HQ Sales Compensation Communication

RSSM Program Changes January 2013

Topic: Date: Audience: Overview: RSSM Program Changes January 2013 December 26, 2012 COR Sellers and Managers, DoSOs, Sales Compensation Teams RSSM Program Changes effective with January 2013 sales results

NOTICE Effective with the January 2013 sales reporting month, the RSSM discipline programs key performance indicators (KPIs) and weighting are changing as indicated in the chart below:

2013 KEY PERFORMANCE INDICATOR (KPI) WEIGHTING

COR RSCs - RSSM
Position Type Gross Adds & Wired Attainment Strategic Product Attainment 33% MRCPO Attainment

Non-wired & Wired

34%

33%

Note: The RSSM program excludes the HSC position.

The Non-wired and Wired position types have the same metrics and weighting in all applicable channels. The Non-wired position type would only record gross adds for the Gross Adds & Wired Attainment metric with the same percentage weight listed in the chart.

The following two metrics are new for 2013:

METRIC Gross Adds & Wired Attainment DESCRIPTION Total count of Gross Adds including prepaid and Total Wired Submitted New Attainment to Goal Total count of Postpaid Tablet and Wireless Home Phone (WHP) Postpaid Gross Add Attainment to Goal DEFINITION Sum of Postpaid Adds + Prepaid Adds + Hybrid Adds Buyer's Remorse + New Wired Submitted-Confirmed Connections + Reissues + Posted (not confirmed) net of inmonth Cancels and Disconnects

Strategic Product Attainment

Total count of Postpaid Gross Adds with a qualifying Tablet rate plan or Mobile Share feature + total gross adds for Wireless Home Phone (WHP)

Note that because the new metrics outlined above combine the attainment of two separate component measurements, it is possible to meet or exceed the targeted goal attainment by overachieving in one of the two metrics.

Information contained in this document may not be used for any unauthorized purposes. This document does not constitute a contract of employment or a guarantee that any particular amount of incentives will be paid. Incentive payout for performance is not a guarantee and is at the sole discretion of AT&T. The Company reserves the right in its sole discretion to reduce, modify, eliminate, or withhold financial awards due to changed market conditions, individual performance, or other business reasons (subject to applicable laws). This document may be amended from time to time at the Company's sole discretion. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside AT&T except under written agreement. 12/19/2012 Page 1 of 2

HQ Sales Compensation Communication

RSSM Program Changes January 2013
Calculation Examples:

WIRED RSC CALCULATION EXAMPLE:

KEY PERFORMANCE INDICATOR Gross Adds & Wired Attainment Gross Adds (including prepaids) Total Wired Submitted New Strategic Products Postpaid Tablet Gross Adds Postpaid WHP Gross Adds MRCPO ACTUAL 78 75 3 15 4 11 $75.00 GOAL 70 60 10 15 5 10 $80.00 93.75% 33.00% 30.94% 101.82% 100.00% 33.00% 33.00% ATTAINMENT % KPI WEIGHTING 111.43% 34.00% KPI CALC ATTAINMENT 37.89%

TOTAL RSSM INDEX

NON-WIRED RSC CALCULATION EXAMPLE:

KEY PERFORMANCE INDICATOR Gross Adds & Wired Attainment Gross Adds (including prepaids) Total Wired Submitted New Strategic Products Postpaid Tablet Gross Adds Postpaid WHP Gross Adds MRCPO ACTUAL 72 72 0 10 3 7 $71.50 GOAL 60 60 0 7 2 5 $75.00 95.33% 33.00% 31.46% 119.40% 142.86% 33.00% 47.14% ATTAINMENT % KPI WEIGHTING 120.00% 34.00% KPI CALC ATTAINMENT 40.80%

TOTAL RSSM INDEX

Additional information: For more information, refer to the RSSM policy guide posted to CSP. All other types of progressive discipline measures are in effect and apply business-as-usual.

Information contained in this document may not be used for any unauthorized purposes. This document does not constitute a contract of employment or a guarantee that any particular amount of incentives will be paid. Incentive payout for performance is not a guarantee and is at the sole discretion of AT&T. The Company reserves the right in its sole discretion to reduce, modify, eliminate, or withhold financial awards due to changed market conditions, individual performance, or other business reasons (subject to applicable laws). This document may be amended from time to time at the Company's sole discretion. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside AT&T except under written agreement. 12/19/2012 Page 2 of 2