Document:

ex10kk.htm

    Exhibit
      10-kk

    

    

    BELLSOUTH
      CORPORATION

    EXECUTIVE
      INCENTIVE AWARD DEFERRAL PLAN

    (as
      amended and restated effective January 1, 2008)

    

    

    SECTION
      1. STATEMENT OF PURPOSE

    

    The
      purpose of the Executive Incentive
      Award Deferral Plan is to permit the deferral of all or a portion of an
      Executive's Short and/or Long Term Incentive Awards. The objective of the Plan
      is to provide a means of postponing the receipt of income until some future
      time
      (e.g., retirement, etc.).  Notwithstanding the foregoing, no deferrals
      will be permitted under this Plan with respect to awards for services performed
      in years after 1997.  The Plan also provides for certain additional
      payments in recognition of reduced company matching contributions to Savings
      Plans on behalf of Executives under circumstances described herein; though
      no
      additional payments are due after 2008.

    

    SECTION
      2. DEFINITIONS

    

    1.   The
      word "Plan"
      shall mean the BellSouth Corporation Executive Incentive Award Deferral
      Plan.

    

    2.   The
      word "Company"
      shall mean the BellSouth Corporation, or its successors.

    

    3.   The
      words "Chairman
      of the Board," "President" and "Board of Directors" or "Board" shall mean the
      Chairman of the Board of Directors, President and Board of Directors,
      respectively, of the Company.

    

    4.   The
      term
      "Executive" or "eligible employee" shall mean an employee of the Company (or
      a
      participating subsidiary of the Company) who holds a position which the Board
      of
      Directors has designated to be within that company's Executive Management
      Group.

    

    SECTION
      3. ADMINISTRATION

    

    1.   The
      senior Human
      Resources officer of the Company (the "Responsible Officer") shall be
      responsible for administration of the Plan.

    

    2.   The
      Responsible
      Officer shall have the exclusive responsibility and complete discretionary
      authority to control the operation and administration of the Plan, with all
      powers necessary to properly carry out such responsibility, including without
      limitation the power (i) to interpret the terms of the Plan including the power
      to construe ambiguous or uncertain terms, (ii) to establish reasonable
      procedures  with which participants must comply to exercise any right
      established  under the Plan, (iii) to determine status, coverage and
      eligibility for, and the amount of, benefits, (iv) to resolve all questions
      that
      arise in the operation and administration of the Plan, and (v) to delegate
      his
      responsibilities hereunder to any person or entity. All actions or
      determinations of the Responsible Officer (or his delegate) shall (subject
      to
      Section 3.3) be final, conclusive and binding on all persons. The rights and
      duties of participants and other persons and entities are subject to, and
      governed by, such acts of administration, interpretations, procedures, and
      delegations.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.   Claims
      for benefits
      under the Plan may be filed with the Responsible Officer (or his delegate)
      on
      forms or in such other written documents as the Responsible Officer may
      prescribe.  The Responsible Officer shall furnish to the claimant
      written notice of the disposition of a claim within 90 days after the
      application therefor is filed.  In the event the claim is denied, the
      notice of the disposition of the claim shall provide the specific reasons for
      the denial, citations of the pertinent provisions of the Plan, and where
      appropriate an explanation as to how the claimant can perfect the claim and/or
      submit the claim for review.

    

    Any
      eligible employee who has been
      denied a benefit shall be entitled, upon request to the Responsible Officer,
      to
      appeal the denial of the claim.  The claimant (or his duly authorized
      representative) may review pertinent documents related to the Plan and in the
      Responsible Officer's possession in order to prepare the appeal.  The
      request for review, together with written statement of the claimant's position
      must be filed with the Responsible Officer no later than 60 days after receipt
      of the written notification of denial of a claim provided for in the preceding
      paragraph.  The Responsible Officer's decision shall be made within 60
      days following the filing of the request for review.   If
      unfavorable, the notice of the decision shall explain the reasons for denial
      and
      indicate the provisions of the Plan or other documents used to arrive at the
      decision.

    

    

    SECTION
      4. BENEFITS

    

    1.   ELIGIBILITY

    

    An
      employee of the Company or a
      subsidiary of the Company which shall have elected to participate in the Plan
      (each such company sometimes being referred to herein as a "Participating
      Company") who is eligible for an award under his company's Short Term Incentive
      Plan and/or who has been granted an award under the BellSouth Corporation
      Executive Long Term Incentive Plan shall be eligible to participate in the
      Plan.  In addition, each person who is a "Participant" as that term is
      defined in Section 4A.2 of the Plan shall be eligible for benefits as described
      in Section 4A.

    

    2.   PARTICIPATION

    

    (a)
      Prior to the beginning of any
      calendar year, an eligible employee may elect to participate in the Plan by
      directing that all or part of the awards under his company's Short Term
      Incentive Plan and/or under the BellSouth Corporation Executive Long Term
      Incentive Plan which the employee's company would otherwise pay currently to
      the
      employee in which calendar year and subsequent calendar years shall be credited
      to a deferred account subject to the terms of the Plan. In no event, however,
      shall the part of an award under either plan credited to a deferred account
      subject to the terms of the Plan.  In no event, however, shall the
      part of an award under either plan credited during any calendar year be less
      than $1,000 (based on a valuation at the time the award would otherwise be
      paid).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
      Such an election to participate in
      the Plan shall be in the form of a document executed by the employee and filed
      with the employee's company.  An election related to awards otherwise
      payable currently in any calendar year shall become irrevocable on the last
      day
      prior to the beginning of the preceding calendar year.

    

    (c)
      An election shall continue until
      the employee terminates or modifies such election by written notice, or until
      the employee ceases to be employed by his company (other than a transfer to
      another company whose employees are eligible to participate in the Plan), in
      which case the employee shall be considered to have terminated the
      election.  Any such termination or modification shall become effective
      as of the end of the calendar year in which such notice is given with respect
      to
      all awards for which irrevocable elections regarding deferral have not been
      made.

    

    (d)
      An eligible employee who has filed
      a termination of election may thereafter again file an election to participate
      with respect to awards otherwise payable in calendar years subsequent to the
      filing of such election.

    

    (e)
      For the purpose of this Section 4,
      an election made by an eligible employee under the comparable provisions of
      the
      predecessor Bell System Senior Management Incentive Award Deferral Plan ("the
      Predecessor Plan") shall be considered as an election made under this Section
      4,
      and the reference to short term incentive awards in such an election under
      the
      Predecessor Plan shall be considered to refer to awards under the Short Term
      Incentive Plan of any company participating in this Plan, and the reference
      to
      long term incentive awards in such an election shall be considered to refer
      to
      awards under the BellSouth Corporation Long Term Incentive Plan.

