SBC COMMUNICATIONS INC
SBC COMMUNICATIONS EXECUTIVE HEALTH PLAN
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exhibit10i.htm
<DESCRIPTION>SBC COMMUNICATIONS EXECUTIVE HEALTH PLAN
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<title>Exhibit 10-i
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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10-i</font>


















<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE
HEALTH PLAN<br>

                      (Formerly the SUPPLEMENTAL HEALTH PLAN prior to September 1, 2001)</FONT></H1>




<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective:  January 1, 1987<br>
Revisions Effective: March 19, 2001</font>

<hr>
<br>
<br>

<p align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE HEALTH PLAN<br>

                                               TABLE OF CONTENTS</font></p>


<PRE>
  Section             Subject                                     Page
  -------             -------                                     ----

     1.     Purpose ..............................................  1
     2.     Definitions...........................................  1
     3.     Eligibility ..........................................  2
     4.     (a)  Coverage.........................................  3
            (b)  Substitute Basic Coverage........................  3
     5.     Costs.................................................  4
     6.     Non-Competition ......................................  5
     7.     Administration........................................  6
     8.     Amendments and Termination ...........................  6
</PRE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
1.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Purpose.</u>
The Executive Health Plan ("Plan") provides Eligible Employees and their eligible dependents
with supplemental medical, dental and vision benefits.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Definitions.</u>
For purposes of this Plan, the following words and phrases shall have the meanings
indicated, unless the context clearly indicates otherwise:</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u><b> Chairman.</b></u>
  "Chairman" shall mean the Chairman of the Board of SBC Communications Inc.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u><b>Committee.</b></u>
"Committee" shall mean the Human Resources Committee of the Board of SBC Communications
        Inc.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u><b>Eligible Employee.</b></u>
  "Eligible Employee" shall mean an Officer.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u><b>Officer.</b></u>
  "Officer" shall mean an individual who is designated by the Chairman as eligible to
        participate in the Plan who is an elected officer of SBC or of any SBC subsidiary (direct or indirect).</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u><b>Retirement.</b></u>  "Retirement" shall mean the termination of an Eligible Employee's employment with SBC or
        any of its subsidiaries, for reasons other than death, on or after the earlier of the following
        dates:  (1) the date the Eligible Employee is Retirement Eligible as such term is defined in the SBC
        Supplemental Retirement Income Plan ("SRIP"); or (2) the date the Eligible Employee has attained one
        of the following combinations of age and service at termination of employment on or after April 1,
        1997, except as otherwise indicated below:</FONT></TD>
</TR>
</TABLE>
<BR>
<PRE>
               Net Credited Service                Age
               --------------------                ---
               10 years or more                    65 or older
               20 years or more                    55 or older
               25 years or more                    50 or older
               30 years or more                    Any age
</PRE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
With
respect to an Eligible Employee who is granted an EMP Service Pension under and
pursuant to the provisions of the SBC Pension Benefit Plan - Nonbargained
Program (&#147;SBCPBP&#148;) upon termination of Employment, the term
&#147;Retirement&#148; shall include such Eligible Employee&#146;s termination
of employment.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B><U>Termination
Under EPR</U></B>. In determining whether an Eligible Employee&#146;s
termination of employment under the Enhanced Pension and Retirement Program
(&#147;EPR&#148;) is a Retirement for purposes of this Plan, five years shall be
added to each of age and net credited service (&#147;NCS&#148;). If with such
additional age and years of service, (1) an Eligible Employee upon such
termination of employment under EPR is Retirement Eligible according to the SBC
Supplemental Retirement Income Plan (&#147;SRIP&#148;) or (2) the Eligible
Employee upon such termination of employment under EPR has attained one of the
following combinations of age and service,</FONT></TD>
</TR>
</TABLE>
<BR>

