Attachment 1 - August 26, 2013

CWA Districts 1, 2-13, 3, 3-Puerto Rico, 4, 6, 7, and 9

The Company is willing to waive the time in title and location requirements in Article 13 of each contract for retail employees in the affected titles (SSR, Finance Rep) so that potentially affected retail employees may take advantage of open positions within the Company. The Company is willing to allow retail employees in the affected titles (SSR, Finance Rep) who are on an active step of discipline to apply for open positions as if they had clean discipline records so that potentially retail affected employees may take advantage of open positions within the Company. The Company will include the SSRs who are on leaves of absence in the selection processes in Steps 1 and 2 as jf they were actively working. Management will contact such employees when it is their turn to select and inform them of the available SSR positions. SSRs on leave will have 48 hours to advise management of their selection. If SSRs on leave fail to respond within this time frame, management will make the selection for the SSR so the selection process can continue. The Finance Rep position is being eliminated so these affected employees will have no ability to retreat to their former positions. For any former SSR seeking to retreat to a vacant SSR position, if any exist, their pay will be governed by Article 19, Section lD in each of the Regional labor Agreements. The Company is willing to pay protect voluntary moves made by retail employees in the affected titles (SSR, Finance Rep) as if a surplus had been declared and the moves were "involuntary" as set forth in Article 19 in each ofthe Regional Labor Agreements. For clarity, the Company would be willing to honor the applicable language as if the text existed in each contract as noted: Black - Article Section lC, Paragraph 2:

When an (involuntary change occurs to a lower rated job, the employee will be pay protected for one year if they are over the top rate for the job. At the conclusion of the year, they will be placed on the top rate. If the employee is not above the top rate of the job, they will be put in progression, if applicable. Green - Articie Section le, Paragraph 2:

When an (involuntary change occurs to a lower rated job, the employee will be pay protected for one (1) year if they are over the top rate for the job. At the conclusion of the year, they will be placed on the top rate. If the employee is not above the top rate of the job, they will be put in progression, if applicable. Orange - Article Section lC, Paragraph 3:

When an {involuntary change of title occurs, and is considered a demotion, the employee will be slotted into the closest wage step in the new schedule that is equal tO l but not less than, the weekly rate of their former schedule provided that rate is not greater than the maximum rate for the job. The time interval to the next step increase on the new schedule

be six (6) months from the date of the change in title. In the event an employee is over the top of the new wage scale, that employee will be pay protected at their current wage for a period of one (1) year. Purple Article 19, Section lC, Paragraph 3:

When an (involuntary change occurs to a lower rated job, the employee will be pay protected for one year if they are over the top rate for the job. At the conclusion of the year, they will be placed on the top rate. If the employee is not above the too rate the job, they will be put in progression, if applicable. When a surplus is the Company is willing to offer all regular employees in SSR positions the opportunity to voluntarily resign and receive a severance payment as set forth in Article 14 of each contract. This will be offered in seniority order, up to the number necessary to alleviate the surplus. When a surplus is if there are no equal level or lower level vacancies for which the surplused employee is qualified within 35 miles of the surplus location, the surplused employees can decide to resign and receive a severance payment as set forth in Article 14 of each contract. The Company and the CWA Districts each reserve their respective rights to challenge any breach of this agreement. Any such challenge brought the CWA, can only be initiated at the District level. If either the Company or a CWA District(s) beJieve(s) this agreement has been breached, the parties will first meet and confer in good faith to try to resolve the identified concern before either party exercises its legal right to seek to remedy the alleged breach of this agreement. The benefits listed above are offered on a non-precedent setting basis for this retail staffing realignment only, meaning they will have no bearing or impact on any future staffing realignment effort or surplus declaration. These benefits are contingent upon the Union's acceptance and the Company's receipt, via email at david.holland@att.com or facsimile at (205) 402-7538, of this signed Attachment 1 and all of the proposed process agreements that are specific to each CWA District, no later than 12:00 pm (Noon) Central Standard Time, Monday, August 26, 2013. If any CWA District fails to accept their proposed process agreement as indicated in those documents or this Attachment 1 is not received as indicated above, all agreements and Attachment 1 will be null and: void for all CWA Districts. Although a single copy of Attachment 1 is being executed, the CWA represents and agrees that Ms. Smith-Carr is authorized to execute Attachment 1 on behalf of all the CWA Districts. Once executed, the parties agree that Attachment 1 will become part of each, CWA District(s) proposed process agreement.

Steve Frost Executive Director of Labor Relations Staff Representative

AT&T

LLC

CWA, District 7