Document:

a2022630-exhibit1025

EXECUTION VERSION CONFIDENTIAL 4875-8201-6788 v.1 1007736119v5 AT&T Inc. 208 S. Akard Street Dallas, TX 75202 April 8, 2022 Discovery, Inc. 230 Park Avenue South New York, NY 10003 Attention: Bruce Campbell With copy to: Debevoise & Plimpton LLP 919 Third Avenue New York, NY 10022 Attention: Jeffrey J. Rosen Jonathan E. Levitsky Sue Meng Ladies and Gentlemen: Reference is made herein to the Tax Matters Agreement TMA May Remainco a Delaware corporation, on behalf of  itself and the members of the Remainco Group (as defined in the TMA), Magallanes, Inc.  Spinco RMT Partner a Delaware corporation, on behalf of itself and the  members of the RMT Group (as defined in the TMA), including the Tax Receivable Annex set  TRA in this letter agreement shall have the meanings as set forth in the TMA or the TRA, as the case  may be.   In accordance with the steps plan set forth on Annex A for effectuating the Internal  Internal Restructuring Steps ribed forth in  Step [A12] of the Internal Restructuring Steps to give rise to an increase in Tax basis for U.S.  federal, state or local income Tax purposes with respect to the WM Columbus Holdings NQPS  (as defined in the Internal Restructuring Steps) (such NQPS Basis  Step-Up This letter agreement sets forth the agreement of Remainco, Spinco and RMT Partner that  the TRA shall apply as follows: 1. If the amount of Covered Attributes other than the NQPS Basis Step- Other  Covered Attributes include both the NQPS Basis Step-Up and the Other Covered Attributes; 

 

-2- 4875-8201-6788 v.1 2. If the amount of Other Covered Attributes does not exceed the Threshold Amount,  but the amount of the NQPS Basis Step-Up exceeds the Threshold Amount, (i)  Covered Attributes shall include solely the NQPS Basis Step-Up and (ii) RMT  Partner shall not be required to obtain or provide Remainco with an RMT Partner  Certification for any taxable period unless and until the RMT Group realizes an  Income Tax Benefit with respect to the NQPS Basis Step-Up; and 3. If the amount of Other Covered Attributes does not exceed the Threshold Amount  and the amount of the NQPS Basis Step-Up does not exceed the Threshold Amount,  Covered Attributes shall be deemed to be zero. Except as specifically provided in this letter agreement, the TMA (including the TRA)  shall remain in full force and effect. This letter agreement is limited precisely as drafted and shall  not constitute a modification, acceptance or waiver of any other provision of the TMA.  Sections  14.03 (Modification or Amendment; Waiver), 14.04 (Counterparts), 14.05 (Governing Law and  Venue; Submission to Jurisdiction; Selection of Forum; Waiver of Trial by Jury), 14.06 (Specific Performance), 14.13 (Severability) and 14.15 (Interpretation and Construction) of the TMA are  hereby incorporated herein by reference, mutatis mutandis. [Signature Page Follows] 

 

[Signature Page to Letter Agreement regarding the Tax Receivable Annex] Sincerely, AT&T INC.  By:___________________________ Name: Stephen McGaw Title:   Senior Vice President  Corporate  Strategy and Development 

 

[Signature Page to Letter Agreement regarding the Tax Receivable Annex] MAGALLANES, INC. By:___________________________ Name: Stephen A. McGaw Title:   President 

 

[Signature Page to Letter Agreement regarding the Tax Receivable Annex]  Acknowledged and agreed:  DISCOVERY, INC.  By:_____________________________  Name:  Bruce Campbell  Title:    Chief Development, Distribution     & Legal Officer 

 

4875-8201-6788 v.1 Annex A Internal Restructuring Steps [See attached.] 

 

FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA AT&T Inc. Project Columbus Internal Separation Transactions March 22, 2022 | Draft For Discussion Purposes Only Privileged and Confidential 

 

Page 2 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Overview AT&T -off and combination of its WarnerMedia business with Discovery, AT&T must package its WarnerMedia business assets under a common holding  SpinCo WM LLC liability company classified as a corporation for US federal income tax purposes that is wholly owned by AT&T. However, there are certain WarnerMedia business assets held outside  the WM LLC chain of ownership. Further, there are certain non- Retained Assets extracted prior to the public spin-off. Step Plan -off and combination. This Step Plan  was developed with a view towards achieving this realignment in a tax-efficient manner, while balancing a number of competing priorities. In addition, while we believe the transactions  depicted herein are feasible, we are still undertaking tax and non-tax due diligence on the Step Plan.1 f the key aspects of the Step Plan to facilitate your review. Organization and Summary of Step Plan This Step Plan is organized into five sections, summarized as follows: Section A WM Max income tax purposes that conducts the HBO Max business, is held outside the WM LLC ownership chain. Section A contains the steps for consolidating this ownership under  WM LLC. Certain of these steps have already been executed. Section B QOFs in Opportunity Zones under Section 1400Z-2(a)) that are Retained Assets. Section B contains the steps for extracting the QOF ownership interests from the WM LLC  ownership structure.  Section C WMCH federal income tax purposes that owns both WarnerMedia business assets (Regional Sports Networks and Otter Media business) and Retained Assets, is held outside the  WM LLC ownership chain. Section C contains the steps for both extracting the Retained Assets from WMCH and consolidating the ownership of WMCH under WM LLC.  Section D Currently, there are certain aircraft that are part of the WarnerMedia business that are held outside the WM LLC ownership chain. Section D contains the steps  for transferring the aircrafts to WM LLC, which have already been executed. Section E Certain internal distributions to reduce or eliminate intercompany accounts among historic WarnerMedia entities.  Ordering and Timing The steps in each section are intended to be implemented in the order as described. However, because there is limited interaction between the steps in each section, the sections do  not need to be implemented in any particular order. Except as otherwise described herein, the majority of the steps will be executed close in time to the public spin-off. Expected Representations from Discovery A number of the transactions included in this Step Plan are intended to qualify as tax-free under various subchapter C provisions. In some cases, qualification under these provisions  depends, in part, on whether or not certain actions are planned to be taken or not taken in the future. Accordingly, we will be requesting from Discovery customary representations  associated with certain steps of this Step Plan. We look forward to collaboratively working through this process with you. 1. Any reference to the characterization of particular transaction herein refers only to its currently intended US federal income tax treatment and does not represent a final determination or  conclusion with respect to such treatment. With respect to state and local taxes, we do not expect material adverse consequences. 

 

Page 3 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Legend A corporation for US federal income tax purposes A partnership for US federal income tax purposes An entity that is disregarded for US federal income tax purposes A partnership for US federal income tax purposes and a corporation for  foreign tax purposes A branch, rep office, asset, individual or trust Dashed arrows indicate cash contributions, distributions, loans, and  interest flows, as appropriate, and bold arrows indicate non-cash asset  transfers. Arrow direction indicates flow (i.e., creditor debtor) Newly formed LLCs, corporations, or partnerships Indirect ownership 

 

Page 4 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Simplified Beginning Structure Relevant Entities Only New Cingular  Wireless, PCS  LLC AT&T Inc. Shareholders AT&T  Datacomm,  LLC AT&T  Datacomm  Holdings, Inc. AT&T Mobility II LLC Bellsouth  Mobile  Data, Inc. 42.1% WM  Max LLC  WM Max  Holdings, LLC Turner Broadcasting System, Inc. AT&T Media Holdings Inc. The AT&T  MVPD Group,  LLC Historic  TW Inc. AT&T Diversified MVPD  Holdings LLC AT&T Content Holdings I, LLC Warner Media Content  Holdings I, LLC 57.2%Warner Media Content  Holdings LP AT&T MVPD  Group  Holdings, LLC Warner Media, LLC AT&T MVPD  Holdings LLC WM Interactive Media  Holdings, Inc. 25%24% 25% 1%25% Home Box  Office, Inc. Warner  Communications LLC CNN Interactive  Group, Inc. Cable News  Network, Inc. 0.7% Time Warner  Global Media  Group, Inc. WarnerMedia  Business  Services LLC WarnerMedia  Services, LLC SBC Aviation  Holdings, Inc. FALCON  900EX-304,  LLC FALCON  7X-75, LLC Entity to Remain with AT&T Entity to be Separated with WM Business Legend AT&T Corp. AT&T of Puerto  Rico, Inc. AT&T of the  Virgin Islands,  Inc. This slide does not depict the ownership of the QOF interests. See Section B for a depiction of the relevant QOF organization  charts. AT&T Management  Services LLC 17.2% 82.8% 

 

Page 5 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Section A: WM Max Restructuring 

 

Page 6 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Background WM Max is approximately 74% owned by entities that are not within the WM LLC  ownership chain.  WM Max interests to be transferred directly or indirectly: Datacomm NCW WM Max Holdings 

 