<PRE>
               Actual NCS + 5 Years                Actual Age + 5 Years
               --------------------                --------------------
               10 years or more                    65 or older
               20 years or more                    55 or older
               25 years or more                    50 or older
               30 years or more                    Any age
</PRE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
then
such termination of employment shall be a Retirement for all purposes under this
Plan and the Eligible Employee shall be entitled to the treatment under this
Plan afforded in the case of a termination of employment which is a Retirement.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u><b>SBC.</b></u>
  "SBC" shall mean SBC Communications Inc.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>
Eligibility.</u>  Each Eligible Employee shall be eligible to participate in this Plan along with his or
her eligible dependents. Eligible dependents are those covered under the Eligible Employee's SBC company's
basic managed care medical, dental, and vision care plans ("Basic Plans").</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Provisions of this Plan
will continue in effect during Retirement for each Eligible Employee who became
an Eligible Employee on or after January 1, 1987 but before January 1, 1999.
Dependent coverage will also continue during the Retirement period for an
Eligible Employee who became an Eligible Employee on or after January 1, 1987
but before January 1, 1999. An Eligible Employee who becomes an Eligible
Employee after December 31, 1998 shall not be eligible hereunder for coverage
during Retirement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eligible Employees as of
October 1, 1998 must elect to continue coverage effective January 1, 1999 by
December 31, 1998. An Eligible Employee who becomes an Eligible Employee after
October 1, 1998 shall have 90 days after becoming an Eligible Employee to elect
coverage under this Plan. Coverage will remain in effect as long as the
applicable contribution is paid by the Eligible Employee. However, once an
Eligible Employee terminates coverage he or she may not reinstate such coverage. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(a) <U>Coverage</U>. Subject to the limitations in this Section, this Plan
provides 100% coverage of all medical, dental and vision expenses not covered by
the Eligible Employee&#146;s Basic Plans provided such expenses would qualify as
deductible medical expenses for federal income tax purposes, whether deducted or
not. Notwithstanding any other provision of the Plan to the contrary, an
employee who first becomes an Eligible Employee mid-year and who is enrolled in
SBC sponsored medical plans other than his or her company&#146;s Basic Plans
(e.g., HMO) will be allowed to participate in the Plan for the remainder of the
calendar year along with his or her dependents who are enrolled in such other
SBC sponsored Plans, as if he or she was participating in his or her
company&#146;s Basic Plans. Thereafter, to participate in the Plan, the Eligible
Employee, as well as his or her dependents for whom coverage is desired under
this Plan, must be enrolled in the Basic Plans to have coverage hereunder.
Expenses incurred by any Eligible Employee or any of his or her eligible
dependents under this Plan shall not exceed $50,000 per year per individual.
Effective January 1, 1998, expenses incurred by any Eligible Employee and his or
her eligible dependents under this Plan shall not exceed $100,000 total per Plan
year (i.e., January 1 through December 31). Expenses covered by the Basic Plans
will not be included in these limits. </FONT></TD>
</TR>
</TABLE>
<BR>
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<TD WIDTH=5%></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Claims
will be applied against the various health plans in the following order:</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)    Medicare if participant is eligible for same,</FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)    Group Health Plans,</FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)    CarePlus if elected and applicable,</FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)    Long Term Care Plan if elected and applicable,</FONT></TD>
</TR>
</TABLE>
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 <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
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<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5)    this Plan.</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)
<u>Substitute Basic Coverage</U>. Notwithstanding any other provision of this Plan
to the contrary, if upon Retirement, an Eligible Employee is eligible for
coverage under this Plan during Retirement, but not eligible for coverage under
the Basic Plans, this Plan shall provide all medical, dental and vision expenses
as if such Eligible Employee had been eligible for Non-Network coverage under
the Basic Plans (hereinafter, &#147;Substitute Basic Coverage&#148;). Such
Substitute Basic Coverage shall be subject to the same terms and conditions,
including monthly retiree contributions, copays, etc. (if any), as would be
applicable to the Eligible Employees and dependents if provided under the Basic
Plans and shall constitute such Eligible Employee&#146;s Basic Plans for all
purposes under this Plan. The costs of Substitute Basic Coverage (except for any
monthly contributions, copays, etc.) shall be borne by SBC and shall not be
included in the determination of any Eligible Employee&#146;s annual Plan
contribution amount as provided in Section 5. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</font></td><TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>
Costs.</u>  Except as provided below in this Section, costs and expenses incurred in the operation and
administration of this Plan will be borne by SBC; and each subsidiary will be required to reimburse SBC for
applicable costs and expenses attributable to Eligible Employees employed by it:</FONT></TD>
</TR>
</TABLE>
<BR>
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<TD WIDTH=5%></td><TD WIDTH=95%>
<ul>
<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective January 1, 1999, an Eligible Employee electing coverage under the Plan
will pay for coverage under the Plan while in active service. Such Eligible
Employee&#146;s annual contribution amount will be equal to 10% of SBC&#146;s
actual costs per Eligible Employee for the prior Plan year.</FONT>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective with respect to a retirement occurring on or after January 1, 1999, an
Eligible Employee who became an Eligible Employee before January 1, 1999 and who
elects retirement coverage under the Plan will pay for coverage under the Plan
during retirement. Such Eligible Employee&#146;s annual contribution amount
during retirement will be equal to a percentage of SBC&#146;s actual costs per
Eligible Employee for the prior Plan year according to the following:</FONT>
</ul>
</TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The contribution percentage to be used shall be the lower of the Annual Contribution
Percentage determined using each Eligible Employee&#146;s Age or Years Until
Retirement <U>as of December 31, 1997</U>:</FONT></TD>
</TR>
</TABLE>
<BR>

