Accelerated Success Sharing Plan Payout

To:  AT&T Legacy T employees

We have been informed by the Company that the Accelerated SSP amount of $1323.00 will be deposited in your HRAs on October 1, 2012.  The reason it is taking so long is because they had to set up HRAs for people who did not already have them and all the deposits need to be done the same day.  It is still almost 3 months before the Dec. 31, 2012 date originally required for the 2012 payout. 

Remember, there will be a second payout in December of both the forth quarter dividend payment and any increase in the stock price over the $35.66 the accelerated payout was based on.  For your information, below I have laid out how the SSP is calculated.

Laura Unger
Staff Representative

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Accelerated SSP Payment:

Oct. 3, 2011 stock price:                $28.16
June 29, 2012 stock price:           $35.66

Gain in stock price:                         $7.50

X 150 shares =                         $1125.00

+ dividend .44 x 3 quarters          198.00

TOTAL                                        $1323.00   

Original SSP calculation date 9/28/2012        Recalculate stock price:

If the stock price goes down, eligible employees retain what they received in the “Accelerated” payout and will receive an additional dividend payout for the last quarter:  $ .44 x 150 shares = $66.00

If the stock price goes up, you will receive the new stock price difference - $7.50 x 150 + $66 in December, 2012.  

For example if the stock goes to $37.00:

                 $37.00
                - 28.16
                    8.84
                 -  7.50  (already paid out)
                 $ 1.34  x 150 shares  = $201.  + $66 (dividend) = $267