Document:

ex10cc.htm

    Exhibit
10-cc

     

    

     

    

     

    

     

    

     

    

     

    AT&T
INC.

     

    CASH
DEFERRAL PLAN

     

    ADOPTED
NOVEMBER 19, 2004

     

    AS
AMENDED THROUGH NOVEMBER 19, 2009

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    Article 1
− Statement of Purpose

     

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

     

    Article 2
− Definitions

     

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

     

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

     

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

     

    (a)  base
salary;

     

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

     

    (c)
Annual Bonus.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    Eligible
Employee.  An Employee who:

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
       

      
        	Net Credited
      Service	Age
	10 years or
      more	65 or
      older 
	20 years or
      more 	55 or
      older 
	25 years or
      more 	50 or
      older 
	30 years or
      more	Any
    age 

      

       

    

     

    For
purposes of this Plan only, Net Credited Service shall be calculated in the same
manner as “Pension Eligibility Service” under the AT&T Pension Benefit Plan
– Nonbargained Program (“Pension Plan”), as the same existed on October1, 2008,
except that service with an Employer shall be counted as though the Employer
were a “Participating Company” under the Pension Plan and the Employee was a
participant in the Pension Plan.

     

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

     

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

     

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

     

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

     

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

     

    Article 3
− Administration of the Plan

     

    3.1           The
Committee.

     

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

     

    3.2           Claims
and Appeals.

     

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

     

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

     

    If the
claim is denied by the AT&T Executive Compensation Administration
Department, in whole or in part, the AT&T Executive Compensation
Administration Department shall provide a written decision using language
calculated to be understood by the Claimant and setting forth:  (i)
the specific reason or reasons for such denial; (ii) specific references to
pertinent provisions of this Plan on which such denial is based; (iii) a
description of any additional material or information necessary for the Claimant
to perfect his or her claim and an explanation of why such material or such
information is necessary; (iv) a description of the Plan’s procedures for review
of denied claims and the steps to be taken if the Claimant wishes to submit the
claim for review; (v) the time limits for requesting a review of a denied claim
under this section and for conducting the review under this section; and (vi) a
statement of the Claimant’s right to bring a civil action under Section 502(a)
of ERISA if the claim is denied following review under this
section.

     

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

     

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

     

    During
its review of the claim, the Committee shall:

     

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

     

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

     

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

     

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

     

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

     

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

     

    Article 4
− Contributions

     

    4.1           Election
to Make Contributions.

     

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

     

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

     

    (2)  Up
to 95% (in whole percentage increments) of a Short Term Incentive Award, or up
to 50% (in whole percentage increments) of Annual Bonus (25% for Employees who
are below the level of Senior Manager), in each case such contributions shall be
made during the second calendar year (which is the Plan Year for such
contributions) following the year of such election, except that in 2008 a
separate election may be made with respect to contributions to be made in
2009.  An Employee may make such an election with respect to the type
of Award (Short Term Incentive Award or Annual Bonus) that the Employee is under
as of the time the Employee’s eligibility to make such election is
determined.  If because of a promotion or otherwise, the Employee
receives a different type of Award instead of or in partial or full replacement
for the type of Award subject to the Employee’s election for the relevant Plan
Year, the election will apply to the other Award as well, including but not
limited to any individual discretionary award related thereto.

     

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

     

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

     

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

     

    (e)  In
the event the Participant takes a hardship withdrawal pursuant to Treasury
Regulation §1.401(k)−1 from a benefit plan qualified under the Code and
sponsored by an Employer, any election to make Employee Contributions by such
Participant shall be cancelled on a prospective basis, and the Participant shall
not be permitted to make a new election with respect to Employee Contributions
that would be contributed during the then current and immediately following
calendar year.

     

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

     

    (g)  With
respect to a Plan Year, an Employee may elect to (1) make Employee Contributions
of Base Compensation other than Annual Bonus to this Plan but only if the
Employee elects to contribute at least 15% of Base Compensation other than
Annual Bonus for the same Plan Year to the Stock Purchase and Deferral Plan
and/or (2) make Employee Contributions of Annual Bonus to this Plan but only if
the Employee elects to contribute at least 15% of Annual Bonus for the same Plan
Year to the Stock Purchase and Deferral Plan.

     

    4.2           Contributions
to a Cash Deferral Account.

     

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

     

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

     

    4.3           Earnings
on Cash Deferral Accounts.

     

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

     

    Article 5
− Distributions

     

    5.1           Distributions
of Cash Deferral Accounts.

     

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

     

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

     

    (2)  Retirement
Distribution.  That the distribution of the Cash Deferral Account
commence the calendar year following the calendar year of Retirement in up to
(10) installments.  If the Participant Terminates Employment while not
Retirement eligible, the distribution shall commence the calendar year following
the calendar year of Termination of Employment, but shall be limited to five (5)
installments.  This distribution alternative will not be available for
Initial Elections made after 2007.

     

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

     

    (b)  If
an Employee elected a Specified Date Distribution for a Cash Deferral Account,
the Employee may elect a new Specified Date Distribution commencement date but
not a new number of installments; provided, however, Termination of Employment
will not accelerate the distribution, unlike the initial deferral
election.  Unless otherwise provided by the Committee, the election of
a new commencement date must be made on or after October 1, and on or before the
last Business Day of the next following December, of the calendar year that is
the second calendar year preceding the calendar year of the relevant
commencement date.  To make this election, the Participant must be an
Eligible Employee both on the September 30 immediately preceding such election
and on the last day such an election may be made.  For example, an
election to defer a scheduled distribution that would otherwise commence in 2010
must be made during the period from October 1, 2008, through the last business
day of December 2008, and the Participant must be an Eligible Employee both on
September 30, 2008, and the last business day of December 2008.  The
new distribution election must delay commencement of the distribution by five
(5) years.  An election to create a new Specified Date Distribution
and defer the commencement of the distribution of a Cash Deferral Account may
not be made in the same calendar year the election to establish the Cash
Deferral Account is made.  Notwithstanding anything to the contrary in
this Plan, (1) such election to create a new Specified Date Distribution must be
made at least 12 months prior to the date of the first scheduled payment under
the prior distribution election and (2) the election shall not take effect until
at least 12 months after the date on which the election is made.

     

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

     

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

     

    5.2           Death
of the Participant.

     

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

     

    5.3           Unforeseeable
Emergency Distribution.

     

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

     

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

     

    (b)           The
amount of a distribution to be made because of an Unforeseeable Emergency shall
not exceed the amount reasonably necessary, as determined by AT&T (the
Committee in the case of Officer Level Employees) in its sole discretion, to
satisfy the emergency need (which may include amounts necessary to pay any
Federal, state, local, or foreign income taxes or penalties reasonably
anticipated to result from the distribution).  Determinations of the
amount reasonably necessary to satisfy the emergency need shall take into
account any additional compensation that is available if the plan provides for
cancellation of a deferral election upon a payment due to an Unforeseeable
Emergency.  The determination of amounts reasonably necessary to
satisfy the Unforeseeable Emergency need is not required to, but may, take into
account any additional compensation that, due to the Unforeseeable Emergency, is
available under another nonqualified deferred compensation plan but has not
actually been paid, or that is available due to the Unforeseeable Emergency
under another plan that would provide for deferred compensation except due to
the application of the effective date provisions under Treasury Regulation §
1.409A−6.

     

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

     

    5.4           Ineligible
Participant.

     

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

     

    Article 6
− Transition Provisions

     

    6.1           2005
Cash Deferral Accounts.

     

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

     

    6.2           2007
Amendments.

     

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

     

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

     

    Article 7
− Discontinuation, Termination, Amendment.

     

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

     

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

     

    7.2           AT&T’s
Right to Terminate Plan.

     

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

     

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

     

    7.3           Amendment.

     

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

     

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

     

    Article 8
− Miscellaneous

     

    8.1           Tax
Withholding.

     

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

     

    8.2           Loyalty
Conditions for Officer Level Employees and Senior Managers.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (d) Uniform
Enforcement.  In recognition of AT&T’s need for nationally uniform
standards for the Plan administration, it is an absolute condition in
consideration of any Participant’s ability to make Employee Contribution
elections under Section 4.1 of this Plan after September 1, 2009, that each and
all of the following conditions apply to all such electing
Participants:

     

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

     

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

     

    8.3           Elections
and Notices.

     

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

     

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

     

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

     

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

     

    8.4           Unsecured
General Creditor.

     

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

     

    8.5           Non-Assignability.

     

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

     

    8.6           Employment
Not Guaranteed.

     

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

     

    8.7           Errors.

     

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

     

    

     

    8.8           Captions.

     

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

     

    8.9           Governing
Law.

     

    To the
extent not preempted by Federal law, the Plan, and all benefits and agreements
hereunder, and any and all disputes in connection therewith, shall be governed
by and construed in accordance with the substantive laws of the State of Texas,
without regard to conflict or choice of law principles which might otherwise
refer the construction, interpretation or enforceability of this Plan to the
substantive law of another jurisdiction.

