Document:

AT&T INC.

2016 Incentive Plan

Article 1.        Establishment and Purpose.

	
1.01

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

	
1.02

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

	
1.03

	
Effective Date of the Plan.  The Plan is effective on May 1, 2016.

Article 2.        Definitions.

	
2.01

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

	
(a)

	
"Applicable Law" means the legal requirements relating to the administration of options and share-based or performance-based awards under any applicable laws of the United States, any other country, and any provincial, state, or local subdivision, any applicable stock exchange or automated quotation system rules or regulations, as such laws, rules, regulations and requirements shall be in place from time to time.

	
(b)

	
"Award" means, individually or collectively, a grant or award under this Plan of Stock Options, Restricted Stock (including unrestricted Stock), Restricted Stock Units, Performance Units, or Performance Shares.

	
(c)

	
"Award Agreement" means an agreement which may be entered into by each Participant and the Company, setting forth the terms and provisions applicable to Awards granted to Participants under this Plan.

	
(d)

	
"Board" or "Board of Directors" means the AT&T Board of Directors.

	
(e)

	
"Cause" means willful and gross misconduct on the part of an Employee that is materially and demonstrably detrimental to the Company or any Subsidiary as determined by the Committee in its sole discretion.

	
(f)

	
"Change in Control" shall be deemed to have occurred if (1) any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the shareowners of the Company in substantially the same proportions as their ownership of stock of the Company, becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing twenty percent (20%) or more of the total voting power represented by the Company's then outstanding voting securities; or (2) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new Director whose election by the Board of Directors or nomination for election by the Company's shareowners was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (3) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareowners of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company's assets.

 

	
(g)

	
"Code" means the Internal Revenue Code of 1986, as amended from time to time.

	
(h)

	
"Committee" means the committee or committees of the Board of Directors given authority to administer the Plan as provided in Article 3.

	
(i)

	
"Director" means any individual who is a member of the AT&T Board of Directors.

	
(j)

	
"Disability" means, absence of an Employee from work under the relevant Company or Subsidiary long term disability plan.

	
(k)

	
"Employee" means any employee of the Company or of one of the Company's Subsidiaries.  "Employment" means the employment of an Employee by the Company or one of its Subsidiaries.  Directors who are not otherwise employed by the Company shall not be considered Employees under this Plan.

	
(l)

	
"Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, or any successor Act thereto.

 

	
(m)

	
"Exercise Price" means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.

	
(n)

	
"Fair Market Value" means the closing price on the NYSE for a Share on the relevant date, or if such date was not a trading day, the next preceding trading date, all as determined by the Company.  A trading day is any day that the Shares are traded on the NYSE.  In lieu of the foregoing, the Committee may, from time to time, select any other index or measurement to determine the Fair Market Value of Shares under the Plan, including but not limited to an average determined over a period of trading days.

	
(o)

	
"Insider" means an Employee who is, on the relevant date, an officer, director, or ten percent (10%) beneficial owner of the Company, as those terms are defined under Section 16 of the Exchange Act.

	
(p)

	
"NYSE" or "New York Stock Exchange."  If the New York Stock Exchange is no longer the principal exchange on which the stock is listed, then NYSE shall refer to such principal exchange unless otherwise provided by the Disinterested Committee.

	
(q)

	
"Officer Level Employee" means a Participant who is an officer level Employee for compensation purposes as indicated on the records of AT&T.  References to records of AT&T shall include the records of its Subsidiaries.

	
(r)

	
"Option" means an option to purchase Shares from AT&T.

	
(s)

	
"Participant" means an Employee or former Employee who holds an outstanding Award granted under the Plan.

	
(t)

	
"Performance Unit" and "Performance Share" each mean an Award granted to an Employee pursuant to Article 8 herein.

	
(u)

	
"Retirement" or to "Retire" means the Participant's Termination of Employment for any reason other than death, Disability, or for Cause, on or after the earlier of the following dates, or as otherwise provided by the Committee: (1) for Officer Level Employees, the date the Participant is at least age fifty-five (55) and has completed a 5 year Term of Employment; provided, however, that individuals who are designated as an Officer on or after October 1, 2015, must have completed a 10-year Term of Employment; or (2) the date the Participant has attained one of the following combinations of age and service, except as otherwise indicated below:

	
Term of Employment

	
Age

	
10 years or more

	
65 or older

	
20 years or more

	
55 or older

	
25 years or more

	
50 or older

	
30 years or more

	
Any age

 

For purposes of this Plan only, Term of Employment shall have the same meaning as in the AT&T Pension Benefit Plan – Nonbargained Program ("Pension Plan"), as that may be amended from time to time, except that service with a Participant's employer shall be counted as though the employer were a "Participating Company" under the Pension Plan and the Employee was a participant in the Pension Plan.

	
(v)

	
"Senior Manager" means a Participant who is a senior manager for compensation purposes as indicated on the records of AT&T.

		(w)	"Severance Termination of Employment" means a Termination of Employment where the Participant receives a cash severance payment under a severance plan of the Participant's employer or pursuant to an individually negotiated severance agreement.

		(x)	"Shares" or "Stock" means the shares of common stock of the Company.

		(y)	"Subsidiary" means any corporation, partnership, venture or other entity in which AT&T holds, directly or indirectly, a fifty percent (50%) or greater ownership interest.

		(z)	"Surplus Termination of Employment" means a Termination of Employment as a result of force surplus, technological, operational, organizational and/or structural changes affecting the relevant employer without an offer for comparable employment, or an Employment Termination that occurs as a result of declining a Company initiated or offered job relocation to a work location that is more than fifty (50) miles from the employee's work location and that increases the employee's work commute.

		(aa)	"Termination of Employment" or a similar reference means the event where the Employee is no longer an Employee of the Company or of any Subsidiary, including but not limited to where the employing company ceases to be a Subsidiary.  With respect to any Award that provides "nonqualified deferred compensation" within the meaning of Section 409A of the Code, "Termination of Employment" shall mean a "separation from service" as defined under Section 409A of the Code.

Article 3.        Administration.

	
3.01

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

	
(a)

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

 

	
(b)

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

	
(c)

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

	
3.02

	
Authority of the Committee.  The Committee shall have complete control over the administration of the Plan and shall have the authority in its sole discretion to exercise all of the powers granted to it under the Plan, which shall include but not be limited to the authority to:

	
(a)

	
construe, interpret and implement the Plan, grant terms and grant notices, and all Award Agreements;

	
(b)

	
prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations;

	
(c)

	
make all determinations necessary or advisable in administering the Plan or any Award thereunder;

	
(d)

	
correct any defect, supply any omission and reconcile any inconsistency in the Plan; and

	
(e)

	
with respect to Awards:

	
(i)

	
grant Awards,

	
(ii)

	
determine who shall receive Awards,

	
(iii)

	
determine when Awards shall be granted

 

(iv) determine the terms and conditions of Awards, including, but not limited to, conditioning the exercise, vesting, payout or other terms or conditions of an Award on the achievement of Performance Goals (defined in Article 8), and

	
(v)

	
determine whether and to the extent the terms and conditions of Awards have been achieved or satisfied.

	
3.03

	
No Award may be made under the Plan after April 30, 2026.

	
3.04

	
References to determinations or other actions by AT&T or the Company, herein, shall mean actions authorized by the Committee, the Chairman of the Board of AT&T, the Senior Executive Vice President of AT&T in charge of Human Resources or their respective successors or duly authorized delegates, in each case in the discretion of such person, provided, however, only the Disinterested Committee may take action with respect to Insiders with regard to granting or determining the terms of Awards or other matters that would require the Disinterested Committee to act in order to comply with Rule 16b-3 promulgated under the Exchange Act.

	
3.05

	
All determinations and decisions made by AT&T pursuant to the provisions of the Plan and all related orders or resolutions of the Board shall be final, conclusive, and binding on all persons, including but not limited to the Company, its stockholders, Employees, Participants, and their estates and beneficiaries.

Article 4.        Shares Subject to the Plan.

	
4.01

	
Number of Shares.  Subject to adjustment as provided in Section 4.03 herein, the number of Shares available for issuance under the Plan shall not exceed ninety (90) million Shares.  The Shares granted under this Plan may be either authorized but unissued or reacquired Shares.  The Disinterested Committee shall have full discretion to determine the manner in which Shares available for grant are counted in this Plan.

	
4.02

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

	
(a)

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

	
(b)

	
Shares shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award that is settled in cash, other than an Option.

 

	
(c)

	
When an Option is exercised (including but not limited to a Stock-Settled exercise), the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the Option is exercised.

	
4.03

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

Article 5.        Eligibility and Participation.

	
5.01

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

	
5.02

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

Article 6.        Stock Options.

	
6.01

	
Grant of Options.  Subject to the terms and provisions of the Plan, Options may be granted to eligible Employees at any time and from time to time, and under such terms and conditions, as shall be determined by the Committee.  In addition, the Committee may, from time to time, provide for the payment of dividend equivalents on Options, prospectively and/or retroactively, on such terms and conditions as the Committee may require.  The Committee shall have discretion in determining the number of Shares subject to Options granted to each Employee; provided, however, that no single Employee may receive Options under this Plan for more than one percent (1%) of the Shares approved for issuance under this Plan during any calendar year.  The Committee may not grant Incentive Stock Options, as described in Section 422 of the Code, under this Plan.

	
6.02

	
Form of Issuance.  The Committee may require, as a condition to receiving an Option Award, that the Participant enter into an Option Award Agreement, setting forth the terms and conditions of the Award.  In lieu of an Option Award Agreement, the Committee may provide the terms and conditions of an Option Award in a notice to the Participant, in the resolution approving the Award, or in such other manner as it deems appropriate.  Such terms and conditions shall include the Exercise Price, the duration of the Option, the number of Shares to which an Option pertains (unless otherwise provided by the Committee, each Option may be exercised to purchase one Share), and such other provisions as the Committee shall determine.

 

	
6.03

	
Exercise Price.  Unless a greater Exercise Price is determined by the Committee, the Exercise Price for each Option Awarded under this Plan shall be equal to one hundred percent (100%) of the Fair Market Value of a Share on the date the Option is granted.  Subject to adjustment as provided in Section 4.03 herein or as otherwise provided herein, the terms of an Option may not be amended to reduce the exercise price nor may Options be cancelled or exchanged for cash, other awards or Options with an exercise price that is less than the exercise price of the original Options.

	
6.04

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

	
6.05

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

	
6.06

	
Exercise of Options.

	
(a)

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

 

	
(b)

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

	
6.07

	
Payment of the Exercise Price.

	
(a)

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

	
(b)

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

	
(i)

	
Payment may be made in cash.