    

    3.   DEFERRED
      ACCOUNTS

    

    (a)
      Deferred amounts related to awards
      which would otherwise have been distributed in cash by a Participating Company
      shall be credited to the employee's account either (i) as cash, as described
      in
      Section 4.3(b), or (ii) as deferred Company shares, as described in Section
      4.3(c), as elected by the employee in the election form described in Section
      4.2(b).  Deferred amounts related to awards which would otherwise have
      been distributed in Company common shares by a Participating Company shall
      be
      credited to the employee's account as deferred Company shares, as described
      in
      Section 4.3(c).  The crediting of deferred amounts to an employee's
      account either as cash or deferred Company shares shall be for the sole purpose
      of determining the rate of return to be credited to the employee's account,
      and
      shall not be treated or interpreted in any manner whatsoever as a requirement
      or
      direction to actually invest assets in Company shares or any other investment
      media.  The Plan, as an unfunded, nonqualified deferred compensation
      plan, shall not have any actual investment of assets relative to the benefits
      or
      accounts hereunder.

    

    (b)
      Deferred amounts credited to the
      employee's account as cash shall bear interest from the date the awards would
      otherwise have been paid.   The interest credited to the account
      will be compounded at the end of each calendar quarter, and the annual rate
      of
      interest applied at the end of any calendar quarter shall be determined by
      the
      Board of Directors from time to time.  In addition, if the employee's
      account under the Predecessor Plan has been transferred to an account under
      this
      Plan as of January 1, 1984 effective date of this Plan, then the employee's
      account under this Plan shall be credited as of such date with the amount
      credited to the employee's account under the Predecessor Plan as of December
      31,
      1983, and such amount shall bear interest in accordance with the preceding
      sentence from the effective date of the Plan.  An employee's account
      under the Predecessor Plan shall be transferred to an account under this Plan,
      if the employee is employed by a Participating Company on the effective date
      of
      the Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
      To the extent that an employee
      elects to have deferred amounts credited to his or her account as deferred
      Company shares, such employee's account shall be credited as of the date(s)
      on
      which the related award(s) would otherwise have been distributed in cash, with
      the number of shares of Company stock equal to the number of such shares that
      could have been purchased with the dollar amount of such award(s) at the average
      of the high and low sales prices of Company common shares on the New York Stock
      Exchange ("NYSE") for the last day of the month preceding the day on which
      the
      related award(s) would otherwise have been distributed in cash or, if on such
      date the NYSE is not operating and open to the public for trading (a "Business
      Day"), on the Business Day most recently preceding such day.  Deferred
      amounts relating to awards which would otherwise have been distributed in
      Company common shares shall be credited to the employee's account with an
      equivalent number of deferred Company shares.

    

    Deferred
      amounts credited to the
      employee's account as deferred Company shares shall also be credited on each
      dividend payment date for Company shares with an amount equivalent to the
      dividend payable on the number of Company common shares equal to the number
      of
      deferred Company shares in the employee's account on the record date for such
      dividend.  Such amount shall then be converted to a number of
      additional deferred Company shares determined by dividing such amount by the
      price of Company common shares, as determined in the following
      sentence.  The price of Company common shares related to any dividend
      payment date shall be the average of the daily high and low sales prices of
      Company common shares on the NYSE for the period of five Business Days ending
      on
      such dividend payment date, or the period of five Business Days immediately
      preceding such dividend payment date if the dividend payment date is not a
      Business Day.

    

    (d)
      In the event of any change in
      outstanding Company common shares by reason of any stock dividend or split,
      recapitalization, merger, consolidation, combination or exchange of shares
      or
      other similar corporate change, the Board of Directors shall make such
      adjustments, if any, that it deems appropriate in the number of deferred Company
      shares then credited to employees' accounts. Any and all such adjustments shall
      be conclusive and binding upon all parties concerned.

    

    4.   DISTRIBUTION

    

    (a)
      At the time an eligible employee
      makes an election to participate in the Plan, the employee shall also make
      an
      election with respect to the distribution (during the employee's lifetime or
      in
      the event of the employee's death) of the amounts credited to the employee's
      deferred account.  Such an election related to awards otherwise
      payable currently in any calendar year shall become irrevocable on the last
      day
      prior to the beginning of such calendar year.  Amounts related to
      awards which would have been distributed in cash in the absence of a deferral
      election shall be distributed in cash.  In the case of amounts
      credited to the employee's account as deferred Company shares, the amount of
      the
      cash distribution shall be determined by multiplying the number of deferred
      Company shares in the employee's account by the price of Company common
      shares.  For purposes of the preceding sentence, the price of Company
      common shares shall be the average of the daily high and low sales prices of
      Company common shares on the NYSE for the last Business Day of the month
      preceding the payment date (described in Section 4(b)).  Amounts
      related to awards which would have been distributed in Company common shares
      in
      the absence of a deferral shall be distributed in the form of an equal number
      of
      Company common shares.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
      An employee may elect to receive
      the amounts credited to the employee's account in one payment or in some other
      number of approximately equal annual installments (not exceeding
      20).  The first installment (or the single payment of the employee has
      so elected) shall be paid as soon as administratively practicable following
      the
      first day of the calendar quarter next following the earlier of (1) the end
      of
      the month in which the employee attains the age specified in such election
      (not
      earlier than age 55), or (2) the end of the month in which the employee retires
      from a Participating Company, or otherwise terminates employment with any such
      company (except for a transfer to another such company).

    

    (c)
      Notwithstanding an election
      pursuant to this Section 4, Paragraph 4(b), the entire amount then credited
      to
      the employee's account shall be paid immediately in a single payment if an
      employee is discharged for cause by his company, or if an employee otherwise
      ceases to be employed by his company and becomes a proprietor, officer, partner,
      employee, or otherwise becomes affiliated with any business that is in
      competition with Company or any of its subsidiaries, or becomes employed by
      a
      governmental agency having jurisdiction over the activities of Company or any
      of
      its subsidiaries.

    

    (d)
      An employee may elect that, in the
      event the employee should die before full payment of all amounts credited to
      the
      employee's account, the balance of the deferred amounts shall be distributed
      in
      one payment or in some other number of approximately equal annual installments
      (not exceeding 10) to the beneficiary or beneficiaries designated in writing
      by
      the employee, or if no designation has been made, to the estate of the employee
      in a lump sum. The first installment (or the single payment if the employee
      has
      so elected) shall be paid as soon as administratively practicable following
      the
      first day of the calendar quarter next following the month of
      death.

    

    (e)
      Installments subsequent to the
      first installment to the employee, or to a beneficiary or to the employee's
      estate, shall be paid as soon as administratively practicable following the
      first day of the applicable calendar quarter in each succeeding calendar year
      until the entire amount credited to the employee's deferred account shall have
      been paid.  Deferred amounts held pending distribution shall continue
      to be credited with interest or additional deferred Company shares,
      as  applicable, determined in accordance with this Section 4,
      Paragraph 3(a), (b) and (c).