     

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

     

    8.10           Plan
to Comply with Section 409A.

     

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

     

    8.11           Successors
and Assigns.

     

    This Plan
shall be binding upon AT&T and its successors and assigns.ex10dd.htm

    EXHIBIT
DD

    MASTER

    TRUST
AGREEMENT FOR

    SOUTHWESTERN
BELL CORPORATION

    

    

    DEFERRED
COMPENSATION PLANS AND OTHER

    EXECUTIVE
BENEFIT PLANS

    

    

    By and
Between

    

    

    SOUTHWESTERN
BELL CORPORATION,

    

    PARTICIPATING
TRUST TRUSTEES

    

    And

    

    BOATMEN'S
TRUST COMPANY, AS TRUSTEE

    

    

    

    

    MASTER
TRUST AGREEMENT FOR

    SOUTHWESTERN
BELL CORPORATION

    SENIOR
MANAGEMENT DEFERRED COMPENSATION PLANS AND

    OTHER
EXECUTIVE BENEFIT PLANS

    

    This
Trust Agreement is made and entered into by and between SOUTHWESTERN BELL
CORPORATION, a Delaware corporation (the "Company"), BOATMEN'S TRUST COMPANY, a
Missouri corporation (the "Trustee"), and Boatmen's Trust Company as trustee of
each Participating Trust (as such term is hereinafter defined). Boatmen's Trust
Company acting in its capacity as trustee of each Participating Trust is
hereinafter referred to as the "Participating Trust Trustee". The parties agree
as follows:

    

    The
Company and the Participating Trust Trustees hereby establish with the Trustee a
trust to hold all monies and other property, together with the earnings, income,
additions and appreciation thereon and thereto, as shall be paid or transferred
to it hereunder in accordance with the terms and conditions of this Trust
Agreement. The Trustee hereby accepts the trust established under this Trust
Agreement and agrees to hold, IN TRUST, all monies and other property
transferred to it hereunder for the uses and purposes and upon the terms and
conditions set forth herein, and the Trustee further agrees to discharge and
perform fully and faithfully all of the duties and obligations imposed upon it
under this Trust Agreement.

    

    PREAMBLE

    

    The
Company and the Participating Trust Trustees have entered into the following
trust agreements, each of which is incorporated herein by this reference,
thereby establishing eight separate trusts (each of which is referred to herein
as a "Participating Trust"):

    

    · Trust
Agreement for Southwestern Bell Corporation

    Senior
Management Deferred Compensation Plan of 1988

    · Trust
Agreement for Southwestern Bell Corporation

    Senior
Management Deferred Compensation Plan of 1988 (Early Payment
Option)

    · Trust
Agreement for Southwestern Bell Corporation

    Senior
Management Deferred Compensation Plan

    · Trust
Agreement for Southwestern Bell Corporation

    Management
Deferred Compensation Plan of 988

    · Trust
Agreement for Southwestern Bell Corporation

    Management
Deferred Compensation Plan

    · Trust
Agreement for Southwestern Bell Corporation

    Compensation
Deferral Plan

    · Trust
Agreement for Southwestern Bell Corporation

    Senior
Management Supplemental Retirement Income Plan

    · Trust
Agreement for Southwestern Bell Corporation

    Management
Pension Plan (Benefits In Excess of Code ss. 415 Limitations)

    

    The
Company and the Participating Trust Trustees wish to establish his trust to
facilitate the administration of the Participating Trusts.

    

    The
Company and/or the respective Participating Trust Trustee shall provide the
Trustee with certified copies of the following items: (i) Participating Trust
Agreement; and (ii) lists and specimen signatures of representatives authorized
to take action in regard to the administration of the Participating Trust and/or
this trust, including any changes of such representatives promptly following any
such change.

    

    The
purpose of this trust is to facilitate the administration of the Participating
Trusts which were themselves each established for the benefit of eligible
participants of the plan to which the Participating Trust relates (each such
plan being hereinafter referred to as a "Plan").

    

    This
trust shall be and hereby is declared to be subject to the provisions of each
Participating Trust.

    

    The
Company and the Participating Trust Trustees and the Trustee agree that the
trust hereby created has been established to facilitate the administration of
the Participating Trusts (which themselves were each established to pay
obligations of the Company pursuant to a Plan) and is subject to the rights of
general creditors of the Company, and accordingly is a grantor trust under the
provisions of Sections 671 through 677 of the Internal Revenue Code of 1986 as
amended (the "Code"). The Company hereby agrees to report all items of income
and deduction of the trust on its own income tax returns; and the Company shall
have no right to any distributions from the trust or any claim against the trust
for funds necessary to pay any income taxes which the Company is required to pay
on account of reporting the income of the trust on its income tax returns. No
contribution to or income of the trust is intended to be taxable to Plan
participants until benefits are distributed to them.

    

    Each Plan
is intended to be "unfunded" and maintained "primarily for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees" for purposes of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA") and as such is intended not to be covered by
Parts 2 through 4 of subtitle B of Title I of ERISA (relating to participation
and vesting, funding and fiduciary responsibility). The existence of this trust
is not intended to alter this characterization of any Plan.

    

    Any
additional trust may become a Participating Trust hereunder with the consent of
the Company and the Trustee upon adoption of this Agreement and delivery to the
Trustee of assets to purchase units hereunder for such trust in accordance with
2.1 and 3.3 hereof.

    

    ARTICLE
I

    

    Effective
Date; Duration

    

    1.1         Effective
Date and Trust Year

    

    This
trust shall become effective when the Trust Agreement has been executed by the
Company, the Participating Trust Trustees and the Trustee and the Company and/or
a Participating Trust Trustee has made a contribution to the trust. The trust
year shall be the calendar year.

    

    1.2       Duration

    

    1.2.1              This
trust shall continue in effect until all assets of the trust fund are exhausted
through distribution of Participating Trust assets in accordance with the
provisions of the Participating Trusts or return of Participating Trust assets
to the Participating Trust Trustees or to the Company in accordance with
Participating Trust provisions. Notwithstanding the foregoing, this trust shall
terminate on the day before twenty-one years after the death of the last
survivor of all of the present or future participants in any Plan who are now
living and those persons now living who are designated as beneficiaries of any
such participants in accordance with the terms of any Plan.

    

    ARTICLE
II

    

    Trust
Fund

    

    2.1       Contributions

    

    The Company and the Participating
Trust Trustees hereby establish with the Trustee, and the Trustee hereby
accepts, a trust consisting of such cash or other property acceptable to the
Trustee as shall be paid or delivered to the Trustee from time to time by the
Company or any Participating Trust Trustee together with the earnings, income,
additions and appreciation thereon and thereto. All such payments and deliveries
of cash or other property shall be deemed to be made as of the Valuation Date
(as such term is hereinafter defined) coinciding with or next following such
payment or delivery and shall purchase units in accordance with the provisions
of 3.3. With respect to contributions made by the Company, the Company shall
designate the Participating Trust for which such contributions are made;
provided, however, the Company may designate that funds it contributes not be
allocated to any Participating Trust but instead that such contribution be
allocated to the Company's account that shall be maintained hereunder. The
Trustee shall hold the fund in trust and manage and administer it in accordance
with the terms and provisions of this Agreement.

    

    Before a Potential Change in Control
(as such term is defined in the Participating Trusts), subject to 3.2.1, the
Trustee shall transfer from the Company's account hereunder to the account of
any Participating Trust such amount as the Company directs. Upon a Potential
Change in Control, any funds then held in the Company's account hereunder shall
be allocated as of the Valuation Date coinciding with or next following the
Potential Change in Control to the Participating Trusts hereunder. The amount
allocated to each such Participating Trust shall be that portion of the total
amount in the Company's account that is proportional to the ratio of a
Participating Trust's Potential Change in Control Funding Amount (as such term
is defined in the Participating Trusts) to the aggregate of the Potential Change
in Control Funding Amounts of all of the Participating Trusts.

    

    2.2       Investments

    

    2.2.1              The
trust fund may be invested primarily in insurance or annuity contracts
("Contracts"). Such Contracts may be purchased by the Company and transferred to
the Trustee by the Company or a Participating Trust Trustee as in-kind
contributions or may be purchased by the Trustee with the proceeds of cash
contributions (or may be purchased upon direction by the Company pursuant to
2.2.2 or an Investment Manager pursuant to 2.2.4). The Company's contributions
to the trust shall include sufficient cash to make projected premium payments on
such Contracts and payments of interest due on loans secured by the cash value
of such Contracts, unless the Company makes such payments directly. The Trustee
shall have the power to exercise all rights, privileges, options and elections
granted by or permitted under any Contract or under the rules of the issuing
insurance company ("Insurer"), including the right to obtain policy loans
against the cash value of the Contract. The Company or a Participating Trust
Trustee or a Committee (as such term is defined in the Participating Trusts) may
from time to time direct the Trustee in writing as to the designation of the
beneficiary of a Plan participant under a Contract for any part of the death
benefits payable to such beneficiary thereunder, and the Trustee shall file such
designation with the Insurer.

    

    2.2.2              The
trustee shall invest the trust fund in accordance with written directions by the
Company. However, after a Change in Control (as such term is defined in the
Participating Trusts) no investments shall be made in any securities or
instruments issued by the Company or other assets of the Company without the
written Consent of Participants (as such term is defined in the Participating
Trusts). The Trustee shall act only as an administrative agent in carrying out
directed investment transactions and shall not be responsible for the investment
decision. If a directed investment transaction violates any duty to diversify,
to maintain liquidity or to meet any other investment standard under this trust
or applicable law, the entire responsibility shall rest upon the Company. The
Trustee shall be fully protected in acting upon or complying with any investment
objectives, guidelines, restrictions or directions provided in accordance with
this paragraph.

    

    Notwithstanding the foregoing, after
a Change in Control the Company shall no longer be entitled to direct the
Trustee with respect to the investment of the trust fund pursuant to this 2.2.2,
unless the Written Consent of Participants is obtained for the Company to
continue to have this right pursuant to this 2.2.2. If such written Consent of
Participants is not obtained, the trust fund shall be invested by the Trustee
pursuant to 2.2.3 or an Investment Manager pursuant to 2.2.4 and the Trustee or
Investment Manager shall also have the right to invest the trust fund primarily
in insurance or annuity contracts pursuant to 2.2.1.