	
(ii)

	
An Option may be "stock settled," which shall mean upon exercise of an Option, the Company shall deliver that number of shares of Stock found by taking the difference between (A) the Fair Market Value of the Stock as of the first day that the Stock was traded on the NYSE immediately preceding the exercise date, multiplied by the number of Options being exercised and (B) the total Exercise Price of the Options being exercised, and dividing such difference by the Fair Market Value of the Stock as of the first day that the Stock was traded on the NYSE immediately preceding the exercise date.

	
(iii)

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

 

	
6.08

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

	
(a)

	
Termination by Death or Disability.  In the event of the Participant's Termination of Employment by reason of death or Disability, all outstanding Options granted to that Participant shall immediately vest as of the date of Termination of Employment and may be exercised, if at all, no more than five (5) years from the date of the Termination of Employment, unless the Options, by their terms, expire earlier.

	
(b)

	
Termination for Cause.  In the event of the Participant's Termination of Employment for Cause, then the Committee may, in its sole discretion, forfeit all outstanding Options held by the Participant to the Company and no additional exercise period shall be allowed, regardless of the vested status of the Options.

	
(c)

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

	
(i)

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

	
(ii)

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

	
(iii)

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

	
(d)

	
Options not Vested at Termination.  Except as provided in paragraphs (a) and (c)(i), above, all Options held by the Participant which are not vested on or before the effective date of Termination of Employment shall immediately be forfeited to the Company (and the Shares subject to such forfeited Options shall once again become available for issuance under the Plan).

 

	
(e)

	
Other Terms and Conditions.  Notwithstanding the foregoing, the Committee may, in its sole discretion, establish different, or waive, terms and conditions pertaining to the effect of Termination of Employment on Options, whether or not the Options are outstanding, but no such modification shall shorten the terms of Options issued prior to such modification or otherwise be materially adverse to the Participant.

	
6.09

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

	
(a)

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

	
(b)

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

Article 7.        Restricted Stock.

	
7.01

	
Grant of Restricted Stock.  Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to eligible Employees in such amounts and upon such terms and conditions as the Committee shall determine.  In addition to any other terms and conditions imposed by the Committee, vesting of Restricted Stock may be conditioned upon the achievement of Performance Goals in the same manner as provided in Section 8.04, herein, with respect to Performance Shares.  No Employee may be awarded, in any calendar year, a number of Shares in the form of Restricted Stock (or Restricted Stock Units) exceeding one percent (1%) of the Shares approved for issuance under this Plan.

	
7.02

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

 

	
7.03

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

	
7.04

	
Restrictions.

	
(a)

	
The Restricted Stock shall be subject to such vesting terms, including the achievement of Performance Goals (as described in Section 8.04), as may be determined by the Committee.  Unless otherwise provided by the Committee, to the extent Restricted Stock is subject to any condition to vesting, if such condition or conditions are not satisfied by the time the period for achieving such condition has expired, such Restricted Stock shall be forfeited.  The Committee may impose such other conditions and/or restrictions on any Shares of Restricted Stock granted pursuant to the Plan as it may deem advisable including but not limited to a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock and/or restrictions under applicable Federal or state securities laws; and may legend the certificates representing Restricted Stock to give appropriate notice of such restrictions.  The Committee may also grant Restricted Stock without any terms or conditions in the form of vested Stock Awards.

	
(b)

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

	
7.05

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

	
7.06

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

 

	
7.07

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

	
7.08

	
Termination of Employment for Other Reasons.  Unless otherwise provided by the Committee, in the event of the Participant's Termination of Employment for any reason other than due to Death, Disability, or Surplus Termination of Employment, all Shares of Restricted Stock held by the Participant which are not vested as of the effective date of Termination of Employment immediately shall be forfeited and returned to the Company.

	
7.09

	
Restricted Stock Units.

(a) In lieu of or in addition to Restricted Stock, the Committee may grant Restricted Stock Units under such terms and conditions as shall be determined by the Committee.  Restricted Stock Units shall be subject to the same terms and conditions under this Plan as Restricted Stock except as otherwise provided in this section 7.09 or as otherwise provided by the Committee.  Except as otherwise provided by the Committee, the award shall be settled and pay out promptly upon vesting (to the extent permitted by Section 409A of the Code), and the Participant holding such Restricted Stock Units shall receive, as determined by the Committee, Shares (or cash equal to the Fair Market Value of the number of Shares as of the date the award becomes payable) equal to the number of such Restricted Stock Units. Restricted Stock Units shall not be transferable, shall have no voting rights, and shall not receive dividends, but shall, unless otherwise provided by the Committee, receive dividend equivalents at the time and at the same rate as dividends are paid on Shares with the same record and pay dates.

(b) Except as otherwise provided by the Committee, upon a Participant's Termination of Employment due to Death or Disability or upon becoming or being Retirement eligible, his or her Restricted Stock Units will vest, and in the case of Death, will pay out promptly, and in other cases, will pay out at the scheduled distribution date.  If the Participant dies after Termination of Employment, vested Restricted Stock Units will be promptly paid out.

	
7.10

	
Surplus Termination of Employment. Except as otherwise provided by the Committee, in the event of a Surplus Termination of Employment that occurs prior to the vesting date of a grant of Restricted Stock or Restricted Stock Units, the Participant shall receive a pro-rata distribution as follows: the number of the Participant's unvested Restricted Stock or Restricted Stock Units shall be prorated by multiplying the number of unvested Restricted Stock or Restricted Stock Units by the number of months in the restriction period during which the Participant worked at least one day divided by the total number of months in the restriction period, and such prorated amount shall be vested but shall not be payable until the scheduled distribution date, or as otherwise provided in the Plan.

 

Article 8.        Performance Units and Performance Shares.

	
8.01

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

	
8.02

	
Value of Performance Shares and Units.

	
(a)

	
A Performance Share is equivalent in value to a Share.  In any calendar year, no individual may be awarded Performance Shares having a potential payout of Shares exceeding one percent (1%) of the Shares approved for issuance under this Plan.

	
(b)

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

	
8.03

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

	
8.04

	
Performance Goals.

	
(a)

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

 

	
(b)

	
In establishing Performance Goals, Committee is authorized to use, in its sole discretion, any of the following criteria or any combination thereof, including but not limited to the offset against each other of any combination of the following criteria:

	
(i)

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

	
(ii)

	
Service performance of the Company (on a consolidated basis), of one or more of its Subsidiaries, and/or of a division of any of the foregoing.  Such service performance may be based upon measured customer perceptions of service quality (which may include measurements of the customer's likelihood to recommend the Company its products or services, among other things), employee satisfaction, employee retention, product development, completion of a joint venture or other corporate transaction, completion of an identified special project, and effectiveness of management.

 

	
(iii)

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

	
(iv)

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

	
(c)

	
Exclusions and Adjustments to Performance Goals.

	
(i)

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

Categories:

(1)  changes in accounting principles;

(2)  changes in Federal tax law;

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

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

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

(6)  non-cash accounting write-downs of goodwill, other intangible assets, and fixed assets.

	
(ii)

	
In addition, where matters in a specific category have a collective net impact (whether positive or negative) on net income, after taxes and available and collectible insurance, that exceed $200 million but not $500 million in a calendar year, then such matters (as well as any related effects on cash flow, if applicable) shall also be excluded in determining the achievement of the relevant Performance Goals but only if the combined net effect of matters in all such categories (exceeding $200 million but not $500 million) exceeds $500 million.

	
(iii)

	
Gains and losses related to the assets and liabilities from pension plans and other post-retirement benefit plans (and any associated tax effects) shall be disregarded in determining whether or the extent to which a Performance Goal has been met.

 

	
(iv)

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

	
8.05

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

	
8.06

	
Form and Timing of Payment of Performance Units and Performance Shares.

	
(a)

	
As soon as practicable after the applicable Performance Period has ended and all other conditions (other than Committee actions) to conversion and distribution of a Performance Share and/or Performance Unit Award have been satisfied (or, if applicable, at such other time determined by the Committee at or before the establishment of the Performance Goal), the Committee shall determine whether and the extent to which the Performance Goals were met for the applicable Performance Units and Performance Shares.  If Performance Goals have been met, then the number of Performance Units and Performance Shares to be converted into Stock and/or cash and distributed to the Participants shall be determined in accordance with the Performance Goals for such Awards, subject to any limits imposed by the Committee.

	
(b)

	
Payment of Performance Units and Performance Shares shall be made in a single lump sum, as soon as reasonably administratively possible following the determination of the number of Shares or amount of cash to which the Participant is entitled but not later than the 15th day of the third month following the end of the applicable Performance Period.

	
(c)

	
Performance Units will be distributed to Participants in the form of cash.  Unless otherwise provided by the Committee, Performance Shares will be distributed to Participants in the form of fifty percent (50%) Stock and fifty percent (50%) Cash.

 

	
(d)

	
At any time prior to the distribution of the Performance Shares and/or Performance Units, unless otherwise provided by the Committee or prohibited by this Plan (such as in the case of a Change in Control), the Committee shall have the authority to reduce or eliminate the number of Performance Units or Performance Shares to be converted and distributed, or to cancel any part or all of a grant or award of Performance Units or Performance Shares, or to mandate the form in which the Award shall be paid (i.e., in cash, in Stock or both, in any proportions determined by the Committee).

	
(e)

	
Notwithstanding anything to the contrary in this Plan, after a Change in Control, the payout of Performance Units and Performance Shares shall be determined exclusively by the attainment of the Performance Goals in effect prior to the Change in Control, and such Performance Goals may not be modified after such Change in Control.  In addition, after a Change in Control, other than an adjustment to the awards based on the extent to which the Performance Goals were achieved, AT&T shall not reduce or eliminate the number of Performance Units or Performance Shares or cancel any part or all of a grant or award of Performance Units or Performance Shares.

	
(f)

	
Unless otherwise provided by the Committee, any election to take a greater amount of cash or Stock with respect to Performance Shares must be made in the calendar year prior to the calendar year in which the Performance Shares are distributed.

	
(g)

	
For the purpose of converting Performance Shares into cash and distributing the same to the holders thereof (or for determining the amount of cash to be deferred), the value of a Performance Share shall be the Fair Market Value of a Share on the date the Committee authorizes the payout of Awards.  Performance Shares to be distributed in the form of Stock will be converted at the rate of one (1) Share per Performance Share.

	
8.07

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

 

	
8.08

	
Retirement, Surplus Termination, Severance Termination, or Other Termination.  Unless the Committee determines otherwise at any time, in the event of the Participant's Termination of Employment during the Performance Period while Retirement eligible, in the event of a Surplus Termination of Employment, Severance Termination of Employment, and in each case, not due to death or Disability, then upon such Termination, the amount of the Participant's Performance Units and number of Performance Shares shall be adjusted; the revised Awards shall be determined by multiplying the amount of the Performance Units and the number of Performance Shares, as applicable, by the number of months the Participant worked at least one day during the respective Performance Period divided by the number of months in the Performance Period, to be paid, if at all, at the same time and under the same terms that such outstanding Performance Units or Performance Shares would otherwise be paid; provided, however, if the Termination of Employment occurs during the Performance Period and is for a reason other than Death, Disability, Surplus Termination of Employment, or Severance Termination of Employment and while not Retirement eligible, then the related Award shall be cancelled upon such Termination.

