Document:

2011 Incentive Plan

 Exhibit 10.4 
 AT&T INC. 
 2011 Incentive Plan 

 

	Article 1.	Establishment and Purpose. 

  

	 	1.1	Establishment of the Plan. AT&T Inc., a Delaware corporation (the “Company” or “AT&T”), hereby establishes an incentive compensation
plan (the “Plan”), as set forth in this document. 

  

	 	1.2	Purpose of the Plan. The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of Participants to
those of the Company’s shareowners, and by providing Participants with an incentive for outstanding performance. 

  

	 	1.3	Effective Date of the Plan. The Plan is effective on May 1, 2011. 

 

	Article 2.	Definitions. Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the
word is capitalized: 

 (a) “Applicable Law” means the legal requirements relating to the administration
of options and share-based or performance-based awards under any applicable laws of the United States, any other country, and any provincial, state, or local subdivision, any applicable stock exchange or automated quotation system rules or
regulations, as such laws, rules, regulations and requirements shall be in place from time to time. 
 (b) “Award”
means, individually or collectively, a grant or award under this Plan of Stock Options, Restricted Stock (including unrestricted Stock), Restricted Stock Units, Performance Units, or Performance Shares. 

(c) “Award Agreement” means an agreement which may be entered into by each Participant and the Company, setting forth the terms
and provisions applicable to Awards granted to Participants under this Plan. 
 (d) “Board” or “Board of
Directors” means the AT&T Board of Directors. 
 (e) “Cause” means willful and gross misconduct on the part of
an Employee that is materially and demonstrably detrimental to the Company or any Subsidiary as determined by the Company in its sole discretion. 
 (f) “Change in Control” shall be deemed to have occurred if (1) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the shareowners of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the
“beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing twenty percent (20%) or more of the total voting power represented by the Company’s then outstanding
voting securities; or (2) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new Director whose election by the Board of Directors or
nomination 

 
for election by the Company’s shareowners was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the
period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (3) the consummation of a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareowners of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company’s assets. 
 (g) “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 (h) “Committee” means the committee or committees of the Board of Directors given authority to administer the Plan as provided in Article 3. 

(i) “Director” means any individual who is a member of the AT&T Board of Directors. 

(j) “Disability” means, absence of an Employee from work under the relevant Company or Subsidiary long term disability plan.

 (k) “Employee” means any employee of the Company or of one of the Company’s Subsidiaries.
“Employment” means the employment of an Employee by the Company or one of its Subsidiaries. Directors who are not otherwise employed by the Company shall not be considered Employees under this Plan. 

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor Act thereto.

 (m) “Exercise Price” means the price at which a Share may be purchased by a Participant pursuant to an Option, as
determined by the Committee. 
 (n) “Fair Market Value” means the closing price on the New York Stock Exchange
(“NYSE”) for a Share on the relevant date, or if such date was not a trading day, the next preceding trading date, all as determined by the Company. A trading day is any day that the Shares are traded on the NYSE. In lieu of the foregoing,
the Committee may, from time to time, select any other index or measurement to determine the Fair Market Value of Shares under the Plan, including but not limited to an average determined over a period of trading days. 

(o) “Insider” means an Employee who is, on the relevant date, an officer, director, or ten percent (10%) beneficial owner
of the Company, as those terms are defined under Section 16 of the Exchange Act. 
 (p) “Officer Level Employee”
means a Participant who is an officer level Employee for compensation purposes as indicated on the records of AT&T. 
 (q)
“Option” means an option to purchase Shares from AT&T. 
 (r) “Participant” means an Employee or former
Employee who holds an outstanding Award granted under the Plan. 
 (s) “Performance Unit” and “Performance
Share” each mean an Award granted to an Employee pursuant to Article 8 herein. 
 (t) “Retirement” or to
“Retire” means the Participant’s Termination of Employment for any reason other than death, Disability or for Cause, on or after the earlier of the following dates, or 

 
as otherwise provided by the Committee: (1) for Officer Level Employees, the date the Participant is at least age fifty-five (55) and has five (5) years of net credited service; or
(2) the date the Participant has attained one of the following combinations of age and service, except as otherwise indicated below: 
  

			
	 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

 For purposes of this Plan only,
Net Credited Service shall be calculated in the same manner as “Pension Eligibility Service” under the AT&T Pension Benefit Plan – Nonbargained Program (“Pension Plan”), as that may be amended from time to time, except
that service with an Employer shall be counted as though the Employer were a “Participating Company” under the Pension Plan and the Employee was a participant in the Pension Plan. 

(u) “Senior Manager” means a Participant who is a senior manager for compensation purposes as indicated on the records of
AT&T. 
 (v) “Shares” or “Stock” means the shares of common stock of the Company. 

(w) “Subsidiary” means any corporation, partnership, venture or other entity in which AT&T holds, directly or indirectly, a
fifty percent (50%) or greater ownership interest. The Committee may, at its sole discretion, designate, on such terms and conditions as the Committee shall determine, any other corporation, partnership, limited liability company, venture other
entity a Subsidiary for purposes of this Plan. 
 (x) “Termination of Employment” or a similar reference means the
event where the Employee is no longer an Employee of the Company or of any Subsidiary, including but not limited to where the employing company ceases to be a Subsidiary. With respect to any Award that provides “nonqualified deferred
compensation” within the meaning of Section 409A of the Code, “Termination of Employment” shall mean a “separation from service” as defined under Section 409A of the Code. 

 

	Article 3.	Administration. 

  

	 	3.1	The Committee. Administration of the Plan shall be as follows: 

 (a) With respect to Insiders, the Plan and Awards hereunder shall be administered by the Human Resources Committee of the Board or such other committee as may be appointed by the Board for this purpose
(each of the Human Resources Committee and such other committee is the “Disinterested Committee”), where each Director on such Disinterested Committee is a “Non-Employee Director,” as that term is used in Rule 16b-3 under
the Exchange Act (or any successor designation for determining the committee that may administer plans, transactions or awards exempt under Section 16(b) of the Exchange Act), as that rule may be modified from time to time. 

(b) With respect to persons who are not Insiders, the Plan and Awards hereunder shall be administered by each of the Disinterested
Committee and such other committee, if any, to which the Board may delegate such authority (such other Committee shall be the “Non-Insider Committee”), and each such Committee shall have full authority to administer the Plan and all Awards
hereunder, except as otherwise provided herein or by the Board. The Disinterested 

 
Committee may, from time to time, limit the authority of the Non-Insider Committee in any way. Any Committee may be replaced by the Board at any time. 

(c) Except as otherwise indicated from the context, references to the “Committee” in this Plan shall be to either of the
Disinterested Committee or the Non-Insider Committee. 
  

	 	3.2	Authority of the Committee. The Committee shall have complete control over the administration of the Plan and shall have the authority in its sole discretion to
(a) exercise all of the powers granted to it under the Plan, (b) construe, interpret and implement the Plan, grant terms and grant notices, and all Award Agreements, (c) prescribe, amend and rescind rules and regulations relating to
the Plan, including rules governing its own operations, (d) make all determinations necessary or advisable in administering the Plan, (e) correct any defect, supply any omission and reconcile any inconsistency in the Plan, (f) amend
the Plan to reflect changes in applicable law (whether or not the rights of the holder of any Award are adversely affected, unless otherwise provided by the Committee), (g) grant Awards and determine who shall receive Awards, when such Awards
shall be granted and the terms and conditions of such Awards, including, but not limited to, conditioning the exercise, vesting, payout or other term of condition of an Award on the achievement of Performance Goals (defined below), (h) unless
otherwise provided by the Committee, amend any outstanding Award in any respect, not materially adverse to the Participant, including, without limitation, to (1) accelerate the time or times at which the Award becomes vested, unrestricted or
may be exercised (and, in connection with such acceleration, the Committee may provide that any Shares acquired pursuant to such Award shall be Restricted Shares, which are subject to vesting, transfer, forfeiture or repayment provisions similar to
those in the Participant’s underlying Award), (2) accelerate the time or times at which shares of Common Stock are delivered under the Award (and, without limitation on the Committee’s rights, in connection with such acceleration, the
Committee may provide that any shares of Common Stock delivered pursuant to such Award shall be Restricted Shares, which are subject to vesting, transfer, forfeiture or repayment provisions similar to those in the Grantee’s underlying Award),
or (3) waive or amend any goals, restrictions or conditions applicable to such Award, or impose new goals, restrictions and (i) determine at any time whether, to what extent and under what circumstances and method or methods
(1) Awards may be (A) settled in cash, shares of Stock, other securities, other Awards or other property (in which event, the Committee may specify what other effects such settlement will have on the Participant’s Award),
(B) exercised or (C) canceled, forfeited or suspended, (2) Shares, other securities, cash, other Awards or other property and other amounts payable with respect to an Award may be deferred either automatically or at the election of
the Participant or of the Committee, or (3) Awards may be settled by the Company or any of its Subsidiaries or any of its or their designees. 

 No Award may be made under the Plan after April 30, 2021. 
 References to
determinations or other actions by AT&T or the Company, herein, shall mean actions authorized by the Committee, the Chairman of the Board of AT&T, the Senior Executive Vice President of AT&T in charge of Human Resources or their
respective successors or duly authorized delegates, in each case in the discretion of such person, provided, however, only the Disinterested Committee may take action with respect to Insiders with regard to granting or determining the terms of
Awards or other matters that would require the Disinterested Committee to act in order to comply with Rule 16b-3 promulgated under the Exchange Act. 
 All determinations and decisions made by AT&T pursuant to the provisions of the Plan and all related orders or resolutions of the Board shall be final, conclusive, and binding on all persons,
including but not limited to the Company, its stockholders, Employees, Participants, and their estates and beneficiaries. 
  

	Article 4.	Shares Subject to the Plan. 

	 	4.1	Number of Shares. Subject to adjustment as provided in Section 4.3 herein, the number of Shares available for issuance under the Plan shall not exceed
ninety (90) million Shares. The Shares granted under this Plan may be either authorized but unissued or reacquired Shares. The Disinterested Committee shall have full discretion to determine the manner in which Shares available for grant are
counted in this Plan. 

  

	 	4.2	Share Accounting. Without limiting the discretion of the Committee under this section, unless otherwise provided by the Disinterested Committee, the following
rules will apply for purposes of the determination of the number of Shares available for grant under the Plan or compliance with the foregoing limits: 

 (a) If an outstanding Award for any reason expires or is terminated or canceled without having been exercised or settled in full, or if Shares acquired pursuant to an Award subject to forfeiture are
forfeited under the terms of the Plan or the relevant Award, the Shares allocable to the terminated portion of such Award or such forfeited Shares shall again be available for issuance under the Plan. 

(b) Shares shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash,
other than an Option. 
 (c) If the exercise price of an Option is paid by tender to the Company, or attestation to the
ownership, of Shares owned by the Participant, or an Option is settled without the payment of the exercise price, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the Option is
exercised. 
  

	 	4.3	Adjustments in Authorized Plan Shares and Outstanding Awards. In the event of any merger, reorganization, consolidation, recapitalization, separation, split-up,
liquidation, Share combination, Stock split, Stock dividend, or other change in the corporate structure of the Company affecting the Shares, an adjustment shall be made in the number and class of Shares which may be delivered under the Plan
(including but not limited to individual limits), and in the number and class of and/or price of Shares subject to outstanding Awards granted under the Plan, and/or the number of outstanding Options, Shares of Restricted Stock, and Performance
Shares (and Performance Units and other Awards whose value is based on a number of Shares) constituting outstanding Awards, as may be determined to be appropriate and equitable by the Disinterested Committee, in its sole discretion, to prevent
dilution or enlargement of rights. 

  

	Article 5.	Eligibility and Participation. 

  

	 	5.1	Eligibility. All management Employees are eligible to receive Awards under this Plan. 

 

	 	5.2	Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from all eligible Employees, those to whom Awards shall
be granted and shall determine the nature and amount of each Award. No Employee is entitled to receive an Award unless selected by the Committee. 

  

	Article 6.	Stock Options. 

  

	 	6.1	 Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to eligible Employees at any time and from time to
time, and under such terms and conditions, as shall be determined by the Committee. In addition, the Committee may, from time to time, provide for the payment of dividend equivalents on Options, prospectively and/or retroactively, on such terms and
conditions as the Committee may require. The Committee shall have discretion in determining the number of Shares subject to Options granted to each Employee; provided, however, that no single Employee may receive Options under this Plan for more
than one percent (1%) of the Shares approved for issuance under this Plan during any calendar year. 

	 	 
The Committee may not grant Incentive Stock Options, as described in Section 422 of the Code, under this Plan. 

