after the Separation Date.

      

      

      

      

      

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      APPENDIX
A -- SUPPLEMENTARY RATE

      

      

                                                Percentage
of Pay

                         Age
at Hire       Allocation

                         -----------            -----------------

      

                             40                      2.9%

                             41                      3.4%

                             42                      3.9%

                             43                      4.5%

                             44                      5.1%

                             45                      5.8%

                             46                      6.6%

                             47                      7.3%

                             48                      7.9%

                             49                      8.1%

                             50                      8.3%

                             51                      8.6%

                             52                      8.8%

                             53                      9.1%

                             54                      9.3%

                             55                      9.6%

                             56                      9.8%

                             57                     10.1%

                             58                     10.3%

                             59                     10.6%

                             60                     10.9%

      

      

      

      

      

      

      

      

      

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      APPENDIX
B -- OPENING BALANCE FACTORS

      

      Opening
Balance Factors Under 1%/8% Cash Balance Plan

      (Based on
Final Year's Pay and Service as of 6/30/96)

      

      -
------------------------------------------------------------------------------------------------------------------------------------------

                      Months

       -------------------------------------------------------------------------------------------------------------------------------------------

      Years     0         1          
2               3           4              5             6         7    8     9         
 10          
11

      -
------------------------------------------------------------------------------------------------------------------------------------------

        0  0.0000    0.0009    0.0017    0.0026    0.0035    0.0043    0.0052    0.0061    0.0069    0.0078    0.0087    0.0095

        1  0.0104    0.0113    0.0122    0.0131    0.0140    0.0149    0.0158    0.0166    0.0175    0.0184    0.0193    0.0202

        2  0.0211    0.0220    0.0229    0.0239    0.0248    0.0257    0.0266    0.0275    0.0284    0.0294    0.0303    0.0312

        3  0.0321    0.0331    0.0340    0.0350    0.0359    0.0369    0.0379    0.0388    0.0398    0.0407    0.0417    0.0426

        4  0.0436    0.0446    0.0456    0.0466    0.0475    0.0485    0.0495    0.0505    0.0515    0.0525    0.0534    0.0544

        5  0.0554    0.0564    0.0574    0.0585    0.0595    0.0605    0.0615    0.0625    0.0635    0.0646    0.0656    0.0666

        6  0.0676    0.0687    0.0697    0.0708    0.0718    0.0729    0.0739    0.0750    0.0760    0.0771    0.0781    0.0792

        7  0.0802    0.0813    0.0824    0.0835    0.0846    0.0857    0.0868    0.0878    0.0889    0.0900    0.0911    0.0922

        8  0.0933    0.0944    0.0956    0.0967    0.0978    0.0989    0.1001    0.1012    0.1023    0.1034    0.1046    0.1057

        9  0.1068    0.1080    0.1091    0.1103    0.1114    0.1126    0.1138    0.1149    0.1161    0.1172    0.1184    0.1195

       10  0.1207    0.1219    0.1231    0.1243    0.1255    0.1267    0.1279    0.1291    0.1303    0.1315    0.1327    0.1339

       11  0.1351    0.1363    0.1376    0.1388    0.1401    0.1413    0.1426    0.1438    0.1450    0.1463    0.1475    0.1488

       12  0.1500    0.1513    0.1526    0.1539    0.1551    0.1564    0.1577    0.1590    0.1603    0.1616    0.1628    0.1641

       13  0.1654    0.1667    0.1681    0.1694    0.1707    0.1720    0.1734    0.1747    0.1760    0.1773    0.1787    0.1800

       14  0.1813    0.1827    0.1840    0.1854    0.1868    0.1881    0.1895    0.1909    0.1922    0.1936    0.1950    0.1963

       15  0.1977    0.1991    0.2005    0.2020    0.2034    0.2048    0.2062    0.2076    0.2090    0.2105    0.2119    0.2133

       16  0.2147    0.2162    0.2176    0.2191    0.2206    0.2220    0.2235    0.2250    0.2264    0.2279    0.2294    0.2308

       17  0.2323    0.2338    0.2353    0.2368    0.2383    0.2398    0.2414    0.2429    0.2444    0.2459    0.2474    0.2489

       18  0.2504    0.2520    0.2535    0.2551    0.2566    0.2582    0.2598    0.2613    0.2629    0.2644    0.2660    0.2675

       19  0.2691    0.2707    0.2723    0.2740    0.2756    0.2772    0.2788    0.2804    0.2820    0.2837    0.2853    0.2869

       20  0.2885    0.2902    0.2919    0.2935    0.2952    0.2969    0.2986    0.3002    0.3019    0.3036    0.3053    0.3069

       21  0.3086    0.3103    0.3120    0.3138    0.3155    0.3172    0.3189    0.3206    0.3223    0.3241    0.3258    0.3275

