Document:

EX-10.17

 Exhibit 10.17 

EXECUTIVE TRANSITION AGREEMENT 

THIS EXECUTIVE TRANSITION AGREEMENT (this “Agreement”) dated as of November 3, 2021 is made by and between Christopher
Gardier (hereinafter referred to as “Executive”) and John B. Sanfilippo & Son, Inc. (hereinafter referred to as the “Company”). Executive and the Company are collectively herein referred to as the
“Parties” and individually as a “Party.” 
 WHEREAS, Executive is currently employed as Senior Vice
President, Consumer Sales, of the Company. 
 WHEREAS, Executive has notified the Company, and the Company and Executive have agreed, that
Executive will voluntarily retire on July 22nd, 2022 or such earlier date as may be specified by the Company in its sole discretion and at any time (the “Separation Date”). 

WHEREAS, this Agreement sets forth the terms and conditions with respect to the remaining period of employment of Executive with the Company,
and the terms and conditions of separation for Executive upon his ceasing to be an employee of the Company. 
 WHEREAS, Executive
acknowledges and agrees that he is not otherwise entitled to continued employment with the Company or the separation payments and benefits contemplated hereby. 

WHEREAS, it is contemplated that the Parties execute and deliver the Retirement Agreement and General Release, in the form of Exhibit A
attached hereto (the “Retirement Agreement”), on or within seven (7) business days following the Separation Date, subject to the terms and conditions of this Agreement. 

WHEREAS, Executive holds a number restricted stock unit awards under the Company’s 2014 Omnibus Incentive Plan, as set forth on
Exhibit B attached hereto (as the case may be, the “Outstanding RSU Awards” or the “RSU Award Agreements”). 

WHEREAS, Executive is currently a participant in the Sanfilippo Value Added Plan (the “SVA Plan”) in respect of the 2022
fiscal year of the Company at the level of 60 percent of his base salary, which (for the avoidance of doubt) will be based on his base salary paid during fiscal year 2022. 

WHEREAS, as of the date of this Agreement, the base salary of Executive is $314,075.93 (the “Current Base Salary”). 

NOW, THEREFORE, in consideration of the mutual promises and mutual covenants contained herein, Executive and the Company agree as follows:

 Section 1.    Title, Compensation and Benefits Through the Separation Date. 

 

	 	a.	 From and after the date hereof, until the Separation Date, Executive shall remain Senior Vice President,
Consumer Sales, of the Company and shall report to the Executive Vice President, Sales and Marketing. For the avoidance of doubt, 

	 	
effective on the date hereof, Executive is resigning from all other officer positions (if any) held with or on behalf of the Company. On the Separation Date, Executive will resign from any and
all officer or other positions, including Senior Vice President, Consumer Sales, then held with or on behalf of the Company. 

  

	 	b.	 From and after the date hereof, until the Separation Date, Executive shall continue to be paid at the Current
Base Salary rate, payable in bi-weekly installments, pursuant to the regular and customary payroll practices of the Company and shall also be eligible to participate in the health and welfare benefit programs
for non-management personnel. On the Separation Date and thereafter, Executive will be eligible to continue such benefits in accordance with COBRA (as defined herein) and as provided in this Agreement.

  

	 	c.	 Executive is and shall be a participant in the SVA Plan for the 2022 fiscal year of the Company (with a target
bonus percentage of 60 percent of his paid base salary during such fiscal year) and thus eligible for an incentive award thereunder, pursuant to the terms and conditions of the SVA Plan. For the avoidance of doubt, any current or prior (already
paid) award under the SVA Plan of the Executive shall remain subject to forfeiture, adjustment, repayment or other claw-back as contemplated by the SVA Plan or any other applicable plan or policy of the Company or as required by law. Notwithstanding
any provision of the SVA Plan or Guidelines thereunder to the contrary, Executive shall not be eligible for any SVA Plan participation or award in respect of fiscal year 2023 (even if the Separation Date occurs in the 2023 fiscal year of the
Company) or for any subsequent or other period. 

  

	 	d.	 Executive shall not be entitled to any further restricted stock unit (RSU) grant or equity award in respect of
the 2022 fiscal year of the Company or otherwise. However, Executive shall retain the Outstanding RSU Awards, which shall continue to vest until the Separation Date, and such shall be treated in accordance with the respective RSU Award Agreement.
Executive acknowledges and confirms that certain Outstanding RSU Awards may or may not vest (or fully vest) and will be forfeited upon the Separation Date, depending upon the timing of the Separation Date. Executive agrees and acknowledges that he
is not entitled to (and has not been granted) any other RSU or other such equity awards or grants, other than the Outstanding RSU Awards. 

Section 2.    Conditional Separation Payments and Separation Benefits. 

 

	 	a.	 In consideration for the promises and covenants of Executive as contemplated by this Agreement and the
Retirement Agreement, if the Eligibility Conditions are satisfied, Executive shall be entitled to (i) a severance benefit equal to twenty-four (24) weeks of compensation at the Current Base Salary, which shall be payable as salary
continuation commencing within thirty (30) days of the Separation Date (the “Separation Payments”), and (ii) if Executive timely and properly elects continuation coverage under COBRA and is eligible to receive COBRA
continuation coverage, the applicable plan premiums shall be fully paid by the 

  
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Company for the period beginning on the Separation Date and ending on the eighteen (18) month anniversary of the Separation Date (the “Separation Benefits”). Amounts payable
pursuant to this Section will not be counted for purposes of calculating any pension or retirement benefit and will not be eligible for 401(k) plan contributions. “COBRA” means the requirements of Part 6 of Subtitle B of Title I of
the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Internal Revenue Code of 1986, as amended. 

  

	 	b.	 The Separation Payments and Separation Benefits shall be subject to withholding for federal and state income
taxes, FICA, Medicare and any other required deductions. 

  

	 	c.	 Executive acknowledges that the Company has no previous or other obligation under any plan, agreement or
otherwise to provide him any Separation Payments or Separation Benefits. 

  

	 	d.	 Eligibility Conditions shall mean (i) Executive timely executes and delivers this Agreement, and this
Agreement becomes effective and is not revoked by Executive as contemplated hereby, (ii) Executive executes and delivers the Retirement Agreement on or within seven (7) business days following the Separation Date, and such becomes
effective and is not revoked pursuant to its terms, (iii) Executive does not voluntarily resign or retire before the Separation Date, and the Company has not terminated (and does not have any basis to terminate) Executive for Cause on or prior
to the Separation Date, and (iv) Executive complies with the terms and conditions of this Agreement, the Retirement Agreement and the RSU Award Agreements. “Cause” shall be defined for all purposes connected with
Executive’s separation from employment with the Company under this Agreement, the Retirement Agreement, the RSU Award Agreements or otherwise as the occurrence of any of the following: (i) Executive’s willful failure to substantially
perform his duties (other than as a result of physical or mental illness or injury) that causes demonstrable material harm to the Company; (ii) Executive’s willful gross misconduct or gross negligence that causes demonstrable material harm
to the Company; (iii) Executive’s willful breach of his fiduciary duty or duty of loyalty to the Company that causes demonstrable material harm to the Company; or (iv) the indictment of Executive or a plea of guilty or nolo contendere
by Executive to any felony or other serious crime involving moral turpitude; provided that with respect to the events in clauses (i), (ii) and (iii) the Company shall have delivered written notice to Executive of its intention to terminate his
employment for Cause, which notice specifies in reasonable detail the circumstances claimed to give rise to the Company’s right to terminate Executive’s employment for Cause and Executive shall not have cured any such circumstances within
thirty (30) days following the Company’s delivery of such written notice. For purposes of the foregoing, no act or failure to act shall be treated as “willful” unless done, or omitted to be done, by Executive not in good faith
and without the reasonable belief that Executive’s action or omission was in the best interest of the Company. To the extent there is any inconsistency or ambiguity between the definition of “Cause” contained in this
Section 2(d), and the Retirement Agreement, the RSU Award Agreements, or other policy, plan, document or agreement sought to be relied on by the Company, the definition of Cause in this Section 2(d) shall govern. 

  
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	 	e.	 Upon any breach by Executive of any of his obligations under this Agreement, the Retirement Agreement or any
RSU Award Agreement, the obligations of the Company to make or continue making or providing Separation Payments and Separation Benefits shall terminate, and Executive shall repay to the Company (within thirty (30) days of notice of any such
breach by the Company) any and all previously paid Separation Payments and Separation Benefits, less $1,000, which residual amount Executive agrees constitutes sufficient consideration for his release of claims under this Agreement and the
Retirement Agreement, as the case may be, which shall remain in full force and effect. 

Section 3.    Transition Duties and Cooperation with Transfer of Knowledge. Executive shall
perform the duties and responsibilities assigned to him from time to time by the Company until the Separation Date. Executive will use his reasonable best efforts to help ensure a smooth transition of his duties and responsibilities to other
employees of the Company, including the employee or employees hired and/or promoted to replace Executive, and assist with projects and questions in regard to all matters relating to the transfer of his responsibilities and knowledge regarding the
Company and its activities. Specifically, Executive also shall work on the matters set forth on Exhibit C hereto. For the avoidance of doubt, Executive may continue to work from home and his primary work location shall be the same. 

Section 4.    Final Compensation. On the first regularly scheduled payday following the
Separation Date, Executive shall receive any accrued but unpaid wages and any earned but unused vacation and/or PTO days. These amounts shall be provided to Executive in his usual method of receiving payroll monies from the Company and are not
contingent upon Executive entering this Agreement or the Retirement Agreement. 
 Section 5.    Return
of Property. Executive agrees that on or before the Separation Date (or prior thereto, as and when the Company so directs) he will: (a) return any Company documents, property, and computerized information including but not
limited to the following: keys, client lists, cell phone, laptop, and any other confidential or Company information or property that Executive possesses; and (b) will review all of Executive’s personal devices, accounts, servers, drives,
and external methods of storage used for accessing, reviewing, storing, or otherwise manipulating Company information and documents, including but not limited to mobile phones, laptops and desktop computers, cloud accounts and other method of off-site information storage, servers, tapes, discs and other recordings (“Personal Devices and Accounts”) and will permanently delete or cause to be permanently deleted from such Personal Devices
and Accounts all Company information and documents, including but not limited to all Confidential Information found on such Personal Devices and Accounts. However, nothing in this Agreement shall be construed to supersede or otherwise diminish any
right or obligation under any confidentiality agreement or other restrictive covenant signed by Executive relating to his employment with the Company. Executive affirms that he has not divulged any proprietary or confidential information of the
Company and will continue to maintain the confidentiality of such information consistent with company policies and his contractual obligations relative to confidential and proprietary information that were in effect at the time of his employment by
the Company. 

  
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 Section 6.    Preliminary Release. 

 

	 	a.	 Executive hereby RELEASES the Company, its past and present parents, subsidiaries, affiliates, predecessors,
successors, assigns, related companies, entities or divisions, its or their past and present employee benefit plans, trustees, fiduciaries and administrators, and any and all of its and their respective past and present officers, directors,
partners, agents, representatives, attorneys and employees (collectively the “Releasees” for purposes of this release), from any and all claims, demands or causes of action which Executive, or his heirs, executors, administrators,
agents, attorneys, representatives or assigns, have, had or may have against the Releasees, based on any events or circumstances arising or occurring prior to and including the date of execution by Executive of this Agreement, to the fullest extent
permitted by law, regardless of whether such claims are now known or are later discovered, including but not limited to any claims relating to his employment or anticipated retirement and separation from employment by the Company or any rights of
continued employment by the Company (collectively, the “Released Claims”); PROVIDED, HOWEVER, that Executive is not waiving, releasing or giving up (a) any claim or right under state workers’ compensation or unemployment
laws; (b) any claim or right to vested benefits, including under any pension or savings plan; (c) any claim or right to continued benefits in accordance with COBRA; (d) any claim or right to enforce the terms of this Agreement, the
Retirement Agreement or the RSU Award Agreements or to any bonus under (but pursuant to the terms of) the SVA Plan for fiscal year 2022 of the Company; (e) any other right or claim that arises after the date Executive signs this Agreement,
except as may be set forth in the Retirement Agreement; (f) any right to indemnification (and related advancement of expenses) Executive may have under applicable laws, the applicable constituent documents (including bylaws and certificate of
incorporation) of the Company or its subsidiaries, or any applicable D&O insurance policy that the Company may maintain; and (g) any other claim or right which cannot be waived as a matter of law. In the event any claim or suit is filed on
his behalf against the Company or any Releasees by any person or entity, Executive waives any and all rights to receive monetary damages or injunctive relief in favor of Executive from or against the Company or any Releasees. 

 

	 	b.	 Executive agrees and acknowledges: that this Agreement is intended to be a general release that extinguishes
all claims by Executive against the Releasees that are Released Claims as defined above; that Executive is waiving any Released Claims arising under the Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With
Disabilities Act, the Age Discrimination in Employment Act of 1967, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the Uniformed Services Employment and
Reemployment Rights Act, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act, the Illinois Human Rights Act, the Illinois Right to Privacy in the Workplace Act, the Illinois

  
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Equal Pay Act, the Illinois Worker Adjustment and Retraining Notification Act, the Illinois Victims’ Economic Security and Safety Act, the Illinois Family Military Leave Law, the Illinois
Whistleblower Act, the Illinois Biometric Information Privacy Act, and all other federal, state and local statutes, ordinances and common law, including but not limited to any and all claims alleging personal injury, emotional distress or other
torts, and discretionary bonuses and discretionary payments, to the fullest extent permitted by law; that Executive is waiving all Released Claims against the Releasees, known or unknown, arising or occurring prior to and including the date of his
execution of this Agreement; that the consideration that Executive will receive in exchange for his waiver of the Released Claims specified herein plus the Released Claims specified under the Retirement Agreement exceeds anything of value to which
Executive is already entitled; that Executive was hereby informed by the Company in writing to consult with an attorney; that Executive has entered into this Agreement knowingly and voluntarily with full understanding of its terms and after having
had the opportunity to seek and receive advice from counsel of his choosing; and that Executive has had a reasonable period of time within which to consider this Agreement. Executive represents that he has not assigned any claim against the
Releasees to any person or entity; that Executive has no right to any future employment by the Company; as of the date hereof; Employee has received all compensation, benefits, remuneration, accruals, contributions, reimbursements, bonuses, vacation
pay, and other payments, leave and time off then due; and that Executive has not suffered any injury that resulted, in whole or in part, from his work at the Company that would entitle Executive to payments or benefits under any applicable
Worker’s Compensation Act. 

