Document:

Exhibit
10.3

 

“FORM
OF”

 

MEMBERSHIP
INTEREST PLEDGE AGREEMENT

 

 

THIS MEMBERSHIP INTEREST
PLEDGE AGREEMENT (this “Agreement”) is made as of this 26th day of May, 2020 (“Effective
Date”), by Taronis-TGS, LLC (“Pledgor”), for the benefit of [                 ].
The term “Pledgee” shall mean [  ], in [his/her/its] capacity as collateral agent for [        ].

 

RECITALS:

 

WHEREAS,
[                 ], owns all of the membership
interest in and to Pledgor; 

 

WHEREAS,
[                            ]
and Pledgor have executed a Promissory Note as co-makers (the “Note”) in the amount of Four Million
and 00/100 Dollars (US$4,000,000), on even date herewith for the benefit of Pledgee.

 

WHEREAS,
as additional collateral and security the Pledgor has agreed to pledge one hundred percent of its ownership of [                              ](“Ownership
Interest”), to Pledgee. 

 

WHEREAS,
the Pledgor has agreed to pledge to the Pledgee the Ownership Interest, on the terms and conditions set forth below, to secure
the full performance of the Pledgor’s obligations under the Note and this Agreement.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the matters described in the foregoing Recitals, which Recitals are incorporated herein and made
a part hereof, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Pledgor
hereby agrees as follows:

 

1.
Definitions.

 

(a)
Certificates. The term “Certificates” means the certificates evidencing ownership of the Collateral.

 

(b)
Collateral. The term “Collateral” means the Ownership Interest. 

 

(c)
Company. The term “Company” means [                              ].

 

(d)
Cure Period. The term “Cure Period” shall having the meaning set forth in the Note relating to any Event of
Default. 

 

(e)
Event of Default. The term “Event of Default” shall have the meanings set forth in the Note. 

 

(f)
Note. The term “Note” means that certain Secured Promissory Note dated May 26, 2020, in the amount
of Four Million and 00/100 Dollars (US$4,000,000), tendered by Taronis Fuels, Inc. and Pledgor as co-makers
to the Pledgee.

 

2.
Pledge of Membership Interests and Creation of Security Interest. The Pledgor pledges the Collateral to the Pledgee to
secure the full and punctual payment and discharge of the Note, and grants to the Pledgee a continuing security interest in the
Collateral and the Certificate. At the time of execution of this Agreement, Pledgor shall deliver to the Pledgee the Certificate
and an Irrevocable Transfer Power relating to the Collateral executed in blank, to be held by Pledgee in escrow subject to the
terms and conditions of this Agreement. 

 

    	 

     

    

 

3.
Covenants and Warranties of Pledgor. The Pledgor covenants and warrants as follows:

 

(a)
Payment of Indebtedness. The Pledgor will promptly pay the Note amounts when due. In doing so, the Pledgor shall
comply fully with all terms and provisions of the Note and this Agreement, and any other related documents.

 

(b)
Ownership of Collateral. The Pledgor has marketable title to the Collateral, free from prior liens, encumbrances, or pledges
of any kind. 

 

(c)
Liens. The parties will neither create nor permit the creation of any lien or other encumbrance of the Collateral
without each party’s the prior written consent.

 

(d)
Transfers. The parties will neither make nor permit any transfer of the Collateral, except as provided in this Agreement,
without each party’s prior written consent.

 

(e)
Maintain Corporation Existence. The Pledgor shall cause the Company to maintain its corporate existence in the State
of [                ] and comply with all applicable
federal, state, or local statutes and regulations. Pledgor shall maintain its corporate existence in the State of [                ]
and comply with all applicable federal, state, or local statutes and regulations. Pledgor shall provide Pledgee at least 30 days
written notice of any change in its corporate status or its principal office location.

 

(g)
Merger or Sale of Assets. The Pledgor shall not permit the Company to enter into any merger agreement or to sell any material
asset without prior written consent of the Pledgee, which consent will not be unreasonably withheld. 