    

    2.2.3              
If the Trustee does not receive instructions from the Company for the investment
of part or all of the trust fund, the Trustee shall invest and reinvest the
assets of the trust as the Trustee, in its sole discretion, may deem
appropriate, including (without limiting the generality of the foregoing)
improved and unimproved real property, whether or not income producing, common
and preferred stocks, shares or certificates of participation issued by
investment companies, investment trusts and mutual funds, common or pooled
investment funds, bonds, debentures, mortgages, deeds of trust, insurance and
annuity contracts, notes secured by real or personal property, leases, ground
leases, limited partnership interests, real or personal property interests
owned, developed or managed by joint ventures or limited partnerships,
obligations of governmental bodies, both domestic and foreign, notes, commercial
paper, certificates of deposit, and other securities or evidences of
indebtedness, secured or unsecured, including variable amount notes, convertible
securities of all types and kinds, interest-bearing savings or deposit accounts
with any federally-insured bank (including the Trustee or an affiliate of the
Trustee) or any savings and loan association, and any other property permitted
as trust investments under applicable law; provided, however, the Trustee is
hereby specifically authorized to sell covered call options but shall not
purchase such options or otherwise deal in options or futures
contracts.

    

    The
Trustee is hereby specifically authorized to invest in any common or pooled
investment fund or mutual fund now or hereafter maintained by the Trustee or an
affiliate of the Trustee and any interest-bearing savings or deposit accounts
with the banking department of the Trustee or an affiliate of the
Trustee.

    

    2.2.4              The
Company may appoint one or more investment managers ("Investment Manager")
subject to the following provisions:

    

    (a) The Company may appoint one or more
Investment Managers to manage (including the power to acquire and dispose of) a
specified portion of the assets of the trust (hereinafter referred to as that
Investment Manager's "Segregated Fund"). Any Investment Manager so appointed
must be either (A) an investment adviser registered as such under the Investment
Advisers Act of 1940, (B) a bank, as defined in that Act, or (C) an insurance
company qualified to perform services in the management, acquisition or
disposition of the assets of trusts under the laws of more than one state; and
any Investment Manager so appointed must acknowledge in writing to the Company
and to the Trustee that it is a fiduciary with respect to the Plans. The
Trustee, until notified in writing to the contrary, shall be fully protected in
relying upon any written notice of the appointment of an Investment Manager
furnished to it by the Company.  In the event of any vacancy in the
office of Investment Manager, the Trustee shall be deemed to be the Investment
Manager of that Investment Manager's Segregated Fund until an Investment Manager
thereof shall have been duly appointed; and in such  event, until an
Investment Manager shall have been so  appointed and qualified,
references herein  to the Trustee's acting in respect of that
Segregated Fund pursuant to direction from the Investment Manger shall be deemed
to  authorize  the  Trustee to act in its own
discretion in managing and controlling the assets of that Segregated Fund, and
subparagraph (c) below shall have no effect with respect thereto and shall be
disregarded.

    

    (b) Each Investment Manager appointed
pursuant to subparagraph (a) above shall have exclusive authority and discretion
to manage and control the assets of its Segregated Fund and may invest and
reinvest the assets of the Segregated Fund in any investments in which the
Trustee is authorized to invest under 2.2.3, subject to the limitations of 2.2.3
and subject to the terms and limitations of any written instruments pertaining
to its appointment as Investment Manager. Copies of any such written instruments
shall be furnished to the Trustee. In addition, each Investment Manager from
time to time and at any time may delegate to the Trustee (or in the event of any
vacancy in the office of Investment Manager, the Trustee may exercise in respect
of that Investment Manager's Segregated Fund) discretionary authority to invest
and reinvest otherwise uninvested cash held in its Segregated Fund temporarily
in bonds, notes or other evidences of indebtedness issued or fully guaranteed by
the United States of America or any agency or instrumentality thereof,
or  in other obligations of a short-term nature, including prime
commercial obligations or part interests therein.

    

    (c) Unless the Trustee knowingly
participates in, or knowingly undertakes to conceal, an act or omission of an
Investment Manager, knowing such act or omission to be a breach of the fiduciary
responsibility of the Investment Manager with respect to any Plan, the Trustee
shall not be liable for any act or omission of any Investment Manager and shall
not be under any obligation to invest or otherwise manage the assets of any Plan
that are subject to the management of any Investment Manager. Without limiting
the generality of the foregoing, the Trustee shall not be liable by reason of
its taking or refraining from taking at the direction of an Investment Manager
any action in respect of that Investment Manager's Segregated Fund. The Trustee
shall be under no duty to question or to make inquiries as to any direction or
order or failure to give direction or order by any Investment Manager; and the
Trustee shall be under no duty to make any review of investments acquired for
the trust at the direction or order of any Investment Manager and shall be under
no duty at any time to make any recommendation with respect to disposing of or
continuing to retain any such investment.

    

    2.3         Excess
Assets

    

    Excess Assets (as such term is
defined in the Participating Trusts) allocable to any Participating Trust that
are held in this trust may be returned to the Company in accordance with the
provisions of such Participating Trust and 3.2 hereof. Funds not allocated to
any Participating Trust shall not be returned to the Company (payments made out
of the Company's account on behalf of a Participating Trust pursuant to 3.2
shall not constitute a return to the Company of any unallocated
funds).

    

    2.4         Subtrusts

    

    2.4.1              Upon
written direction of the Company, the Trustee shall establish a separate
subtrust ("Subtrust") for each participant in a Plan. The Subtrust shall reflect
an undivided interest in the Participating Trust's assets of the trust fund and
shall not require any segregation of particular assets. In the event the Company
directs the Trustee to establish separate Subtrusts, the Company shall direct
the Trustee with respect to the allocation of assets of the trust fund among
each separate Subtrust. After a Change in Control, any such direction by the
Company with respect to the allocation of assets of the trust fund among
separate Subtrusts may be made only with the Written Consent of Participants
affected thereby. If the Trustee does not receive a valid direction with respect
to the allocation of assets of the trust fund among separate Subtrusts within 90
days after such Subtrusts are established, the assets of the trust fund or
affected portion thereof shall be allocated in accordance with the provisions of
the applicable Participating Trust. With respect to any new contributions to the
trust by the Company after separate Subtrusts have been established, the Company
shall designate each participant for which such contributions are made. The
Trustee shall have no duty to inquire whether any of the foregoing allocations
of assets of the trust fund or contributions to the trust are made in compliance
with the terms of any Plan.

    

    After establishment of separate
Subtrusts, the interest of each Subtrust in this trust shall be accounted for as
a separate fund of the trust and no part of the assets allocable to one
participant and his/her Subtrust shall be utilized to provide any benefits under
any Plan to any other participant.

    

    The Trustee shall allocate investment
earnings and losses of the trust fund among the Subtrusts in proportion to their
account balances.  Payments to general creditors during Insolvency
Administration under 5.2 shall be charged against each Subtrust in proportion to
its account balance plus payment therefrom to the beneficiary thereof made
during the previous duration of said Subtrust, except that payment of benefits
to a Plan participant as a general creditor shall be charged against the
Subtrust for that participant.

    

    2.4.2              Upon
direction of a Participating Trust Trustee, the Trustee shall establish a
separate subtrust for each participant (each a "Participant Trust") in a Plan.
The Participant Trust shall reflect an undivided interest in the Participating
Trust's assets of the trust fund and shall not require any segregation of
particular assets. The assets of the trust shall be allocated to such separate
Participant Trusts in accordance with the provisions of the applicable
Participating Trust.  After such allocation, the interest of each
Participant Trust in this trust shall be accounted for as a separate fund of the
trust and no part of the assets allocable to one participant and his/her
Participant Trust shall be utilized to provide any benefits under any Plan to
any other participant.

    

    (a)  With respect to any new
contributions to the trust by the Company after the Participant Trusts have been
established, the Company shall designate each participant and his/her associated
Participant Trust for which such contributions are made.

    

    (b)Investment earnings and losses of
the trust fund of the Plan shall be allocated among the Participant Trusts in
proportion to their account balances.  Payments to general creditors
during Insolvency Administration shall be charged, until each such trust is
exhausted, against each Participant Trust in proportion to its account balance
plus payments therefrom to the beneficiary thereof made during the previous
duration of said Participant Trust, except that payment of benefits to a Plan
participant as a general creditor shall be charged against the appropriate
Participant Trust for that participant.

    

    (c) Following the establishment of
Participant Trusts, a Plan's benefits shall be paid to each participant or
his/her beneficiary(ies) in accordance with the terms of the Plan until all
assets allocable to his/her Participant Trust are
exhausted.  Thereafter, a participant shall have no claim against any
of the other assets of this trust. Notwithstanding the foregoing, if at any time
after the establishment of Participant Trusts, the value of a participant's
Participant Trust shall be $100,000 or less, distribution of the value of such
Participant Trust shall be made by the Trustee to such participant at such time
in a lump sum. Thereafter, such participant shall have no claim against any of
the other assets of this trust, but shall retain any rights which he may have
against the Company pursuant to the Plan.

    

    (d)  If at any time after the
establishment of Participant Trusts in accordance with this 2.4.2, the Company
shall fund the trust to the level required by the applicable Participating Trust
to avoid the establishment of separate Participant Trusts, then at the Company's
option and upon notice by the Company to the Trustee to such effect, the
requirement of this 2.4.2 for separate Participant Trusts shall cease (and the
provisions related thereto shall have no force or effect) and such requirement
shall thereafter recommence only if the Participating Trust funding level
thereafter falls below the level described in the applicable Participating
Trust  as requiring the establishment of separate Participant
Trusts.

    

    2.5              Substitution
of Other Property

    

    2.5.1             The
Company shall have the power to reacquire part or all of the trust fund at any
time, by substituting for it other readily marketable property of equivalent
value, net of any costs of disposition. Such power is exercisable in a
nonfiduciary capacity and may be exercised without the consent of participants
or any other person.