	
8.09

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

Article 9.        Beneficiary Designation.

	
9.01

	
In the event of the death of a Participant, distributions or Awards under this Plan, except for Restricted Stock, shall pass in accordance with the AT&T Rules for Employee Beneficiary Designations, as the same may be amended from time to time.  A Participant's most recent Beneficiary Designation that is applicable to awards under the 1996 Stock and Incentive Plan, the 2001 Incentive Plan, the 2006 Incentive Plan, or the 2011 Incentive Plan will also apply to distributions or awards under this Plan, except for Restricted Stock, unless and until the Participant provides to the contrary in accordance with the procedures set forth in such Rules.

Article 10.      Employee Matters.

	
10.01

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

	
10.02

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

 

	
10.03

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

	
(a)

	
Each Award under the Plan is intended to closely align the Participant's long-term interests with those of the Company and its shareholders, and the conditions set forth in subsections (b) or (d) hereof (collectively, the "Loyalty Conditions") are intended to protect the Company's critical need for each Participant's loyalty to the Company and its shareholders.  If any Participant does not comply with a Loyalty Condition, either during employment or within the periods described below following Termination of Employment for any reason, then the Participant is acting contrary to the long-term interests of the Company, and there will be a failure of the consideration on which the Participant received any Award or Awards pursuant to the Plan.  Accordingly, unless otherwise provided in the Award, as a condition of such Award, the Participant is deemed to agree that he shall not, without obtaining the written consent of AT&T in advance, violate the Loyalty Provisions of this Section 10.3.  Unless otherwise expressly provided in an Award Agreement, if the Participant violates a Loyalty Condition, then the Company may terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards ("Award Termination"), rescind any exercise, payment or delivery pursuant to any Award or Awards ("Rescission"), or recapture any cash or Shares (whether restricted or unrestricted) issued pursuant to any Award or Awards, or proceeds from the Participant's sale of such Shares ("Recapture"). Notwithstanding any provision to the contrary, nothing in this Plan shall be interpreted to prohibit, limit or interfere with a Participant's right to report possible violations of federal, state or local law or regulation to any governmental or law enforcement agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Federal Communications Commission or Congress, or to make other disclosures that are protected under the whistleblower or other provision of federal, state or local law or regulation. Similarly, a Participant may report such possible violations to anyone in his or her chain of command, the AT&T Legal Department, AT&T Asset Protection, or any other AT&T group responsible for compliance with laws or AT&T policy.

	
(b)

	
During the Participant's employment with the Company and any of its Subsidiaries and for a period of two years after a Termination of Employment for any reason, a Participant shall not, without the Company's prior written authorization, (i) disclose to anyone outside the Company or use, other than in the Company's business, any Confidential Information, or (ii) disclose any trade secrets of the Company, as that term is defined under Applicable Law, for as long as such information is not generally known to the Company's competitors through no fault or negligence of the Participant.

 

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

	
(c)

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

 

	
(d)

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

	
(i)

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

	
(ii)

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

	
(iii)

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

	
(iv)

	
committed any breach of Participant's fiduciary duty or the duty of loyalty, as determined by Applicable Law,

then the Committee may, in its sole and absolute discretion, impose an Award Termination, Rescission, and/or Recapture with respect to any or all of the Participant's Awards, including any Shares or cash associated therewith, or any proceeds thereof.  For purposes of this Agreement, the term "Restricted Business" means the business of providing communications or connectivity services, including both wireless and wire-lined telephone, messaging, Internet, data, and related services; the term "Restricted Territory" shall mean the state in which the Participant maintained his or her principal office with the Company on the date the Award was granted; and the term "Contact" means interaction between the Participant and the nonclerical employee during performance of Participant's job responsibilities on behalf of the Company.

	
(e)

	
Within ten days after receiving notice from the Company of any such activity described in subsection (d) above, the Participant shall deliver to the Company the cash or Shares acquired pursuant to any and all Awards, or, if Participant has sold the Shares, the gain realized, or payment received as a result of the rescinded exercise, payment, or delivery; provided, that if the Participant returns Shares that the Participant purchased pursuant to the exercise of an Option (or the gains realized from the sale of such Shares), the Company shall promptly refund the exercise price, without earnings or interest, that the Participant paid for the Shares.  Any payment by the Participant to the Company pursuant to this Section shall be made either in cash or by returning to the Company the number of Shares that the Participant received in connection with the rescinded exercise, payment, or delivery.  It shall not be a basis for Award Termination, Rescission or Recapture if, after a Termination of Employment, the Participant purchases, as an investment or otherwise, stock or other securities of an organization engaged in the Restricted Business, so long as (i) such stock or other securities are listed upon a recognized securities exchange or traded over the counter, and (ii) such investment does not represent more than a ten percent (10%) equity interest in the organization or business.

 

	
(f)

	
Notwithstanding the foregoing provisions of this Section, the Company has sole and absolute discretion not to require Award Termination, Rescission and/or Recapture, and its determination not to require Award Termination, Rescission and/or Recapture with respect to any particular act by a particular Participant or Award shall not in any way reduce or eliminate the Company's authority to require Award Termination, Rescission and/or Recapture with respect to any other act or Participant or Award.  Nothing in this Section shall be construed to impose obligations on the Participant to refrain from engaging in lawful competition with the Company after the Participant's Termination of Employment that does not violate subsections (b) or (d) of this Section, other than any obligations that are part of any separate agreement between the Company and the Participant or that arise under Applicable Law.

	
(g)

	
All administrative and discretionary authority given to the Company under this Section shall be exercised by the most senior human resources executive of the Company or such other person or committee (including without limitation the Committee) as the Committee may designate from time to time.

	
(h)

	
If any provision within this Section is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by Applicable Law, and shall automatically be deemed amended in a manner consistent with its objectives and any limitations required under Applicable Law.

	
10.04

	
Reimbursement of Company for Unearned or Ill-gotten Gains.  The Participant shall repay to the Company any amount received under any Award, and the Company may cancel or forfeit any unpaid or unvested Award, in each case to the extent required under any policy adopted at any time by the Company pursuant to any applicable listing standards established under Section 10D of the Securities Exchange Act of 1934. This section shall not limit the Company's right to revoke or cancel an award or take other action against a recipient of an award for any other reason, including but not limited to misconduct.

 

Article 11.      Amendment and Termination of Plan or Awards.

	
11.01

	
Amendment and Termination.  At any time and from time to time, the Board or the Disinterested Committee may amend or terminate the Plan. The Board, the Disinterested Committee, or the Non-Insider Committee (subject to Section 3.01) may amend an Award in whole or in part. Notwithstanding the foregoing, no termination, amendment, or modification of the Plan or any Award (other than Performance Shares or Performance Units) that adversely affects in any material way any Award previously granted under the Plan shall be made without the written consent of the Participant holding such Award; provided, however, that any such modification made for the purpose of complying with Section 409A of the Code or due to changes in applicable law may be made by the Company without the consent of any Participant.

	
11.02

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

Article 12.      Withholding.

	
12.01

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

	
12.02

	
Share Withholding.

	
(a)

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

 

	
(b)

	
Any fractional Share of Stock payable to a Participant shall be withheld as additional Federal withholding, or, at the option of the Company, paid in cash to the Participant.

	
(c)

	
Unless otherwise determined by the Committee, when the method of payment for the Exercise Price is from the sale through an agent appointed by the Company of the Stock acquired through the Option exercise, then the tax withholding shall be satisfied out of the proceeds.  For administrative purposes in determining the amount of taxes due, the sale price of such Stock shall be deemed to be the Fair Market Value of the Stock.

	
(d)

	
If permitted by the Committee, prior to the end of any Performance Period a Participant may elect to have a greater amount of Stock withheld from the distribution of Performance Shares to pay withholding taxes; provided, however, the Committee may prohibit or limit any individual election or all such elections at any time.

	
(e)

	
Alternatively, or in combination with the foregoing, the Committee may require Withholding Taxes to be paid in cash by the Participant or by the sale of a portion of the Stock being distributed in connection with an Award, or by a combination thereof.

Article 13.      Successors.

	
13.01

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

Article 14.      Legal Construction.

	
14.01

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

	
14.02

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

 

	
14.03

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

	
14.04

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

	
14.05

	
Elections and Notices.

	
(a)

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

	
(b)

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

	
(c)

	
Notice to the Participant shall be deemed given when mailed (or sent by telecopy) to the Participant's work or home address as shown on the records of AT&T or, at the option of AT&T, to the Participant's e-mail address as shown on the records of AT&T.

	
(d)

	
It is the Participant's responsibility to ensure that the Participant's addresses are kept up to date on the records of AT&T.  In the case of notices affecting multiple Participants, the notices may be given by general distribution at the Participants' work locations.

	
14.06

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

	
14.07

	
Venue.  Because awards under the Plan are granted in Texas, records relating to the Plan and awards thereunder are located in Texas, and the Plan and awards thereunder are administered in Texas, except as otherwise agreed by the Participant and the Company in a Mandatory Arbitration Agreement, the Company and the Participant to whom an award under this Plan is granted, for themselves and their successors and assigns, irrevocably submit to the exclusive and sole jurisdiction and venue of the state or federal courts of Texas with respect to any and all disputes arising out of or relating to this Plan, the subject matter of this Plan or any awards under this Plan, including but not limited to any disputes arising out of or relating to the interpretation and enforceability of any awards or the terms and conditions of this Plan.  To achieve certainty regarding the appropriate forum in which to prosecute and defend actions arising out of or relating to this Plan, and to ensure consistency in application and interpretation of the Governing Law to the Plan, except as otherwise agreed by the Participant and the Company in a Mandatory Arbitration Agreement, the parties agree that:

 

	
(a)

	
sole and exclusive appropriate venue for any such action shall be an appropriate federal or state court in Dallas County, Texas, and no other,

	
(b)

	
all claims with respect to any such action shall be heard and determined exclusively in such Texas court, and no other,

	
(c)

	
such Texas court shall have sole and exclusive jurisdiction over the person of such parties and over the subject matter of any dispute relating hereto, and

	
(d)

	
that the parties waive any and all objections and defenses to bringing any such action before such Texas court, including but not limited to those relating to lack of personal jurisdiction, improper venue or forum non conveniens.