<PRE>

                                                Annual                                     Annual Contribution
                                             Contribution         Years Until Retirement        Percentage
                          Age                 Percentage     OR
               --------------------------- ----------------- ---- ------------------------ ---------------------
               if age 55 or older                10%              if retirement eligible           10%
               --------------------------- ----------------- ---- ------------------------ ---------------------
               if age 50 or older but            25%              if not retirement          10% plus 5% for
               less than 55                                       eligible                   each whole year*
                                                                                             until retirement
                                                                                             eligibility (not to
                                                                                             exceed 50%)
               --------------------------- ----------------- ---- ------------------------ ---------------------
               if less than age 50               50%
               --------------------------- ----------------- ---- ------------------------ ---------------------
</PRE>
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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*in the event an Eligible
Employee is less than one whole year from retirement eligibility, the Annual
Contribution Percentage shall be determined as if one whole year from retirement
eligibility </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage will remain in
effect as long as the applicable contribution is paid by the Retiree. However,
once a Retiree terminates coverage he or she may not reinstate such coverage. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u>Non-Competition.</U> Notwithstanding any other provision of this Plan, no coverage shall be provided
under this Plan with respect to any Eligible Employee who shall, without the
written consent of SBC, and while employed by SBC or any subsidiary thereof, or
within three (3) years after termination of employment from SBC or any
subsidiary thereof, engage in competition with SBC or any subsidiary thereof or
with any business with which a subsidiary of SBC or an affiliated company has a
substantial interest (collectively referred to herein as &#147;Employer
business&#148;). For purposes of this Plan, engaging in competition with any
Employer business shall mean engaging by Eligible Employee in any business or
activity in the same geographical market where the same or substantially similar
business or activity is being carried on as an Employer business. Such term
shall not include owning a nonsubstantial publicly traded interest as a
shareholder in a business that competes with an Employer business. However,
engaging in competition with an Employer business shall include representing or
providing consulting services to, or being an employee of, any person or entity
that is engaged in competition with any Employer business or that takes a
position adverse to any Employer business. Accordingly, coverage shall not be
provided under this Plan if, within the time period and without the written
consent specified, Eligible Employee either engages directly in competitive
activity or in any capacity in any location becomes employed by, associated
with, or renders service to any company, or parent or affiliate thereof, or any
subsidiary of any of them, if any of them is engaged in competition with an
Employer business, regardless of the position or duties the Eligible Employee
takes and regardless of whether or not the employing company, or the company
that Eligible Employee becomes associated with or renders service to, is itself
engaged in direct competition with an Employer business. </FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP><TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Administration.</U> Subject to the terms of the Plan, the Chairman shall establish such rules as are
deemed necessary for the proper administration of the Plan. SBC will compute a
&#147;gross-up&#148; allowance which will be paid to an Eligible Employee to
offset income tax liabilities incurred as a result of receiving benefits under
this Plan. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP><TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u>Amendments and Termination.</u>  This Plan may be modified or terminated at any time in accordance with
the provisions of SBC's Schedule of Authorizations.</FONT></TD>
</TR>
</TABLE>
<BR>

