Document:

EXHIBIT 10.1

Laboratory Corporation of America Holdings
Senior Executive Transition Policy

     This Senior Executive Transition Policy ("the Policy") is
adopted to state in a single document the policy of Laboratory
Corporation of America Holdings ("LabCorp") regarding Awards made
under Stock Incentive Plans to a Senior Executive if the Senior
Executive thereafter voluntarily terminates employment with LabCorp
before reaching age 65.  For purposes of this Policy, the term
"Senior Executive" means a duly appointed President/CEO or Executive
Vice President of LabCorp.  The term "Stock Incentive Plan" means the
Laboratory Corporation of America Holdings 1994 Stock Option Plan,
the Laboratory Corporation of America Holdings 2000 Stock Option
Plan, and any plan of a like kind that may be adopted hereafter.  The
term "Award" means an Award as defined in a Stock Incentive Plan.

1.  This Policy applies only to Eligible Senior Executives.  An
"Eligible Senior Executive" is a Senior Executive who has
satisfied the requirements of Paragraph 2 of this Policy
(relating to a Confidentiality/Non-Compete Letter), who held
office as the President/CEO or an Executive Vice President of
LabCorp on or after April 1, 2004, and who at the time of his or
her voluntary termination has served as a Senior Executive of
LabCorp for at least five years and has been credited with at
least ten "Years of Service" as defined in the Laboratory
Corporation of America Employees' Retirement Savings Plan.

2.   A Senior Executive satisfies the requirement of this Paragraph 2
of the Policy if he or she executes a Confidentiality/Non-
Compete Letter substantially in the form attached as Exhibit A
within 30 days of the later of the adoption of this Policy or
his or her appointment as a Senior Executive, and if he or she
executes such amended forms of such a letter as may reasonably
be required by the Board of Directors from time to time.

3.  If an Eligible Senior Executive resigns from office and
terminates employment with LabCorp and its affiliates before
reaching age 65, and the Compensation Committee finds that the
Eligible Senior Executive's transition satisfies the transition
requirements described in Paragraph 4 of this Policy, then
LabCorp, acting through the Compensation Committee of the Board
of Directors, will take all steps necessary and proper to cause
all Unexpired Awards to continue to be eligible for vesting and
to continue to be or become exercisable, payable, or eligible
for the termination of restrictions (as the case may be)
following termination of employment on the same terms and
conditions as if the Eligible Senior Executive had remained
employed by LabCorp during the original exercise period (or, in
the case of an Eligible Senior Executive who dies following
resignation from office and termination of employment, as if the
Eligible Senior Executive had remained so employed through the
date of death).  An "Unexpired Award" means an Award granted to
the Eligible Senior Executive that had not expired and, in the
case of an Award that is an option, had not been exercised; in
the case of an Award that consists of restricted stock, had not
yet become free of restrictions; or, in the case of any other
Award, had not become payable as of the date of his or her
termination of employment with LabCorp.

4.   The transition requirements referred to in Paragraph 3 of this
Plan are as follows:

(a) the Eligible Senior Executive's announcement of a decision
or intention to terminate before age 65 ("Announcement"), and
his or her subsequent public statements regarding his or her
decision or intention to terminate employment, are each made at
a time and in a manner reasonably calculated to minimize any
adverse effect the Announcement and/or any such statement might
have on the shareholders of LabCorp;

(b) the Eligible Senior Executive's Announcement, his or her
announced termination date, and (if different) his or her actual
termination date, whether considered individually or in
conjunction with the dates of the Announcement, the scheduled
termination dates, and/or the actual termination dates of any
other Senior Executives, do not occur within a period of time
that the Compensation Committee finds unreasonably short;

(c) following his or her Announcement, the Eligible Senior
Executive cooperates to the full satisfaction of the
Compensation Committee in the Board of Directors' development of
a plan (the "Transition Plan") for the transition of his or her
duties to others, including his or her successor; and the
Eligible Senior Executive executes his or her duties under the
Transition Plan to the full satisfaction of the Compensation
Committee.  A Senior Executive's duties under a Transition Plan
may include (without limitation) taking all steps assigned to
him or her by the Board in connection with the search for and/or
selection of a successor, and active cooperation in training a
successor and fully familiarizing the successor with sources of
relevant information necessary to carrying out the successor's
duties.

5.   This Policy may be modified, terminated, or amended at any time
by the Compensation Committee, provided, however, that no
modification, termination, or amendment of the Policy adopted
after a Senior Executive has made an Announcement will apply to
such Senior Executive without his or her written consent.

EXHIBIT A

 [NAME]
President OR Executive Vice President
Laboratory Corporation of America Holdings
430 S. Spring Street, First Floor
Burlington, NC 27215

Dear ________________:

This letter is intended to memorialize your agreement, as the
_________________________ of Laboratory Corporation of America
Holdings ("the Company"), to certain duties of confidentiality, non-
competition, and similar matters during your employment, and
following your termination of employment, with the Company and any of
its affiliates (collectively, "LabCorp").  If you sign and return
this letter on or before _________ __, 2004, you will satisfy the
requirement of Section 2 of the Senior Executive Transition Policy
for being an "Eligible Senior Executive" as defined in that Policy.

Defined Terms.  For purposes of this letter, "Laboratory Testing"
refers to the collection for testing and/or testing of specimens from
human beings for the purposes of diagnosis, treatment, or care of
disease or illness; monitoring or providing data for the analysis of
a regimen of treatment, a therapy, or a diagnostic or therapeutic
procedure; and/or detection or analysis of the presence or absence of
factors, chemicals or compounds.  "Clinical Trial" refers to
assembling, validating, or analyzing data relating to the safety or
effectiveness of a drug or medical device.

Receipt of Confidential Information.  You acknowledge that in the
course of your employment with LabCorp, you have developed and will
develop an extensive knowledge of LabCorp's business, including but
not limited to business strategies, cost information, marketing
information, product and service information, new products and
services under development, and plans for the expansion of product
and service lines (including, without limitation, plans for the
acquisition or licensing of intellectual property relating to
Laboratory Testing).  In addition, you acknowledge that in your
employment you have access to information regarding LabCorp's
business plans, sales methods, and customers on a corporate-wide
basis in every market in which LabCorp conducts business.  The
knowledge and information referred to above will be referred to as
"Confidential Information."

Competition.  You and the Company agree that LabCorp will suffer
significant and irreparable injury, for which damages at law would
not be a measurable or adequate remedy, if you become employed by any
corporation or entity that competes with LabCorp or if you provide
services to any such corporation or entity in any other capacity that
would permit you to take advantage of the Confidential Information
acquired by you during the course of your employment with LabCorp
(including by breaching any of the numbered covenants contained in
this paragraph).  Accordingly, you agree that during your employment
by LabCorp and for a period of two (2) years following your
termination of employment, you will not, directly or indirectly:

1. Become employed by or otherwise become interested in (as
owner, stockholder, partner, co-venturer, director, officer,
employee, agent, consultant, or otherwise) any corporation or
entity that is engaged (a) in the business of Laboratory Testing
in the United States and/or Canada at a location that is within
five (5) miles of any location at which one or more employees of
LabCorp is regularly engaged in any aspect of the business of
Laboratory Testing (including, without limitation, any regular
collection site served by LabCorp); or (b) that is engaged in
the business of Clinical Trials in a country in which LabCorp is
engaged in the business of Clinical Trials.  This paragraph
shall not prevent you from holding not more than five (5)
percent of the outstanding securities of any class of any
publicly traded company, other than a company primarily engaged
in Laboratory Testing.

2. Solicit sales or business from any corporation or entity that
was a customer of LabCorp within the one-year time period
preceding your termination of employment provided, however, that
the solicitation of sales of products or services not offered by
LabCorp at the time of such solicitation shall not be deemed a
violation of this provision.

3. Employ or retain, or arrange to have any other person or
entity employ or retain, any person who shall have been employed
or retained by LabCorp as a director or officer at any time
during the one-year time period preceding the termination of
your employment.

4. Attempt to influence any director or officer of LabCorp to
terminate or modify his or her employment arrangement with
LabCorp.

You agree that the foregoing restrictions are necessary for the
reasonable and proper protection of the Company; are reasonable in
respect to subject matter, length of time, geographic scope, customer
scope, and scope of activity to be restrained; and are not unduly
harsh and oppressive so as to deprive you of a livelihood or to
unduly restrict your opportunity to earn a living after termination
of your employment with the Company.

Confidentiality.  During the term of your employment with LabCorp and
thereafter, except as required by or pursuant to law, you shall not,
without the written consent of the Board or a person authorized
thereby, disclose to any person, other than an employee of LabCorp or
a person to whom disclosure is reasonably necessary or appropriate in
connection with the performance by you of your duties as a Senior
Executive of LabCorp, any Confidential Information or Business
Information obtained by you while in the employ of LabCorp.  The term
"Business Information" means any information pertaining to LabCorp's
conduct of its Laboratory Testing and/or Clinical Trial business that
is not readily and easily available to the public or to those in
LabCorp's industry, including, without limitation, LabCorp's prices,
pricing methods, costs, profits, profit margins, suppliers,
procedures, processes, research and development projects, data,
goals, activities, business strategies, marketing techniques, the
identities or addresses of LabCorp's employees, the functions of
LabCorp's employees, and any customer-related information.

Property.  During the term of this Agreement, you shall not make,
copy, maintain, distribute, divulge the contents of, or remove from
LabCorp's offices or premises any documents, records, or similar
materials containing Confidential Information or Business Information
unless necessary or appropriate in accordance with your duties and
responsibilities as [President OR Executive Vice President].  Upon
termination of your employment with LabCorp, you shall leave with or
immediately return to LabCorp all originals and copies of the
foregoing LabCorp property then in your possession, whether prepared
by you or by others.

Duty of Loyalty/Nondisparagement.  During the term of your employment
and for a period of five years following your termination of
employment, you will not (except as required by or pursuant to law)
communicate to anyone, whether by word or deed, whether directly or
through any intermediary, and whether expressly or by suggestion or
innuendo, any statement, whether characterized as one of fact or of
opinion, that is intended to cause or that reasonably would be
expected to cause any person to whom it is communicated to have (1) a
lowered opinion of the Company or any affiliate, including a lowered
opinion of any products manufactured, sold, or used by, or any
services offered or rendered by the Company or any affiliate; and/or
(2) a lowered opinion of the creditworthiness or business prospects
of the Company or any affiliate.

Interpretation and Enforcement.  You and the Company agree that this
letter will be interpreted and construed under the laws of North
Carolina (exclusive of any laws relating to choice of law in the
event of conflicts of law and of any principle causing ambiguities to
be construed against the drafter), and that the covenants contained
in the Competition portion of this letter will be construed and
interpreted so as to permit their enforcement to the maximum extent
permitted thereunder (including, to the extent necessary, by treating
each provision of this letter as severable and separately
enforceable, and/or by reforming any such separate provisions to the
minimum extent necessary to permit enforcement of such covenants to
the fullest extent permitted).  You consent to the exclusive
jurisdiction of the courts of North Carolina over any action or
proceeding relating to the validity and/or construction of this
letter, and agree that you will not bring or remove any such action
or proceeding other than in or to a court established by the State of
North Carolina.

If this Agreement is acceptable to you, please sign and date this
letter where indicated below.

                           Laboratory Corporation of America Holdings

                           By:__________________________________

                           Accepted:

                           ______________________________   ___/___/04
                           [NAME OF SENIOR EXECUTIVE]
                           [TITLE]<PAGE>

                                                             EXHIBIT 10(iii)(A)2

                       AT&T SENIOR OFFICER SEPARATION PLAN

                                  PLAN DOCUMENT

                                       AND

                            SUMMARY PLAN DESCRIPTION

                    (AMENDED AND RESTATED AS OF MAY 19, 2004)

THIS DOCUMENT, LIKE ALL COMPANY PLANS, PERSONNEL POLICIES OR PRACTICES, IS NOT A
CONTRACT OF EMPLOYMENT. IT IS NOT INTENDED TO CREATE, AND IT SHOULD NOT BE
CONSTRUED TO CREATE, ANY CONTRACTUAL RIGHTS TO CONTINUED EMPLOYMENT, EITHER
EXPRESS OR IMPLIED, BETWEEN THE COMPANY AND ITS EMPLOYEES.

AT AT&T CORP., THE EMPLOYMENT RELATIONSHIP WITH EMPLOYEES COVERED BY THIS PLAN
IS "AT-WILL." THIS MEANS THAT EMPLOYEES HAVE THE RIGHT TO TERMINATE THEIR
EMPLOYMENT AT ANY TIME AND FOR ANY REASON, AND THE COMPANY RESERVES THE RIGHT TO
TERMINATE ANY EMPLOYEE'S EMPLOYMENT, WITH OR WITHOUT CAUSE, AT ANY TIME FOR ANY
REASON, SUBJECT TO THE RIGHTS OF ELIGIBLE SENIOR OFFICERS TO BENEFITS PROVIDED
BY THIS PLAN.

IN THE EVENT THERE IS A CONFLICT BETWEEN STATEMENTS IN THIS PLAN AND THE TERMS
OF ANY OTHER BENEFIT PLAN, POLICY, OR PRACTICE, THE APPLICABLE BENEFIT PLAN,
POLICY OR PRACTICE PROVIDING THE BENEFITS IN QUESTION WILL CONTROL. AT&T CORP.
RESERVES THE RIGHT, AT ANY TIME, TO MODIFY, SUSPEND, CHANGE, OR TERMINATE ITS
EMPLOYEE BENEFIT PLANS OR EXECUTIVE LEVEL INCENTIVE, BENEFIT AND/OR PERQUISITE
PLANS, PROGRAMS, POLICIES OR PRACTICES.

AT&T Senior Officer Separation Plan

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                       AT&T SENIOR OFFICER SEPARATION PLAN

                                  PLAN DOCUMENT

                                       AND

                            SUMMARY PLAN DESCRIPTION

A.    OVERVIEW

The AT&T Senior Officer Separation Plan, which includes the attached Appendix A,
Appendix B and Appendix C, (collectively, the "Plan"), which was originally
adopted as of October 9, 1997 and periodically amended, is now amended and
restated, effective May 19, 2004 ("Effective Date"). The Plan is designed to
provide certain supplemental payments and benefit enhancements to eligible
Officers (as defined below) of AT&T Corp. ("AT&T") and certain of its Affiliates
(as defined below) who are designated by the Board of Directors of AT&T Corp.
(the "Board") as eligible to participate in this Plan ("Senior Officers"), and
whose employment is terminated under circumstances set forth in this Plan. In
this Plan, AT&T, or in the event of a "Change in Control" of AT&T Corp., as that
term is defined in the AT&T 2004 Long Term Incentive Program ("CIC"), the
successor to AT&T, and its subsidiaries and Affiliates, are referred to
collectively as the "Company". A Senior Officer will become eligible for
benefits under this Plan only if the conditions for eligibility, as set forth in
Section E of this Plan, are met. Appendix A to this Plan contains certain
specific provisions for the operation of the Plan following a CIC which become
operative as a result of the CIC, including provisions regarding eligibility to
receive benefits.