 

	 	6.2	Form of Issuance. Each Option grant may be issued in the form of an Award Agreement and/or may be recorded on the books and records of the Company for the
account of the Participant. If an Option is not issued in the form of an Award Agreement, then the Option shall be deemed granted as determined by the Committee. The terms and conditions of an Option shall be set forth in the Award Agreement, in the
notice of the issuance of the grant, or in such other documents as the Committee shall determine. Such terms and conditions shall include the Exercise Price, the duration of the Option, the number of Shares to which an Option pertains (unless
otherwise provided by the Committee, each Option may be exercised to purchase one Share), and such other provisions as the Committee shall determine. 

  

	 	6.3	Exercise Price. Unless a greater Exercise Price is determined by the Committee, the Exercise Price for each Option Awarded under this Plan shall be equal to one
hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted. Subject to adjustment as provided in Section 4.3 herein or as otherwise provided herein, the terms of an Option may not be amended to reduce the
exercise price nor may Options be cancelled or exchanged for cash, other awards or Options with an exercise price that is less than the exercise price of the original Options. 

 

	 	6.4	Duration of Options. Each Option shall expire at such time as the Committee shall determine at the time of grant (which duration may be extended by the
Committee); provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary date of its grant. In the event the Committee does not specify the expiration date of an Option, then such Option will expire on the
tenth (10th) anniversary date of its grant, except as otherwise provided herein. 

  

	 	6.5	Vesting of Options. A grant of Options shall vest at such times and under such terms and conditions as determined by the Committee; provided, however, unless
another vesting period is provided by the Committee at or before the grant of an Option, one-third of the Options will vest on each of the first three anniversaries of the grant; if one Option remains after equally dividing the grant by three, it
will vest on the first anniversary of the grant, if two Options remain, then one will vest on each of the first two anniversaries. The Committee shall have the right to accelerate the vesting of any Option; however, the Chairman of the Board or the
Senior Executive Vice President-Human Resources, or their respective successors, or such other persons designated by the Committee, shall have the authority to accelerate the vesting of Options for any Participant who is not an Insider.

  

	 	6.6	Exercise of Options. Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall
in each instance approve, which need not be the same for each grant or for each Participant. Exercises of Options may be effected only on days and during the hours that the New York Stock Exchange is open for regular trading. The Company may change
or limit the times or days Options may be exercised. If an Option expires on a day or at a time when exercises are not permitted, then the Options may be exercised no later than the immediately preceding date and time that the Options were
exercisable. 

 An Option shall be exercised by providing notice to the designated agent selected by the Company
(if no such agent has been designated, then to the Company), in the manner and form determined by the Company, which notice shall be irrevocable, setting forth the exact number of Shares with respect to which the Option is being exercised and
including with such notice payment of the Exercise Price, as applicable. When an Option has been transferred, the Company or its designated agent may require appropriate documentation that the person or persons exercising the Option, if other than
the Participant, has the right to exercise the Option. 

 
No Option may be exercised with respect to a fraction of a Share. 
  

	 	6.7	Payment. Unless otherwise determined by the Committee, the Exercise Price shall be paid in full at the time of exercise. No Shares shall be issued or transferred
until full payment has been received or the next business day thereafter, as determined by AT&T. 

 The
Committee may, from time to time, determine or modify the method or methods of exercising Options or the manner in which the Exercise Price is to be paid. Unless otherwise provided by the Committee in full or in part: 

(a) Payment may be made in cash. 
 (b) Payment may be made by delivery of Shares owned by the Participant in partial (if in partial payment, then together with cash) or full payment. 

(c) If the Company has designated a stockbroker to act as the Company’s agent to process Option exercises, an Option may be exercised
by issuing an exercise notice together with instructions to such stockbroker irrevocably instructing the stockbroker: (A) to immediately sell (which shall include an exercise notice that becomes effective upon execution of a sale order) a
sufficient portion of the Shares to be received from the Option exercise to pay the Exercise Price of the Options being exercised and the required tax withholding, and (B) to deliver on the settlement date the portion of the proceeds of the
sale equal to the Exercise Price and tax withholding to the Company. In the event the stockbroker sells any Shares on behalf of a Participant, the stockbroker shall be acting solely as the agent of the Participant, and the Company disclaims any
responsibility for the actions of the stockbroker in making any such sales. No Shares shall be issued until the settlement date and until the proceeds (equal to the Exercise Price and tax withholding) are paid to the Company. 

(d) At any time, the Committee may, in addition to or in lieu of the foregoing, provide that an Option may be “stock settled,”
which shall mean upon exercise of an Option, the Company may fully satisfy its obligation under the Option by delivering that number of shares of Stock found by taking the difference between (a) the FMV of the Stock on the exercise date,
multiplied by the number of Options being exercised and (b) the total Exercise Price of the Options being exercised, and dividing such difference by the FMV of the Stock on the exercise date. 

If payment is made by the delivery of Shares, the value of the Shares delivered shall be equal to the then most recent Fair Market Value
of the Shares established before the exercise of the Option. 
 Restricted Stock may not be used to pay the Exercise Price.

  

	 	6.8	Termination of Employment. Unless otherwise provided by the Committee, the following limitations on exercise of Options shall apply upon Termination of
Employment: 

 (a) Termination by Death or Disability. In the event of the Participant’s Termination of
Employment by reason of death or Disability, all outstanding Options granted to that Participant shall immediately vest as of the date of Termination of Employment and may be exercised, if at all, no more than five (5) years from the date of
the Termination of Employment, unless the Options, by their terms, expire earlier. 
 (b) Termination for Cause. In the
event of the Participant’s Termination of Employment by the Company for Cause, all outstanding Options held by the Participant shall immediately be forfeited to the Company and no additional exercise period shall be allowed, regardless of the
vested status of the Options. 

 (c) Retirement or Other Termination of Employment. In the event of the
Participant’s Termination of Employment for any reason other than the reasons set forth in (a) or (b), above: 
  

	 	(i)	If upon the Participant’s Termination of Employment, the Participant is eligible to Retire, then all outstanding unvested Options granted to that Participant shall
immediately vest as of the date of the Participant’s Termination of Employment; 

  

	 	(ii)	All outstanding Options which are vested as of the effective date of Termination of Employment may be exercised, if at all, no more than five (5) years from the
date of Termination of Employment if the Participant is eligible to Retire, or three (3) months from the date of the Termination of Employment if the Participant is not eligible to Retire, as the case may be, unless in either case the Options,
by their terms, expire earlier; and 

  

	 	(iii)	In the event of the death of the Participant after Termination of Employment, this paragraph (c) shall still apply and not paragraph (a), above.

 (d) Options not Vested at Termination. Except as provided in paragraphs (a) and (c)(i), above, all
Options held by the Participant which are not vested on or before the effective date of Termination of Employment shall immediately be forfeited to the Company (and the Shares subject to such forfeited Options shall once again become available for
issuance under the Plan). 
 (e) Other Terms and Conditions. Notwithstanding the foregoing, the Committee may, in its sole
discretion, establish different, or waive, terms and conditions pertaining to the effect of Termination of Employment on Options, whether or not the Options are outstanding, but no such modification shall shorten the terms of Options issued prior to
such modification or otherwise be materially adverse to the Participant. 
  

	 	6.9	Restrictions on Exercise and Transfer of Options. Unless otherwise provided by the Committee: 

(a) During the Participant’s lifetime, the Participant’s Options shall be exercisable only by the Participant or by the
Participant’s guardian or legal representative. After the death of the Participant, except as otherwise provided by AT&T’s Rules for Employee Beneficiary Designations, an Option shall only be exercised by the holder thereof (including,
but not limited to, an executor or administrator of a decedent’s estate) or his or her guardian or legal representative. 

(b) No Option shall be transferable except: (i) in the case of the Participant, only upon the Participant’s death and in
accordance with the AT&T Rules for Employee Beneficiary Designations; and (ii) in the case of any holder after the Participant’s death, only by will or by the laws of descent and distribution. 

 

	Article 7.	Restricted Stock. 

  

	 	7.1	Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted
Stock to eligible Employees in such amounts and upon such terms and conditions as the Committee shall determine. In addition to any other terms and conditions imposed by the Committee, vesting of Restricted Stock may be conditioned upon the
achievement of Performance Goals in the same manner as provided in Section 8.4, herein, with respect to Performance Shares. No Employee may be awarded, in any calendar year, a number of Shares in the form of Restricted Stock (or Restricted
Stock Units) exceeding one percent (1%) of the Shares approved for issuance under this Plan. 

  

	 	7.2	 Restricted Stock Agreement. The Committee may require, as a condition to receiving a Restricted Stock Award, that the Participant enter into a
Restricted Stock Award Agreement, 

	 	 
setting forth the terms and conditions of the Award. In lieu of a Restricted Stock Award Agreement, the Committee may provide the terms and conditions of an Award in a notice to the Participant
of the Award, on the Stock certificate representing the Restricted Stock, in the resolution approving the Award, or in such other manner as it deems appropriate. 

 

	 	7.3	Transferability. Except as otherwise provided in this Article 7, and subject to any additional terms in the grant thereof, Shares of Restricted Stock granted
herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until fully vested. 

  

	 	7.4	Restrictions. The Restricted Stock shall be subject to such vesting terms, including the achievement of Performance Goals (as described in Section 8.4), as
may be determined by the Committee. Unless otherwise provided by the Committee, to the extent Restricted Stock is subject to any condition to vesting, if such condition or conditions are not satisfied by the time the period for achieving such
condition has expired, such Restricted Stock shall be forfeited. The Committee may impose such other conditions and/or restrictions on any Shares of Restricted Stock granted pursuant to the Plan as it may deem advisable including but not limited to
a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock and/or restrictions under applicable Federal or state securities laws; and may legend the certificates representing Restricted Stock to give
appropriate notice of such restrictions. The Committee may also grant Restricted Stock without any terms or conditions in the form of vested Stock Awards. 

 The Company shall also have the right to retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as the Shares are fully vested and all conditions
and/or restrictions applicable to such Shares have been satisfied. 
  

	 	7.5	Removal of Restrictions. Except as otherwise provided in this Article 7 or otherwise provided in the grant thereof, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan shall become freely transferable by the Participant after completion of all conditions to vesting, if any. However, the Committee, in its sole discretion, shall have the right to immediately vest the shares
and waive all or part of the restrictions and conditions with regard to all or part of the Shares held by any Participant at any time. 

  

	 	7.6	Voting Rights, Dividends and Other Distributions. Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights and shall
receive all dividends and distributions paid with respect to such Shares. The Committee may require that dividends and other distributions, other than regular cash dividends, paid to Participants with respect to Shares of Restricted Stock be subject
to the same restrictions and conditions as the Shares of Restricted Stock with respect to which they were paid. If any such dividends or distributions are paid in Shares, the Shares shall automatically be subject to the same restrictions and
conditions as the Shares of Restricted Stock with respect to which they were paid. 

  

	 	7.7	Termination of Employment Due to Death or Disability. In the event of the Participant’s Termination of Employment by reason of death or Disability, all
restrictions imposed on outstanding Shares of Restricted Stock held by the Participant shall immediately lapse and the Restricted Stock shall immediately become fully vested as of the date of Termination of Employment. 

 

	 	7.8	Termination of Employment for Other Reasons. Unless otherwise provided by the Committee, in the event of the Participant’s Termination of Employment for any
reason other than those specifically set forth in Section 7.7 herein, all Shares of Restricted Stock held by the Participant which are not vested as of the effective date of Termination of Employment immediately shall be forfeited and returned
to the Company. 

	 	7.9	Restricted Stock Units. In lieu of or in addition to Restricted Stock, the Committee may grant Restricted Stock Units under such terms and conditions as shall be
determined by the Committee. Restricted Stock Units shall be subject to the same terms and conditions under this Plan as Restricted Stock except as otherwise provided in this Plan or as otherwise provided by the Committee. Except as otherwise
provided by the Committee, the award shall be settled and pay out promptly upon vesting (to the extent permitted by Section 409A of the Code), and the Participant holding such Restricted Stock Units shall receive, as determined by the
Committee, Shares (or cash equal to the Fair Market Value of the number of Shares as of the date the award becomes payable) equal to the number of such Restricted Stock Units. Restricted Stock Units shall not be transferable, shall have no voting
rights, and shall not receive dividends, but shall, unless otherwise provided by the Committee, receive dividend equivalents at the time and at the same rate as dividends are paid on Shares with the same record and pay dates. Upon a
Participant’s Termination of Employment due to Death or Disability, his or her Restricted Stock Units will vest, and in the case of Death, will pay out promptly, and in the case of Disability, will only pay out in accordance with the terms of
the grant (without regard to the Termination due to Disability). If the Participant dies after Termination of Employment, vested Restricted Stock Units will be promptly paid out. 