  

	 	c.	 Executive understands that nothing contained in this Agreement limits his ability to make truthful statements
or disclosures about alleged unlawful conduct or practices, to communicate with, or file a complaint or charge with, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission (“SEC”), the Department of Justice (“DOJ”), the Labor Commissioner’s Office, or any other federal, state or local governmental agency or commission (collectively,
“Governmental Agencies”), or otherwise participate in any administrative, legislative, or judicial proceeding concerning alleged criminal conduct, alleged unlawful conduct, or alleged unlawful employment practices including sexual
harassment, to otherwise participate in any investigation or proceeding that may be conducted by Governmental Agencies, including providing documents or other information without notice to the Company, or to request or receive confidential legal
advice; provided, however, that Executive shall not disclose information that is protected by the attorney client privilege, except as expressly required by law. In the event any claim or suit is filed on behalf of Executive against any of the
Releasees by any person or entity, including, but not limited to, by any Governmental Agency concerning the Released Claims, Executive waives any and all rights to recover monetary damages or injunctive relief in his favor concerning the Released
Claims; provided, however, that this Agreement does not limit the right of Executive to receive an award from the SEC or DOJ or any other regulatory agency for information provided to the SEC or DOJ or such other regulatory agency.

  
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	 	d.	 This Agreement does not constitute an admission by any of the Releasees that any action that any of them took
with respect to Executive was wrongful, unlawful or in violation of any local, state, federal, or international act, statute, or constitution, or susceptible of inflicting any damages or injury on Executive, and the Company specifically denies any
such wrongdoing or violation. 

  

	 	e.	 Executive represents and warrants that Executive has not engaged in any unlawful or fraudulent conduct in
connection with his employment or duties with the Company; that he is not aware of any violation by the Company of any applicable law, rule, regulation and/or binding legal guidance; and that he is not aware of any material non-compliance by the Company with any applicable accounting or professional responsibility rule, practice and/or principle. 

Section 7.    Confidentiality of Agreement. Executive acknowledges and agrees that the
existence of and the terms of this Agreement and the Retirement Agreement will be kept confidential, and that Executive will not hereafter disclose any information concerning this Agreement or the Retirement Agreement to any third person except his
immediate family, his attorney, paid accountant for tax purposes, his financial advisor or as otherwise required by law. Executive further agrees that in the event he discloses the terms of this Agreement or the Retirement Agreement to his immediate
family, attorney, accountant or financial advisor, he will instruct them not to reveal, disseminate by publication of any sort, or release in any manner or means this Agreement or the Retirement Agreement or any part thereof or thereof or any
matters, factual or legal, contained in the Agreement or the Retirement Agreement (except as may be allowed under the agreement or required by legal process) to any other person or to any member(s) of the public, or to any newspaper, magazine, radio
station, television station, Internet website, or to any future, current or former employee, representative, agent, customer, creditor, or competitor of the Company without the express written consent of the Company.    The
Company agrees to keep the terms of this Agreement confidential and not to disclose the terms of this Agreement except to his attorneys, tax consultants, to effectuate the terms of this Agreement, or as otherwise required by law. 

Section 8.    Tax Obligations. Executive acknowledges and agrees that he shall be solely
responsible for all tax obligations that he would individually or personally owe to any taxing authority resulting from each and every term of consideration provided in this Agreement or the Retirement Agreement by the Company, and shall indemnify
and hold harmless the Company (including its employees, agents, owners and officers) from all tax consequences that he is personally responsible for related to the payments and benefits provided to Executive pursuant to this Agreement or the
Retirement Agreement. 
 Section 9.    Section 409A. The intent of the Parties is that
payments and benefits under this Agreement comply with or be exempt from Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and,
accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. In no event whatsoever shall Company be liable for 

  
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any additional tax, interest or penalty that may be imposed on Executive by Code Section 409A or damages for failing to comply with Code Section 409A. A termination of employment shall
not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service”
within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment”, “retirement” or like terms shall mean “separation
from service.” For purposes of Code Section 409A, the right of Executive to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment
under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of Company. Notwithstanding any other provision of this Agreement to the
contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code
Section 409A. If, at the time Executive becomes entitled to payments and benefits under this Agreement (for purposes of this Section, the “Severance Payment”), Executive is a “specified employee” (within the meaning
of Code Section 409A and using the identification methodology selected by the Company from time to time), then, notwithstanding any other provision herein to the contrary, the following provision shall apply: (i) no Severance Payment
considered by the Company in good faith to be deferred compensation under Code Section 409A that is payable upon the separation of Executive from service (as defined and determined under Code Section 409A), and not subject to an exception
or exemption thereunder, shall be paid to Executive until after the date that is six (6) months after his effective date of termination; (ii) any such Severance Payment that would otherwise have been paid to Executive during this six-month period shall instead be aggregated and paid to Executive on or as soon as administratively feasible after the date that is six (6) months and one day after his effective date of termination, but not
later than 60 days after such date; and (iii) any Severance Payment to which Executive is entitled to be paid after the date that is six (6) months after his effective date of termination shall be paid to Executive in accordance with the
terms of thereof. 
 Section 10.    Complete Agreement. Executive acknowledges that this
Agreement, the RSU Award Agreements and the Retirement Agreement, contain the entire understanding between the Parties concerning the continuation and cessation of his employment with the Company and, except as stated specifically herein or therein,
supersede any prior agreements, statements, comments, or proposals between the Parties. For the avoidance of doubt, this Agreement shall not be construed to supersede or diminish any right or obligation of Executive or the Company under or pursuant
to the RSU Award Agreements unless explicitly stated herein. 
 Section 11.    Miscellaneous. 

 

	 	a.	 Executive acknowledges and agrees that in signing this Agreement, he does not rely and has not relied on any
representation or statement by the Company or any other person or their respective agents, representatives, or attorneys with regard to the subject matter, basis or effect of this Agreement or otherwise. 

  
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	 	b.	 Executive acknowledges that this Agreement may not be supplemented or modified between the Parties except by
written Agreement between the Parties. 

  

	 	c.	 This Agreement and the Retirement Agreement shall be binding upon Executive and upon his heirs, administrators,
representatives, executors, successors and assigns, and shall inure to the benefit of the Company and the other Releasees and each of them, and to their heirs, administrators, representatives, executors, successors, and assigns. This Agreement may
not be assigned by Executive without the prior express written consent of the Company. Notwithstanding the above, however, in the event of Executive’s death after he signs this Agreement or the Retirement Agreement, as applicable, each
agreement shall inure to the benefit of his heirs, estate or other legal beneficiaries. 

  

	 	d.	 This Agreement is made and entered into in the State of Illinois and shall in all respects be interpreted,
enforced and governed under the laws of the State of Illinois, without regard to the choice of law provisions of any state. Any disputes relating to this Agreement shall be maintained exclusively in state court located in Kane County, Illinois or
federal court in the United States District Court for the Northern District of Illinois, Eastern Division, and Executive submits to the personal jurisdiction of such courts for this purpose. 

 

	 	e.	 Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to
be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby, and said illegal or invalid part, term, or provision shall be deemed not be a part of this Agreement. The Parties expressly empower a
court of competent jurisdiction to modify any term or provision of this Agreement to the extent necessary to comply with existing law and to enforce the Agreement as modified. 

Section 12.    Consideration & Revocation Period. 

 

	 	a.	 Executive acknowledges and agrees that the Company has advised him to consult with an attorney of his choosing
prior to signing this Agreement and that he has been given a period of at least twenty-one (21) days within which to consider this Agreement prior to signing below.

  

	 	b.	 Executive acknowledges and agrees that he may revoke this Agreement within seven (7) days
after its signing by him and that in no event shall this Agreement become effective until eight (8) days after the date on which Executive signs below. Any revocation must be made in writing and should be directed to:
John B. Sanfilippo & Son, Inc., 1703 N. Randall Road, Elgin, Illinois 60123, c/o Julia Pronitcheva via certified mail. This Agreement will become
effective, if not sooner revoked, on the eighth (8th) day after Executive signs it. 

Section 13.    Understandable Language. Every attempt has been made to set forth the terms
of this Agreement with understandable language. Executive acknowledges that this Agreement is written in a manner that he understands, that he does understand the terms of this Agreement, that 

  
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he is waiving and releasing all Released Claims he may have against the Company including but not limited to age discrimination claims under all applicable laws, that he is not waiving or
releasing claims that may arise after his execution of this Agreement, and he has been advised to consult with an attorney before executing this Agreement. The Company has advised Executive not to sign this Agreement unless and until he understands
each and every sentence, paragraph, or part of this Agreement. 
 Section 14.    Execution in
Counterparts and Electronic Delivery. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original for all purposes, and together shall constitute one and the same consent notwithstanding that
all Parties are not signatory to the same counterpart. The delivery of copies of this Agreement and of signature pages by electronic mail, pdf or facsimile transmission shall constitute effective execution and delivery of this Agreement and may be
used in lieu of the original Agreement for all purposes, including use in any litigation or legal proceeding. Signatures of the Parties transmitted by electronic mail or facsimile shall be deemed to be their original signatures for all purposes,
including use in any litigation or legal proceeding. 
 Section 15.    Voluntary Execution.
Executive acknowledges and agrees that he has carefully read and fully understands all of the provisions and effects of this Agreement. Executive further acknowledges that he considers this Agreement to be in his best interest; that he has
signed this Agreement intending to be legally bound hereby; and that he voluntarily enters into this Agreement by signing this Agreement below. 

********** 

  
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	John. B. Sanfilippo & Son, Inc.	 		 	Christopher Gardier
					
	 By:
	 	 /s/ Julia Pronitcheva
	 		 	 By:
	 	 /s/ Christopher Gardier

	 Title:
	 	 VP, Human Resources
	 		 	 Dated:
	 	 November 4, 2021

	Dated:	 	 November 5, 2021
	 		 		 	

  
 [Signature Page to
Executive Transition Agreement] 

 EXHIBIT A 

RETIREMENT AGREEMENT AND GENERAL RELEASE 

This Retirement Agreement and General Release (this “Agreement”) is made and entered into effective July 22nd, 2022 (the “Separation Date”), by and among John B. Sanfilippo & Son, Inc. (hereinafter referred to as the “Company”) and Christopher Gardier (hereinafter
referred to as “Executive”). The Company and Executive are collectively referred to herein as the “Parties” and individually as a “Party.” 

This Agreement is being entered into as contemplated by that certain Executive Transition Agreement dated as of November 3rd, 2021 by and between the Company and Executive (the “Transition Agreement”). Unless otherwise specified, all capitalized terms have the meanings ascribed to them in the Transition
Agreement. 
 RECITALS 

WHEREAS, Executive is resigning from all officer positions with the Company and its subsidiaries and will retire as an employee of the Company
on the date hereof by mutual agreement of the parties. 
 WHEREAS, the Company is engaged in the business of (among other things)
manufacturing, processing, marketing and distributing edible nuts and nut-related products, fruit and nut-based snacks, and related products; 

WHEREAS, the Company may, after this Agreement is signed, enter into new lines of business and/or launch new products about which Executive
was privy to Confidential Information or Trade Secrets at any time during his employment, and the Parties intend that Executive shall not use of disclose such Confidential Information and Trade Secrets for the benefit of any person or entity other
than the Company; 
 WHEREAS, Executive hereby acknowledges that the industry in which the Company competes is extremely competitive, and
that the Company expends substantial monies and other resources to develop and maintain its product information, as well as its customer relationships, which Executive understands and acknowledges are near-permanent, and developed through
significant costs incurred by the Company; 
 WHEREAS, the Company has policies to help ensure that its operations, activities, marketing
strategies, product information, including products under research and development, pricing information, contract terms, business affairs and customer information are kept confidential; 

WHEREAS, Executive, through his employment, was granted extensive access to the aforementioned categories of confidential and proprietary
information, which Executive would not have had access to but for his employment with the Company; and 

 WHEREAS, Executive acknowledges that the restrictions contained herein are necessary and
reasonable in scope and duration, and that the Separation Payments and Separation Benefits are a material inducement for the Executive to enter into and perform this Agreement. 

NOW, THEREFORE, in consideration of the foregoing recitals and the provisions hereafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are mutually acknowledged, the parties hereto agree as follows: 
 SECTION 1.    
CONSIDERATION 
 Executive acknowledges and agrees that in consideration for the Separation Payments and Separation Benefits, Executive will be bound by,
and comply in all respects with, the provisions of this Agreement and the Transition Agreement. 
 SECTION 2.     RESIGNATION FROM
OFFICES; EMPLOYEE STATUS 
 Executive hereby resigns from any and all officer positions with the Company and its subsidiaries, including from his
position as Senior Vice President, Sales, of the Company, and from any governing body of which Executive serves as the designee or other representative of the Company, effective as of the Separation Date. Executive agrees to promptly sign all
appropriate documentation, if any, prepared by the Company to facilitate the resignations contemplated by this Section. 
 SECTION
3.     ACCRUED OBLIGATIONS AND VESTED BENEFITS 
 The payments and benefits set forth in this Section have been paid or will be paid
and provided to Executive whether or not Executive signs and/or revokes this Agreement: 
  

	 	a.	 Final Wages. The Company has paid or will pay to Executive his base salary through the Separation Date.

  

	 	b.	 Accrued Vacation. The Company has paid or will pay Executive all earned and accrued but unused PTO
through the Separation Date. 