    

    (f)
      The obligation to make distribution
      of deferred amounts credited to an employee's account during any calendar year
      plus the additional amounts credited on such deferred amounts pursuant to this
      Section 4, Paragraph 3(a), (b) and (c) shall be borne by the Participating
      Company which otherwise would have paid the related award
      currently.  However, the obligation to make distribution with respect
      to deferred amounts which are related to amounts credited to an employee's
      account as of the effective date of the Plan, pursuant to this Section 4
      Paragraph 3(a), and with respect to which no Participating Company would
      otherwise have paid the related award currently, shall be borne by the
      Participating Company which employed the employee on the effective date of
      the
      Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g)
      For the purposes of this Section 4,
      an election described in Paragraph 4(a) or a beneficiary designation described
      in Paragraph 4(d) made under the comparable provision of the Predecessor Plan
      shall be considered as an election or beneficiary designation, respectively,
      made under this Section 4.

    

    SECTION
      4A. ADDITIONAL PAYMENT.

    

    1.   Each
      Participating
      Company shall pay to each Participant, as defined below, an amount determined
      under this Section at those times and in the manner prescribed in this Section
      notwithstanding any other obligation of the Participating Company to any person
      under the other provisions of this Plan.

    

    2.   For
      purposes of
      this Section:

    

    A.   "Participant"
      means
      any person who participates in the Nonqualified Plan in a Plan Year and any
      Executive who participates in a Savings Plan in a Plan Year.

    

    In
      addition to the above requirements, effective January 1, 2008, a Participant
      must have been designated as an Executive prior to January 1, 2008.

    

    B.   "Plan
      Year" means
      each calendar year, but for the first Plan Year means February 1, 1985 through
      December 31, 1985.

    

    C.   "Computation
      Date"
      means December 31 of each Plan Year.

    

    D.   "Payment
      Date"
      means (i) with respect to amounts accrued under this Section 4A prior to May
      1,
      1994, the second anniversary of each Computation Date, and (ii) with respect
      to
      amounts accrued under this Section 4A after April 30, 1994 and prior to January
      1, 2008, the day in each month on which Participants' regular monthly paychecks
      are delivered, and (iii) with respect to amounts accrued under this Section
      4A
      on or after January 1, 2008 and prior to January 1, 2009, the payroll payment
      date immediately following the last day of the month after the close of each
      calendar quarter (e.g., May 5, 2008 for amounts accrued January – March
      2008).

    

    E.   "Nonqualified
      Plan"
      means the BellSouth Corporation Nonqualified Deferred Compensation
      Plan.

    

    F.   "Savings
      Plan"
      means the BellSouth Retirement Savings Plan (the "RSP") and any predecessor
      or
      successor plan.

    

    3.   (A)
      For periods
      prior to May 1, 1994, each Participating Company shall pay to each Participant
      on each Payment Date an amount equal to:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (1)
      The dollar amount, if any, actually
      deferred by the Participant pursuant to the Nonqualified Plan in the Plan Year
      (or, in the case of Plan Year 1994, the period prior to May 1, 1994) in which
      the Computation Date occurs, notwithstanding the amount that the Participant
      elected to defer pursuant to that plan, if different, plus the amount, if any,
      equal to the remaining base salary paid to the Participant during the Plan
      Year
      (or, in the case of Plan Year 1994, the period prior to May 1, 1994) in excess
      of the amount of such Participant's compensation which may be taken into account
      under Section 401(a)(17) of the Internal Revenue Code of 1986, as amended (the
      "Code"), or any successor provision, plus, in the case of Participants who
      participate in and make the maximum allowable contribution to the RSP in a
      Plan
      Year (or, in the case of Plan Year 1994, the period prior to May 1, 1994),
      the
      amount of base salary (excluding any base salary taken into account under the
      preceding provisions of this paragraph 4A.3(A)(l)) paid to the Participant
      during the Plan Year in excess of the amount of base salary that would produce
      the maximum contribution to the RSP for a Participant who contributed to the
      RSP
      six percent (6%) of his or her Eligible Compensation, as that term or its
      replacement is defined in the RSP, for the Plan Year (or, in the case of Plan
      Year 1994, the period prior to May 1, 1994),

    

    (2)
      multiplied by the lesser of six
      percent (6%) or the percentage of such Participant's Salary or Eligible
      Compensation, as those terms or their replacements are defined in the Savings
      Plan, which the Participant actually caused to be contributed as before-tax
      or
      after-tax contributions to the Savings Plans in the Plan Year in which the
      Computation Date occurs (or, in the case of Plan Year 1994, the period prior
      to
      May 1, 1994), notwithstanding the amount elected to be contributed to the
      Savings Plans, if different; provided, however, that Participants who make
      the
      maximum allowable contribution to a Savings Plan in a Plan Year (or, in the
      case
      of  Plan Year 1994, the period prior to May 1, 1994) shall be deemed,
      for purposes of this Paragraph 4A.3(A)(2), to have caused to be contributed
      six
      percent (6%) of such Salary or Eligible Compensation for such Plan Year (or,
      in
      the case of Plan Year 1994, the period prior to May 1, 1994),

    

    (3)
      multiplied by the applicable
      percentage determined for that Plan Year (or, in the case of Plan Year 1994,
      the
      period prior to May 1, 1994) in which the Computation Date occurs as the
      percentage at which contributions by the Participant to the relevant Savings
      Plan are matched by Company contributions,

    

    (4)
      plus an amount of interest for the
      period  beginning on the first day of the Plan Year in which the
      Computation Date occurs and ending on the Payment Date, which interest shall
      be
      calculated on the same basis as interest is calculated on cash awards deferred
      under this Plan.

    

    (B)
      For periods after April 30, 1994
      and prior to January 1, 2009, each Participating Company shall pay to each
      Participant on each Payment Date an amount equal to:

    

    (1)
      the dollar amount, if any, actually
      deferred by the Participant pursuant to the Nonqualified Plan for the pay period
      in which such Payment Date occurs, notwithstanding the amount the Participant
      elected to defer pursuant to that plan, if different, plus the amount, if any,
      equal to the remaining base salary paid to the Participant for such pay period
      in excess of the amount of such Participant's compensation which  may
      be taken into account under Code Section 401(a)(17), or any successor provision,
      plus, in the case of Participants who participate in and make the maximum
      allowable contribution to the RSP for such pay period, the amount of base salary
      (excluding any base salary taken into account under the preceding provisions
      of
      this paragraph 4A.3(B)(l)) paid to the Participant during such pay period in
      excess of the amount of base salary that would produce the maximum contribution
      to the RSP for a Participant who contributed to the RSP six percent (6%) of
      his
      or her Eligible Compensation, as that term or its replacement is defined in
      the
      RSP, for such day period,

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2)
      multiplied by the lesser of six
      percent (6%) or the percentage of such Participant's Salary or Eligible
      Compensation, as those terms or their replacements are defined in the Savings
      Plans, which the Participant actually caused to be contributed as before-tax
      or
      after-tax contributions to the Savings Plans for such pay period,
      notwithstanding the amount elected to be contributed to the Savings Plans,
      if
      different; provided, however, that Participants who make the maximum allowable
      contribution to a Savings Plan for a pay period shall be deemed, for purposes
      of
      this paragraph 4A.3(B)(2), to have caused to be contributed six percent (6%)
      of
      such Salary or Eligible Compensation for such pay period,

    

    (3)
      multiplied by the applicable
      percentage determined for such pay period as the percentage at which
      contributions by the Participant to the relevant Savings Plan are matched by
      Company contributions.

