Facilities Maintenance and Call Center Operations for AT&T Retail Stores

1. Facilities Maintenance and Call Center Operations for AT&T Retail Stores June 26, 2012

2. Table of Contents Executive Summary ……………………………………… 03 Our Team…….……………………………………….. …… 06 Transition Plan………………….…………………………… 08 Workflow and Technology………………………………. … 15 Innovation ……………………….…………………………… 18 Quality Assurance………………….. ……………………… 20 Price Structure……………………………………………… 28

3. Executive Summary

4. A Collaborative Effort With Your Best Interests In Mind We firmly believe that a Supplier Management model to delivering the services contemplated in this proposal will deliver superior results when compared to that of a Self-Perform model. “If you do the same thing over and over, do not expect different results.”

5. June 26, 2012 Keith Arthur AT&T Services, Inc. 1255 Lenox Park Blvd., 7th Floor B39 Atlanta, Georgia 30319 Dear Keith: Thank you for contacting ABM for the opportunity to develop a world class facility services platform for AT&T. Prior to the SBC acquisition, we delivered several integrated maintenance solutions for legacy AT&T’s wire line business with great results. Moreover, we are one of AT&T’s preferred janitorial providers today. Our relationship has always been based on trust , innovation, and delivering great people and service at competitive prices. As a result, we have enclosed an alternate solution that we believe will be a better long term fit for AT&T by focusing on long term optimization, performance management, cost reduction, and asset preservation. Our proposed solution provides a dedicated account manager, management and support team to be your single point of contact and leadership for the retail portfolio. We also propose leveraging our “ABM On Demand” national call center to manage work flow and service call response. This is the optimum resource approach while still maintaining a high quality, customized solution. Furthermore, we have structured our pricing in three ways. First, we provide guaranteed hourly rates for a variety of services. These are “worst case scenario” actual cost rates that will not increase during the first three years of the agreement. To the extent we can reduce the rates, AT&T will benefit as all costs will be fully visible to AT&T. ABM will retain a portion of the savings below the guaranteed rates as incentive for reducing costs. Second, we will provide a fixed management fee based on the 2011 volume of work orders. This fee will only be adjusted if the number of sites changes materially either up or down. A significant portion of this fixed fee will be placed at risk to meet service level maintenance completion and response times metrics as further outlined herein.

6. Third, we will provide a guaranteed fixed rate per store for HVAC preventive maintenance services. Most HVAC services will be self performed by ABM maintenance technicians. With hundreds of mechanical, electrical, and general maintenance offices throughout the country, ABM is uniquely resourced to either self-perform or subcontract to optimize service delivery. After analyzing and mapping your locations, there are very few markets that justify the cost of dedicated maintenance routes. We know this appears to be an area of concern for AT&T that most of the work be self-performed by the same technician. We will self perform most, but with shared resources that may not always be the same person. ABM is probably the most qualified to self-perform most of this work, but even then, we intend to approach service delivery with mostly shared ABM resources, secondly by subcontracted technicians, and very little dedicated route maintenance technicians. By serving most of the portfolio with shared resources, we will optimize cost. Lastly, we propose running this solution through our “ABM On Demand” entity which qualifies for Tier 1 100% minority business enterprise spend. This is an ABM-owned solution supported with ABM resources and financially backed by ABM yet fully qualifies for diversity spend. Although this is a substantial departure from the current unit priced dedicated maintenance technician solution, we have carefully outlined herein why we believe this solution is better for AT&T and therefore have not specifically replied to the guidelines as noted in Attachment 2 of the RFP. We will follow up with you later this week to set a time to discuss our solution. However, if you have any questions, please do not hesitate to contact us. Sincerely, Mark Gynn Vice President Sales mark.gynn@abm.com Mobile: 630-816-4521 Fax: 630-663-1077