 

	Article 8.	Performance Units and Performance Shares. 

  

	 	8.1	Grants of Performance Units and Performance Shares. Subject to the terms of the Plan, Performance Shares and Performance Units may be granted to eligible
Employees at any time and from time to time, as determined by the Committee. The Committee shall have complete discretion in determining the number of Performance Units and/or Performance Shares Awarded to each Participant and the terms and
conditions of each such Award. 

  

	 	8.2	Value of Performance Shares and Units. 

 (a) A Performance Share is equivalent in value to a Share. In any calendar year, no individual may be awarded Performance Shares having a potential payout of Shares exceeding one percent (1%) of the
Shares approved for issuance under this Plan. 
 (b) A Performance Unit shall be equal in value to a fixed dollar amount
determined by the Committee. In any calendar year, no individual may be Awarded Performance Units having a potential payout equivalent exceeding the Fair Market Value, as of the date of granting the Award, of one percent (1%) of the Shares
approved for issuance under this Plan. The number of Shares equivalent to the potential payout of a Performance Unit shall be determined by dividing the maximum cash payout of the Award by the Fair Market Value per Share on the effective date of the
grant. The Committee may denominate a Performance Unit Award in dollars instead of Performance Units. A Performance Unit Award may be referred to as a “Key Executive Officer Short Term Award.” 

 

	 	8.3	Performance Period. The Performance Period for Performance Shares and Performance Units is the period over which the Performance Goals are measured. The
Performance Period is set by the Committee for each Award; however, in no event shall an Award have a Performance Period of less than one year. 

  

	 	8.4	 Performance Goals. For each Award of Performance Shares or Performance Units, the Committee shall establish (and may establish for other Awards)
performance objectives (“Performance Goals”) for the Company, its Subsidiaries, and/or divisions of any of foregoing, using the Performance Criteria and other factors set forth in (a) and (b), below. It may also use other criteria or
factors in establishing Performance Goals in addition to or in lieu of the 

	 	 
foregoing. A Performance Goal may be stated as an absolute value or as a value determined relative to an index, budget, prior period, similar measures of a peer group of other companies or other
standard selected by the Committee. Performance Goals shall include payout tables, formulas or other standards to be used in determining the extent to which the Performance Goals are met, and, if met, the number of Performance Shares and/or
Performance Units which would be converted into Stock and/or cash (or the rate of such conversion) and distributed to Participants in accordance with Section 8.6. Unless previously canceled or reduced, Performance Shares and Performance Units
which may not be converted because of failure in whole or in part to satisfy the relevant Performance Goals or for any other reason shall be canceled at the time they would otherwise be distributable. When the Committee desires an Award of
Performance Shares, Performance Units, Restricted Stock or Restricted Stock Units to qualify under Section 162(m) of the Code, as amended, the Committee shall establish or modify the Performance Goals for the respective Award prior to or within
90 days of the beginning of the Performance Period relating to such Performance Goal, and not later than after twenty-five percent (25%) of such period has elapsed. For all other Awards, the Performance Goals must be established before the end
of the respective Performance Period. 

 (a) The Performance Criteria which the Committee is authorized to use,
in its sole discretion, are any of the following criteria or any combination thereof, including but not limited to the offset against each other of any combination of the following criteria: 

 

	 	(1)	Financial performance of the Company (on a consolidated basis), of one or more of its Subsidiaries, and/or a division of any of the foregoing. Such financial
performance may be based on net income, Value Added (after- tax cash operating profit less depreciation and less a capital charge), EBITDA (earnings before interest, taxes, depreciation and amortization), revenues, sales, expenses, costs, gross
margin, operating margin, profit margin, pre-tax profit, market share, volumes of a particular product or service or category thereof, including but not limited to the product’s life cycle (for example, products introduced in the last two
years), number of customers or subscribers, number of items in service, including but not limited to every category of access or other telecommunication or television lines, return on net assets, return on assets, return on capital, return on
invested capital, cash flow, free cash flow, operating cash flow, operating revenues, operating expenses, and/or operating income. 

  

	 	(2)	Service performance of the Company (on a consolidated basis), of one or more of its Subsidiaries, and/or of a division of any of the foregoing. Such service performance
may be based upon measured customer perceptions of service quality. Employee satisfaction, employee retention, product development, completion of a joint venture or other corporate transaction, completion of an identified special project, and
effectiveness of management. 

  

	 	(3)	The Company’s Stock price, return on stockholders’ equity, total stockholder return (Stock price appreciation plus dividends, assuming the reinvestment of
dividends), and/or earnings per Share. 

  

	 	(4)	Impacts of acquisitions, dispositions, or restructurings, on any of the foregoing. 

(b) If the matters in a specific category below have a collective net impact (whether positive or negative) on net income, after taxes and
available and collectible insurance, that exceed $500 million in a calendar year, then such matters (as well as any related effects on cash flow, if applicable) shall be excluded in determining whether or the extent to which the relevant Performance
Goals applicable to such year are met: 

 Categories: 

 

	 	(1)	changes in accounting principles; 

  

	 	(2)	extraordinary items; 

  

	 	(3)	changes in Federal tax law; 

  

	 	(4)	changes in the tax laws of the states;

  

	 	(5)	expenses caused by natural disasters, including but not limited to floods, hurricanes, and earthquakes; 

 

	 	(6)	expenses resulting from intentionally caused damage to property of the Company or its Subsidiaries taken as a whole; 

 

	 	(7)	non-cash accounting write-downs of goodwill and other intangible assets. 

 In addition, where matters in a specific category have a collective net impact (whether positive or negative) on net income, after taxes and available and collectible insurance, that exceed $200 million
but not $500 million in a calendar year, then such matters (as well as any related effects on cash flow, if applicable) shall also be excluded in determining the achievement of the relevant Performance Goals but only if the combined net effect of
matters in all such categories (exceeding $200 million but not $500 million) exceeds $500 million. 
 Gains and losses related to
the assets and liabilities from pension plans and other post retirement benefit plans (and any associated tax effects) shall be disregarded in determining whether or the extent to which a Performance Goal has been met.

Unless otherwise provided by the Committee at any time, no such adjustment shall be made for a current or former executive officer to the
extent such adjustment would cause an Award to fail to satisfy the performance based exemption of Section 162(m) of the Code. 
  

	 	8.5	Dividend Equivalents on Performance Shares. Unless otherwise provided by the Committee, a cash payment (“Dividend Equivalent”) in an amount equal to
the dividend payable on one Share shall be made to a Participant for each Performance Share held by such Participant on the record date for the dividend. Such Dividend Equivalent, if any, will be payable at the time the relevant AT&T common
stock dividend is payable or at such other time as determined by the Committee, and may be modified or terminated by the Committee at any time. Notwithstanding the foregoing, unless otherwise provided by the Committee, Dividend Equivalents paid with
respect to Performance Shares granted to an Officer Level Employee shall only be paid on the number of Performance Shares actually distributed and such payment shall be made when the related Performance Shares are distributed.

  

	 	8.6	 Form and Timing of Payment of Performance Units and Performance Shares. As soon as practicable after the applicable Performance Period has ended
and all other conditions (other than Committee actions) to conversion and distribution of a Performance Share and/or Performance Unit Award have been satisfied (or, if applicable, at such other time determined by the Committee at or before the
establishment of the Performance Goal), the Committee shall determine whether and the extent to which the Performance Goals were met for the applicable Performance Units and Performance Shares. If Performance Goals have been met, then the number of
Performance Units and Performance Shares to be converted into Stock and/or cash and distributed to the Participants shall be determined in accordance with the Performance Goals for such Awards, subject to any limits imposed by the Committee. Payment
of Performance Units and Performance Shares shall be made in a single lump sum, as soon as reasonably administratively possible following the determination of the number of Shares or amount of cash to which the Participant is entitled but not later
than the 15th day of the third month following the end of
the applicable Performance Period. Performance Units will be distributed to Participants 

	 	 
in the form of cash. Performance Shares will be distributed to Participants in the form of fifty percent (50%) Stock and fifty percent (50%) Cash, or at the Participant’s election,
one hundred percent (100%) Stock or one hundred percent (100%) Cash. In the event the Participant is no longer an Employee at the time of the distribution, then the distribution shall be one hundred (100%) in cash, provided the
Participant may elect to take fifty percent (50%) or one hundred percent (100%) in Stock. At any time prior to the distribution of the Performance Shares and/or Performance Units, unless otherwise provided by the Committee or prohibited by
this Plan (such as in the case of a Change in Control), the Committee shall have the authority to reduce or eliminate the number of Performance Units or Performance Shares to be converted and distributed, or to cancel any part or all of a grant or
award of Performance Units or Performance Shares, or to mandate the form in which the Award shall be paid (i.e., in cash, in Stock or both, in any proportions determined by the Committee). 

Unless otherwise provided by the Committee, any election to take a greater amount of cash or Stock with respect to Performance Shares must
be made in the calendar year prior to the calendar year in which the Performance Shares are distributed. 
 For the purpose of
converting Performance Shares into cash and distributing the same to the holders thereof (or for determining the amount of cash to be deferred), the value of a Performance Share shall be the Fair Market Value of a Share on the date the Committee
authorizes the payout of Awards. Performance Shares to be distributed in the form of Stock will be converted at the rate of one (1) Share per Performance Share. 
  

	 	8.7	Termination of Employment Due to Death. In the event of the Participant’s Termination of Employment by reason of death during a Performance Period, the
Participant shall receive a lump sum payout of the related outstanding Performance Units and Performance Shares calculated as if all unfinished Performance Periods had ended with one hundred percent (100%) of the Performance Goals achieved,
valued as of the first business day of the calendar year following the date of Termination of Employment and payable as soon thereafter as reasonably possible but not later than the 15th day of the third month after the end of the calendar year in
which such death occurred. Where the amount or part of Dividend Equivalents is determined by the number of Performance Shares that are paid out or is otherwise determined by a performance measure, and the related Performance Period for the Dividend
Equivalents was not completed at death, then the Dividend Equivalents will be calculated as though one hundred percent (100%) of the goals were achieved and paid as soon as reasonably possible. 

 

	 	8.8	Termination of Employment for Other than Death or Disability. Unless the Committee determines otherwise at any time, in the event of the Participant’s
Termination of Employment during the Performance Period for a reason other than due to death or Disability (and other than for Cause), then upon such Termination, the amount of the Participant’s Performance Units and number of Performance
Shares shall be adjusted; the revised Awards shall be determined by multiplying the amount of the Performance Units and the number of Performance Shares, as applicable, by the number of months the Participant worked at least one day during the
respective Performance Period divided by the number of months in the Performance Period, to be paid, if at all, at the same time and under the same terms that such outstanding Performance Units or Performance Shares would otherwise be paid;
provided, however, if the Participant is not Retirement eligible and Terminates Employment voluntarily during the Performance Period for a grant of Performance Units or Performance Shares, then such Award shall be cancelled upon such Termination. A
Termination shall be deemed to be voluntary if it is recorded as such on the records of the Company, as determined by the Company in its sole discretion. 

  

	 	8.9	Termination of Employment for Cause. In the event of the Termination of Employment of a Participant by the Company for Cause, all Performance Units and
Performance Shares shall be forfeited by the Participant to the Company. 

	 	8.10	Nontransferability. Performance Units and Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than
in accordance with the AT&T Rules for Employee Beneficiary Designations. 

  

	Article 9.	Beneficiary Designation. In the event of the death of a Participant, distributions or Awards under this Plan, other than Restricted Stock, shall pass in
accordance with the AT&T Rules for Employee Beneficiary Designations, as the same may be amended from time to time. A Participant’s most recent Beneficiary Designation that is applicable to awards under the 1996 Stock and Incentive Plan,
the 2001 Incentive Plan, or the 2006 Incentive Plan will also apply to distributions or awards under this Plan unless and until the Participant provides to the contrary in accordance with the procedures set forth in such Rules.

  

	Article 10.	Employee Matters. 

  

	 	10.1	Employment Not Guaranteed. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any
Participant’s Employment at any time, nor confer upon any Participant any right to continue in the employ of the Company or one of its Subsidiaries. 

  

	 	10.2	Participation. No Employee shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a
future Award. 

  

	 	10.3	Loyalty Conditions and Enforcement. This section relates solely to Awards granted to a Participant who is an Officer Level Employee or a Senior Manager as of the
date the Award is made. 