This Plan supersedes all prior versions of the AT&T Senior Officer Separation
Plan (previously named the AT&T Senior Officer Severance Plan). Except as
otherwise expressly provided pursuant to this Plan, this Plan shall be construed
and administered in a manner which avoids duplication of compensation and
benefits which may be provided under any other plan, program, policy, or other
arrangement. In the event a Participant is covered by any other plan, program,
policy, individually negotiated agreement or other arrangement, in effect as of
his or her Final Payroll Date, that may duplicate the Severance Payment provided
for in Section F.1, and/or certain of the post-termination benefits provided for
in Sections F.2 - F.17, or the Severance Payment provided in Section 5 of
Appendix A and/or certain of the post-termination benefits provided in Sections
6 - 17 of Appendix A, the Executive Vice President - Human Resources is
specifically empowered to reduce or eliminate the duplicative benefits provided
for under the Plan. In taking such action, the Executive Vice President - Human

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Resources will be guided by the principles that (1) such a Participant will
otherwise be treated, for the purpose of the Sections specified above, no more
or no less favorably than are other Participants who are not covered by such
other plan, program, policy, individually negotiated agreement or other
arrangement and (2) the provisions of such other plan, program, policy,
individually negotiated agreement or other arrangement (including, but not
limited to, a special individual pension, a special deferral account and/or a
special equity based grant) which are not duplicative of the Severance Payment
provided for in Section F.1 and/or the post-termination benefits specified in
Sections F.2 - F.17, or the Severance Payment provided for in Section 5 of
Appendix A and/or certain of the post-termination benefits provided for in
Section 6 - 17 of Appendix A, will not be considered in determining elimination
and/or reductions in Plan benefits.

B.    DEFINITIONS

For purposes of this Plan:

"Affiliate" means any entity that is within AT&T's controlled group of
corporations within the meaning of Section 1563 of the Internal Revenue Code of
1986, as amended (the "Code").

"Cause" means:

      (i) commission of a crime, or conviction of a crime, including by a plea
      of guilty or nolo contendere, involving theft, fraud, dishonesty or moral
      turpitude;

      (ii) intentional or grossly negligent disclosure of confidential or trade
      secret information of the Company to anyone not entitled to such
      information;

      (iii) omission or dereliction of any statutory or common law duty of
      loyalty to the Company;

      (iv) violation of the Company's Code of Conduct or any other written
      Company policy; or

      (v) repeated failure to carry out the Senior Officer's duties despite
      specific instruction to do so.

"Eligible for Retirement-Related Benefits" means that a Participant, or a CIC
Eligible Senior Officer, has satisfied the minimum age and service requirements
for the benefits provided under the terms of the AT&T Corp. Postretirement
Welfare Benefits Plan, or the successor to such plan, as amended from time to
time, as of his or her Final Payroll Date.

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"Final Payroll Date" means the date the Participant or the CIC Eligible Senior
Officer actually terminates employment with the Company in accordance with the
terms and conditions of this Plan, including Appendix A, if applicable.

"Good Reason" shall mean the occurrence of either of the following events
without the Senior Officer's express written consent:

      (i)   the material reduction of the Senior Officer's authority or
            responsibility; or

      (ii)  a Reduction in Compensation (as defined below).

Whether a reduction in a Senior Officer's authority or responsibility is
material shall be determined in accordance with the criteria set forth below in
the definition of Reduction in Authority or Responsibility; provided, however,
that (1) the Company's decision not to continue an Executive Committee (or
similar governance body); or (2) changes in reporting relationships; or (3) a
reduction in the Participant's business unit's budget or a reduction in the
Participant's business unit's head count, by themselves, do not constitute Good
Reason.

"Officer" means a management employee classified as an Officer (MGRO or MGROC)
in the compensation job leveling structure of a Participating Company.

"Participant" means a senior management employee who has been designated by the
Board (or the successor to the Board) as an individual who is eligible to
participate in this Plan.

"Participant Notification Form" means the form indicating that a Senior Officer
has been designated as an individual whose employment is being terminated
pursuant to the terms of this Plan, or who has elected to terminate employment
for Good Reason.

"Reduction in Authority or Responsibility" - shall mean:

      (i)   the assignment to the Senior Officer of any duties materially
            inconsistent in any respect with the Senior Officer's position
            (including status, offices, titles and reporting requirements), and
            that detract from or reduce the authority, duties or
            responsibilities to which the Senior Officer was assigned
            immediately prior to the date of such change in such Senior
            Officer's authority, duties or responsibilities; or

      (ii)  any other action by the Company which results in a material
            diminution in such position, authority, duties or responsibilities.

      "Reduction in Authority or Responsibility" shall not include:

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            (a)   an isolated, insubstantial and inadvertent action taken in
                  good faith and which is remedied by the Company promptly after
                  receipt of notice thereof given by the Senior Officer; or

            (b)   any temporary reduction in authority or responsibility while
                  the Senior Officer is absent from active service on any
                  approved disability or approved leave of absence.

      By way of example, and not by way of limitation, Reduction in Authority or
      Responsibility shall include:

                  (1)   The removal of any division, business or operating unit
                        or other business organization from the direct
                        managerial responsibility of the Senior Officer, or

                  (2)   The material reduction in the size or scope of
                        responsibility or operating budget of any division,
                        business or operating unit or other business
                        organization for which the Senior Officer has direct
                        managerial responsibility, or

                  (3)   A reduction in the Senior Officer's authority to legally
                        bind the Company under the Company's Schedule of
                        Authorization, as in effect immediately prior to the
                        Change in Control, without first obtaining any
                        additional authority or approval.

"Reduction in Compensation" shall mean a reduction in the Participant's "Total
Annual Compensation" (defined as the sum of the Participant's Annual Base Salary
Rate, Target Annual Bonus and Target Annual Long Term Incentive Compensation (or
their equivalent within the context of a successor employer's compensation plans
and programs)) for any calendar or fiscal year, as applicable, to an amount that
is less than the Senior Officer's Total Annual Compensation that existed
immediately prior to such reduction.

For purposes of this definition, a Senior Officer's Target Annual Bonus shall
mean the value determined by multiplying the Senior Officer's Target Annual
Bonus percentage in effect on the day preceding any Reduction in Compensation by
the Senior Officer's annual base salary rate in effect on the day preceding the
Reduction in Compensation.

For purposes of this definition, a Senior Officer's Target Annual Long Term
Incentive Compensation shall mean, the total value of the annual equity-based
incentive compensation grants to the Senior Officer, including the following:
(a) "full value equity" compensation, including but not limited to restricted
stock, restricted stock units ("RSUs"), performance shares and cash equivalents
and (b) "non-full value equity" based compensation including, but not limited
to, stock

AT&T Senior Officer Separation Plan

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options and stock appreciation rights, in each case granted as part of the
Senior Officer's annual compensation, assuming 100% performance achievement if
such grants include performance criteria, and shall not include any special
one-time or periodic grants or awards, granted or awarded as part of a hiring
package or retention program, agreement or arrangement:

      (a)   The value of each "full value equity" grant, if any, shall be the
      fair market value ("FMV") of such grant on the date the grant is approved
      by the Compensation and Employee Benefits Committee of the AT&T Board of
      Directors, by such other management committee or committee of the AT&T
      Board of Directors, or by the duly authorized officers of the successor to
      AT&T Corp. (for the purpose of this definition, separately and
      collectively referred to as the "Committee"). The FMV of each "full value
      equity" grant shall be determined by multiplying the number of related
      AT&T common shares by the applicable average of the daily high and low
      sale prices of AT&T common shares on the New York Stock Exchange, or by
      multiplying the number of related common shares of the successor to AT&T
      by the applicable average of the daily high and low sale prices of such
      successor's common shares on the New York Stock Exchange or other national
      exchange on which such shares are listed, as appropriate, for the date the
      grant was approved by the Committee.

      (b)   The value of each "non-full value equity" grant, such as stock
      options and stock appreciation rights ("SARs"), shall equal the per option
      or per SAR value on the date the grant was approved by the Committee,
      based on Black Scholes estimates (or such other option-pricing model,
      deemed acceptable by the Financial Accounting Standards Board for valuing
      options and SARs and utilized by the Committee when considering such
      grant) multiplied by the number of related AT&T common shares in such
      grant, and/or other such amounts determined in the same manner and
      approved by the Committee for the year in which the grant being valued was
      granted.

      (c)   For this purpose, the Black Scholes value and FMV of the respective
      components of AT&T Target Annual Long Term Incentive Compensation shall be
      updated annually as approved by the Committee.

"Rule of 65" shall have the same meaning ascribed to such term in Article 2 of
the AT&T Corp. Postretirement Welfare Benefits Plan.

"Termination Year" means the calendar year during which the Participant's or CIC
Eligible Senior Officer's Final Payroll Date occurs.

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C.    TYPE OF PLAN

This Plan is intended to be, and shall be interpreted as an unfunded employee
welfare benefit plan under Section 3(1) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), and Section 2520.104-24 of the
Department of Labor Regulations, maintained primarily for the purpose of
providing employee welfare benefits, to the extent that it provides welfare
benefits and, under Sections 201, 301 and 401 of ERISA, as a plan that is
maintained primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees, to the extent that
it provides other benefits.

D.    PLAN PARTICIPATION

An Officer shall participate in this Plan if he or she is designated by the
Board (or the successor to the Board) as being eligible to participate in the
Plan. The Board, or its delegate, shall have complete discretionary authority to
remove an individual from participation and eligibility for benefits under the
Plan. For a period of two years following a CIC, an individual cannot be removed
from Participation.

The Board, or its delegate, shall have complete discretionary authority to
determine if and when, and to what organizations, positions and groups of senior
management employees, this Plan is to be applied.

E.    ELIGIBILITY TO RECEIVE BENEFITS

1.    BASIC ELIGIBILITY REQUIREMENTS

A Participant or CIC Eligible Senior Officer will receive the payments and
benefits described in this Plan, including any benefits that may be provided
pursuant to the terms of Appendix A hereto, only if the conditions listed in
clause (i) or (ii) and the condition listed in clause (iii) below are satisfied:

      (i)   The Senior Officer terminates his or her employment with the Company
            at the initiation of the Company, in accordance with the terms and
            conditions of this Plan, other than (a) with eligibility for
            benefits under any AT&T long term disability plan, or (b) for Cause.
            A Senior Officer, other than a CIC Eligible Senior Officer, shall
            receive a Participant Notification Form that shall indicate his or
            her termination pursuant to the terms of this Plan. The Participant
            Notification Form shall include the Participant's Final Payroll
            Date; or

      (ii)  The Senior Officer elects to terminate his or her employment with
            the Company for Good Reason, having satisfied the Notification
            provisions set forth below and having obtained the Company's
            agreement that

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            the Senior Officer has Good Reason to terminate employment, or, in
            the absence of such agreement, having successfully arbitrated his or
            her claim that Good Reason occurred, pursuant to the provisions of
            Section M. In such event, the Senior Officer shall receive a
            Participant Notification Form which shall include the Participant's
            Final Payroll Date; and

      (iii) The Senior Officer executes a Waiver and Release ("Release") (a copy
            of which is attached as Appendix B), and the time during which the
            Senior Officer may revoke the Release has expired without
            revocation.

Notwithstanding the foregoing, the Senior Officer shall remain subject to the
forfeiture and repayment provisions set forth in Section J of this Plan.

2.    NOTIFICATION REQUIREMENTS FOR TERMINATION FOR GOOD REASON

In the event a Senior Officer determines that Good Reason exists to elect to
terminate his or her employment with the Company, the Senior Officer must notify
the Executive Vice President - Human Resources in writing of the specific event
which the Senior Officer believes constitutes Good Reason within thirty (30)
days of the occurrence of such event.

Within ten (10) business days of the Company's receipt of such written notice,
the Company shall notify the Senior Officer that it agrees or disagrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason. The Company shall have thirty (30) days from its
receipt of the Senior Officer's written notice in which to remedy any event
specified in such notice as constituting Good Reason. The Company's notification
that it agrees with the Senior Officer's determination shall state whether or
not it will take action to remedy the event constituting Good Reason.

In the event the Company notifies the Senior Officer that it agrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason, but will not take action to remedy the event,
the Senior Officer shall receive a Participant Notification Form within five
business days thereafter, which shall include the Participant's Final Payroll
Date, which date shall be two weeks from the date of delivery of the Participant
Notification Form, or such earlier or later date as the Company and the Senior
Officer shall mutually agree.

In the event the Company notifies the Senior Officer that it disagrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason, or in the event the Senior Officer believes that
the corrective actions taken by the Company fail to adequately address the event
claimed to constitute Good Reason specified in the Senior Officer's notice, the
procedures set forth in Sections L and M of this Plan shall apply. Under such

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circumstances, the Senior Officer may elect to terminate his or her employment
and continue to pursue a claim for benefits by following the procedures set
forth in Sections L and M of this Plan. The date the Senior Officer elects to
terminate his or her employment shall be his or her Final Payroll Date. If the
Senior Officer elects to remain employed while pursuing his or her claim for
benefits, and such claim or arbitration is ultimately concluded in the Senior
Officer's favor, the Senior Officer shall receive a Participant Notification
Form, which shall include the Participant's Final Payroll Date.

F.    PLAN PAYMENTS AND BENEFITS

A Participant who satisfies the conditions for receipt of benefits or payments
under Section E shall be entitled to the following:

1.    SEVERANCE PAYMENT

A Participant shall receive a severance payment under this Section F.1 that will
equal two hundred percent (200%) of the sum of (i) the Participant's annual base
salary rate, plus (ii) the Participant's target annual incentive, (such sum to
be referred to as the "Severance Payment"), in each case, determined as of the
Participant's Final Payroll Date, as indicated on the Participant Notification
Form; provided, however, that if a Participant's termination for Good Reason
results from a Reduction in Compensation, a Participant's base salary and target
annual incentive shall be determined as of the date immediately prior to such
Reduction in Compensation. The Severance Payment will be paid in a single lump
sum as soon as administratively feasible after expiration of the revocation
period indicated in the Participant's Release without revocation, unless
deferral of such Severance Payment is elected in accordance with Section F.2
below.

2.    DEFERRAL OPTION

The Participant may elect to defer receipt of the Severance Payment. The
Participant's written deferral election must be submitted to the AT&T Executive
Benefits Organization not later than the day prior to the date on which the
Release is executed. A copy of the deferral election form to be completed is
attached as Appendix C. Deferral may be for a period of up to five (5) years
following the Participant's Final Payroll Date, in whole year increments. Payout
of the deferred Severance Payment may be in the form of a lump sum, or up to a
maximum of five (5) approximately equal annual installments, as indicated on the
deferral election form.

The first installment from the deferred account (or the single payment, if the
Participant so elected), including interest thereon, will be paid by the end of
the calendar quarter which immediately follows the calendar quarter in which the
first, second, third, fourth or fifth anniversary (as so elected by the
Participant) of the Participant's Final Payroll Date occurs. All unpaid deferred
amounts will

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continue to accrue interest at the rate of return set forth below. In the event
of a Participant's death prior to the payment of all deferred amounts, the
unpaid balance shall be paid to his or her named beneficiary (or to his or her
estate, if no beneficiary has been named) in a lump sum not later than the end
of the calendar quarter immediately following the calendar quarter in which the
AT&T Executive Benefits Organization receives written notice of such death.