  

	 	c.	 Qualified Retirement Plan. The 401(k) plan benefits of Executive will be payable in accordance with
applicable plan documents. 

  

	 	d.	 Reimbursement of Expenses. The Company has paid or will pay Executive in accordance with its
reimbursement policy for all business expenses which Executive properly incurred in connection with his work for the Company through the Separation Date. 

SECTION 4.     GENERAL RELEASE 
  

	 	a.	 In consideration for the Separation Payments and Separation Benefits, Executive hereby RELEASES the Company,
its past and present parents, subsidiaries, affiliates, predecessors, successors, assigns, related companies, entities or divisions, its or their past and present employee benefit plans, trustees, fiduciaries

  
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and administrators, and any and all of its and their respective past and present officers, directors, partners, agents, representatives, attorneys and employees (collectively included in the term
“Releasees” for purposes of this release), from any and all claims, demands or causes of action which Executive, on behalf of himself and his heirs, executors, administrators, agents, attorneys, representatives or assigns, have, had
or may have against the Releasees, based on any events or circumstances arising or occurring prior to and including the date of execution by Executive of this Retirement Agreement, to the fullest extent permitted by law, regardless of whether such
claims are now known or are later discovered, including but not limited to any claims relating to his employment or anticipated retirement and separation from employment by the Company, any rights of continued employment, reinstatement or
reemployment by the Company (collectively, the “Released Retirement Agreement Claims”); PROVIDED, HOWEVER, that Executive is not waiving, releasing or giving up (a) any claim or right under state workers’ compensation or
unemployment laws; (b) any claim or right to vested benefits, including under any pension or savings plan; (c) any claim or right to continued benefits in accordance with COBRA; (d) any claim or right to enforce the terms of this
Retirement Agreement, the Transition Agreement or the RSU Award Agreements or to any bonus under (but pursuant to the terms of) the SVA Plan for fiscal year 2022 of the Company; (e) any right to indemnification (and related advancement of
expenses) Executive may have under applicable laws, the applicable constituent documents (including bylaws and certificate of incorporation) of the Company or its subsidiaries, or any applicable D&O insurance policy that the Company may
maintain; (f) any right or claim that arises after the date Executive signs this Agreement; and (g) any other claim or right which cannot be waived as a matter of law. 

 

	 	b.	 Executive agrees and acknowledges: that this Agreement is intended to be a general release that extinguishes
all claims by Executive against the Releasees that are Released Retirement Agreement Claims, as defined above; that Executive is waiving any Released Retirement Agreement Claims arising under the Title VII of the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the Americans With Disabilities Act, the Age Discrimination in Employment Act of 1967, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the
Uniformed Services Employment and Reemployment Rights Act, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act, the Illinois Human Rights Act, the Illinois Right to Privacy in the Workplace Act, the Illinois Equal Pay Act,
the Illinois Worker Adjustment and Retraining Notification Act, the Illinois Victims’ Economic Security and Safety Act, the Illinois Family Military Leave Law, the Illinois Whistleblower Act, the Illinois Biometric Information Privacy Act, and
all other federal, state and local statutes, ordinances and common law, including but not limited to any and all claims alleging personal injury, emotional distress or other torts, and discretionary bonuses and discretionary payments, to the fullest
extent permitted by law; that Executive is waiving all Released Retirement Agreement Claims against the Releasees, known or unknown, arising or occurring prior to and including the date of his execution of this Agreement; that the consideration that

  
 3 

	 	
Executive will receive in exchange for his waiver of the Released Retirement Agreement Claims specified herein exceeds anything of value to which Executive is already entitled; that Executive was
hereby informed by the Company in writing to consult with an attorney; that Executive has entered into this Agreement knowingly and voluntarily with full understanding of its terms and after having had the opportunity to seek and receive advice from
counsel of his choosing; and that Executive has had a reasonable period of time within which to consider this Agreement. Executive represents that he has not assigned any claim against the Company to any person or entity; that Executive has no right
to any future employment by the Company; that Executive has received all compensation, benefits, remuneration, accruals, contributions, reimbursements, bonuses, vacation pay, and other payments, leave and time off due other than contemplated by this
Agreement; and that Executive has not suffered any injury that resulted, in whole or in part, from his work at the Company that would entitle Executive to payments or benefits under any applicable Worker’s Compensation Act. 

 

	 	c.	 Executive understands that nothing contained in this Agreement limits his ability to make truthful statements
or disclosures about alleged unlawful conduct or practices, to communicate with, or file a complaint or charge with, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission (“SEC”), the Department of Justice (“DOJ”), the Labor Commissioner’s Office, or any other federal, state or local governmental agency or commission (collectively,
“Governmental Agencies”), or otherwise participate in any administrative, legislative, or judicial proceeding concerning alleged criminal conduct, alleged unlawful conduct, or alleged unlawful employment practices including sexual
harassment, to otherwise participate in any investigation or proceeding that may be conducted by Governmental Agencies, including providing documents or other information without notice to the Company, or to request or receive confidential legal
advice; provided, however, that Executive shall not disclose information that is protected by the attorney client privilege, except as expressly required by law. In the event any claim or suit is filed on behalf of Executive against any of the
Releasees by any person or entity, including, but not limited to, by any Governmental Agency concerning the Released Retirement Agreement Claims; Executive waives any and all rights to recover monetary damages or injunctive relief in his favor
concerning the Released Retirement Agreement Claims; provided, however, that this Agreement does not limit the right of Executive to receive an award from the SEC or DOJ or any other regulatory agency for information provided to the SEC or DOJ or
such other regulatory agency. 

 SECTION 5.     TRADE SECRETS AND CONFIDENTIAL INFORMATION 

 

	 	a.	 Trade Secrets. As used herein, the term “Trade Secrets” shall include any information
that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons or business entities who can obtain economic value from its

  
 4 

	 	
disclosure or use. As used herein, Trade Secrets shall not include information which is known, or shall become known through no fault of the Executive, to the public or generally known within the
industry of businesses comparable to the Company. 

  

	 	 	 All Trade Secrets imparted to Executive by the Company, or otherwise obtained by Executive, at any time,
relating to its business operations, product data, customer or prospect lists or information, procurement data or practices, customer specification information and related data, pricing and cost data, marketing information, computer programs,
business strategies, information regarding products under research and development, recipes, product formulae, manufacturing processes and any other such proprietary and confidential information was revealed and entrusted to Executive in confidence,
solely in connection with and for the purpose of employment on behalf of the Company. Executive agrees that Trade Secrets are and remain the sole property of the Company. 

 

	 	 	 Executive shall not at any time, directly or indirectly, divulge any Trade Secrets to any other person or
business entity, nor use or permit the use of any Trade Secrets. 

  

	 	 	 Upon or before the Separation Date, Executive shall: (a) promptly tender to the Company all documents,
lists, records, cellular or handheld devices, computers, computer stored media and data (with accompanying passwords) and any other items, and reproductions thereof, of any kind in his possession or control containing Trade Secrets; and
(b) review all of Executive’s personal devices, accounts, servers, drives, and external methods of storage used for accessing, reviewing, storing, or otherwise manipulating Company information and documents, including but not limited to
mobile phones, laptops and desktop computers, cloud accounts and other method of off-site information storage, servers, tapes, discs and other recordings (“Personal Devices and Accounts”) and
will permanently delete or cause to be permanently deleted from such Personal Devices and Accounts all Company information and documents, including but not limited to all Confidential Information found on such Personal Devices and Accounts.

  

	 	 	 The Company provides notice to Executive pursuant to the Defend Trade Secrets Act that: 

 

	 	i.	 An individual will not be held criminally or civilly liable under any federal or state trade secret law for the
disclosure of a trade secret that (1) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a
suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and 

  
 5 

	 	ii.	 An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may
disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (1) files any document containing the trade secret under seal; and (2) does not disclose the trade
secret, except pursuant to court order. 

  

	 	b.	 Confidential Information. As used herein, the term “Confidential Information” shall
include Trade Secrets any and all other confidential and/or proprietary information that does not rise to the level of Trade Secrets that was imparted, revealed and/or entrusted to Executive by the Company in confidence. Confidential Information
that is not Trade Secrets includes, but is not limited to, information regarding its operations, marketing strategies, customer lists and prospects, procurement processes, product information regarding products under research and development,
methods of doing business, accounting and legal information. 

 All Confidential Information imparted to Executive by the
Company, or otherwise obtained by Executive, at any time, was revealed and entrusted to Executive in confidence, solely in connection with and for the purpose of employment on behalf of the Company. Executive agrees that Confidential Information is
and remains the sole property of the Company. 
 Executive agrees that following his termination of employment, he will not divulge, either
directly or indirectly, any Confidential Information to any other person or business entity, nor use or permit the use of any Confidential Information. 

Upon or before the Separation Date, Executive shall promptly tender to the Company all Company property, documents, lists, records, cellular or
handheld devices, computers, computer stored media and data (with accompanying passwords) and any other items, and reproductions thereof, of any kind in his possession or control containing Confidential Information, except as expressly permitted by
the Company in connection with and during Executive continuing to serve as a consultant to the Company. 
 SECTION 6.    
PROHIBITIONS REGARDING THE COMPANY CUSTOMERS, EXECUTIVES AND UNFAIR COMPETITION 
  

	 	a.	 Restrictions as to the Company Customers. Executive understands and agrees that the business
relationships and goodwill now existing with respect to the prospects and customers of the Company, whether or not created by Executive, and all such relationships and goodwill which may hereafter be created or enhanced, are the property of the
Company. Accordingly, Executive agrees that, for a period of 12 months from the Separation Date, Executive shall not solicit business, directly or indirectly, from any customer of the Company with whom Executive had contact in any capacity, or
learned information about, at any time during the 24 months prior to his separation from employment at the Company, except on behalf of the Company. This restriction includes soliciting business, selling products, providing services or otherwise
dealing with the Company customers if such activities are related to the manufacture, processing and/or distribution of edible nuts and nut 

  
 6 

	 	
meats, fruit and nut-based snacks, and related products such as produce nuts and nut clusters, except on behalf of the Company. Executive also shall not,
directly or indirectly, assist any other person, firm, corporation or business entity in performing any of the aforesaid acts, which includes, but is not limited to, acting as a broker or consultant. This provision shall not restrict Executive from
dealing with such customers to the extent his dealings are in no way related to the types of products or businesses of the Company. It is agreed this restriction is reasonable and necessary to protect the goodwill and confidential information of the
Company. 

  

	 	b.	 Restriction as to Solicitation of Company Employees. For a period of 12 months from the Separation Date,
Executive shall not solicit, hire or cause to be hired any employees of the Company for employment in any line of business or attempt to induce or encourage any such employee to leave the employ of the Company. Executive also agrees not to make such
solicitations indirectly. Executive also agrees not to aid or assist any other person, firm, corporation or other business entity to do any of the aforesaid acts. This applies to actions Executive may take in any capacity, including, but not limited
to, as proprietor, partner, joint venturer, stockholder, director, officer, trustee, principal, agent, servant, employee, or in any other capacity. It is agreed this restriction is reasonable and necessary to protect the goodwill and confidential
information of the Company. 

  

	 	c.	 Restrictions as to Employment with the Company Competitors. For a period of 12 months from the
Separation Date, Executive agrees not to work with or render services or provide assistance to, directly or indirectly, any entity or third party that competes or could compete with the Company in the manufacture, processing and/or distribution of
edible nuts and nut meats, fruit and nut-based snacks, and related products such as produce nuts (the “Company Products”), in a capacity whereby the Trade Secrets and/or Confidential
Information of the Company would reasonably be considered to be useful to the entity or to such other third party in order to compete against the Company or become a competitor of the Company or in any way related to the procurement of nuts
(“Company Competitor”). Executive acknowledges that the business of the Company extends throughout the United States (“U.S.”) and that, in order to protect the Company from unfair competition, this restriction shall
apply throughout the U.S. Executive acknowledges that this restriction is necessary to protect the Company from the disclosure and use of its competitively sensitive Confidential Information and Trade Secrets. This provision shall not preclude the
Executive from working for a the Company Competitor if the proposed responsibilities of Executive do not involve the manufacture, processing, marketing, procurement and distribution of the Company Products and whereby Executive is not engaged in a
capacity whereby the Trade Secrets and/or Confidential Information of the Company would reasonably be considered to be useful to the entity or to such other third party in order to compete against the Company or become a competitor of the Company.

 Executive agrees to notify the Company in writing in advance of accepting future employment in the event his or her
prospective employer is involved or reasonably could be involved in the manufacture, processing and/or distribution of the Company Products. 

  
 7 

	 	d.	 Non-Disparagement. Subject to Section 4(c), Executive
agrees not to willingly or knowingly make any statement or criticism which would reasonably be expected to cause the customers, suppliers, clients, directors or officers of the Company embarrassment, humiliation or otherwise cause or contribute to
its customers, suppliers, clients, directors or officers being held in disrepute by the public or by the clients, customers, suppliers or employees of the Company, except as required by law. Executive agrees not to willingly or knowingly make any
statement or criticism which would reasonably be expected to cause the Company embarrassment, humiliation or otherwise cause or contribute to the Company being held in disrepute by the public or the clients, customers, suppliers or employees of the
Company. If the Company or any Releasee receives a reference request regarding Executive, each will refer the inquiry to the Company’s Human Resources Department, which will confirm only dates of employment and positions held, consistent with
Company policy. 

  

	 	e.	 Reasonableness of Restrictions. The Parties have endeavored in this Agreement to limit the activities of
Executive only to the extent necessary to protect the Company from unfair competition in its line of business. Accordingly, if the scope or enforceability of the restrictive covenants contained herein is called into question, they agree that a court
or other tribunal may modify and enforce the restrictions to the extent necessary to protect the Company. 