7. • Workflow excellence: We will staff the call center with an ABM off-site service center located in Johnson City, New York . Emergencies will be addressed immediately through qualified and approved resources. Other requests will be dispatched during call center operating hours. We will leverage ABM’s proven technology applications including our “FLEX” work management and reporting system,inspection tools, project management systems, and quality control program. • • Preventive maintenance: Initially, we will provide preventive maintenance services using established guaranteed hourly billing rates and materials at cost. Over time, and after we are able to validate equipment at each site, we will propose a fixed price model for all HVAC preventive maintenance to reduce cost. • • Information management platform: ABM is a technology-driven facility management company. Our web portal environment provides integration of disparate systems into a real-time dashboard environment. AT&T will be able to monitor our performance including everything from financial data, variance reports, response time metrics, customer satisfaction survey results, project status, preventive maintenance task completion, corrective maintenance ratios, and other key performance indicators in one easy to navigate tool. • Invoicing process: ABM will provide invoice information and consolidated billing in virtually any configuration required. However, we will bill monthly with one invoice that will provide electronic detail of cost by store/location. AT&T will pay only one invoice for all locations. We will work with AT&T’s finance team to map store-level cost detail for internal allocation purposes. • • Proven service delivery that matches your needs: We are uniquely able to onboard existing providers, leverage a proven network of suppliers and in many cases, self-perform most of the services. With more options, we drive savings. Even within service categories, we can provide multiple options. For instance, general maintenance can be provided by vehicle-based maintenance technicians, shared ABM mobile technicians that provide service by the hour, and subcontracted services. Our diverse resources drive savings and assure the best match of resources to service needs.

8. • Quality and continuous improvement delivered. Our solution drives quality through proven inspection and survey tools. We have included regional staff to perform detailed quarterly inspections. We also issue random surveys in response to work requests completed in the CMMS. Both survey results are tracked over time on the portal. On a quarterly basis, we schedule governance meetings to review performance and identify new programs to improve quality, reliability, service and cost reduction. Our senior management team, dedicated account management, and subject matter experts attend these quarterly meetings to proactively drive innovation and improvement.

9. Our Team

10. Your Account Team • We recommend an enterprise team including a single point of contact senior account manager to lead the transformation and ongoing innovation process. This leader will be supported by staff to address accounting and reporting functions, customer service/workflow processing, project management, operational excellence, and contract administration. These team members will be supported by a corporate team of experts and local market support staff as further outlined in the following organization charts:

11. Dedicated Account Management Team • The following are key highlights of our initial enterprise team design: • Due to the custom nature of this assignment, our initial enterprise solution is similar to the existing staffing model. • Our account manager is AT&T’s single point of contact for all services and leads both dedicated and support resources on behalf of ABM. We intend to transition an existing ABM account or branch manager to handle this opportunity. • We feel it is important to have a quality control/operations expert in each region. The Southeast region operations manager will also serve as the leader of the QC team and will office in Ft. Lauderdale with the enterprise team. This sub-team’s role will be largely to visit the sites, leverage QMS 24/7 inspection system to collect site conditions and corrective measures so that all dealerships are meeting minimum standards, safety, and asset preservation best practices. • Our customer service representatives serve a greater role than just responding to phone and web requests. They also serve as project managers for all requests, ensuring completion, documentation, accuracy of system information, proactive follow up with open requests, and completion of preventive and compliance-driven scheduled tasks. Our transition team as trained over 100 CSR’s on how to use our system and drive service excellence with both subcontracted and self-performed service resources.

12. Corporate Support Team ABM is unique in that we provide significant support and expertise through a dedicated team of transition/transformation experts. This team is engaged during the transition and on an ongoing basis to bring innovation and best practices to the portfolio. All time and travel from this team is included in our management fee structure after the transition is complete. Transition costs, to the extent needed, are estimated in our Pricing Structure. This team is involved, in most cases, full time during the initial transition and will collaborate with AT&T as needed to ensure a seamless transition.

13. Local Market Support Team Program success is predicated upon our ability to develop and support site-level relationships. We leverage a broad team of area facility management team members who drive ABM best practices and support the enterprise team with local market access to suppliers, recruiting talent, addressing performance, assisting with projects, and resolving site issues. This team is entirely paid for out of our management fee. This team will be heavily involved during the transition of services, providing key site-level feedback and assisting in the due diligence and service level management process. On an ongoing basis, the enterprise team draws assistance from this team of FM experts as needed.