    

    (C)
      For periods on or after January 1,
      2009, no “additional payment” amounts under Section 4A shall be payable to any
      Participant.

    

    4.   A
      Participant who
      terminates employment shall be entitled to receive amounts payable under
      Paragraph 3 of this Section 4A on the Payment Dates otherwise scheduled except
      in the case of any termination of employment as described in Section 4,
      Paragraph 4(c), in which event all amounts otherwise payable under Section
      4A,
      Paragraph 3 shall be immediately forfeited.

    

    5.   In
      the event of a
      Participant's death prior to receipt of all amounts under Paragraph 3 of this
      Section 4A, all such unpaid amounts (except as provided in Section 4A, Paragraph
      4) shall be paid in a lump sum to the participant's estate as soon as is
      practical following his death.

    

    SECTION
      5. MISCELLANEOUS

    

    (1)
      The Participating Company only has
      contractual obligations to make payments to, or on behalf of, the Executive
      or
      Participant. The deferred amounts related to each Participating Company shall
      be
      held in the general funds of such company.  A Participating Company
      shall not be required to reserve or otherwise set aside funds for the payment
      of
      such deferred amounts.  Executives and Participants (and any other
      person who acquires a right to receive payments from a Participating Company
      under this Plan) have the status of general unsecured creditors of the
      Participating Company.  Nothing contained in this Plan shall create or
      be construed to create a trust of any kind or a fiduciary relationship between
      any Participating Company and any Executive or Participant.  The
      rights of (or attributable to) any Executive or Participant hereunder may not
      be
      sold, assigned (either at law or in equity), transferred, pledged, encumbered
      or
      subject to attachment, garnishment, levy, execution or other legal or equitable
      process.  Nor shall any interest of the Executive or Participant be
      subject to the claims of any creditor of the Executive or
      Participant.  Finally, no Executive or Participant shall have any
      rights in any specific assets of any Participating Company.  Any
      accounting reserve established as a result of the Plan only reflects a
      contractual obligation of the Participating Company on its books of accounting
      and does not constitute a segregated fund of assets or separation of assets,
      and
      the obligations of each Participating Company only are payable from its
      operating assets at the time the payment is due.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (2)
      In addition, (i) if any payment is
      made to (or attributable to) an Executive or Participant with respect to
      benefits described in this Plan from any source arranged by Company or a
      Participating Company including, without limitation, any fund, trust, insurance
      arrangement, bond, security device, or any similar arrangement, such payment
      shall be deemed to be in full and complete satisfaction of the obligation of
      the
      Participating Company under this Plan to the extent of such payment as if such
      payment had been made directly by the Participating Company; and (ii) if any
      payment from a source described in clause (i) above shall be made, in whole
      or
      in part, prior to the time payment would be made under the terms of this Plan,
      such payment shall be deemed to satisfy the Participating Company's obligation
      to pay Plan benefits beginning with the benefit which would next become payable
      under the Plan and continuing in the order in which benefits are so payable,
      until the payment from such other source is fully recovered.  In
      determining the benefits satisfied by a payment described in clause (ii), Plan
      benefits, as they become payable, shall be discounted to their value as of
      the
      date such actual payment was made using an interest rate equal to the valuation
      interest rate for deferred annuities as last published by the Pension Benefit
      Guaranty Corporation prior to the date of such actual payment. If the benefits
      which actually become payable under this Plan, after applying the discount
      described in the preceding sentence, are less than the amount of the payment(s)
      described in clause (ii), any such shortfall shall not be collected from or
      enforced against the Executive or Participant as a claim by the Participating
      Company.

    

    (3)
      The Board of Directors may at any
      time make changes in the Plan or terminate the Plan, but such changes or
      termination shall not adversely affect the rights of any employee or
      Participant, without his consent, to any benefit under the Plan to which such
      employee or Participant may have been previously entitled prior to the effective
      date of such change or termination. The Chairman or the Responsible Officer
      with
      the concurrence of the General Counsel of the Company shall be authorized to
      make minor or administrative changes to the Plan.ex10rr.htm

    

      Exhibit
10-rr

      CINGULAR
WIRELESS

      LONG TERM
COMPENSATION PLAN

      (As
Amended and Restated

      Effective
as of November 1, 2007)

       

      1.0           Purpose.

       

      The
purpose of the Cingular Wireless Long Term Compensation Plan (the “Plan”) is to
provide Executives and Non-Executives with long term compensation as set forth
in the Plan and subject to additional objectives and requirements that may be
determined and set forth by the Administrator. The Plan, originally effective
January 1, 2002, was amended and restated in its entirety effective January 1,
2003, and January 1, 2004, and is further amended and restated in its entirety
effective January 1, 2005 as set forth herein.

       

      2.0           Definitions.

       

      Each term
set forth in this Section 2.0 shall have the respective meaning set forth
opposite such term for purposes of this Plan, and when the defined meaning is
intended the term is capitalized.

       

      “Administrator”
means the Board, the Compensation Committee, or the Company Administrator, as
applicable.

      

      “AT&T”
means AT&T Inc.

       

      “Award”
means a final award payable under Section 6.0 following approval by the
Administrator.

       

      “BellSouth”
means BellSouth Corporation.

       

      “Beneficiary”
means the person designated by an Executive to receive any Award paid following
the Executive's death as determined pursuant to Section 8.2.

       

      "Board "
means the Board of Directors of the Cingular Wireless Corporation.

       

      “Cause”
means willful and gross misconduct on the part of a Participant that is
materially and demonstrably detrimental to the Company (or any subsidiary or
affiliate of the Company) as determined by the Company in its sole
discretion.

       

      "Chief
Executive Officer" means the Chief Executive Officer of the
Company.

       

      “Chief
Financial Officer” means the Chief Financial Officer of the
Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Chief
Operating Officer” means the Chief Operating Officer of the
Company.

       

      "Code"
means the Internal Revenue Code of 1986, as amended from time to
time.

       

      "Compensation
Committee" means a  committee of the Board which satisfies the
requirement of Section 162(m)(4)(C)(i) of the Code and has responsibility for
oversight of the Company’s compensation and benefits programs.

       

      "Company"
means Cingular Wireless LLC, a Delaware limited liability company.

       

      “Company
Administrator” means the Chief Executive Officer or a person designated by the
Chief Executive Officer 1) to administer the Plan for Executives other than the
Chief Executive Officer, the Chief Operating Officer, the Chief Financial
Officer and Executives who are direct reports to the Chief Executive Officer,
the Chief Operating Officer and the Chief Financial Officer, and 2) to
administer the Plan for Non-Executives.