    

    2.5.2              The
value of any insurance Contracts reacquired under 2.5.1 shall be the present
value of future projected cash flow or benefits payable under the Contract, but
not less than the cash surrender value. The projection shall include death
benefits based on reasonable mortality assumptions. The value of all other
assets in the trust fund shall be fair market value. Values shall be determined
by the Trustee and may be based on the determination of Experts (See
2.6.2).

    

    2.6              Administrative
Powers of Trustee

    

    2.6.1              Subject
in all respects to applicable provisions of this Trust Agreement, the
Participating Trust Agreements and the Plans, including limitations on
investment of the trust fund, the Trustee shall have the rights, powers and
privileges of an absolute owner when dealing with property of the trust,
including (without limiting the generality of the foregoing) the powers listed
below:

    

    (a) To
sell, convey, transfer, exchange, partition, lease, and otherwise dispose of any
of the assets of the trust at any time held by the Trustee under this Trust
Agreement;

    

    (b) To
exercise any option, conversion privilege or subscription right given the
Trustee as the owner of any security held in the trust; to vote any corporate
stock either in person or by proxy, with or without power of substitution; to
consent to or oppose any reorganization, consolidation, merger, readjustment of
financial structure, sale, lease or other disposition of the assets of any
corporation or other organization, the securities of which may be an asset of
the trust; and to take any action in connection therewith and receive and retain
any securities resulting therefrom;

    

    (c) To
deposit any security with any protective or reorganization committee, and to
delegate to such committee such power and authority with respect thereto as the
Trustee may deem proper, and to agree to payout of the trust such portion of the
expenses and compensation of such committee as the Trustee, in its discretion,
shall deem appropriate;

    

    (d) To
cause any property of the trust to be issued, held or registered in the name of
the Trustee as trustee, or in the name of one or more of its nominees, or one or
more nominees of any system for the central handling of securities, or in such
form that title will pass by delivery, provided that the records of the Trustee
shall in all events indicate the true ownership of such property;

    

    (e) To
renew or extend the time of payment of any obligation due or to become
due;

    

    (f) To
commence or defend lawsuits or legal or administrative proceedings; to
compromise, arbitrate or settle claims, debts or damages in favor of or against
the trust; to deliver or accept, in either total or partial satisfaction of any
indebtedness or other obligation, any property; to continue to hold for such
period of time as the Trustee may deem appropriate any property so received; and
to pay all costs and reasonable attorneys' fees in connection therewith out of
the assets of the trust;

    

    (g) To
grant options to purchase or to acquire options to purchase any real
property;

    

    (h) To
foreclose any obligation by judicial proceeding or otherwise;

    

    (i) To
manage any real property in the trust in the same manner as if the Trustee were
the absolute owner thereof, including the power to lease the same for such term
or terms within or beyond the existence of the trust and upon such conditions,
including (but not by way of limitation) agreements for the purchase or disposal
of buildings thereon and options to the tenant to renew such lease from time to
time, or to purchase such property, as the Trustee may deem proper;

    

    (j) To
borrow money from any person in such amounts, upon such terms and for such
purposes as the Trustee, in its discretion, may deem appropriate; and in
connection therewith, to execute promissory notes, mortgages or other
obligations and to pledge or mortgage any trust assets as security; and to lend
money on a secured or unsecured basis to any person other than a party in
interest;

    

    (k) To
appoint one or more persons or entities as ancillary trustee or sub-trustee for
the purpose of investing in and holding title to real or personal property or
any interest therein located outside the State of Missouri; provided that any
such ancillary trustee or sub-trustee shall act with such power, authority,
discretion, duties, and functions of the Trustee as shall be specified in the
instrument establishing such ancillary or subtrust, including (without
limitation) the power to receive, hold and manage property, real or personal, or
undivided interests therein; and the Trustee may pay the reasonable expenses and
compensation of such ancillary trustees or sub-trustees out of the
trust;

    

    (l) To
deposit any securities held in the trust with a securities
depository;

    

    (m) To
hold such part of the assets of the trust uninvested for such limited periods of
time as may be necessary for purposes of orderly account administration or
pending required directions, without liability for payment of
interest;

    

    (n) To
determine how all receipts and disbursements shall be credited, charged or
apportioned as between income and principal, and the decision of the Trustee
shall be final and not subject to question by any participant or beneficiary of
the trust; and

    

    (o)
Generally to do all acts, whether or not expressly authorized, which the Trustee
may deem necessary or desirable for the orderly administration or protection of
the trust fund.

    

    2.6.2              The
Trustee may engage one or more independent attorneys, accountants, actuaries,
appraisers or other experts (each an "Expert") for any purpose, including the
determination of Excess Assets (as such term is defined in the Participating
Trusts). The determination of an Expert shall be final and binding on the
Company, the Participating Trust Trustees, the Trustee, and all of the Plans'
participants unless within 30 days after receiving a determination deemed by any
participant to be adverse, any participant initiates suit in a court of
competent jurisdiction seeking appropriate relief. The Trustee shall have no
duty to oversee or independently evaluate the determination of the Expert. The
Trustee shall be authorized to pay the fees and expenses of any Expert out of
the assets of the trust fund.

    

    2.6.3              The
Company shall from time to time pay taxes (references in this Trust Agreement to
the payment of taxes shall include interest and applicable penalties) of any and
all kinds whatsoever which at any time are lawfully levied or assessed upon or
become payable in respect of the trust fund, the income or any property forming
a part thereof, or any security transaction pertaining thereto. To the extent
that any taxes levied or assessed upon the trust fund are not paid by the
Company or contested by the Company pursuant to the last sentence of this
paragraph, the Trustee shall pay such taxes out of the trust fund, and the
Company shall upon demand by the Trustee deposit into the trust fund an amount
equal to the amount paid from the trust fund to satisfy such tax liability. If
requested by the Company, the Trustee shall, at the company's expense, contest
the validity of such taxes in any manner deemed appropriate by the Company or
its counsel, but only if it has received an indemnity bond or other security
satisfactory to it to pay any expenses of such
contest.  Alternatively, the Company may itself contest the validity
of any such taxes, but any such contest shall not affect the Company's
obligation to reimburse the trust fund for taxes paid from the trust
fund.

    

    2.6.4              In
the event a Plan's participant's beneficiary designation results in a
participant or the participant's spouse being deemed to have made a
"generation-skipping transfer" as defined in Section 2611 of the Code, then to
the extent that the participant or participant's "executor", as said term is
defined in the Code (or the spouse of the participant or said spouse's statutory
executor in the case of a generation-skipping transfer deemed to have been made
by a participant's spouse), have not previously used the total
generation-skipping transfer exemption that is available under Section 2631 of
the Code to such transferor, such unused exemption shall be allocated in the
manner prescribed by Section 2632 of the Code, except that (a) any
generation-skipping transfer resulting from said beneficiary designation shall
be excluded from the allocation; and (b) the method of allocation under Section
2632 shall be reversed so that such unused portion of said transferor's
exemption shall be applied first to trusts or trust equivalents of which
transferor is the deemed transferor and from which taxable distributions occur
and, second, to direct skips occurring at said transferor's death. Any portion
of said transferor's total generation-skipping transfer exemption not used
pursuant to the provisions of the previous sentence shall be allocated to the
transfer resulting from the beneficiary designation that gives rise to the
generation-skipping transfer hereunder.

    

    Notwithstanding any provisions in a
Plan or this Trust Agreement to the contrary, the Company and Trustee may
withhold any benefits payable to a beneficiary as a result of the death of the
participant or any other beneficiary until such time as (a) the Company or
Trustee is able to determine whether a generation-skipping transfer tax, as
defined in Chapter 13 of the Code, or any substitute provision therefor, is
payable by the Company or Trustee; and (b) the Company or Trustee has determined
the amount of generation-skipping transfer tax that is due, including interest
thereon. If any such tax is payable, the Company or Trustee shall reduce the
benefits otherwise payable hereunder to such beneficiary by the amount necessary
to provide said beneficiary with a benefit equal to the amounts that would have
been payable if the original benefits had been calculated on the basis of a
present value at the time of the generation-skipping transfer equal to the then
present value of the originally contemplated benefit less an amount equal to the
generation-skipping transfer tax and any interest thereon that is payable as a
result of the death in question. The Company or Trustee may also withhold from
distribution by further reduction of the then net present value of benefits
calculated in accordance with the terms of the previous sentence such amounts as
the Company or Trustee feels are reasonably necessary to pay additional
generation-skipping transfer tax and interest thereon from amounts initially
calculated to be due.  Any amounts so withheld shall be payable as
soon as there is a final determination of the applicable generation-skipping tax
and interest thereon. No interest shall be payable by the Company or Trustee to
any beneficiary for the period of time that is required from the date of death
to the time when the aforementioned generation-skipping transfer tax
determinations are made and the amount of benefits payable to a beneficiary can
be fully determined.

    

    ARTICLE
III

    

    Administration

    

    3.1              Committees;
Company Representatives

    

    3.1.1              Each
Plan is administered by a Committee appointed by the Company. A Committee has
general responsibility to interpret its Plan and determine the rights of
participants and beneficiaries.

    

    3.1.2              The
Trustee shall be given the names and specimen signatures of the members of each
Committee and any other Company and Participating Trust Trustee's
representatives authorized to take action in regard to the administration of a
Plan and/or this trust. The Trustee shall accept and rely upon the names and
signatures until notified of any change. Instructions to the Trustee shall be
signed for the Committee by such person as the Committee may designate and for
the Company by such representative as the Company may designate.

    

    3.2              Payments
From Trust Fund

    

    3.2.1              From
time to time, upon receipt of written directions from the Company or a
Participating Trust Trustee, delivered before a Valuation Date, the Trustee
shall make payments on behalf of a Participating Trust from the Company's
account or the beneficial interest of a Participating Trust to such persons, in
such manner and in such amounts as the Company or Participating Trust Trustee,
as applicable, shall direct, and amounts paid out of the trust pursuant to such
direction shall cease to constitute a part of this trust. All such payments
shall be made as of the Valuation Date next following receipt of such written
direction.