<hr>


<p align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE<br>
                                                  HEALTH PLAN<br>
                                           ADMINISTRATIVE GUIDELINES</font></p>


                                               TABLE OF CONTENTS
<PRE>
    Section        Subject                                    Page
    -------        -------                                    ----

      1.     General.............................................1
      2.     Coverage Considerations.............................1
      3.     Enrollment..........................................2
      4.     Eligible Charges....................................3
      5.     Annual Limits.......................................3
      6.     Claims Processing...................................3
      7.     I. D. Cards.........................................5
      8.     Prescriptions.......................................5
      9.     Billing.............................................5
      10.    Reports.............................................6
      11.    Accruals............................................6
      12.    Taxes...............................................6

</PRE>

<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Approved:<BR>
Chairman &amp; Chief Executive Officer   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p>


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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
1.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>
General.</u> The purpose of these guidelines is to list the procedures to be followed in administering
the Executive Health Plan ("EHP").</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Senior Vice President -
Human Resources will establish internal procedures and group insurance policies
with health carrier(s) as appropriate to carry out the provisions of the Plan. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Coverage Considerations.</u></FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Eligible Employees:</u></FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage is provided only
for an Eligible Employee covered by a subsidiary&#146;s basic medical plan
(&#147;basic plan&#148;), except as otherwise provided for in Section 4 of the
Plan. </FONT></TD>
</TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage continues during
periods of disability and during retirement in certain circumstances as
described in the Plan. Coverage during such periods shall be the same as
provided to active Eligible Employees. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage for a new Eligible
Employee is effective the first day of the month in which the employee is
declared to be eligible to participate in the Plan by the Chairman. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage will cease on the
last day of the month in which one of the following conditions exist: </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(a)    Eligible Employee is no longer a participant in the Basic Plan</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)
termination of Eligible Employee from active service for reasons other than
disability or the retirement of an Eligible Employee who became an Eligible
Employee before January 1, 1999</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(c)    death of Eligible Employee (unless surviving dependents continue coverage under basic plan)</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(d)    demotion of Eligible Employee so as to no longer be eligible to participate in the Plan</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(e)    transfer to a subsidiary that will not bear expenses for the Eligible Employee to participate
               in the Plan</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(f)    Eligible Employee engages in competitive activity</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(g)    discontinuance of the Plan by SBC or a subsidiary</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Dependents:</u></FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Coverage is provided for dependents of a covered Eligible Employee if the dependents are covered by the basic
plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If coverage for a dependent ceases under the basic plan, coverage under this Plan will cease with the same
effective date.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If coverage for the
Eligible Employee under this Plan ceases for any reason, dependent coverage will
cease with the same effective date except where employee coverage ceases due to
death of the Eligible Employee, the Plan will continue in effect for surviving
dependents as long as the dependents are covered under the basic plan (through
automatic coverage or through payment of basic premiums) and are paying any
applicable premiums under this Plan. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <U>Enrollment</U>. Upon
approval as an Eligible Employee, enrollment in the basic plan and payment of
any applicable premium under this Plan, the Eligible Employee and current
dependents shall be covered under the Plan. The Executive Compensation
Administration (ECA) contact will forward a portfolio to the Eligible Employee
including the following: </FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></td><TD WIDTH=95%>
<ul>