Page 7 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Simplified Beginning Structure AT&T Inc.  (US) AT&T Datacomm,  LLC (US) AT&T Datacomm  Holdings, Inc.  (US) AT&T  Mobility II  LLC (US) Bellsouth Mobile  Data, Inc. (US) WM Max  LLC (US) 25% 24% WM Max  Holdings, LLC (US) Turner Broadcasting System, Inc. (US) 25% WM Interactive Media Holdings, Inc. (US) 1% Warner Media, LLC (US) Historic TW Inc. (US) New Cingular  Wireless, PCS LLC (US) 25% Entity to Remain with AT&T Entity to be Separated with WM Business Legend 

 

Page 8 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Completed Transaction Steps Pre-Step (Not Depicted): On November 30, 2021, the partners of  WM Max made proportionate capital contributions to WM Max, and  capitalization.  Step A1: On December 31, 2021, NCW distributed its 24% interest in  Mobility II NCW Distribution Step A2: On December 31, 2021, Mobility II contributed the 24%  interest in WM Max received in the NCW Distribution to WM Max  WM Max Holdings II liability company that made an initial entity classification election to be  First WM  Max Holdings II Contribution . Step A3: On January 1, 2022, Mobility II distributed 100% of the  outstanding stock of WM Max Holdings II to Bellsouth Mobile Data,  BSMD Mobility II Distribution US Federal Income Tax Considerations The NCW Distribution is intended to be disregarded for US federal  income tax purposes. The First WM Max Holdings II Contribution is intended to qualify as a  Section 351 exchange.  The Mobility II Distribution is intended to be a distribution pursuant to  Section 731(a).  AT&T Inc.  (US) AT&T  Mobility II  LLC (US) Bellsouth Mobile  Data, Inc. (US) AT&T  Mobility  LLC (US) WM Max  LLC (US) 24% 1 3 WM Max  Holdings II, LLC (US) 2 New Cingular  Wireless, PCS LLC (US) 

 

Page 9 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Transaction Steps Step A4: Datacomm elects to be disregarded as an entity separate  Datacomm Holdings Datacomm CTB Election US Federal Income Tax Considerations The Datacomm CTB Election is intended to qualify as either a Section  332 liquidation of Datacomm into Datacomm Holdings or a Section  368(a) reorganization of Datacomm into BSMD (see Step A6, below).  AT&T Inc.  (US) WM Max  LLC (US) AT&T Datacomm  Holdings, Inc.  (US) 25% 4 AT&T Datacomm,  LLC (US) 

 

Page 10 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Transaction Steps Step A5: AT&T contributes 100% of the outstanding stock of  BSMD Contribution US Federal Income Tax Considerations See Step A6, below.  Bellsouth Mobile  Data, Inc. (US) 24% WM Max  LLC (US) WM Max  Holdings II, LLC (US) AT&T Datacomm  Holdings, Inc. (US)  25% 5 AT&T Inc.  (US) AT&T Datacomm,  LLC (US) 

 

Page 11 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Transaction Steps Step A6: Datacomm Holdings converts to a limited liability company under applicable state conversion statutes (together with the BSMD  Datacomm Holdings Reorganization Step A7: Datacomm distributes its 25% interest in WM Max to  Datacomm Distribution Step A8: Datacomm Holdings distributes the 25% interest in WM Max  received from Datacomm in the Datacomm Distribution to BSMD (the  Datacomm Holdings Distribution Step A9: BSMD contributes the 25% interest in WM Max received in  the Datacomm Holdings Distribution to WM Max Holdings II (the  Second WM Max Holdings II Contribution Prior to this step, the  existing partners in WM Max will make another proportionate capital  ownership interest will change as a result of the capitalization. US Federal Income Tax Considerations The Datacomm Holdings Reorganization is intended to qualify as a  Section 368(a)(1)(D) reorganization of Datacomm Holdings into  BSMD.  The Datacomm Holdings Reorganization, together with the Second  WM Max Holdings II Contribution, may result in the Datacomm CTB  Election being treated as a Section 368(a) reorganization of  Datacomm into BSMD. The Datacomm Distribution and Datacomm Holdings Distribution are  intended to be disregarded for US federal income tax purposes. The Second WM Max Holdings II Contribution is intended to qualify as  a Section 351 exchange.  Bellsouth Mobile  Data, Inc. (US) 24% WM Max  LLC (US) WM Max  Holdings II, LLC (US) AT&T Datacomm  Holdings, LLC (US)  25% 6 9 AT&T Inc. (US)  AT&T Datacomm,  LLC (US) 7 8 

 

Page 12 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Transaction Steps Step A10: Warner Communications LLC forms WM Columbus  WM Columbus Holdings and contributes 100% of the outstanding stock of  Home Box Office  HBO WM Columbus Holdings  Low-Vote Common Stock First WM Columbus Holdings  Contribution Step A11: BSMD contributes 100% of the outstanding stock of WM  Max Holdings II to WM Columbus Holdings in exchange for (1) voting  preferred stock that is nonqualified preferred stock as defined in  WM Columbus Holdings NQPS WM Columbus  Holdings High-Vote Common Stock NQPS and WM Columbus Holdings High-Vote Common Stock, in the  aggregate, possess at least 80% of the total combined voting power of  all classes of WM Columbus Holdings stock entitled to vote (the  Second WM Columbus Holdings Contribution US Federal Income Tax Considerations The First WM Columbus Holdings Contribution is intended to qualify  as a Section 351 exchange.  See Step A12 for the intended US federal income tax characterization  of the Second WM Columbus Holdings Contribution. Warner Media, LLC (US) Historic TW Inc. (US) 11 10 Bellsouth Mobile  Data, Inc. (US) AT&T Inc. (US)  Home Box  Office Inc. (US) WM Columbus  Holdings, Inc. (US) 49% WM Max  LLC (US) WM Max  Holdings II, LLC (US) Warner  Communications LLC (US) NQPS + Common        

 

Page 13 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Warner Media, LLC (US) Historic TW Inc. (US) 12 Bellsouth Mobile  Data, Inc. (US) AT&T Inc.  (US) Home Box  Office Inc. (US) WM Columbus  Holdings, Inc. (US) 49% WM Max  LLC (US) WM Max  Holdings II, LLC (US) WM Max  Holdings, LLC (US) 25% Warner Communications LLC  (US)  NQPS + High-Vote  Common 80% Voting Power Transaction Steps Step A12: BSMD distributes the WM Columbus Holdings NQPS and  WM Columbus Holdings High-Vote Common Stock to AT&T (together  BSMD  Spin-Off US Federal Income Tax Considerations The BSMD Spin-Off is intended to qualify as a reorganization  described in Sections 368(a)(1)(D) and 355. Low-Vote Common 20% Voting Power 

 

Page 14 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WM Max Restructuring Simplified Ending Structure AT&T Inc.  (US) WM Max LLC (US) 25% Turner Broadcasting  System, Inc. (US) 25% 49% WM Interactive Media Holdings, Inc. (US) 1% Warner Media, LLC (US) Historic TW Inc. (US) WM Columbus  Holdings, Inc. (US) WM Max  Holdings II, LLC (US) WM Max  Holdings, LLC (US) Warner Communications LLC  (US)  Home Box  Office Inc. (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend NQPS + High-Vote  Common Low-Vote Common  20% Voting Power 

 

Page 15 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Section B: QOF Restructuring 

 

Page 16 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF Restructuring Background Various WarnerMedia subsidiaries have qualified investments in QOFs under Section  1400Z-2(a) that must be separated. The qualified investments of the WarnerMedia subsidiaries are in the following entities: QOF IV QOF V QOF VI WMI transferred in a transaction that does not result in a triggering event under Reg.  §1.1400Z2(b)-1(c). 

 

Page 17 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring 

 

Page 18 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Simplified Beginning Structure AT&T Inc. (US) Historic TW Inc. (US) Warner  Media, LLC (US) 44.29% WM Interactive  Media Holdings Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) AT&T of Puerto Rico,  Inc. (US) AT&T of the Virgin  Islands, Inc. (US) AT&T Corp. (US) Time Warner Global  Media Group Inc.  (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend 

 

Page 19 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring AT&T Inc.  (US) Transaction Steps Pre-Step 1: Each of the entities listed below (the  WM Creditors payment in full on its revolving credit note with  Revolving Credit Notes Pre-Step 2: Each of the WM Creditors loans the  cash received from AT&T in full repayment of the  Revolving Credit Notes to Historic TW Inc.  Historic TW obligation. The foreign WM Creditors listed above  will loan cash in exchange for a promissory note  owing from Historic TW, while the domestic WM  Creditors will loan the cash in a manner  consistent with the standard internal treasury  lending process.  Pre-Step 3: Historic TW loans the cash received  from the WM Creditors in Pre-Step 2 to AT&T in  exchange for a promissory note owing from AT&T  AT&T Promissory Note Pre- Intercompany Clean- Up US Federal Income Tax Considerations The Intercompany Clean-Up is not expected to  result in any adverse US federal income tax  consequences. Warner Media, LLC (US) Historic TW Inc. (US) WM Creditors Arrow direction indicates flow  (i.e., creditor debtor) Revolving Credit Notes WM Creditors Time Warner International Finance Limited (UK) Time Warner Media Holdings BV (NL) TW/TT Holdings Limited (UK) Warner Media Digital Holdings, Inc. (fka AT&T Media Holdings  Inc.) Warner Media Content Holdings, L.P. WM Interactive Media Holdings, Inc. Warner Media Content Holdings II, LLC AT&T SportsNet Pittsburgh LLC AT&T SportsNet LLC AT&T SportsNet Rocky Mountain LLC TW AOL Holdings LLC TWI Visible World Holdings, Inc. 