	
14.08

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

Execution Version   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version   AMENDED AND RESTATED EMPLOYMENT AGREEMENT   This Amended Employment Agreement (the “Agreement”) is entered into effective as of   March 19, 2016 (the “Amended Effective Date”), by and between Eugene A. Hall, an individual   (“Executive”) and Gartner, Inc., a Delaware corporation (the “Company”) and amends and restates   the employment agreement dated April 13, 2011 (the “Original Effective Date”), between the   Company and Executive.   1. Employment.  Executive will serve as Chief Executive Officer of the Company for   the Employment Term specified in Section 3 below.  Executive will report solely to the Board of   Directors (the “Board”) and will render such services consistent with the foregoing role as the   Board may from time to time direct.  Executive’s office will be located at the executive offices of   the Company in Stamford, Connecticut.  Executive may (i) serve on corporate, civic or charitable   boards or committees and (ii) deliver lectures, fulfill speaking engagements or teach at educational   institutions, to the extent that such activities are (x) consistent with the Company’s policies (as   applicable) or (y) disclosed to the Board and the Board determines in good faith that such activities   do not interfere with the performance of Executive’s responsibilities hereunder.   2. Board of Directors.  The Executive is currently a member of the Board, and during   the Employment Term, the Company will, in good faith, include Executive on the Company’s slate   of nominees to be elected to the Board at appropriate meetings of stockholders of the Company.    Upon termination of the Employment Term for any reason, Executive will promptly resign as a   director of the Company if the Board so requests.   3. Term.  The employment of Executive pursuant to this Agreement will continue   through December 31, 2021 (the “Employment Term”), unless extended or earlier terminated as   provided in this Agreement.  The Employment Term automatically will be extended for additional   one-year periods commencing on January 1, 2022 and continuing each year thereafter, unless   either Executive or the Company gives the other written notice, in accordance with Section 14(a)   and at least sixty (60) days prior to the then scheduled expiration of the Employment Term, of such   party’s intention not to extend the Employment Term.  Upon termination of the Employment Term   for any reason, Executive will promptly resign from all positions he holds with the Company if   the Board so requests.   4. Salary.  As compensation for the services rendered by Executive under this   Agreement, the Company will pay to Executive an annual base salary (“Base Salary”) equal to   $908,197, payable to Executive on a semi-monthly basis in accordance with the Company’s   payroll practices as in effect from time to time during the Employment Term.  The Base Salary   will be subject to adjustment by the Board or the Compensation Committee of the Board (the   “Committee”), in the sole discretion of the Board or such Committee, on an annual basis; provided,   however, that Executive’s Base Salary may not be decreased other than pursuant to a reduction   consistent with a general reduction of pay across the executive staff as a group, as an economic or   strategic measure due to poor financial performance by the Company.   5. Bonus.  In addition to Base Salary, Executive will be entitled to participate in the   Company’s executive bonus program.  Executive’s annual target bonus (the “Target Bonus”) will   be 105% of Base Salary, and will be payable based on achievement of specified Company and     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 2   individual objectives.  The actual bonus paid may be higher or lower than the Target Bonus for   over-or under-achievement of Company and individual objectives, as determined by the   Committee; provided, however, that the maximum actual bonus will not exceed 210% of Base   Salary.  Bonus amounts will be subject to annual adjustment by the Board or the Committee, in   the sole discretion of the Board or the Committee; provided, however, that Executive’s Target   Bonus may not be decreased without Executive’s consent other than pursuant to a reduction   consistent with a general reduction of pay across the executive staff as a group, as an economic or   strategic measure due to poor financial performance of the Company.  To receive a bonus,   Executive must be an employee at the time bonuses are paid to executives.   6. Executive Benefits.   (a) Equity Grants.  No later than ten (10) days following the first market trading   day of the first open trading window for Company executives under the Company’s insider trading   policy on or after January 1 of each year during the Employment Term (commencing in 2016),   Executive will be granted equity-based incentive awards settled in Common Stock of the Company   (collectively, the “Incentive Awards”), provided that Executive must be an employee at the time   Incentive Awards are scheduled to be granted.  The Incentive Awards granted in 2016 and later   years will have an aggregate value on the date of grant (assuming the applicable performance goals   will be satisfied at target levels and using the methods described in the following sentence) that is   no less than the result of $9,874,375 minus the sum of the Base Salary and Target Bonus for the   year of grant.  The value of the Incentive Awards on the date of grant will be determined by using   the Black-Scholes-Merton valuation method for stock appreciation rights and the fair market value   of the Company’s Common Stock for restricted stock units, or such other valuation method as the   Committee may use to value equity-based incentive awards. All Incentive Awards will be 100%   unvested on the date of grant.  Executive’s entitlement to be granted the Incentive Awards for any   given year under this Agreement shall accrue as of January 1 of such year.  Vesting of such   Incentive Awards shall be subject to Section 6(a)(iii).  The terms and conditions of the Incentive   Awards (including, but not limited to, the number of restricted stock units or stock appreciation   rights to be granted and the applicable performance goals) shall be determined by the Committee,   subject to and consistent with the terms of this Agreement and the Company’s 2014 Long Term   Incentive Plan (the “Plan”).  Each year’s Incentive Awards will be divided among:   (i) Restricted Stock Units.  Each year during the Employment Term, all   or a portion of the aggregate value of the Incentive Awards may, as determined by the Committee,   be in the form of restricted stock units, with a par value purchase price.  During each year of the   Employment Term, the number of restricted stock units initially granted to Executive will be based   upon an assumption that specified Company objectives will be achieved during such year.  The   restricted stock units granted to Executive each year may be adjusted so as to be higher or lower   than the number of restricted stock units initially granted in such year by reason of over-or under-   achievement during such year of such specified Company objectives, as determined by the   Committee.  Upon the vesting of a restricted stock unit, and in the sole discretion of the Committee,   the Company may pay earned restricted stock units in cash, shares of Common Stock of the   Company, or in a combination thereof.  Except as otherwise set forth in this Agreement, if   Executive’s employment with the Company terminates for any reason, any portion of the restricted   stock units still subject to restrictions will be forfeited to the Company.     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 3   (ii) Stock Appreciation Rights.  Each year during the Employment   Term, all or a portion of the value of the Incentive Awards may, as determined by the Committee,   be in the form of stock appreciation rights, which upon exercise will be settled in shares of   Common Stock of the Company.  Executive will have the right to exercise such stock appreciation   right upon its vesting, and will receive the excess, if any, of the value of a share of Common Stock   of the Company on the date of exercise over the value of such share on the date of grant.   (iii) Vesting of Incentive Awards.  Incentive Awards granted pursuant to   this Agreement will be scheduled to vest in not more than four equal annual installments on   January 1 of each year following the date of grant, subject in each case to Executive’s continued   employment with the Company through the applicable date and subject to achievement of any   performance goals applicable to such Incentive Awards as determined by the Committee.    Notwithstanding the preceding sentence, the Incentive Awards may vest earlier in the event of a   Change in Control or Change in Control Termination as provided in Section 7 below.    (b) Other Employee and Executive Benefits.  Executive will be entitled to   receive all benefits provided to senior executives, executives and employees of the Company   generally from time to time, including medical, dental, life insurance and long-term disability, and   the executive split-dollar life insurance, executive disability plan, and all other benefits under the   Company’s Executive Benefits program, in each case so long as and to the extent the same exist;   provided, that with respect to each such plan Executive is otherwise eligible and insurable in   accordance with the terms of such plans.  Notwithstanding the preceding sentence, Executive’s   right to receive severance payments and benefits will be only as provided in Section 7 hereof.    Furthermore, the Company will provide Executive with an automobile and driver for Executive’s   ground transportation needs during the Employment Term.   (c) Vacation, Sick Leave, Holidays and Sabbatical.  Executive will be entitled   to paid time off (“PTO”), sick leave, holidays and sabbatical in accordance with the policies of the   Company as they exist from time to time.  Executive understands that under the current policy he   is entitled to thirty-five (35) PTO days per calendar year.  PTO not used during any calendar year   will roll over to the following year only to the extent provided under the Company’s PTO policies   as they exist from time to time.   7. Severance Benefits.   (a) At Will Employment.  Executive’s employment will be “at will.”  Either the   Company or Executive may terminate this agreement and Executive’s employment at any time,   with or without Business Reasons, in its or his sole discretion, upon sixty (60) days’ prior written   notice of termination.   (b) Involuntary Termination.  If at any time during the term of this Agreement   (other than within twenty-four (24) months following the occurrence of a Change in Control) the   Company terminates the employment of Executive involuntarily and without Business Reasons or   a Constructive Termination occurs, or if the Company elects not to renew this Agreement upon   the expiration of the Employment Term and Executive within ninety (90) days following the   expiration of the Employment Term terminates his employment, then, subject to Executive signing   and not revoking a general release of claims against the Company and its successors substantially     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 4   in the form attached hereto as Exhibit A within the period required by the release and in no event   later than sixty (60) days following the Termination Date, inclusive of any revocation period set   forth in the release, Executive will be entitled to receive the following:   (i) Base Salary and PTO accrued through the Termination Date plus   continued Base Salary for a period of thirty-six (36) months following the Termination Date.  In   accordance with Section 7(i) below, such payments will commence on the first regular Company   pay day at least six (6) months after the Termination Date or, if later, at least six (6) months after   the date of Executive’s Separation from Service.  This first payment will be a lump sum   representing the continuation of Executive’s Base Salary for the period commencing on the   Termination Date and concluding on such payment date.  Thereafter, the remaining payments of   Base Salary will be payable in accordance with the Company’s regular payroll schedule as in effect   from time to time.   (ii) If the Termination Date occurs during a year in which any Incentive   Awards are due to be granted but remain un-granted, a lump sum cash payment with respect to the   un-granted Incentive Awards pursuant to Section 6(a) above determined by multiplying the   percentage of such un-granted Incentive Awards that would have vested pursuant to Section   7(b)(iv) below by no less than the result of $9,874,375 minus the sum of the Base Salary and   Target Bonus for the year in which the Termination Date occurs.  For purposes of illustration, if   the un-granted Incentive Awards would have vested over a four (4) year vesting schedule, the   percentage described in the preceding sentence will be seventy-five percent (75%).  In accordance   with Section 7(i) below, this payment will be made on the first regular Company pay day at least   six (6) months after the Termination Date or, if later, at least six (6) months after the date of   Executive’s Separation from Service.   (iii) 300% of the average of Executive’s earned annual bonuses for the   three (3) fiscal years immediately preceding the year in which the Termination Date occurs, which,   in accordance with Section 7(i) below, will be payable in a lump sum as soon as practicable   following but in no event later than thirty (30) days later than the six (6) month period commencing   on the Termination Date, or, if later, following the six (6) month period commencing on the date   of Executive’s Separation from Service, plus any earned but unpaid bonus from the prior fiscal   year, which will be paid at the same time as bonuses for such fiscal year are paid to the other   Company executives.   (iv) Thirty-six (36) months’ continued vesting under all Incentive   Awards and any other outstanding stock options and other equity arrangements subject to vesting   and held by Executive (and in this regard, all such stock appreciation rights and other exercisable   rights held by Executive will remain exercisable for thirty (30) days following the last day of the   thirty-six (36) month continued vesting period, subject to the maximum term of the award).    Notwithstanding the foregoing, with respect to each performance-based restricted stock unit award   or other equity compensation award subject to achievement of performance-based criteria (each a   “Performance-Based Equity Award”), Executive will be entitled to thirty-six (36) months’   continued vesting only if and to the extent that the performance-based criteria applicable to the   Performance-Based Equity Award is achieved during the award’s performance period, as   determined by the Compensation Committee in accordance with the terms and conditions of the   2014 Long-Term Incentive Plan (or such other Company stock plan under which the award was     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 5   granted) and the award agreement entered into by and between the Company and Executive.  For   purposes of clarity, the thirty-six (36) months’ continued vesting to which Executive is entitled   will be measured from the Termination Date and not from the date that achievement of the   applicable performance-based criteria is determined.  Notwithstanding anything to the contrary   herein or in any award agreement evidencing the Incentive Awards and any other outstanding stock   options or other equity arrangements, to the extent such awards are considered “deferred   compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as   amended (the “Code”), and the final regulations and any guidance promulgated thereunder   (“Section 409A”) and in accordance with Section 7(i) below, the awards otherwise payable during   the period beginning on the Termination Date and ending on the date that is six (6) months   following the Termination Date or, if later, six (6) months following the date of Executive’s   Separation from Service, instead will be paid on the date six (6) months and one (1) day following   the later of the Termination Date or the date of Executive’s Separation from Service.  Thereafter,   each such award shall be paid in accordance with the vesting schedule applicable to such award.   (v) a taxable monthly payment in an amount equal to the monthly   COBRA premium that Executive would be required to pay to continue the group health coverage   in effect on the date of his termination of employment for Executive, his spouse and any children   (which amount will be based on the premium for the first month of COBRA coverage), which   payments will be made regardless of whether Executive elects COBRA continuation coverage and   will commence six (6) months after the Termination Date or, if later, at least six (6) months after   the date of Executive’s Separation from Service and will end on the earlier of (x) the date upon   which Executive becomes covered under similar plans or (y) the last day of the thirty-sixth (36th)   calendar month following the month in which Executive’s employment terminated.  The first   payment under the preceding sentence will equal the sum of all monthly payments for the period   commencing on the Termination Date and concluding on such payment date.   (vi) no other compensation, severance or other benefits.    Notwithstanding the foregoing, if Executive violates in a material respect the provisions set forth   in Section 12, Executive no longer will be entitled to receive any severance payments and benefits   and Executive’s outstanding Incentive Awards and other stock options and equity arrangements   will expire immediately.   (c) Change in Control.   (i) Benefits.  If during the term of this Agreement a Change in Control   Termination occurs, then Executive will be entitled to receive the following:     (A) Base Salary and PTO accrued though the date of the Change   in Control Termination and, immediately upon the Change in Control Termination, any   earned but unpaid bonus from the fiscal year preceding the Change in Control Termination,    (B) an amount equal to three (3) years of Executive’s Base   Salary as then in effect,      

