SBC COMMUNICATIONS INC
SBC OFFICER GUIDELINES
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SBC
Communications Officer Guidelines</FONT></H1>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective July 1, 2000</FONT></TD>
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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revised April 1, 2002</FONT></TD>
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<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>General</u></FONT></H2>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It is the intent of SBC to
provide eligible employees with a communications benefit for the primary purpose
of conducting the business affairs of the SBC companies. In addition, personal experience through familiarity and direct use will enhance
the executives ability to promote the SBC companies products and services to potential customers.</FONT></TD>
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<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Eligibility</u></FONT></H2>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eligible employees shall
include all Officers in all SBC companies. An Officer shall mean an individual
who is designated by the Chairman as eligible to participate in the Plan and who
has been designated as an officer of SBC or of any SBC subsidiary for
compensation purposes on SBC&#146;s records. </font></td>
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Notwithstanding the foregoing, the Chairman may, from time to time, exclude any
Employee or group of Employees from being deemed an "Eligible Employee" under this
Plan.</font></td>
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<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Benefits</u></FONT></H2>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A)
<b>Equipment</b>- Each participant shall be provided with a standard
equipment package for his or her primary residence, along with installation of
all such equipment. Standard equipment and associated installation charges shall
be charged to each participant&#146;s employing company. At the
participant&#146;s discretion, any or all of the standard primary residence
equipment may be declined, added to, or otherwise upgraded; provided, however,
that any additions and/or upgrades shall be at the expense of the participant.
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
   >> Standard Equipment Package - Primary Residence</FONT></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
Key System (with installation) with up to 15 telephone sets, with no more
than 3 of the 15 being cordless units </FONT></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-     up to 3 telephone lines (i.e., phone numbers)</FONT></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-     ISDN line w/modem and installation (4th line)</FONT></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-     fax machine which shares ISDN line</FONT></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-     DSL line and equipment to replace ISDN (when service is available)</FONT></P>


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Each
participant shall be provided with a standard cellular equipment package.
Standard cellular equipment and associated installation charges, if any, shall
be charged to each participant&#146;s employing company.</font></td>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
>>    Standard Equipment Package - Cellular</FONT></P>
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-     One phone number with 2 cellular/PCS units:  one hand held and one automobile
                 installed, or</font></td>
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<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-
Two phone numbers, each having one cellular/PCS device. One number is for
a single piece of hand held equipment and the other number is for a single piece
of vehicle mounted equipment. (This second configuration is necessary at this
time to provide better and safer service - increased access to executives, use
of existing digital and analog features, vehicle mounted technology, and
roaming.) </font></td>
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<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>
      Note: If required for business purposes, additional cellular unit(s)/service
            can be provided outside this policy as a departmental expense with the
            concurrence of the executive's Direct Report to the Chairman .</i></font></td>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B)
<B>Annual Usage</B>- All reasonable usage charges associated with
primary residence equipment and standard cellular equipment packages shall be
charged to each participant&#146;s employing company. Any charges deemed
unreasonable by the Senior Executive Vice President-Human Resources
(&#147;SEVP-HR&#148;) shall be at the expense of the participant.</font></td>
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>>    Annual Usage</FONT></TD>
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- payment for all reasonable usage charges associated with primary residence
equipment including, but not limited to: </FONT></TD>
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-     local service charges;</FONT></TD>
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-     domestic long distance through SWETN or other company issued calling card
                  (calling card(s) for immediate<br>&nbsp;&nbsp;&nbsp; family only, i.e., Class I and Sponsored children);</FONT></TD>
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-     international long distance</FONT></TD>
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<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-
if long distance services provided by Southwestern Bell - business usage
for executive and reasonable personal usage<br>&nbsp;&nbsp;&nbsp; for executive, spouse, and dependent
children; </FONT></TD>
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-     if long distance services not provided by Southwestern Bell - business usage

                     for executive only;</FONT></TD>
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-     SBC subsidiary or affiliate Internet service fees</FONT></TD>
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   - payment for all reasonable usage charges associated  with cellular airtime for
         the standard equipment selected</FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C) Computer equipment
and related services &#150; not provided under this policy. </font></td>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>D) Home security
services not provided under this policy. </font></p>

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E)    Direct TV services - not provided under this policy.
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F)
 Retired Officers are eligible for the same benefits in retirement as
available to active Officers, with the following conditions:</font></td>
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<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)
retired officers retain existing equipment at retirement with associated
maintenance, including any subsequent<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;relocation (replacement is an option only
if, at the discretion of Executive Communications Services (ECS)
group,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;replacement is more cost effective), and </font></td>
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<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii)
retirees are eligible for reasonable international calling privileges if they
have Southwestern Bell Long Distance. </font></td>
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<B>Termination
Under EPR</B>. In determining whether an Eligible Employees 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>
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<PRE>
               <u>Actual NCS + 5 Years</u>          <u>Actual Age + 5 Years</u>
                  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
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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>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Administration</u></font></h1>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The ECS group of the
Official Communications Services organization shall administer the guidelines
and shall be responsible for equipment selection, installation, bill payment,
etc. <B><I>Exceptions to these guidelines must be approved by the SEVP-HR prior
to implementation by the ECS group.</i></b></font></td> </TR>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Taxes</u></font></h1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For active officers, all
domestic long distance through SWETN or other company issued calling card
provided under the guidelines will be considered personal and included as
income. All benefit amounts provided under the guidelines and included as income
will be grossed-up at appropriate tax rates. Income will not be imputed for
documented business use of long distance. None of the above amounts will be
included in base salary for benefit purposes or other compensation
determinations. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For retired officers, all
benefits provided under the guidelines will be considered personal and included
as income. At retirement, the fair market value of all residential and cellular
equipment will be imputed as income, reflecting a transfer of such assets to the
retired officer. Amounts provided under the guidelines and included as income,
including amounts associated with the transfer of communications equipment, will
be grossed-up at appropriate tax rates. </FONT></P>



<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Amendment</U></FONT></H2>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The SEVP-HR shall be
responsible for approving any amendments consistent with the intent of the
guidelines, including, but not limited to changes to the standard equipment
packages. The Company reserves the right to change, modify, or cancel this
program at any time for any reason. </FONT></P>

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