 

Page 20 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Transaction Steps Pre-Step 4 (Not Depicted): WM LLC and AT&T  agree to offset their gross intercompany balances  between one another pursuant to existing  intercompany agreements. Pre-Step 5: WM LLC distributes to AT&T or  cancels for no consideration the net intercompany  WM LLC Receivable WM LLC Receivable Elimination This step may occur immediately before the  external separation, which includes the  transfer of WM LLC to SpinCo. US Federal Income Tax Considerations The WM Receivable Elimination is intended to be  treated as a taxable distribution of the WM LLC  Receivable for US federal income tax purposes.  Provided the WM LLC has a basis in the WM LLC  Receivable equal to its face amount and fair market  value, the WM LLC Receivable Elimination is not  expected to result in any adverse US federal  income tax consequences. Arrow direction indicates flow  (i.e., creditor debtor) AT&T Inc.  (US) Warner Media, LLC (US) WM LLC  Receivable 

 

Page 21 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring AT&T Inc.  (US) Transaction Steps Step B1: Historic TW forms AT&T Columbus  AT&T Columbus Holdings domestic corporation, and contributes 100% of the  outstanding stock of WMI to AT&T Columbus  WMI Stock Transfer US Federal Income Tax Considerations See Step B2, below. Warner Media, LLC (US) Historic TW Inc. (US) WM Interactive  Media Holdings Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) AT&T Columbus  Holdings, Inc. (US) 1 WM Max,  LLC (US) 1% Time Warner Global  Media Group Inc.  (US) 

 

Page 22 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Transaction Steps Step B2: Immediately after the WMI Stock  Transfer, WMI converts to a limited liability  company under applicable state conversion statutes  WMI  Reorganization Step B3: Immediately after Step B2, WMI  distributes its entire interest in QOF IV (55.71%) to  WMI  Distribution US Federal Income Tax Considerations The WMI Reorganization is intended to qualify as a  Section 368(a)(1)(F) reorganization. The WMI Distribution is intended to be disregarded  for US federal income tax purposes. 2 WM Interactive  Media Holdings LLC (US) 55.71% AT&T Investment  Fund IV, LLC (US) AT&T Columbus  Holdings, Inc. (US) 2 WM Max,  LLC (US) 3 1% AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Time Warner Global  Media Group Inc.  (US) 

 

Page 23 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring AT&T Inc.  (US) Transaction Steps Step B4: WMI elects to be classified as a  corporation for US federal income tax purposes  with an effective date 2 days after the effective date  WMI CTB Election US Federal Income Tax Considerations The WMI CTB Election is intended to qualify as a  Section 351 exchange.  Warner Media, LLC (US) Historic TW Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) AT&T Columbus  Holdings, Inc. (US) WM Max,  LLC (US) 1% WM Interactive  Media Holdings LLC (US) 4 Time Warner Global  Media Group Inc.  (US) 

 

Page 24 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring AT&T Inc.  (US) Transaction Steps Step B5: AT&T Corp. sells 100% of the outstanding  stock of AT&T of Puerto Rico, Inc. and AT&T of the  Virgin Islands, Inc. to AT&T Columbus Holdings in  ATB Sale US Federal Income Tax Considerations The ATB Sale is intended to be treated as a taxable  Section 1001 exchange.  Warner Media, LLC (US) Historic TW Inc. (US) AT&T Columbus  Holdings, Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) WM Max,  LLC (US) 1% WM Interactive  Media Holdings LLC (US) 5 AT&T of Puerto Rico,  Inc. (US) AT&T of the Virgin  Islands, Inc. (US) AT&T Corp. (US) Time Warner Global  Media Group Inc.  (US) 

 

Page 25 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Transaction Steps Step B6 (Not Depicted): If necessary, the corporate  CNN Interactive common stock with the same rights and privileges as  CNN Interactive Low-Vote Common Stock except once issued such stock will possess at least 80%  of the total voting power of all CNN Interactive stock (the  CNN Interactive High-Vote Common Stock Step B7: AT&T Columbus Holdings contributes 100% of  the outstanding stock of WMI to CNN Interactive in  exchange for the CNN Interactive High-Vote Common  CNN Interactive Contribution Step B8: AT&T Columbus Holdings distributes the CNN  Interactive High-Vote Common Stock to Historic TW (the  AT&T Columbus Holdings Distribution with the CNN Interactive Contribution, AT&T  Columbus Holdings Spin-Off US Federal Income Tax Considerations The AT&T Columbus Holdings Spin-Off is intended to  qualify as a reorganization described in Sections  368(a)(1)(D) and 355. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) AT&T Columbus  Holdings, Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) WM Max,  LLC (US) 1% WM Interactive  Media Holdings LLC (US) AT&T of Puerto  Rico, Inc. (US) AT&T of the Virgin  Islands, Inc. (US) Cable News  Network, Inc. (US) CNN Interactive  Group, Inc. (US) 8 80% Voting Power 7 Time Warner Global  Media Group Inc.  (US) 

 

Page 26 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Transaction Steps Step B9: Historic TW contributes the AT&T  Promissory Note acquired in the Intercompany  Clean- First  AT&T Columbus Holdings Contribution Step B10: Historic TW distributes 100% of the  outstanding stock of AT&T Columbus Holdings to  WM LLC (together with the First AT&T Columbus  Historic TW Spin-Off US Federal Income Tax Considerations The Historic TW Spin-Off is intended to qualify as a  reorganization described in Sections 368(a)(1)(D)  and 355. AT&T Inc.  (US) AT&T Columbus  Holdings, Inc. (US) CNN Interactive  Group, Inc. (US) 9 Warner Media, LLC (US) Historic TW Inc. (US) 80% Voting Power 55.71% AT&T Investment  Fund IV, LLC (US) Cable News  Network Inc. (US) AT&T of Puerto Rico,  Inc. (US) AT&T of the Virgin  Islands, Inc. (US) WM Interactive  Media Holdings LLC (US) WM Max,  LLC (US) 1% Time Warner Global  Media Group Inc.  (US) 10 Arrow direction indicates flow  (i.e., creditor debtor) AT&T Promissory Note 

 

Page 27 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring Transaction Steps Step B11: WM LLC contributes 100% of the  outstanding stock of Time Warner Global Media  Group, Inc. to AT&T Columbus Holdings (the  Second AT&T Columbus Holdings  Contribution Step B12: WM LLC distributes 100% of the  outstanding stock of AT&T Columbus Holdings to  AT&T (together with the Second AT&T Columbus  WM LLC Spin-Off US Federal Income Tax Considerations The WM LLC Spin-Off is intended to qualify as a  reorganization described in Sections 368(a)(1)(D)  and 355. AT&T Inc.  (US) AT&T Columbus  Holdings, Inc. (US) CNN Interactive  Group, Inc. (US) Warner Media, LLC (US) Historic TW Inc. (US) 80% Voting Power55.71% AT&T Investment  Fund IV, LLC (US) Cable News  Network Inc. (US) AT&T of Puerto Rico,  Inc. (US) AT&T of the Virgin  Islands, Inc. (US) WM Interactive  Media Holdings LLC (US) Time Warner Global  Media Group Inc.  (US) WM Max,  LLC (US) 1% 12 11 

 

Page 28 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF IV Restructuring  Simplified Ending Structure Entity to Remain with AT&T Entity to be Separated with WM Business Legend AT&T Inc.  (US) CNN Interactive  Group, Inc. (US) Warner Media, LLC (US) Historic TW Inc. (US) 80% Voting Power Cable News  Network Inc. (US) WM Interactive  Media Holdings LLC (US) WM Max,  LLC (US) 1% AT&T Columbus  Holdings, Inc. (US) 55.71% AT&T Investment  Fund IV, LLC (US) AT&T of Puerto Rico,  Inc. (US) AT&T of the Virgin  Islands, Inc. (US) Time Warner Global  Media Group Inc.  (US) Arrow direction indicates flow  (i.e., creditor debtor) AT&T Promissory Note 

 

Page 29 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF V and VI Restructuring 

 