 

4.
Duties of Pledgee. The Pledgee covenants and warrants as follows:

 

(a)
Return of Collateral. The Pledgee shall release the security interest granted herein and ensure the return of the Certificate
to the Pledgor and destruction of the Irrevocable Transfer Power upon the complete and satisfactory performance of the Note. 

 

(b)
Protection of Collateral. Pledgee shall not sell the Collateral or engage in any acts which will cause or contribute
to the depreciation of the value of the Collateral, other than to take action necessary to levy upon the Collateral pursuant to
an uncured Event of Default. 

 

5.
Exercise of Member Rights.

 

(a)
Receipt of Dividends and/or Distributions. As long as no Event of Default has occurred, the Pledgor shall have the right
to receive and retain any dividends or other distributions approved and paid on the Collateral.

 

(b)
Right to Vote. As long as no Event of Default has occurred, the Pledgor may vote the Collateral for all purposes allowed
within the restrictions set by this Agreement, the Note, and related documents. 

 

(c)
Compliance with Securities Laws. The requirements of United States and [  ] state securities laws, or
other applicable securities laws, and similar laws analogous in purpose or effect may limit the Pledgee’s actions if the
Pledgee elects, following an Event of Default, to dispose of any part of the Collateral, and also may limit the subsequent transferee’s
ability to transfer the Collateral. Accordingly, the Pledgee agrees that if the Pledgee sells the Collateral at any public or
private sale, the Pledgee will only effect that the sale in accordance with applicable securities laws.

 

    	 

     

    

 

6.
Default and Return of Collateral.

 

(a)
Notice of Default and Cure. The Pledgee shall deliver notice of any Event of Default to the Pledgor. The Pledgor
shall have the right to cure any Event of Default in accordance with the Cure Period specified under the Note. If the Pledgor
fails to cure an Event of Default as described in the Note, then, after expiration of the Cure Period specified in the Note, the
Pledgee may pursue any and all remedies provided in this Agreement.

 

(b)
Pledgee May Register Shares. Should an Event of Default occur, upon expiration of any applicable Cure Period specified
in the Note, the Pledgee may immediately cause the Collateral to be transferred to the Pledgee’s name on the ownership records
of the Company and may exercise any right normally incident to the ownership of the Collateral.

 

(c)
Sale of Collateral. Upon the transfer of the Collateral the Pledgee, the Pledgee may sell all or any part of the Collateral
at public or private sale. The Pledgor may purchase all or any part of the Collateral at the sale and may “credit bid”
the amount due under the Note in such sale. Proceeds of any sale shall be applied first to pay all costs and expenses related
to the Event of Default and sale of the Collateral, including all attorneys’ fees and the costs and expenses of the Pledgee,
and second, to pay all amounts owed on the Note on the date of sale. The balance of the proceeds, if any, shall be remitted to
the Pledgor. Pledgor agrees that Pledgee may retain the Collateral in full satisfaction of the Note in lieu of a public or private
sale of the Collateral.

 

(d)
Remedies Cumulative. Upon and Event of Default, the Pledgee shall have all rights available to the Pledgee at law or in
equity, including all rights available under the [ Commercial Code ], and all rights and remedies granted under this Agreement,
the Note, and any related documents. These rights and remedies shall be cumulative and may be exercised singly or concurrently
with all other rights and remedies the Pledgee may have. 

 

7.
Termination of Agreement. This Agreement shall remain in effect until the obligations under the Note have been discharged
in full, at which time it shall terminate, and the Pledgee shall release the security interest granted herein, return the Collateral
to the Pledgor or its assigns, and destroy the Irrevocable Transfer Power.

 

8.
Attorney-in-Fact. Upon any uncured Event of Default, Pledgor hereby irrevocably appoints Pledgee as Pledgor’s attorney-in-fact
(such power of attorney being coupled with an interest) and proxy to take actions with respect to the Collateral, including, without
limitation, actions necessary for Pledgee to vote or grant proxies to vote the Collateral, exercise any rights relating to the
Collateral including the right exercise any right of appraisal and redemption under applicable laws relating to the equity securities
issued by the issuer of the Collateral; to file, prosecute, compromise, settle and otherwise participate in actions against the
issuer of the Collateral or against such issuer’s officers and directors and other persons having any duty to the holders
of equity securities issued by such issuer; and to assign, pledge, convey or otherwise transfer title in or dispose of the Collateral
in accordance with the terms hereof to anyone else.