For individuals designated as Senior Officers as of May 19, 2004, deferred
amounts will be credited quarterly with interest equal to one-quarter (1/4) of
the average rate applicable to actively traded 10-year US Treasury Notes for the
prior calendar quarter, plus 1.25 percent. The Company reserves the right to
change the interest rate to be credited on deferred amounts with respect to an
individual who is designated as a Senior Officer after May 19, 2004, provided,
however, that in the absence of such action by the Company, the interest rate
described in the previous sentence will apply. The crediting of interest on
deferred amounts, commencing with the Participant's Final Payroll Date, shall be
calculated in accordance with rules and procedures determined by the Company in
its sole and absolute discretion. Participants who elect to defer amounts under
this arrangement shall be unsecured general creditors of the Company. The
Company shall establish for each such Participant, an unfunded bookkeeping
account to which deferred amounts (and interest) will be credited, but the
Company shall have no obligation to fund or set aside assets for the payment of
any deferred amounts under this arrangement.

3.    ANNUAL BONUS

A Participant who has performed at least eighty eight (88) consecutive days of
service to the Company during his or her Termination Year, will be eligible to
receive a prorated portion of the annual incentive applicable to the Termination
Year based on the Participant's time on the active payroll during the
Termination Year, in an amount equal to the product of the actual achievement
level for the Participant's annual incentive for such year, as determined by the
Company in its sole discretion, multiplied by a fraction, the numerator of which
is the number of completed months of the Participant's employment during the
Termination Year (including the last month of employment if the Participant's
Final Payroll Date is on or after the 15th of the month) and the denominator of
which is 12. Such amount shall be payable during the first quarter of the
following year, in accordance with existing practices and terms of the AT&T
Short Term Incentive Plan.

If a Participant's Final Payroll Date occurs prior to the payment of his or her
annual incentive with respect to the year preceding his or her Termination Year,
such Participant will be eligible to receive such annual incentive, which shall
be paid at the same time as such annual incentive is paid to other actively
employed senior management employees.

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4.    OUTSTANDING LONG TERM INCENTIVES

      a)    GENERAL - Subject to the provisions of paragraphs (b), (c), (d),
            (e), (f), (g), (h) and (i) of this Section F.4, following a
            Participant's Final Payroll Date, the Participant shall retain any
            performance shares, stock units, unexercised options to purchase
            AT&T common stock, restricted stock and restricted stock units
            payable or redeemable in shares of AT&T common stock, cash
            equivalent awards, and any other awards granted as part of a
            standard annual grant, as a special recognition or retention grant,
            or in connection with AT&T's offer of employment to such
            Participant, under any applicable AT&T long term incentive program
            (other than the AT&T Wireless Adjustment Plan, the terms of which
            shall govern any grants under such plan), including any plan
            previously maintained by McCaw, LIN, TCG, TCI or MediaOne ("Long
            Term Incentives"), and which remain outstanding as of such
            Participant's Final Payroll Date. Except as otherwise specified in
            paragraphs (b), (c), (d), (e), (f), (g), (h) and (i) of this Section
            F.4, all grants under any AT&T long term incentive program, or the
            successor to such program, shall remain subject to the same terms
            and conditions of the applicable original grant agreement, including
            any modifications or amendments to such grant agreements which
            become effective on or prior to such Participant's Final Payroll
            Date.

      b)    PERFORMANCE SHARES - Performance shares shall be prorated based on
            the number of full months of employment in the performance period
            (including the last month if the Participant's Final Payroll Date is
            on or after the 15th of the month) and distributed to the
            Participant as soon as practicable following the Participant's
            Termination Year, in accordance with the terms and conditions of the
            performance share award agreement. The payout level, if any, for the
            award will be determined by the level of performance criteria met
            from the beginning of the applicable performance period through the
            end of the Participant's Termination Year.

      c)    STOCK OPTIONS - A Participant shall become immediately vested, as of
            his or her Final Payroll Date and upon expiration of the revocation
            period indicated in the Release without revocation, in all
            outstanding options to purchase AT&T common stock. All retained
            stock options shall remain exercisable for the remainder of the
            original term of the grant.

      d)    RESTRICTED STOCK AWARDS - A Participant shall become vested, as of
            his or her Final Payroll Date, and upon expiration of the

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            revocation period indicated in the Release without revocation, in
            each award of restricted stock. Shares related to the vested
            restricted stock awards under this Section F.4(d) will be
            distributed to a Participant as soon as administratively feasible
            after they become vested.

      e)    RESTRICTED STOCK UNITS - Restricted stock units granted on or after
            January 1, 2003 that contain terms requiring the proration of such
            restricted stock units upon termination of employment from the
            Company under a force management plan or program, shall be prorated
            according to the terms of such grant. The prorated restricted stock
            units that will be retained, and other outstanding restricted stock
            units not subject to proration that will be retained, shall become
            vested as of the later of the Participant's Final Payroll Date or
            the expiration of the revocation period indicated in the Release
            without revocation. Shares related to the vested restricted stock
            units under this Section F.4(e) will be distributed to the
            Participant as soon as administratively feasible after they become
            vested. The balance of the prorated restricted stock units that will
            not be retained and will not be vested under this Section F.4(e)
            shall be canceled.

      f)    PERFORMANCE-DEPENDENT AWARDS - The unvested portion of any special,
            performance-dependent equity and/or cash award(s) granted to a
            Participant shall become vested as of the later of the Participant's
            Final Payroll Date, or expiration of the revocation period indicated
            in the Release without revocation. The vested portion of any such
            other award will be administered in accordance with the terms of the
            grant.

      g)    AT&T WIRELESS EQUITY - Options to purchase shares of common stock of
            AT&T Wireless Services, Inc. shall be governed by the terms of the
            AT&T Wireless Services Adjustment Plan.

      h)    STOCK UNITS - Stock units created as the result of any corporate
            transaction, restructuring or reorganization shall follow, and
            remain subject to all of the terms of the original equity award with
            respect to which such stock units were granted (i.e., original
            grants of performance shares, restricted stock and restricted stock
            units), except to the extent that such terms have been modified by
            the definitive agreement governing such transaction, restructuring
            or reorganization. Distribution of such stock units will be in cash
            and will be made according to the terms created pursuant to such
            original grants, including such terms as proration for partial
            service in the performance or vesting period.

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      i)    CASH AWARDS/PAYMENTS - Cash awards/payments, granted under any
            long-term incentive program which have not yet vested, will vest as
            of the later of the Participant's Final Payroll Date or expiration
            of the revocation period indicated in the Release without
            revocation, and will be paid as soon as administratively feasible
            following such vesting.

5.    OTHER CASH AWARDS/ PAYMENTS

Other unvested cash awards/payments including but not limited to awards/payments
for retention, unpaid signing bonuses and any other cash payments or awards, but
not including cash in individual deferral accounts which are subject to their
own terms and conditions, will vest as of the later of the Participant's Final
Payroll Date or expiration of the revocation period indicated in the Release
without revocation, and will be paid as soon as administratively feasible
following such revocation period.

6.    EXECUTIVE LIFE INSURANCE PROGRAM

A Participant who is participating in the AT&T Corp. Executive Life Insurance
Program on his or her Final Payroll Date and for whom an ELIP policy has been
issued (excluding any term binder), shall continue such participation in
accordance with the terms and conditions of that Program as if he or she were
Eligible for Retirement-Related Benefits, taking into account the election of
the Participant, if any, to continue coverage previously available under the
AT&T Senior Manager Universal Life Insurance Program at the rate of two and
one-half (2.5) times his or her final annual base salary rate, rather than the
current ELIP policy coverage of three times a Participant's annual base salary
rate prior to the Participant's Final Payroll Date, and two times annual base
salary rate after the Participant's Final Payroll Date.

In the event a Participant is covered only by a term binder as of his or her
Final Payroll Date, such term insurance will cease on his or her Final Payroll
Date.

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7.    PENSION DEATH BENEFIT

The death benefits provided with respect to pensioners under the AT&T MPP and
the death benefit provided under the AT&T Non-Qualified Pension Plan (AT&T NQPP)
(the sum of (a) one times base salary in effect on December 31, 1997, plus (b)
the greater of the annual incentive paid to the Participant in 1997 with respect
to 1996, or the annual incentive paid to the Participant in 1998 with respect to
1997), will be paid to the qualified survivor, if any, of a Participant who was
an AT&T management employee on January 1, 1998, and whose Final Payroll Date
occurs not later than December 31, 2007. If such a Participant is not Eligible
for Retirement-Related Benefits as of his or her Final Payroll Date, the death
benefits that would otherwise have been payable from the AT&T MPP and AT&TNQPP
will be paid from the operating income of the Company. A Participant's qualified
survivor will be determined under the terms of the AT&T MPP. Any Death Benefit
paid under the AT&T Senior Management Long Term Disability and Survivor
Protection Plan ("SMLTD&SPP") will be reduced by the amount of any Death Benefit
payable under this Section F.7.

8.    FINANCIAL COUNSELING

A Participant who is participating in the AT&T Officer Financial Counseling
Program as of his or her Final Payroll Date shall continue such participation
for a period of two years following such Participant's Final Payroll Date in
accordance with the terms and conditions of that program, including the
preparation of personal income tax returns with respect to calendar years
through and including the second anniversary of such Participant's Termination
Year.

9.    TRANSITION COUNSELING

A Participant will be entitled to receive the services of a Company-paid and
Company-approved outplacement or career transition consultant in accordance with
AT&T's current practices for Senior Officers in effect as of the Participant's
Final Payroll Date; provided, however, that commencement of such transition
counseling services, if desired, must begin within one year of the Participant's
Final Payroll Date.

10.   AT&T TOLL DISCOUNT

A Participant will be eligible for toll reimbursement through the AT&T Toll
Discount Program under the terms and conditions that apply to management
employees Eligible for Retirement-Related Benefits, as those terms and
conditions may be amended from time to time.

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11.   VACATION

A Participant should make every reasonable effort, consistent with the needs of
the business and AT&T's policies and procedures, to use all vacation, personal
days, and floating holidays to which he or she is eligible before his or her
Final Payroll Date. If the Participant is unable to do so, he or she will be
paid for any unused earned vacation days (but not for any unearned vacation
days) for the calendar year in which his or her Final Payroll Date occurs and
for any approved and unexpired carryover days (not to exceed the number of
carryover days as approved by the Company) from the prior year. A Senior Officer
will not be paid for, nor be entitled to use unearned vacation days once he or
she has been designated as a Participant under this Plan. The Participant will
not receive pay in lieu of floating holidays and management personal days if
these days are not taken prior to his or her Final Payroll Date, except for
those Participants in the states of California, Illinois, or North Dakota, who
will receive such payments as may be mandated by state law.

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12.   MEDICAL/DENTAL COVERAGE

The extension and cost of medical and dental coverage for a Participant who is
Eligible for Retirement-Related Benefits will be in accordance with the terms of
the AT&T Corp. Postretirement Welfare Benefits Plan, or the successor to such
plan, as amended from time to time. If, on the Participant's Final Payroll Date,
the Participant is not Eligible for Retirement-Related Benefits, the Company
will continue to provide coverage under the AT&T Medical Expense Plan and/or the
AT&T Dental Expense Plan for Active Employees, or the successors to such plans,
on the same basis as for active employees, to such Participant and his or her
eligible Class I dependents, Domestic Partner and/or Domestic Partner's
children, (provided that such eligible Class I dependents, Domestic Partner
and/or Domestic Partner's children were covered by the AT&T Medical Expense Plan
and/or the AT&T Dental Expense Plan for Active Employees, or the successors to
such plans, immediately prior to the Participant's termination of employment),
for up to eighteen (18) months after the month in which the Participant's Final
Payroll Date occurs, subject to the terms and conditions of those plans, as
amended from time to time. Such a Participant who is enrolled in a medical
and/or dental plan option as an active employee under the AT&T Medical Expense
Plan and/or the AT&T Dental Expense Plan for Active Employees, or the successors
to such plans, that requires employee contributions, must continue to pay those
contributions during the period of time that the Company provides the
Participant with continued coverage. To the extent that the continuation of
Company-provided coverage results in taxable imputed income to the Participant
in excess of the taxable income incurred as an active employee, the Company will
provide a tax allowance, calculated in accordance with the Company's then
current practice for Senior Officers, estimated to cover the Federal income and
FICA (Medicare portion) taxes to be incurred by the Participant by reason of
such imputed income and the additional payment provided for in this sentence.
Company-provided continuation of coverage under the AT&T Medical Expense Plan
and/or the AT&T Dental Expense Plan for Active Employees, or the successors to
such plans, shall run concurrently with any rights to continuation of coverage
the Participant and/or his or her eligible Class I dependents, Domestic Partner
and/or Domestic Partner's children may otherwise have under the Consolidated
Omnibus Budget Reconciliation Act of 1985 ("COBRA"). The Participant should
immediately notify the COBRA administrator if he or she becomes covered under
another group health plan, at which time the Participant's COBRA coverage and
the Company's provision of medical and/or dental coverage for the Participant
and his or her eligible Class I dependents, Domestic Partner and/or Domestic
Partner's children will cease.

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If, at the end of the 18 month COBRA period, the Senior Officer is not covered
under another group health plan, the Company will make medical coverage (not
dental coverage) available for the Senior Officer and his or her Class I
dependents, Domestic Partner and Domestic Partner's Children under the AT&T
Separation Medical Plan, or the successor to such plan, on the same basis as for
certain former Officers. Should the Participant elect to take this coverage, the
Participant will be responsible for the same portion of the annual premium for
this medical coverage as is applicable to similarly situated former Officers
covered under the AT&T Separation Medical Plan. Continuation of coverage under
the AT&T Separation Medical Plan after the Senior Officer's death is available
to the Senior Officer's Class I dependents, Domestic Partner and Domestic
Partner's Children, if such dependents pay 100% of the annual premium for
coverage. There will be no continuing dental coverage for the Senior Officer or
his or her Class I dependents, Domestic Partner and Domestic Partner's Children
after the end of eighteen (18) months following the month in which occurs the
Senior Officer's Final Payroll Date, except as may otherwise be required by law.
The Participant should immediately notify the Company if he or she becomes
covered under another group health plan, at which time the Company's provision
of medical coverage for the Participant and his or her Class I dependents,
Domestic Partner and Domestic Partner's Children will cease.

13.   DEPENDENT GROUP LIFE INSURANCE

The Participant may continue plan coverage under the AT&T Dependent Group Life
Insurance Plan for up to three (3) months after the month in which the
Participant's employment terminates by paying the group premium. At the end of
the three (3) month period (or any shorter period for which premiums were paid),
coverage shall end, at which time the Participant may elect conversion to an
individual policy as provided by the insurance carrier.

14.   ACCIDENTAL LOSS INSURANCE

Coverage for the Participant up to one times total annual pay (as defined in the
AT&T Group Life Insurance Plan) will continue, at Participating Company expense,
for six (6) months after the month in which the Participant's employment
terminates.

A Participant may elect to continue coverage in excess of one times total annual
pay (as defined in the AT&T Group Life Insurance Plan) for up to six (6) months
after the month in which the Participant's employment terminates by paying the
applicable additional group premium. Accidental Loss Insurance cannot be
converted to an individual policy. At the end of the six (6) month period (or
any shorter period for which premiums were paid), coverage shall end.

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15.   DEPENDENT ACCIDENTAL LOSS INSURANCE

The Participant may continue plan coverage under the AT&T Dependent Accidental
Loss Insurance Plan for up to three (3) months after the month in which the
Participant terminates employment by paying the group premium. AT&T Dependent
Accidental Loss Insurance Plan coverage cannot be converted to an individual
policy. At the end of the three (3) month period (or any shorter period for
which premiums were paid), coverage shall end.