<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     Blank claim forms (5 to 10 copies)</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Blue return envelopes (5 to 10 )</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing instructions</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I. D. Cards with Eligible Employee's name imprinted (for use for Eligible Employee, spouse, and
        eligible dependents)</font>
</ul>
</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a matter of convenience
for the Eligible Employee, the ECA contact will advise the appropriate payroll
office regarding withholding of basic coverage premiums for class II or
sponsored dependents not already enrolled in the basic plan. The premium paid
for dependents is at the rate specified for basic coverage only. There is no
additional premium to be paid for EHP coverage for the dependent. Withholding of
dependent basic premiums for retired Eligible Employees, where applicable, shall
be handled in the same manner as other withholding arrangements for retired
executives. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each month, the ECA contact
will provide the EHP carrier and subsidiary benefit administration groups with a
list of Eligible Employees currently enrolled in the Plan. The ECA contact will
provide updated dependent information to the carrier whenever new or revised
Dependent Enrollment Forms are received from Eligible Employees. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Eligible Charges.</u>
Charges for medical care will be eligible under this Plan if they are also
eligible medical expenses as defined in the Internal Revenue Code. In general,
medical expenses are defined to include any amounts paid for the diagnosis,
cure, mitigation, treatment or prevention of disease or for the purpose of
affecting any structure or function of the body, and transportation for and
essential to medical care. Amounts paid for illegal operations or treatments are
not eligible medical expenses. In addition, expenses incurred which are merely
beneficial to the general health of an individual are also not considered
eligible medical expenses unless they are for the primary purpose of curing a
particular disease or ailment and prescribed by a doctor. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eligible Employees are
encouraged to use basic plan cost management features, including
pre-certification, continued stay, second surgical opinion and designation of
Primary Care Physician. Use of these features is optional for Eligible
Employees. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.
</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Annual Limits.</u>  The annual limits for charges which will be paid under the Plan are specified in the
Plan.  Expenses incurred under provisions of basic medical, dental and vision plans are not counted against
the Plan's limits.  The Plan's limits apply to the following eligible charges:</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) Medical expenses not paid under a basic medical expense plan (deductibles, co-pay amounts,
               excluded charges, etc., but not premiums to enroll dependents in the basic plan); plus</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) Dental expenses not paid under basic dental plan (deductibles, co-pay amounts, excluded charges
               etc., but not premiums to enroll dependents in the basic plan); plus</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></TD> <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c) All vision expenses not covered by basic vision plan, but not premiums to enroll dependents in
               the basic plan</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>When an Eligible Employee
or dependent or the Eligible Employee&#146;s family exhausts annual coverage,
the Eligible Employee will be notified by the carrier. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u> Claims Processing.</u>  Eligible Employees or their Providers (Doctors, Hospitals, etc.) should submit all
basic medical, dental and vision plan and EHP claims to the EHP carrier (United HealthCare).  In no case
should claims be submitted for processing under the procedures of the basic medical, dental and vision plans.
United HealthCare will coordinate processing for both basic and EHP claims to reduce administrative efforts
for Eligible Employees.  Retired Eligible Employees who are eligible for coverage under the Plan and who are
eligible for Medicare should file with Medicare first.  See Medicare Section below.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
To submit a claim, Elibible Employees or their Providers should use a claim form (see Attachment 1) and one
of the blue envelopes provided in the enrollment portfolio. Documentation of
service provided should be attached to the claim form. Additional forms and
envelopes are available from the carrier. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The carrier will receive
completed forms, verify participation and make payment to the Eligible Employee
or to the Provider as appropriate. The Explanation of Benefits statement will be
forwarded to the Eligible Employee when payments are made. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Medical and Dental
Claims</U>. The carrier will allocate claim charges to either basic medical or
dental plan coverage, EHP coverage or non-covered charges. The Eligible Employee