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 6   (C) an amount equal to three (3) times Executive’s Target Bonus   for the fiscal year in which the Change in Control Termination occurs (or if higher, for the   immediately preceding fiscal year),    (D) a taxable monthly payment in an amount equal to the   monthly COBRA premium that Executive would be required to pay to continue the group   health coverage in effect on the date of his termination of employment for Executive, his   spouse and any children (which amount will be based on the premium for the first month   of COBRA coverage), which payments will be made regardless of whether Executive   elects COBRA continuation coverage and will commence six (6) months after the date of   Change in Control Termination or, if later, at least six (6) months after the date of   Executive’s Separation from Service and will end on the earlier of (x) the date upon which   Executive becomes covered under similar plans or (y) the last day of the thirty-sixth (36th)   calendar month following the month in which Executive’s employment terminated.  The   first payment under the preceding sentence will equal the sum of all monthly payments for   the period commencing on the date of Change in Control Termination and concluding on   such payment date,    (E) except as provided in this Section 7(c), no other   compensation, severance or other benefits.   The payments set forth in clauses (B) and (C) above shall be payable in a lump sum on the   date that is six (6) months following the Termination Date or, if later, six months after the date of   Executive’s Separation from Service.  Additionally, any Incentive Awards due to be granted   pursuant to Section 6(a) that remain ungranted will be granted to Executive prior to consummation   of the Change in Control and upon a Change in Control Termination, as applicable.   (ii) Vesting.  In the event that a Change in Control occurs prior to the   termination of Executive’s employment and prior to the expiration of an Incentive Award or other   equity-based arrangement subject to vesting and held by Executive (collectively with the Incentive   Awards, “Equity Awards”), then, subject to Section 7(c)(iii) below, upon such Change in Control,   such Equity Award will vest in full, all performance goals or other vesting criteria will be deemed   achieved at target levels and, with respect to a stock option or stock appreciation right, be   exercisable as to all of the covered shares, including shares as to which the stock option or stock   appreciation right would not otherwise be exercisable.   Upon the occurrence of a Change of Control Termination, but subject to Section 7(c)(iii)   below, each outstanding Equity Award will vest in full, all performance goals or other vesting   criteria will be deemed achieved at target levels and, with respect to a stock option and stock   appreciation right, be exercisable as to all of the covered shares, including shares as to which the   stock option or stock appreciation right would not otherwise be exercisable.     Payment of Incentive Awards whose payment or settlement is accelerated due to a Change   in Control Termination shall be subject to the six-month delay set forth in Section 7(i) below (to   the extent applicable).   (iii) Limitation on Payments.     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 7   (A) In the event that the severance payments and other benefits   provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute   payments” within the meaning of Section 280G of the Code and (ii) but for this Section   7(c)(iii), would be subject to the excise tax imposed by Section 4999 of the Code (the   “Excise Tax”), then Executive’s severance and other benefits under Section 7 (and with   respect to acceleration of vesting, any other equity-based arrangements) will be either:   (1) delivered in full, or   (2) limited to such minimum extent as will ensure that   no portion of such severance and other benefits will be subject to excise tax under   Section 4999 of the Code,   whichever of the foregoing amounts, taking into account the applicable federal, state and   local income taxes and the Excise Tax imposed by Section 4999, results in the receipt by   Executive on an after-tax basis, of the greatest amount of severance and other benefits,   notwithstanding that all or some portion of such severance and other benefits may be   taxable under Section 4999 of the Code.  If a reduction in severance payments or other   benefits constituting “parachute payments” is necessary so that payments or benefits are   delivered to a lesser extent, reduction will occur in the following order: (1) reduction of the   cash severance payments; (2) cancellation of accelerated vesting of equity-based awards;   and (3) reduction of continued employee benefits.  In the event of a reduction of cash   severance payments or a reduction of continued employee benefits, such reduction shall   occur in reverse chronological order such that the payment or benefit owed on the latest   date following the occurrence of the event triggering the excise tax will be the first payment   to be reduced (with reductions made pro-rata in the event payments are payable at the same   time).  In the event that accelerated vesting of equity based awards is to be cancelled, such   vesting acceleration will be cancelled in the following order: (1) Performance-Based   Equity Awards granted in the year of acceleration of vesting, (2) other Performance-Based   Equity Awards and other equity-based awards, in reverse chronological order of the dates   of grant thereof (with reductions made pro-rata in the event that grants were made at the   same time.   (B) Subject to the provisions of clause F below, all   determinations required to be made under this Section 7(c)(iii), including whether an   Excise Tax is payable by Executive and the amount of such Excise Tax and whether a   reduction in payments or benefits is required, will be made in good faith and using   reasonable actuarial and other assumptions by the Company’s independent accountants   (the “Accounting Firm”).  The Company will direct the Accounting Firm to submit its   determination and detailed supporting calculations to both the Company and Executive   within fifteen (15) calendar days after the date of a Change in Control, within fifteen (15)   calendar days after the date of a Change in Control Termination and any other such time   or times as may be requested by the Company or Executive.  If the Accounting Firm   determines that no Excise Tax is payable by Executive without reduction of payments or   benefits, it will, at the same time as it makes such determination, furnish Executive with   an opinion that he has substantial authority not to report any Excise Tax on his federal,   state, local income or other tax return.  If the Accounting Firm determines that a reduction     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 8   of payments or benefits is required pursuant to Section 7(c)(iii)(A) above, it will, at the   same time as it makes such determination, furnish Executive with an opinion that, taking   into account such reduction, he has substantial authority not to report any Excise Tax on   his federal, state, local income or other tax return. Any determination by the Accounting   Firm as to the amount of any Excise Tax or reduction in payments and benefits will be   binding upon the Company and Executive.   (C) The Company and Executive will each provide the   Accounting Firm access to and copies of any books, records and documents in the   possession of the Company or Executive, as the case may be, reasonably requested by the   Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with   the preparation and issuance of the determination contemplated by clause B above.   (D) In the event that payments and benefits are delivered in full   pursuant to Section 7(c)(iii)(A) above, the federal, state and local income or other tax   returns filed by Executive and the Company will be prepared and filed on a consistent basis   with the determination of the Accounting Firm with respect to the Excise Tax payable by   Executive, if any.   (E) The fees and expenses of the Accounting Firm for its   services in connection with the determinations and calculations contemplated by clauses A   and B above will be borne by the Company.  If such fees and expenses are initially   advanced by Executive, the Company will reimburse Executive the full amount of such   fees and expenses within twenty (20) days after receipt from Executive of a statement   therefore and reasonable evidence of his payment thereof.   (F) If, for any reason, the Accounting Firm, as defined above,   fails to act in the manner contemplated by this Section 7(c) within a reasonable period of   time, the Executive may appoint another nationally recognized independent accounting   firm with the consent of the Company (unless such consent is unreasonably withheld or   delayed), to perform all of such duties of the Accounting Firm that are contemplated by   this Section 7(c), in which event such independent accountants will thereafter be deemed   to be the “Accounting Firm” for purposes of this Section 7(c).   (d) Termination for Disability.  If at any time during the Employment Term   Executive becomes unable to perform his duties as an employee as a result of incapacity, which   gives rise to termination of employment for Disability, then (i) Executive will be entitled to receive   payments and benefits in accordance with the Company’s then applicable plans, policies, and   arrangements; provided, however, that to the extent such payments or benefits are “separation pay”   within the meaning of Section 409A, such payments and benefits will be paid or provided at the   same time and in the same form as similar payments and benefits are provided under Section 7(b)   in connection with Executive’s Constructive Termination or involuntary termination without   Business Reasons; (ii) Executive’s outstanding Incentive Awards and other stock options and   equity arrangements will expire in accordance with the terms of the applicable award agreement(s)   and the Company stock plans under which they were granted; and (iii) with respect to any accrued   but un-granted Incentive Awards pursuant to Section 6(a), Executive will be entitled to receive a   lump sum cash payment equal to the value of the vesting acceleration that Executive would have     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 9   received, in accordance with the disability provisions set forth in the Company’s equity award   policy then in effect had Executive’s employment not been terminated for Disability prior to the   date those awards would have been granted.  The amount payable pursuant to Section 7(d)(iii) will   be determined by multiplying the percentage of vesting acceleration to which Executive would   have been entitled in accordance with the disability provisions set forth in the Company’s equity   award policy then in effect by the result of $9,874,375 minus the sum of the Base Salary and Target   Bonus for the year in which the Termination Date occurs.  This payment will be made on the first   regular Company pay day at least six (6) months after the Termination Date or, if later, at least six   (6) months after the date of Executive’s Separation from Service.   (e) Voluntary Termination, Involuntary Termination for Business Reasons.  If   (i) Executive voluntarily terminates his employment (other than in the case of a Constructive   Termination) or (ii) Executive is terminated involuntarily for Business Reasons, then in any such   event (A) all further vesting of Executive’s Incentive Awards and other equity arrangements will   cease immediately and such awards will expire in accordance with the terms of the applicable   award agreement(s), (B) all payments of compensation by the Company to Executive hereunder   will terminate immediately (except as to amounts already earned), and (C) Executive will not be   entitled to any severance but Executive will be paid all accrued but unpaid PTO, expense   reimbursements and other benefits due to Executive through his termination date under any   Company-provided or paid plans, policies, and arrangements.   (f) Termination Upon Death.  If Executive’s employment is terminated because   of death, then (i) Executive’s representatives will be entitled to receive payments and benefits in   accordance with the Company’s then applicable plans, policies, and arrangements; provided,   however, that to the extent such payments or benefits are “separation pay” within the meaning of   Section 409A, such payments and benefits will be paid or provided at the same time and in the   same form as similar payments and benefits are provided under Section 7(b) in connection with   Executive’s Constructive Termination or involuntary termination without Business Reasons; and   (ii) Executive’s outstanding Incentive Awards and other equity arrangements will expire in   accordance with the terms of the applicable award agreement(s) and the Company stock plans   under which they were granted.   (g) Exclusivity.  