 SECTION
7.     COOPERATION 
 Following the Separation Date, Executive agrees to cooperate fully with the Company in the defense, prosecution
or conduct of any claims, actions, investigations, or reviews now in existence or which may be initiated in the future against, involving or on behalf of the Company or any subsidiary which relate to events or occurrences that transpired while
Executive was employed by the Company (“Cooperation Matters”). The cooperation of Executive in connection with such Cooperation Matters will include, but not be limited to, being available for telephone conferences with outside
counsel and/or personnel of the Company, being available for interviews, depositions and/or to act as a witness on behalf of the Company, if reasonably requested. The Company will reimburse Executive for all reasonable
out-of-pocket expenses incurred by Executive in connection with such cooperation with respect to such Cooperation Matters. 

SECTION 8.     RIGHTS AND REMEDIES UPON BREACH OF THE RESTRICTIVE COVENANTS 

If Executive should breach, or threaten to commit a breach, of any of the provisions of this Agreement, the Company shall have the right and remedy to (among
other things) have the restrictive covenants contained herein be enforced by any court of competent jurisdiction, without the necessity of posting a bond. The Parties agree that any breach or threatened breach of the restrictive covenants would
cause irreparable injury to the Company, would be difficult to calculate with certainty, and that money damages would not alone provide an adequate remedy to 

  
 8 

 
the Company. The Company shall also have any other right or remedy available to it under law or in equity including the right to seek and recover monetary damages for lost profits and other
compensable damages. 
 SECTION 9.     OBLIGATION TO NOTIFY FUTURE EMPLOYERS 

For the period of 12 months following the Separation Date, Executive agrees to (a) inform each new prospective employer, prior to accepting employment, of
the existence of this Agreement, and (b) provide that prospective employer with a copy of this Agreement. Executive further agrees that the Company may send a copy of this Agreement to the employer or otherwise inform the employer of its terms.

 SECTION 10.     ACCEPTANCE 

Executive may accept this Agreement by delivering a signed original of this Agreement to the Vice President, Human Resources, of the Company on or within seven
(7) business days following the Separation Date, which Executive acknowledges is more than twenty-one (21) calendar days after his receipt of this Agreement. Executive may decide to sign this
Agreement before the 21-day review period expires, but no earlier than the Separation Date, provided, however, his signing this Agreement in accordance with this Section 10 will be final and binding upon
him on the date of his execution of this Agreement, with the exception of the waiver by Executive of claims brought under the Age Discrimination in Employment Act (“ADEA”) and the Older Workers Benefit Protection Act
(“OWBPA”), which will become final and binding upon him (in each case) unless Executive rescinds this Agreement within the revocation period referenced in Section 11 below. If Executive fails to return an executed original of
this Agreement in the required timeframe referenced in this Section, the Parties will have no obligation under this Agreement, the Executive shall not (among other things) be entitled to the Separation Payments and the Separation Benefits, and this
Agreement will be considered null and void. 
 SECTION 11.     REVOCATION 

Executive may revoke his waiver of claims under the ADEA and OWBPA within seven (7) calendar days after Executive executes this Agreement by delivering a
written notice of revocation of his waiver of such claims to the Vice President, Human Resources, of the Company. The revocation of ADEA/OWBPA claims must be received no later than the close of business on the seventh (7th) calendar day after
Executive signs this Agreement. The waiver by Executive of claims under the ADEA and OWBPA will not become effective or enforceable until the eighth (8th) calendar day after Executive signs this Agreement. If Executive revokes his waiver of claims
under the ADEA/OWBPA within the 7-day revocation period in either instance, (i) his waiver of claims under the ADEA and OWBPA set forth in Section 4 of this Agreement will be null and void; and
(ii) Executive will forfeit all payments and benefits contemplated by the Transition Agreement and will instead receive a payment of one thousand dollars ($1,000.00), payable as a lump sum within thirty (30) days of the receipt by the
Company of the revocation by Executive, which residual amount Executive acknowledges and agrees constitutes sufficient consideration for the remaining promises set forth in this Agreement, which will continue in full force and effect in the event of
such revocation by Executive. 

  
 9 

 SECTION 12.     AMENDMENT 

This Agreement may be amended only in a writing signed by both the Executive and one of the Chief Executive Officer, Chief Financial Officer or Vice President,
Human Resources of the Company. 
 SECTION 13.     SURVIVAL OF PROVISIONS 

Any provision of this Agreement, which by terms or reasonable implication is to be or may be performed or effective after the termination of the Agreement,
shall be deemed to survive such termination. 
 SECTION 14.     SEPARABILITY AND MODIFICATION 

If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, or as applied to any circumstance, under the laws of any
jurisdiction which may govern for such purpose, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, either generally or as applied to such circumstance,
or shall be deemed excised from this Agreement, as the case may require. This Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein as so modified or
restricted, or as if such provision had not been originally incorporated herein, as the case may be. The Company and the Executive hereby agree that the restrictive covenants set forth herein are separate and distinct restrictive covenants, designed
to operate under different factual circumstances, and that the invalidity of one of said covenants shall not affect the validity and/or enforceability of the other covenants. 

SECTION 15.     BINDING EFFECT 
 This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns, provided that this Agreement is not assignable by Executive. 

SECTION 16.     NO WAIVER 
 No failure
on the part of any party to this Agreement to exercise, and no delay on their part in exercising any right, power or remedy hereunder shall operate as a waiver thereof. 

SECTION 17.     ALL OTHER LEGAL RIGHTS RESERVED TO THE COMPANY 

Nothing in this Agreement shall be construed to limit or negate any common law torts or any statutory protections available to the Company, including, but not
limited to, an action under the Illinois Trade Secrets Act, where it provides the Company with broader protection than that provided herein. 

  
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 SECTION 18.     GOVERNING LAW AND SUBMISSION TO JURISDICTION 

This Agreement shall be governed in all respects by the laws of the State of Illinois. Any disputes arising under this Agreement shall be tried exclusively in
the courts sitting within the State of Illinois. Executive consents and submits his or her person to the jurisdiction of any such court for such purpose. 

SECTION 19.     COUNTERPARTS 
 This
Agreement may be executed in any number of identical counterparts, each of which shall be deemed a duplicate original, and all of which together shall constitute but one and the same agreement. 

SECTION 20.     ENTIRE AGREEMENT 
 The
provisions of this Agreement, the Transition Agreement and the RSU Award Agreements constitute the entire agreement of the parties with respect to the subject matter hereof and thereof and supersede any prior agreements or understandings pertaining
to said subject matter. Further, the parties acknowledge that there are no prior or contemporaneous oral or written representations, promises or agreements not expressed or referred to herein or therein. Should this Agreement come before any court
for interpretation or enforcement, it is the intent of the Parties that the terms and provisions of this Agreement be given their fair and literal meaning. The Parties intend that this Agreement is not to be strictly construed against any party,
including the drafter of this Agreement. 
 [Remainder of page left intentionally blank; signature page follows] 

  
 11 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have caused this
Agreement to be executed the day and year indicated. 
  

									
	 EXECUTIVE
	 		 	JOHN B. SANFILIPPO & SON, INC.
			
	 /s/ Christopher Gardier
	 		 	 /s/ Julia Pronitcheva

	Name: Christopher Gardier	 	                	 	Name: Julia Pronitcheva
		 		 		 	Title: Vice President, Human Resources
			
	Date: July 23, 2022	 		 	Date: July 22, 2022

  
 [Signature Page to
Retirement Agreement and General Release]Document

Exhibit 10.1

AT&T HEALTH PLAN
Effective January 1, 2023

ARTICLE 1   PURPOSE
The AT&T Health Plan ("Plan") provides Participants with certain medical, dental, and vision benefits, as specified herein.  Effective March 23, 2010, the Plan shall be frozen to new Participants, except as described in Section 2.15.  The Company intends this Plan to be a “grandfathered health plan” under the Patient Protection and Affordable Care Act (the “Affordable Care Act”).  Appendix C hereto contains the required Participant disclosure regarding the Plan’s grandfathered status under the Affordable Care Act.

ARTICLE 2   DEFINITIONS
For purposes of this Plan, the following words and phrases shall have the meanings indicated, unless the context clearly indicates otherwise:

2.1Active Participant.  “Active Participant” shall mean an Active Employee Participant and his Dependents.
2.2Active Employee Participant.  “Active Employee Participant” shall mean an Eligible Employee electing to participate in the Plan while in active service, on a Leave of Absence or while receiving short term disability benefits under the Officer Disability Plan.
2.3Annual Deductible.  “Annual Deductible” shall mean the amount the Active Participant must pay for Covered Health Services in a Plan Year before the Plan will begin paying for Covered Benefits in that calendar year.  The Annual Deductible applies to all Covered Health Services.  The Annual Deductible does not apply to Preventive Care, Dental Services and Vision Services.   Once the Participant meets his applicable Annual Deductible, the Plan will begin to pay Covered Benefits, subject to any required Coinsurance, in accordance with and as governed by Section 4.1.  The applicable Annual Deductible is set forth in Appendix A to this Plan. 
2.4Annual Out-of-Pocket Maximum.  “Annual Out-of-Pocket Maximum” shall mean the maximum amount of Covered Health Services an Active Participant must pay out-of-pocket every calendar year, including the Participant’s Annual Deductible.  Once the Participant reaches the applicable Annual Out-of-Pocket Maximum, Covered Benefits for those Covered Health Services that apply to the Annual Out-of-Pocket Maximum are payable in accordance with and as governed by Section 4.1 during the rest of that Plan Year.  The following costs shall never apply toward the Annual Out-of-Pocket Maximum:  (a) any applicable Monthly Contributions and (b) any charges for Non-Covered Health Services.  Even when the Annual Out-of-Pocket Maximum has been reached, Covered Benefits will not be provided for the following:  (a) any applicable Monthly Contributions and (b) any charges for Non-Covered Health Services.  The applicable Annual Out-of-Pocket Maximum is set forth in Appendix A to this Plan.
2.5AT&T.  “AT&T” shall mean AT&T Inc.  References to “Company” shall mean AT&T.
2.6CEO.  "CEO" shall mean the Chief Executive Officer of AT&T Inc. 
1

2.7COBRA.  “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
2.8Coinsurance.  “Coinsurance” shall mean the amount an Active Participant must pay each time he/she receives Covered Health Services, after he/she meets the applicable Annual Deductible.  Coinsurance payments are calculated as a percentage of Covered Health Services, rather than a set dollar amount.  Coinsurance does not apply to Preventive Care, Dental Services and Vision Services (or Medical Services for Retired Participants as provided in Section 4.1(c)).  The applicable Coinsurance percentage is set forth in Appendix A to this Plan.
2.9Committee.  "Committee" shall mean the Human Resources Committee of the Board of Directors of AT&T Inc.
2.10Covered Benefits.  “Covered Benefits” shall mean the benefits provided by the Plan, as provided for and governed by Section 4.1 of the Plan.
2.11Covered Health Services.  “Covered Health Services” means all Medical Services or Preventive Care that would qualify as deductible medical expenses for federal income tax purposes, whether deducted or not.  Dental Services and Vision Services are not included in the definition of Covered Health Services. 
2.12Dental Services.  “Dental Services” shall mean services for dental and orthodontic care.   The Plan Administrator, in its sole discretion, shall determine whether a particular service is classified as Preventive Care or a Dental, Medical or Vision Service. 
2.13Dependent(s).  “Dependent(s)” shall mean those individuals who would qualify as a Participant’s dependent(s) under the terms of the AT&T Medical Program.
2.14Disability.  "Disability" shall mean qualification for long term disability benefits under Section 3.1 of the Officer Disability Plan. 
2.15Eligible Employee.  "Eligible Employee" shall mean an Officer.  Notwithstanding the foregoing, the CEO may, from time to time, exclude any Officer or group of Officers from being an “Eligible Employee” under this Plan.  Employees of a company acquired by AT&T shall not be considered an Eligible Employee unless designated as such by the CEO.  Notwithstanding the foregoing, only the Committee shall have the authority to exclude from participation or take any action with respect to Executive Officers.   
Notwithstanding the foregoing provisions, unless otherwise provided for in Appendix D to this Plan, individuals hired, rehired or promoted to an Officer level position on or after March 23, 2010 shall be excluded from the term Eligible Employee, and such individuals (and their Dependents) shall not be eligible to participate in this Plan.
2.16Employer.  "Employer" shall mean AT&T Inc. or any of its Subsidiaries. 
2.17Executive Officer.  “Executive Officer” shall mean any executive officer of AT&T, as that term is used under the Securities Exchange Act of 1934.
2.18International Plan.  “International Plan” shall mean the “AT&T International Health Plan” for Officers serving in expatriate positions with the Company.  
2.19Leave of Absence.  “Leave of Absence” shall mean a Company-approved leave of absence.
2.20Medical Services.  “Medical Services” shall mean medical/surgical, mental health/substance abuse and prescription pharmacy services.  The Plan Administrator, in its sole discretion, shall determine whether a particular service is classified as Preventive Care or 
2

a Medical, Dental or Vision Service.  Medical Services do not include Dental Services and Vision Services.
2.21Monthly Contributions.  “Monthly Contributions” shall mean the monthly premiums or contributions required for participation in this Plan as further governed by Article 7 of the Plan.  The applicable Monthly Contributions are set forth in Exhibit A to this Plan.
2.22Non-Covered Health Services.  “Non-Covered Health Services” shall mean any Medical Services or Preventive Care which do not meet the definition of Covered Health Services.
2.23Officer.  "Officer" shall mean an individual who is designated as an officer level employee for compensation purposes on the records of AT&T.
2.24Participant.  “Participant” shall mean an Active Participant or Retired Participant or both, as the context indicates. 
2.25Plan Administrator.  “Plan Administrator” shall mean the SEVP-HR, or any other person or persons whom the Committee may appoint to administer the Plan; provided that the Committee may act as the Plan Administrator at any time.
2.26Plan Year.  ”Plan Year” shall mean the calendar year. 
2.27Preventive Care.  “Preventive Care” generally focuses on evaluating a Participant’s current health status when the Participant is symptom-free and taking the necessary steps to maintain the Participant’s health. The Plan Administrator, in its sole discretion, shall determine whether a particular service constitutes Preventive Care.
2.28Qualified Dependent.  “Qualified Dependent” shall mean a Dependent who loses coverage under a COBRA eligible program due to a Qualifying Event.
2.29Qualifying Event.  “Qualifying Event” shall mean any of the following events if, but for COBRA continuation coverage, they would result in a Participant’s loss of coverage under this Plan: 
(1)    death of a covered Eligible Employee;
(2)    termination (other than by reason of such Eligible Employee’s gross  misconduct) of an Employee’s employment;
(3)    reduction in hours of an Eligible Employee;
(4)    divorce or legal separation of an Eligible Employee or dissolution of an Eligible Employee’s registered domestic partnership;
(5)    an Eligible Employee’s entitlement to Medicare benefits; or
(6)    a Dependent child ceasing to qualify as a Dependent