    

    3.2.2              The
Trustee, as directed by the Company, shall make any required income tax
withholding and shall pay amounts withheld to taxing authorities on the
Company's behalf or determine that such amounts have been paid by the
Company.

    

    3.2.3              The
Company or a Participating Trust Trustee, by written direction delivered to the
Trustee not less than 10 days before a Valuation Date, may direct the withdrawal
and transfer to a Participating Trust as of that Valuation Date of part or all
of a Participating Trust's entire beneficial interest in the fund. The Trustee
shall determine the value of such beneficial interest as of that Valuation Date
and transfer the amount of such value to that Participating Trust as soon as
practicable after such Valuation Date, either in cash, or, in the discretion of
the Trustee, in other property or partly in cash and partly in other property.
This trust shall terminate upon the complete withdrawal therefrom of the entire
beneficial interests of all Participating Trusts.

    

    3.2.4              The
Trustee shall use the assets of the trust or any Subtrust or any Participant
Trust to make benefit payments or other payments in the following order of
priority;

    

    (a) All
assets of the trust or any Subtrust or any Participant Trust other than
Contracts with Insurers, in such order as the Trustee may
determine;

    

    (b) Cash
contributions from the Company; and the Company hereby agrees to make cash
contributions to the trust to enable the Trustee to make all benefit payments
and other payments when due, unless the Company makes such payments directly,
whenever the Trustee or a Participating Trust Trustee advises the Company that
the assets of the trust or any Subtrust or any Participant Trust, other than
Contracts with Insurers, are insufficient to make such payments;
and

    

    (c)
Contracts with Insurers held in the trust or any Subtrust or any Participant
Trust; and in using any such Contracts, the Trustee shall first borrow 50% of
the cash surrender value of each such Contract, proceeding in order of Contracts
from the Contracts which have been in force for the longest times (and in
alphabetical order based on the last name of the insured for Contracts placed in
force on the same date) to the Contracts which have most recently been placed in
force; and thereafter the Trustee shall surrender Contracts in the same order of
priority as set forth above.

    

    Notwithstanding the foregoing, the
Trustee may use the assets of the trust or any Subtrust or any Participant Trust
in any other order of priority directed by the Company with the Written Consent
of Participants affected thereby.

    

    3.2.5              The
Trustee and each Participating Trust Trustee hereby appoint Company as paying
agent of each Participating Trust and this trust. Company shall advise each
Participating Trust Trustee and the Trustee monthly by the 20th of each month
regarding amounts required to be paid during the following month to each Plan's
participants and beneficiaries. The Trustee and Participating Trust Trustees
shall advise the Company as to cash available to pay such benefits. At the end
of each month, this trust on behalf of each Participating Trust, to the extent
directed by the Company, shall deposit with the Company as paying agent for this
trust and the Participating Trust, from such Participating Trust's portion of
the fund, an amount up to that necessary for the Company to pay benefits to
participants and beneficiaries during the following month on behalf of such
Participating Trust. Deposit of any such trust/Participating Trust monies with
the Company shall not constitute a return to the Company of any assets of any
Participating Trust. Company shall make payments to participants and
beneficiaries on behalf of the applicable Participating Trust. Amounts necessary
to pay benefits to participants and beneficiaries that are not provided by the
Participating Trust shall be paid by the Company. Rather than charge a payment
made pursuant to this 3.2.5 to a particular Participating Trust, the Company may
direct the Trustee to charge such payment against the Company's account
maintained hereunder.

    

    3.3              Valuations

    

    3.3.1              As
of the last day of November, 1989 and as of the last day of each month
thereafter or more frequently as agreed upon by the Company, the Participating
Trust Trustees and the Trustee (hereinafter called "Valuation Dates"), the
Trustee shall determine the fair market value of the fund in such manner as the
Trustee in its discretion shall prescribe and the Company shall approve, but in
accordance with a method consistently followed and uniformly applied. In
determining fair market value, the Trustee shall utilize and shall be entitled
to rely upon the Company, published quotations or pricing services that the
Trustee deems reliable, or in the absence thereof, upon estimates or appraisals
of value obtained from sources that the Trustee deems qualified, including
bankers, brokers, dealers or others, who are familiar with the type of
investment involved and who may be employees of the Trustee. The Trustee's
reasonable valuations shall be binding on the Participating Trusts and all
persons interested therein.

    

    3.3.2              (a)
For purposes of valuing the beneficial interests of Participating Trusts and of
the Company's account maintained hereunder, the fund shall be divided into units
without distinction between principal and income. Each unit shall represent a
proportionate undivided beneficial interest in the fund as a whole, but shall
not represent any right, title, or interest in or to any specific asset of the
fund, title to which shall be in the Trustee. All units of the fund shall be of
equal value. No unit shall have any priority or preference over any other. No
participating Trust may assign any part of its equity or interest in the
fund.

    

    (b) Upon any payment by the Company
on behalf of the Company account or by the company on behalf of a participating
Trust or by a fiduciary of a Participating Trust of the Trustee pursuant to 2.1,
the Company account or Participating Trust, as applicable, shall be deemed to
have bought, at a unit price equal to the unit value on that date, one or more
full and/or fractional units having an aggregate value equal to the amount of
the payment. The Trustee may accept property at its fair market value in lieu of
cash in payment of the purchase price of units. There shall be no limit on the
number of units the Company account or any one Participating Trust may
buy.

    

    (c) When directed by the Company or a
Plan's Committee or a Participating Trust Trustee to make a payment out of the
beneficial interest of the Participating Trust as provided in 3.2, the Trustee
shall cancel a number of full and/or fractional units having an aggregate value
equal to the amount of the payment. Any payment made out of the beneficial
interest of the Company account shall cancel a number of full and/or fractional
units having an aggregate value equal to the amount of the payment. Neither the
Company account nor any Participating Trust shall have claims to any part of the
fund in excess of the value of such account's or Participating Trust's
units.

    

    (d) At
the inception of the fund, the value of each unit shall be $10.00. Thereafter,
the Trustee shall revalue each unit as of each Valuation Date. Revaluation shall
be made by establishing as provided in 3.3.1 the fair market value of the fund
as of the close of business on the Valuation Date and dividing that value by the
total number of units of the fund outstanding on that date. Such revaluation
shall be made in accordance with a method consistently followed and uniformly
applied and shall be completed as soon as practicable after the Valuation Date.
On any Valuation Date, the Trustee may either increase or decrease the number of
outstanding units in the fund.

    

    3.              Records

    

    The Trustee shall keep complete
records on the trust fund open to the inspection by the Company and each Plan's
Committee and Participating Trust Trustees at all reasonable times. In addition
to accountings required below, the Trustee shall furnish to the Company and each
Plan's Committee and Participating Trust Trustees any information requested
about the trust fund in whatever format as the Company/Committees/Participating
Trust Trustees may reasonably request.

    

    3.5              Accountings

    

    3.5.1              The
Trustee shall furnish the Company and each Participating Trust Trustee with a
complete statement of accounts annually within 60 days after the end of the
trust year showing assets and liabilities and income and expense for the year of
the trust and each Participating Trust and each Subtrust and each Participant
Trust and shall furnish the Company and each Participating Trust Trustee with
such complete statements at such other times as the Company and/or each
Participating Trust Trustee may reasonably request. The form and content of the
statement of account shall be sufficient for the Company to include in computing
its taxable income and credits the income, deductions and credits against tax
that are attributable to the trust fund and shall be in whatever format as the
Company may reasonably request.

    

    3.5.2              The
Company and/or each Participating Trust Trustee may object to an accounting
within 180 days after it is furnished and require that it be settled by audit by
a qualified, independent certified public accountant. The auditor shall be
chosen by the Trustee from a list of at least five such accountants furnished by
the Company or Participating Trust Trustee at the time the audit is requested.
Either the Company or Participating Trust Trustee or the Trustee may require
that the account be settled by a court of competent jurisdiction, in lieu of or
in conjunction with the audit. All expenses of any audit or court proceedings,
including reasonable attorneys' fees, shall be allowed as administrative
expenses of the trust.

    

    3.5.3              If
neither the Company nor Participating Trust Trustees object to an accounting
within the time provided, the account shall be settled for the period covered by
it.

    

    3.5.4              When
an account is settled, it shall be final and binding on all parties, including
all participants and persons claiming through them.

    

    3.6              Expenses
and Fees

    

    3.6.1              The
trustee shall be reimbursed for all expenses and shall be paid a reasonable fee
fixed by agreement with the Company from time to time. No increase in the fee
shall be effective before 60 days after the Trustee gives notice to the Company
of the increase. The trustee shall notify the Company periodically of expenses
and fees.

    

    3.6.2              The
Company shall pay administrative fees and expenses. If not so paid, the fees and
expenses shall be paid from the trust fund. The Company shall reimburse the
trust fund for any fees and expenses paid out of it.

    

    

    ARTICLE
IV

    

    Liability

    

    4.1              Indemnity

    

    Subject to such limitations as may be
imposed by applicable law, the Company shall indemnify and hold harmless the
trustee from any claim, loss, liability or expense arising from any action or
inaction in administration of this trust based on direction or information from
either the Company, any Committee, any Participating Trust Trustee, any
Investment Manager or any Expert, absent willful misconduct or bad faith on the
part of the Trustee or Participating Trust Trustee.

    

    4.2              Bonding

    

    The Trustee need not give any bond or
other security for performance of its duties under this trust.

    

    

    ARTICLE
V

    

    Insolvency

    

    5.1              Determination
of Insolvency

    

    5.1.1              The
Company is "Insolvent" for purposes of this trust if:

    

    (a) The Company is unable to pay its
debts as they come due; or

    

    (b) The Company is the subject of a
pending proceeding as a debtor under the federal Bankruptcy Code (or any
successor federal statute).