The provisions of this Section 7 are intended to be and are   exclusive and in lieu of any other rights or remedies to which Executive or the Company may   otherwise be entitled, either at law, tort or contract, in equity, or under this Agreement, in the event   of any termination of Executive’s employment.  Executive will be entitled to no benefits,   compensation or other payments or rights upon termination of employment other than those   benefits expressly set forth in paragraph (b), (c), (d), (e) or (f) of this Section 7, whichever will be   applicable and those benefits required to be provided by law.   (h) Mitigation.  Amounts provided under this Section 7 will not be reduced by   any future earnings Executive may receive following the termination of his employment with the   Company.   (i) Code Section 409A.     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 10   (i) Six-Month Delay.  Notwithstanding anything to the contrary in this   Agreement, no Deferred Compensation Separation Benefits (as defined below) or other severance   benefits that otherwise are exempt from Section 409A (as defined below) pursuant to Treasury   Regulation Section 1.409A-1(b)(9) will be considered due or payable until Executive has a   Separation from Service.  In addition, as Executive currently is a “specified employee” within the   meaning of Section 409A and the Company anticipates that Executive will continue to be a   specified employee until Executive’s Separation from Service, the severance benefits payable to   Executive under this Agreement that are considered deferred compensation under Section 409A,   if any, and any other severance payments or separation benefits that are considered deferred   compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”)   will, except in the case of death, be delayed for the period beginning on the Termination Date and   ending on the date that is six (6) months following the Termination Date or, if later, six (6) months   following the date of Executive’s Separation from Service.  All subsequent payments, if any, will   be payable in accordance with the payment schedule applicable to each payment or benefit.  Each   payment and benefit payable under this Agreement is intended to constitute a separate payment   under Treasury Regulation Section 1.409A-2(b)(2).  Notwithstanding anything herein to the   contrary, if Executive dies following his Separation from Service but prior to the six (6) month   anniversary of his date of separation, then any payments delayed in accordance with this Section   7(i) or otherwise will be payable in a lump sum (less applicable withholding taxes) to Executive’s   estate as soon as administratively practicable after the date of his death and all other Deferred   Compensation Separation Benefits will be payable in accordance with the payment schedule   applicable to each payment or benefit.   (ii) Amendments to this Agreement to Comply with Section 409A.  It is   the intent of this Agreement to comply with the requirements of Section 409A so that none of the   payments and benefits to be provided hereunder will be subject to the additional tax imposed under   Section 409A, and any ambiguities herein will be interpreted to so comply.  Executive and the   Company agree to work together in good faith to consider amendments to this Agreement and to   take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of   any additional tax or income recognition under Section 409A prior to actual payment to Executive.   8. Definition of Terms.  The following terms referred to in this Agreement will have   the following meanings:   (a) Business Reasons.  “Business Reasons” means (i) gross negligence, willful   misconduct or other willful malfeasance by Executive in the performance of his duties, (ii)   Executive’s conviction of a felony, or other criminal offense involving moral turpitude, or (iii)   Executive’s material breach of this Agreement, including without limitation any repeated breach   of Sections 9 through 12 hereof, provided that, in the case of clauses (i) or (iii) above, the Board   provides written notice of such “Business Reason” to the Executive, specifically identifying the   circumstance(s) which the Board believes constitute such “Business Reason”, and Executive will   have the opportunity to cure such circumstances to the reasonable satisfaction of the Board within   thirty (30) days following the delivery of such notice; provided, further, that at the conclusion of   such thirty (30) day cure period, the final determination of the occurrence of “Business Reasons”   and/or the effectiveness of any such cure, will be made at a meeting of the Board at which   Executive (and, at Executive’s option, his counsel) will have had a right to participate.  For purpose   of this paragraph, no act or failure to act by Executive will be considered “willful” unless done or     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 11   omitted to be done by Executive in bad faith or without reasonable belief that Executive’s action   or omission was in the best interests of the Company or its affiliates.  Any act, or failure to act,   based upon authority given pursuant to a resolution duly adopted by the Board or based upon the   advice of counsel for the Company will be conclusively presumed to be done, or omitted to be   done, by Executive in good faith and in the best interests of the Company.  The Board must notify   Executive of any event constituting Business Reasons within ninety (90) days following any Board   member’s (excluding Executive) actual knowledge of its existence (which period will be extended   during the period of any reasonable investigation conducted in good faith by or on behalf of the   Board) or such event will not constitute Business Reasons under this Agreement.   (b) Disability.  “Disability” will mean that Executive has been unable to   perform his duties as an employee as the result of his incapacity due to physical or mental illness,   and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total   and permanent by a physician selected by the Company with the consent of the Executive or his   representative (unless such consent is unreasonably withheld or delayed).  Termination resulting   from Disability may only be effected after at least sixty (60) days written notice by the Company   of its intention to terminate Executive’s employment.  In the event that Executive resumes the   performance of substantially all of his duties hereunder before the termination of his employment   becomes effective, the notice of intent to terminate automatically will be deemed to have been   revoked.   (c) Termination Date.  “Termination Date” will mean (i) if this Agreement is   terminated on account of death, the date of death; (ii) if this Agreement is terminated for Disability,   the date specified in Section 8(b); (iii) if this Agreement is terminated by the Company, the date   on which indicated in a notice of termination that is given to Executive by the Company in   accordance with Sections 7(a) and 14(a); (iv) if the Agreement is terminated by Executive, the date   indicated in a notice of termination given to the Company by Executive in accordance with   Sections 7(a) and 14(a); or (v) if this Agreement expires by its terms, then the last day of the term   of this Agreement.   (d) Constructive Termination.  A “Constructive Termination” will be deemed   to occur if Executive elects to voluntarily terminate employment within the ninety (90) day period   immediately following any of the following events: (i) Executive’s position changes as a result of   an action by the Company such that (A) Executive will no longer be Chief Executive Officer of   the Company, (B) Executive will have authorities, duties and responsibilities less, in any material   respect, than those typically associated with a chief executive officer of a company of comparable   size, or (C) Executive is required to report to a person or persons other than the entire Board, or a   committee of the Board, or otherwise than substantially in accordance with past practice; provided   that if the Board determines by unanimous vote of all directors (excluding Executive) that it is   required either by law or by rule of any exchange or listing entity whose rules must be complied   with in order for the Company to maintain such listing that Executive not be Chief Executive   Officer, then the involuntary removal of Executive from the position of Chief Executive Officer   will not, in and of itself, constitute a Constructive Termination, (ii) Executive is required to relocate   his place of employment, other than a relocation within fifty (50) miles of the Company’s current   Stamford headquarters, (iii) there is a reduction in Executive’s Base Salary or Target Bonus other   than any such reduction consistent with a general reduction of pay across the executive staff as a   group, as an economic or strategic measure due to poor financial performance by the Company,     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 12   (iv) the Company becomes a subsidiary of another entity other than pursuant to implementation of   a holding company structure in which the Company is the principal subsidiary of the holding   company, or (v) there occurs any other material breach of this Agreement by the Company   (including, without limitation, any breach of Section 14(c), but excluding the termination of   Executive’s service as a director due to applicable legal or listing requirements or stockholders   failing to reelect Executive to the Board) after a written demand for substantial performance is   delivered to the Board by Executive which specifically identifies the manner in which Executive   believes that the Company has materially breached this Agreement, and the Company has failed   to cure such breach to the reasonable satisfaction of Executive within thirty (30) days following   the delivery of such notice, during which thirty (30) day notice period, the ninety (90) day period   described above will be tolled.   (e) Change in Control.  “Change in Control” will mean the happening of any   of the events described in Section 2(e)(ii) of the Plan (without regard to when Awards were granted   under the Plan, as such term is defined in the Plan).   (f) Change in Control Termination.  “Change in Control Termination” shall   mean the occurrence of any of the following events within the period of twenty-four (24) months   following the occurrence of a Change in Control: (1) a Constructive Termination, (2) a termination   of the Executive’s employment by the Company without Business Reasons, or (3) election by the   Company not to extend the Employment Term upon the expiration of the Employment Term and   Executive within ninety (90) days following the expiration of the Employment Term terminates   his employment.   (g) Separation from Service.  “Separation from Service” will mean Executive’s   “separation from service” within the meaning of Section 409A.   9. Confidential Information.   (a) Executive acknowledges that the Confidential Information relating to the   business of the Company and its subsidiaries which Executive has obtained or will obtain during   the course of his association with the Company and subsidiaries and his performance under this   Agreement are the property of the Company and its subsidiaries.  Executive agrees that he will not   disclose or use at any time, either during or after the Employment Term, any Confidential   Information without the written consent of the Board, other than proper disclosure or use in the   performance of his duties hereunder.  Executive agrees to deliver to the Company at the end of the   Employment Term, or at any other time that the Company may request, all memoranda, notes,   plans, records, documentation and other materials (and copies thereof) containing Confidential   Information relating to the business of the Company and its subsidiaries, no matter where such   material is located and no matter what form the material may be in, which Executive may then   possess or have under his control.  If requested by the Company, Executive will provide to the   Company written confirmation that all such materials have been delivered to the Company or have   been destroyed.  Executive will take all appropriate steps to safeguard Confidential Information   and to protect it against disclosure, misuse, espionage, loss and theft.   (b) “Confidential Information” will mean information which is not generally   known to the public and which is used, developed, or obtained by the Company or its subsidiaries     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 13   relating to the businesses of any of the Company and its subsidiaries or the business of any   customer thereof including, but not limited to: products or services; fees, costs and pricing   structure; designs; analyses; formulae; drawings; photographs; reports; computer software,   including operating systems, applications, program listings, flow charts, manuals and   documentation; databases; accounting and business methods; inventions and new developments   and methods, whether patentable or unpatentable and whether or not reduced to practice; all   copyrightable works; the customers of any of the Company and its subsidiaries and the   Confidential Information of any customer thereof; and all similar and related information in   whatever form.  