Page 30 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF V and VI Restructuring Simplified Beginning Structure QOF V AT&T Inc. (US) Warner Bros. Entertainment Inc. (US) Historic TW Inc. (US) Warner Media, LLC (US) TW Ventures, Inc. (US) Bonanza  Productions, Inc. (US) S&K Pictures, Inc. (US) Kiki Tree  Pictures Inc. (US) Horizon Scripted  Television Inc. (US) Turner Sports, Inc. (US) Peachy Clean  Productions, LLC (US) Random  Productions, LLC (US) AT&T Investment  Fund V, LLC (US) 65.45% 4.24% WB Studio  Enterprises, Inc. (US) 0.86%0.37% 3.90%1.64%1.32%0.22%0.95% 0.85% 20.11% Entity to Remain with AT&T Entity to be Separated with WM Business Legend 

 

Page 31 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF V and VI Restructuring Simplified Beginning Structure QOF VI AT&T Inc. (US) AT&T Investment  Fund VI, LLC (US) Historic TW Inc. (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Warner  Communications  LLC (US) 0.08% 99.92% Entity to Remain with AT&T Entity to be Separated with WM Business Legend 

 

Page 32 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF V and VI Restructuring Completed Transaction Steps Step B13: On February 28, 2022, QOF V  redeemed the interests held by the WarnerMedia  QOF V Interest  Redemptions Step B14: On February 28, 2022, QOF VI  redeemed the interest held by Warner Bros.  Entertainment Inc. (together with the QOF V  QOF V and VI Interest  Redemptions US Federal Income Tax Considerations The QOF V and VI Interest Redemptions are  expected to be treated as inclusion events under  Reg. §1.1400Z2(b)-1(c). Warner Media QOF V Investors Warner Bros. Entertainment Inc. Warner Media, LLC Bonanza Productions, Inc S&K Pictures, Inc. Horizon Scripted Television Inc. Kiki Tree Pictures Inc.  Random Productions, LLC Turner Sports, Inc. Peachy Clean Productions, LLC WB Studio Enterprises, Inc. AT&T Inc. (US) Warner Bros.  Entertainment Inc. (US) Historic TW Inc. (US) Warner Media, LLC (US) TW Ventures, Inc. (US) Bonanza  Productions, Inc. (US) S&K Pictures, Inc. (US) Kiki Tree  Pictures Inc. (US) Horizon Scripted  Television Inc. (US) Turner Sports, Inc. (US) WB Studio  Enterprises, Inc. (US) Home Box  Office, Inc. (US) Peachy Clean  Productions, LLC (US) Random  Productions, LLC (US) Warner  Communications LLC  (US) AT&T Investment  Fund V, LLC (US) AT&T Investment  Fund VI, LLC (US) 13 14 

 

Page 33 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA QOF V and VI Restructuring Simplified Ending Structure AT&T Inc. (US) Warner Bros. Entertainment Inc. (US) Historic TW Inc. (US) Warner Media, LLC (US) TW Ventures, Inc. (US) Bonanza  Productions, Inc. (US) S&K Pictures, Inc. (US) Kiki Tree  Pictures Inc. (US) Horizon Scripted  Television Inc. (US) Turner Sports, Inc. (US) Peachy Clean  Productions, LLC (US) Random  Productions, LLC (US) AT&T Investment  Fund V, LLC (US) WB Studio  Enterprises, Inc. (US) AT&T Investment  Fund VI, LLC (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend 

 

Page 34 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Section C: WMCH Restructuring 

 

Page 35 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Background WMCH owns the following subsidiaries engaged in the WarnerMedia business: Cast  Media Holdings LLC, Warner Media Content Holdings II, LLC and the AT&T Sports  Networks entities. MVPD  Holdings AT&T Content Holdings WMCH I LLC MVPD Holdings will remain with AT&T post-separation, while AT&T Content Holdings  and WMCH I LLC will go with the WarnerMedia business. AT&T MH owns assets that will remain with AT&T post-separation that must be separated. 

 

Page 36 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Simplified Beginning Structure AT&T Inc. (US) AT&T Media Holdings Inc. (US) AT&T Diversified  MVPD Holdings LLC (US) AT&T Content Holdings I, LLC  (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 0.7% 42.1% 57.2% Warner Media Content Holdings LP (US) AT&T MVPD Group  Holdings, LLC (US) Warner Media, LLC (US) The AT&T MVPD  Group, LLC (US) AT&T MVPD  Holdings LLC (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend Cast Media  Holdings, LLC (US) 

 

Page 37 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C1: On January 31, 2022, AT&T MH  contributed all of its assets and liabilities other than  its interests in AT&T Content Holdings I, LLC  (consisting of certain minority interests in a number  of investments) to AT&T Venture Investments, LLC  AT&T VI , a limited liablity company that made an  initial entity classification election to be treated as a  corporation for US federal tax purposes (the AT&T  VI Contribution . US Federal Income Tax Considerations The AT&T VI Contribution is intended to qualify as a  Section 351 exchange. AT&T Inc. (US) Warner Media Content Holdings LP (US) AT&T Media  Holdings Inc. (US) AT&T Content Holdings I, LLC (US) 42.1% AT&T MVPD Group  Holdings, LLC (US) AT&T Venture  Investments, LLC (US) 1 Minority  Interests Cast Media  Holdings, LLC (US) 

 

Page 38 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C2: On February 17, 2022, WMCH drew down  on its revolver with AT&T. Step C3: On February 17, 2022, WMCH contributed Cast Media Cast Media Contribution Step C4: On February 17, 2022, Cast Media used  the cash received in the Cast Media Contribution to  repay its intercompany payable owing to AT&T (the  . US Federal Income Tax Considerations The Cast Media Contribution is intended to qualify as  a Section 351 exchange. The Cast Media Receivable Elimination is not  expected to result in any adverse US federal income  tax consequences. AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 57.2% Warner Media, LLC (US) AT&T Media  Holdings Inc. (US) AT&T MVPD Group  Holdings, LLC (US) The AT&T MVPD  Group, LLC (US) Warner Media Content Holdings LP (US) AT&T Content Holdings I, LLC (US) 42.1% AT&T Venture  Investments, LLC (US) AT&T Diversified  MVPD Holdings LLC (US) AT&T MVPD  Holdings LLC (US) 0.7% Cast Media  Holdings, LLC (US) 2 3 4 

 

Page 39 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C5: On February 28, 2022, AT&T MH  distributed 100% of the outstanding stock of AT&T VI  MVPD  Group Holdings AT&T MH Distribution . Step C6: On February 28, 2022, MVPD Group  Holdings distributed 100% of the outstanding stock  First MVPD Group  Holdings Distribution US Federal Income Tax Considerations The AT&T MH Distribution is intended to be treated  as a taxable distribution for US federal income tax  purposes. The First MVPD Group Holdings Distribution is  intended to be disregarded for US federal income tax  purposes. AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 57.2% Warner Media, LLC (US) AT&T Media  Holdings Inc. (US) AT&T MVPD Group  Holdings, LLC (US) The AT&T MVPD  Group, LLC (US) Warner Media Content Holdings LP (US) AT&T Content Holdings I, LLC (US) 42.1% AT&T Venture  Investments, LLC (US) AT&T Diversified  MVPD Holdings LLC (US) AT&T MVPD  Holdings LLC (US) 0.7% 5 6 Cast Media  Holdings, LLC (US) 

 

Page 40 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C7: On February 28, 2022, WMCH I LLC  borrowed from AT&T in an amount equal to the fair  WMCH. Step C8: On February 28, 2022, MVPD Holdings  transferred its 57.02% interest in WMCH to WMCH I,  LLC in exchange for cash consideration equal to the  fair market value of the 57.02% interest in WMCH  WMCH 57.2% Interest Transfer US Federal Income Tax Considerations The WMCH 57.2% Interest Transfer is intended to  be treated as a taxable Section 1001 exchange. AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) Warner Media, LLC (US) AT&T Media  Holdings Inc. (US) AT&T MVPD Group  Holdings, LLC (US) The AT&T MVPD  Group, LLC (US) Warner Media Content Holdings LP (US) AT&T Content Holdings I, LLC (US) 57.2% AT&T Diversified  MVPD Holdings LLC (US) AT&T MVPD  Holdings LLC (US) 42.1% 0.7% 7 8 Cast Media  Holdings, LLC (US) 

 

Page 41 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C9: On February 28, 2022, MVPD Group  Holdings distributed 100% of the outstanding stock  Second MVPD Group  Holdings Distribution . US Federal Income Tax Considerations The Second MVPD Group Holdings Distribution is  intended to be disregarded for US federal income tax  purposes. AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 57.9% Warner Media, LLC (US) AT&T Media  Holdings Inc. (US) AT&T MVPD Group  Holdings, LLC (US) Warner Media Content Holdings LP (US) AT&T Content Holdings I, LLC (US) 42.1% 9 Cast Media  Holdings, LLC (US) 

 

Page 42 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Completed Transaction Steps Step C10: On March 1, 2022, AT&T Content  Step C11: On March 1, 2022, AT&T MH changed its  US Federal Income Tax Considerations None. AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 57.9% Warner Media, LLC (US) Warner Media  Digital Holdings Inc. (US) Warner Media Content Holdings LP (US) Warner Media  Content Holdings  III, LLC (US) 42.1% 11 10 Cast Media  Holdings, LLC (US) 