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2.30Retire, Retired or Retirement.  “Retire,” “Retired” or "Retirement" shall mean the termination of an Active Employee Participant's employment with AT&T or any of its Subsidiaries, for reasons other than death, on or after the earlier of the following dates:  (1) the date such Active Employee Participant has attained age 55, and, for an Active Employee Participant on or after January 1, 2002, has five (5) years of service, or (2) the date the Active Employee Participant has attained one of the following combinations of age and service at termination of employment on or after April 1, 1997:  

Net Credited Service                     Age
25 years or more    50 or older
30 years or more    Any age

2.31    Retired Participant.  “Retired Participant” shall mean a Retired Employee Participant and his Dependents.
2.32    Retired Employee Participant.  “Retired Employee Participant” shall mean a former Active Employee Participant who has Retired within the meaning of Section 2.30 and who meets the additional requirements of Section 3.2 to be eligible for coverage in Retirement.
2.33    SEVP-HR.      “SEVP-HR” shall mean AT&T’s highest ranking Officer, specifically responsible for human resources matters. 
2.34    Subsidiary.  "Subsidiary" shall mean any corporation, partnership, venture or other entity in which AT&T holds, directly or indirectly, a 50% or greater ownership interest.  The Committee may, at its sole discretion, designate any other corporation, partnership, venture or other entity a Subsidiary for the purpose of participating in this Plan.  
2.35    Vision Services.  “Vision Services” shall mean services for vision care.  The Plan Administrator, in its sole discretion, shall determine whether a particular service is classified as Preventive Care or a Vision, Medical or Dental Service.
2.36   Medicare Eligible Retired Participant.  “Medicare Eligible Retired Participant” shall mean a Retired Participant who is eligible for Medicare due to reaching the eligible age for Medicare.

ARTICLE 3   ELIGIBILITY

3.1Active Participants.  Each Eligible Employee shall be eligible to participate in this Plan along with his/her Dependent(s) beginning on the effective date of the employee becoming an Eligible Employee.
In order to continue participation, the Active Participant must pay all applicable Monthly Contributions.  If an Active Employee Participant terminates participation in this Plan at any time for any reason, that Participant and his/her Dependent(s) shall be ineligible to participate in the Plan at any time in the future. 
3.2Retired Participants.  Provisions of this Plan will continue in effect during Retirement for each Retired Employee Participant and his/her Dependent(s) with respect to any Eligible Employee who became a Participant before January 1, 1999.  Neither an Eligible Employee who became a Participant after December 31, 1998 nor his/her Dependent(s) shall be eligible for participation hereunder on or after such Participant’s Retirement. Coverage for Retired Participants shall be subject to the payment of all applicable Monthly Contributions, as governed by Article 7.  The provisions of this Plan related to Retired Participants, including the level of Covered Benefits and the applicable Monthly Premiums, shall begin to apply on the first day of the month following the month in which the Active Employee Participant Retires.  If a Retired Employee Participant 
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terminates participation at any time for any reason, participation of that Retired Employee participant and his/her Dependent(s) may not be reinstated for any reason.

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3.3Requirement to Enroll and Participate in Medicare and the International Plan.  Notwithstanding any provision in this plan to the contrary, as a condition to participation in the Plan, each Participant must be enrolled in, paying for, and participating in (i) all parts of Medicare for which such Participant is eligible and for which Medicare would be primary if enrolled therein, except for Medicare Part D relating to prescription drug coverage, and (ii) the International Plan (if eligible).

ARTICLE 4   BENEFITS

4.1Covered Benefits. Subject to the limitations in this Plan (including but not limited to the loyalty conditions set forth in Article 8 below), this Plan provides the benefits described below.  Monthly Contributions for participation in this Plan, the International Plan, Medicare, or any other health plan are not considered “services”, and are therefore are not Covered Benefits under this Plan.
(a)Active Participants (Medical Services and Preventive Care)  
Medical Services - After the Annual Deductible has been met, 100% payment of Covered Health Services not paid under the International Plan or Medicare minus the amount of Coinsurance, until the Active Participant reaches the Annual Out-of-Pocket Maximum, at which time coverage is 100% of Covered Health Services (or 100% of Covered Health Services not paid under the International Plan).
Preventive Care - Preventive Care is covered at 100%, not subject to the Annual Deductible or Coinsurance.  
(b)Active Participants (Dental Services and Vision Services) 
100% payment, through reimbursement or otherwise, of all Dental Services and Vision Services not paid under the Active Participant’s (i) Medicare, or (ii) International Plan, provided expenses for such services would qualify as deductible medical expenses for federal income tax purposes, whether deducted or not. 
(c)Retired Participants
100% payment, through reimbursement or otherwise, of all Medical, Dental, Vision and Preventive services not paid under the Retired Participant’s Medicare, provided expenses for such services would qualify as deductible medical expenses for federal income tax purposes, whether deducted or not. 
4.2Priority of Paying Covered Claims.  Claims for benefits will be applied against the various health plans, as applicable, and coordinated with Medicare in the following order: 
(1)Medicare, to the extent the Participant is eligible therefore and such claim is actually paid by Medicare, 
(2)International Plan, if applicable,
(2)    CarePlus, if elected, 
(3)    Long Term Care Plan, if elected, 
(4)    this Plan.

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ARTICLE 5   TERMINATION OF PARTICIPATION

5.1Termination of Participation.  Participation will cease on the last day of the month in which one of the following conditions occurs:
(1)A Participant ceases to meet the definition of a Dependent (as set forth in Section 2.13 of this Plan) for any reason, in which case participation ceases for such Participant;  
(2)A Participant eligible to enroll in Medicare is no longer a participant in all parts of Medicare for which such Participant is eligible to enroll and for which Medicare would be primary if enrolled therein, except for Medicare Part D relating to prescription drug coverage, in which case participation ceases for such Participant; 
(3)The Active Employee Participant’s termination of employment for reasons other than Death, Disability, or Retirement by an individual who meets the applicable requirements of Section 3.2 in order to qualify for Plan benefits in Retirement, in which case participation ceases for the Participant and his/her Dependent(s);
(4)The demotion or designation of an Active Employee Participant so as to no longer be eligible to participate in the Plan, in which case participation ceases for the Participant and his/her Dependent(s);
(5)The Active Employee Participant (or Retired Employee Participant) participates in an activity that constitutes engaging in competitive activity with AT&T or engaging in conduct disloyal to AT&T under Article 8, in which case participation ceases for the Active Employee Participant (or Retired Employee Participant) and his/her Dependent(s); or
(6)Discontinuance of the Plan by AT&T, or, with respect to a Subsidiary’s Active Employee Participants (or Retired Employee Participants), such Subsidiary’s failure to make the benefits hereunder available to Active Employee Participants employed by it (or its Retired Employee Participants). 
Death.  In the event of the Active Employee Participant’s (or Retired Employee’s Participant’s) death, his Dependents may continue participation in this Plan as follows:
(1)    In the event of the death of a Retired Employee Participant such Retired Employee Participant’s Dependents may continue participation in this Plan, eligible for the Covered Benefits described in Section 4.1(c) of the Plan, for so long as such Dependents would have otherwise been eligible to participate under the terms of the AT&T Medical Program, are paying any applicable contributions for this Plan as provided in Article 7, and are participating in Medicare if eligible. If a surviving spouse of such deceased Active Employee Participant otherwise eligible for participation in the Plan remarries, his/her participation and the participation of any otherwise eligible Dependents will cease with the effective date of his/ her marriage.

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(2)    In the event of an in-service death of an Active Employee Participant eligible to participate in the Plan in Retirement as provided under Article 3.2, who was Retirement eligible, within the meaning of Section 2.30, at the time of death, such Active Employee Participant’s surviving Dependents may continue participation in this Plan, eligible for the Covered Benefits described in Section 4.1(a) and (b), for so long as such Dependents would have otherwise been eligible for participation under the terms of the AT&T Medical Program, are paying any applicable contributions for this Plan as provided in Article 7, and are participating in Medicare if eligible.  If a surviving spouse of such deceased Active Employee Participant otherwise eligible for participation in the Plan remarries, his/her participation and the participation of any otherwise eligible Dependents will cease with the effective date of his/ her marriage.
(3)    In the event of (i) an in-service death of an Active Employee Participant not eligible to participate in the Plan in Retirement as provided in Article 3.2 or (ii) an in-service death of an Active Employee Participant eligible to participate in the Plan in Retirement as provided in Article 3.2 but the individual was not Retirement eligible, within the meaning of Section 2.30, at the time of death, such Active Employee Participant’s Dependent(s) may continue participation in this Plan, eligible for the Covered Benefits described in Sections 4.1(a) and (b), for a 36-month period commencing the month following the month in which such Active Employee Participant dies as long as such Dependent(s) would have otherwise been eligible for participation under the terms of the AT&T Medical Program and subject to the payment of Active Participant Contributions for the first 12 months and payment of Active COBRA Contributions for the remaining 24 months, as provided by Articles 7 and 10.1.  If the Active Employee Participant’s Dependent(s) are eligible for COBRA, they will automatically be enrolled in COBRA so that there is no lapse in coverage, and this 36-month coverage will be integrated and run concurrently with COBRA coverage.

ARTICLE 6   DISABILITY

6.1Disability.  With respect to any Active Employee Participant who commences receipt of short term or long term disability benefits under the Officer Disability Plan, participation under this Plan will be as follows: 
(1)    The Participant will continue to participate in this Plan, eligible for the Covered Benefits described in Section 4.1(a) and (b), for as long as he/she receives short term disability benefits under the Officer Disability Plan and pays the applicable contributions for this Plan as provided by Article 7. 
(2)    An Active Employee Participant not eligible to participate in the Plan in Retirement as provided in Article 3.2 who commences long term disability benefits under the Officer Disability Plan or an Active Employee Participant eligible to participate in the Plan in Retirement as provided in Article 3.2 but who is not Retirement eligible, within the meaning of Section 2.30, at the time long term disability benefits under the Officer Disability Plan commence, will cease participation in this Plan (along with his/her Dependents) effective as of the last day of the calendar month in which
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such long term disability benefits commence, unless such benefits commence on the first day of a calendar month, in which case participation in this Plan shall cease effective as of the last day of the prior month.
(3)    An Active Employee Participant eligible to participate in the Plan in Retirement as provided in Article 3.2 ,who is Retirement eligible, within the meaning of Section 2.30, at the time long term disability benefits under the Officer Disability Plan commence, will be eligible to continue participation in this Plan on the same terms and conditions that participation would be available to such Participant in Retirement, subject to the payment of applicable contributions for this Plan as provided by Article 7, regardless of his/her continued receipt of long term disability benefits under the Officer Disability Plan. 
ARTICLE 7   COSTS

7.1Provision of Benefits under the Plan.  Except as provided below in this Article 7 with respect to required Monthly Contributions or with respect to any required Coinsurance, the benefits available to Participants under this Plan shall be provided through an insurance policy maintained by AT&T. 
7.2Active Participant Contributions.  An Active Participant electing to participate in the Plan will pay Monthly Contributions to participate in the Plan while in active service, while on Leave of Absence or while receiving short term disability benefits under the Officer Disability Plan. The Monthly Contribution for participation may change annually, effective at the beginning of each Plan Year.  Contributions to be made by Active Participants electing to participate in the Plan shall be set annually by the SEVP-HR, determined in the SEVP-HR’s sole and absolute discretion.  The SEVP-HR may adopt tiered rates for similarly situated groups of Participants based on factors such as the number of Dependents covered or Medicare eligibility.  Notwithstanding the foregoing, required Monthly Contributions for Executive Officers shall be approved by the Committee. 
7.3Retired Participant Contributions.  Retired Participants who elect to participate will pay Monthly Contributions to participate in the Plan. The Monthly Contribution for participation may change annually, effective at the beginning of each Plan Year.  Contributions to be made by Retired Participants who elect to participate shall be set annually by the SEVP-HR (in his/her sole and absolute discretion), to the extent their contributions have not previously been provided for in a separate agreement.
7.4Survivor Contributions.  Upon the death of a Participant, the Participant’s Dependents shall be required to pay Monthly Contributions to participate in the Plan.  The Monthly Contributions shall be set annually by the SEVP-HR, in the SEVP-HR’s sole and absolute discretion.  Any changes to the Monthly Contributions shall be effective at the beginning of each Plan Year.
7.5Contributions for Participants on Disability.  Participants continuing benefits while on Disability shall be required to pay Monthly Contributions to participate in the Plan.  The Monthly Contributions shall be set annually by the SEVP-HR, determined in the SEVP-HR’s sole and absolute discretion.  Any changes to the Monthly Contributions shall be effective at the beginning of each Plan Year.
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ARTICLE 8   LOYALTY CONDITIONS