       

      "Consolidated
EBITDA" means consolidated earnings before interest, taxes, depreciation and
amortization for the Plan Year for which an Award based on Performance Units or
Performance Stock Units is paid, as determined through the audited consolidated
statement of income of the Company, adjusted to omit the effects of
extraordinary items, gain or loss on the disposal of a business segment (other
than provisions for operating losses or income during the phase-out period),
unusual or infrequently occurring events and transactions that have been
publicly disclosed and the cumulative effects of changes in accounting
principles, all as determined in accordance with generally accepted accounting
principles.

       

      “Corporation”
means Cingular Wireless Corporation, a Delaware corporation.

       

      “Covered
Employee” means a Participant whom the Compensation Committee deems may be or
become a “covered employee,” as defined in Section 162(m)(3) of the Code, for
any Plan Year that such Award may result in remuneration to the Participant and
for which Plan Year such Participant may receive remuneration over $1 million
which would not be deductible under Section 162(m) of the Code but for the
provisions of the Plan and any other “qualified performance-based compensation”
plan (as defined under Section 162(m) of the Code of the Company; provided,
however, that the Compensation Committee may determine that a Participant has
ceased to be a Covered Employee prior to payment of any Award.

       

      “Disability”
means being eligible for and approved for Long Term Disability benefits under
the Company’s group long term disability plan for employees.

       

      “Dividend
Equivalent Payments” means a cash payment equal to the dividends paid on a
common share of BellSouth or AT&T stock during the Performance
Period.  The Administrator shall determine when dividend equivalent
payments are to be paid.

       

      “Executive”
means any executive employee of the Company or any Subsidiary who is a member of
the executive compensation group under the Company's compensation practices and
who is identified by the Administrator, in its sole discretion, as eligible to
participate in the Plan, and is notified by the Administrator that he is
eligible to participate in the Plan.

       

      
        
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      “Fair
Market Value” shall mean the closing price on the New York Stock Exchange
(“NYSE”) for Shares on the relevant date, or if such date was not a trading day,
the next preceding trading date, all as determined by the
Administrator.  A trading day is any day that the Shares are traded on
the NYSE.  In lieu of the foregoing, the Administrator may select any
other index or measurement to determine the Fair Market Value of the Shares
under the Plan.

       

      “Grant or Grants” means a grant of
Performance Units, Performance Stock Units, Restricted Stock Units or SA Units
to a Participant from the Administrator pursuant to the provisions of Section
6.0 of the Plan.

       

      “Non-Executive”
means any employee that is not a member of the executive compensation group
under the Company’s compensation practices and who is identified by the
Administrator , in its sole discretion, as eligible to participate and who is
notified by the Administrator that his is an eligible participant in the
Plan.

       

      “Participant”
means any Executive or Non-Executive who is eligible to participate in this Plan
as determined by the Administrator and is notified in writing by the
Administrator that he is eligible to participate in the
plan.  Individuals classified, according to the Company’s personnel or
other records, as leased employees, independent contractor, temporary agency
employees or temporary employees shall not be eligible to participate in the
Plan, even if they are deemed to be common law employees.

       

      “Performance
Stock Units” or “PS Units” shall mean units granted to Participants with the
value of each unit determined by the stock prices of a Share of common stock of
BellSouth and AT&T as of the Valuation Date pursuant to Section 6.1 of the
Plan. Each Performance Stock Unit shall be eligible to receive Dividend
Equivalent Payments as determined by the Administrator.  Performance
Stock Units do not have any ownership or voting rights related to the underlying
Shares of common stock of BellSouth or AT&T.

       

      “Performance
Units” shall mean cash units awarded to Participants pursuant to this
Plan.

       

      "Plan"
means this Cingular Wireless Long Term Incentive Plan, as amended from time to
time.

       

      “Plan
Year” means the calendar year.

       

      “Retirement”
means the termination of employment for reasons other than Death or Disability,
on or after the date on which (1) the Participant is first eligible, upon
Termination of Employment, for retiree health coverage in accordance with the
terms of the Company’s health plan (or the health plans of AT&T Inc.
("AT&T") or BellSouth Corporation ("BellSouth") with respect to certain
Participants who transferred from BellSouth and AT&T to Cingular Wireless
LLC ("Cingular") as part of the formation of Cingular and met certain age and
service requirements at the time of their contribution to Cingular and whose
retiree health coverage will be provided by either BellSouth or AT&T) all as
determined by the Company’s health plan and the administrator of such plan, in
its sole discretion, (2) a Participant (who is also a participant in the
AT&T 2006 Incentive Plan) is considered by AT&T Inc. to be eligible for
“Retirement,” for purposes of the AT&T 2006 Incentive Plan or (3) the
Participant is eligible to retire under any other guidelines established by the
Administrator.

       

      
        
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       “Restricted
Stock Units” or “RS Units” shall mean units granted to Participants with the
value of each unit determined by the stock prices of a Share of common stock of
BellSouth and AT&T as of the Valuation Date pursuant to Section 6.3 of the
Plan. Each Restricted Stock Unit shall be eligible to receive Dividend
Equivalent Payments as determined by the Administrator.  Restricted
Stock Units do not have any ownership or voting rights related to the underlying
Shares of common stock of BellSouth or AT&T.

       

      “SA
Units” or “Stock Appreciation Units” shall mean the stock appreciation units
granted to Participants pursuant to Section 6.2 of the Plan.

       

      “SA Unit
Exercise Date” means the date on which exercise of a SA Unit occurs under the
Plan.

       

      “SA Unit
Exercise Price” means the Fair Market Value of a Share on the SA Unit Exercise
Date.

       

      “SA Unit
Grant Date” means the date on which a SA Unit is granted to a Participant under
the Plan.

       

      “SA Unit
Grant Price” means the Fair Market Value of a Share on the SA Unit Grant
Date.

       

       “Shares”
means shares of common stock of BellSouth or AT&T, as applicable, under
Section 6.2 of the Plan.  When granting Restricted Stock Units,
Performance Stock Units, or SA Units, the Administrator, in its discretion,
shall determine the percentage of each Performance Stock Unit, Restricted Stock
Unit or SA Unit that is attributable to BellSouth Shares and AT&T Shares,
respectively.

       

      "Subsidiary"
means any corporation, joint venture or partnership in which the Cingular
Wireless owns directly or indirectly (i) with respect to a corporation, stock
possessing at least ten percent ( 10% ) of the total combined voting power of
all classes of stock in the corporation, or (ii) in the case of a joint venture
or partnership, a ten percent ( 10% ) or more interest in the capital or profits
of such joint venture or partnership.

       

      
        
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      “Termination
of Employment” means the event where the Participant is no longer an employee of
the Company or of any Subsidiary or member of the Company’s controlled group of
corporations or entities as determined by the Code.

       

      “Valuation
Date” shall mean the date on which the Valuation Price of each Restricted Stock
Unit or Performance Stock Unit is determined.