 (a) Each Award under the Plan is intended to closely align the Participant’s
long-term interests with those of the Company and its shareholders, and the conditions set forth in subsections (b) or (d) hereof (collectively, the “Loyalty Conditions”) are intended to protect the Company’s critical need
for each Participant’s loyalty to the Company and its shareholders. If any Participant does not comply with a Loyalty Condition, either during employment or within the periods described below following Termination of Employment for any reason,
then the Participant is acting contrary to the long-term interests of the Company, and there will be a failure of the consideration on which the Participant received any Award or Awards pursuant to the Plan. Accordingly, unless otherwise provided in
the Award, as a condition of such Award, the Participant is deemed to agree that he shall not, without obtaining the written consent of AT&T in advance, violate the Loyalty Provisions of this Section 10.3. Unless otherwise expressly
provided in an Award Agreement, if the Participant violates a Loyalty Condition, then the Company may terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards (“Award Termination”), rescind any exercise, payment or
delivery pursuant to any Award or Awards (“Rescission”), or recapture any cash or Shares (whether restricted or unrestricted) issued pursuant to any Award or Awards, or proceeds from the Participant’s sale of such Shares
(“Recapture”). 
 (b) During the Participant’s employment with the Company and any of its Subsidiaries and for a
period of two years after a Termination of Employment for any reason, a Participant shall not, without the Company’s prior written authorization, (i) disclose to anyone outside the Company or use, other than in the Company’s business,
any Confidential Information, or (ii) disclose any trade secrets of the Company, as that term is defined under Applicable Law, for as long as such information is not generally known to the Company’s competitors through no fault or
negligence of the Participant. 
 “Confidential Information” means all information belonging to, or otherwise
relating to the business of the Company, which is not generally known, regardless of the manner in which it is 

 
stored or conveyed to Participant, and which the Company has taken reasonable measures under the circumstances to protect from unauthorized use or disclosure. Confidential Information includes
trade secrets as well as other proprietary knowledge, information, know-how, and non-public intellectual property rights, including unpublished or pending patent applications and all related patent rights, formulae, processes, discoveries,
improvements, ideas, conceptions, compilations of data, and data, whether or not patentable or copyrightable and whether or not it has been conceived, originated, discovered, or developed in whole or in part by Participant. For example, Confidential
Information includes, but is not limited to, information concerning the Company’s business plans, budgets, operations, products, strategies, marketing, sales, inventions, designs, costs, legal strategies, finances, employees, customers,
prospective customers, licensees, or licensors; information received from third parties under confidential conditions; or other valuable financial, commercial, business, technical or marketing information concerning the Company, or any of the
products or services made, developed or sold by the Company. Confidential Information does not include information that (i) was generally known to the public at the time of disclosure; (ii) was lawfully received by Participant from a third
party; (iii) was known to Participant prior to receipt from the Company; or (iv) was independently developed by Participant or independent third parties; in each of the foregoing circumstances, this exception applies only if such public
knowledge or possession by an independent third party was without breach by Participant or any third party of any obligation of confidentiality or non-use, including but not limited to the obligations and restrictions set forth in this Agreement.

 (c) Coincidentally with the exercise, receipt of payment, or delivery of cash or Shares pursuant to an Award, the Company may
require that the Participant shall give a certification to the Company in writing if the Participant is not for any reason in full compliance with the terms and conditions of the Plan, including its Loyalty Conditions. If a Termination of Employment
has occurred for any reason, the Participant’s certification shall state the name and address of the Participant’s then-current employer or any entity for which the Participant performs business services and the Participant’s title,
and shall identify any organization or business in which the Participant owns an equity interest of greater than five percent. 

(d) If the Company determines, in its sole and absolute discretion, that (i) a Participant has violated any of the Loyalty
Conditions, or (ii) during his or her employment by the Company or any of its Subsidiaries, or within two years after the Termination of Employment for any reason, a Participant has engaged in any of the following conduct: 

 

	 	(i)	owned, operated or controlled, or participated in the ownership, operation or control of, any business enterprise (including, without limitation, any corporation,
partnership, proprietorship or other venture) that competes with the Company in the Restricted Business (defined below) anywhere in the Restricted Territory (defined below); 

 

	 	(ii)	become employed as an officer or executive by any business enterprise (including, without limitation, any corporation, partnership, proprietorship or other venture)
that competes with the Company in the Restricted Business anywhere in the Restricted Territory, if such employment or engagement requires Participant to compete against the Company in the Restricted Business; 

 

	 	(iii)	solicited any nonclerical employee of the Company with whom the Participant had Contact during his or her employment to terminate employment with the Company; or

  

	 	(iv)	committed any breach of Participant’s fiduciary duty or the duty of loyalty, as determined by Applicable Law, 

then the Committee may, in its sole and absolute discretion, impose an Award Termination,

 
Rescission, and/or Recapture with respect to any or all of the Participant’s Awards, including any Shares or cash associated therewith, or any proceeds thereof. For purposes of this
Agreement, the term “Restricted Business” means the business of providing communications or connectivity services, including both wireless and wire-lined telephone, messaging, Internet, data, and related services; the term “Restricted
Territory” shall mean the state in which the Participant maintained his or her principal office with the Company on the date the Award was granted; and the term “Contact” means interaction between the Participant and the nonclerical
employee during performance of Participant’s job responsibilities on behalf of the Company. 
 (e) Within ten days after
receiving notice from the Company of any such activity described in subsection (d) above, the Participant shall deliver to the Company the cash or Shares acquired pursuant to any and all Awards, or, if Participant has sold the Shares, the gain
realized, or payment received as a result of the rescinded exercise, payment, or delivery; provided, that if the Participant returns Shares that the Participant purchased pursuant to the exercise of an Option (or the gains realized from the sale of
such Shares), the Company shall promptly refund the exercise price, without earnings or interest, that the Participant paid for the Shares. Any payment by the Participant to the Company pursuant to this Section shall be made either in cash or by
returning to the Company the number of Shares that the Participant received in connection with the rescinded exercise, payment, or delivery. It shall not be a basis for Award Termination, Rescission or Recapture if, after a Termination of
Employment, the Participant purchases, as an investment or otherwise, stock or other securities of an organization engaged in the Restricted Business, so long as (i) such stock or other securities are listed upon a recognized securities
exchange or traded over the counter, and (ii) such investment does not represent more than a ten percent (10%) equity interest in the organization or business. 
 (f) Notwithstanding the foregoing provisions of this Section, the Company has sole and absolute discretion not to require Award Termination, Rescission and/or Recapture, and its determination not to
require Award Termination, Rescission and/or Recapture with respect to any particular act by a particular Participant or Award shall not in any way reduce or eliminate the Company’s authority to require Award Termination, Rescission and/or
Recapture with respect to any other act or Participant or Award. Nothing in this Section shall be construed to impose obligations on the Participant to refrain from engaging in lawful competition with the Company after the Participant’s
Termination of Employment that does not violate subsections (b) or (d) of this Section, other than any obligations that are part of any separate agreement between the Company and the Participant or that arise under Applicable Law.

 (g) All administrative and discretionary authority given to the Company under this Section shall be exercised by the most
senior human resources executive of the Company or such other person or committee (including without limitation the Committee) as the Committee may designate from time to time. 
 (h) If any provision within this Section is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by Applicable Law, and shall
automatically be deemed amended in a manner consistent with its objectives and any limitations required under Applicable Law. 
  

	 	10.4	 Reimbursement of Company for Unearned or Ill-gotten Gains. Unless otherwise specifically provided in an Award Agreement, and to the extent permitted by
Applicable Law, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, the Committee may, without obtaining the approval or
consent of the Company’s shareholders or of any Participant, require that any Participant who personally engaged in one of more acts of fraud or misconduct that have caused or partially caused the need for such restatement or any current or
former chief executive officer, chief financial officer, or executive officer, regardless of their 

	 	 
conduct, to reimburse the Company for all or any portion of any Awards granted or settled under this Plan (with each such case being a “Reimbursement”), or the Committee may require the
Termination or Rescission of, or the Recapture associated with, any Award, in excess of the amount the Participant would have received under the accounting restatement. 

 

	Article 11.	Change in Control. 

Unless the Committee provides otherwise prior to the grant of an Award, upon the occurrence of a Change in Control, the following shall
apply to such Award: 
 (a) Any and all Options granted hereunder to a Participant immediately shall become vested and
exercisable upon the Termination of Employment of the Participant by the Company or by the Participant for “Good Reason”; 
 (b) Any Restriction Periods and all restrictions imposed on Restricted Stock and Restricted Stock Units shall lapse and they shall immediately become fully vested upon the Termination of Employment of the
Participant by the Company or by the Participant for “Good Reason” provided, Restricted Stock Units shall be settled in accordance with the terms of the grant without regard to the Change in Control unless the Change in Control constitutes
a “change in control event” within the meaning of Section 409A of the Code and such Termination of Employment occurs within two years following such Change in Control, in which case the Restricted Stock Units shall be settled and paid
out with such Termination of Employment; 
 (c) Unless otherwise determined by the Committee, the payout of Performance Units and
Performance Shares shall be determined exclusively by the attainment of the Performance Goals established by the Committee, which may not be modified after the Change in Control, and AT&T shall not have the right to reduce the Awards for any
other reason; 
 (d) For purposes of this Plan, “Good Reason” means in connection with a termination of employment by a
Participant within two (2) years following a Change in Control, (a) a material adverse alteration in the Participant’s position or in the nature or status of the Participant’s responsibilities from those in effect immediately
prior to the Change in Control, or (b) any material reduction in the Participant’s base salary rate or target annual bonus, in each case as in effect immediately prior to the Change in Control, or (c) the relocation of the
Participant’s principal place of employment to a location that is more than fifty (50) miles from the location where the Participant was principally employed at the time of the Change in Control or materially increases the time of the
Participant’s commute as compared to the Participant’s commute at the time of the Change in Control (except for required travel on the Company’s business to an extent substantially consistent with the Participant’s customary
business travel obligations in the ordinary course of business prior to the Change in Control). 
 In order to invoke a
Termination of Employment for Good Reason, a Participant must provide written notice to AT&T or the Employer with respect to which the Participant is employed or providing services of the existence of one or more of the conditions constituting
Good Reason within ninety (90) days following the Participant’s knowledge of the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and AT&T shall have thirty
(30) days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition. In the event that AT&T or the Employer fails to remedy the condition constituting Good Reason during the applicable
Cure Period, the Participant’s “separation from service” (within the meaning of Section 409A of the Code) must occur, if at all, within two (2) years following such Cure Period in order for such termination as a result of
such condition to constitute a Termination of Employment for Good Reason. 

	Article 12.	Amendment, Modification, and Termination. 

  

	 	12.1	Amendment, Modification, and Termination. The Board or the Disinterested Committee may at any time and from time to time, alter or amend the Plan or any Award in
whole or in part or suspend or terminate the Plan in whole or in part. 

  

	 	12.2	Awards Previously Granted. No termination, amendment, or modification of the Plan or any Award (other than Performance Shares or Performance Units) shall
adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant holding such Award; provided, however, that any such modification made for the purpose of complying with
Section 409A of the Code may be made by the Company without the consent of any Participant. 

  

	 	12.3	Delay in Payment. To the extent required in order to avoid the imposition of any interest and/or additional tax under Section 409A(a)(1)(B) of the Code, any
amount that is considered deferred compensation under the Plan or Agreement and that is required to be postponed pursuant to Section 409A of the Code, following the a Participant’s Termination of Employment shall be delayed for six months
if a Participant is deemed to be a “specified employee” as defined in Section 409A(a)(2)(i)(B) of the Code; provided that, if the Participant dies during the postponement period prior to the payment of the postponed amount, the
amounts withheld on account of Section 409A shall be paid to the executor or administrator of the decedent’s estate within 60 days following the date of his death. A “Specified Employee” means any Participant who is a
“key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof), as determined by AT&T in accordance with its uniform policy with respect to all arrangements subject to Code Section 409A, based
upon the twelve (12) month period ending on each December 31st (such twelve (12) month period is referred to below as the “identification period”). All Participants who are determined to be key employees under Code
Section 416(i) (without regard to paragraph (5) thereof) during the identification period shall be treated as Specified Employees for purposes of the Plan during the twelve (12) month period that begins on the first day of the 4th
month following the close of such identification period. 

  

	Article 13.	Withholding. 

  

	 	13.1	Tax Withholding. Unless otherwise provided by the Committee, the Company shall deduct or withhold an amount sufficient to satisfy Federal, state, and local taxes
(including but not limited to the Participant’s employment tax obligations) required by law to be withheld with respect to any taxable event arising or as a result of this Plan (“Withholding Taxes”). 