16.   LONG-TERM CARE

The Participant may elect to continue coverage through the carrier by paying the
group premium.

17.   REIMBURSEMENT ACCOUNTS

A Participant may continue to submit claims incurred through the Participant's
Final Payroll Date under the AT&T Health Care Reimbursement Account Plan (HCRA)
up to the amount elected and not previously reimbursed for that plan year. A
Participant may choose to continue to participate in HCRA, through COBRA, on an
after-tax basis by making monthly deposits to the account. A Participant may
continue to submit claims incurred through the end of the plan year under the
AT&T Child/Elder Care Reimbursement Account Plan (CECRA) up to the amount
contributed and not previously reimbursed through the Participant's Final
Payroll Date. HCRA and CECRA claims may be submitted through April 15 of the
following year.

G.    RELEASE

The Release must be signed and returned to the AT&T Executive Benefits
Organization c/o Aon Consulting, Inc. of NJ, Room 7C19, 270 Davidson Avenue,
Somerset, NJ 08873, on or after the Participant's or the CIC Eligible Senior
Officer's Final Payroll Date.

H.    WITHHOLDINGS

Any taxable payment or benefit paid pursuant to this Plan is subject to
applicable withholding of Federal, state and local income taxes, FICA (Social
Security and Medicare taxes), and FUTA (unemployment taxes) and will be reported
on IRS form W-2.

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I.    PAYMENT UPON DEATH, DISABILITY OR LEAVE OF ABSENCE

1.    DEATH

If a Participant should die on or before his or her Final Payroll Date, no
payments will be made or benefits provided under this Plan. The Participant will
be treated as if he or she had died as an active Senior Officer and his or her
estate or beneficiaries will be entitled to the applicable benefits payable upon
the death of an active Senior Officer. If a Participant should die after his or
her Final Payroll Date, without having executed a valid Release, or having
revoked a previously executed Release, no payments will be made or benefits
provided under this Plan. The Participant will be treated as if he or she had
died as a terminated Senior Officer and his or her estate or beneficiaries will
be entitled to the applicable benefits payable upon the death of a terminated
Senior Officer. If a Participant should die after his or her Final Payroll Date,
and the Participant has executed a valid Release which has not been revoked,
benefits will be provided (a) according to the valid beneficiary designations on
file with the Company for such benefits, (b) to the mandatory beneficiary
pursuant to the terms of the applicable plan, or (c) to the Participant's
estate, as applicable, as soon as administratively feasible after the AT&T
Executive Benefits Organization receives written notification of the
Participant's death. With respect to the period following a Participant's death,
no additional payments for toll reimbursement, transition counseling, financial
counseling and group health continuation coverage will be made under this Plan.
Long term incentive awards will continue to be subject to the terms and
conditions of the applicable AT&T long term incentive plan and the award
agreements under which they were granted as applicable upon the death of a
Senior Officer.

2.    DISABILITY AND LEAVES OF ABSENCE

If, on a Participant's Final Payroll Date, the Participant is receiving short
term disability benefits under any AT&T short term disability plan, or the
Participant is on a leave of absence with a guaranteed right to reinstatement,
any benefits to the Participant under this Plan shall be computed and paid as
follows:

      a)    SENIOR OFFICER RECEIVING DISABILITY BENEFITS - Except as provided in
            the final sentence of this paragraph, no benefit under this Plan
            will be provided until the Participant's employment is formally
            terminated at the time his or her short-term disability benefits
            under any AT&T short term disability plan cease, which shall be his
            or her Final Payroll Date. Any Severance Payments due under Section
            F.1 of this Plan shall be reduced (but not below zero) in accordance
            with procedures established by the Executive Vice President - Human
            Resources, by the full amount of any disability benefits paid under
            any AT&T short term disability plan for the period after the date
            established by the Participant Notification

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            Form as the Participant's Final Payroll Date. A Senior Officer who
            terminates employment at the end of a period of short term
            disability benefits and immediately thereafter commences long term
            disability benefits (under the Company's long term disability
            program) shall not be eligible to receive any payments or benefits
            under this Plan.

      b)    SENIOR OFFICER ON A LEAVE OF ABSENCE WITH GUARANTEED RIGHT OF
            REINSTATEMENT - Benefits under this Plan will not be payable until a
            Participant's employment is formally terminated at the conclusion of
            the Participant's leave of absence.

J.    FORFEITURE

Participants shall repay and forfeit the payments and/or benefits provided under
this Plan, in the following circumstances:

1.    VIOLATION OF AT&T CODE OF CONDUCT OR AT&T NON-COMPETITION GUIDELINE

Notwithstanding any other provision of this Plan, if it is determined by the
Executive Vice President - Human Resources of AT&T, in consultation with AT&T's
General Counsel, that a Senior Officer has violated AT&T's Code of Conduct,
and/or violated the AT&T Non-Competition Guideline, (the "Guideline") (copies of
which will be provided to the Senior Officer prior to his or her Final Payroll
Date, if requested by the Senior Officer), the Senior Officer will be required
to repay to the Company an amount equal to the economic value of all benefits
already provided to the Senior Officer under this Plan and shall forfeit all
unpaid benefits under this Plan. Severance that the Participant has elected to
defer under Section F.2 of this Plan shall be repaid, to the extent that
payments have been made to the Participant from the deferred account established
for the Participant's Severance Payment. The amount, if any, not paid from the
deferred account to the Participant as of the breach of the Guideline shall be
forfeited. Additional forfeiture provisions may apply under other AT&T
compensation, incentive, benefit and perquisite plans, programs and
arrangements.

2.    FUTURE SERVICES

A Senior Officer who has received the Severance Payment provided by Section F.1,
or has received the Severance Payment provided under Section 5 of Appendix A of
the Plan (or who has deferred receipt of the Severance Payment provided by
Section F.2 or Section 6 of Appendix A), shall have a continuing obligation to
cooperate with the Company on a commercially reasonable basis, in any matter,
and to testify in any legal proceeding in which the Company is a party, in each
case relating to, or in connection with, the duties and

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responsibilities of the Senior Officer while he or she was employed by the
Company.

If the Senior Officer provides services within the two-year period (104 weeks)
following the Senior Officer's Final Payroll Date (as an employee, independent
contractor, consultant or otherwise (other than to participate in the defense or
prosecution of a matter in which the Company is a party, or to cooperate with
the Company in a manner contemplated by the preceding paragraph)) to the Company
or any joint venture in which the Company (directly or indirectly) owns any
equity interest, then upon commencement of any such services, the Senior Officer
will be required to repay (or forfeit) a portion of the Severance Payment, or
the amounts credited to the Senior Officer's deferred account under Section F.2
of the Plan, provided to the Senior Officer under the Plan prior to such
commencement of services. Such portion of the Severance Payment, or the amounts
credited to the Senior Officer's deferred account, shall be determined by
multiplying the Severance Payment, or the amounts credited to the Senior
Officer's deferred account, respectively, by a fraction, the numerator of which
is the number of whole weeks remaining in the two-year period (up to 104 weeks)
following the Senior Officer's Final Payroll Date (determined as of the
effective date of his or her commencement of such services), and the denominator
of which is 104. Except to the extent provided in the remaining sentences of
this Section J.2, benefits that would otherwise be provided to the Senior
Officer under the Plan, on and after such commencement of services, shall be
forfeited. Notwithstanding the foregoing, the Company shall make an additional
payment ("Additional Payment") to the Senior Officer who commences such services
(or may reduce the amount required to be repaid or forfeited by the Senior
Officer under the first and second sentence of this paragraph), to the extent
necessary, such that the total value of Plan benefits retained by the Senior
Officer, when added to the Additional Payment, will total twenty-five thousand
dollars ($25,000.00). This sum of twenty-five thousand dollars ($25,000.00),
which the Senior Officer shall retain and/or continue to defer, shall be treated
as consideration for the Senior Officer's completion and non-revocation of the
Release. Any deferred amounts remaining after the repayment (or forfeiture)
required by this Section J.2 will continue to accrue interest and will be
payable as provided under the applicable election to defer.

K.    TERMS AND CONDITIONS OF EXISTING PLANS AND PROGRAMS

Except as otherwise specifically provided for in this Plan, a Senior Officer's
rights and benefits under any of the Company's other employee and Senior Officer
level compensation, incentive, benefit and/or perquisite plans and programs,
including annual and long term incentive plans, continue to be subject to the
terms of those plans and programs as they may be modified or amended from time
to time or terminated in accordance with the Company's reservation of rights to
so modify, amend or terminate. In the event there is a conflict between the
content in this Plan and the terms of the respective compensation, incentive,

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benefit and/or perquisite plan documents, the compensation, incentive, benefit
and perquisite plan or program documents will control and govern the operation
of the plans.

Subject to Section I.2 (pertaining to short term disability payments), no
payment or benefit pursuant to this Plan will be reduced for contributions to or
benefits under, or be recognized under, any other AT&T employee or Senior
Officer level benefit plan, program or arrangement.

L.    PLAN ADMINISTRATION

AT&T is the Plan Administrator and a named fiduciary of the Plan. AT&T has
delegated sole authority and responsibility to administer this Plan to AT&T's
Executive Vice President - Human Resources, or his or her delegate, and he or
she shall make all determinations regarding the interpretation and
administration of this Plan. The Executive Vice President - Human Resources, or
his or her delegate, shall have sole and complete discretionary authority to
determine such matters.

The Executive Vice President - Human Resources is also a named fiduciary who
shall serve as the final review authority under this Plan, and shall have sole
and complete discretionary authority to determine conclusively for all parties
and in accordance with the terms of the documents or instruments governing the
Plan, any and all questions arising from the administration of this Plan and
interpretation of all Plan provisions, determination of all questions relating
to participation of eligible Senior Officers and eligibility for benefits,
determination of all relevant facts, the amount and type of benefits payable to
any Senior Officer, beneficiary or estate, and the construction of all terms of
this Plan. All determinations and decisions of the named fiduciary are
conclusive and binding on all parties and not subject to further review. The
Executive Vice President - Human Resources has delegated to the AT&T Executive
Benefits Organization the authority to review all initial claims for payments
and benefits under the terms of this Plan. The Executive Vice President - Human
Resources shall afford a full and fair review of any denial of a claim by the
AT&T Executive Benefits Organization for payments under the terms of this Plan.
If there is a situation that requires an administrator who is also a Participant
or a CIC Eligible Senior Officer to make judgment(s) about himself/herself, such
administrator will automatically be recused and replaced by another
administrator named by the Executive Vice President - Human Resources.

The Plan Administrator shall have the right, in its sole discretion, to reduce
or offset all or any portions of payments described in Sections F or I or
Appendix A of the Plan to the extent necessary to satisfy in whole or in part
any expenses, obligations, or liabilities that are owed by a Participant to the
Company or any employee benefit plan or related trust as of the Participant's
Final Payroll Date.

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1.    CLAIM PROCEDURE

A Senior Officer, or his or her estate or beneficiary (a "Claimant"), who either
qualifies or believes the Senior Officer qualifies as a Participant or a CIC
Eligible Senior Officer, may file a claim in writing for benefits under this
Plan, if the Claimant believes that the Claimant has not received benefits to
which the Claimant is entitled under this Plan. Such claim may only relate to a
matter under this Plan and not to any matter under the Guidelines or any other
AT&T policy, practice or guidelines.

The written claim should be sent to the AT&T Executive Benefits Organization,
One AT&T Way, Bedminster, New Jersey 07921, or to an alternative address
identified and communicated to the Claimant. The written claim should be sent
within sixty (60) days of the date of the occurrence of facts giving rise to the
claim.

If the claim is denied, in whole or in part, the Claimant will receive written
notice from the AT&T Executive Benefits Organization (or the successor of such
organization's responsibilities). This information will be provided within
ninety (90) days of the date the claim was received.

      This written notice will include:

      -     the specific reason or reasons for the denial;

      -     specific reference to pertinent Plan provisions on which the denial
            was based;

      -     a description of any additional material or information necessary to
            perfect the claim and an explanation of why such material or
            information is necessary; and

      -     appropriate information as to the steps to be taken if the Claimant
            desires to submit the claim for arbitration.

In some cases, more than ninety (90) days may be needed to make a decision. In
such cases, the Claimant will be notified in writing, within the initial
ninety-day period, of the reason more time is needed. An additional ninety (90)
days may be taken to make the decision if the Claimant is sent such a notice.
The extension notice will show the date by which the decision will be sent.

If no response is received within the ninety-day period, the claim is considered
denied.

The procedure for appealing a denied claim is set forth below in Section M,
Arbitration.

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PLEASE NOTE THAT THE PLAN REQUIRES THAT A CLAIMANT PURSUE ALL THE CLAIM AND
APPEAL RIGHTS DESCRIBED ABOVE BEFORE SEEKING ANY REMEDIES OR RELIEF THAT MAY BE
PROVIDED UNDER THE ARBITRATION PROCEDURES SET FORTH IN SECTION M OF THIS PLAN,
OR OTHERWISE, AND TO PURSUE THE ARBITRATION PROCEDURES SET FORTH IN SECTION M OF
THIS PLAN PRIOR TO COMMENCEMENT OF ANY CIVIL ACTION IN FEDERAL COURT.

Official Plan Name:

AT&T Senior Officer Separation Plan

Plan Sponsor and Administrator:

AT&T Corp.
One AT&T Way
Bedminster, New Jersey 07921

Employer Identification Number: 13-4924710

Type of Plan:

Welfare benefit plan; deferred compensation plan.

Type of Administration and Funding:

The Plan is unfunded.

Agent for Legal Process:

Once all claim procedures detailed herein have been exhausted, if a Claimant
wants to begin arbitration, service of legal process may be made upon the plan
administrator to the attention of the AT&T Executive Vice President - Human
Resources (or the successor of such officer's responsibilities).

Plan Document:

This document serves as the plan document for the AT&T Senior Officer Separation
Plan.

Effective Date:

The Effective Date of this amended and restated Plan shall be May 19, 2004.

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RIGHTS UNDER ERISA. The Plan is an employee welfare benefit plan and a deferred
compensation plan governed by ERISA. Senior Officers are entitled to certain
rights and protections under ERISA.

In addition to creating rights for Participants, ERISA imposes duties upon the
people who are responsible for the operation of the Plan. The people who operate
and interpret the Plan, called "fiduciaries" of the Plan, have a duty to do so
prudently, in the interest of all Participants and beneficiaries.

No one, including the Company, may terminate a Senior Officer's employment for
the purpose of preventing the Senior Officer from receiving the benefits to
which he or she is entitled, and no one, including the Company or any other
person, may discriminate against a Senior Officer in any other way for that
purpose or in order to keep him or her from exercising his or her rights under
ERISA.

If the Senior Officer's benefit request is denied in whole or in part, such
Senior Officer has the right to have the Plan Administrator review and
reconsider the benefit request.

Under ERISA, there are steps a Senior Officer can take to enforce the above
rights. For instance, if a Senior Officer requests materials from the Plan and
does not receive them within thirty (30) days, he or she may file suit in
federal court. In such a case, the court may require the Plan Administrator to
provide the materials and pay the Senior Officer up to one hundred ten dollars
($110.00) a day until the materials are produced unless they were not sent or
received because of reasons beyond the control of the Administrator.