       22  0.3292    0.3310    0.3328    0.3346    0.3363    0.3381    0.3399    0.3417    0.3435    0.3453    0.3470    0.3488

       23  0.3506    0.3524    0.3543    0.3561    0.3580    0.3598    0.3617    0.3635    0.3653    0.3672    0.3690    0.3709

       24  0.3727    0.3746    0.3765    0.3784    0.3803    0.3822    0.3842    0.3861    0.3880    0.3899    0.3918    0.3937

       25  0.3956    0.3976    0.3995    0.4015    0.4035    0.4054    0.4074    0.4094    0.4113    0.4133    0.4153    0.4172

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      

      

      

      APPENDIX
B -- OPENING BALANCE FACTORS (Cont'd.)

      

      

      Opening
Balance Factors Under 1%/8% Cash Balance Plan

      (Based on
Final Year's Pay and Service as of 6/30/96)

      

      -
------------------------------------------------------------------------------------------------------------------------------------------

                      Months

      --------------------------------------------------------------------------------------------------------------------------------------------

      Years     0       
  1          
  2         
  3         
   4        
    5         
    6          
   7         
   8      
     9       
   10     
     11

      -
------------------------------------------------------------------------------------------------------------------------------------------

       26   0.4192    0.4212    0.4233    0.4253    0.4273    0.4294    0.4314    0.4334    0.4355    0.4375    0.4395    0.4416

       27  0.4436    0.4457    0.4478    0.4499    0.4520    0.4541    0.4562    0.4583    0.4604    0.4625    0.4646    0.4667

       28  0.4688    0.4710    0.4732    0.4753    0.4775    0.4797    0.4819    0.4840    0.4862    0.4884    0.4906    0.4927

       29  0.4949    0.4971    0.4994    0.5016    0.5039    0.5061    0.5084    0.5106    0.5128    0.5151    0.5173    0.5196

       30  0.5218    0.5241    0.5265    0.5288    0.5311    0.5334    0.5358    0.5381    0.5404    0.5427    0.5451    0.5474

       31  0.5497    0.5521    0.5545    0.5569    0.5593    0.5617    0.5641    0.5664    0.5688    0.5712    0.5736    0.5760

       32  0.5784    0.5809    0.5834    0.5859    0.5883    0.5908    0.5933    0.5958    0.5983    0.6008    0.6032    0.6057

       33  0.6082    0.6108    0.6133    0.6159    0.6184    0.6210    0.6236    0.6261    0.6287    0.6312    0.6338    0.6363

       34  0.6389    0.6416    0.6442    0.6469    0.6495    0.6522    0.6548    0.6575    0.6601    0.6628    0.6654    0.6681

       35  0.6707    0.6734    0.6762    0.6789    0.6816    0.6844    0.6871    0.6898    0.6926    0.6953    0.6980    0.7008

       36  0.7035    0.7063    0.7092    0.7120    0.7148    0.7176    0.7205    0.7233    0.7261    0.7289    0.7318    0.7346

       37  0.7374    0.7403    0.7433    0.7462    0.7491    0.7520    0.7550    0.7579    0.7608    0.7637    0.7667    0.7696

       38  0.7725    0.7755    0.7785    0.7816    0.7846    0.7876    0.7906    0.7936    0.7966    0.7997    0.8027    0.8057

       39  0.8087    0.8118    0.8149    0.8181    0.8212    0.8243    0.8274    0.8305    0.8336    0.8368    0.8399    0.8430

       40  0.8461    0.8493    0.8526    0.8558    0.8590    0.8622    0.8655    0.8687    0.8719    0.8751    0.8784    0.8816

       41  0.8848    0.8881    0.8915    0.8948    0.8981    0.9015    0.9048    0.9081    0.9115    0.9148    0.9181    0.9215

       42  0.9248    0.9283    0.9317    0.9352    0.9386    0.9421    0.9455    0.9490    0.9524    0.9559    0.9593    0.9628

       43  0.9662    0.9698    0.9733    0.9769    0.9804    0.9840    0.9876    0.9911    0.9947    0.9982    1.0018    1.0053

       44  1.0089    1.0126    1.0163    1.0199    1.0236    1.0273    1.0310    1.0346    1.0383    1.0420    1.0457    1.0493

       45  1.0530    1.0568    1.0606    1.0644    1.0682    1.0720    1.0759    1.0797    1.0835    1.0873    1.0911    1.0949

       46  1.0987    1.1026    1.1066    1.1105    1.1144    1.1183    1.1223    1.1262    1.1301    1.1340    1.1380    1.1419

       47  1.1458    1.1499    1.1539    1.1580    1.1621    1.1661    1.1702    1.1743    1.1783    1.1824    1.1865    1.1905

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]