    

    5.1.2              The
Company shall promptly give notice to the Trustee upon becoming Insolvent. The
Chief Executive officer of the Company and the Board (as such term is defined in
the Participating Trusts) shall be obligated to give such notice. If the Trustee
receives such notice or receives from any other person claiming to be a creditor
of the Company a written allegation that the Company is Insolvent, the Trustee
shall independently determine whether such Insolvency exists. The expenses of
such determination shall be allowed as administrative expenses of the
trust.

    

    5.1.3              The
Trustee shall continue making payments from the trust fund to participants under
any Plan while it is determining the existence of Insolvency.  Such
payments shall cease and the Trustee shall commence Insolvency

    Administration
under 5.2 upon the earlier of:

    

    (a) A
determination by the Trustee or a court of competent jurisdiction that the
Company is Insolvent; or

    

    (b) 30
days after the notice or allegation of Insolvency is received under 5.1.2,
unless the Trustee or a court of competent jurisdiction has determined that the
Company is not Insolvent since receipt of such notice or
allegation.

    

    5.1.4 The
Trustee shall have no obligation to investigate the financial condition of the
Company prior to receiving a notice or allegation of Insolvency under
5.1.2.

    

    5.2              Insolvency
Administration

    

    5.2.1              During
"Insolvency Administration", the Trustee shall hold the trust fund for the
benefit of the general creditors of the Company and make payments only in
accordance with 5.2.2. The Trustee shall continue the investment of the trust
fund in accordance with 2.2.

    

    5.2.2              The
Trustee shall make payments out of the trust fund in one or more of the
following ways:

    

    (a) To
general creditors in accordance with instructions from a court, or a person
appointed by a court, having jurisdiction over the Company's condition of
Insolvency;

    

    (b) To
any Plan's participants and beneficiaries in accordance with such instructions;
or

    

    (c) in
payment of its own fees or expenses.

    

    5.2.3              The
Trustee shall have a priority claim against the trust fund with respect to its
own fees and expenses.

    

    5.3              Termination
of Insolvency Administration

    

    5.3.1              Insolvency
Administration shall terminate when the Trustee determines that the
Company:

    

    (a) Is
not Insolvent, in response to a notice or allegation of Insolvency under 5.1.2;
or

    

    (b) Has
ceased to be Insolvent; or

    

    (c) Has
been determined by a court of competent jurisdiction not to be Insolvent or to
have ceased to be Insolvent.

    

    5.3.2              Upon
termination of Insolvency Administration under 5.3.1, the trust fund shall
continue to be held for the benefit of the participants in the
Plans.  Benefit payments due during the period of Insolvency
Administration shall be made as soon as practicable, together with interest from
the due dates at the following rates:

    

    (a) if a
Plan is deferred compensation plan or other defined contribution plan, at the
rate credited on the participant's account under such plan.

    

    (b) if a
Plan is a supplemental executive retirement plan or other defined benefits plan
or any other plan (other than a plan referred to in (a) immediately above), at a
rate equal to the interest rate fixed by the Pension Benefit Guaranty
Corporation for valuing immediate annuities in the preceding month.

    

    5.4              
Creditors' Claims During Solvency

    

    5.4.1              During
periods of Solvency the Trustee shall hold the trust fund exclusively to pay the
Plans' benefits and fees and expenses of the trust until all Plan benefits have
been paid. Creditors of the Company shall not be paid during Solvency from the
trust fund, which may not be seized by or subjected to the claims of such
creditors in any way.

    

    5.4.2              A
period of "Solvency" is any period not covered by 5.2.

    

    

    ARTICLE
VI

    

    Successor
Trustees

    

    6.1              Resignation
and Removal

    

    6.1.1              The
Trustee may resign at any time by notice to the Company and the Participating
Trust Trustees, which shall be effective in 60 days unless the Company and the
Participating Trust Trustees and the Trustee agree otherwise.

    

    6.1.2The
Trustees may be removed by the Company on 60 days' notice or shorter notice
accepted by the Trustee. After a Change in Control the Trustee may be removed
only with the Written Consent of Participants.

    

    6.1.3              When
resignation or removal is effective, the Trustee shall begin transfer of assets
to the successor Trustee immediately. The transfer shall be completed within 60
days, unless the Company extends the time limit.

    

    6.1.4              If
the Trustee resigns or is removed, the Company shall appoint a successor by the
effective date of resignation or removal under 6.1.1 or 6.1.2. After a Change in
Control a successor Trustee may be appointed only with the Written Consent of
Participants. If no such appointment has been made, the Trustee may apply to a
court of competent jurisdiction for appointment of a successor or for
instructions. All expenses of the Trustee in connection with the proceeding
shall be allowed as administrative expenses of the trust.

    

    6.2              Appoint
of Successor

    

    6.2.1              The
Company may appoint any national or state bank or trust company that is
unrelated to the Company as a successor to replace the Trustee upon resignation
or removal. The appointment shall be effective when accepted in writing by the
new Trustee, which shall have all of the rights and powers of the former
Trustee, including ownership rights in the trust assets. The former trustee
shall execute any instruments necessary or reasonably requested by the Company
or the successor trustee to evidence the transfer. After a Change in Control a
successor trustee may be appointed only with the Written Consent of
Participants.

    

    6.2.2              The
successor Trustee need not examine the records and acts of any prior Trustee and
may retain or dispose of existing trust assets, subject to Article
II.  The successor Trustee shall not be responsible for, and the
Company shall indemnify and hold harmless the successor Trustee from any claim
or liability because of, any action or inaction of any prior Trustee or any
other past event, any existing condition or any existing assets.

    

    6.3              Accountings;
Continuity

    

    6.3.1              A
Trustee who resigns or is removed shall submit a final accounting to the Company
and Participating Trust Trustees as soon as practicable. The accounting shall be
received and settled as provided in 3.5 for regular accountings.

    

    6.3.2              No
resignation or removal of the Trustee or change in identity of the Trustee for
any reason shall cause a termination of any Plan or this trust.

    

    

    ARTICLE
VII

    

    General
Provisions

    

    7.1              Interests
Not Assignable

    

    

    7.1.1              The
interest of a participant in the trust fund may not be assigned, pledged or
otherwise encumbered, seized by legal process, transferred or subjected to the
claims of the participant's creditors in any way.

    

    7.1.2              The
Company may not create a security interest in the trust fund in favor of any of
its creditors. The Trustee shall not make payments from the trust fund of any
amounts to creditors of the Company who are not Plan participants, except as
provided in 5.2.

    

    7.1.3              The
participants shall have no interests in the assets of the trust fund beyond the
right to receive payment of Plan benefits from such assets outside periods of
Insolvency Administration under 5.2. During Insolvency Administration the
participants' rights to trust assets shall not be superior to those of any other
general creditors of the Company.

    

    7.2              Amendments

    

    The Company and the Participating
Trust Trustees and the Trustee may amend this trust at any time by a written
instrument executed by all parties; provided however, this Trust Agreement may
not be amended to remove the requirement that this Trust Agreement is subject to
the provisions of each Participating Trust.

    

    7.3              Applicable
Law

    

    This trust shall be governed,
construed and administered according to the laws of Missouri, except as
preempted by ERISA.

    

    7.4              Agreement
Binding on All Parties

    

    This Trust Agreement shall be binding
upon the heirs, personal representatives, successors and assigns of any and all
present and future parties.

    

    

    7.5              Notices
and Directions

    

    Any notice or direction under this
trust shall be in writing and shall be effective when actually delivered or, if
mailed, upon receipt. Mail to a party shall be directed to the address stated
below or to such other address as the party may specify by notice to the other
parties. Notices to any Committee shall be sent to the address of the Company.
Until notice is given to the contrary, notices to the Company and Participating
Trust Trustees and the Trustee shall be addressed as follows:

    

    Company:                  Southwestern
Bell Corporation

    One Bell Center

    St. Louis, Missouri
63101-3099

    Attention:  Senior Vice
President-Finance

    and Treasurer

    

    Trustee:                  Boatmen's
Trust Company

    510 Locust Street, P.O. Box
14737

    St. Louis, Missouri
63178

    Attention:  Pension
Administration

    

    Participating
Trust            Boatmen's
Trust Company

    Trustees:                      510
Locust Street, P.O. Box 14737

          St.
Louis, Missouri 63178

        
Attention:  Pension Administration

    

    7.6              No
Implied Duties

    

    The duties of the Trustee shall be
those stated in this trust, and no other duties shall be implied.

    

    7.7              Beneficiary
(ies); Beneficiary's Benefits

    

    For purposes of this Trust Agreement,
(1) any person to whom payment under a Plan is made or is to be made in the
event of a participant's death shall be such participant's "beneficiary," (2)
Benefits under a Plan paid or to be paid to a participant's beneficiary shall be
considered a benefit paid or to be paid to the participant, as applicable, and
(3) after the death of the participant, a participant's beneficiary (ies),
collectively, shall stand in the place and stead of the participant and shall be
considered the Plan participant and treated as such, except such beneficiary
(ies) shall have no vote and shall not be counted as a participant for purposes
of determining the Written Consent of Participants pursuant to 1.2.6 of any
participating Trust.

    

    7.8              Gender,
Singular and Plural

    

    All pronouns and any variations
thereof shall be deemed to refer to the masculine or feminine, as the identity
of the person or persons may require. As the context may require, the singular
may be read as the plural and

    the
plural as the singular.

    

    

    ARTICLE
VIII

    

    INSURER

    

    8.1              Insurer
Not a Party

    

    An Insurer shall not be deemed to be
a party to this trust, and its obligation shall be measured and determined
solely by the terms of its Contracts and other agreements executed by
it.