If a Senior Officer's benefit request is denied or ignored, in whole or in part,
and the Senior Officer has unsuccessfully pursued his or her claim for benefits
through the Arbitration procedure set forth in Section M of this Plan, the
Senior Officer may file suit in a state or federal court. If a Senior Officer
alleges discrimination for asserting his or her rights, the Senior Officer may
seek assistance from the US Department of Labor, or the Senior Officer may file
suit in a federal court. The court will decide who should pay court costs and
legal fees. If the Senior Officer is successful, the court may order the person
sued to pay these costs and fees. If the Senior Officer loses, the court may
order the claimant to pay these costs and fees, for example, if it finds the
claim is frivolous.

If a Senior Officer has any questions about this statement or about his or her
rights under ERISA, he or she should contact the nearest Area Office of the
Employee Benefits Security Administration, US Department of Labor.

If a Senior Officer has any other questions, he or she should contact AT&T's
Executive Benefits Organization, One AT&T Way, Bedminster, New
Jersey 07921 (or any successor office).

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M.    ARBITRATION

Any dispute, controversy, or question arising under, out of, or relating to this
Plan remaining after a Claimant has filed a claim with the AT&T Executive
Benefits Organization, in accordance with the procedures set forth in or adopted
pursuant to the provisions of Section L hereof, and been denied, shall be
referred for arbitration in the State of New Jersey to a neutral arbitrator
jointly selected by the Claimant and AT&T as a condition precedent to the
commencement of a civil action by the Claimant in a federal court. The
proceeding shall be governed by the Commercial Rules of the American Arbitration
Association then in effect or such rules last in effect (in the event such
Association is no longer in existence) and the decision of the arbitrator shall
be governed by the rule of law, and in particular ERISA and its related rules
and regulations and relevant case law. If the parties are unable to agree upon a
neutral arbitrator within thirty (30) days after the Claimant has given AT&T
written notice of the desire to submit the dispute, controversy or question for
decision as aforesaid, then either party may apply to the American Arbitration
Association for the appointment of a neutral arbitrator, or, if such Association
is not then in existence or does not desire to act in the matter, either party
may apply to the Presiding Judge of the Superior Court of any county in New
Jersey for the appointment of a neutral arbitrator to hear the parties and
settle the dispute, controversy or question. Such right to submit a dispute
arising hereunder to arbitration and the decision of the neutral arbitrator
shall be final, conclusive and binding on all interested persons and no action
at law or in equity shall be instituted, or, if instituted, further prosecuted
by either party other than to enforce the award of the neutral arbitrator. The
Claimant and AT&T shall each bear their own costs and attorneys' fees, except
that AT&T shall pay the costs of any arbitrator appointed hereunder as well as
the costs of any copy of any official transcript of the proceeding.

N.    PLAN DOCUMENTS

This document shall serve as both the Summary Plan Description and the official
Plan document that regulates the operation of this Plan.

O.    ASSIGNMENT OR ALIENATION

Subject to applicable federal income tax laws, no payments or benefits under
this Plan or any right or interest in such payments or benefits shall be
assignable or subject in any manner to anticipation, alienation, sale, transfer,
assignment, claims of creditors, garnishment, pledge, execution, attachment or
encumbrance of any kind, including, but not limited to, pursuant to any domestic
relations order (within the meaning of Section 206(d)(3) of ERISA and Internal
Revenue Code Section 414(p)(1)(B)), and any such attempted disposition shall be
null and void.

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P.    OFFICERS OR DEPARTMENTS

Throughout this Plan, there are references to specific AT&T officers and/or
offices. Such references are intended to include the appropriate officer and/or
office. Any addresses contained herein shall be amended automatically to the
appropriate address whenever necessary to reflect changes in office location or
corporate reorganization.

Q.    SEVERABILITY

If any provision of this Plan or the application thereof to any Senior Officer's
circumstance is held invalid or unenforceable, the remainder of this Plan, and
the application of such provision to other Participants or circumstances, shall
not be affected thereby, and to such end, the provisions of this Plan are to be
severable.

R.    AMENDMENT AND TERMINATION

The Company reserves the right to amend, modify, suspend or terminate this Plan
and any policies, procedures or guidelines for workforce reductions which may be
maintained by the Company, for any reason whatsoever, subject to the provisions
of Section 18 of Appendix A to this Plan. The Executive Vice President - Human
Resources of AT&T (or any successor to that officer's responsibilities), in
addition to any other authority previously granted, has been delegated the
authority to adopt amendments to the Plan, provided the increase or decrease in
Plan costs is not material, as well as amendments required by applicable federal
or state law (or authorized or made desirable by such statutes).

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                                   APPENDIX A

                       AT&T SENIOR OFFICER SEPARATION PLAN
                          CHANGE IN CONTROL PROVISIONS

1.    PURPOSE:

THE CHANGE IN CONTROL BENEFITS DESCRIBED IN APPENDIX A WILL NOT APPLY UNLESS A
CHANGE IN CONTROL OCCURS.

Notwithstanding any terms of the Plan to the contrary, for the two-year period
following a Change in Control (as defined below), (i) the definitions of "Senior
Officer", "Cause" and "Good Reason" that otherwise would have been governed by
Sections A and B, respectively, of the Plan, (ii) the procedure to be followed
in the case of termination of employment for Good Reason that otherwise would
have been governed by Section E.2 of the Plan, and (iii) the Plan benefits that
otherwise would have been governed by Section F of the Plan, shall be determined
exclusively pursuant to the provisions of this Appendix A. Accordingly, the
definition of Senior Officer in Section A of the Plan, the definitions of
"Cause" and "Good Reason" in Section B of the Plan, and Sections E.2 and F of
the Plan shall not apply for the two-year period following a Change in Control.
Except to the extent otherwise specified in this Appendix A, the applicable
definitional, operational, procedural and administrative provisions detailed in
Sections A (other than the definition of "Senior Officer"), B, (other than the
definitions of "Cause" and "Good Reason"), C, D, E (other than the notification
requirements set forth in Section E.2), G, H, I, J, K, L, M, N, O, P, Q and R of
the Plan remain unchanged and will govern the operation of the Plan, including
the provisions of this Appendix A, following a Change in Control.

2.    EFFECTIVE DATE:

The effective date of the Change In Control related provisions of the Plan, as
set forth in this Appendix A, is October 23, 2000, as amended and restated May
19, 2004.

3.    DEFINITIONS:

      BUSINESS RELOCATION BEYOND A REASONABLE COMMUTING DISTANCE - shall mean:

      a change in the Senior Officer's principal work location to a location
that

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      (i)   is more than thirty five (35) highway miles from the Senior
            Officer's principal work location immediately prior to the Change in
            Control; and

      (ii)  increases the Senior Officer's commuting distance in highway
            mileage.

The terms "highway miles" and "highway mileage" shall have the same meanings as
these terms have when used to express the distances between locations by
mapmakers such as the Hagstrom Map Company.

         CAUSE - shall mean:

      (i) commission of a crime, or conviction of a crime, including by a plea
      of guilty or nolo contendere, involving theft, fraud, dishonesty or moral
      turpitude;

      (ii) intentional or grossly negligent disclosure of confidential or trade
      secret information of the Company to anyone not entitled to such
      information, which causes significant harm to the Company;

      (iii) gross omission or gross dereliction of any statutory or common law
      duty of loyalty to the Company, which causes significant harm to the
      Company; or

      (iv) willful violation of the Company's Code of Conduct or any other
      written Company policy, where said violation causes significant harm to
      the Company.

         CHANGE IN CONTROL ("CIC") - shall have the same meaning assigned to
that term in the AT&T 2004 Long Term Incentive Program.

         CIC ELIGIBLE SENIOR OFFICER - shall mean a Senior Officer who, within
two (2) years following a CIC, (a) has his or her employment terminated for
reasons other than (i) Cause or (ii) by reason of becoming eligible for benefits
under any AT&T long-term disability plan, or (b) terminates employment for Good
Reason occurring after a CIC, provided that the Senior Officer has followed the
Notification Procedure set forth in Section 4 of this Appendix A.

         GOOD REASON - with respect to a Senior Officer, shall mean the
occurrence of any of the following events without the Senior Officer's express
written consent:

         (iii)    a Reduction In Authority or Responsibility (as defined below);
                  or

         (iv)     a Reduction in Compensation (as defined below); or

         (v)      a Business Relocation Beyond a Reasonable Commuting Distance
                  (as defined above).

         REDUCTION IN AUTHORITY OR RESPONSIBILITY - shall mean:

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      (iii) the assignment to the Senior Officer of any duties materially
            inconsistent in any respect with the Senior Officer's position
            (including status, offices, titles and reporting requirements), and
            that detract from or reduce the authority, duties or
            responsibilities to which the Senior Officer was assigned
            immediately prior to the date of the Change in Control; or

      (iv)  any other action by the Company which results in a diminution in
            such position, authority, duties or responsibilities.

      Reduction in Authority or Responsibility shall not include:

            (d)   an isolated, insubstantial and inadvertent action taken in
                  good faith and which is remedied by the Company promptly after
                  receipt of notice thereof given by the Senior Officer; or

            (e)   any temporary reduction in authority or responsibility while
                  the Senior Officer is absent from active service on any
                  approved disability or approved leave of absence.

      By way of example, and not by way of limitation, Reduction in Authority or
      Responsibility shall include:

                        (1)   The removal of any division, business or operating
                              unit or other business organization from the
                              direct managerial responsibility of the Senior
                              Officer, or

                        (2)   The material reduction in the size or scope of
                              responsibility or operating budget of any
                              division, business or operating unit or other
                              business organization for which the Senior Officer
                              has direct managerial responsibility, or

                        (3)   A reduction in the Senior Officer's authority to
                              legally bind the Company under the Company's
                              Schedule of Authorization (without the need for
                              another's approval), as in effect immediately
                              prior to the Change in Control.

      REDUCTION IN COMPENSATION - shall mean, with respect to a Senior Officer,
a reduction in the amount or value of any of the following elements of
compensation below the amount or value of such element of compensation in effect
immediately prior to the Change in Control:

            a.    the Senior Officer's annual base salary rate; or

            b.    the Senior Officer's Target Annual Bonus (as defined below)
                  without an offsetting increase in the Senior Officer's annual
                  base salary rate, or

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            c.    the Senior Officer's Target Annual Long Term Incentive
                  Compensation (as defined below), without an offsetting
                  increase in the Senior Officer's annual base salary rate
                  and/or the Senior Officer's Target Annual Bonus.

A Senior Officer's Target Annual Bonus immediately prior to the Change in
Control shall mean the value determined by multiplying the Senior Officer's
Target Annual Bonus percentage in effect on the day preceding the date of the
CIC by his or her annual base salary rate in effect on the day preceding the
date of the CIC.

A Senior Officer's Target Annual Long Term Incentive Compensation immediately
prior to the Change in Control shall mean the total value of the annual
equity-based incentive compensation grants to the Senior Officer, including the
following: (a) "full value equity" compensation, including, but not limited to,
restricted stock, restricted stock units ("RSUs"), performance shares and cash
equivalents, and (b) "non-full value equity" based compensation including, but
not limited to, stock options and stock appreciation rights, in each case
granted as part of the Senior Officer's annual compensation, but shall not
include any special one-time or periodic grant or award, granted or awarded as
part of a hiring package or retention program, agreement or arrangement. In the
event a Change in Control occurs prior to the date on which annual Long Term
Incentive Compensation grants are approved by the Compensation and Employee
Benefits Committee of the AT&T Board of Directors (or by such other management
committee or committee of the AT&T Board of Directors, or by the duly authorized
officers of the successor to AT&T Corp. (for the purpose of this definition,
separately and collectively referred to as the "Committee") for Senior Officers
for such calendar year, Target Annual Long Term Incentive Compensation shall
mean the total value of the annual equity-based incentive compensation grants
for the preceding calendar year.

      (a)   The value of each "full value equity" grant, if any, shall be the
            fair market value ("FMV") of such grant on the date the grant is
            approved by the Committee. The FMV of each "full value equity" grant
            shall be determined by multiplying the number of related AT&T common
            shares by the applicable average of the daily high and low sale
            prices of AT&T common shares on the New York Stock Exchange, or by
            multiplying the number of related common shares of the successor to
            AT&T by the applicable average of the daily high and low sale prices
            of such successor's common shares on the New York Stock Exchange or
            other national exchange on which such shares are listed, as
            appropriate, for the date the grant was approved by the Committee.

      (b)   The value of each "non-full value equity" grant, such as stock
            options and stock appreciation rights ("SARs"), shall equal the per
            option

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      or per SAR value on the date the grant was approved by the Committee,
      based on Black Scholes estimates (or such other option-pricing model,
      deemed acceptable by the Financial Accounting Standards Board for valuing
      options and SARs and utilized by the Committee when considering such
      grant) multiplied by the number of related AT&T common shares in such
      grant, and/or such other amounts determined in the same manner and
      approved by the Committee for the year in which the grant being valued was
      granted.

      For this purpose, the Black Scholes value and FMV of the respective
            components of Target Annual Long Term Incentive Compensation shall
            be updated annually as approved by the Committee.

      SENIOR OFFICER - Shall mean a Senior Officer (as defined in the Plan) who,
immediately prior to a CIC, was an employee of AT&T or an Affiliate (including a
Senior Officer who was receiving benefits under any AT&T short term disability
plan, or was on an approved leave of absence with guaranteed reinstatement
rights), or was a Senior Officer immediately prior to an event which constitutes
Good Reason, and who remains continuously employed by the Company following a
CIC.

      SPECIAL PENSION ENHANCEMENT - shall mean the CIC Credit as defined in the
AT&T Management Pension Plan (as amended by the resolutions of the AT&T Board of
Directors dated October 23, 2000), without regard to whether it is payable under
the AT&T Management Pension Plan or under the AT&T Excess Benefit and
Compensation Plan, or both.

4. NOTIFICATION REQUIREMENTS FOR TERMINATION FOR GOOD REASON:

In the event a Senior Officer determines that Good Reason exists to terminate
his or her employment with the Company, the Senior Officer must notify the
Company in writing of the specific event, within sixty (60) days of the
occurrence of such event, and such notice shall also include the date on which
the Senior Officer will terminate employment with the Company, which date shall
be no earlier than 15 days from the date of such notice. The date set forth in
the notice for termination, or such earlier or later date as the Senior Officer
and the Company shall mutually agree in writing, shall be the Senior Officer's
Final Payroll Date.

Within seven (7) days of the Company's receipt of such written notice, the
Company shall notify the Senior Officer that it agrees or disagrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason. Notwithstanding any provision of the Plan or
this Appendix A giving the Company discretionary authority regarding
administration of the Plan, the Company's determination whether it agrees or

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disagrees with the Senior Officer's determination that the event specified in
the Senior Officer's notice constitutes Good Reason shall be reasonable, based
on all the relevant facts and circumstances. The Arbitrator in any arbitration
proceeding initiated pursuant to Section M of the Plan, in which the existence
of Good Reason is an issue, shall be expressly empowered and directed to review,
de novo, the facts and circumstances claimed by the Senior Officer to constitute
Good Reason.

In the event the Company notifies the Senior Officer that it agrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason, the Senior Officer will terminate employment
with the Company on his or her Final Payroll Date.