 

    	 

     

    

 

9.
Miscellaneous.

 

(a)
Waiver. No right or obligation under this Agreement will be deemed to have been waived unless evidenced by a writing
signed by the party against which the waiver is asserted, or by its duly authorized representative. Any waiver will be effective
only with respect to the specific instance involved and will not impair or limit the right of the waiving party to insist upon
strict performance of the right or obligation in any other instance, in any other respect, or at any other time.

 

(b)
Notice. Any notice or other communication required or permitted under this Agreement shall be to the addresses set
forth above or otherwise provided in writing by the respective parties hereto. 

 

(c)
Modifications to be in Writing. To be effective, any modification to this Agreement must be in writing signed by
all parties to the Agreement.

 

(d)
Agreement Binding upon Successors and Assigns. This Agreement shall bind the Pledgor and its successors and assigns.
All rights, privileges, and powers granted to the Pledgee under this Agreement shall benefit the Pledgee and its successors and
assigns.

 

(e)
Assignment of Agreement. At any time, the Pledgee may assign or transfer any of its rights or powers under this Agreement
to any person or entity. The Pledgor may not transfer its rights, duties, or obligations under this Agreement without the prior
written consent of the Pledgee.

 

(f)
Further Assurances. Both the Pledgor and the Pledgee agree to take any further actions and to make, execute, and
deliver any further written instruments which may be reasonably required to carry out the terms, provisions, intentions, and purposes
of this Agreement.

 

(g)
Attorneys’ Fees and Costs. If the Pledgor or the Pledgee institutes legal proceedings, to settle any controversy
arising under this Agreement, then the prevailing party shall be entitled to reasonable attorney’s fees and costs. 

 

(h)
Governing Law. This Agreement shall be enforced, governed, and construed in all respects in accordance with the
substantive and procedural laws of the State of [  ], United States of America, except in the case where [  ]
law applies to the Collateral. 

 

(i)
Severability. If any provision of this Agreement or any application of any provision is determined to be unenforceable,
the remainder of this Agreement shall be unaffected. If the provision is found to be unenforceable when applied to particular
persons or circumstances, the application of the provision to other persons or circumstances shall be unaffected.

 

(j)
Headings. Headings used in this Agreement have been included for convenience and ease of reference only and will not in
any manner influence the construction or interpretation of any provision of this Agreement.

 

(k)
References. Except as otherwise specifically indicated, all references in this Agreement to numbered or lettered
sections or subsections refer to sections or subsections of this Agreement. All references to Exhibits refer to Exhibits attached
to this Agreement. All references to “this Agreement,” or to any Exhibit to this Agreement, shall include any subsequent
amendments to this Agreement, or to the Exhibit, as the case may be.

 

(l)
Number and Gender. When required by the context, the word “it” will include the plural and the word
“its” will include the singular; the masculine will include the feminine gender and the neuter, and vice versa; and
the word “person” will include corporation, partnership, or other form of association.

 

    	 

     

    

 

(m)
Counterparts. This Agreement may be executed in any number of counterparts, including via DocuSign, each of which
will be deemed to be an original and all of which together will constitute a single agreement.

 

(n)
Entire Agreement. This Agreement, the Note and any related documents represent the entire understanding of the parties
with respect to the subject matter of the Agreement. There are no other prior or contemporaneous agreements, either written or
oral, among the parties with respect to this subject.

 

[Signature
Page Follows]

 

[The
Remainder of This Page is Intentionally Blank]

 

    	 

     

    

 

EXECUTED
AND DELIVERED, as of the date first above written.