       

      “Valuation
Price” shall mean the value of each Restricted Stock Unit or Performance Stock
Unit based on the average of the closing prices on the New York Stock Exchange
(“NYSE”) for Shares for the 10 trading days preceding the Valuation
Date.  A trading day is any day that the Shares are traded on the
NYSE.  In lieu of the foregoing, the Administrator may select any
other 10 day trading period to determine the value of each Restricted Stock Unit
or Performance Stock Unit.

      
        
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      3.0           Effective
Date.

       

      The Plan
was originally effective beginning for Awards granted for the 2002 Plan
Year.  The Plan was amended and restated effective January 1, 2003 and
January 1, 2004, and further amended and restated as set forth herein effective
January 1, 2005 and shall remain in effect until terminated by the
Board.

       

      4.0           Administration.

       

      This Plan
shall be administered by the Board or Compensation Committee, as applicable, for
the Chief Executive Officer, the Chief Operating Officer, the Chief Financial
Officer and any Executive who is a direct report to the Chief Executive Officer,
the Chief Operating Officer, and the Chief Financial Officer.  The
Plan shall be administered by the Company Administrator for all other Executives
and Non-Executives.  The Administrator  shall (a) determine
who is an eligible Participant under the Plan, (b) determine the number of
Grants made under the Plan to each Participant, (c) determine the Performance
Goals (as defined in Section 6.1(d) for determining Awards, (d) determine the
terms and conditions of all Grants under the Plan, (e) determine the Fair Market
Value of Shares, (f) approve and provide for payment for all Awards, (g)
establish the Valuation Date and the Valuation Price, (h) interpret the Plan,
and (i) make all other decisions relating to the operation of the Plan. The
Administrator’s actions and determinations under the Plan shall be completely at
its sole, absolute and final discretion, and all such actions and determinations
shall be final and binding on all persons.  No Administrator shall be
personally liable for any action, determination, or interpretation with respect
to the Plan or Awards.  All Administrators shall be protected and
indemnified by the Company, to the fullest extent permitted by applicable law,
in respect of any such action, determination or interpretation. The
Administrator may adopt such regulations and guidelines as it deems are
necessary or appropriate for the administration of the Plan.

       

      5.0           Eligibility.

       

      Participants
shall be eligible for Awards under this Plan. Executives are not rendered
ineligible by reason of being a member of the Board. The Administrator may
establish such additional rules for eligibility as it determines are
appropriate. The actual payment of an Award  to any eligible
Participant shall be at the discretion of the Administrator as provided in
Sections 4.0, 6.3 and related sections of the Plan.

      

      6.0           Grants and Payment of
Awards

      

      6.1           Performance Units or
Performance Stock Units

      

      (a)           Grants of Performance Units
or Performance Stock Units.  Subject to the terms of the Plan,
Performance Units or Performance Stock Units may be granted to Participants at
any time and from time, as determined by the Administrator.  The
Administrator shall have complete discretion in determining the number of
Performance Units or Performance Stock Units granted to each Participant and the
conditions for the receipt of an Award based on a Grant of Performance Units or
Performance Stock Units.

      

      
        
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      (b)           Value of Performance Units
or Performance Stock Units.  A Performance Unit shall be equal
in value to a fixed dollar amount determined by the Administrator.  A
Performance Stock  Unit shall be equal in value to the Valuation Price
on the Valuation Date as determined by the Administrator.  The
Valuation Price shall be used in establishing the cash payment to be paid once
the vesting requirements as adopted by the Administrator have been
satisfied.

      

      (c)           Performance
Period.  The Performance Period for Performance Units or
Performance Stock Units is the period over which the Performance Goals are
measured.  The Performance Period shall be set by the Administrator
for each Grant; however, in no event shall a Grant have a Performance Period of
less than two Plan Years.

      

      (d)           Performance
Goals.  For each Grant of Performance Units or Performance
Stock Units, the Administrator shall establish performance objectives
(“Performance Goals”) for determining whether Awards based on Performance Units
or Performance Stock Units are payable.  Performance Goals shall
include payout tables, formula or other any other standards determined by the
Plan Administrator, in its sole discretion, to be used in determining the extent
to which the Performance Goals are met and Awards are payable.

      

      (e)          Awards
Based on Performance Units or Performance Stock Units.  The amount of
any Award to be paid to an eligible Participant shall be determined by the
Administrator in its discretion as set forth in Section 4.0 based on the
attainment of Performance Goals, subject only to the limits of Section
6.1(f).  Awards shall be based on and payable for a Performance
Period.  All Awards for a Performance Period determined by the
Administrator under this Section 6.1 shall be paid by the Company and its
Subsidiaries in cash as soon as is practicable following Administrator
certification as provided in Section 6.1(g).  Except as otherwise
determined by the Administrator, a Participant must be actively employed by the
Company on the last day of the last Plan Year of any Performance Period and on
the date of payment of any Award as a condition precedent to the receipt of any
Award.  Participants not meeting this requirement will be considered
to have not met the requirements for receipt of the Award and shall not be paid
such Award.  Notwithstanding this condition and requirement,
Participants who do not meet this condition due to Death, Retirement or
Disability, shall be entitled to the receipt of a pro-rated payment for the
Performance Period.  No other partial or pro-rated payments are
permitted under the Plan.  In the event of the Participant’s death,
any Award payable shall be made to the Participant’s Beneficiary, as governed by
Section 7.2.  The Administrator shall have the sole discretion to
determine the date on which payments are made.  Awards payable to
Participants who incur a Termination of Employment on or after November 1, 2007,
shall be governed the provisions of Appendix A to the Plan.

      

      (f)  Dividend Equivalent Payments
related to Performance Stock Units.  Participants shall be
eligible to receive Dividend Equivalent Payments for each Performance Stock Unit
that has been granted to a Participant.  All Dividend Equivalent
Payments will be settled in cash.  The Administrator shall have the
sole discretion to determine the date on which payments are made and sole
discretion to determine if the Dividend Equivalent Payments are subject to
Performance Goals.  The Administrator also reserves the discretion to
reduce or eliminate the amount of Dividend Equivalent Payments payable to a
Participant following the Participant’s Termination of Employment.

      

      
        
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      (g) Application of Section
162(m) to Performance Units or Performance Stock Units.

       

      (1)           In
the event that the Company becomes subject to the requirements of Section 162(m)
of the Code, Awards payable to Covered Employees after such time shall
constitute “qualified performance-based compensation” and shall be subject to
the achievement of an overall performance goal based on Consolidated EBITDA in
order that payments are deductible under Section 162(m) of the
Code.

