Common use of ACTUARIAL AND ACCOUNTING METHODOLOGIES AND ASSUMPTIONS Clause in Contracts

ACTUARIAL AND ACCOUNTING METHODOLOGIES AND ASSUMPTIONS. For purposes of this Agreement, unless specifically indicated otherwise: (i) all actuarial methodologies and assumptions used for a particular Plan shall (except to the extent otherwise determined by AT&T and Lucent to be reasonable or necessary) be substantially the same as those used in the actuarial valuation of that Plan used to determine minimum funding requirements under ERISA Section 302 and Code Section 412 for 1996, or, if such Plan is not subject to such minimum funding requirements, used to determine AT&T's deductible contributions under Code Section 419A or, if such Plan is not subject to Code Section 419A, the assumptions used to prepare AT&T's audited financial statements for 1996, as the case may be; and (ii) the value of plan assets shall be the value established for purposes of audited financial statements of the relevant plan or trust for the period ending on the date as of which the valuation is to be made. Lucent Liabilities relating to, arising out of or resulting from the status of Lucent and the Lucent Entities as Participating Companies in AT&T Plans, as provided for in Section 2.2 and all accruals relating thereto shall be determined by AT&T using actuarial assumptions and methodologies (including with respect to demographics, medical trends and other relevant factors) determined by AT&T in a manner consistent with AT&T's practice as in effect on the Participation Commencement Date and in conformance with the generally accepted actuarial principles promulgated by the American Academy of Actuaries, the Code, ERISA, and/or generally accepted accounting principles, as applicable, in each case as interpreted by AT&T consistent with past practice. Except as otherwise contemplated by this Agreement or as required by law, all determinations as to the amount or valuation of any assets of or relating to any AT&T Plan (whether or not such assets are being transferred to a Lucent Plan) shall be made pursuant to procedures to be established by the parties before the Closing Date.

ACTUARIAL AND ACCOUNTING METHODOLOGIES AND ASSUMPTIONS. For purposes of this Agreement, unless specifically indicated otherwise: (i) all actuarial methodologies and assumptions used for a particular Plan shall (except to the extent otherwise determined by AT&T Parent and Lucent Technologies to be reasonable or necessary) be substantially the same as those used in the actuarial valuation of that Plan used to determine minimum funding requirements under ERISA Section (S) 302 and Code Section (S) 412 for 19962001, or, if such Plan is not subject to such minimum funding requirements, used to determine AT&TParent's deductible contributions under Code Section (S) 419A or, if such Plan is not subject to Code Section (S) 419A, the assumptions used to prepare AT&TParent's audited financial statements for 19962000, as the case may be; and (ii) the value of plan assets shall be the value established for purposes of audited financial statements of the relevant plan or trust for the period ending on the date as of which the valuation is to be made. Lucent Technologies Liabilities relating to, arising out of or resulting from the status of Lucent Technologies and the Lucent Technologies Entities as Participating Companies in AT&T Parent Plans, as provided for in Section 2.2 and all accruals relating thereto shall be ----------- determined by AT&T Technologies using actuarial assumptions and methodologies (including methodologies, including, without limitation, assumptions with respect to demographics, medical trends and other relevant factors) , determined by AT&T Technologies in a manner consistent with AT&TParent's practice as in effect on the Participation Commencement Date Assumption Time and in conformance with the generally accepted actuarial principles promulgated by the American Academy of Actuaries, the Code, ERISA, and/or generally accepted accounting principles, as applicable, in each case as interpreted by AT&T Technologies consistent with Parent's past practice. Except as otherwise contemplated by this Agreement or as required by law, all determinations as to the amount or valuation of any assets of or relating to any AT&T Plan (Parent Plan, whether or not such assets are being transferred to a Lucent Technologies Plan) , shall be made pursuant to procedures to be established by the parties before the Closing DateAssumption Time.

ACTUARIAL AND ACCOUNTING METHODOLOGIES AND ASSUMPTIONS. For purposes of this Agreement, unless specifically indicated otherwise: (i) all actuarial methodologies and assumptions used for a particular Plan shall (except to the extent otherwise determined by AT&T Parent and Lucent Technologies to be reasonable or necessary) be substantially the same as those used in the actuarial valuation of that Plan used to determine minimum funding requirements under ERISA Section (S) 302 and Code Section (S) 412 for 19962001, or, if such Plan is not subject to such minimum funding requirements, used to determine AT&TParent's deductible contributions under Code Section (S) 419A or, if such Plan is not subject to Code Section (S) 419A, the assumptions used to prepare AT&TParent's audited financial statements for 19962000, as the case may be; and (ii) the value of plan assets shall be the value established for purposes of audited financial statements of the relevant plan or trust for the period ending on the date as of which the valuation is to be made. Lucent Technologies Liabilities relating to, arising out of or resulting from the status of Lucent Technologies and the Lucent Technologies Entities as Participating Companies in AT&T Parent Plans, as provided for in Section 2.2 and all accruals relating thereto shall be ----------- determined by AT&T Technologies using actuarial assumptions and methodologies (including methodologies, including, without limitation, assumptions with respect to demographics, medical trends and other relevant factors) , determined by AT&T Technologies in a manner consistent with AT&TParent's practice as in effect on the Participation Commencement IPO Date and in conformance with the generally accepted actuarial principles promulgated by the American Academy of Actuaries, the Code, ERISA, and/or generally accepted accounting principles, as applicable, in each case as interpreted by AT&T Technologies consistent with Parent's past practice. Except as otherwise contemplated by this Agreement or as required by law, all determinations as to the amount or valuation of any assets of or relating to any AT&T Plan (Parent Plan, whether or not such assets are being transferred to a Lucent Technologies Plan) , shall be made pursuant to procedures to be established by the parties before the Closing IPO Date.