 

Page 43 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WMCH Restructuring Simplified Ending Structure Entity to Remain with AT&T Entity to be Separated with WM Business Legend AT&T Inc. (US) Historic TW Inc. (US) Warner Media Content Holdings I, LLC (US) 57.9% Warner Media, LLC (US) Warner Media  Digital Holdings Inc. (US) AT&T MVPD Group  Holdings, LLC (US) The AT&T MVPD  Group, LLC (US) Warner Media Content Holdings LP (US) Warner Media  Content Holdings  III, LLC (US) 42.1% AT&T Venture  Investments, LLC (US) AT&T Diversified  MVPD Holdings LLC (US) AT&T MVPD  Holdings LLC (US) Cast Media  Holdings, LLC (US) 

 

Page 44 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Section D: Aircraft Restructuring 

 

Page 45 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Simplified Beginning Structure Entity to Remain with AT&T Entity to be Separated with WM Business Legend AT&T Inc.  (US) AT&T Corp. (US) AT&T Management  Services LLC (US) SBC Aviation  Holdings, Inc. (US) 82.86%17.14% FALCON  900EX-304, LLC (US) FALCON  7X-75, LLC (US) 

 

Page 46 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Completed Transaction Steps Step D1: On January 27, 2022, AT&T formed  MSI NewCo Step D2 (Not Depicted): On January 27, 2022,  shareholder resolutions for SBC Aviation Holdings,  SBC AH AH Merger and AT&T Corp. Redemption (defined  below) were adopted. Step D3: On January 29, 2022, SBC AH merged  with and into AT&T Management Services, LLC  AT&T MS SBC  AH Merger SBC AH distributed cash to AT&T Corp. in  AT&T Corp. Redemption US Federal Income Tax Considerations The SBC AH Merger, together with the AT&T Corp.  Redemption, is intended to qualify as a Section 332  liquidation.   AT&T Inc.  (US) AT&T MSI  NewCo, Inc. (US) 1AT&T Corp. (US) AT&T Management  Services LLC (US) SBC Aviation  Holdings, Inc. (US) 82.86%17.14% 3 3 FALCON  900EX-304, LLC (US) FALCON  7X-75, LLC (US) Merger 

 

Page 47 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Completed Transaction Steps Step D4: On January 29, 2022, AT&T MS merged  with and into MSI NewCo, with AT&T MS ceasing  to exist and MSI NewCo as the surviving legal  AT&T MS Merger US Federal Income Tax Considerations The AT&T MS Merger is intended to qualify as a  Section 368(a)(1)(F) reorganization.  AT&T Inc.  (US) AT&T Management  Services LLC (US) AT&T MSI  NewCo, Inc. (US) 4 FALCON  900EX-304, LLC (US) FALCON  7X-75, LLC (US) Merger 

 

Page 48 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Completed Transaction Steps Step D5: On January 29, 2022, MSI NewCo  converted to a limited liability company under  MSI  NewCo Conversion AT&T MS LLC Step D6: Within 75 days of January 29, 2022,  AT&T MS LLC will make an initial entity  classification election to be treated as a corporation  for US federal tax purposes, with an effective date  Initial AT&T MS LLC  CTB Election Step D7: On January 31, 2022, AT&T MS LLC  distributed all of the outstanding equity interests in  FALCON 900EX-304, LLC and FALCON 7X-75, Aircraft Distribution Step D8: Within 75 days of January 31, 2022,  AT&T MS LLC will elect to be disregarded as an  entity separate from AT&T for US federal tax  purposes, with an effective date of January 31,  AT&T MS LLC CTB Election US Federal Income Tax Considerations The MSI NewCo Conversion, together with the  Initial AT&T MS LLC CTB Election, is intended to  qualify as a Section 368(a)(1)(F) reorganization. The AT&T MS LLC CTB Election is intended to  qualify as a Section 332 liquidation, and the Aircraft  Distribution is intended to be disregarded for US  federal income tax purposes. AT&T Inc.  (US) AT&T Management  Services LLC (US) 87 FALCON  900EX-304, LLC (US) FALCON  7X-75, LLC (US) 5 6 

 

Page 49 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Completed Transaction Steps Step D9: On January 31, 2022, AT&T contributed  all of the outstanding equity interests in FALCON  900EX-304, LLC and FALCON 7X-75, LLC to WM  Aircraft Contribution US Federal Income Tax Considerations The Aircraft Contribution is intended to qualify as a  Section 351 exchange. AT&T Inc.  (US) AT&T Management  Services LLC (US) FALCON  900EX-304, LLC (US) FALCON  7X-75, LLC (US) Warner Media, LLC (US) 9 

 

Page 50 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Aircraft Restructuring Simplified Ending Structure Entity to Remain with AT&T Entity to be Separated with WM Business Legend AT&T Inc.  (US) AT&T Corp. (US) FALCON  7X-75, LLC (US) FALCON  900EX-304, LLC (US) AT&T Management  Services LLC (US) Warner Media, LLC (US) 

 

Page 51 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Section E: Internal Distributions 

 

Page 52 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Internal Distributions Simplified Beginning Structure AT&T Inc.  (US) Turner Entertainment  Networks, Inc. (US) Cable News  Network, Inc. (US) Warner Media, LLC (US) Historic TW Inc. (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend CTV Holdings  III Inc. (US) Home Box  Office, Inc. (US) Warner  Communications LLC (US) TEN Network  Holding, Inc. (US) Cartoon Network  Studios, Inc. (US) Turner Network  Television, Inc. (US) Courtroom Television  Network LLC (US) Arrow direction indicates flow  (i.e., creditor debtor) Intercompany Balances 

 

Page 53 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Internal Distributions 2 Transaction Steps Step E1: HBO distributes a portion of its intercompany receivable  owing from Warner Communications LLC to Warner Communications  HBO Distribution Step E2: Warner Communications LLC distributes a portion of its  intercompany receivable owing from Historic TW to Historic TW (the  Warner Communications LLC Distribution Step E3: CNN intercompany receivable owning from Historic TW to Historic TW (the  CNN Distribution US Federal Income Tax Considerations The HBO and CNN Distributions are intended to be treated as  intercompany distributions of the distributed receivables under Reg. § 1.1502-13(f).  Provided the intercompany receivables have a basis equal to their  face amount and fair market value, the distributions are not expected  to result in any adverse US federal income tax consequences. The Warner Communications LLC Distribution is intended to be  disregarded for US federal income tax purposes. AT&T Inc.  (US) Cable News  Network, Inc. (US) Warner Media, LLC (US) Historic TW Inc. (US) Home Box  Office, Inc. (US) Warner  Communications LLC (US) 1 3 

 

Page 54 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Internal Distributions Transaction Steps Step E4: CNS of its intercompany receivable owing from Historic TW to TEN Network  TEN Network Holding CNS Distribution Step E5: TNT of its intercompany receivable owing from Historic TW to TEN Network  TNT Distribution Step E6: TEN Network Holding distributes the receivables owing from  Historic TW received in the CNS and TNT Distributions to Turner  TEN TEN Network Holding  Distribution Step E7: CTN portion of its intercompany receivable owning from Historic TW to CTV  CTV Holdings III CTN Distribution Step E8: CTV Holdings III distributes the receivable owing from  CTV  Holdings II Distribution Step E9: TEN distributes the intercompany receivables owing from  Historic TW received in the TEN Network Holding and CTV Holdings II  TEN Distribution US Federal Income Tax Considerations The distributions described above are intended to be treated as  intercompany distributions of the distributed receivables under Reg. § 1.1502-13(f).  Provided the intercompany receivables have a basis equal to their  face amount and fair market value, the distributions are not expected  to result in any adverse US federal income tax consequences. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Turner Entertainment  Networks, Inc. (US) CTV Holdings  III Inc. (US) TEN Network  Holding, Inc. (US) Cartoon Network  Studios, Inc. (US) Turner Network  Television, Inc. (US) Courtroom Television  Network LLC (US) 4 6 5 7 8 9 

 

Page 55 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Internal Distributions Transaction Steps Step E10: Historic TW distributes a portion of its intercompany  Historic TW  Distribution Step E11: WM LLC distributes a $15 billion note payable owing from  WM LLC Promissory Note WM LLC  Promissory Note Distribution US Federal Income Tax Considerations The Historic TW Distribution is intended to be treated as an  intercompany distribution of the receivable owing from WM LLC to  Historic TW under Reg. § 1.1502-13(f).  Provided the intercompany receivable owing from WM LLC has a  basis equal to its face amount and fair market value, the Historic TW  Distribution is not expected to result in any adverse US federal income  tax consequences. The WM LLC Promissory Note Distribution is intended to be treated as  an intercompany distribution of the WM LLC Promissory Note under  Reg. § 1.1502-13(f), and AT&T should have a basis in the WM LLC  Promissory Note equal to its fair market value under Section 301(d). AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) 10 11 Arrow direction indicates flow  (i.e., creditor debtor) WM LLC Promissory Note 