       

      (2)           In
the event the Company becomes subject to the provisions of Section 162(m) of the
Code, Awards payable after such time to Covered Employees shall only be payable
under this Plan for a Plan Year if the Company has positive Consolidated EBITDA
for the Plan Year. Furthermore, the maximum award that may be payable under this
Plan for a Plan Year (i) to a Covered Employee who is the Chief Executive
Officer for any part of the Plan Year, and (ii) to each other Covered Employee
will be (i) 0.5% and (ii) 0.3%, respectively, of Consolidated EBITDA for the
Plan Year.  This resulting amount for any Plan Year shall be the limit
established for purposes of Section 162(m) of the Code, and the actual amount
paid to any Executive shall only be that amount, if any, determined by the
Administrator under Sections 6.1 and related sections of the Plan.

       

      (3)           In
the event that Awards payable to any Covered Employee become subject to the
limitations of Section 6.1(f)(2) above,  the Compensation Committee
shall determine the maximum amounts that may be paid under Section 6.1(f)(2) for
the Plan Year to any Covered Employee and shall certify that any Awards
determined under Section 6.1 are within such limits.

       

      (h)           Deferral of Awards Based on
Performance Units or Performance Stock Units. Payments may be subject to
deferral under  any deferral plan established by the Company for this
purpose, provided that in the event Section 162(m) is applicable, any additional
amounts credited to any Covered Employee under any such deferral plan or program
during the period of deferral shall be determined based either on a reasonable
rate of interest or on a specific investment or deemed investment, including
Company stock, as may be determined by the Compensation Committee within the
limits of the regulations under Section 162(m) of the Code.

      

      6.2           Stock Appreciation
Units

      

      (a)           Grants of Stock Appreciation
Units.  Subject to the terms of the Plan, Stock Appreciation
Units may be granted to Participants at any time and from time to time, as
determined by the Administrator.  The Administrator shall have
complete discretion in determining the number of SA Units awarded to each
Participant.

      

      (b)           Vesting of SA
Units.  Participants shall vest in SA Units according to the
vesting schedule adopted by the Administrator.  In the event of a
Participant’s Death, Retirement or Disability, all outstanding SA Units shall
become fully vested.

      

      
        
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      (c)           Exercise of SA
Units.  Subject to subsection (d) below, SA Units, once vested,
shall be exercisable over the period established by the Administrator, which
period shall not exceed (10) years from the date the SA Units are
granted.

      

      (d)           Lapse of SA
Units.

      

      (1)  Termination of
Employment.  In the event of his termination of employment with
the Company for any reason, a Participant’s vested SA Units shall lapse at the
end of the three month period following the Participant’s termination date or
the remaining life of the SA Unit, whichever is earlier.  A terminated
Participant’s unvested options shall lapse on his termination
date.  Any lapsed SA Units shall be void, without value and
unexercisable.

      

      (2)  Termination of Employment
Due to Retirement, Death or Disability.  Notwithstanding the
foregoing subsection, the vested SA Units of Participant who terminates
employment with the Company on account of Death, Retirement or Disability shall
lapse at the end of the five year period following the Participant’s Death,
Retirement or Disability or the remaining life of the SA Unit, whichever is
earlier.

      

      (e)           Payment of Award at
Exercise.  Upon the exercise and settlement of a SA Unit in
accordance with the terms of this Plan and other requirements set forth by the
Administrator, the Participant shall receive a payment equal to the excess, if
any, of the SA Unit Exercise Price for the number of SA Units being exercised at
that time over the SA Unit Grant Price for such SA Units.  Such
payment shall be made in cash.  The Administrator shall have the sole
discretion to determine the date on which payments are made.  The
Administrator also reserves the discretion to reduce or eliminate the amount of
Dividend Equivalent Payments payable to a Participant following the
Participant’s Termination of Employment.

      

      (f)           Transferability During
Lifetime.  During the lifetime of a Participant to whom SA
Units have been granted, only the Participant (or such Participant’s legal
representative) may exercise such Grant and receive payment of an
Award.  No Grant of SA Units may be sold, assigned, transferred,
exchanged, or otherwise encumbered or made subject to any creditor’s process,
whether voluntary, involuntary or by operation of law, and any attempt to do
shall be of no effect.

      

      (g)           Transferability Upon
Death.  In the event of a Participant’s death, all of such
person’s outstanding SA Unit Grants will transfer to the maximum extent
permitted by law to such person’s Beneficiary (subject to the provisions of
Section 7.2 of the Plan) subject to additional rules and restrictions that may
be adopted by the Administrator.

      

      (h)           Application of Section
162(m) on SA Units.  In the event the Company becomes subject
to the provisions of Section 162(m) of the Code, Awards based on SA Units shall
constitute “qualified performance based compensation” and the maximum Grant that
may be made to a Covered Employee under the Plan for a Plan Year is 750,000 SA
Units.

      

      
        
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      6.3           Restricted Stock
Units

      

      (a)           Grants of Restricted Stock
Units.  Subject to the terms of the Plan, Restricted Stock
Units may be granted to Participants at any time and from time to time, as
determined by the Administrator.  The Administrator shall have
complete discretion in determining the number of RS Units awarded to each
Participant.

       

      (b)    Vesting of RS
Units.  Participants shall vest in RS Units according to the
vesting schedule adopted by the Administrator.   The date on
which the vesting schedule is fulfilled shall be the Valuation
Date.

      (c)           Value of RS
Units.  A Restricted Stock Unit shall be equal in value to the
Valuation Price on the Valuation Date as determined by the
Administrator.  The Valuation Price shall be used in establishing the
cash payment to be paid once the vesting requirements as adopted by the
Administrator have been satisfied.

      

       (d)           Awards Based on Restricted
Stock Units.  Once the vesting requirement adopted by the
Administrator has been fulfilled, an Award shall be paid to an eligible
Participant based on the Valuation Price on the Valuation Date as determined by
the Administrator.  All Awards shall be paid by the Company and its
Subsidiaries in cash as soon as is practicable following the Valuation
Date.  Except as otherwise determined by the Administrator, a
Participant must be actively employed by the Company on the Valuation Date to
receive an Award.  Any unvested Grant will be cancelled following
separation of employment.  Notwithstanding this condition and
requirement, Participants who do not meet this condition due to Death,
Retirement or Disability, shall be entitled to the receipt of a pro-rated
Award.  In the event of the Participant’s death, any Award payable
shall be made to the Participant’s Beneficiary, as governed by Section
7.2.  The Administrator shall have the sole discretion to determine
the date on which payments are made.  Awards payable to Participants
who incur a Termination of Employment on or after November 1, 2007, shall be
governed the provisions of Appendix A to the Plan.

      

      (e)  Dividend Equivalent Payments
related to Restricted Stock Units.  Participants shall be
eligible to receive Dividend Equivalent Payments for each unvested Restricted
Stock Unit that has been granted to a Participant.  All Dividend
Equivalent Payments will be settled in cash.  The Administrator shall
have the sole discretion to determine the date on which payments are
made.

      

      (f)           Maximum
Grant.  The maximum Grant of RS Units that can be made to a
Participant is  250,000 RS Units.