8.1Participants acknowledge that no coverage and benefits would be provided under this Plan on and after January 1, 2010 but for the loyalty conditions and covenants set forth in this Article, and that the conditions and covenants herein are a material inducement to AT&T’s willingness to sponsor the Plan and to offer Plan coverage and benefits for the Participants on or after January 1, 2010.  Accordingly, as a condition of receiving coverage and any Plan benefits on or after January 1, 2010, each Participant is deemed to agree that he/she shall not, without obtaining the written consent of the Plan Administrator in advance, participate in activities that constitute engaging in competition with AT&T or engaging in conduct disloyal to AT&T, as those terms are defined in this Section.  Further and notwithstanding any other provision of this Plan, all coverage and benefits under this Plan on and after January 1, 2010 with respect to a Participant and his or her Dependents shall be subject in their entirety to the enforcement provisions of this Section if the Participant, without the Plan Administrator’s consent, participates in an activity that constitutes engaging in competition with AT&T or engaging in conduct disloyal to AT&T, as defined below.  The provisions of this Article 8 as in effect immediately before such date shall be applicable to Participants who retire before January 1, 2010. 
8.2Definitions.  For purposes of this Article and of the Plan generally
(1)an “Employer Business” shall mean AT&T, any Subsidiary, or any business in which AT&T or a Subsidiary or an affiliated company of AT&T has a substantial ownership or joint venture interest;
(2)“engaging in competition with AT&T” shall mean, while employed by an Employer Business or within two (2) years after the Participant’s termination of employment, engaging by the Participant in any business or activity in all or any portion of the same geographical market where the same or substantially similar business or activity is being carried on by an Employer Business.  “Engaging in competition with AT&T” shall not include owning a nonsubstantial publicly traded interest as a shareholder in a business that competes with an Employer Business.  “Engaging in competition with AT&T” shall include representing or providing consulting services to, or being an employee or director of, any person or entity that is engaged in competition with any Employer Business or that takes a position adverse to any Employer Business.
(3)“engaging in conduct disloyal to AT&T” means, while employed by an Employer Business or within two  (2) years after the Participant’s termination of employment, (i) soliciting for employment or hire, whether as an employee or as an independent contractor, for any business in competition with an Employer Business, any person employed by AT&T or its affiliates during the one (1)  year prior to the termination of the Participant’s employment, whether or not acceptance of such position would constitute a breach of such person’s contractual obligations to AT&T and its affiliates; (ii) soliciting, encouraging, or inducing any vendor or supplier with which Participant had business contact on behalf of any Employer Business during the two (2) years prior to the termination of the Participant’s employment, for any reason to terminate, discontinue, renegotiate, reduce, or otherwise cease or modify its relationship with AT&T or its affiliate; or (iii) soliciting, encouraging, or inducing any customer or active prospective customer with whom Participant had business contact, whether in person or by other media, on behalf of any Employer Business during the two (2) years prior to the termination of Participant’s employment for any reason (“Customer”), to terminate, discontinue, renegotiate, reduce, or otherwise cease or modify its relationship with any Employer Business, or to purchase competing goods or services from a business competing 
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with any Employer Business, or accepting or servicing business from such Customer on behalf of himself or any other business.  “Engaging in conduct disloyal to AT&T” also means, disclosing Confidential Information to any third party or using Confidential Information, other than for an Employer Business, or failing to return any Confidential Information to the Employer Business following termination of employment.
(4)“Confidential Information” shall mean all information belonging to, or otherwise relating to, an Employer Business, which is not generally known, regardless of the manner in which it is stored or conveyed to the Participant, and which the Employer Business 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 the Participant.  For example, Confidential Information includes, but is not limited to, information concerning the Employer Business’ 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 Employer Business, or any of the products or services made, developed or sold by the Employer Business.  Confidential Information does not include information that (i) was generally known to the public at the time of disclosure; (ii) was lawfully received by the Participant from a third party; (iii) was known to the Participant prior to receipt from the Employer Business; or (iv) was independently developed by the 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 the 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 Plan.
8.3Forfeiture of Benefits.  Subject to the provisions of Section 1001(5) of the Affordable Care Act, coverage and benefits shall be forfeited and shall not be provided under this Plan for any period as to which the Plan Administrator determines that, within the time period and without the written consent specified, Participant has been either engaging in competition with AT&T or engaging in conduct disloyal to AT&T.
8.4Equitable Relief.  The parties recognize that any Participant’s breach of any of the covenants in this Article 8 will cause irreparable injury to AT&T, will represent a failure of the consideration under which AT&T (in its capacity as creator and sponsor of the Plan) agreed to provide the Participant with the opportunity to receive Plan coverage and benefits, and that monetary damages would not provide AT&T with an adequate or complete remedy that would warrant AT&T’s continued sponsorship of the Plan and payment of Plan benefits for all Participants.  Accordingly, in the event of a Participant’s actual or threatened breach of the covenants in this Article, the Plan Administrator, in addition to all other rights and acting as a fiduciary under ERISA on behalf of all Participants, shall have a fiduciary duty (in order to assure that AT&T receives fair and promised consideration for its continued Plan sponsorship and funding) to seek an injunction restraining the Participant from breaching the covenants in this Article 8.  In addition, AT&T shall pay for any Plan expenses that the Plan Administrator incurs hereunder, and shall be entitled to recover from the Participant its reasonable attorneys’ fees and costs incurred in obtaining such injunctive remedies.  To enforce its repayment 
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rights with respect to a Participant, the Plan shall have a first priority, equitable lien on all Plan benefits provided to or for the Participant and his or her Dependents.  In the event the Plan Administrator succeeds in enforcing the terms of this Article through a written settlement with the Participant or a court order granting an injunction hereunder, the Participant shall be entitled to collect Plan benefits collect Plan benefits prospectively, if the Participant is otherwise entitled to such benefits, net of any fees and costs assessed pursuant hereto (which fees and costs shall be paid to AT&T as a repayment on behalf of the Participant), provided that the Participant complies with said settlement or injunction.
8.5Uniform Enforcement.  In recognition of AT&T’s need for nationally uniform standards for the Plan administration, it is an absolute condition in consideration of any Participant’s accrual or receipt of benefits under the Plan after January 1, 2010 that each and all of the following conditions apply to all Participants and to any benefits that are paid or are payable under the Plan: 
(5)ERISA shall control all issues and controversies hereunder, and the Committee shall serve for purposes hereof as a “fiduciary” of the Plan, and as its “named fiduciary” within the meaning of ERISA.
(6)All litigation between the parties relating to this Article shall occur in federal court, which shall have exclusive jurisdiction, any such litigation shall be held in the United States District Court for the Northern District of Texas, and the only remedies available with respect to the Plan shall be those provided under ERISA.
(7)If the Plan Administrator determines in its sole discretion either (I) that AT&T or its affiliate that employed the Participant terminated the Participant’s employment for cause, or (II) that equitable relief enforcing the Participant’s covenants under this Article 8 is either not reasonably available, not ordered by a court of competent jurisdiction, or circumvented because the Participant has sued in state court, or has otherwise sought remedies not available under ERISA, then in any and all of such instances the Participant shall not be entitled to collect any Plan benefits, and if any Plan benefits have been paid to the, the Participant shall immediately repay all Plan benefits to the Plan (with such repayments being used within such year for increased benefits for other Participants in any manner determined in the Plan Administrator’s discretion) upon written demand from the Plan Administrator.  Furthermore, the Participant shall hold AT&T and its affiliates harmless from any loss, expense, or damage that may arise from any of the conduct described in clauses (I) and (II) hereof.

ARTICLE 9   MISCELLANEOUS

9.1Administration.  The Plan Administrator is the named fiduciary of the Plan and has the power and duty to do all things necessary to carry out the terms of the Plan.  The Plan Administrator has the sole and absolute discretion to interpret the provisions of the Plan, to make findings of fact, to determine the rights and status of Participants and other under the Plan, to determine which expenses and benefits qualify as Covered Health Services or Covered Benefits, to make all benefit determinations under the Plan, to decide disputes under the Plan and to delegate all or a part of this discretion to third parties and insurers.  To the fullest extent permitted by law, such interpretations, findings, determinations and decisions shall be final, binding and conclusive on all persons for all purposes of the Plan.  The Plan Administrator may delegate any or all of its authority and responsibility under the Plan to other individuals, committees, third party administrators, claims administrators or insurers for any purpose, including, but not limited to the processing of benefits and claims related thereto.  In carrying out these functions, these individuals or entities have been delegated responsibility and discretion for interpreting the provisions of the Plan, making findings of fact, determining the rights and status of Participants and others under the Plan, and deciding disputes under the Plan and such 
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interpretations, findings, determinations and decisions shall be final, binding and conclusive on all persons for all purposes of the Plan.  
9.2Amendments and Termination.  This Plan may be modified or terminated at any time in accordance with the provisions of AT&T's Schedule of Authorizations. 
9.3Newborns' and Mothers' Health Protection Act of 1996.  To the extent this Plan provides benefits for hospital lengths of stay in connection with childbirth, the Plan will cover the minimum length of stay required for deliveries (i.e., a 48-hour hospital stay after a vaginal delivery or a 96-hour stay following a delivery by Cesarean section.)  The mother’s or newborn’s attending physician, after consulting with the mother, may discharge the mother or her newborn earlier than the minimum length of stay otherwise required by law.  Such coverage shall be subject to all other provisions of this Plan.
9.4Women's Health and Cancer Rights Act of 1998.  To the extent this Plan provides benefits for mastectomies, it will provide, for an individual who is receiving benefits in connection with a mastectomy and who elects breast reconstruction in connection with such mastectomy, coverage for reconstruction on the breast on which the mastectomy was performed, surgery and reconstruction on the other breast to give a symmetrical appearance, and prosthesis and coverage for physical complications of all stages of the mastectomy, including lymphedemas.  Such coverage shall be subject to all other provisions of this Plan.
9.5Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008.   To the extent this Plan provides mental health benefits or substance use disorder benefits it will not place annual or lifetime maximums for such benefits that are lower than the annual and lifetime maximums for physical health benefits.  In addition, the financial requirements (e.g., deductibles and co-payments) and treatment limitations (e.g., number of visits or days of coverage) that apply to mental health benefits or substance use disorder benefits will not be more restrictive than the predominant financial requirements or treatment limitations that apply to substantially all medical/surgical benefits; mental health benefits and substance use disorder benefits will not be subject to any separate cost sharing requirements or treatment limitations that only apply to such benefits; if the Plan provides for out of network medical/surgical or substance use disorder benefits, it will provide for out of network mental health and substance use disorder benefits and standards for medical necessity determinations and reasons for any denial of benefits relating to mental health benefits and substance use disorder benefits will be made available upon request to plan participants.  Such coverage shall be subject to all other provisions of this Plan.
9.6Continuation of Coverage During Family or Medical Leave.  During any period which an Active Employee Participant is on a family or medical leave as defined in the Family or Medical Leave Act, any benefit elections in force for such Participant shall remain in effect.  While the Participant is on paid leave, contributions shall continue.  If the Participant is on an unpaid leave, the Participant may elect to prepay required contributions on a pre-tax basis before the commencement of such unpaid leave.  Alternatively, the Participant may elect to make such payments on an after-tax basis monthly in accordance with an arrangement that the Plan Administrator shall provide.  If coverage is not continued during the entire period of the family or medical leave because the Participant declines to pay the premium, the coverage must be reinstated upon reemployment with no exclusions or waiting periods, notwithstanding any other provision of this Plan to the contrary. If the Participant does not return to work upon completion of the leave, the Participant must pay the full cost of any health care coverage that was continued on his/her behalf during the leave.  These rules apply to the COBRA eligible programs. 
9.7Rights While on Military Leave.  Pursuant to the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994, an Active Employee Participant on military leave will be considered to be on a Leave of Absence and will be 
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entitled during the leave to the health and welfare benefits that would be made available to other similarly situated employees if they were on a Leave of Absence.  This entitlement will end if the individual provides written notice of intent not to return to work following the completion of the military leave.  The individual shall have the right to continue his/her coverage, including any Dependent coverage, for the lesser of the length of the leave or 18 months.  If the military leave is for a period of 31 days or more, the individual may be required to pay 102 percent of the total premium (determined in the same manner as a COBRA continuation coverage premium).  If coverage is not continued during the entire period of the military leave because the individual declines to pay the premium or the leave extends beyond 18 months, the coverage must be reinstated upon reemployment with no pre-existing condition exclusions (other than for service-related illnesses or injuries) or waiting periods (other than those applicable to all Eligible Employees).
9.8Qualified Medical Child Support Orders.  The Plan will comply with any Qualified Medical Child Support Order issued by a court of competent jurisdiction or administrative body that requires the Plan to provide medical coverage to a Dependent child of an Active Employee or Retired Employee Participant.  The Plan Administrator will establish reasonable procedures for determining whether a court order or administrative decree requiring medical coverage for a Dependent child meets the requirements for a Qualified Medical Child Support Order.  The cost of coverage or any additional cost of such coverage, if any, shall be borne by the Participant.
9.9Right of Recovery.  If the Plan has made an erroneous or excess payment to any Participant, the Plan Administrator shall be entitled to recover such excess from the individual or entity to whom such payments were made.  The recovery of such overpayment may be made by offsetting the amount of any other benefit or amount payable by the amount of the overpayment under the Plan.