    

    8.2              Authority
of Trustee

    

    An Insurer shall accept the signature
of the Trustee to any documents or papers executed in connection with its
Contracts. The signature of the Trustee shall be conclusive proof to the Insurer
that the person on whose life an application is being made is eligible to have
such Contract issued on his life and is eligible for a Contract of the type and
amount requested.

    

    8.3              Contract
Ownership

    

    An Insurer shall deal with the
Trustee as the sole and absolute owner of the trust's interests in its Contracts
and shall have not obligation to inquire whether any action or failure to act on
the part of the Trustee is in accordance with our authorized by the terms of a
Plan or a Participating Trust or this trust.

    

    8.4              Limitation
of Liability

    

    An Insurer shall be fully discharged
from any and all liability for any action taken or any amount paid in accordance
with the direction of the Trustee and shall have no obligation to see to the
proper application of the amounts so paid. The Insurer shall have no liability
for the operation of this trust or a Plan, whether or not in accordance with
their terms and provisions.

    

    8.5              Change
of Trustee

    

    An Insurer shall be fully discharged
from any and all liability for dealing with a party or parties indicated on its
records to be the Trustee until such time as it shall receive at its home office
written notice of the appointment and qualification of a successor
Trustee.

    

    IN WITNESS WHEREOF, the Company and
participating Trust Trustees and the Trustee have caused this Agreement to be
executed by their respective duly authorized officers on the date set forth
below.

    

    

    Company: SOUTHWESTERN BELL
CORPORATION

    

    Attest:                            By:  /s/
C.C. Carr

    Cassandra C. Carr

    Ann
Goddard                                Its
Senior Vice President-Finance

    Vice
President                                And
Treasurer

    And
Secretary

    Executed:  11-3,
1989

    

    Trustee:  BOATMEN'S TRUST
COMPANY

    

    Attest:                            By:  /s/
Lyle Brizendine

    Lyle W. Brizendine

    Assistant
Secretary                                Its
Senior Vice President

    

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Senior Management
Deferred

    Compensation Plan of 1988

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Senior Management
Deferred

    Compensation Plan of 1988 (Early
Payment Option)

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

                          Boatmen's
Trust Company as Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Senior Management
Deferred

    Compensation Plan

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:   11-6,
1989

    

                          Boatmen's
Trust Company as Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Management Deferred
Compensation

    Plan of 1988

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Management Deferred
Compensation Plan

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Compensation Deferral
Plan

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Senior Management
Supplemental

    Retirement Income Plan

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

    Boatmen's Trust Company as
Participating Trust

    Trustee pursuant to Trust Agreement for
Southwestern

    Bell Corporation Management Pension
Plan (Benefits

    In Excess of Code ss. 415
Limitations)

    

    Attest:                            By:  /s/
Lyle Brizendine

    Assistant
Secretary                                         Lyle
W. Brizendine

    Executed:  11-6,
1989

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    County of
St. Louis)

    

    On this 3rd day of November, in the
year 1989, before me personally came Cassandra C. Carr, to me known, who, being
by me duly sworn, did depose and say that she resides at 1700 Mason Knoll Road,
St. Louis, Missouri 63131: that she is Senior Vice President-Finance and
Treasurer of Southwestern Bell Corporation, the corporation described in and
which executed the above instrument; that she knows the corporate seal of said
corporation; that the seal was affixed by authority of the Board of Directors of
said corporation, and that she signed her name thereto by like
authority.

    

    

    

    /s/ Barbara J. Salen

    BARBARA J. SALEN

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS COUNTY

    MY COMMISSION EXP AUG. 19,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 3rd day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Trustee; that he knows the corporate seal of said corporation;
that the seal was affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Senior Management Deferred Compensation Plan of
1988; that he knows the corporate seal of said corporation; that the seal was
affixed by authority of the Board of Directors of said corporation, and that he
signed his name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Senior Management Deferred Compensation Plan of
1988 (Early Payment Option); that he knows the corporate seal of said
corporation; that the seal was affixed by authority of the Board of Directors of
said corporation, and that he signed his name thereto by like
authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Senior Management Deferred Compensation Plan; that
he knows the corporate seal of said corporation; that the seal was affixed by
authority of the Board of Directors of said corporation, and that he signed his
name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Management Deferred Compensation Plan of 1988;
that he knows the corporate seal of said corporation; that the seal was affixed
by authority of the Board of Directors of said corporation, and that he signed
his name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Management Deferred Compensation Plan; that he
knows the corporate seal of said corporation; that the seal was affixed by
authority of the Board of Directors of said corporation, and that he signed his
name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Compensation Deferral Plan; that he knows the
corporate seal of said corporation; that the seal was affixed by authority of
the Board of Directors of said corporation, and that he signed his name thereto
by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Senior Management Supplemental Retirement Income
Plan; that he knows the corporate seal of said corporation; that the seal was
affixed by authority of the Board of Directors of said corporation, and that he
signed his name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

    

    

    Acknowledgments

    

    

    State of
Missouri)

    ss.

    City of
St. Louis)

    

    On this 6th day of November, in the
year 1989, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he resides at 1710 Connemara, St.
Louis, Missouri 63021: that he is Senior Vice President of Boatmen's Trust
Company, the corporation described in and which executed the above instrument in
the capacity as Participating Trust Trustee pursuant to Trust Agreement for
Southwestern Bell Corporation Management Pension Plan (benefits In Excess of
Code ss. 415 Limitations); that he knows the corporate seal of said corporation;
that the seal was affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

    

    

    

    /s/Susan M. McIntosh

    SUSAN M. MCINTOCH

    NOTARY PUBLIC STATE OF
MISSOURI

    ST. LOUIS CITY

    MY COMMISSION EXP APR. 13,
1993

    

    

     

    FIRST
AMENDMENT TO TRUST AGREEMENT

    Effective
August 1, 1995

    

    This Amendment (the "First
Amendment"), amends the MASTER TRUST AGREEMENT FOR SOUTHWESTERN BELL CORPORATION
DEFERRED COMPENSATION PLANS AND OTHER EXECUTIVE BENEFIT PLANS (the "Trust
Agreement"), previously made and entered into by and between SBC COMMUNICATIONS
INC., a Delaware corporation (the "Company"), formerly known as Southwestern
Bell Corporation, BOATMEN'S TRUST COMPANY, a Missouri corporation (the
"Trustee"), and BOATMEN'S TRUST COMPANY as trustee of each Participating Trust
in the Trust Agreement (BOATMEN'S TRUST COMPANY acting in its capacity as
trustee of each Participating Trust is hereinafter referred to as the respective
Participating Trust's "Participating Trust Trustee"), which Trust Agreement is
incorporated herein by this reference.

    

    WHEREAS, the Company and the
Participating Trust Trustees have established with the Trustee a trust in
accordance with the terms and conditions of the Trust Agreement,
and

    

    WHEREAS, the Trustee has accepted the
trust established under the Trust Agreement and has agreed to hold, IN TRUST,
all monies and other property transferred to it thereunder for the uses and
purposes and upon the terms and conditions set forth therein, and

    

    WHEREAS, the Trustee has further
agreed to discharge and perform fully and faithfully all of the duties and
obligations imposed upon it under the Trust Agreement, and

    

    WHEREAS, the Company wishes to amend
the Trust Agreement consistent with the Amendment provision thereof, to reflect
the recent name change of the Company from Southwestern Bell Corporation to SBC
Communications Inc., and

    

    WHEREAS, the  Participating
Trust Trustees and the Trustee agree to
the  Amendment  contained herein:

    

    NOW, THEREFORE, the Company and the
Participating Trust Trustees and the Trustee hereby agree as
follows:

    

    (1) Effective August 1, 1995, the
Trust Agreement shall be and hereby is renamed the "MASTER TRUST AGREEMENT FOR
SBC COMMUNICATIONS INC. DEFERRED COMPENSATION PLANS AND OTHER EXECUTIVE BENEFIT
PLANS"; and, coincident with such change, the words "Southwestern Bell
Corporation" wherever found in the Trust Agreement shall be and hereby are
replaced with the words "SBC Communications Inc." and all references in the
Trust Agreement to Southwestern Bell Corporation shall mean and shall be
construed as references to SBC Communications Inc.

    

    (2) Except as modified by this First
Amendment, all other terms and provisions of the Trust Agreement remain in full
force and effect.

    

    IN WITNESS WHEREOF, the Company and
the Participating Trust Trustees and the Trustee have caused this First
Amendment to be executed by their respective duly authorized officers on the
date set forth below.

    

    

    Company:  SBC
COMMUNICATIONS INC.