 

	 	PLEDGOR:
	 	 
	 	 
	 	Name:	           
	 	Title:	 
	 	Its:	 

 

	 	PLEDGEE:
	 	 
	 	 
	 	[                   ]
	 	As
    Collateral Agent for the benefit ofEX-4.1

 Exhibit 4.1 

[Form of Note] 
 (FACE
OF NOTE) 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE PROVISIONS OF THE INDENTURE AND THE TERMS OF THE SECURITIES, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO AT&T INC., OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 AT&T INC. 

2.300% Global Notes due 2027 

CUSIP NO. [●] 
 ISIN NO.
[●] 
 No. R-[●] 

$500,000,000 
 AT&T Inc., a
corporation duly organized and existing under the laws of the State of Delaware (herein called “AT&T”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of Five Hundred Million Dollars ($500,000,000) on June 1, 2027 (the “Maturity Date”), and to pay interest on said principal sum from May 28, 2020 or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on June 1 and December 1 in each year, commencing on December 1, 2020 (each an “Interest Payment Date”) and on the
Maturity Date, at the interest rate of 2.300% per annum, until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any 

 
Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the Regular
Record Date for such interest, which shall be the close of business on the fifteenth day preceding the respective Interest Payment Date (each, a “Regular Record Date”). Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a special record date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not less than 15 days prior to such special record date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Any money that AT&T deposits with the Trustee or its Paying Agent for the payment of principal or any interest on this Note that remains
unclaimed for two years after the date upon which the principal and interest are due and payable, will be repaid to AT&T upon AT&T’s request unless otherwise required by mandatory provisions of any applicable unclaimed property law.
After that time, unless otherwise required by mandatory provisions of any unclaimed property law, the Holder of this Note will be able to seek any payment to which such Holder may be entitled to collect only from AT&T. 

If the Notes are issued in definitive form, payment of the principal and interest on this Note due at the Maturity Date or upon redemption
will be made at the Maturity Date or upon redemption, as the case may be, upon presentation of this Note, in immediately available funds, at the office of The Bank of New York Mellon Trust Company, N.A., the Paying and Transfer Agent and Registrar
for the Notes, currently located at 601 Travis Street, 16th Floor, Houston, Texas 77002. 

Payment of interest on this Note due on an Interest Payment Date, other than interest at maturity or upon redemption, may be paid by check
mailed to the address of the Holder entitled thereto as such address shall appear in the Note register. Notwithstanding the foregoing, (1) the Depository as Holder of the Notes or (2) a Holder of more than U.S.$5,000,000 in aggregate
principal amount of Notes in definitive form is entitled to require the Paying Agent to make payments of interest, other than interest due at maturity or upon redemption, by wire transfer of immediately available funds into an account maintained by
the Holder in the United States, by sending appropriate wire transfer instructions as long as the Paying Agent receives the instructions not less than ten days prior to the applicable Interest Payment Date. 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 

  
 2 

 Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual or electronic signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 3 

 IN WITNESS WHEREOF, AT&T INC. has caused this instrument to be signed in its corporate
name, manually or by facsimile, by its duly authorized officers and has caused its corporate seal to be imprinted hereon. 
  

							
	Dated: May 28, 2020	 		 	AT&T INC.
				
	[SEAL]	 		 		 	
		 		 	By:	 	  

		 		 		 	George B. Goeke
		 		 		 	Senior Vice President and Treasurer
				
		 		 	By:	 	  

		 		 		 	Andrew B. Keiser
		 		 		 	Vice President and Assistant Treasurer

 Trustee’s Certificate of Authentication 

This is one of the 2.300% Global Notes due 2027 
 of the series
designated herein referred to 
 in the within-mentioned Indenture. 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
 as Trustee

  

					
	 By:
	 	  