In the event the Company notifies the Senior Officer that it disagrees with the
Senior Officer's determination that the event specified in the Senior Officer's
notice constitutes Good Reason, the Senior Officer may terminate his or her
employment on the date specified in the notice (or such later date as the Senior
Officer and the Company may mutually agree in writing) or may elect to continue
his or her employment by so notifying the Company in writing. In either event,
the Senior Officer shall be entitled to pursue a claim in accordance with the
procedures set forth in Section L of the Plan, or to pursue the Arbitration
procedures set out in Section M of the Plan without first filing a claim. If the
Senior Officer's claim, or arbitration, is ultimately concluded in the Senior
Officer's favor, the Senior Officer shall retain the right to receive the
benefits under this Appendix A. The arbitration procedure set forth in Section M
of the Plan shall remain a condition precedent to the commencement by the CIC
Senior Officer of a civil action with respect to any claim for benefits under
the Plan or this Appendix A.

5.    SEVERANCE PAYMENT:

In addition to the Special Pension Enhancement provided under the terms of the
AT&T Management Pension Plan and the AT&T Excess Benefit and Compensation Plan,
a CIC Eligible Senior Officer shall be provided a Severance Payment that is a
lump sum cash payment equal to the sum of (a) three hundred percent (300%) of
the CIC Eligible Senior Officer's highest annual base salary rate in effect on
or after the day preceding the date of the CIC (but ignoring increases in annual
base salary rate attributable solely to any decreases in the value of the CIC
Eligible Senior Officer's Target Annual Bonus and/or Target Annual Long-Term
Incentive, as contemplated by the definition of Reduction in Compensation), plus
(b) three hundred percent (300%) of the CIC Eligible Senior Officer's Target
Annual Bonus for the year in which the CIC occurs (or, if the CIC occurs prior
to the date in a calendar year on which a Senior Officer's Target Annual Bonus
is determined, for the preceding calendar year), minus (c) an amount equal to
ninety percent (90%) of the CIC Eligible Senior Officer's Special Pension
Enhancement.

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The Severance Payment under this Section 5 will be paid in a single lump sum as
soon as administratively feasible after the expiration of the revocation period
indicated in the CIC Eligible Senior Officer's Release without revocation,
unless deferral of such Severance Payment is elected in accordance with Section
6 of this Appendix A below.

6.    DEFERRAL OPTION:

The CIC Eligible Senior Officer may elect to defer receipt of the Severance
Payment. The CIC Eligible Senior Officer's written election must be submitted to
the AT&T Executive Benefits Organization, or successor organization, not later
than the day prior to the date on which the Release is executed. A copy of the
election form to be completed is attached as Appendix C. Deferral may be for a
period of up to five (5) years following the date of the CIC Eligible Senior
Officer's Final Payroll Date, in whole year increments. Payout of the deferred
Severance Payment may be in the form of a lump sum, or up to a maximum of five
(5) approximately equal annual installments, as indicated on the election form.

The first installment from the deferred account (or the single payment, if the
CIC Eligible Senior Officer so elected), including interest thereon, will be
paid by the end of the calendar quarter which immediately follows the first,
second, third, fourth or fifth anniversary (as so elected by the CIC Eligible
Senior Officer) of the CIC Eligible Senior Officer's Final Payroll Date. All
unpaid deferred amounts will continue to accrue interest at the rate of return
set forth below. In the event of a CIC Eligible Senior Officer's death prior to
the payment of all deferred amounts, the unpaid balance shall be paid to his or
her named beneficiary (or to his or her estate, if no beneficiary has been
named) in a lump sum not later than the end of the calendar quarter immediately
following the calendar quarter in which the AT&T Executive Benefits
Organization, or successor organization, receives written notice of such death.

For individuals who were designated as Senior Officers (as defined in the Plan)
as of May 19, 2004, deferred amounts will be credited quarterly with interest
equal to one-quarter (1/4) of the average rate applicable to actively traded
10-year U.S. Treasury Notes for the prior calendar quarter, plus 1.25 percent.
The Company reserves the right to change the interest rate to be credited on
deferred amounts with respect to individuals who were designated as Senior
Officers after May 19, 2004, however, in the absence of such action by the
Company, the interest rate described in the previous sentence will apply. The
crediting of interest on deferred amounts, will commence with the CIC Eligible
Senior Officer's Final Payroll Date, and will be calculated in accordance with
rules and procedures in place for the AT&T Senior Management Incentive Award
Deferral Plan, or the successor to such plan, in effect immediately prior to the
date of the CIC. CIC Eligible Senior Officers who elect to defer amounts under

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this arrangement shall be unsecured general creditors of the Company. The
Company shall establish for each CIC Eligible Senior Officer, an unfunded
bookkeeping account to which deferred amounts (and interest) will be credited,
but the Company shall have no obligation to fund or set aside assets for the
payment of any deferred amounts under this arrangement.

7.    ANNUAL BONUS:

Subject to the second and third sentences of this Section 7, a CIC Eligible
Senior Officer who has performed at least eighty-eight (88) consecutive days of
service to the Company during his or her Termination Year, will be eligible to
receive a prorated portion of the annual incentive applicable to the Termination
Year based on the CIC Eligible Senior Officer's time on the active payroll
during the Termination Year. The prorated portion shall equal the product of the
actual achievement level for the CIC Eligible Senior Officer's annual incentive
for such year, as determined by the Company, calculated in a manner consistent
with the calculation of the annual incentive for similarly situated senior
management employees who were employed throughout the year for which the
calculation is being made, multiplied by a fraction, the numerator of which is
the number of completed months of the CIC Eligible Senior Officer's employment
during the Termination Year (including the last month of employment if the CIC
Eligible Senior Officer's Final Payroll Date is on or after the 15th of the
month) and the denominator of which is 12. If the CIC Eligible Senior Officer's
Final Payroll Date occurs in the same calendar year as the CIC, the CIC Eligible
Senior Officer will have received a prorated portion of his or her annual
incentive with respect to service during such calendar year through the date of
the CIC, in accordance with the terms of the AT&T Management Pay Plan. In such
event, the numerator of the fraction referred to in the second sentence of this
Section 7 shall equal the number of complete months of the CIC Eligible Senior
Officer's employment during the Termination Year after the date of the CIC
(including the month in which the CIC occurs if the CIC occurs prior to the 15th
of the month, as well as the last month of employment if the CIC Eligible Senior
Officer's Final Payroll Date is on or after the 15th of the month).

8.    OUTSTANDING LONG TERM INCENTIVES:

The disposition of all grants under any AT&T long term incentive program,
including any plan previously maintained by McCaw, LIN, TCG, TCI or MediaOne,
including the AT&T Wireless Adjustment Plan, shall be governed by the provisions
of the applicable AT&T long term incentive program.

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9.    CASH AWARDS/PAYMENTS:

Other unvested cash awards/payments, including but not limited to
awards/payments for retention, unpaid signing bonuses and any other cash
payments or awards which have not yet vested, but not including cash in
individual deferral accounts which are subject to their own terms and
conditions, will vest as of the later of the Participant's Final Payroll Date or
upon expiration of the revocation period indicated in the Release without
revocation, and will be paid as soon as administratively feasible following such
revocation period.

10.   EXECUTIVE LIFE INSURANCE PROGRAM:

Notwithstanding the terms and conditions of the AT&T Corp. Executive Life
Insurance Program ("ELIP"), with respect to a CIC Eligible Senior Officer who is
a participant in ELIP and for whom and ELIP policy has been issued (excluding
any term binder), but has not attained his or her Normal Termination Date (as
defined in ELIP) as of his or her Final Payroll Date, the Company shall pay a
lump sum cash payment ("ELIP Payment") to the CIC Eligible Senior Officer (or to
his or her assignee, as applicable) as soon as administratively feasible after
the expiration of the revocation period indicated in the CIC Eligible Senior
Officer's Release without revocation. The ELIP Payment shall be equal to the sum
of (x) plus (y) where (x) equals the present value, as of the date of the CIC
Eligible Senior Officer's Final Payroll Date, of any necessary additional
premium payments, estimated, but not guaranteed, (assuming that the discount
rate equals 8% and taking into account the ELIP policy cash value as of the
month end immediately prior to the CIC Eligible Senior Officer's Final Payroll
Date), to be sufficient to provide for the continuation of the insurance
coverage under the ELIP Policy (based on assumptions that are consistent with
the assumptions under the ELIP policy used immediately prior to the CIC
including, but not limited to, the annual crediting rate of the ELIP policy)
with projected coverage equal to the applicable benefit amount (as defined in
ELIP and taking into account the election of the Participant, if any, to
continue coverage previously available under the AT&T Senior Manager Universal
Life Insurance Program at the rate of two and one-half (2.5) times his or her
final annual base salary rate, rather than the current ELIP policy coverage of
three times a Participant's annual base salary rate prior to the Participant's
Final Payroll Date , and two times annual base salary rate after the
Participant's Final Payroll Date) as if the CIC Eligible Senior Officer had
continued in active employment until becoming Eligible for Retirement Related
Benefits and assuming that his or her annual base salary rate remains fixed in
an amount equal to his or her highest base salary rate in effect on or after the
day preceding the date of the CIC, (but ignoring increases in annual base salary
rate attributable solely to any decreases in the value of the CIC Eligible
Senior Officer's Target Annual Bonus and/or Target Annual Long-Term Incentive,
as contemplated by the definition of "Reduction in Compensation" set forth
above) and (y) equals the amount (the "tax adjustment payment"), calculated in
accordance with AT&T's practice for Senior Officers as

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in effect immediately prior to the CIC, to cover the Federal income and FICA
(Medicare portion) taxes estimated to be incurred by the CIC Eligible Senior
Officer by reason of the lump sum cash payment and the tax adjustment payment
provided for in this section. Such CIC Eligible Senior Officer shall not be
entitled to any additional or future payments from the Company under ELIP.

In the event a Participant is covered only by a term binder as of his or her
Final Payroll Date, such term insurance will cease on his or her Final Payroll
Date.

11.   FINANCIAL COUNSELING:

A CIC Eligible Senior Officer shall receive a lump sum payment estimated by the
Company in its sole discretion to be sufficient to provide, for a period of two
(2) years after the CIC Eligible Senior Officer's Final Payroll Date, financial
counseling services from a qualified financial counselor, plus a tax adjustment
payment equal to the amount, calculated in accordance with AT&T's practice for
Senior Officers as in effect immediately prior to the CIC, to cover the Federal
income and FICA (Medicare portion) taxes estimated to be incurred by the CIC
Eligible Senior Officer by reason of the lump sum payment for financial
counseling services and the tax adjustment payment provided for in this section.
Payment shall be made as soon as administratively feasible following the CIC
Eligible Senior Officer's Final Payroll Date and the expiration of the
revocation period indicated in the Release without revocation. A CIC Eligible
Senior Officer shall not be entitled to any additional or future payments from
the Company with respect to financial counseling or related services provided to
the CIC Eligible Senior Officer after his or her Final Payroll Date.

12.   AT&T TOLL DISCOUNT:

The CIC Eligible Senior Officer will be eligible for toll reimbursement through
the AT&T Toll Discount Program under the terms and conditions that apply to
senior management employees Eligible for Retirement-Related Benefits, under the
same terms and conditions that applied immediately prior to the CIC to active
senior management employees.

13.   VACATION:

A CIC Eligible Senior Officer should make every reasonable effort, consistent
with the needs of the business, to use all vacation, personal days, and floating
holidays to which he or she is eligible before his or her Final Payroll Date. If
the CIC Eligible Senior Officer is unable to do so, he or she will be paid for
any unused earned vacation days (but not for any unearned vacation days) for the
calendar year in which his or her Final Payroll Date occurs and for any approved
and unexpired carryover days from the prior year in accordance with AT&T policy
at that time. The CIC Eligible Senior Officer will not receive pay in lieu of
floating holidays and management personal days if these days are not taken prior
to his

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or her Final Payroll Date, except for those CIC Eligible Senior Officers in the
states of California, Illinois or North Dakota, who will receive such payments
as may be mandated by state law.

14.   MEDICAL/DENTAL COVERAGE:

The extension and cost of medical and dental coverage for a CIC Eligible Senior
Officer who is Eligible for Retirement-Related Benefits will be in accordance
with the terms of the AT&T Corp. Postretirement Welfare Benefits Plan, or the
successor to such plan, as amended from time to time. The Company will continue
coverage under the AT&T Medical Expense Plan and/or the AT&T Dental Expense Plan
for Active Employees, respectively, for each CIC Eligible Senior Officer who is
not Eligible for Retirement-Related Benefits, and his or her Class I dependents,
Domestic Partner and/or Domestic Partner's Children (as those terms are defined
in the AT&T Medical Expense Plan) (provided that such Class I dependents,
Domestic Partner and/or Domestic Partner's Children were covered by the AT&T
Medical Expense Plan and/or the AT&T Dental Expense Plan for Active Employees,
or the successors to such plans, immediately prior to the CIC Eligible Senior
Officer's Final Payroll Date), for up to eighteen (18) months following the
month in which occurs the CIC Eligible Senior Officer's Final Payroll Date.
Company-provided continuation of coverage under the AT&T Medical Expense Plan
and/or the AT&T Dental Expense Plan for Active Employees, or the successors to
such plans, as the plans may be amended from time to time, shall run
concurrently with any rights to continuation of coverage the CIC Eligible Senior
Officer and/or his or her eligible dependents may otherwise have under COBRA.

If, at the end of the 18-month COBRA period, the CIC Eligible Senior Officer is
not covered under another group health plan, the Company will make medical
coverage (not dental coverage) available for the CIC Eligible Senior Officer and
his or her Class I dependents, Domestic Partner and/or Domestic Partner's
Children under the AT&T Separation Medical Plan, or the successor to such plan,
on the same basis as for certain former senior managers. Should the Participant
elect to take this coverage, the CIC Eligible Senior Officer will be responsible
for the same portion of the annual premium for this medical coverage as is then
applicable to similarly situated former senior managers covered under the AT&T
Separation Medical Plan. Continuation of coverage under the AT&T Separation
Medical Plan after the CIC Eligible Senior Officer's death is available to the
CIC Eligible Senior Officer's Class I dependents, Domestic Partner and/or
Domestic Partner's Children, if such dependents pay 100% of the annual premium
for coverage. There will be no continuing dental coverage for the CIC Eligible
Senior Officer or his or her Class I dependents, Domestic Partner and/or
Domestic Partner's Children after the end of eighteen (18) months following the
month in which occurs the CIC Eligible Senior Officer's Final Payroll Date,
except as may otherwise be required by law. The Participant should immediately
notify the Company if he or she becomes covered under

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another group health plan, at which time the Company's provision of medical
coverage for the Participant and his or her Class I dependents, Domestic Partner
and/or Domestic Partner's Children will cease.

All coverage continued for a CIC Eligible Senior Officer (and his or her
eligible dependent(s)) will be the same as the coverage provided to the CIC
Eligible Senior Officer while an active employee, to the extent available,
subject to the terms of the AT&T Medical Expense Plan and/or the AT&T Dental
Expense Plan or the AT&T Separation Medical Plan or the successors to such
plans, as those plans may be amended from time to time.

15.   TRANSITION COUNSELING:

A CIC Eligible Senior Officer will be entitled to receive the services of a
Company-paid and Company-approved outplacement or career transition consultant
in accordance with AT&T's current practices for Senior Officers in effect as of
the CIC Eligible Senior Officer's Final Payroll Date; provided, however, that
commencement of such transition counseling services, if desired, must begin
prior to the first anniversary of the CIC Eligible Senior Officer's Final
Payroll Date.