or the Eligible Employee&#146;s Provider will be reimbursed for all charges
except those not eligible under either a basic medical or dental plan or EHP.
The carrier will use the separation of charges between plans to produce reports
and to track against annual limits. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Vision Claims</U>. The
carrier will allocate claim charges to either basic vision plan coverage, EHP
coverage or non-covered charges. The Eligible Employee or the Eligible
Employee&#146;s Provider will be reimbursed for all charges except those not
eligible under either a basic vision plan or EHP. The carrier will use the
separation of charges between plans to produce reports and to track against
annual limits. Eligible Employees should not submit vision claims to carriers
other than the EHP carrier. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Medicare</U>. Any
retired Eligible Employee eligible for coverage under the Plan or his or her
dependents any of whom are eligible for Medicare shall file claims with Medicare
first. Expenses not reimbursed by Medicare should then be filed with United
HealthCare using the Executive Health Plan Claim Form. </FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Coordination by
Administrators</U>. The ECA contact will instruct claims administrators for
basic plans (vision, dental, medical) to forward all Eligible Employee claims to
the EHP carrier for processing. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Release of
Information</U>. If requested by a Provider, it will be necessary for the
Eligible Employee to sign a form to authorize the carrier to obtain additional
information from a Provider. In those cases, the carrier will forward an
information release form directly to the Eligible Employee. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>
I. D. Cards.</u>  Each enrollment portfolio includes I.D. cards which should be signed on the back by the
Eligible Employee except for the Eligible Employee's spouse's card which should be signed by the spouse.  The
dependent's name will be shown on the dependent's card.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Blank cards can be obtained
from the carrier and imprinted locally by the ECA Group. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each card will contain a carrier telephone number dedicated to the EHP.  This number is also on the claim
forms.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u> Prescriptions.</u>  Participants in the EHP should use the Mail Service Prescription Drug Program or
purchase prescriptions from a pharmacy, as appropriate.  The Eligible Employee should attach his/her receipt
for any amount not covered by the basic Plan to a claim form, and forward to the carrier for full
reimbursement.  Only prescription medicines are eligible for reimbursement.  Over-the-counter medicines (cold
tablets, aspirin, etc.) and hygienic supplies (contact lens solution, eye drops, etc.) are not covered under
the plan.
</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u>Billing.</u>  The carrier will issue insurance premium bills at the beginning of each quarter to the
following SBC entities:</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></td><TD WIDTH=95%>
<ul>
<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SBC ECA Group (for corporate staff Eligible Employees)</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each subsidiary's Human Resources/Personal Administration Group (for subsidiary Eligible Employees).</font>
</ul>
</TD>
</TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Quarterly payments are due
to the carrier by the end of the first month in the quarter. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bills will provide sufficient detail to show the following:</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%></td><TD WIDTH=95%>
<ul>
<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amounts above that allocated to basic medical, dental and vision plans</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EHP premiums</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other EHP charges/credits</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SBC code</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>State code</font>

<li><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Individual bills for each Eligible Employee as requested by the employing subsidiary</font>
</ul>
</TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u>Reports.</u>  The carrier will issue quarterly reports to the SBC ECA contact.  These will include
claim-to-premium reconciliation data for use in forecasting end-of-year true-ups and determining whether or
not accruals will be required.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u>Accruals.</u>  If claim-to premium reconciliation data indicates claims are significantly exceeding
premiums during a quarter, accruals should be considered during the year.  At the end of the year, an accrual
is generally required unless a year-end true-up bill is not expected.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.</font></TD> <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<u> Taxes.</u>  If receipt of coverage/benefits under this Plan results in taxable income, an Eligible
Employee's income will be grossed-up.</FONT></TD>
</TR>
</TABLE>
<BR>
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