	 	 Dated: May 28, 2020

		 	 Authorized Signatory
	 	

 REVERSE OF NOTE 

This Note is one of a duly authorized issue of debt securities of AT&T of the series specified on the face hereof, issued under and
pursuant to an Indenture, dated as of May 15, 2013, between AT&T and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee,” which term includes any successor Trustee under the Indenture), to which indenture
and all indentures supplemental thereto (collectively, the “Indenture”) reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, AT&T and the Holders
of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The Notes will be issued in fully registered form only and in minimum denominations of $2,000 and integral multiples of $1,000 thereafter. This Note
is one of the series designated on the face hereof initially limited in aggregate principal amount to $2,500,000,000. 
 The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of AT&T and the rights of the Holders of the Notes under the Indenture at any time by AT&T and the Trustee with
the consent of the Holders of a majority in principal amount of the Notes at the time outstanding. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes at the time outstanding to
waive compliance by AT&T with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of AT&T, which
is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

Registrar and Paying Agent 

AT&T shall maintain in the Borough of Manhattan, The City of New York, an office or agency where Notes may be surrendered for registration
of transfer or exchange (“Registrar”) and an office or agency where Notes may be presented for payment or for exchange (“Paying Agent”). AT&T has initially appointed the Trustee, The Bank of New York Mellon Trust Company,
N.A., as its Registrar and Paying Agent. AT&T may vary or terminate the appointment of any of its paying or transfer agencies, and may appoint additional paying or transfer agencies. 

 Optional Redemption by AT&T 

The Notes may be redeemed at any time prior to April 1, 2027, as a whole or in part, at AT&T’s option, at any time and from time
to time on at least 10 days’, but not more than 40 days’, prior notice mailed (or otherwise transmitted in accordance with DTC procedures) to the registered address of each Holder of the Notes. The redemption price will be
calculated by AT&T and will be equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) discounted to the redemption
date, on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the Treasury Rate (as defined below) plus 30
basis points. The Notes may be redeemed at any time on or after April 1, 2027, as a whole or in part, at AT&T’s option, at any time and from time to time on at least 10 days’, but not more than 40 days’, prior notice mailed
(or otherwise transmitted in accordance with DTC procedures) to the registered address of each Holder of the Notes at a redemption price equal to 100% of the principal amount of the Notes to be redeemed. AT&T will calculate the redemption price.
In each case, accrued but unpaid interest will be payable to the redemption date. 
 “Treasury Rate” means, with respect to any
redemption date for the Notes, the rate per annum equal to the semiannual equivalent yield to maturity or interpolation (on a day count basis) of the interpolated Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date, as determined by AT&T or an Independent Investment Banker appointed by AT&T. 

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as
having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of such Notes. 
 “Independent Investment Banker” means one of the
Reference Treasury Dealers, appointed by AT&T. 
 “Comparable Treasury Price” means, with respect to any redemption date,
(1) the average of the Reference Treasury Dealer Quotations for such redemption date after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if AT&T obtains fewer than three such Reference Treasury
Dealer Quotations, the average of all such quotations. 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by AT&T, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to AT&T
by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 

“Reference Treasury Dealer” means each of BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC
Capital Markets, LLC and Wells Fargo Securities, LLC and their respective affiliates (each, a “Primary Treasury Dealer”); provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, AT&T will substitute
therefor another Primary Treasury Dealer.  

  
 2 

 “Remaining Scheduled Payments” means, with respect to each Note to be redeemed,
the remaining scheduled payments of principal and interest on the Note that would be due after the related redemption date through the par call date for the Notes but for the redemption, assuming the Notes matured on the par call date (not including
any portion of payments of interest accrued as of the redemption date). If that redemption date is not an Interest Payment Date with respect to the Note, the amount of the next succeeding scheduled interest payment on the Note will be reduced by the
amount of interest accrued on the Note to the redemption date. 
 On and after the redemption date, interest will cease to accrue on the
Notes or any portion of the Notes called for redemption, unless AT&T defaults in the payment of the redemption price and accrued interest. On or before the redemption date, AT&T will deposit with its Paying Agent or the Trustee money
sufficient to pay the redemption price of and accrued interest on the Notes to be redeemed on that date. 
 Any redemption or notice may, at
the discretion of AT&T, be subject to one or more conditions precedent and, at the discretion of AT&T, the redemption date may be delayed until such time as any or all such conditions precedent included at the discretion of AT&T shall be
satisfied (or waived by AT&T) or the redemption date may not occur and such notice may be rescinded if all such conditions precedent included at the discretion of AT&T shall not have been satisfied (or waived by AT&T). 