16.   EXCISE TAX:

(a)   If any element of compensation or benefit provided to a CIC Eligible
Senior Officer under the terms of the Plan, or under any other plan, program,
policy or other arrangement ("Benefit"), either alone or in combination with
other elements of compensation and benefits paid or provided to such CIC
Eligible Senior Officer, constitutes an "excess parachute payment", as that term
is defined in Section 280G of the Internal Revenue Code and the regulations
thereunder, and subjects such CIC Eligible Senior Officer to the excise tax
pursuant to Section 4999 of the Internal Revenue Code, and any interest and
penalties thereon (collectively, the "Excise Tax"), then such CIC Eligible
Senior Officer shall be entitled to an additional lump-sum cash payment from the
Company (the "Excise Tax Adjustment Payment"), subject to mandatory withholding,
in an amount equal to the Excise Taxes (including the Excise Tax attributable to
the Excise Tax Adjustment Payment related to the Benefit) plus any income and
FICA taxes and any interest and penalties thereon attributable to the Excise Tax
Adjustment Payment. For purposes of calculating an Excise Tax Adjustment Payment
to any CIC Eligible Senior Officer in any year, it shall be assumed that the CIC
Eligible Senior Officer is subject to Federal and applicable state and local
income taxes at the highest marginal Federal and applicable state and local
income tax rates, respectively, for the year in which the Excise Tax Adjustment
Payment is paid. Also, the Excise Tax Adjustment Payment to any CIC Eligible
Senior Officer shall reflect the Federal tax benefits attributable to the
deduction of applicable state and local income taxes.

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(b)   Subject to the provisions of Section 16(c) below, all determinations
required to be made under this Section 16, including whether and when an Excise
Tax Adjustment Payment is required and the amount of such Excise Tax Adjustment
Payment and the assumptions utilized in arriving at such determinations, shall
be made by an independent accounting firm chosen by the Company (the "Accounting
Firm"). The Accounting Firm shall provide detailed supporting calculations to
the Company and to the CIC Eligible Senior Officer within thirty (30) business
days of the receipt of notice from the Company or the CIC Eligible Senior
Officer that there has been a Benefit provided to which this Section 16 applies
(or such earlier time as requested by the Company). Any Excise Tax Adjustment
Payment, as determined pursuant to this Section 16(b), shall be paid by the
Company to the CIC Eligible Senior Officer within fifteen (15) business days of
the receipt of the Accounting Firm's determination.

(c)   (i) If it is established pursuant to a final determination of a court or
an Internal Revenue Service proceeding, or in the opinion of independent counsel
agreed upon by the Company and the CIC Eligible Senior Officer, that the Excise
Tax payable by the CIC Eligible Senior Officer on the Benefit is less than the
amount initially taken into account under Section 16(a) for purposes of
calculating the Excise Tax Adjustment Payment related to such Benefit, the
Accounting Firm shall recalculate the Excise Tax Adjustment Payment to reflect
the actual Excise Tax related to such Benefit. Within thirty (30) business days
following the CIC Eligible Senior Officer's receipt of notice of the results of
such recalculation from the Accounting Firm and/or the Company, the CIC Eligible
Senior Officer shall repay to the Company the excess of the initial Excise Tax
Adjustment Payment over the recalculated Excise Tax Adjustment Payment.

      (ii)  If it is established pursuant to a final determination of a court or
      an Internal Revenue Service proceeding, or in the opinion of an
      independent counsel agreed upon by the Company and the CIC Eligible Senior
      Officer, that the Excise Tax payable by the CIC Eligible Senior Officer on
      the Benefit is more than the amount initially taken into account under
      Section 16(a) for purposes of calculating the Excise Tax Adjustment
      Payment, the Accounting Firm shall recalculate the Excise Tax Adjustment
      Payment to reflect the actual Excise Tax. Within fifteen (15) business
      days following the Company's receipt of notice of the results of such
      recalculation from the Accounting Firm, the Company shall pay to the CIC
      Eligible Senior Officer the excess of the recalculated Excise Tax
      Adjustment Payment over the initial Excise Tax Adjustment Payment.

(d)   All fees and expenses of the Accounting Firm shall be borne solely by the
Company.

(e)   The CIC Eligible Senior Officer shall notify the Company in writing of any
written claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of an Excise Tax Adjustment Payment or the

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recalculation of an Excise Tax Adjustment Payment. The notification shall
apprise the Company of the nature of such claim, including (1) a copy of the
written claim from the Internal Revenue Service, (2) the identification of the
element of compensation and/or benefit that is the subject of such Internal
Revenue Service claim, and (3) the date on which such claim is requested to be
paid. Such notification shall be given as soon as practicable but no later than
ten (10) business days after the CIC Eligible Senior Officer actually receives
notice in writing of such claim.

Within ten (10) business days following receipt of the notification of the
      Internal Revenue Service written claim from the CIC Eligible Senior
      Officer, the Company shall pay to the CIC Eligible Senior Officer an
      Excise Tax Adjustment Payment, or the excess of a recalculated Excise Tax
      Adjustment Payment over the initial Excise Tax Adjustment Payment, as
      applicable, related to the element of compensation and/or benefit which is
      the subject of the Internal Revenue Service claim. Within ten (10)
      business days following such payment to the CIC Eligible Senior Officer,
      the CIC Eligible Senior Officer shall provide to the Company written
      evidence that he or she had paid the claim to the Internal Revenue Service
      (the United States Treasury).

The failure of the CIC Eligible Senior Officer to properly notify the Company of
      the Internal Revenue Service claim (or to provide any required information
      with respect thereto) shall not affect any rights granted to the CIC
      Eligible Senior Officer under this Section 16, except to the extent that
      the Company is materially prejudiced in the challenge to such claim as a
      direct result of such failure. If the Company notifies the CIC Eligible
      Senior Officer in writing, within sixty (60) business days following
      receipt from the CIC Eligible Senior Officer of notification of the
      Internal Revenue Service claim, that it desires to contest such claim, the
      CIC Eligible Senior Officer shall:

                  (i)   give the Company any information reasonably requested by
            the Company relating to such claim;

                  (ii)  take such action in connection with contesting such
            claim as the Company shall reasonably request in writing from time
            to time including, without limitation, accepting legal
            representation with respect to such claim by an attorney selected by
            the Company and reasonably acceptable to the CIC Eligible Senior
            Officer;

                  (iii) cooperate with the Company in good faith in order to
            effectively contest such claim; and

                  (iv)  permit the Company to participate in any proceedings
            relating to such claim if the Company elects not to assume and
            control the defense of such claim;

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      provided, however, that the Company shall bear and pay directly all costs
      and expenses (including additional interest and penalties) incurred in
      connection with such contest and shall indemnify and hold the CIC Eligible
      Senior Officer harmless, on an after-tax basis, for any Excise Tax, income
      tax and FICA tax (including interest and penalties with respect thereto)
      imposed as a result of such representation and payment of costs and
      expenses. Without limitation on the foregoing provisions of this Section
      16, the Company shall have the right, at its sole option, to assume the
      control of all proceedings in connection with such contest, in which case
      it may pursue or forego any and all administrative appeals, proceedings,
      hearings and conferences with the taxing authority in respect of such
      claim, and may direct the CIC Eligible Senior Officer to sue for a refund
      or contest the claim in any permissible manner, and the CIC Eligible
      Senior Officer agrees to prosecute such contest to a determination before
      any administrative tribunal, in a court of initial jurisdiction and in one
      or more appellate courts, as the Company shall determine; provided, that
      any extension of the statute of limitations relating to payment of tax for
      the taxable year of the CIC Eligible Senior Officer with respect to which
      such contested amount is claimed to be due is limited solely to such
      contested amount. Furthermore, the Company's rights to assume the control
      of the contest shall be limited to issues with respect to which an Excise
      Tax Adjustment Payment would be payable hereunder, and the CIC Eligible
      Senior Officer shall be entitled to settle or contest, as the case may be,
      any other issue raised by the Internal Revenue Service or any other taxing
      authority. To the extent that the contest to the Internal Revenue Service
      claim is successful, the Excise Tax Adjustment Payment related to the
      element of compensation and/or benefit that was the subject of the claim
      shall be recalculated in accordance with the provisions of Section
      16(c)(ii).

17.   LEGAL FEES:

In the event that it shall be necessary or desirable for a CIC Eligible Senior
Officer to retain legal counsel or incur other costs and expenses in connection
with enforcement of his or her rights under the Plan, including this Appendix A,
or other matters directly related to the CIC Eligible Senior Officer's
termination from employment with the Company, the Company shall reimburse the
CIC Eligible Senior Officer for his or her reasonable attorneys' fees and costs
and expenses if a final decision in connection with a material issue of the
litigation (or arbitration) is issued in the CIC Eligible Senior Officer's favor
by an arbitrator or a court of competent jurisdiction.

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18.   NO AMENDMENT:

Notwithstanding any other provision of this Plan, unless required by applicable
law, upon the occurrence of a CIC, no amendment shall be made to the Plan,
including this Appendix A, by the AT&T Board of Directors (or the successor
board), by the Company (or the successor to the Company), by any committee, any
officer, any employee of the Company (or the successor to the Company) or by any
other party, to suspend, modify, or eliminate the level or types of benefits
that are applicable upon the occurrence of a CIC, or to eliminate the
restrictions contained in this sentence, and no such amendment to the AT&T
Senior Officer Separation Plan, including this Appendix A, made in violation of
this provision, shall be effective.

19.   SUCCESSORS:

The obligation of the Company under this Appendix A shall be binding upon any
assignee or successor in interest thereto. The Company shall not merge or
consolidate with any other corporation, or liquidate or dissolve, or transfer
assets or business operations, in a transaction in which the employment of
employees is transferred to such other corporation, or to the purchaser of such
assets or business operations, without making suitable arrangements for the
payment of any benefits that are or may become payable under this Appendix A,
and for the assumption by such successor employer of the obligations set forth
in this Appendix A.

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                               WAIVER AND RELEASE

I am terminating my employment with AT&T Corp., the successor to AT&T Corp., or
one of its subsidiaries or affiliates ("the Company"). In consideration for the
receipt of benefits under Section F of the AT&T Senior Officer Separation Plan
("Plan"), or under Appendix A of the Plan, if applicable, I acknowledge and
agree to the following:

1.    I HAVE BEEN TOLD BY THE COMPANY AND I UNDERSTAND THAT ALL BENEFITS SET
      FORTH IN SECTION F OF THE PLAN, OR UNDER APPENDIX A OF THE PLAN, IF
      APPLICABLE, FROM THE COMPANY ARE CONDITIONED UPON MY SIGNING AND NOT
      REVOKING THIS WAIVER AND RELEASE ("THIS RELEASE" OR "THE RELEASE") ON MY
      FINAL PAYROLL DATE (AS THAT TERM IS DEFINED IN THE PLAN), AND RETURNING IT
      TO THE AT&T EXECUTIVE BENEFITS ORGANIZATION, C/O AON CONSULTING, ROOM
      7C19, 270 DAVIDSON AVENUE, SOMERSET, NJ 08873 ON MY FINAL PAYROLL DATE.

      I UNDERSTAND THAT PURSUANT TO THE TERMS OF THE PLAN, I MUST REPAY AND/OR
      FORFEIT A PORTION OF SUCH BENEFITS, IF WITHIN THE TWO-YEAR PERIOD
      FOLLOWING MY FINAL PAYROLL DATE, I PROVIDE SERVICES (AS AN EMPLOYEE,
      INDEPENDENT CONTRACTOR, CONSULTANT OR OTHERWISE (OTHER THAN TO PARTICIPATE
      IN THE DEFENSE OR PROSECUTION OF A MATTER IN WHICH THE COMPANY IS A
      PARTY)) TO THE COMPANY OR ANY JOINT VENTURE IN WHICH THE COMPANY (DIRECTLY
      OR INDIRECTLY) OWNS ANY EQUITY INTEREST.

2.    I realize that there are various state, local and federal laws that
      prohibit, among other things, employment discrimination on the basis of
      age, sex, race, color, gender, creed, religion, sexual
      preference/orientation, marital status, national origin, mental or
      physical disability, veteran status, and that these laws are enforced
      through the Equal Employment Opportunity Commission ("EEOC"), Department
      of Labor ("DOL") and State or Local Human Rights agencies. Such laws
      include, without limitation, Title VII of the Civil Rights Act of 1964;
      the Family and Medical Leave Act of 1993 ("FMLA"); the Age Discrimination
      in Employment Act of 1964 ("ADEA"); the Americans with Disabilities Act of
      1990 ("ADA"); the Employee Retirement Income Security Act of 1974
      ("ERISA"); 42 U.S.C. Section 1981; the Equal Pay Act; the New Jersey
      Conscientious Employee Protection Act; the New Jersey Law Against
      Discrimination, etc., as each may have been amended; and other state and
      local human or civil rights laws as well as other statutes which regulate
      employment; and the common law of contracts and torts. I hereby waive and
      release any right I may have under these or any other laws with respect to
      my employment and termination of employment at the Company and acknowledge
      that the Company has not (a) discriminated against me, (b) breached any
      contract with me, (c) committed any civil wrong (tort) against me, or (d)
      otherwise acted unlawfully toward me.

      I also hereby waive any right to become, and promise not to consent to
      become, a member of any class in a case in which claims are asserted
      against any Releasee (as defined in Paragraph 3 hereof) that are related
      in any way to my employment or the termination of my employment with the
      Company, and that involve events which have occurred as of the date of
      this Release (defined to mean the date on which

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      Employee signs this Release). If, without my prior knowledge and consent,
      I am made a member of a class in any proceeding, I shall opt out of the
      class at the first opportunity afforded to me after learning of my
      inclusion. In this regard, I agree that I will execute, without objection
      or delay, an "opt-out" form presented to me either by the court in which
      such proceeding is pending or by counsel for any Releasee who is made a
      defendant in any such proceeding.

3.    On behalf of myself, my heirs, executors, administrators, successors and
      assigns, I hereby unconditionally release and discharge the Company, the
      various AT&T Benefit Committees, plans, trusts and trustees, and their
      successors, assigns, affiliates, shareholders, directors, officers,
      representatives, agents and employees (collectively "Releasees" and
      individually "Releasee") from any and all claims, (including claims for
      attorneys' fees and costs), charges, actions and causes of action,
      demands, damages, and liabilities of any kind or character, in law or
      equity, suspected or unsuspected, past or present, that I ever had, may
      now have, or may later assert against any Releasee, arising out of or
      related to my employment or termination of employment with the Company. To
      the fullest extent permitted by law, this Release includes, but is not
      limited to: (a) claims arising under ADEA, Title VII, the ADA, the Equal
      Pay Act, the Older Workers Benefit Protection Act, the Worker Adjustment
      and Retraining Notification Act, ERISA, the FMLA, the ADA, 42 U.S.C.
      Section 1981, the New Jersey Conscientious Employee Protection Act, and
      any other federal, state, or local law prohibiting age, sex, race, color,
      gender, creed, religion, sexual preference/orientation, marital status,
      national origin, mental or physical disability, veteran status, or any
      other form of unlawful discrimination or claim with respect to or arising
      out of my employment with or termination from the Company; (b) claims
      (whether based on common law or otherwise) arising out of or related to
      any contract or employment agreement (whether express or implied); (c)
      claims under any federal, state or local constitutions, statutes, rules or
      regulations; (d) claims (whether based on common law or otherwise) arising
      out of any kind of tortious conduct (whether intentional or otherwise)
      including, but not limited to, wrongful termination, defamation, violation
      of public policy; and (e) claims included in, related to, or which could
      have been included in any presently pending federal, state or local
      lawsuit filed by me or on my behalf against any Releasee, which I agree to
      immediately dismiss with prejudice.