Confidential Information will not include any information which (i) was rightfully   known by Executive prior to the Employment Term, (ii) is publicly disclosed by law or in response   to an order of a court or governmental agency, (iii) becomes publicly available through no fault of   Executive or (iv) has been published in a form generally available to the public prior to the date   upon which Executive proposes to disclose such information.  Information will not be deemed to   have been published merely because individual portions of the information have been separately   published, but only if all the material features comprising such information have been published   in combination.   10. Inventions and Patents.  In the event that Executive, as a part of Executive’s   activities on behalf of the Company, generates, authors or contributes to any invention, new   development or method, whether or not patentable and whether or not reduced to practice, any   copyrightable work, any trade secret, any other Confidential Information, or any information that   gives any of the Company and its subsidiaries an advantage over any competitor, or similar or   related developments or information related to the present or future business of any of the   Company and its subsidiaries (collectively “Developments and Information”), Executive   acknowledges that all Developments and Information are the exclusive property of the Company.    Executive hereby assigns to the Company, its nominees, successors or assigns, all rights, title and   interest to Developments and Information.  Executive will cooperate with the Board to protect the   interests of the Company and its subsidiaries in Developments and Information.  Executive will   execute and file any document related to any Developments and Information requested by the   Board including applications, powers of attorney, assignments or other instruments which the   Board deems necessary to apply for any patent, copyright or other proprietary right in any and all   countries or to convey any right, title or interest therein to any of the Company’s nominees,   successors or assigns.   11. No Conflicts.   (a) Executive agrees that during the Employment Term, in his individual   capacity he will not enter into any agreement, arrangement or understanding, whether written or   oral, with any supplier, contractor, distributor, wholesaler, sales representative, representative   group or customer, relating to the business of the Company or any of its subsidiaries, without the   express written consent of the Board.   (b) As long as Executive is employed by the Company or any of its subsidiaries,   Executive agrees that he will not, except as set forth in Section 1, or with the express written   consent of the Board, become engaged in, render services for, or permit his name to be used in   connection with, any for-profit business other than the business of the Company, any of its     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 14   subsidiaries or any corporation or partnership in which the Company or any of its subsidiaries have   an equity interest.   12. Non-Competition Agreement.   (a) Executive acknowledges that his services are of a special, unique and   extraordinary value to the Company and that he has access to the Company’s trade secrets,   Confidential Information and strategic plans of the most valuable nature.  Accordingly, Executive   agrees that for the period of thirty-six (36) months following the Termination Date, Executive will   not directly or indirectly own, manage, control, participate in, consult with, render services for, or   in any manner engage in any business competing with the businesses of the Company or any of its   subsidiaries as such businesses exist or are in process of development on the Termination Date (as   evidenced by written proposals, market research or similar materials), including without limitation   the publication of periodic research and analysis of the information technology industries.  Nothing   herein will prohibit Executive from being a passive owner of not more than 1% of the outstanding   stock of any class of a corporation that is publicly traded, so long as Executive has no active   participation in the business of such corporation.   (b) In addition, for a period of thirty-six (36) months commencing on the   Termination Date, Executive will not (i) directly or indirectly induce or attempt to induce any   employee of the Company or any subsidiary (other than his own assistant) to leave the employ of   the Company or such subsidiary, or in any way interfere with the relationship between the   Company or any subsidiary and any employee thereof, (ii) hire directly or through another entity   any person who was an employee of the Company or any subsidiary at any time during the then   preceding twelve (12) months, provided that Executive may hire any such person who responds to   a general advertisement offering employment so long as such person did not have regular contact   with Executive in the course of his or her employment with the Company, (iii) directly or indirectly   induce or attempt to induce any customer, supplier, licensee or other business relation of the   Company or any subsidiary to cease doing business with the Company or such subsidiary, or in   any way interfere with the relationship between any such customer, supplier, licensee or business   relation and the Company or any subsidiary, or (iv) disparage the Company, its executive officers,   or its directors.   (c) Executive agrees that these restrictions on competition and solicitation will   be deemed to be a series of separate covenants not-to-compete and a series of separate non-   solicitation covenants for each month within the specified periods, separate covenants not-to-   compete and non-solicitation covenants for each state within the United States and each country   in the world, and separate covenants not-to-compete for each area of competition.  If any court of   competent jurisdiction will determine any of the foregoing covenants to be unenforceable with   respect to the term thereof or the scope of the subject matter or geography covered thereby, such   remaining covenants will nonetheless be enforceable by such court against such other party or   parties or upon such shorter term or within such lesser scope as may be determined by the court to   be enforceable.   (d) Because Executive’s services are unique and because Executive has access   to Confidential Information and strategic plans of the Company of the most valuable nature, the   parties agree that the covenants contained in this Section 12 are necessary to protect the value of     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 15   the business of the Company and that a breach of any such covenant would result in irreparable   and continuing damage for which there would be no adequate remedy at law.  The parties agree   therefore that in the event of a breach or threatened breach of this Agreement, the Company or its   successors or assigns may, in addition to other rights and remedies existing in their favor, apply to   any court of competent jurisdiction for specific performance and/or injunctive or other relief in   order to enforce, or prevent any violations of, the provisions hereof.   13. SEC Compliance.  The Company covenants that:   (a) at all times during the Employment Term and the term of any Incentive   Awards, if later, the Company will use commercially reasonable efforts to maintain in effect a   valid and effective registration statement on Form S-8 filed with the Securities Exchange   Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”) covering   any outstanding equity awards made to Executive; provided, however, that nothing contained   herein shall be deemed to limit the right of the Company, in good faith, to suspend or withdraw   such registration so long as the Company thereafter uses commercially reasonable efforts to   comply with this provision; and   (b) for so long as Executive holds either Incentive Awards or shares of   Common Stock of the Company obtained through the vesting or exercise of an Incentive Award,   and until Executive is free to sell all of the shares underlying, relating to or obtained through the   vesting or exercise of, Incentive Awards pursuant to Rule 144 promulgated under the Securities   Act, in a ninety (90) day period, the Company will include in such Registration Statement on Form   S-8 described in clause (i) above a customary reoffer prospectus covering Executive’s offer and   sale of stock obtained through the vesting or exercise of Incentive Awards in any manner requested   by the Executive from time to time.   14. Miscellaneous Provisions.   (a) Notice.  Notices and all other communications contemplated by this   Agreement will be in writing, will be effective when given, and in any event will be deemed to   have been duly given (i) when delivered, if personally delivered, (ii) three (3) business days after   deposit in the U.S. mail, if mailed by U.S. registered or certified mail, return receipt requested, or   (iii) one (1) business day after the business day of deposit with Federal Express or similar overnight   courier, if so delivered, freight prepaid.  In the case of Executive, notices will be addressed to him   at the home address which he most recently communicated to the Company in writing, provided   that a copy of such notice is delivered to the Executive’s last known attorneys.  In the case of the   Company, notices will be addressed to its corporate headquarters, and all notices will be directed   to the attention of its Corporate Secretary.   (b) Notice of Termination.  Any termination by the Company or Executive will   be communicated by a notice of termination to the other party hereto given in accordance with   paragraph (a) hereof.  Such notice will indicate the specific termination provision in this   Agreement relied upon.     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 16   (c) Successors.   (i) Company’s Successors.  Any successor to the Company (whether   direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise)   to all or substantially all of the Company’s business and/or assets will be entitled to assume the   rights and will be obligated to assume the obligations of the Company under this Agreement and   will agree to perform, in good faith, the Company’s obligations under this Agreement in the same   manner and to the same extent as the Company would be required to perform such obligations in   the absence of a succession.  For all purposes under this Agreement, the term “Company” will   include any successor to the Company’s business and/or assets which becomes bound by the terms   of this Agreement by operation of law or this Agreement.   (ii) Executive’s Successors.  The terms of this Agreement and all rights   of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or   legal representatives, executors, administrators, successors, heirs, distributees, devisees and   legatees.   (iii) No Other Assignment of Benefits.  Except as provided in this   Section 14(c), the rights of any person to payments or benefits under this Agreement will not be   made subject to option or assignment, either by voluntary or involuntary assignment or by   operation of law, including (without limitation) bankruptcy, garnishment, attachment or other   creditor’s process, and any action in violation of this Subsection (iii) will be void.   (d) Waiver; Amendment.  No provision of this Agreement will be amended,   modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing   and signed by Executive and by an authorized officer of the Company (other than Executive).  No   waiver by either party of any breach of, or of compliance with, any condition or provision of this   Agreement by the other party will be considered a waiver of any other condition or provision or   of the same condition or provision at another time.   (e) Entire Agreement.  This Agreement will supersede any and all prior   agreements, representations or understandings (whether oral or written and whether express or   implied) between the parties with respect to the subject matter hereof, except for any equity-based   incentive award arrangements.   (f) Severability.  The invalidity or unenforceability of any provision or   provisions of this Agreement will not affect the validity or enforceability of any other provision   hereof, which will remain in full force and effect.   (g) Arbitration.  Any dispute or controversy arising under or in connection with   this Agreement will be settled exclusively by arbitration in New York, New York, in accordance   with the Employment Arbitration Rules of the American Arbitration Association then in effect.    Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  No party will   be entitled to seek or be awarded punitive damages.  All attorneys fees and costs will be allocated   or apportioned as agreed by the parties or, in the absence of an agreement, in such manner as the   arbitrator or court will determine to be appropriate to reflect the final decision of the deciding body   as compared to the initial positions in arbitration of each party.  This Agreement will be construed     