 

	 	13.2	Share Withholding. Unless otherwise provided by the Committee, upon the exercise of Options, the lapse of restrictions on Restricted Stock, the distribution of
Performance Shares in the form of Stock, or any other taxable event hereunder involving the transfer of Stock to a Participant, the Company shall withhold Stock equal in value, using the Fair Market Value on the date determined by the Company to be
used to value the Stock for tax purposes, to the Withholding Taxes applicable to such transaction. 

 Any
fractional Share of Stock payable to a Participant shall be withheld as additional Federal withholding, or, at the option of the Company, paid in cash to the Participant. 
 Unless otherwise determined by the Committee, when the method of payment for the Exercise Price is from the sale by a stockbroker pursuant to Section 6.7(b)(ii), herein, of the Stock acquired through
the Option exercise, then the tax withholding shall be satisfied out of the proceeds. For administrative purposes in determining the amount of taxes due, the sale price of such Stock shall be deemed to be the Fair Market Value of the Stock.

 If permitted by the Committee, prior to the end of any Performance Period a Participant may

 
elect to have a greater amount of Stock withheld from the distribution of Performance Shares to pay withholding taxes; provided, however, the Committee may prohibit or limit any individual
election or all such elections at any time. 
 Alternatively, or in combination with the foregoing, the Committee may require
Withholding Taxes to be paid in cash by the Participant or by the sale of a portion of the Stock being distributed in connection with an Award, or by a combination thereof. 

 

	Article 14.	Successors. 

 All
obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or
otherwise, of all or substantially all of the business and/or assets of the Company. 
  

	Article 15.	Legal Construction. 

  

	 	15.1	Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the
singular and the singular shall include the plural. 

  

	 	15.2	Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

  

	 	15.3	Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required. 

  

	 	15.4	Errors. At any time AT&T may correct any error made under the Plan without prejudice to AT&T. Such corrections may include, among other things, changing
or revoking an issuance of an Award. 

  

	 	15.5	Elections and Notices. Notwithstanding anything to the contrary contained in this Plan, all elections and notices of every kind shall be made on forms prepared
by AT&T or the General Counsel, Secretary or Assistant Secretary, or their respective delegates or shall be made in such other manner as permitted or required by AT&T or the General Counsel, Secretary or Assistant Secretary, or their
respective delegates, including but not limited to elections or notices through electronic means, over the Internet or otherwise. An election shall be deemed made when received by AT&T (or its designated agent, but only in cases where the
designated agent has been appointed for the purpose of receiving such election), which may waive any defects in form. AT&T may limit the time an election may be made in advance of any deadline. 

Where any notice or filing required or permitted to be given to AT&T under the Plan, it shall be delivered to the principal office of
AT&T, directed to the attention of the Senior Executive Vice President-Human Resources of AT&T or his or her successor. Such notice shall be deemed given on the date of delivery. 

Notice to the Participant shall be deemed given when mailed (or sent by telecopy) to the Participant’s work or home address as shown
on the records of AT&T or, at the option of AT&T, to the Participant’s e-mail address as shown on the records of AT&T. 
 It is the Participant’s responsibility to ensure that the Participant’s addresses are kept up to date on the records of AT&T. In the case of notices affecting multiple Participants, the
notices may be given by general distribution at the Participants’ work locations. 

	 	15.6	Governing Law. To the extent not preempted by Federal law, the Plan, and all awards and agreements hereunder, and any and all disputes in connection therewith,
shall be governed by and construed in accordance with the substantive laws of the State of Texas, without regard to conflict or choice of law principles which might otherwise refer the construction, interpretation or enforceability of this Plan to
the substantive law of another jurisdiction. 

  

	 	15.7	Venue. Because awards under the Plan are granted in Texas, records relating to the Plan and awards thereunder are located in Texas, and the Plan and
awards thereunder are administered in Texas, the Company and the Participant to whom an award under this Plan is granted, for themselves and their successors and assigns, irrevocably submit to the exclusive and sole jurisdiction and venue of the
state or federal courts of Texas with respect to any and all disputes arising out of or relating to this Plan, the subject matter of this Plan or any awards under this Plan, including but not limited to any disputes arising out of or relating to the
interpretation and enforceability of any awards or the terms and conditions of this Plan. To achieve certainty regarding the appropriate forum in which to prosecute and defend actions arising out of or relating to this Plan, and to ensure
consistency in application and interpretation of the Governing Law to the Plan, the parties agree that (a) sole and exclusive appropriate venue for any such action shall be an appropriate federal or state court in Dallas County, Texas, and no
other, (b) all claims with respect to any such action shall be heard and determined exclusively in such Texas court, and no other, (c) such Texas court shall have sole and exclusive jurisdiction over the person of such parties and over the
subject matter of any dispute relating hereto and (d) that the parties waive any and all objections and defenses to bringing any such action before such Texas court, including but not limited to those relating to lack of personal jurisdiction,
improper venue or forum non conveniens. 

  

	 	15.8	409A Compliance. Awards under the Plan may be structured to be exempt from or be subject to Section 409A of the Code. To the extent that Awards granted
under the Plan are subject to Section 409A of the Code, the Plan will be construed and administered in a manner that enables the Plan and such Awards to comply with the provisions of Section 409A of the Code.Seventh Amendment Agreement

 Exhibit 10.1 
 Execution Copy 
 HERITAGE OPERATING, L.P. 

SEVENTH AMENDMENT AGREEMENT 
  

			
	 Re:
	  	 Note Purchase Agreement dated as of June 25, 1996

Note Purchase Agreement dated as of November 19, 1997
 Note Purchase Agreement dated as of August 10, 2000

 Dated as
of 
 February 22, 2011 
 To each of the Holders named 
 in Schedule 1 to this Seventh 

Amendment Agreement 
 Ladies and Gentlemen: 
 Reference is made to 

(i) the Note Purchase Agreement dated as of June 25, 1996 (the “Original 1996
Agreement”), among Heritage Operating, L.P., a Delaware limited partnership (the “Company”) and the Purchasers named in the Purchaser Schedule attached thereto, as amended by a letter agreement (the “Letter
Agreement”) dated July 25, 1996, a First Amendment Agreement (the “First Amendment Agreement”) dated as of October 15, 1998, a Second Amendment Agreement (the “Second Amendment Agreement”)
dated as of September 1, 1999, a Third Amendment Agreement (the “Third Amendment Agreement”) dated as of May 31, 2000, a Fourth Amendment Agreement (the “Fourth Amendment Agreement”) dated as of
August 10, 2000, a Fifth Amendment Agreement (the “Fifth Amendment Agreement”) dated as of December 28, 2000, and a Sixth Amendment Agreement (the “Sixth Amendment Agreement”) dated as of November 18,
2003 (said Original 1996 Agreement, as amended by the Letter Agreement, the First Amendment Agreement, the Second Amendment Agreement, the Third Amendment Agreement, the Fourth Amendment Agreement, the Fifth Amendment Agreement and the Sixth
Amendment Agreement, being hereinafter referred to as the “Outstanding 1996 Agreement”) under and pursuant to which the Company issued, and there are presently outstanding, $12,000,000 aggregate principal amount of its 8.55% Senior
Secured Notes due June 30, 2011 (the “1996 Notes”); and 
 (ii) the Note
Purchase Agreement dated as of November 19, 1997 (the “Original 1997 Agreement”), among the Company and the Purchasers named in the Initial Purchaser Schedule attached thereto, as amended by the First Amendment Agreement dated
as of October 15, 1998, a Second Amendment Agreement (the “Second Amendment Agreement”) dated as of September 1, 1999, a Third Amendment Agreement (the “Third Amendment Agreement”) dated as of

 
May 31, 2000, a Fourth Amendment Agreement (the “Fourth Amendment Agreement”) dated August 10, 2000, a Fifth Amendment Agreement (the “Fifth Amendment
Agreement”) dated as of December 28, 2000, and a Sixth Amendment Agreement (the “Sixth Amendment Agreement”) dated as of November 18, 2003 (said Original 1997 Agreement, as so amended by the First Amendment
Agreement, the Second Amendment Agreement, the Third Amendment Agreement, the Fourth Amendment Agreement, the Fifth Amendment Agreement and the Sixth Amendment Agreement, being hereinafter referred to as the “Amended Original 1997
Agreement”), under and pursuant to which the Company issued, and there are presently outstanding, $4,000,000 aggregate principal amount of its 7.26% Series B Senior Secured Notes due November 19, 2012 (the “Series B
Notes”), as supplemented by the First Supplemental Note Purchase Agreement dated as of March 13, 1998 (the “First Supplemental Agreement”) among the Company and the Purchasers named in the Supplemental Purchaser
Schedule attached thereto (the Amended Original 1997 Agreement as supplemented by the First Supplemental Agreement is hereinafter sometimes referred to as the “Outstanding 1997 Agreement”); and 

(iii) the Note Purchase Agreement dated as of August 10, 2000 (the “Original 2000
Agreement”), among the Company and the Purchasers named in the Initial Purchaser Schedule attached thereto, as amended by the Fifth Amendment Agreement (the “Fifth Amendment Agreement”) dated as of December 28, 2000
and the Sixth Amendment Agreement (the “Sixth Amendment Agreement”) dated as of November 18, 2003 (said Original 2000 Agreement, as so amended by the Fifth Amendment Agreement and the Sixth Amendment Agreement, being
hereinafter referred to as the “Amended Original 2000 Agreement”) under and pursuant to which the Company issued, and there are presently outstanding, (a) $25,400,000 aggregate principal amount of its 8.67% Series D Senior
Secured Notes due August 15, 2012 (the “2000 Series D Notes”), (b) $5,000,000 aggregate principal amount of its 8.75% Series E Senior Secured Notes due August 15, 2015 (the “2000 Series E Notes”), and
(c) $36,363,636 aggregate principal amount of its 8.87% Series F Senior Secured Notes due August 15, 2020 (the “2000 Series F Notes”), as supplemented by the First Supplemental Note Purchase Agreement dated as of
May 24, 2001 (the “First Supplemental Agreement”) among the Company and the Purchasers named in the Supplemental Purchaser Schedule attached thereto, under and pursuant to which the Company issued, and there are presently
outstanding, (i) $4,363,637 aggregate principal amount of its 7.89% Series H Senior Secured Notes due May 15, 2016 (the “2001 Series H Notes”) and (ii) $16,000,000 aggregate principal amount to its 7.99% Series I
Senior Secured Notes due May 15, 2013 (the “2001 Series I Notes”) (the Amended Original 2000 Agreement as supplemented by the First Supplemental Agreement is hereinafter sometimes referred to as the “Outstanding 2000
Agreement”). 

  
 -2-

 The Outstanding 1996 Agreement, the Outstanding 1997 Agreement and the
Outstanding 2000 Agreement are hereinafter sometimes collectively referred to as the “Outstanding Agreements”. The 1996 Notes, Series B Notes, 2000 Series D Notes, 2000 Series E Notes, 2000 Series F Notes, 2001 Series H Notes and
2001 Series I Notes are hereinafter sometimes collectively referred to as the “Outstanding Notes.” Capitalized terms used herein without definition shall have the respective meanings assigned to such terms in the Outstanding
Agreements. 
 The Company now desires to amend and modify certain provisions of the Outstanding Agreements. You
are the owner and holder of the Outstanding Notes set forth opposite your name on Schedule 1 hereto. The Company hereby requests that, from and after the satisfaction of each of the conditions to effectiveness set forth in Article III below, said
amendments and modifications shall be deemed to have been given and said Outstanding Agreements shall be amended in the respects, but only in the respects, hereinafter set forth. 

ARTICLE I 

AMENDMENTS TO OUTSTANDING AGREEMENTS 
 I-A. Section 6(A) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 

Section 6A. Financial Ratios. The Company will not permit: 

(i) Ratio of Consolidated Funded Indebtedness to Consolidated EBITDA. The ratio as of the end of any fiscal quarter
of Consolidated Funded Indebtedness to Consolidated EBITDA to exceed 3.25 to 1.00; or 
 (ii) Minimum Interest
Coverage. The ratio as of the end of any fiscal quarter of Consolidated EBITDA to Consolidated Interest Expense to be less than 2.25 to 1.00. 
 I-B. Section 6(B)(ii) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 

(ii) [reserved]; 
 I-C. Section 6(B)(iii) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 

(iii) the Company may become and remain liable with respect to up to $10,000,000 of Indebtedness owing
from time to time to the seller(s) in Asset Acquisition(s) (in addition to Non-Compete Obligations permitted pursuant to the provisions of clause (xii) of this Section 6B); provided that the aggregate principal amount of
indebtedness permitted under this clause (iii) shall not at any time exceed the Contracted Dollar; 

I-D. Section 6(B)(xiii) of each of the Outstanding Agreements is hereby deleted in its entirety and the
following shall be inserted in lieu thereof: 

  
 -3-

 (xiii) the Company and its Subsidiaries may become and
remain liable with respect to the Notes and other Indebtedness, in addition to that otherwise permitted by the other clauses of this Section 6B, if on the date the Company or any of its Subsidiaries becomes liable with respect to any such
additional Indebtedness and immediately after giving effect thereto and to the substantially concurrent repayment of any other Indebtedness, no Default or Event of Default shall exist; 

I-E. Section 6(B) of each of the Outstanding Agreements is hereby amended to insert the following clause
(xiv) immediately following clause (xiii) contained therein, as follows: 
 (xiv) the
Company may become and remain liable with respect to subordinated extensions of credit made to the Company by the Master Partnership or any of the Master Partnership’s affiliates; provided that any such extension of credit shall be
evidenced by a promissory note which will contain the provisions set forth in Annex A attached hereto (and the Master Partnership or such affiliate shall agree to be bound by such provisions). 