 

Page 56 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Internal Distributions Simplified Ending Structure AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend Arrow direction indicates flow  (i.e., creditor debtor) WM LLC Promissory Note Turner Entertainment  Networks, Inc. (US) Cable News  Network, Inc. (US) CTV Holdings  III Inc. (US) Home Box  Office, Inc. (US) Warner  Communications LLC (US) TEN Network  Holding, Inc. (US) Cartoon Network  Studios, Inc. (US) Turner Network  Television, Inc. (US) Courtroom Television  Network LLC (US) 

 

Page 57 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Post-Internal Separation Ending Structure 

 

Page 58 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Post-Internal Separation Ending Structure Relevant Entities Only AT&T Inc. Shareholders 42.1% WM  Max LLC  WM Max  Holdings, LLC Turner Broadcasting System, Inc. Historic  TW Inc. Warner Media  Content Holdings III, LLC Warner Media Content  Holdings I, LLC 57.9% Warner Media Content  Holdings LP Warner Media, LLC WM Interactive Media  Holdings LLC 25% 25% 1% Home Box  Office, Inc. Warner  Communications LLC CNN Interactive  Group, Inc. Cable News  Network, Inc. FALCON  900EX-304,  LLC FALCON  7X-75, LLC WM Columbus Holdings, Inc. WM Max  Holdings II, LLC 49% 80%  Vote Entity to Remain with AT&T Entity to be Separated with WM Business Legend NQPS + Common           80% Vote Warner Media  Digital Holdings  Inc. WM LLC  Promissory  Note Arrow direction indicates flow  (i.e., creditor debtor) 

 

Page 59 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA External Separation 

 

Page 60 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA External Separation AT&T Inc.  (US) Transaction Steps Step 1: AT&T contributes (i) 100% of the  outstanding stock of WM LLC, WM Max Holdings,  LLC and Warner Media Digital Holdings, Inc., (ii)  the WM Columbus Holdings High-Vote Common  Stock and NQPS, (iii) the WM LLC Promissory  Note and (iv) existing intercompany demand  notes owing from various WarnerMedia  subsidiaries to newly formed Magallanes, Inc.  (i.e., SpinCo) in exchange for (i) shares of SpinCo  stock, (ii) cash proceeds from external borrowing  SpinCo  Contribution Step 2: AT&T distributes all of the outstanding  stock of SpinCo to its shareholders (together with  External  Separation US Federal Income Tax Considerations The External Separation is intended to qualify as  a reorganization described in Sections  368(a)(1)(D) and 355. Warner Media, LLC (US) WM Columbus  Holdings, Inc. (US) Warner Media  Digital Holdings  Inc. (US) WM Max  Holdings, LLC  (US) NQPS + Common           80% Vote WM LLC  Promissory  Note Arrow direction indicates flow  (i.e., creditor debtor) Magallanes, Inc. (US) Shareholders 1 2 

 

Page 61 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Post-External Separation Ending Structure 

 

Page 62 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Post-External Separation Ending Structure Relevant Entities Only Magallanes, Inc. (US) Shareholders 42.1% WM  Max LLC  WM Max  Holdings, LLC Turner Broadcasting System, Inc. Historic  TW Inc. Warner Media  Content Holdings III, LLC Warner Media Content  Holdings I, LLC 57.9% Warner Media Content  Holdings LP Warner Media, LLC WM Interactive Media  Holdings LLC 25% 25% 1% Home Box  Office, Inc. Warner  Communications LLC CNN Interactive  Group, Inc. Cable News  Network, Inc. FALCON  900EX-304,  LLC FALCON  7X-75, LLC WM Columbus Holdings WM Max  Holdings II, LLC 49% 80%  Vote Entity to Remain with AT&T Entity to be Separated with WM Business Legend NQPS + Common           80% Vote Warner Media  Digital Holdings  Inc. WM LLC  Promissory  Note Arrow direction indicates flow  (i.e., creditor debtor) 

 

Page 1 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Separation 

 

Page 2 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Separation Background WM  Mexico Subs Due to Mexican regulatory constraints, the legal ownership/operations the WM Mexico  Subs must be retained, directly or indirectly, by AT&T for a period of time following the  external spin-off. The steps below are designed to move the equity interests in the WM Mexico Subs out  from under WM LLC. Entity Name Owner(s) Subsidiaries Warner Home Video Mexico, S.A. de C.V. Warner Bros. Entertainment Inc. (US) (99.998%); Warner Bros. Home Entertainment Inc. (US) (0.002%) None Warner Home Video Service Company S.A de  C.V. Warner Bros. Entertainment Inc. (US) (99.998%); Warner Bros. Home Entertainment Inc. (US) (0.002%) None Turner International Mexico S.A. de C.V. Turner International Latin America, Inc. (US)  (99.97%); Turner International Holding LLC (US) (0.03%) 9.48% of Imagen  Satelital S.A.  (Argentina) HBO Ole Marketing Services, S. de R.L. de  C.V. HBO Ole International Sales Company, LTD. (BVI)  (99.97%); LA International Ltd. (BVI) (0.03%) None Mexico Channels Advertising Services S.de  R.L. de C.V.  HBO Ole Distribution LLC (US) (99%) Mexico Advertising LLC (US) (1%) None 

 

Page 3 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Separation In connection with the Mexico Separation steps, a newly formed subsidiary of AT&T  (referred to as WM Mexico HoldCo LLC) may enter into one or more agreements with  WarnerMedia entities possessing Mexican IP to effect a transfer of such IP to WM  Mexico HoldCo LLC. WM Mexico HoldCo LLC is also expected to enter into a Distribution Agreement with  WarnerMedia Direct Latin America LLC. Once Mexican regulatory approval is received, WM Mexico HoldCo LLC (the indirect  owner of the Mexico Subs and direct owner of certain Mexico assets) will be  transferred by AT&T to Magallanes, Inc. in exchange for nominal consideration. For US  federal income tax purposes, it is expected that the subsequent transfer will relate back  to and be treated as having occurred pursuant to the external spin-off.  Consideration to be given to the nature of any interim agreements between WBD and  WM Mexico HoldCo LLC for the operation of the WarnerMedia Mexico operations. 

 

Page 4 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Legend A corporation for US federal income tax purposes A partnership for US federal income tax purposes An entity that is disregarded for US federal income tax purposes A partnership for US federal income tax purposes and a corporation for  foreign tax purposes A branch, rep office, asset, individual or trust Dashed arrows indicate cash contributions, distributions, loans, and  interest flows, as appropriate, and bold arrows indicate non-cash asset  transfers. Arrow direction indicates flow (i.e., creditor debtor) Newly formed LLCs, corporations, or partnerships Indirect ownership 

 

Page 5 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Separation Simplified Beginning Structure AT&T Inc.  (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend Warner Bros. Home Entertainment Inc. (US) Warner Home Video  Mexico S.A de C.V. (MX) 99.998% 0.002% Warner Home Video  Service Company  S.A de C.V. (MX) 0.002% 99.998% Historic TW Inc. (US) Turner International  Latin America, Inc. (US) Turner International  Holding LLC (US) Turner International  Mexico S.A. de C.V. (MX) Imagen  Satelital S.A. (AG) 99.97% 0.03% HBO Ole  Distribution LLC (US) Mexico Advertising  LLC (US) Mexico Channels  Advertising Services  S.de R.L. de C.V. (MX) 99% 1% HBO Ole  Partners (US) LA International Ltd. (BVI) HBO OLE  Distribution I, A.V.V. (Aruba) HBO Ole  International  Sales Company, Ltd. (BVI) HBO Ole  Marketing Services,  S. de R.L. de C.V. (MX) HBO Ole International  Marketing Ltd.  Sucursal Argentina Cable News  Network, Inc. (US) Cable News  International, Inc. (US) HBO Ole International  Marketing Ltd.  (BVI) Mexico Bureau of  Cable News  International (MX) 0.033% 99.967% 85.5% 9.5% 5% 

 

Page 6 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WHV Mexico and WHVSC Transfers 

 

Page 7 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WHV Mexico and WHVSC Transfers Transaction Steps Step F1: On February 17, 2022, AT&T formed WM Mexico HoldCo  Mexico HoldCo initial entity classification election to be classified as a corporation for  US federal tax purposes.  Step F2: On March 8, 2022, Warner Bros. Entertainment Inc.  WBEI WB Mexico Holdco I , a limited liability company that is disregarded as an entity separate  from WBEI for US federal tax purposes. Step F3: On March 8, 2022, Warner Bros. Home Entertainment Inc.  WBHE WB Mexico Holdco  II , a limited liability company that is disregarded as an entity separate  from WB Home Entertainment for US federal tax purposes. US Federal Income Tax Considerations None. AT&T Inc.  (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Warner Bros. Home Entertainment Inc. (US) WB Mexico  Holdco II, LLC (US) WB Mexico  Holdco I, LLC (US) WM Mexico  HoldCo LLC (US) 1 2 3 