      (For employees working in California) Section 1542 of the Civil Code of
      the State of California states:

      "A general release does not extend to claims which the creditor does not
      know or suspect to exist in his favor at the time of executing the
      release, which if known by him must have materially affected his
      settlement with the debtor."

      Notwithstanding the provisions of Section 1542, and for the purpose of
      implementing a full and complete release and discharge of all Releasees, I
      expressly acknowledge that this Release is intended to include not only
      claims that are known, anticipated or disclosed, but also claims that are
      unknown, unanticipated and undisclosed.

4.    I covenant and agree not to bring any action, suit or administrative
      proceeding contesting the validity of this Release or attempting to
      negate, modify or reform it, nor to sue any Releasee for any reason
      arising out of my employment or termination

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<PAGE>

      thereof, other than a claim contesting the validity of this Release under
      applicable provisions of ADEA. If I breach either Paragraph 3 or 4 hereof,
      I shall: (i) to the extent not prohibited by law, promptly return to the
      Company all consideration received hereunder, except twenty-five thousand
      dollars ($25,000.00), and (ii) pay any Releasee all of their actual
      attorneys' fees and costs incurred in each such action, suit or other
      proceeding, including any and all appeals or petitions therefrom,
      regardless of the outcome. I agree to pay such expenses within thirty (30)
      days of written demand. This Paragraph 4 is not intended to limit me from
      instituting legal action according to the terms of the Plan for the sole
      purpose of a claim for benefits to which I am entitled under the Plan.

      I understand that this Waiver and Release has neither the purpose nor
      intent of interfering with my protected right to file a charge with or
      participate in an investigation or proceeding pursuant to the statutes
      administered and enforced by the EEOC, specifically: the ADEA, the Equal
      Pay Act, Title VII of the Civil Rights Act of 1964 and the ADA.

            I understand that I will not breach this Waiver and Release if I
            file a charge with or participate in an investigation or proceeding
            pursuant to the statutes administered and enforced by the EEOC.
            However, by signing this Waiver and Release, I understand that I
            waive any right I may have to recover money or other relief in any
            lawsuit or proceeding brought by me or by an agency or third party,
            including the EEOC, on my behalf. EXCEPTION: Nothing in this Waiver
            and Release limits my right to participate and recover damages or
            other relief in a case known as "Engers, et al. v. AT&T and AT&T
            Management Pension Plan," Civil Action No. 98-CV-3660 (NHP), which
            alleges ADEA and ERISA violations in AT&T's cash balance pension
            program for management employees and is currently pending before the
            United States District Court for the District of New Jersey.

5.    I understand that this in no way affects any benefits to which I would be
      entitled in the absence of the Plan under any AT&T benefit plan in which I
      participated during my employment, such as the AT&T Pension Plan for
      Management Employees but specifically excluding any other Company plan
      providing for severance or other termination-related benefits.

6.    I have no knowledge of any wrongdoing involving improper or false claims
      against a federal or state governmental agency, other than as I have
      disclosed to the AT&T Law Division.

7.    I agree to return to the Company, on or before my Final Payroll Date, all
      Company property including, but not limited to, files, records, computer
      access codes, computer programs, keys, card key passes, instruction
      manuals, documents, business plans and any copies thereof and other
      property or materials which I received or prepared or helped to prepare in
      connection with my employment with the Company, and to assign to the
      Company all right, title and interest in such property, and any other
      inventions, discoveries or works of authorship created by me during the
      course of my employment.

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8.    I agree that I will submit all vouchers for reasonable business expenses
      prior to my Final Payroll Date or as soon thereafter as is practicable. I
      understand and agree that after my Final Payroll Date I will no longer be
      authorized to incur any expenses, obligations or liabilities on behalf of
      the Company.

9.    I affirm my obligation to keep all proprietary Company information
      confidential and not to disclose it to any third party in the future. As
      used in this Release, the term "Proprietary Company Information" includes,
      but is not necessarily limited to, technical, marketing, business,
      financial or other information which constitutes trade secret information
      or information not available to competitors of the Company, the use or
      disclosure of which might reasonably be construed to be contrary to the
      interests of the Company.

10.   The construction, interpretation and performance of this Release shall be
      governed by the laws of the state of my work location on my Final Payroll
      Date without regard to that state's conflict of laws rules and principles.

11.   In the event that any one or more of the provisions contained in the
      Release shall for any reason be held to be unenforceable in any respect
      under the law of any state or of the United States of America, such
      unenforceability shall not affect any other provisions of this Release,
      but, with respect only to that jurisdiction holding the provision to be
      unenforceable, this Release shall then be construed as if such
      unenforceable provision or provisions had never been contained herein.

12.   I understand that I have the right to consult with an attorney before
      signing the Release and that the Company has advised me to do so. I have
      45 days to consider the Release before signing it, and I may revoke the
      Release within seven (7) calendar days (15 days in Minnesota) after
      signing it. Revocation must be made by delivery of written notice of
      revocation to AT&T's Executive Benefits Organization, c/o Aon Consulting,
      Room 7C19, 270 Davidson Avenue, Somerset, NJ 08873.

13.   This contains the entire agreement between the Company and me and fully
      supersedes any and all prior agreements or understandings pertaining to
      the subject matter hereof (including any employment agreements, severance
      or separation agreements, arrangements, and offer letters) and all such
      prior agreements are null and void in their entirety and of no force and
      effect. I represent and acknowledge that in executing this Release, I have
      not relied upon any representation or statement not set forth herein made
      by any of the Releasees or by any of the Releasees' agents,
      representatives or attorneys with regard to the subject matter of this
      Release.

BY SIGNING THIS WAIVER AND RELEASE, I STATE THAT: I HAVE READ IT; I UNDERSTAND
IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I AGREE WITH EVERYTHING IN IT;
THE COMPANY HAS ADVISED ME TO CONSULT AN ATTORNEY BEFORE SIGNING IT; AND I HAVE
SIGNED IT KNOWINGLY AND VOLUNTARILY.

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<PAGE>

                                               _________________________________
________________________
          Date                                        Employee Signature

                                               _________________________________
                                                    Employee Name Printed

                                               _________________________________
                                                Employee Social Security Number

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                         ADDENDUM TO WAIVER AND RELEASE

                        IMPORTANT NOTICE REGARDING RIGHTS
                YOU ARE WAIVING BY SIGNING THE FOREGOING RELEASE

NOTICE: IF YOU WORKED FOR A BELL SYSTEM COMPANY AND TOOK A PREGNANCY-RELATED
LEAVE OF ABSENCE AT ANY TIME PRIOR TO APRIL 29, 1979, YOU MAY BE GIVING UP LEGAL
RIGHTS TO POSSIBLE ADDITIONAL NET CREDITED SERVICE ("NCS") CURRENTLY AT ISSUE IN
A PENDING CLASS ACTION LAWSUIT.

Currently, the lawsuit of Hulteen, et al. v. AT&T Corp, AT&T Management Pension
Plan, AT&T Pension Plan, and AT&T Employees' Benefit Committee, Civil Action No.
C01 1122 MJJ, is pending before the United States District Court for the
Northern District of California. The plaintiffs in the lawsuit allege on behalf
of themselves and all other similarly affected female employees that, because
prior to April 29, 1979, while working at a Bell System Company, they did not
receive Net Credited Service ("NCS") for the entire time they were disabled due
to pregnancy, while employees disabled for any other reason than pregnancy did
receive full NCS, they were discriminated against based on gender in violation
of Title VII. The plaintiffs also claim that these events violate ERISA. The
plaintiffs also seek NCS for any time that they and all other similarly affected
female employees were forced to be on leave when they were willing and able to
work. Through the lawsuit, the plaintiffs seek to have their NCS dates and those
of similarly situated women adjusted and to recover pension benefits and any
other benefits denied to them due to insufficient NCS, including but not limited
to the benefits from any early retirement opportunity for which they did not
have enough NCS to qualify. The Court has ordered that this notice be provided
to employees who are considering whether or not to sign this release so that
they know that they are giving up important legal rights.

The amount of NCS Plaintiffs believe you may be entitled to recover if they are
successful in this lawsuit could depend on your individual situation. Plaintiffs
believe this time you might be entitled to should include:

      -     The time you were DISABLED by pregnancy: For normal pregnancies, a
            woman is usually considered disabled for 6 to 8 weeks after the date
            of birth, but for pregnancies with any complications, a woman is
            usually considered disabled for as long as she is unable to perform
            one or more of her regular job duties. It does not include time you
            were out of work for childcare or bonding.

      -     The NCS you lost when you were out of work for a non-pregnancy
            disability which occurred while you were on leave for a
            pregnancy-related disability.

      -     The NCS you lost because your Bell System employer required you to
            begin your pregnancy-related leave earlier than you wanted to leave
            work.

      -     The NCS you lost because your Bell System employer refused to
            reinstate you as soon as you wanted and were able to return to work.

Plaintiffs also believe that the amount of NCS you would be entitled to if they
are successful in this lawsuit would include increased pension benefits. The
amount of benefits to which you might be entitled could be affected by any early
retirement opportunities or other promotional opportunities or benefits you lost
due to insufficient NCS.

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AT&T contends that its pregnancy leave policies and practices have been lawful
at all times before and after the enactment of Title VII and ERISA, and denies
that it violated either of these statutes. AT&T is currently defending the
lawsuit and intends to continue doing so. Thus, AT&T contends that plaintiffs
and any future class members are not entitled to any additional NCS based on
this lawsuit.

If you choose to sign the attached release:

      -     You will receive all applicable benefits under the AT&T Senior
      Officer Separation Plan.

      -     You will not be able to have your NCS adjusted and you will not
      recover any additional pension or other benefits due to you as a result of
      this lawsuit.

      -     You will give up your right to participate in the Hulteen lawsuit as
      a named plaintiff or a class member, and your right, if any, to recover if
      the plaintiffs and plaintiff class prevail in the lawsuit.

If you choose not to sign the attached release:

      -     You will give up all applicable benefits under the AT&T Senior
      Officer Separation Plan that AT&T is offering you.

      -     You may retire and receive your accrued vested pension benefits.

      -     You may participate as a named plaintiff or class member in the
      Hulteen lawsuit. If you are part of the class in the lawsuit and
      plaintiffs prevail, you could receive an NCS adjustment and possible
      additional pension benefits and other benefits associated with an increase
      in NCS.

PLEASE NOTE: The value of the applicable benefits under the AT&T Senior Officer
Separation Plan that you are being offered to sign this release may be greater
than the value of any recovery you could receive should the class be certified
and should plaintiffs prevail in the Hulteen lawsuit. Also, because the court in
Hulteen has not yet determined the scope of the class and has not yet decided on
the merits of the lawsuit, there is no guarantee that you will be entitled to
any recovery.

Therefore, it is in your best interest to consult with an attorney about your
decision of whether or not to sign the foregoing release. Attorneys specializing
in ERISA matters or Title VII discrimination may best be able to assist you in
evaluating your alternatives.

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<PAGE>

                       AT&T SENIOR OFFICER SEPARATION PLAN

ELECTION TO DEFER

Pursuant to (a) Section F.1 of the AT&T Senior Officer Separation Plan ("the
Plan"), or (b) Section 5 of Appendix A of the Plan, if applicable, I will become
entitled to a Severance Payment only if I sign a Waiver and Release (as
referenced in Section G of the Plan) on or after my Final Payroll Date and do
not revoke such Waiver and Release during the revocation period. The Severance
Payment has been determined to be $<<Severance_Payment>>.

If I become entitled to such amount, I hereby elect, as indicated on LINE 1
below, that in lieu of the payment of such amount to me in a lump sum following
my Final Payroll Date, AT&T ("the Company") shall credit such amount to a
separate deferred account established in my name on the books of the Company.
Such deferred account also shall be credited with interest, compounded as of the
end of each calendar quarter, at a rate equal to one-quarter (1/4) of the
average rate applicable to actively traded 10 year U.S. Treasury Notes in effect
for the prior calendar quarter plus one and one quarter percent (1.25%).

I further elect that amounts credited to my deferred account shall be paid to me
in the same number of approximately equal annual installments indicated on LINE
2 below. The first installment from the deferred account (or the single payment,
if I have so elected) shall be paid by the end of the calendar quarter which
immediately follows the calendar quarter in which the anniversary of my Final
Payroll Date occurs, as indicated on LINE 3 below, and subsequent installments
shall be paid in the same calendar quarter in succeeding calendar years.

Undistributed amounts in my deferred account shall continue to be credited with
interest, as described above.

<TABLE>
<CAPTION>
LINE                            SEVERANCE PAYMENT ELECTION
<S>      <C>                                                               <C>
   1.    Defer - (Check "Yes" box if you elect to defer and
         complete Lines 2 and 3 below.)                                    Yes [ ]    No [ ]

   2.    Number of installment payments to self (indicate from
         1 - 5 only if you checked "Yes" box on Line 1.)                   _____ installments

   3.    First installment (or single payment) to be paid by
         the end of the calendar quarter immediately following
         the calendar quarter in which the (1st, 2nd, 3rd,                 _____ anniversary
         4th, or 5th) anniversary of my Final Payroll Date
         occurs.  (Enter number only if you checked "Yes" box
         on Line 1.)
</TABLE>

If I should die prior to the distribution of all amounts credited to my deferred
account, the unpaid balance shall be paid to my beneficiary (or to my estate if
no beneficiary is named) in a lump sum by the end of the calendar quarter
immediately following the calendar quarter in which the Company receives
notification of my death.

All amounts credited to my deferred account shall be unsecured general
obligations of the Company, and amounts credited to my deferred account shall
not be subject to assignment or alienation.

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<PAGE>

<<First_Name>> <<Middle_Initial>> <<Last_Name>>       <<SSN>>
-----------------------------------------------      ---------------------------
Print Name                                           Social Security Number

-----------------------------                        ---------------------------
Signature                                            Date

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<PAGE>

                       AT&T SENIOR OFFICER SEPARATION PLAN

                          PARTICIPANT NOTIFICATION FORM

NAME                                                    SSN:

ADDRESS
ADDRESS

The purpose of this form is to confirm that your employment with AT&T will be
terminating under the terms of the AT&T Senior Officer Separation Plan. Your
Final Payroll Date and the Severance Payment to which you are eligible under
this Plan are set forth below. Please read the entire Plan Document for a
detailed description of all payments and benefits provided by this Plan. Please
note that all payments and benefits are conditioned upon your signing and not
revoking the Waiver and Release.

S.       NCS DATE:                                     BIRTH DATE:

         (NOT) ELIGIBLE FOR (RETIREMENT RELATED        BASE SALARY: $
BENEFITS;
     RULE OF 65) (CUSTOMIZE AS APPROPRIATE)

                                                       TARGET BONUS: $

         FINAL PAYROLL DATE:

         SEVERANCE PAYMENT:

             2 times (sum of Base Salary + Target Bonus)                $
                      (may elect to defer):

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