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Entry into a Material Definitive

On December 11, 2015, AT&T Inc. ("AT&T") entered into a $12 billion credit agreement (the "Revolving Credit Agreement") with Citibank, N.A. ("Citibank"), as administrative agent, replacing its $5 billion credit agreement, dated as of December 11, 2013, with Citibank, as administrative agent, that would have expired in December 2018. In the event advances are made under the Revolving Credit Agreement, those advances would be used for general corporate purposes.

Subject to customary conditions, the obligations of the lenders under the Revolving Credit Agreement to provide advances to AT&T will terminate on December 11, 2020, unless prior to that date either: (i) AT&T reduces to $0 the commitments of the lenders under the Revolving Credit Agreement, or (ii) certain eve nts of default occur. All advances must be repaid no later than the date on which lenders are no longer obligated to make any advances under the Revolving Credit Agreement.

The Revolving Credit Agreement provides that AT&T and lenders representing more than 50% of the facility amount may agree to extend their commitments under the Revolving Credit Agreement for two one-year periods beyond the December 11, 2020 termination date, under certain circumstances. AT&T has the right to terminate, in whole or in part, amounts committed by the lenders under the Revolving Credit Agreement in excess of any outstanding advances; however, any such terminated commitments may not be reinstated.

The Revolving Credit Agreement also provides that AT&T may request that the aggregate amount of the commitments of the lenders under the Revolving Credit Agreement be increased by an integral multiple of $25million to be effective as of a date that is at least 90 days prior to the scheduled termination date then in effect, provided that no event of default has occurred and in no event shall the aggregate amount of the commitments of the lenders under the Revolving Credit Agreement at any time exceed $14 billion.

Advances would bear interest, at AT&T's option, either:

at a variable annual rate equal to the highest of: (1)(a)the base rate of the bank affiliate of Citibank which is serving as administrative agent under the Revolving Credit Agreement, (b) 0.50% per annum above the Federal funds rate, and (c)the London interbank offered rate ("LIBOR") applicable to dollars for a period of one month plus 1.00%, plus (2)an applicable margin, as set forth in the Revolving Credit Agreement ("Applicable Margin for Base Advances"); or

at a rate equal to: (i) LIBOR for a period of one, two, three or six months, as applicable, determined in the manner set forth in the Revolving Credit Agreement, plus (ii)an applicable margin, as set forth in the Revolving Credit Agreement ("Applicable Margin for Eurocurrency Rate Advances").

The Applicable Margin for Eurocurrency Rate Advances will equal 0.680%, 0.910%, 1.025%, or 1.125% per annum depending on AT&T's credit rating. The Applicable Margin for Base Advances will be equal to the greater of 0.00% and the relevant Applicable Margin for Eurocurrency Rate Advances minus 1.00% per annum depending on AT&T's credit rating.

AT&T will also pay a facility fee of 0.070%, 0.090%, 0.100% or 0.125% per annum of the amount of lender commitments, depending on AT&T's credit rating.

In the event that AT&T's unsecured senior long-term debt ratings are split by Standard & Poor's ("S&P"), Moody's Investors...


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