In the case of any partial redemption, selection of the Notes to be redeemed will be made in accordance with applicable procedures of DTC.

 Payment of Additional Amounts 

AT&T will, subject to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts
(“Additional Amounts”) as are necessary so that the net payment by AT&T or its Paying Agent of the principal of and interest on this Note to a person that is a United States Alien, after deduction for any present or future tax,
assessment or governmental charge of the United States or a political subdivision or taxing authority thereof or therein, imposed by withholding with respect to the payment, will not be less than the amount that would have been payable in respect of
this Note had no withholding or deduction been required. As used herein, “United States Alien” means any person who, for United States federal income tax purposes, is a foreign corporation, a
non-resident alien individual, a non-resident alien fiduciary of a foreign estate or trust, or a foreign partnership one or more of the members of which is, for United
States federal income tax purposes, a foreign corporation, a non-resident alien individual or a non-resident alien fiduciary of a foreign estate or trust. 

  
 3 

 The foregoing obligation to pay Additional Amounts shall not apply: 

(1) to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner, or a
fiduciary, settlor, beneficiary or member of the beneficial owner if the beneficial owner is an estate, trust or partnership, or a person holding a power over an estate or trust administered by a fiduciary holder: 

(a) is or was present or engaged in a trade or business in the United States, has or had a permanent establishment in the
United States, or has any other present or former connection with the United States or any political subdivision or taxing authority thereof or therein; 

(b) is or was a citizen or resident or is or was treated as a resident of the United States; 

(c) is or was a foreign or domestic personal holding company, a passive foreign investment company or a controlled foreign
corporation with respect to the United States or is or was a corporation that has accumulated earnings to avoid United States federal income tax; 

(d) is or was a bank receiving interest described in Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended
(the “Code”); or 
 (e) is or was an actual or constructive owner of 10% or more of the total combined voting power
of all classes of stock of AT&T entitled to vote; 
 (2) to any Holder that is not the sole beneficial owner of the
Notes, or a portion thereof, or that is a fiduciary or partnership, but only to the extent that the beneficial owner, a beneficiary or settlor with respect to the fiduciary, or a member of the partnership would not have been entitled to the payment
of an Additional Amount had such beneficial owner, beneficiary, settlor or member received directly its beneficial or distributive share of the payment; 

(3) to any tax, assessment or governmental charge that is imposed or withheld solely because the beneficial owner or any other
person failed to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of the Notes, if compliance is
required by statute, by regulation of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge; 

(4) to any tax, assessment or governmental charge that is imposed other than by deduction or withholding by AT&T or a
paying agent from the payment; 

  
 4 

 (5) to any tax, assessment or governmental charge that is imposed or
withheld solely because of a change in law, regulation, or administrative or judicial interpretation that is announced or becomes effective after the day on which the payment becomes due or is duly provided for, whichever occurs later; 

(6) to an estate, inheritance, gift, sales, excise, transfer, wealth or personal property tax or any similar tax, assessment or
governmental charge; 
 (7) to any tax, assessment or other governmental charge any paying agent (which term may include
AT&T) must withhold from any payment of principal of or interest on any Note, if such payment can be made without such withholding by any other paying agent; or 

(8) in the case of any combination of the above items. 

In addition, any amounts to be paid on this Note will be paid net of any deduction or withholding imposed or required pursuant to Sections
1471 through 1474 of the Code, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted
pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code, and no Additional Amounts will be required to be paid on account of any such deduction or withholding. 

The Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable.
Except as specifically provided under this section entitled “Payment of Additional Amounts” and under the heading “Redemption Upon a Tax Event”, AT&T shall not have to make any payment with respect to any tax, assessment or
governmental charge imposed by any government or a political subdivision or taxing authority. 
 Any reference in the terms of the Notes to
any amounts in respect of the Notes shall be deemed also to refer to any Additional Amounts which may be payable under this provision. 