I-F. Section 6(C)(xiv) of the 2000 Outstanding Agreement is hereby deleted in its entirety and the following
shall be inserted in lieu thereof: 
 (xiv) Liens created by any of the Security Documents
securing (a) Indebtedness evidenced by the 1996 Senior Secured Notes and the 1997 Senior Secured Notes and (b) the Notes and other Additional Parity Debt; and 

I-G. Section 6(I)(ii) of each of the Outstanding Agreements is hereby deleted in its entirety and the
following shall be inserted in lieu thereof: 
 (ii) such transaction is in connection with the
incurrence of Indebtedness pursuant to Section 6B(viii) or Section 6B(xiv), 
 I-H.
Section 7(A)(xv) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 

(xv) any of the events described in clauses (a), (b) or (c) shall occur: (a) the General
Partner shall be engaged in any business or activities other than those permitted by the Partnership Agreement as in effect from time to time and in accordance with Section 6H, or (b) the General Partner ceases to be the sole general
partner of the Company or the Master Partnership, or (c) the Specified Entities shall own, directly or indirectly through Wholly-Owned Subsidiaries, in the aggregate less than 51% of the Capital Stock of the General Partner; or 

I-I. The definition of “Remaining Scheduled Payments” set forth in Section 10(A) of each of the
Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 
 “Remaining Scheduled Payments” shall mean, with respect to the Called Principal of any Note, all payments of such Called Principal and interest (calculated at all times assuming that such
interest is based upon the interest rate on such Note at the time of its initial issuance) thereon that would be due on or after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its
scheduled due date. 

  
 -4-

 I-J. Section 10(B) of each of the Outstanding Agreements is
hereby amended to delete the definitions of “Acquisition Facility,” “Adjusted Consolidated EBITDA,” “Adjusted Consolidated Funded Indebtedness,” “Designated Current Manager,” “Heritage,”
“Lock-Up Period,” “Proposed Reorganization,” and “Revolving Working Capital Facility” in their entirety and, for purposes of further clarification, all references to those terms in each of the Outstanding Agreements are
hereby deleted in their entirety and any provision which refers to those terms is hereby deleted in its entirety. 
 I-K. The definition of “Consolidated Funded Indebtedness” set forth in Section 10(B) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall
be inserted in lieu thereof: 
 “Consolidated Funded Indebtedness” shall mean,
as of any date of determination, the aggregate amount of Indebtedness of the Company and its Subsidiaries outstanding on that date, whether current or long-term, including the Notes, the 1996 Senior Secured Notes and the 1997 Senior Secured Notes.

 I-L. The definition of “Contracted Dollar” set forth in Section 10(B) of each of the
Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 
 “Contracted Dollar” shall mean $10,000,000 (which is the aggregate principal amount permitted with respect to Indebtedness owing to sellers in Asset Acquisitions (in addition to permitted
Non-Compete Obligations)). 
 I-M. The definition of “Current Management” set forth in
Section 10(B) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 
 “Current Management” shall mean any of the following: William G. Powers, R. Paul Grady, Karen Z. Hicks, Eric P. Beatty, the Chief Executive Officer of either of the General Partner or
Energy Transfer Partners, L.L.C. and the Chief Financial Officer of either of General Partner or Energy Transfer Partners, L.L.C., together with the heirs of, and trusts for the benefit of family members controlled by, any such executive manager.

 I-N. The definition of “General Partner” set forth in Section 10(B) of each of the
Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 
 “General Partner” shall mean Energy Transfer Partners GP L.P. (formerly U.S. Propane), in its capacity as general partner of the Company. 

  
 -5-

 I-O. The definition of “Master Partnership” set forth in
Section 10(B) of each of the Outstanding Agreements is hereby deleted in its entirety and the following shall be inserted in lieu thereof: 
 “Master Partnership” shall mean Energy Transfer Partners, L.P., a Delaware limited partnership. 
 ARTICLE II 
 AMENDMENT 

II-A. In addition to, and not in limitation of, the Non-Investment Grade Increase under and as
defined in Section II-C of the Sixth Amendment Agreement that may be applicable to the Notes from time to time, if at any time, the long-term credit rating of the Company is less than “BBB-” (or its equivalent) by a Rating Agency, and the
long-term credit rating of the Master Partnership is below BB+ (or its equivalent) by a Rating Agency, or if two or more ratings of the Master Partnership are withdrawn, the interest rate per annum specified in each Outstanding Note issued
heretofore and outstanding as of the effective date of this Seventh Amendment as determined in accordance with Article III hereof, shall increase by 50 basis points (0.50%) (which 50 basis points (0.50%) shall be referred to herein as the
“Downgrade Interest Increase”, any such Downgrade Interest Increase being in addition to any then applicable Non-Investment Grade Increase described above); provided, however, that if, at any time, two or more Rating
Agencies shall have given long-term debt ratings to the Company or to the Master Partnership and such ratings fall within different rating categories (after giving effect to numerical or other qualifiers), the lower rating (i.e. worse) of a Rating
Agency will control for purposes of the foregoing. After the Downgrade Interest Increase becomes applicable, (a) if at any time the Company is rated “BBB-” (or its equivalent) or better by a Rating Agency, and the Master Partnership
is rated BB+ (or its equivalent) or better by a Rating Agency, the interest rate on the unpaid balance thereof, commencing on the date of such rating change, shall revert to the interest rate per annum specified in such Note and interest on such
Note shall not include the Downgrade Interest Increase, and (b) if at any time the Company is rated less than “BBB-” (or its equivalent) by a Rating Agency, and the Master Partnership is rated below BB+ (or its equivalent) by a Rating
Agency, or if two or more ratings of the Master Partnership are withdrawn, the interest rate on the unpaid balance thereof, commencing on the date of such rating change, shall be the interest rate per annum specified in such Note and increased by
the Downgrade Interest Increase. In furtherance of the foregoing, the parties to this Seventh Amendment Agreement hereby agree and acknowledge that the forms of Notes attached to each of the Outstanding Agreements are hereby amended and modified
with respect to all Notes issued after the date of the effectiveness of this Seventh Amendment Agreement to include the above paragraph and interest shall continue to be calculated as provided in each of the Outstanding Agreements. All Outstanding
Notes issued prior to the date of the effectiveness of this Seventh Amendment Agreement will remain in their current form; provided that, at the request of any holder of the Outstanding Notes, the Company will either (x) exchange the
Note held by such holder for a new Note, which will be identical to the Note being exchanged in all respects except that it will include the above paragraph or (y) execute and deliver to each such holder an attachment (the “7th Amendment Sticker”) setting forth the provisions of this Section II-A, which
7th Amendment Sticker shall be attached to each
Outstanding Note held by such holder, in each case, a such holder may request; and, provided, further, that the failure to attach such 7th Amendment Sticker to any Outstanding Note shall not affect the validity or binding effect of this Section II-A.

  
 -6-

 ARTICLE III 
 CONDITIONS OF EFFECTIVENESS 
 The effectiveness of this
Seventh Amendment Agreement (and each of the amendments contained herein) is subject to the satisfaction of the following conditions: 
 (a) the Required Holders under each of the Outstanding Agreements shall have consented to this Seventh Amendment Agreement as evidenced by their execution hereof; 

(b) each of the holders of the Outstanding Notes shall have received an amendment fee from the Company in
an amount equal to 0.15% of the aggregate principal amount of the Outstanding Notes held by such holder (the “Amendment Fee”); 
 (c) the holders of the Outstanding Notes shall have received evidence reasonably satisfactory to them of the termination of the Acquisition Facility and the Revolving Working Capital Facility; and

 (d) the Company shall have paid all reasonable out-of-pocket costs and expenses of the holders
of the Outstanding Notes in connection with the preparation, negotiation, execution and delivery of this Seventh Amendment Agreement (including, without limitation, the reasonable fees and expenses of counsel for such holders). 

ARTICLE IV 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
 In order to induce the holders of the Notes to enter into this Seventh Amendment Agreement, the Company represents and warrants that: 

(a) no Default or Event of Default has occurred and is continuing and after giving effect to this Seventh
Amendment Agreement, no Event of Default shall have occurred; 
 (b) the Company has taken all
necessary partnership action to authorize the execution, delivery and performance by it of this Seventh Amendment Agreement and duly executed and delivered this Seventh Amendment Agreement; 

(c) the execution, delivery and performance by the Company of this Seventh Amendment Agreement are within
its limited partnership powers, have been duly authorized by all necessary limited partnership action and do not and will not (i) violate any provision of its partnership agreement or other governing documents, contravene any 

  
 -7-

 material law applicable to it or (ii) conflict with, result in a breach
of or constitute a default under any material agreement to which the Company is a party, by which it or any of its properties is bound or to which it is subject; and 

(d) this Seventh Amendment Agreement constitutes the legal, valid and binding obligations of the Company
enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally and general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law). 
 ARTICLE V 

MISCELLANEOUS 
 V-A. If the foregoing is acceptable to you, kindly note your acceptance in the space provided below and upon satisfaction of the conditions to effectiveness set forth in Article II above, your
consent to this Seventh Amendment Agreement shall be deemed to have been given and the Outstanding Agreements shall be amended as set forth above. 
 V-B. This Seventh Amendment Agreement may be executed by the parties hereto individually, or in any combination of the parties hereto in several counterparts, all of which taken together shall
constitute one and the same Seventh Amendment Agreement. 
 V-C. Except as amended hereby, all of the
representations, warranties, provisions, covenants, terms and conditions of the Outstanding Agreements shall remain unaltered and in full force and effect and the Outstanding Agreements, as amended hereby, are in all respects agreed to, ratified and
confirmed by the Company. The Company acknowledges and agrees that the granting of amendments herein shall not be construed as establishing a course of conduct on the part of the holders of the Outstanding Notes upon which the Company may rely at
any time in the future. 
 V-D. Upon the effectiveness of this Seventh Amendment Agreement, each
reference in each Outstanding Agreement and in other documents describing or referencing such Outstanding Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring to
such Outstanding Agreement, shall mean and be a referenced to such Outstanding Agreement as amended hereby. 
  

 

	
	 Very truly yours,

	
	 HERITAGE OPERATING, L.P.

	
	 By: Energy Transfer Partners GP, L.P., its

	 General Partner

  
 -8-

 
			
	 By: Energy Transfer Partners, L.L.C., its

General Partner

		
	By:	 	 /s/ Martin Salinas, Jr.