ARTICLE 10   COBRA

10.1Continuation of Coverage Under COBRA.  Participants shall have all COBRA continuation rights required by federal law and all conversion rights.  COBRA continuation coverage shall be continued as provided in this Article 10.  
10.2COBRA Continuation Coverage for Terminated Participants.  A covered Active Employee Participant may elect COBRA continuation coverage, at his/her own expense, if his participation under this Plan would terminate as a result of one of the following Qualifying Events: an Employee’s termination of employment or reduction of hours with an Employer. 
10.3COBRA Continuation Coverage for Dependents.  A Qualified Dependent may elect COBRA continuation coverage, at his/her own expense, if his/her participation under this Plan would terminate as a result of a Qualifying Event. 
10.4Period of Continuation Coverage for Covered Participants.  A covered Active Employee Participant who qualifies for COBRA continuation coverage as a result of a Participant’s termination of employment or reduction in hours of employment described in Subsection 10.2 may elect COBRA continuation coverage for up to 18 months measured from the date of the Qualifying Event. 
Coverage under this Subsection 10.4 may not continue beyond the:
(1)date on which the Active Employee Participant’s Employer ceases to maintain this Plan;
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(2)last day of the month for which premium payments have been made with respect to this Plan, if the individual fails to make premium payments on time, in accordance with Subsection 10.6;
(3)date the covered Active Employee Participant becomes entitled to Medicare; or
(4)date the covered Participant is no longer subject to a pre-existing condition exclusion under the Participant's other coverage or new employer plan for the type of coverage available under the COBRA eligible program for which the COBRA election was made.
10.5Period of COBRA Continuation Coverage for Dependents.  If a Qualified Dependent elects COBRA continuation coverage under a COBRA eligible program as a result of the an Active Employee Participant’s termination of employment as described in Subsection 10.2, continuation coverage may be continued for up to 18 months measured from the date of the Qualifying Event.  COBRA continuation coverage for all other Qualifying Events may continue for up to 36 months.
Continuation coverage under this Subsection 10.5 with respect to a COBRA eligible program may not continue beyond the date:
(1)on which premium payments have not been made, in accordance with Subsection 10.6 below;
(2)the Qualified Dependent becomes entitled to Medicare; 
(3)on which the Employer ceases to maintain this Plan; or
(4)the Qualified Dependent is no longer subject to a pre-existing condition exclusion under the Participant’s other coverage or new employer plan for the type of coverage available under this Plan. 
10.1Contribution Requirements for COBRA Continuation Coverage.  Covered Participants and Qualified Dependents who elect COBRA continuation coverage as a result of a Qualifying Event will be required to pay continuation coverage payments.  Continuation coverage payments are the payments required for COBRA continuation coverage that is an amount equal to a reasonable estimate of the cost to this Plan of providing coverage for all covered Participants at the time of the Qualifying Event plus a 2% administrative expense.  In the case of a disabled individual who receives an additional 11-month extended coverage under COBRA, the Employer may assess up to 150% of the cost for this extended coverage period.  Such cost shall be determined on an actuarial basis and take into account such factors as the Secretary of the Treasury may prescribe in regulations.
Covered Participants and Qualified Dependents must make the continuation coverage payment prior to the first day of the month in which such coverage will take effect.  However, a covered Participant or Qualified Dependent has 45 days from the date of an affirmative election to pay the continuation coverage payment for the first month's payment and the cost for the period between the date medical coverage would otherwise have terminated due to the Qualifying Event and the date the covered Participant and/or Qualified Dependent actually elects COBRA continuation coverage.  
The covered Participant and/or Qualified Dependent shall have a 30-day grace period to make the continuation coverage payments due thereafter.  Continuation coverage payments must be postmarked on or before the completion of the 30-day grace period.  If continuation coverage payments are not made on a timely basis, COBRA continuation coverage will terminate as of the last day of the month for which timely premiums were 
15

made.  The 30-day grace period shall not apply to the 45-day period for the first month’s payment of COBRA premiums as set out in the section above. 
If payment is received that is significantly less than the required continuation coverage payment, then continuation coverage will terminate as of the last day of the month for which premiums were paid.  A payment is considered significantly less than the amount due if it is greater than the lesser of $50 or 10% of the required continuation coverage payment.  Upon receipt of a continuation coverage payment that is insignificantly less than the required amount, the Plan Administrator must notify the covered Participant or Qualified Dependent of the amount of the shortfall and provide them with an additional 30-day grace period from the date of the notice for this payment only.  

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10.2Limitation on Participant's Rights to COBRA Continuation Coverage.
(1)If a Qualified Dependent loses, or will lose medical coverage under this Plan as a result of divorce, legal separation, entitlement to Medicare, or ceasing to be a Dependent, such Qualified Dependent is responsible for notifying the Plan Administrator in writing within 60 days of the Qualifying Event.  Failure to make timely notification will terminate the Qualified Dependent's rights to COBRA continuation coverage under this Article.
(2)A Participant must complete and return the required enrollment materials within 60 days from the later of (a) the date of loss of coverage, or (b) the date the Plan Administrator sends notice of eligibility for COBRA continuation coverage.  Failure to enroll for COBRA continuation coverage during this 60-day period will terminate all rights to COBRA continuation coverage under this Article.  An affirmative election of COBRA continuation coverage by a Participant or his/her spouse shall be deemed to be an election for that Participant's Dependent(s) who would otherwise lose coverage under the Plan.
10.6Subsequent Qualifying Event.  If a second Qualifying Event occurs during an 18-month extension explained above, coverage may be continued for a maximum of 36 months from the date of the first Qualifying Event.  In the event the Dependent loses coverage due to a Qualifying Event and after such date the Participant becomes entitled to Medicare, the Dependent shall have available up to 36 months of coverage measured from the date of the Qualifying Event that causes the loss of coverage.  If the Participant was entitled to Medicare prior to the Qualifying Event, the Dependent shall have up to 36 months of coverage measured from the date of entitlement to Medicare.
10.7Extension of COBRA Continuation Period for Disabled Individuals.  The period of continuation shall be extended to 29 months in total (measured from the date of the Qualifying Event) in the event the individual is disabled as determined by the Social Security laws within 60 days of the Qualifying Event.  The individual must provide evidence to the Plan Administrator of such Social Security determination prior to the earlier of 60 days after the date of the Social Security determination, or the expiration of the initial 18 months of COBRA continuation coverage.  In such event, the Employer may charge the individual up to 150% of the COBRA cost of the coverage.

ARTICLE 11   PRIVACY OF MEDICAL INFORMATION
11.1Definitions.  For purposes of this Article 11, the following defined terms shall have the meaning assigned to such terms in this subsection: 
(1)    “Business Associate” shall have the meaning assigned to such phrase at 45 C.F.R. § 160.103; 
(2)    “Health Care Operations” shall have the meaning assigned to such phrase at 45 C.F.R. § 164.501;
(3)    “HIPAA” shall mean Parts 160 (“General Administrative Requirements”) and 164 (“Security and Privacy”) of Title 45 of the Code of Federal Regulations as such parts are amended from time to time; 
(4)    “Payment” shall have the meaning assigned to such phrase at 45 C.F.R § 160.103;
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(5)    “Protected Health Information” or “PHI” shall have the meaning assigned to such phrase at 45 C.F.R. § 160.103; and
(6)    “Treatment” shall have the meaning assigned to such phrase at 45 C.F.R. § 164.501.
11.2Privacy Provisions Relating to Protected Health Information (“PHI”).  The Plan and its Business Associates shall use and disclose PHI to the extent permitted by, and in accordance with, HIPAA, for purposes of providing benefits under the Plan and for purposes of administering the plan, including, by way of illustration and not by way of limitation, for purposes of Treatment, Payment, and Health Care Operations.  
Disclosure of De-Identified or Summary Health Information.  The HIPAA Plan, or, with respect to the HIPAA Plan, a health insurance issuer, may disclose summary health information (as that phrase is defined at 45 C.F.R. § 160.5049a))  to the Plan Sponsor of the HIPAA Plan (and its affiliates) if such entity requests such information for the purpose of: 
(1)Obtaining premium bids from health plans for providing health insurance coverage under the HIPAA Plan; 
(2)    Modifying, amending or terminating the group health benefits under the HIPAA Plan. 
In addition, the HIPAA Plan or a health insurance insurer with respect to the HIPAA Plan may disclose to the Plan Sponsor of the HIPAA Plan (or its affiliates) information on whether an individual is participating in the group health benefits provided by the HIPAA Plan or is enrolled in, or has ceased enrollment with health insurance offered by the HIPAA Plan.
11.3The HIPAA Plan Will Use and Disclose PHI as Required by Law or as Permitted by the Authorization of the Participant or Beneficiary.  Upon submission of an authorization signed by a Participant, beneficiary, subscriber or personal representative that meets HIPAA requirements, the HIPAA Plan will disclose PHI. 
In addition, PHI will be disclosed to the extent permitted or required by law, without the submission of an authorization form.
11.4Disclosure of PHI to the Plan Sponsor.  The HIPAA Plan will disclose information to the Plan Sponsor only upon certification from the Plan Sponsor that the HIPAA Plan documents have been amended to incorporate the assurances provided below. 
The Plan Sponsor agrees to:
(1)    not use or further disclose PHI other than as permitted or required by the HIPAA Plan document or as required by law; 
(2)    ensure that any affiliates or agents, including a subcontractor, to whom the Plan Sponsor provides PHI received from the HIPAA Plan, agrees to the same restrictions and conditions that apply to the Plan Sponsor with respect to such PHI; 
(3)    not use or disclose PHI for employment-related actions and decisions unless authorized by the individual to whom the PHI relates; 
(4)    not use or disclose PHI in connection with any other benefits or employee benefit plan of the Plan Sponsor or its affiliates unless permitted by the Plan or authorized by an individual to whom the PHI relates; 
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(5)    report to the Plan any PHI use or disclosure that is inconsistent with the uses or disclosures provided for of which it becomes aware; 
(6)    make PHI available to an individual in accordance with HIPAA’s access rules; 
(7)    make PHI available for amendment and incorporate any amendments to PHI in accordance with HIPAA; 
(8)    make available the information required to provide an accounting of disclosures; 
(9)    make internal practices, books and records relating to the use and disclosure of PHI received from the HIPAA Plan available to the Secretary of the United States Department of Health and Human Resources for purposes of determining the Plan’s compliance with HIPAA; and
(10)    if feasible, return or destroy all PHI received from the HIPAA Plan that the Plan Sponsor still maintains in any form, and retain no copies of such PHI when no longer needed for the purpose for which disclosure was made (or if return or destruction is not feasible, limit further uses and disclosures to those purposes that make the return or destruction infeasible). 
11.5Separation Between the Plan Sponsor and the HIPAA Plan.  In accordance with HIPAA, only the following employees and Business Associate personnel shall be given access to PHI: 
(1)    employees of the AT&T Benefits and/or AT&T Executive Compensation organizations responsible for administering group health plan benefits under the HIPAA Plan, including those employees whose functions in the regular course of business include Payment, Health Care Operations or other matters pertaining to the health care programs under a HIPAA Plan; 
(2)    employees who supervise the work of the employees described in (1), above; 
(3)    support personnel, including other employees outside of the AT&T Benefits or AT&T Executive Compensation organizations whose duties require them to rule on health plan-related appeals or perform functions concerning the HIPAA Plan; 
(4)    investigatory personnel to the limited extent that such PHI is necessary to conduct investigations of possible fraud; 
(5)    outside and in-house legal counsel providing counsel to the HIPAA Plan; 
(6)    consultants providing advice concerning the administration of the HIPAA Plan; and
(7)    the employees of Business Associates charged with providing services to the HIPAA Plan. 
The persons identified above shall have access to and use PHI to the extent that such access and use is necessary for the administration of group health benefits under a HIPAA Plan.  If these persons do not comply with this Plan document, the Plan Sponsor shall provide a mechanism for resolving issues of noncompliance, including disciplinary sanctions. 
11.6Enforcement.  
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Enforcement of this Article 11 shall be as provided for by HIPAA. In particular, participants and beneficiaries are not authorized to sue with regard to purported breaches of this Article 11 except as explicitly permitted by HIPAA. 
ARTICLE 12    CLAIM AND APPEAL PROCESS
12.1    Claims for Benefits under the Plan. – See Appendix B.
12.2    Claims Related to Basic Eligibility for Coverage under the Plan and Claims Related to the Article 8 Loyalty Conditions.
(a)    Claims.  A person who believes that he or she is being denied a benefit to which he or she is entitled under this Plan (hereinafter referred to as a “Claimant”) based on a claim for basic eligibility for coverage under the Plan or a claim related to the Article 8 Loyalty Conditions may file a written request for such benefit with the Executive Compensation Administration Department, setting forth his or her claim. The request must be addressed to the AT&T Executive Compensation Administration Department at its then principal place of business.
(b)    Claim Decision.  Upon receipt of a claim, the AT&T Executive Compensation Administration Department shall review the claim and provide the Claimant with a written notice of its decision within a reasonable period of time, not to exceed ninety (90) days, after the claim is received. If the AT&T Executive Compensation Administration Department determines that special circumstances require an extension of time beyond the initial ninety (90)- day claim review period, the AT&T Executive Compensation Administration Department shall notify the Claimant in writing within the initial ninety (90)-day period and explain the special circumstances that require the extension and state the date by which the AT&T Executive Compensation Administration Department expects to render its decision on the claim. If this notice is provided, the AT&T Executive Compensation Administration Department may take up to an additional ninety (90) days (for a total of one hundred eighty (180) days after receipt of the claim) to render its decision on the claim. 
If the claim is denied by the AT&T Executive Compensation Administration Department, in whole or in part, the AT&T Executive Compensation Administration Department shall provide a written decision using language calculated to be understood by the Claimant and setting forth:  (i) the specific reason or reasons for such denial; (ii) specific references to pertinent provisions of this Plan on which such denial is based; (iii) a description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation of why such material or such information is necessary; (iv) a description of the Plan’s procedures for review of denied claims and the steps to be taken if the Claimant wishes to submit the claim for review; (v) the time limits for requesting a review of a denied claim under this section and for conducting the review under this section ; and (vi)  a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA if the claim is denied following review under this section. 
(c)    Request for Review. Within sixty (60) days after the receipt by the Claimant of the written decision on the claim provided for in this section, the Claimant may request in writing that the Plan Administrator review the determination of the AT&T Executive Compensation Administration Department.  Such request must be addressed to the Plan Administrator at the address provided in the written decision regarding the claim.  To assist the Claimant in deciding whether to request a review of a denied claim or in preparing a request for review of a denied claim, a Claimant shall be provided, upon written request to the Plan Administrator and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim.  The Claimant or his or her duly authorized representative may, but need not, submit a statement of the issues and comments in writing, as well as other documents, records or other information relating to the claim for consideration by the Committee.  If the Claimant does not request a review by the Plan Administrator of the AT&T Executive Compensation Administration Department’s decision within such sixty (60)-day 
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period, the Claimant shall be barred and estopped from challenging the determination of the AT&T Executive Compensation Administration Department. 
(d)    Review of Decision.  Within sixty (60) days after the Plan Administrator’s receipt of a request for review, the Plan Administrator will review the decision of the AT&T Executive Compensation Administration Department.  If the Plan Administrator determines that special circumstances require an extension of time beyond the initial sixty (60)-day review period, the Plan Administrator shall notify the Claimant in writing within the initial sixty (60)-day period and explain the special circumstances that require the extension and state the date by which the Plan Administrator expects to render its decision on the review of the claim.  If this notice is provided, the Plan Administrator may take up to an additional sixty (60) days (for a total of one hundred twenty (120) days after receipt of the request for review) to render its decision on the review of the claim. 
During its review of the claim, the Plan Administrator shall:
(1)    Take into account all comments, documents, records, and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial review of the claim conducted pursuant to this section;
(2)    Follow reasonable procedures to verify that its benefit determination is made in accordance with the applicable Plan documents; and
(3)    Follow reasonable procedures to ensure that the applicable Plan provisions are applied to the Participant to whom the claim relates in a manner consistent with how such provisions have been applied to other similarly-situated Participants. 
After considering all materials presented by the Claimant, the Plan Administrator will render a decision, written in a manner designed to be understood by the Claimant.  If the Plan Administrator denies the claim on review, the written decision will include (i) the specific reasons for the decision; (ii) specific references to the pertinent provisions of this Plan on which the decision is based; (iii) a statement that the Claimant is entitled to receive, upon request to the Plan Administrator and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim; and (iv) a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA. 
In any case, a Participant or Beneficiary may have further rights under ERISA. The Plan provisions require that Participants or Beneficiary pursue all claim and appeal rights described in this section before they seek any other legal recourse regarding claims for benefits.
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Appendix A