 

Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 17   in accordance with and governed by the laws of the State of New York as they apply to contracts   entered into and wholly to be performed within such State by residents thereof.   (h) Withholding of Taxes.  All payments made pursuant to this Agreement will   be subject to withholding of applicable taxes.   (i) Indemnification.  Executive will be covered under the Company’s insurance   policies and, subject to applicable law, will be provided indemnification to the maximum extent   permitted by the Company’s bylaws and Certificate of Incorporation, with such insurance coverage   and indemnification to be in accordance with the Company’s standard practices for senior   executive officers but on terms no less favorable than provided to any other Company senior   executive officer or director.   (j) Compliance with Company Policies.  During the Employment Term,   Executive will comply with all Company policies generally applicable to the Company’s executive   officers.   (k) Legal Fees.  The Company will pay directly the reasonable fees and   expenses of counsel retained by Executive in connection with the preparation, negotiation and   execution of this amended Agreement.   (l) Counterparts.  This Agreement may be executed in counterparts, each of   which will be deemed an original, but all of which together will constitute one and the same   instrument.   [Remainder Of The Page Intentionally Left Blank]     

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 18   (Signature Page to Eugene A. Hall Amended and Restated Employment Agreement)   IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of   the Company by its duly authorized officer, as of the day and year first above written.   GARTNER, INC.   By: /s/ James C. Smith   James C. Smith,   Chairman of the Board of Directors   /s/ Eugene A. Hall   EUGENE A. HALL     

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version   Exhibit A   RELEASE AGREEMENT   This Release Agreement (the “Agreement”) is made by and between Eugene A. Hall   (“Executive”) and Gartner, Inc. (“Company”) (jointly referred to as the “Parties”).   NOW THEREFORE, in consideration of the promises made herein, the Parties hereby   agree as follows:   1. Consideration.  The Company agrees to provide Executive with the consideration   set forth in the Employment Agreement between Executive and the Company dated effective   March __, 2016 (the “Employment Agreement”).  No consideration shall be due or payable to   Executive by the Company until the Effective Date of this Agreement, as that term is defined   below.   2. Payment of Salary.  Executive acknowledges and represents that the Company has   paid all salary, wages, bonuses, accrued vacation, interest, severance, stock, stock options, vesting,   fees, business expenses, and any and all benefits and compensation due to Executive, with the   exception of the consideration provided for in this Agreement.   3. Release of Claims.  Executive agrees that the foregoing consideration represents   settlement in full of all outstanding obligations owed to Executive by the Company and its current   and former: officers, directors, employees, agents, investors, attorneys, shareholders,   administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and   assigns (the “Releasees”).  Executive, on his own behalf, and on behalf of his respective heirs,   family members, executors, agents, and assigns, hereby fully and forever releases the Company   and the other Releasees from, and agrees not to sue concerning, any claim, duty, obligation or   cause of action relating to any matters of any kind, whether presently known or unknown,   suspected or unsuspected, that Executive may possess arising from any omissions, acts or facts   that have occurred up until and including the Effective Date of this Agreement including, without   limitation:   (a) any and all claims relating to or arising from Executive’s employment with   the Company or the termination of that employment;    (b) any and all claims relating to, or arising from, Executive’s right to purchase,   or actual purchase of, shares of Company stock, including, but not limited to, any claims for fraud,   misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law,   and securities fraud under any state or federal law;    (c) any and all claims under the law of any jurisdiction, including, but not   limited to, wrongful discharge of employment; constructive discharge from employment;   termination in violation of public policy; discrimination; breach of contract, both express and   implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory   estoppel; negligent or intentional infliction of emotional distress; negligent or intentional   misrepresentation; negligent or intentional interference with contract or prospective economic     

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 2   advantage; unfair business practices; defamation; libel; slander; negligence; personal injury;   assault; battery; invasion of privacy; false imprisonment; and conversion;    (d) any and all claims for violation of any federal, state or municipal statute,   including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of   1991; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Employee   Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act;   the Family and Medical Leave Act; the Fair Credit Reporting Act; the Sarbanes Oxley Act; the   Connecticut Fair Employment Practices Act; the Connecticut Human Rights and Opportunities   Law; and the Connecticut General Statute Title 31;    (e) any and all claims for violation of the federal, or any state, constitution;    (f) any and all claims arising out of any other laws and regulations relating to   employment or employment discrimination;    (g) any claim for any loss, cost, damage, or expense arising out of any dispute   over the non-withholding or other tax treatment of any of the proceeds received by Executive as a   result of this Agreement; and   (h) any and all claims for attorney fees and costs.    The Company and Executive agree that the release set forth in this section shall be and   remain in effect in all respects as a complete general release as to the matters released.  This release   does not extend to (a) any obligations incurred under this Agreement, including, without limitation,   the obligation to provide the consideration referenced in Section 1, (b) payment of accrued benefits   under an employee benefit plan, to the extent and in the manner prescribed by the plan documents;   (c) the election of continued healthcare coverage under an employee health plan pursuant to   COBRA; (d) the application for and/or receipt of unemployment benefits to the extent eligible; (e)   the receipt of indemnification under the Company’s charter, bylaws or other organizational   documents of the Company, or (f) any claims for benefits under the Director & Officer insurance   of the Company.   4. Acknowledgement of Waiver of Claims Under ADEA.  Executive acknowledges   that he is waiving and releasing any rights he may have under the Age Discrimination in   Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary.    Executive and the Company agree that this waiver and release does not apply to any rights or   claims that may arise under the ADEA after the Effective Date of this Agreement.  Executive   acknowledges that the consideration given for this waiver and release Agreement is in addition to   anything of value to which Executive was already entitled.  Executive further acknowledges that   he has been advised by this writing that:   (a) he should consult with an attorney prior to executing this Agreement;    (b) he has twenty-one (21) calendar days within which to consider this   Agreement;      

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 3   (c) he has seven (7) calendar days following his execution of this Agreement   to revoke this Agreement;    (d) this ADEA waiver shall not be effective until the revocation period has   expired; and,    (e) nothing in this Agreement prevents or precludes Executive from   challenging or seeking a determination in good faith of the validity of this waiver under the ADEA,   nor does it impose any condition precedent, penalties or costs for doing so, unless specifically   authorized by federal law.    ANY REVOCATION SHOULD BE IN WRITING AND DELIVERED TO LEWIS G.   SCHWARTZ, AT 56 TOP GALLANT ROAD, STAMFORD, CT 06904 ON OR BEFORE 11:59   P.M. ON THE SEVENTH DAY AFTER EXECUTIVE’S EXECUTION OF THIS   AGREEMENT.   5. No Pending or Future Lawsuits.  Executive represents that he has no lawsuits,   claims, or actions pending in his name, or on behalf of any other person or entity, against the   Company or any of the other Releasees.  Executive also represents that he does not intend to bring   any claims on his own behalf or on behalf of any other person or entity against any of the Releasees.   6. No Assistance.  Executive agrees that he will not knowingly counsel or assist any   attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances,   claims, charges, or complaints by any third party against any of the Releasees, unless under a   subpoena or other court order to do so.  Executive agrees both to immediately notify the Company   upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of   its receipt, a copy of such subpoena or court order to the Company.  If approached by anyone for   counsel or assistance in the presentation or prosecution of any disputes, differences, grievances,   claims, charges, or complaints against any of the Releasees, Executive shall state no more than   that he cannot provide counsel or assistance.   7. Breach.  Executive acknowledges and agrees that any breach of any provision of   this Agreement by Executive shall constitute a material breach of this Agreement and shall entitle   the Company immediately to recover the consideration provided to Executive under this   Agreement.   8. Non-Disparagement.  The Parties agree to refrain from (i) any defamation, libel or   slander, or (ii) tortious interference with the contracts and relationships, in either case, of the other   Party (and, in the case of Executive, the Releasees as well).   9. No Admission of Liability.  The Parties understand and acknowledge that this   Agreement constitutes a compromise and settlement of potential claims.  No action taken by the   Parties, previously or in connection with this Agreement, shall be construed to be: (a) an admission   of the truth or falsity of any claims made, or (b) an admission by either party of any fault or liability   whatsoever to the other party or to any third party.   10. No Representations.  Each party represents that it has had the opportunity to consult   with an attorney, and has carefully read and understands the scope and effect of the provisions of     

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 4   this Agreement.  Neither party has relied upon any representations or statements made by the other   party hereto which are not specifically set forth in this Agreement.   11. Severability.  In the event that any provision in this Agreement becomes or is   declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement   shall continue in full force and effect without said provision so long as the remaining provisions   remain intelligible and continue to reflect the original intent of the Parties.   12. Entire Agreement.  This Agreement represents the entire agreement and   understanding between the Company and Executive concerning the subject matter of this   Agreement, and supersedes and replaces any and all prior agreements and understandings between   the Parties concerning the subject matter of this Agreement.   13. No Oral Modification.  Any modification or amendment of this Agreement, or   additional obligation assumed by either party in connection with this Agreement, shall be effective   only if placed in writing and signed by both Parties or their authorized representatives.   14. Attorneys’ Fees.  In the event that either Party brings an action to enforce or effect   its rights under this Agreement, the prevailing party shall be entitled to recover its costs and   expenses, including the costs of mediation, arbitration, litigation, court fees, plus reasonable   attorneys’ fees incurred in connection with such an action.   15. Governing Law.  This Agreement shall be governed by the laws of the State of New   York, without regard for choice of law provisions.   16. Effective Date.  This Agreement will become effective on the eighth day after it   has been signed by both Parties (the “Effective Date”), provided that Employee has not revoked   the Agreement before that date.  This Agreement shall become effective or enforceable, and the   consideration provided herein shall not be payable, until the Effective Date.   17. Counterparts.  This Agreement may be executed in counterparts, and each   counterpart shall have the same force and effect as an original and shall constitute an effective,   binding agreement on the part of each of the undersigned.   18. Voluntary Execution of Agreement.  This Agreement is executed voluntarily and   with the full intent of releasing all claims, and without any duress or undue influence by any of the   Parties.  The Parties acknowledge that:   (a) They have read this Agreement;    (b) They have been represented in the preparation, negotiation, and execution   of this Agreement by legal counsel of their own choice or that they have voluntarily declined to   seek such counsel;    (c) They understand the terms and consequences of this Agreement and of the   releases it contains; and   (d) They are fully aware of the legal and binding effect of this Agreement.      

 

   Gartner - Hall Employment Agreement 2015 Restatement -  Execution Version 5   IN WITNESS WHEREOF, the Parties have executed this Agreement on the dates set forth   below.   Dated:  3/19/16  By: /s/ James C. Smith     For Gartner, Inc.   Dated:  3/19/16    By: /s/ Eugene A. Hall     Eugene A. Hall

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