Redemption Upon a Tax Event 

If (a) AT&T becomes or will become obligated to pay Additional Amounts as a result of any change in, or amendment to, the laws (or any
regulations or rulings promulgated thereunder) of the United States (or any political subdivision or taxing authority thereof or therein), or any change in, or amendments to, any official position regarding the application or interpretation of such
laws, regulations or rulings, which change or amendment is announced or becomes effective, on or after May 21, 2020 or (b) a taxing authority of the United States takes an action on or after May 21, 2020, whether or not with respect
to AT&T or any of its affiliates, that results in a substantial probability that AT&T will or may be required to pay such Additional Amounts, then AT&T may, at its option, redeem, as a whole, but not in part, the Notes on any Interest
Payment Date on not less than 10 nor more than 40 calendar days’ prior notice, at a redemption price equal to 100% of their principal amount, together with interest accrued thereon 

  
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to the date fixed for redemption. No redemption pursuant to (b) above may be made unless AT&T shall have received an opinion of independent counsel to the effect that an act taken by a
taxing authority of the United States results in a substantial probability that AT&T will or may be required to pay the Additional Amounts and AT&T shall have delivered to the Trustee a certificate, signed by a duly authorized officer,
stating that based on such opinion, AT&T is entitled to redeem the Notes pursuant to their terms. 
 Further Issues 

AT&T reserves the right from time to time, without notice to or the consent of the Holders of the Notes, to create and issue further notes
ranking equally and ratably with the Notes in all respects, or in all respects except for the payment of interest accruing prior to the issue date or except for the first payment of interest following the issue date of those further notes. Any
further notes will have the same terms as to status, redemption or otherwise as, and will be fungible for United States federal income tax purposes with, the Notes. Any further notes shall be issued pursuant to a resolution of the board of directors
of AT&T, a supplement to the Indenture, or under an officers’ certificate pursuant to the Indenture. 
 Notes in Definitive Form

 If (1) an Event of Default has occurred with regard to the Notes represented by this Note and has not been cured or waived in
accordance with the Indenture, or (2) the Depository is at any time unwilling or unable to continue as depository and a successor depository is not appointed by AT&T within 90 days, AT&T may issue notes in definitive form in exchange
for this Note. In either instance, an owner of a beneficial interest in the Notes will be entitled to the physical delivery in definitive form in exchange for this Note, equal in principal amount to such beneficial interest and to have such Notes
registered in its name. 
 Notes so issued in definitive form will be issued as registered notes in minimum denominations of $2,000 and
integral multiples of $1,000 thereafter, unless otherwise specified by AT&T. 
 Notes so issued in definitive form may be transferred by
presentation for registration to the Registrar at its New York office and must be duly endorsed by the Holder or the Holder’s attorney duly authorized in writing, or accompanied by a written instrument or instruments of transfer in form
satisfactory to AT&T or the Trustee duly executed by the Holder or his attorney duly authorized in writing. 
 AT&T may require
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any exchange or registration of transfer of definitive Notes. 

  
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 Default 

In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal hereof may be declared, and upon
such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 

Miscellaneous 
 For
purposes of the Notes, a Business Day means a business day in The City of New York. 
 No director, officer, employee or stockholder, as
such, of AT&T shall have any liability for any obligations of AT&T under this Note, the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Holder by accepting this Note waives and
releases all such liability. The waiver and release are part of the consideration for the issue of this Note. 
 The Notes are the unsecured
and unsubordinated obligations of AT&T and will rank pari passu with all other evidences of indebtedness issued in accordance with the Indenture. 

Notices to Holders of the Notes will be given only to the depositary, in accordance with its applicable policies as in effect from time to
time. 
 Prior to due presentment of this Note for registration of transfer, AT&T, the Trustee and any agent of AT&T or the Trustee
may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither AT&T, the Trustee nor any such agent shall be affected by notice to the contrary. 

All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.  

The Indenture and this Note shall be governed by and construed in accordance with the laws of the State of New York. 

  
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