 

Page 8 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WHV Mexico and WHVSC Transfers Transaction Steps Step F4 (Not Depicted): At least one day before Step F5, WBEI and  WB Mexico Holdco I enter into a binding written agreement to  WB Binding  Agreement Step F5: WHV Mexico exchange for cash equal to ~99.9% of the stated capital of WHV  WHV Mexico Redemption Step F6.1: At least one day after Step F5, WBEI contributes the cash  received in the WHV Mexico Redemption to WB Mexico Holdco I (the  First WB Mexico Holdco I Contribution Step F6.2: On the same day as Step 6.1, but after Step 6.1, WB  Mexico Holdco I contributes the cash received in the First WB Mexico  Holdco I Contribution to WHV Mexico in exchange for newly issued  WHV Mexico Contribution Step F7: At least one day after Step 6.2, WBEI contributes its  remaining shares of WHV Mexico stock to WB Mexico Holdco I (the  Second WB Mexico Holdco I Contribution Step F8: On the same day as Step 7, but after Step 7, WBHE  contributes its 0.002% interest in WHV Mexico to WB Mexico Holdco  II. US Federal Income Tax Considerations Together, the WHV Mexico Redemption, First WB Mexico Holdco I  Contribution, WHV Mexico Contribution and Second WB Mexico  Holdco I Contribution are intended to be disregarded or treated as a  Section 368(a)(1)(E) recapitalization for US federal income tax  purposes.  AT&T Inc.  (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Warner Bros. Home Entertainment Inc. (US) Warner Home Video  Mexico S.A de C.V. (MX) 99.998% 0.002% WB Mexico  Holdco II, LLC (US) WB Mexico  Holdco I, LLC (US) 5 6.1 7 8 6.2 

 

Page 9 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WHV Mexico and WHVSC Transfers Transaction Steps Step F9: On the same day as Step 7, but after Step 7, WBEI  contributes its 99.998% interest in Warner Home Video Service  WHVSC Third  WB Mexico Holdco I Contribution Step F10: On the same day as Step 8, but after Step 8, WBHE  contributes its 0.002% interest in WHVSC to WB Mexico Holdco II. US Federal Income Tax Considerations The Third WB Mexico Holdco I Contribution is intended to be  disregarded for US federal income tax purposes.  AT&T Inc.  (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Warner Bros. Home Entertainment Inc. (US) Warner Home Video  Mexico S.A de C.V. (MX) 0.002% WB Mexico  Holdco II, LLC (US) WB Mexico  Holdco I, LLC  (US) 99.998% 9 Warner Home Video  Service Company  S.A de C.V. (MX) 0.002% 99.998% 10 

 

Page 10 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA WHV Mexico and WHVSC Transfers Transaction Steps Step F11: On the same day as Step 9, but after Step 9, WBEI  transfers all of the outstanding equity interests in WB Mexico Holdco I  to Mexico HoldCo in exchange for cash equal to the fair market value  WB Mexico Holdco I Transfer Step F12: On the same day as Step 10, but after Step 10, WBHE  transfers all of the outstanding equity interests in WB Mexico Holdco II  to Mexico HoldCo in exchange for cash equal to the fair market value  Transfer WHV Mexico  and WHVSC Transfer US Federal Income Tax Considerations The WHV Mexico and WHVSC Transfer is expected to be treated as a  taxable Section 1001 exchange. AT&T Inc.  (US) Warner Media, LLC (US) Warner Bros.  Entertainment Inc. (US) Warner Bros. Home Entertainment Inc. (US) Warner Home Video  Mexico S.A de C.V. (MX) 0.002% WB Mexico  Holdco II, LLC (US) WB Mexico  Holdco I, LLC (US) WM Mexico  HoldCo LLC (US) 99.998% 12 Warner Home Video  Service Company  S.A de C.V. (MX) 0.002% 99.998% 11 

 

Page 11 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Turner Mexico Transfer 

 

Page 12 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Turner Mexico Transfer Transaction Steps Step F13: On March 8, 2022, Turner International Latin America, Inc.  ( TILA ) formed Turner Mexico Holdco, LLC ( Turner Mexico  Holdco ), a limited liability company that is disregarded as an entity  separate from TILA for US federal tax purposes. Step F14 (Not Depicted): At least one day before Step F15, TILA and  Turner Mexico Holdco enter into a binding agreement to undertake  Turner Binding Agreement Step F15: Turner Mexico exchange for cash equal to approximately 99% of the stated capital of  Turner Mexico Redemption Step F16.1: At least one day after Step F15, TILA contributes the cash  received in the Turner Mexico Redemption to Turner Mexico Holdco  First Turner Mexico Holdco Contribution Step F16.2: On the same day as Step 16.1, but after Step 16.1,  Turner Mexico Holdco contributes the cash received in the First Turner  Mexico Holdco Contribution to Turner Mexico in exchange for newly  Turner Mexico  Contribution Step F17: At least one day after Step 16.2, TILA contributes its  remaining shares of Turner Mexico stock to Turner Mexico Holdco (the  Second Turner Mexico Holdco Shares Contribution US Federal Income Tax Considerations Together, the Turner Mexico Redemption, First Turner Mexico Holdco  Contribution, Turner Mexico Contribution and Second Turner Mexico  Holdco Contribution are intended to be disregarded or treated as a  Section 368(a)(1)(E) recapitalization for US federal income tax  purposes.  AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Turner International  Latin America, Inc. (US) Turner International  Holding LLC (US) Turner International  Mexico S.A. de C.V. (MX) 99.97% 0.03% Turner Mexico  Holdco, LLC (US) 13 15 17 16.2 16.1 

 

Page 13 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Turner Mexico Transfer Transaction Steps Step F18: On the same day as Step 17, but after Step F17, TILA  transfers all of the outstanding equity interests in Turner Mexico  Holdco Turner International to Mexico HoldCo in exchange for cash equal to the fair market value  of Turner Mexico Holdco and Turner International Holding, LLC (the  Turner Mexico Transfer US Federal Income Tax Considerations The Turner Mexico Transfer is expected to be treated as a taxable  Section 1001 exchange. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Turner International  Latin America, Inc. (US) Turner International  Holding LLC (US) Turner International  Mexico S.A. de C.V. (MX) 99.97%0.03% Turner Mexico  Holdco, LLC (US) WM Mexico  HoldCo LLC (US) 18 

 

Page 14 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Asset Transfer Transaction Steps Step F19: Mexico Bureau of Cable News  International transfers any physical assets located  in Mexico to Turner Mexico in exchange for cash  equal to the book fair market value of the assets  Mexico Asset Transfer US Federal Income Tax Considerations The Mexico Asset Transfer is expected to be  treated as a taxable Section 1001 exchange to the  extent of the consideration received in the  exchange.  To the extent the fair market value of the assets  transferred in the Mexico Asset Transfer exceed the  consideration received in exchange therefore, a pro  rata portion of each asset transferred is expected to  be deemed distributed up the chain of ownership by  CNN to AT&T, followed by a deemed contribution  by AT&T to Turner Mexico. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Cable News  Network, Inc. (US) Cable News  International, Inc. (US) Mexico Bureau of  Cable News  International (MX) WM Mexico  HoldCo LLC (US) Turner International  Holding LLC (US) Turner International  Mexico S.A. de C.V. (MX) 99.97%0.03% Turner Mexico  Holdco, LLC (US) 19 

 

Page 15 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Channels and HBO Ole Marketing  Services Transfer 

 

Page 16 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Channels and HBO Ole Marketing  Services Transfer Transaction Steps Step F20: HBO BVI distributes HBO Ole International Marketing Ltd. and any other assets  to be separated with the WarnerMedia business to HBO Ole  HBO Aruba HBO BVI Distribution Step F21: LA International Mexico Holdco, LLC , a limited liability  company that is disregarded as an entity separate from LA  International for US federal tax purposes. Step F22: LA International contributes its 0.033% interest in HBO Ole  HBO Ole Marketing  Services HBO Mexico Holdco  Contribution US Federal Income Tax Considerations The HBO BVI Distribution is expected to be a Section 301 distribution  or Section 355 distribution (only with respect to the shares of HBO Ole  International Marketing Ltd.). The HBO Mexico Holdco Contribution is expected to be disregarded  for US federal income tax purposes. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) HBO Ole  Partners (US) LA International Ltd. (BVI) HBO OLE  Distribution I, A.V.V. (Aruba) HBO Ole  International  Sales Company, Ltd. (BVI) HBO Ole  Marketing Services,  S. de R.L. de C.V. (MX) HBO Ole International  Marketing Ltd.  Sucursal Argentina HBO Mexico  Holdco, LLC (US) 0.033% 99.967% 21 HBO Ole International  Marketing Ltd.  (BVI) 22 20 

 