      

       

      6.4           Complete
Discretion.  Notwithstanding any other provision in this Plan
or related documents, the Administrator shall, at all times, have the sole and
complete discretion to determine whether any Awards are to be paid under the
Plan, the amount of any such Awards and the recipient of any such
Awards.

      
        
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      7.0           Miscellaneous Administrative
Provisions.

       

      7.1.           Amendment and Termination.
The Administrator shall have the unilateral right to amend, modify,
suspend or terminate the Plan at any time for any reason; provided, that in the
event Section 162(m) is applicable, approval by shareholders shall be required
as provided in the regulations under Section 162(m) of the Code for any
amendment that would have the effect of changing the class of employees eligible
for consideration for Awards under Section 5.0, materially changing the
definition of Consolidated EBDITA, changing the formula in Sections 6.1(f)(2)
and 6.2(h) for determining the maximum amount of Grants or Awards paid to any
Executive or changing the provisions of Section 6.1(g) regarding the credit of
additional amounts on deferred Awards.

       

      7.2.           Beneficiary
.  A Participant may name, from time to time, any beneficiary
or beneficiaries (which may be named contingently or successively) as his or her
Beneficiary for purposes of the Plan.  Each designation shall be on a
form prescribed by the Administrator, will be effective only when delivered to
the Company, and when effective will revoke all prior designations by the
Participant.  If a Participant dies with no such beneficiary
designation in effect, or if the Administrator determines that there is any
question about the legal right of the designated beneficiary , such
Participant's Beneficiary shall be his or her estate.  The
Administrator shall set forth additional rules and requirements regarding the
rights of Beneficiaries to receive payment of an Award or exercise a vested SA
Unit following the Participant’s death.

       

      7.3.           No Right to Awards.
No person shall have any claim to receive a Grant or to be paid an Award
under the Plan and there is no obligation for uniformity of treatment of
eligible Participants under the Plan. The selection of a Participant to receive
Grants or be paid Awards and the amount and payment of Awards rests completely
in the absolute and final discretion of the Administrator. The Administrator's
discretion is limited only by the maximum amount of a Grant or Award that it may
pay as provided in Sections 6.1(f)(2) and 6.2(h), if applicable. Neither the
existence of this maximum, nor any prior practice by the Administrator as to the
payment or amount of awards, creates an obligation by the Committee to pay any
award for any Plan Year or to pay an award equal to the maximum or any other
amount

      

      7.4           No Right to
Employment/Continued Service or Awards.  The making of a Grant
or payment of an Award under the Plan shall impose no obligation on the Company
or any Subsidiary to continue the employment or service of a Participant and
shall not lessen or affect the Company’s or Subsidiary’s right to terminate the
employment or service of such Participant.  No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation
for uniformity of treatment of Participants, or holders or beneficiaries of
Awards.  The terms and conditions of Grants and Awards and the
Administrator’s determinations and interpretations with respect thereto need not
be the same with respect to each Participant (whether or not such Participants
are similarly situated).

       

      
        
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      7.5.           No Funding. This Plan
shall be unfunded and no assets of the Company or a Subsidiary shall be
segregated for the purpose of paying any Awards.

      

      7.6.           Taxes or Deductions.
The Company or any Subsidiary shall withhold from any payment under the Plan
such taxes as it deems are sufficient to cover any withholding taxes that may
become required with respect to such payment. The Company or any Subsidiary
shall have the right to require the payment to it of any such taxes and require
that any person furnish information deemed necessary by such company to meet any
tax reporting obligation before making any payment under the
Plan.  The Company shall also withhold any other authorized or
required amounts or deductions.

      

      7.7           Other Incentive
Plans.  Nothing in this Plan shall prevent the Company and its
subsidiaries from maintaining other incentive compensation plans providing for
the payment of incentive awards to employees, provided that the requirements of
Section 162(m), if applicable, are met by the Company in the administration and
operation of such other plans.

      

      7.8           Company Benefit
Plans.  The terms of the Company’s benefit plans shall
determine whether Awards are included as compensation or earnings under the
particular benefit plan.

       

      7.9   Governing Law and Venue.
This Plan and all related documents shall be governed by the laws of the
State of Georgia, without regard to the conflict of laws provisions thereof
(except to the extent provisions of federal law may be
applicable).  Acceptance of a Grant shall be deemed to constitute
consent to the jurisdiction and venue of the Superior Court of Fulton County,
Georgia and the United States District Court for the Northern District of
Georgia for all purposes in connection with any suit, action, or other
proceeding relating to such Grant or a corresponding Award, including the
enforcement of any rights under this Plan or other document, and shall be deemed
to constitute consent to any process or notice of motion in connection with such
proceeding being served by certified or registered mail or personal service
within or without the State of Georgia, provided a reasonable time for
appearance is allowed.

      
        
          12

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Appendix
A

      

      Terminations of Employment on
or

      After November 1,
2007

      

      Notwithstanding
the provisions of Sections 6.1(e) and 6.3(d) of the Plan requiring a Participant
to be actively employed on the last day of the Plan Year of any Performance
Period and on the date of payment of any Award as a condition precedent to the
payment of an Award (and the provisions related to payments in the event of
Death, Disability and Retirement), Participants who do not meet these
requirements due to a Termination of Employment on or after November 1, 2007,
shall be eligible to receive the following payments for a Performance
Period:

      

      
        	
                Reason for Termination of
      Employment

              	
                Payment of Performance Units,
      Performance Stock Units or Restricted Stock Units Granted
      for

                a Performance
      Period

              
	
                Death
      or Disability (not eligible for Retirement)

              	
                The
      entire Award will be distributed in a lump sum payment in the year
      following the Participant’s Termination from Employment as if the
      Performance Goals were met at a level of 100%.

              
	
                For
      Cause (even if eligible for Retirement)

              	
                The
      entire Award will be immediately forfeited at the time of the
      Participant’s Termination of Employment.

              
	
                Other
      Reasons (not eligible for Retirement)

              	
                Participant’s
      Award is reduced and the Participant may receive no more than a pro-rated
      payout of the Award, based on the number of months during which the
      Participant was actively employed during the Performance Period.1

              
	
                Retirement
      (all reasons except for Cause)

              	
                The
      entire Award may be paid out under the same terms as if the Participant
      were still actively employed by the Company or a Subsidiary on the last
      day of the last Plan Year of the Performance Period and on the date of
      payment of the Award.1

              

      

      

      1Payment, if
any, will be at the regular time for payment (i.e., following the
completion of the Performance Period and certification by the Administrator of
the Performance Goals and level of payment), and the Award payment will be based
upon the Company’s actual results with respect to the Performance Goals and
other conditions as set forth in the Plan and as determined by the
Administrator.  Also, within its sole discretion and without
limitation, the Administrator may reduce or eliminate the Award before the
payout of the Award, but only to the extent such Award would not have been
payable but for this amendment.

      

      Except as
herein modified, the remaining provisions of Section 6.1(e) and 6.3(d) of the
Plan, as applicable, shall remain in full force and effect.

       

       

      
 
14

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