	Name:	 	Martin Salinas, Jr.
	Its:	 	Chief Financial Officer

  
 -9-

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 MONY Life Insurance Company 

 

			
	 By:
	 	 /s/ Amy Judd

	 Its:
	 	 Investment Officer

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 ALLSTATE LIFE INSURANCE COMPANY 

 

			
	 By:
	 	 /s/ Jerry D. Zinkula

	 Its:
	 	 Authorized Signatory

	  
 By:
	 	 /s/ Mark Cloghessy

	 Its:
	 	 Authorized Signatory

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

  

			
	 By:
	 	 Babson Capital Management LLC,
 Its Investment Adviser

		
	 By:
	 	 /s/ Elisabeth A. Perenick

	 Its:
	 	 Managing Director

C.M. LIFE INSURANCE COMPANY 
  

			
	 By:
	 	 Babson Capital Management LLC,
 Its Investment Adviser

		
	 By:
	 	 /s/ Elisabeth A. Perenick

	 Its:
	 	 Managing Director

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 CONNECTICUT GENERAL LIFE INSURANCE COMPANY 

 

			
	 By:
	 	CIGNA Investments, Inc. (authorized agent)
		
	 By:
	 	 /s/ Lori E. Hopkins

	 Its:
	 	 Managing Director

LIFE INSURANCE COMPANY OF NORTH AMERICA 
  

			
	 By:
	 	CIGNA Investments, Inc. (authorized agent)
		
	 By:
	 	 /s/ Lori E. Hopkins

	 Its:
	 	 Managing Director

 The foregoing Seventh Amendment Agreement and the
amendments referred to therein are hereby accepted and agreed to as of February 17th, 2011, and the undersigned hereby confirms that on
February 17th, 2011 it held the aggregate principal
amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and that on the date of execution hereof it continues to hold such Outstanding Notes. 
 GENWORTH LIFE INSURANCE COMPANY 
  

			
	 By:
	 	 /s/ [illegible]

	 Its:
	 	 Investment Officer

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
		
	 By:
	 	 /s/ Brian Keating

	 Its:
	 	 Managing Director

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 RELIASTAR LIFE INSURANCE COMPANY

	 By:
	 	ING Investment Management LLC, as Agent
		
	 By:
	 	 /s/ Paul Aronson

	 Its:
	 	 Vice President

	
	RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
	 By:
	 	ING Investment Management LLC, as Agent
		
	 By:
	 	 /s/ Paul Aronson

	 Its:
	 	 Vice President

	
	RELIASTAR LIFE INSURANCE COMPANY (successor by merger to Northern Life Insurance Company)
	 By:
	 	ING Investment Management LLC, as Agent
		
	 By:
	 	 /s/ Paul Aronson

	 Its:
	 	 Vice President

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 John Hancock Life Insurance Company (U.S.A.), successor by merger to John Hancock Life Insurance Company and John Hancock
Variable Life Insurance Company
  

	 By:
	 	 /s/ [illegible ]

	 Its:
	 	 Director

	
	John Hancock Life Insurance Company of New York
		
	 By:
	 	 /s/ [illegible]

	 Its:
	 	 Director

	
	 John Hancock Life & Health Insurance Company

		
	 By:
	 	 /s/ [illegible]

	 Its:
	 	 Director

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 SIGNATURE 6 LIMITED

 

	 By:
	 	Hancock Capital Investment Management, LLC, as Portfolio Advisor
		
	 By:
	 	 /s/ Willma H. Davis

	 Its:
	 	 Senior Managing Director

	
	 SIGNATURE 7 L.P.

	 By:
	 	 Hancock Capital Investment Management, LLC, as Portfolio Advisor

		
	 By:
	 	 /s/ Willma H. Davis

	 Its:
	 	 Senior Managing Director

	
	JPMORGAN CHASE BANK, not individually but solely in its capacity as Directed Trustee for the SBC Master Pension Trust (fka AT&T Long Term Investment
Trust)
		
	 By:
	 	 /s/ Jacqueline Savage

	 Its:
	 	 Assistant Vice President

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 METROPOLITAN LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ John A. Tanyeri

	 Name:
	 	 John A. Tanyeri

	 Title:
	 	 Director

	
	UNION FIDELITY LIFE INSURANCE COMPANY
	 By:
	 	MetLife Investment Advisors Company, LLC, its investment adviser
		
	 By:
	 	 /s/ John A. Tanyeri

	 Name:
	 	 John A. Tanyeri

	 Title:
	 	 Director

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 NEW YORK LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ Trinh Nguyen

	 Its:
	 	 Corporate Vice President

		
	 By:
	 	  

	 Its:
	 	  

	
	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
	By:	 	New York Life Investment Management LLC, its Investment Manager
		
	 By:
	 	 /s/ Trinh Nguyen

	 Its:
	 	 Director

		
	 By:
	 	  

	 Its:
	 	  

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 PACIFIC LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ [illegible]

	 Its:
	 	 Assistant Vice President

		
	 By:
	 	 /s/ Diane W. Oales

	 Its:
	 	 Assistant Secretary

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 PHOENIX LIFE INSURANCE COMPANY

(f/k/a PHOENIX HOME LIFE MUTUAL
INSURANCE COMPANY)

		
	 By:
	 	 /s/ [illegible]

	 Its:
	 	 Executive VP / CIO

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 PRINCIPAL LIFE INSURANCE COMPANY

 (fka Principal Mutual Life Insurance Company) 

 

			
	 By:
	 	 Principal Global Investors, LLC,
 Its authorized signatory

		
	 By:
	 	 /s/ Colin Pennycooke

	 Its:
	 	 Counsel

		
	 By:
	 	 /s/ Joellen J. Watts

		
	 Its:
	 	 Counsel

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 17, 2011, and the undersigned hereby confirms that on February 17, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
  

			
	 PROTECTIVE LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ Lance P. Black

	 Its:
	 	 Treasurer

 The foregoing Seventh Amendment Agreement and the amendments referred to
therein are hereby accepted and agreed to as of February 22, 2011, and the undersigned hereby confirms that on February 22, 2011 it held the aggregate principal amount of Outstanding Notes of the Company set forth on Schedule 1 hereto and
that on the date of execution hereof it continues to hold such Outstanding Notes. 
 PRUDENTIAL RETIREMENT INSURANCE AND

 ANNUITY COMPANY 
  

			
	 By:
	 	 Prudential Investment Management, Inc.,

As investment manager

		
	 By:
	 	 /s/ Timothy M. Laczkowski

	 Its:
	 	 Vice President

 SCHEDULE 1 

 

			
	 NAME OF HOLDER

OF OUTSTANDING NOTES
	  	 PRINCIPAL AMOUNT AND

SERIES OF OUTSTANDING
 NOTES HELD AS OF
 FEBRUARY 22, 2011

 ANNEX A 

Section 1. Definitions. Capitalized terms defined in the Outstanding Agreements1 (as defined in the promissory note to which this Annex A is attached
(the “Intercompany Note”)) and not otherwise defined herein have, as used in this Annex A, the respective meanings provided for therein. The following additional terms, as used herein, have the following respective meanings:

 “Secured Party” means the Collateral Agent any holder of the 1996 Notes, the Series B Notes,
2000 Series D Notes, 2000 Series E Notes, 2000 Series F Notes, 2001 Series H Notes, 2001 Series I Notes or of any Parity Debt. 
 “Senior Debt” means (x) the principal of, Premium, if any, with respect to, and interest on (including, without limitation, any interest which accrues after the commencement of any
case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of the Company, whether or not an allowable claim) under the 1996 Notes, the Series B Notes, 2000 Series D Notes, 2000 Series E Notes, 2000 Series F Notes,
2001 Series H Notes, 2001 Series I Notes, the Outstanding Agreements, any Parity Debt and any agreements governing such Parity Debt (including all reimbursement obligations thereunder) and (y) all other obligations and indebtedness of the
General Partner and the Company (including, without limitation, indemnities, fees and expenses and interest thereon) of the General Partner and the Company to the holders of Notes and the Collateral Agent now existing or hereafter incurred under,
arising out of, or in connection with, the 1996 Notes, the Series B Notes, 2000 Series D Notes, 2000 Series E Notes, 2000 Series F Notes, 2001 Series H Notes, 2001 Series I Notes, the Outstanding Agreements, the Parity Debt, the agreements governing
the Parity Debt and the Security Documents, together with all renewals, extensions, increases or rearrangements thereof. 
 “Subordinated Debt” means the principal of, premium, if any, with respect to, and interest on (including, without limitation, any interest which accrues after the commencement of any
case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of the Company, whether or not an allowable claim) under the Intercompany Note and other obligations and indebtedness (including, without limitation,
indemnities, fees and expenses and interest thereon) of the General Partner and the Company to [INSERT NAME OF
AFFILIATE]2 now existing or hereafter incurred under,
arising out of, or in connection with, the Intercompany Note. 
 Section 2. Subordination by [INSERT
NAME OF AFFILIATE]. [INSERT NAME OF AFFILIATE] hereby covenants and agrees that the payment of the Subordinated Debt shall be subordinate and subject in right of payment, to the extent set forth herein, to the prior payment in full in cash of
the Senior Debt. The provisions of this Annex A shall constitute a continuing offer to all Persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior Debt, and such provisions are made for the benefit of the

  
  

	1 	 Outstanding Agreements to be defined as in the preamble to the 7th Amendment Agreement, as such Outstanding Agreements may be amended, supplemented, replaced, refinanced or modified
from time to time. 

	2 	 The term to include all successors and assigns. 

 Annex A - 1 

 
holders of the Senior Debt. The holders of the Senior Debt are hereby made obligees hereunder with the same force and effect as if their names were written herein as such, and they and/or each of
them may proceed to enforce such provisions. 
 Section 3. Priority and Payment Over in Certain Events.

 (a) Priority and Payment Over Upon Insolvency and Dissolution. In the event of (x) any
insolvency or bankruptcy case or proceeding or any receivership, liquidation, reorganization or similar case or proceeding in connection therewith relative to the Company or its creditors, as such, or to its assets, or (y) any liquidation,
dissolution or other winding up of the Company, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy or (z) any assignment for the benefit of creditors or other marshaling of assets and liabilities of the
Company, then and in any such event: 
 (i) the holders of the Senior Debt shall be entitled to
receive payment in full in cash of all amounts due or to become due on or in respect of all Senior Debt before [INSERT NAME OF AFFILIATE] shall be entitled to receive and retain any direct or indirect payment on account of the principal, interest or
other amounts due or to become due on the Subordinated Debt, including, without limitation, by exercise of any right of set off and any payment which might be payable or deliverable by reason of any other indebtedness being subordinated in right of
payment to the Subordinated Debt (other than in the form of securities permitted to be paid in accordance with the first parenthetical in clause (ii) below); and 

(ii) any payment or distribution of any kind or character, whether in cash, property or securities which
may be payable or deliverable in respect of the Subordinated Debt in any such case, proceeding, dissolution, liquidation or other winding up or event, including any such payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company which is subordinated to the payment of the Subordinated Debt (except for any such payment or distribution (each an “Excepted Payment”) (A) authorized by an unstayed, final,
nonappealable order or decree stating that effect is being given to the subordination of the Subordinated Debt to the Senior Debt and made by a court of competent jurisdiction in a reorganization proceeding under any applicable bankruptcy law and
(B) of securities which, if debt securities, are subordinated to at least the same extent as the Subordinated Debt is to (y) the Senior Debt or (z) any securities issued in exchange for the Senior Debt; provided, however, that
(i) the final maturity date of such securities shall not be earlier than one year following the maturity date of the last to mature of the Senior Debt (including any securities issued in exchange therefor) at the time outstanding and
(ii) such securities shall contain covenants and shall not contain greater defaults than as are contained in such instruments), shall be paid by the Company or by the trustee in bankruptcy, debtor-in-possession, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of assets of the Company directly to the Collateral Agent to the extent necessary to pay all Senior Debt in full in cash after giving effect to any concurrent payment or
distribution to or for the benefit of the holders of the Senior Debt. 
 Annex A - 2 

 The consolidation of the Company with, or the merger of the Company into,
another Person or the liquidation or dissolution of the Company following the conveyance or transfer of its assets substantially as an entirety to another Person upon terms and conditions permitted under the Outstanding Agreements shall not be
deemed a dissolution, winding up, liquidation, reorganization, assignment for the benefit of creditors or marshaling of assets and liabilities of the Company for purposes of this Section 3(a) if the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or transfer such property and assets substantially as an entirety, as the case may be, shall comply with the conditions set forth in the Outstanding Agreements as a prerequisite
for such consolidation, merger, conveyance or transfer. 
 (b) Payment on Subordinated Debt Suspended When
Senior Debt is in Default. In the event and during the continuation of any Default or Event of Default under the Outstanding Agreements or under any other agreement or instrument evidencing or securing any Senior Debt, then unless and until
such Default or Event of Default shall have been cured or waived or shall have ceased to exist and any resulting acceleration shall have been rescinded or annulled, or in the event any judicial proceeding shall be pending with respect to any such
Default or Event of Default, then no direct or indirect payment, including any payment which may be payable by reason of the payment of any other indebtedness of the Company which is subordinated to the payment of the Subordinated Debt) (but
excluding any Excepted Payment), shall be made by or on behalf of the Company on account of the principal of or interest on the Subordinated Debt or on account of the purchase or other acquisition by it of the Subordinated Debt. The provisions of
this Section 3(b) shall not apply to any payment with respect to which Section 3(a) would be applicable. 
 (c) Rights and Obligations of [INSERT NAME OF AFFILIATE]. If, notwithstanding the foregoing provisions of this Section 3, [INSERT NAME OF AFFILIATE] shall have received any payment or
distribution of assets of the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company
which is subordinated to the payment of the Subordinated Debt (but excluding any Excepted Payment), before all amounts due or to become due on or in respect of all Senior Debt have been irrevocably paid in full in cash, then and in such event such
payment or distribution shall be received in trust for the Secured Parties and other holders of the Senior Debt and shall be forthwith paid over or delivered by [INSERT NAME OF AFFILIATE] receiving the same directly to the Collateral Agent or, to
the extent legally required, to the trustee in bankruptcy, debtor-in-possession, receiver, liquidating trustee, custodian, assignee, agent or other Person making such payment or distribution of assets of the Company, for application to the payment
of all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full after giving effect to any concurrent payment or distribution to or for the benefit of the holders of the Senior Debt. 

