Common use of Payout Clause in Contracts

Payout. For Award Year 2018 Employees will receive a total award based on the difference between the ending award value and the beginning award value for the Award Year times 150 success units plus the dividend rate value. For example: Stock Appreciation Value: Beginning award value – October 2, 2017 closing AT&T stock price $33.00 Ending award value – September 28, 2018 closing AT&T stock price $38.00 Payout – $38 - $33 = $5 x 150 success units = $750.00 Dividend Rate Value: December 2017 declared dividend $.47 March 2018 declared dividend $.47 June 2018 declared dividend $.47 September 2018 declared dividend $.47 Total Declared Dividend $1.88 Dividend Rate Value - $1.88 x 150 success units = $282.00 Total Award $750.00 stock appreciation value + $282.00 dividend rate value = $1,032.00 The award payment will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November.

Payout. For Award Year 2018 Employees will receive a total award payout based on the difference between the ending award value and the beginning award value for the Award Year award year times 150 success units plus the dividend rate value. For example: Stock Appreciation Value: Beginning award value – October 21, 2017 2013 closing AT&T stock price $33.00 30.00 Ending award value – September 2830, 2018 2014 closing AT&T stock price $38.00 35.00 Payout – $38 35 - $33 30 = $5 x 150 success units = $750.00 Dividend Rate Value: December 2017 2013 declared dividend $.47 .44 March 2018 2014 declared dividend $.47 .44 June 2018 2014 declared dividend $.47 .44 September 2018 2014 declared dividend $.47 .44 Total Declared Dividend $1.88 Dividend Rate Value 1.76 Payout - $1.88 1.76 x 150 success units = $282.00 264.00 Total Award Payout $750.00 stock appreciation value + $282.00 264.00 dividend rate value = $1,032.00 The 1,014.00 Payment of the award payment will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November.

Payout. For Award Year 2018 Employees will receive a total award payout based on the difference between the ending award value and the beginning award value for the Award Year award year times 150 success units plus the dividend rate value. For example: Stock Appreciation Value: Beginning award value – October 2, 2017 closing AT&T stock price $33.00 40.00 Ending award value – September 28, 2018 closing AT&T stock price $38.00 45.00 Payout – $38 45 - $33 40 = $5 x 150 success units = $750.00 Dividend Rate Value: December 2017 declared dividend $.47 .49 March 2018 declared dividend $.47 .49 June 2018 declared dividend $.47 .49 September 2018 declared dividend $.47 .49 Total Declared Dividend $1.88 Dividend Rate Value 1.96 Payout - $1.88 1.96 x 150 success units = $282.00 294.00 Total Award Payout $750.00 stock appreciation value + $282.00 294.00 dividend rate value = $1,032.00 The 1,044.00 Payment of the award payment will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November.

Payout. For Award Year 2018 Employees will receive a total award payout based on the difference between the ending award value and the beginning award value for the Award Year award year times 150 success units plus the dividend rate value. For example: Stock Appreciation Value: Beginning award value – October 21, 2017 2021 closing AT&T stock price $33.00 40.00 Ending award value – September 2830, 2018 2022 closing AT&T stock price $38.00 45.00 Payout – $38 45 - $33 40 = $5 x 150 success units = $750.00 Dividend Rate Value: December 2017 2021 declared dividend $.47 .53 March 2018 2022 declared dividend $.47 .53 June 2018 2022 declared dividend $.47 .53 September 2018 2022 declared dividend $.47 .53 Total Declared Dividend $1.88 Dividend Rate Value 2.12 Payout - $1.88 2.12 x 150 success units = $282.00 318.00 Total Award Payout $750.00 stock appreciation value + $282.00 318.00 dividend rate value = $1,032.00 The 1,068.00 Payment of the award payment will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November.

Payout. For Award Year 2018 Employees will receive a total award based on the difference between the ending award value and the beginning award value for the Award Year times 150 success units plus the dividend rate value. For example: Stock Appreciation Value: Beginning award value – October 21, 2017 2015 closing AT&T stock price $33.00 Ending award value – September 2830, 2018 2016 closing AT&T stock price $38.00 Payout – $38 - $33 = $5 x 150 success units = $750.00 Dividend Rate Value: December 2017 2015 declared dividend $.47 March 2018 2016 declared dividend $.47 June 2018 2016 declared dividend $.47 September 2018 2016 declared dividend $.47 Total Declared Dividend $1.88 Dividend Rate Value - $1.88 x 150 success units = $282.00 Total Award $750.00 stock appreciation value + $282.00 dividend rate value = $1,032.00 The award payment will be made as soon as practicable after the award year and will normally occur the payday of the last full pay period in November.