    Atttest:              By:  /s/
D. E Kiernan

    Its Senior Vice
President,

    /s/
Judith M.
Sahm                                         
Treasurer & Chief Financial

    Secretary                                         Officer

    

    Executed: 9/22, 1995

    

    

    Trustee:  BOATMAN'S TRUST
COMPANY

    

    Attest:              By:
/s/ Lyle W. Brizendine

    Its Executive Vice
President

    /s/ Paul
J. Skyle

    Assistant
Secretary                                         Executed:  9/27,
1995

    

    

    BOATMEN'S TRUST COMPANY
as

    Participating Trust Trustee pursuant
to the

    Trust Agreement for each of the
following:

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    OF 1988

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    OF 1988 (EARLY PAYMENT
OPTION)

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    

    · SBC
COMMUNICATIONS INC. MANAGEMENT

    DEFERRED COMPENSATION PLAN OF
1988

    

    · SBC
COMMUNICATIONS INC. MANAGEMENT

    DEFERRED COMPENSATION
PLAN

    

    · SBC
COMMUNICATIONS INC. COMPENSATION

    DEFERRAL PLAN

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT SUPPLEMENTAL
RETIREMENT

    INCOME PLAN

    

    · SBC
COMMUNICATIONS INC. PENSION BENEFIT

    PLAN - NONBARGAINED PROGRAM
(BENEFITS

    IN EXCESS OF CODE SECTION
415

    LIMITATIONS)

    

    · SBC
COMMUNICATIONS INC. PENSION MAKE-UP

    DUE TO DEFERRED
COMPENSATION

    PARTICIPATION

    

    

    Attest:                                         By:
/s/ Lyle W. Brizendine

    Its Executive Vice
President

    /s/ Paul
J. Skyle

    Assistant
Secretary                                                       Executed:  9/27,
1995

    

    

    

    

    ACKNOWLEDGEMENTS

    

    

    State of
Texas)

    ss

    City of
San Antonio)

    

    

    

    On this 22nd day of September, in the
year 1995, before me personally came Donald E. Kiernan, to me known, who, being
by me duly sworn, did depose and say that he is Senior Vice President, Treasurer
& Chief Financial Officer of SBC Communications Inc., the corporation
described in and which executed the above instrument; that he knows the
corporate seal of said corporation; that the seal was affixed by authority of
the Board of Directors of said corporation, and that he signed his name thereto
by like authority.

    

    

    Vicki
Brehm                               /s/
Vicki Brehm

    Notary
Public

    State of
Texas

    My Comm.
Exp. Aug. 9 1997

    

    

    State of
Missouri)

    ss

    City of
St. Louis)

    

    On this 27th day of September, in the
year 1995, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he is Executive Vice President of
Boatmen's Trust Company, the corporation described in and which executed the
above instrument in the capacity as Trustee; that he knows the corporate seal of
said corporation; that the seal was affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

    

    

    /s/ Susan L. Sehrt

    

    Susan L. Sehrt

    Notary Public-State of
Missouri

    St. Louis County

    My Commission Expires March 31,
1996

    

    

    

    

    ACKNOWLEDGMENTS

    

    

    State of
Missouri)

    ss

    City of
St. Louis)

    

    

    On this 27th day of September, in the
year 1995, before me personally came Lyle W. Brizendine, to me known, who, being
by me duly sworn, did depose and say that he is Executive Vice President of
Boatmen's Trust Company, the corporation described in and which executed the
above instrument in the capacity as Participating Trust Trustee pursuant to each
Participating Trust Trust Agreement; that he knows the corporate seal of said
corporation; that the seal was affixed by authority of the Board of Directors of
said corporation, and that he signed his name thereto by like
authority.

    

    

    /s/ Susan L. Sehrt

    Susan L. Sehrt

    Notary Public-State of
Missouri

    St. Louis County

    My Commission Expires March 31,
1996

    

    

     

    SECOND
AMENDMENT TO TRUST AGREEMENT

    Effective
November 1, 1999

    

    

    This Amendment (the "Second
Amendment"), amends the MASTER TRUST AGREEMENT FOR SBC COMMUNICATIONS INC.
DEFERRED COMPENSATION PLANS AND OTHER EXECUTIVE BENEFIT PLANS (the "Trust
Agreement"), between SBC COMMUNICATIONS INC., a Delaware corporation (the
"Company"), formerly known as Southwestern Bell Corporation, BOSTON SAFE DEPOSIT
AND TRUST COMPANY, successor Trustee, a Massachusetts trust company and
wholly-owned indirect subsidiary of Mellon Bank Corporation (the "Trustee"), and
BOSTON SAFE DEPOSIT AND TRUST COMPANY as successor trustee of each Participating
Trust in the Trust Agreement (BOSTON SAFE DEPOSIT AND TRUST COMPANY acting in
its capacity as the successor trustee of each Participating Trust is hereinafter
referred to as the respective Participating Trust's "Participating Trust
Trustee"), which Trust Agreement is incorporated herein by this
reference.

    

    WHEREAS, the Company and the
Participating Trust Trustees are parties to a trust with the Trustee in
accordance with the terms and conditions of the Trust Agreement,
and

    

    WHEREAS, the Trustee has accepted the
trust established under the Trust Agreement and has agreed to hold, IN TRUST,
all monies and other property transferred to it thereunder for the uses and
purposes and upon the terms and conditions set forth therein, and

    

    WHEREAS, the Trustee has further
agreed to discharge and perform fully and faithfully all of the duties and
obligations imposed upon it under the Trust Agreement, and

    

    WHEREAS, the Company wishes to amend
the Trust Agreement consistent with the Amendment provision thereof, to permit
the payment of trustee, actuary and investment manager fees and expenses from
funds allocated to the Company's account maintained under the Trust Agreement,
i.e., from funds not allocated to any Participating Trust, and

    

    WHEREAS,  the  Participating  Trust
Trustees and the Trustee agree to the
Amendment  contained

    herein:

    

    NOW, THEREFORE, the Company and the
Participating Trust Trustees and the Trustee hereby agree as
follows:

    

    (1) Effective November 1, 1999, 3.6.2
of the Trust Agreement shall be and hereby is replaced by the
following:

    

    3.6.2              The
Company shall be responsible for the payment of the fees and expenses of this
trust, including but not limited trustee fees, actuary fees and investment
manager fees. The Company shall pay such fees and expenses or may direct
the  Trustee to pay such fees out of funds allocated to the Company's
account maintained under this trust, i.e., from funds not allocated to any
Participating Trust.

    

    (2) Except as modified by this Second
Amendment, all other terms and provisions of the Trust Agreement remain in full
force and effect.

    

    IN WITNESS WHEREOF, the Company and
Participating Trust Trustees and the Trustee have caused this Second Amendment
to be executed by their respective duly authorized officers on the date set
forth below.

    

    

    

    Company: SBC COMMUNICATIONS
INC.

    

    Attest:

    By:  /s/ D.E.
Kiernan

    Its Senior Executive

    Vice President and

    Chief Financial Officer

    /s/
Judith M. Sahm

    Secretary

    

    Executed:  November 2,
1999

    

    Trustee:  BOSTON SAFE
DEPOSIT AND TRUST

    COMPANY

    

    By:  /s/ Douglas M.
Cook

    Attest:                            Its
First Vice President

    

    

    /s/
Kimberly A. Carr

    Assistant
Secretary                                         Executed:  November
19, 1999

    

    

    

    

    

    

    BOSTON
SAFE DEPOSIT AND TRUST COMPANY as

    Participating
Trust Trustee pursuant to the

    Trust
Agreement for each of the following:

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    OF 1988

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    OF 1988 (EARLY PAYMENT
OPTION)

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT DEFERRED COMPENSATION
PLAN

    

    · SBC
COMMUNICATIONS INC. MANAGEMENT

    DEFERRED COMPENSATION PLAN OF
1988

    

    · SBC
COMMUNICATIONS INC. MANAGEMENT

    DEFERRED COMPENSATION
PLAN

    

    · SBC
COMMUNICATIONS INC. COMPENSATION

    DEFERRAL PLAN

    

    · SBC
COMMUNICATIONS INC. SENIOR

    MANAGEMENT SUPPLEMENTAL
RETIREMENT

    INCOME PLAN

    

    · SBC
COMMUNICATIONS INC. PENSION BENEFIT

    PLAN-NONBARGAINED PROGRAM (BENEFITS
IN

    EXCESS OF CODE SECTION 415
LIMITATIONS)

    

    · SBC
COMMUNICATIONS INC. PENSION MAKE-UP

    DUE TO DEFERRED
COMPENSATION

    PARTICIPATION

    

    · RESTATED
TRUST NO. 3 FOR PACIFIC TELESIS

    GROUP EXECUTIVE SUPPLEMENTAL
PENSION

    BENEFITS

    

    By: /s/ Douglas M. Cook

    Its First vice President

    

    

    Attest:

    

    /s/
Kimberly A.
Carr                                                       Executed:  November
19, 1999

    Assistant
Secretary

    

    

    

    ACKNOWLEDGEMENTS

    

    

    

    State of
Texas)

    ss

    County of
Bexar)

    

    On this 1st day of November, in the
year 1999, before me personally came Donald E. Kiernan, to me known, who being
by me duly sworn, did depose and say that he is Senior Executive Vice President
and Chief Financial Officer of SBC Communications Inc., the corporation
described in and which executed the above instrument; that he knows the
corporate seal of said corporation; that the seal was affixed by authority of
the Board of Directors of said corporation, and that he signed his name thereto
by like authority.

    

    

    /s/ Linda J. Snoga

    Notary Public, State of
Texas

    My Commission Expires

    January 21, 2002

    

    

    

    ACKNOWLEDGEMENTS

    

    Commonwealth
of Massachusetts)

    ss

    County of
Middlesex)

    

    On this 19th day of November, in the
year 1999, before me personally came Douglas M. Cook, to me known, who being by
me duly sworn, did depose and say that he is First Vice President of Boston Safe
Deposit and Trust Company, the corporation described in and which executed the
above instrument in the capacity as Trustee; that he knows the corporate seal of
said corporation; that the seal was affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

    

    

    

    /s/ Patricia S. Smith

    My Commission Expires

    May 10, 2002

    

    

    

    ACKNOWLEDGEMENTS

    

    

    Commonwealth
of Massachusetts)

    ss

    County of
Middlesex)

    

    

    On this 19th day of November, in the
year 1999, before me personally came Douglas M. Cook, to me known, who, being by
me duly sworn, did depose and say that he is First Vice President of Boston Safe
Deposit and Trust Company, the corporation described in and which executed the
above instrument in the capacity as Participating Trust Trustee pursuant to each
Participating Trust Trustee Agreement; that he knows the corporate seal of said
corporation; that the seal was affixed by authority of the Board of Directors of
said corporation, and that he signed his name thereto by like
authority.

    

    /s/ Patricia S. Smith

    My Commission Expires

    May 10, 2002

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