AT&T Health Plan
2023 Monthly Contributions, Annual Deductible, Coinsurance Percentages and 
Annual Out-of-Pocket Maximum

Active Participants
						
	Monthly Contributions	Individual - $ 262
Individual + Spouse - $ 428
Individual + 1 or More Children - $ 282
Individual + Spouse + 1 or More Children - $ 667

	Annual Deductible	Individual - $ 1,750
All other tiers - $ 3,500

	Coinsurance Percentage	10% after the Annual Deductible is met.  Coinsurance applies until the Annual Out-of-Pocket Maximum is reached.
	Annual Out-of-Pocket Maximum	Individual - $ 7,050
All other tiers- $ 14,100 (individual amount of $ 7,050)

Retired Participants – Monthly Contributions
									
	Retired Prior to August 31, 1992 and Surviving Spouses	Individual - $ 278
Individual + Spouse - $ 278
Individual + 2 or More - $ 278

	Retired on or after September 1, 1992 and Surviving Spouses

Note:  The Plan Administrator shall maintain records governing whether a Retired Participant is in Class A, B, C or D.  
	Class A	Individual - $ 843
Individual + Spouse - $ 1,349
Individual + 1 or More Children - $ 843
Individual + Spouse + 1 or More Children - $ 1,499

	Class B	Individual - $ 1,004
Individual + Spouse - $ 1,506
Individual + 1 or More Children - $ 1,004
Individual + Spouse + 1 or More Children - $ 1,827

	Class C	Individual - $ 1,246
Individual + Spouse - $ 1,745
Individual + 1 or More Children - $ 1,246
Individual + Spouse + 1 or More Children - $ 2,219

	Class D	Individual - $ 1,739
Individual + Spouse - $ 2,609
Individual + 1 or More Children - $ 1,739
Individual + Spouse + 1 or More Children - $ 3,026

COBRA Continuation Coverage – Monthly Contributions
						
	Active COBRA	Individual - $2,747
Individual + Spouse - $5,628
Individual + 1 or More Children - $4,464
Individual + Spouse + 1 or More Children - $8,051

	Retired Prior to August 31, 1992 and Surviving Spouses COBRA	Individual - $2,161
Individual + 1 - $4,221
Individual + 2 or More - $6,061

	Retired on or after September 1, 1992 and Surviving Spouses COBRA	Individual - $2,117
Individual + Spouse - $4,338
Individual + 1 or More Children - $3,440
Individual + Spouse + 1 or More Children - $6,205

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APPENDIX B

CLAIMS PROCEDURE APPLICABLE TO CLAIMS FOR BENEFITS UNDER THE PLAN

Claim for Benefits Procedures
You, your covered dependents or a duly authorized person has the right under ERISA and the Plan to file a written claim for benefits under the Plan. The following describes the procedures used by the Plan to process claims for benefits, along with your rights and responsibilities. These procedures were designed to comply with the rules of the Department of Labor (DOL) concerning claims for Benefits. It is important that you follow these procedures to make sure that you receive full benefits under the Plan.
The Plan is an ERISA plan, and you may file suit in federal court if you are denied benefits you believe are due you under the Plan. However, you must complete the full claims and appeal process offered under the Plan before filing a lawsuit.
Filing a Claim for Benefits
When filing a claim for benefits, you should file the claim with the Claims Administrator.  The Claims Administrator is the third party to whom claims and appeal responsibility has been delegated as permitted under Section 9.1 of the Plan.
The following are not considered claims for benefits under the Plan:
•A claim related to basic eligibility for coverage under the Plan (See Section 12.2 of the Plan).
•A claim related to the Loyalty Conditions contained in Article 8 of the Plan (See Section 12.2 of the Plan).
Claim Filing Limits
A request for payment of benefits must be submitted within one year after the date of service or the date the prescription was provided.
Required Information
When you request payment of benefits from the Plan, you must provide certain information as requested by the Claims Administrator. 
Benefit Determinations
Post-Service Claims
Post-service claims are those claims that are filed for payment of benefits after medical care has been received. If your post-service claim is denied, you will receive a written notice from the Claims Administrator within 30 days of receipt of the claim, as long as all needed information identified above and any other information that the Claims Administrator may request in connection with services rendered to you was provided with the claim. The Claims Administrator will notify you within this 30-day period if additional information is needed to process the Claim and may request a one-time extension not longer than 15 days and pend your Claim until all information is received.
Once notified of the extension, you then have 45 days to provide this information. If all of the needed information is received within the 45-day time frame and the claim is denied, the claims Administrator will notify you of the denial within 15 days after the information is received. If you don't provide the needed information within the 45-day period, your claim will be denied.
A denial notice will explain the reason for denial, refer to the part of the Plan on which the denial is based, and provide the claim appeal procedures.
Pre-Service Claims
Pre-service claims are those claims that require notification or approval prior to receiving medical care or require notification within a specified time period after service begins as required under the Plan provisions. If your claim is a pre-service claim and is submitted properly with all needed information, you will receive written notice of the claim decision from the Claims Administrator within 15 days of receipt of the claim. If you file a pre-service claim improperly, the Claims Administrator will notify you of the improper filing and how to correct it within five days after the pre-service claim is received. If additional information is needed to process the pre-service claim, the Claims Administrator will notify you of the information needed within 15 days after the claim was received and may request a one-time extension not longer than 15 days and pend your claim until all information is received. Once notified of the extension, you then have 45 days to provide this information. If all of the needed information is received within the 45-day time frame, the Claims Administrator will notify you of the determination within 15 days after the information is received. If you don't provide the needed information within the 45-day period, your claim will be denied. A denial notice will explain the reason for denial, refer to the part of the Plan on which the denial is based, and provide the claim appeal procedures.
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Urgent Care Claims That Require Immediate Action
Urgent care claims are those claims that require notification or approval prior to receiving medical care in which a delay in treatment could seriously jeopardize your life or health or the ability to regain maximum function or, in the opinion of a physician with knowledge of your medical condition, could cause severe pain. In these situations:
•You will receive notice of the benefit determination in writing or electronically within 72 hours after the Claims Administrator receives all necessary information, taking into account the seriousness of your condition.
•Notice of denial may be oral with a written or electronic confirmation to follow within three days.
If you filed an urgent claim improperly, the Claims Administrator will notify you of the improper filing and how to correct it within 24 hours after the urgent claim was received. If additional information is needed to process the claim, the Claims Administrator will notify you of the information needed within 24 hours after the claim was received. You then have 48 hours to provide the requested information.
You will be notified of a determination no later than 48 hours after either:
•The Claims Administrator's receipt of the requested information.
•The end of the 48-hour period within which you were to provide the additional information, if the information is not received within that time.
A denial notice will explain the reason for denial, refer to the part of the Plan on which the denial is based, and provide the claim appeal procedures.
Concurrent Care Claims
If an ongoing course of treatment was previously approved for a specific period of time or number of treatments, and your request to extend the treatment is an urgent care claim as defined above, your request will be decided within 24 hours, provided your request is made at least 24 hours prior to the end of the approved treatment. The Claims Administrator will make a determination on your request for the extended treatment within 24 hours from receipt of your request.
If your request for extended treatment is not made at least 24 hours prior to the end of the approved treatment, the request will be treated as an urgent care claim and decided according to the time frames described above. If an ongoing course of treatment was previously approved for a specific period of time or number of treatments, and you request to extend treatment in a non-urgent circumstance, your request will be considered a new claim and decided according to post-service or pre-service timeframes, whichever applies.
How to Appeal a Claim Decision
If you disagree with a pre-service or post-service claim determination after following the above steps, you can contact the applicable Claims Administrator in writing to formally request an appeal. Your first appeal request must be submitted to the Claims Administrator within 180 days after you receive the Claim denial.
Appeal Process
A qualified individual who was not involved in the decision being appealed will be appointed to decide the appeal. The Claims Administrator may consult with, or seek the participation of, medical experts as part of the appeal resolution process. You must consent to this referral and the sharing of pertinent medical claim information. Upon written request and free of charge you have the right to reasonable access to and copies of all documents, records and other information relevant to your claim for benefits.
Appeals Determinations
Pre-Service and Post-Service Claim Appeals
You will be provided written or electronic notification of the decision on your appeal as follows:
•For appeals of pre-service claims, the first-level appeal will be conducted and you will be notified by the Claims Administrator of the decision within 15 days from receipt of a request for appeal of a denied Claim. The second-level appeal will be conducted and you will be notified by the Claims Administrator of the decision within 15 days from receipt of a request for review of the first-level appeal decision.
•For appeals of post-service claims, the first-level appeal will be conducted and you will be notified by the Claims Administrator of the decision within 30 days from receipt of a request for appeal of a denied claim. The second-level appeal will be conducted and you will be notified by the Claims Administrator of the decision within 30 days from receipt of a request for review of the first-level appeal decision.
26

•For procedures associated with urgent Claims, refer to the following "Urgent Claim Appeals That Require Immediate Action" section.
•If you are not satisfied with the first-level appeal decision of the Claims Administrator, you have the right to request a second-level appeal from the Claims Administrator. Your second level appeal request must be submitted to the Claims Administrator in writing within 60 days from receipt of the first-level appeal decision.
•For pre-service and post-service claim appeals, the Plan Administrator has delegated to the Claims Administrator the exclusive right to interpret and administer the provisions of the Plan. The Claims Administrator's decisions are conclusive and binding.
Please note that the Claims Administrator's decision is based only on whether or not benefits are available under the Plan for the proposed treatment or procedure. The determination as to whether the pending health service is necessary or appropriate is between you and your physician.
Urgent Claim Appeals That Require Immediate Action
Your appeal may require immediate action if a delay in treatment could significantly increase the risk to your health or the ability to regain maximum function or cause severe pain.
In these urgent situations, the appeal does not need to be submitted in writing. You or your physician should call the Claims Administrator as soon as possible. The Claims Administrator will provide you with a written or electronic determination within 72 hours following receipt by the Claims Administrator of your request for review of the determination taking into account the seriousness of your condition.
For urgent claim appeals, the Plan Administrator has delegated to the applicable Claims Administrator the exclusive right to interpret and administer the provisions of the Plan. The Claims Administrator's decisions are conclusive and binding.
In any case, a Participant or Beneficiary may have further rights under ERISA. The Plan provisions require that Participants or Beneficiary pursue and exhaust all claim and appeal rights described in this section before they seek any other legal recourse regarding claims for benefits. 

27

APPENDIX C
DISCLOSURE OF GRANDFATHERED STATUS
MODEL NOTICE

AT&T, as plan sponsor, believes this Plan is a “grandfathered health plan” under the Patient Protection and Affordable Care Act (the “Affordable Care Act”).  As permitted by the Affordable Care Act, a grandfathered health plan can preserve certain basic health coverage that was already in effect when that law was enacted.  Being a grandfathered health plan means that the plan may not include certain consumer protections of the Affordable Care Act that apply to other plans, for example, the requirement for the provision of preventive health services without any cost sharing.  However, grandfathered health plans must comply with certain other consumer protections of the Affordable Care Act, for example, the elimination of lifetime limits on benefits.
Questions regarding which protections apply and which protections do not apply to a grandfathered health plan and what might cause a plan to change from grandfathered health plan status can be directed to the plan administrator at P.O. Box 30558, Salt Lake City, Utah  84130-0558.  You may also contact the Employee Benefits Security Administration, U.S. Department of labor at 1-866-444-3272 or https://www.dol.gov/ebsa/healthreform.  This website has a table summarizing which protections do and do not apply to grandfathered health plans.  

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APPENDIX D

Notwithstanding the provisions and limitations of Section 2.15 of the Plan, the following Officers shall be included in the term “Eligible Employee” and shall be eligible to participate in the Plan (along with any Dependents) subject to all applicable provisions of the Plan:

									
	Name	Title	Effective Date of Participation
	David McAtee	Senior Executive Vice President & General Counsel	February 1, 2018

29

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