Page 17 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Channels and HBO Ole Marketing  Services Transfer Transaction Steps Step F23: Mexico Advertising LLC transfers its 1% equity interest in  Mexico  Channels Mexico  Channels Nominal Interest Transfer Step F24: HBO Ole Distribution LLC transfers its 99% equity interest  in Mexico Channels to HBO BVI for cash equal to the fair market value  of its 99% equity interest in Mexico Channels (together with the  Mexico Channels  Interest Transfer US Federal Income Tax Considerations The Mexico Channels Interest Transfer is expected to be treated as a  taxable Section 1001 exchange.  AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) HBO Ole  Distribution LLC (US) Mexico Advertising  LLC (US) Mexico Channels  Advertising Services  S.de R.L. de C.V. (MX) 99%1% HBO Ole  Partners (US) LA International Ltd. (BVI) HBO OLE  Distribution I, A.V.V. (Aruba) HBO Ole  International  Sales Company, Ltd. (BVI) HBO Ole  Marketing Services,  S. de R.L. de C.V. (MX) HBO Mexico  Holdco, LLC (US) 0.033% 99.967% 23 24 

 

Page 18 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Channels and HBO Ole Marketing  Services Transfer Transaction Steps Step F25: HBO Aruba transfers all of the outstanding shares in HBO  BVI to Mexico HoldCo for in exchange for cash equal to the fair market  HBO BVI Transfer Step F26: LA International Ltd. Transfers of the outstanding equity  interests in HBO Mexico Holdco to Mexico HoldCo in exchange for  cash equal to the fair market value of HBO Mexico Holdco (together  Mexico Channels and HBO Ole  Marketing Services Transfer US Federal Income Tax Considerations The Mexico Channels and HBO Ole Marketing Services Transfer is  expected to be treated as a taxable Section 1001 exchange. AT&T Inc.  (US) Warner Media, LLC (US) Historic TW Inc. (US) Mexico Channels  Advertising Services  S.de R.L. de C.V. (MX) 99%1% HBO Ole  Partners (US) LA International Ltd. (BVI) HBO OLE  Distribution I, A.V.V. (Aruba) HBO Ole  International  Sales Company, Ltd. (BVI) HBO Ole  Marketing Services,  S. de R.L. de C.V. (MX) HBO Mexico Holdco, LLC (US) 0.033% 99.967% WM Mexico  HoldCo LLC (US) 2526 

 

Page 19 FOR USE IN DISCOVERY-WARNERMEDIA INTEGRATION PLANNING ONLY WARNERMEDIA CONFIDENTIAL INFORMATION PROVIDED UNDER THE NDA Mexico Separation Simplified Ending Structure Warner Media, LLC (US) Historic TW Inc. (US) WM Mexico  HoldCo LLC (US) Turner International  Holding LLC (US) Turner International  Mexico S.A. de C.V. (MX) 99.97%0.03% Turner Mexico  Holdco, LLC (US) Warner Home Video  Mexico S.A de C.V. (MX) 0.002% WB Mexico  Holdco II, LLC (US) WB Mexico  Holdco I, LLC (US) 99.998% Warner Home Video  Service Company  S.A de C.V. (MX) 99.998% Mexico Channels  Advertising Services  S.de R.L. de C.V. (MX) 99%1% HBO Ole International  Sales Company, Ltd. (BVI) HBO Ole  Marketing Services,  S. de R.L. de C.V. (MX) HBO Mexico  Holdco, LLC (US) 0.033% 99.967% 0.002% AT&T Inc.  (US) Entity to Remain with AT&T Entity to be Separated with WM Business Legend Imagen  Satelital S.A.* (AG) 9.5% *The remaining 90.5% interest in Imagen Satelital S.A. will be retained by  the existing shareholders.Exhibit 10.1

Immunome, Inc.
​
second amended and restated Non-Employee Director Compensation Policy
​

​
​
Each member of the Board of Directors (the “Board”) of Immunome, Inc. (the “Company”) who is a non- employee director of the Company (each such member, a “Non-Employee Director”) will receive the compensation described in this Second Amended and Restated Non-Employee Director Compensation Policy (the “Policy”) for their Board service following the closing of the initial public offering of the Company’s common stock (the “IPO”).
​
The Non-Employee Director Compensation Policy first became effective upon the execution of the underwriting agreement in connection with the IPO (the “Effective Date” and was amended and restated as of July 13, 2021 (as so amended and restated, the “Original Policy”). The Policy further amends and restates, and supersedes in its entirety, the Original Policy as of June 15, 2022. The Policy may be further amended and/or restated at any time in the sole discretion of the Board or the Compensation Committee of the Board.
​
A Non-Employee Director may decline all or any portion of their compensation by giving notice to the Company prior to the date cash is to be paid or equity awards are to be granted, as the case may be.
​
Annual Cash Compensation
​
Commencing at the beginning of the first calendar quarter following the Effective Date, each Non- Employee Director will receive a cash retainer for service on the Board and committees of the Board. The annual cash retainers will be payable in arrears in four equal quarterly installments within 30 days afterthe end of each calendar quarter in which the service occurred, provided that the amount of such payment will be prorated for any portion of such quarter that the Non-Employee Director is not serving on the Board.
​
		1.	Annual Board Service Retainer:

		a.	All Non-Employee Directors: $35,000

b.Retainer for non-executive chairperson of the Board: $70,000 (in lieu of amount listed above)
​
		2.	Annual Committee Member Service Retainer (in addition to Annual Board Service Retainer):	

		a.	Member of the Audit Committee: $7,500

		b.	Member of the Compensation Committee: $5,000

		c.	Member of the Nominating and Corporate Governance Committee: $4,000

		d.	Member of the Science and Technology Committee: $4,000

​
		3.	Annual Committee Chair Service Retainer (inclusive of the Annual Committee Member Service Retainer):	

		a.	Chairperson of the Audit Committee: $15,000

		b.	Chairperson of the Compensation Committee: $10,000

		c.	Chairperson of the Nominating and Corporate Governance Committee: $8,000

		d.	Chairperson of the Science and Technology Committee: $8,000

​
Equity Compensation
​
Equity awards will be granted under the Company’s 2020 Equity Incentive Plan or any successor equity
​

​

Exhibit 10.1
​

incentive plan (the “Plan”). All stock options granted under the Policy will be nonstatutory stock options, with a term of ten years from the date of grant, subject to earlier termination upon a termination of the Continuous Service (as defined in the Plan) of the Non-Employee Director and an exercise price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying shares of commons stock of the Company on the date of grant. Vesting schedules for equity awards will be subject to the non- employee director’s continuous service on each applicable vesting date.
​
		(a)	Automatic Equity Grants.

​

(i)Initial Grant for New Directors. Without any further action of the Board, each person who, after the Effective Date, is elected or appointed for the first time to be a Non-Employee Director will automatically, upon the date of their initial election or appointment to be a Non-Employee Director, be granted an initial, one-time equity award of options to purchase 13,000 shares of common stock (the “Initial Grant”). Each Initial Grant will vest in equal quarterly installments following the date of grant suchthat the option is fully vested on the third anniversary of the date of grant, subject to the Non-Employee Director’s Continuous Service through each applicable vesting date.
​
(ii)Annual Grant. Without any further action of the Board, on the business day following each annual meeting of stockholders of the Company, commencing with the 2021 annual meeting of the stockholders, each person who is then a Non-Employee Director will automatically be granted an option to purchase 6,500 shares of common stock (the “Annual Grant”); provided, however, that if such Non- Employee Director has not served as a member of the Board for 12 months prior to the applicable annual stockholder meeting, the number of shares subject to such individual’s Annual Grant will be pro-rated based on the number of full months served on the Board, rounded to the nearest whole share. Each Annual Grant will vest in equal quarterly installments over the four quarters following the date of grant such that the option is fully vested on the first anniversary of the date of grant, (i) subject to the Non-Employee Director’s Continuous Service through each applicable vesting date and (ii) that no Annual Grant will be granted to a Non-Employee Director in the same calendar year that such person received their Initial Grant.
​
(b)Change in Control. Notwithstanding the foregoing vesting schedules, for each Non-Employee Director who remains in Continuous Service with the Company until immediately prior to the closing of a “Change in Control” (as defined in the Plan), the shares subject to their then-outstanding Initial Grantor Annual Grant that were granted pursuant to the Policy will become fully vested immediately prior to the closing of such Change in Control.
​

(c)Remaining Terms. The remaining terms and conditions of each stock option, including transferability, exercisability, termination and expiration, will be as set forth in the Company’s standard Option Agreement, in the form adopted from time to time by the Board.
​
Expenses
​
The Company will reimburse each Non-Employee Director for reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in Board and committee meetings; provided, that such Non- Employee Director timely submit to the Company appropriate documentation substantiating such expenses in accordance with the Company’s travel and expense policy, as in effect from time to time.
​
​
Approved: September 5, 2020
Effective Date of Original Plan: October 2, 2020
Effective Date of Plan (Amended and Restated): July 13, 2021

​

Exhibit 10.1
​

Effective Date of Plan (Second Amended and Restated ): June 15, 2022

​

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