Section 4. Rights of the Creditors Not to be Impaired. No right of the Collateral Agent or any other
Secured Party or any other present or future holder of the Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act in good faith by the Collateral Agent or any other
such Secured Party or other holder of the Senior Debt or by any noncompliance by [INSERT NAME 
 Annex A - 3 

 OF AFFILIATE] with the terms and provisions and covenants herein regardless of any knowledge
thereof the Collateral Agent or any other such Secured Party or other holder may have or otherwise be charged with. The holders of the Senior Debt may, without in any way affecting the obligations of [INSERT NAME OF AFFILIATE] with respect thereto,
at any time or from time to time in their absolute discretion, change the manner, place or terms or payment of, change or extend the time or payment of or renew or alter any Senior Debt, or amend, supplement or modify any agreement or instrument
governing or evidencing such Senior Debt or any other document referred to therein, or exercise or refrain from exercising any other of their rights under the Senior Debt including, without limitation, the waiver of any Default or Event of Default
thereunder and the release of any collateral securing such Senior Debt, all without notice to or assent from [INSERT NAME OF AFFILIATE]. The provisions of this Annex A are intended to be for the benefit of the Secured Parties and each other holder
of the Senior Debt and shall be enforceable directly by the Collateral Agent or other Secured Parties, as applicable, or any other present or future holder or holders of the Senior Debt. 

Section 5. Restriction on Assignment of Subordinated Debt. [INSERT NAME OF AFFILIATE] agrees not to sell,
assign or transfer all or any part of the Subordinated Debt while any Senior Debt remains unpaid. [INSERT NAME OF AFFILIATE] represents that no other subordination of the Subordinated Debt is in existence on the date hereof, and [INSERT NAME OF
AFFILIATE] agrees that the Subordinated Debt will not be subordinated to any indebtedness other than the Senior Debt. 
 Section 6. Reliance on Subordination. [INSERT NAME OF AFFILIATE] consents and agrees that all Senior Debt shall be deemed to have been made or incurred at the request of [INSERT NAME OF
AFFILIATE] and in reliance upon the subordination of the Subordinated Debt pursuant to this Annex A. 

Section 7. Actions Against the Company; Exercise of Remedies. [INSERT NAME OF AFFILIATE] will not
(i) commence (unless the Collateral Agent or other holders of the Senior Debt shall have commenced) any action or proceeding against the Company to recover all or any part of the Subordinated Debt or (ii) join with any creditor (unless the
Collateral Agent or other holders of the Senior Debt shall also join) in bringing any proceeding against the Company under the United States Bankruptcy Code or any other state, federal or foreign insolvency statute unless and until, in each case,
the Senior Debt shall have been irrevocably paid in full in cash. [INSERT NAME OF AFFILIATE] will not ask, demand, sue for, take or receive from the Company, directly or indirectly, in cash, property or securities or by set off or in any other
manner (including, without limitation, from or by way of attachment or seizure of or foreclosure upon any property or assets of the Company which may now or hereafter constitute collateral for any Subordinated Debt), payment of all or any part of
the Subordinated Debt if an Event of Default shall have occurred and be continuing under the Outstanding Agreements or under any other agreement or instrument evidencing or securing the Senior Debt unless and until all Senior Debt shall have been
irrevocably paid in full in cash or the benefits of this sentence waived by or on behalf of the Creditors or the other holder or holders of the Senior Debt. 
 Annex A - 4 

 Section 8. Subrogation. [INSERT NAME OF AFFILIATE] shall be
subrogated to the rights of the holders of the Senior Debt to receive payments or distributions of assets of the Company applicable to the Senior Debt until all amounts owing on the Subordinated Debt have been paid in full; provided that [INSERT
NAME OF AFFILIATE] shall not enforce any payment by way of subrogation (whether contractual, under Section 509 of the United States Bankruptcy Code or otherwise) until all amounts payable under or with respect to the Senior Debt have been
irrevocably paid in full in cash. For the purposes of the rights of subrogation set forth in this Section 8, no payments or distributions to any Secured Party or other holder or holders of the Senior Debt of any cash, property or securities to
which [INSERT NAME OF AFFILIATE] would be entitled but for the provisions of this Annex A, and no payments over pursuant to the provisions of this Annex A to any Secured Party or holder or other holders of the Senior Debt by [INSERT NAME OF
AFFILIATE], shall, as among the Company, its creditors (other than the Secured Parties and any other holder or holders of the Senior Debt) and [INSERT NAME OF AFFILIATE], be deemed to be a payment or distribution by the Company to or on account of
the Senior Debt, it being understood that the provisions of this Annex A are solely for the purpose of defining the relative rights of the Secured Parties or any other holder or holders of the Senior Debt and [INSERT NAME OF AFFILIATE]. 

If any payment or distribution to which [INSERT NAME OF AFFILIATE] would otherwise have been entitled but for the
provisions of this Annex A shall have been applied, pursuant to the provisions of this Annex A, to the payment of all amounts payable under the Senior Debt, then [INSERT NAME OF AFFILIATE] shall be entitled to receive from the Secured Parties or
other holder or holders of the Senior Debt at the time outstanding any payments or distributions received by the Secured Parties or such holder or holders of the Senior Debt in excess of the amount sufficient to irrevocably pay all amounts under or
in respect of the Senior Debt in full in cash. 
 Section 9. Waiver of UCC Provisions. If any
applicable provisions of the Uniform Commercial Code as in effect in the State of New York or any other relevant jurisdiction (the “UCC”) requires the Collateral Agent or any other Secured Party or holder of the Senior Debt or any
representative thereof to notify [INSERT NAME OF AFFILIATE] that the Collateral Agent or such other Secured Party or holder or representative thereof will foreclose or otherwise realize upon any collateral or other property provided to secure the
Senior Debt, whether pursuant to Article 9 of the UCC or otherwise, [INSERT NAME OF AFFILIATE] hereby waives, to the extent permitted by applicable law, all such required notice(s) and, to the extent such requirement of notice may not be waived
under applicable law, agrees that five Business Days’ written notice of any such foreclosure or other realization shall be commercially reasonable [INSERT NAME OF AFFILIATE] further waives, to the extent permitted by applicable law, any and all
rights it may have to require the Collateral Agent or any other Secured Party or other holder of the Senior Debt or representative thereof to marshal any collateral or other property provided as security for the Senior Debt and any and all other
rights and remedies now or hereafter available to [INSERT NAME OF AFFILIATE] under Section 9-611 of the UCC. [INSERT NAME OF AFFILIATE] agrees that the Collateral Agent and any other Secured Party or holder of the Senior Debt or representative
thereof may sell inventory that constitutes collateral or other security for any Senior Debt pursuant to a repurchase agreement, that such sale shall not be deemed a transfer subject to Section 9-618 of the UCC or any similar provisions of any
other applicable law (such provisions, to the extent otherwise applicable to such sale, being hereby waived), and that the repurchase of inventory by a seller under a repurchase agreement shall be a commercially reasonable method of disposition.

 Annex A - 5 

 Section 10. Proofs of Claim. [INSERT NAME OF AFFILIATE] may
file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of [INSERT NAME OF AFFILIATE] allowed in any judicial proceedings relative to the Company, its creditors or its property. If [INSERT
NAME OF AFFILIATE] files any claim, proof of claim or similar instrument in any judicial proceeding referred to above and all Senior Debt has not been irrevocably paid in full in cash, [INSERT NAME OF AFFILIATE] shall (i) file such claim, proof
of claim or similar instrument on behalf of the Secured Parties and the other holder or holders of the Senior Debt as such Secured Parties’ or other holder’s or holders’ interests may appear and (ii) take all such other actions
as may be appropriate to ensure that all payments and distributions made in respect of any such proceedings are made to the Collateral Agent or the other Secured Parties, as applicable, and any other holder or holders of the Senior Debt as its or
their interests may appear. 
 Any term or provision of this Section 10 to the contrary notwithstanding, if
any judicial proceeding referred to above is commenced by or against the Company, and so long as all Senior Debt has not been irrevocably paid in full in cash: (i) the Collateral Agent or any other holder or holders of the Senior Debt or
representatives thereof are hereby irrevocably authorized and empowered (in each case, in its own name, as agent or representative on behalf of the Secured Parties or in the name of [INSERT NAME OF AFFILIATE] or otherwise), but shall have no
obligation, to (A) demand, sue for, collect and receive every payment or distribution received in respect of any such proceeding and give acquittance therefor and to file claims and proofs of claims and (B) exercise any voting rights
otherwise attributable to [INSERT NAME OF AFFILIATE] in any such proceeding; (ii) [INSERT NAME OF AFFILIATE] shall duly and promptly take, for the account of the Secured Parties and any other holders or holders of the Senior Debt, such action
as the Collateral Agent or the Secured Parties, as applicable, or other holder or holders of the Senior Debt or representatives thereof may request to collect all amounts payable by the Company in respect of the Subordinated Debt and to file the
appropriate claims or proofs of claim in respect of the Subordinated Debt; and (iii) [INSERT NAME OF AFFILIATE] shall, at the request of the Collateral Agent or the Secured Parties, as applicable, or other holder or holders of the Senior Debt
or representatives thereof, duly and promptly consent to or join in or stipulate its agreement with any action or position which the Secured Parties and each other holder of the Senior Debt may take in any such judicial proceeding referred to above,
including, without limitation, such actions and positions as the Secured Parties may take with respect to requests for relief from the automatic stay, for authority to use cash collateral or to use, sell or lease other property of the estate, for
assumption, assignment or rejection of any executory contract and to obtain credit. [INSERT NAME OF AFFILIATE] hereby appoints the Collateral Agent or other holder or holders of the Senior Debt or representatives thereof as its agent(s) and
attorney(s) in fact, all acts of such attorney(s) being hereby ratified and confirmed and such appointment(s), being coupled with an interest, being irrevocable until the Senior Debt is irrevocably paid in full in cash, to exercise the rights and
file the claims referred to in this Section 10 and to execute and deliver any documentation necessary for the exercise of such rights or to file such claims. Notwithstanding anything to the contrary contained herein, [INSERT NAME OF AFFILIATE]
shall not file any claim or take any action which competes or interferes with the rights and interests of the Secured Parties or any other holders of the Senior Debt under the Outstanding Agreements, any other Financing Document or any other
agreement or instrument evidencing or securing the Senior Debt. Until the Senior Debt has been irrevocably paid in full in cash, [INSERT NAME OF AFFILIATE] will not (in any proceeding 

Annex A - 6 

 of the type described in Section 3(a)) discharge all or any portion of the obligations
of the Company in respect of the Subordinated Debt, whether by forgiveness, receipt of capital stock, exercise of conversion privileges or otherwise, without the prior written consent of the Collateral Agent or the Secured Parties, as applicable, or
the holder or holders of the Senior Debt. 
 Section 11. Obligation of the Company Unconditional.
Nothing contained in this Annex A or in the Intercompany Note is intended to or shall impair, as between the Company and [INSERT NAME OF AFFILIATE], the obligation of the Company, which is absolute and unconditional, to pay to [INSERT NAME OF
AFFILIATE] the principal of and interest on the Intercompany Note as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of [INSERT NAME OF AFFILIATE] and creditors of
the Company other than the holders of the Senior Debt, nor shall anything herein or therein, except as expressly provided, prevent [INSERT NAME OF AFFILIATE] from exercising all remedies otherwise permitted by applicable law, subject to the rights,
if any, under this Annex A of the holders of Senior Debt in respect of cash, property, or securities of the Company received upon the exercise of any such remedy. Upon any distribution of assets of the Company referred to in this Annex A, [INSERT
NAME OF AFFILIATE] shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are pending, or a certificate of the liquidating
trustee or agent or other Person making any distribution to [INSERT NAME OF AFFILIATE], for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Annex A. 
 Section 12. Reinstatements in Certain Circumstances. If, at any time, all or part of any payment with respect to Senior Debt theretofore made by the Company or any other Person is rescinded
or must otherwise be returned by the holders of Senior Debt for any reason whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of Company or such other Persons), the subordination provisions set forth herein shall
continue to be effective or be reinstated, as the case may be, all as though such payment had not been made. 
 Annex A - 7

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