14. Transition Plan

15. Proposed Transition Plan Sample Transition Plan • Our Team • Our dedicated transition or transformation team currently comprises over 10 seasoned professionals that focus on specific areas of expertise. Our transformation team on most assignments is comprised of a solution developer who leads the process and communication and coordinates with specialists representing human resources and personnel retention, accounting and finance, geographic operations support, safety, training and work management technology. From our experience, combining this team with our on site teams and key AT&T designees, is the best approach to assuring a smooth successful transformation. • For this transition, John Bays, a Facilities Management and Building Maintenance veteran with over 25 years of Facility Management experience, is the dedicated transformation leader. He and his team will work in conjunction with leadership of the ongoing dedicated site team and AT&T. • Key Functional Transformation Activities • Staff retention/replacement plan • Phase in of regions/sites • Supply chain management • Technology and information management solutions • Customer call management/workflow • Accounting and billing • Self performed services (janitorial, HVAC, landscaping) • Vehicles, supplies, materials, P-Cards Sample transformation project plan: Our standard plan starts with over 200 unique potential tasks based on years of transition experience. Phase In Approach and Timing As a result of the complex differences between sites, we suggest a phased in approach by region. This will allow us to target sites, perform complete due diligence, and ensure we establish service levels in line with AT&T quality, image, reliability, and on-site management team objectives. We suggest transitioning one region per month . Prior to the first region transition, we suggest a 30 to 60 day preplanning period to establish the enterprise team, systems, and communication plan.

16. Hiring & Retention Our product is our people. We employ over 100,000 service professionals nationwide who we recruit, train, manage and support. The key to our success has been our ability to attract and retain good people. ABM is known as the #1 destination for facility service professionals. We have low turnover and exceptional retention rates. Our average employee tenure is 8 years. By offering competitive benefit options, top-notch technical and professional development training programs, advancement opportunities compensation packages tailored to meet the optimal financial and operating objectives. All human resources functions are addressed by us, freeing up time for our clients to focus on the their core business needs. ABM embraces diversity. We are an equal opportunity employer and make all employment decisions without regard to race, religion, color, national origin, age, marital status, gender, sexual orientation, disability, family leave status or ancestry. Our Hiring Process ABM identifies 4 out of 5 potential employees through internal referrals. Ensuring that we provide you with the industry’s best, our recruiting process requires a candidate to complete several steps including an in-depth skills evaluation using our proprietary Standard Technical Evaluation tool (STEVAL). STEVAL allows us to identify a candidate's strengths and trade skills in various technical areas as well as measure their customer service and management skills. In addition to the technical assessment a candidate must also interview with ABM human resources and management staff, complete mandatory background investigations and pre-employment drug screening. Motivation & Retention ABM employees will be motivated through the use of proven incentive programs including skills training and career planning, performance bonuses, and recognition awards.

17. Workflow and Technology

18. Subcontracting Process • Track record of previous acceptable work with ABM and the customer • Ability to meet health and safety standards • Ability to meet recognized quality standards • Ability to mobilize and service • Ability to deliver and service to cost and specification • Capability to employ and supply own labor • Evaluation of written scope of activity/ability; and financial status • For services outside of our core business, ABM will utilize a formal selection process to assure that the most experienced, cost-effective, and reliable subcontractors are chosen. ABM has extensive experience operating on its own behalf, as well as on behalf of its clients, in procuring subcontracted services. In all cases, ABM applies professional procurement practices performed by skilled practitioners. ABM has a National Purchasing Director in Houston, Texas who manages a program for leveraging buying power for materials and services. ABM’s contracts attach the same performance measurement criteria that ABM adheres to, so that performance issues are quickly visible. Feedback from ABM’s Facility Manager, together with contract performance service audits, ensures that actual performance, good or bad, is fed back into ABM’s performance measurement system. • ABM typically subcontracts and manages the services listed below. In many instances, ABM will utilize contractors who are part of our National Purchasing Program to provide these subcontracted services. For requirements that fall outside the availability of contractors in this program, ABM will select local providers utilizing a proven procurement methodology and competitive bidding process. • Elevators, escalators and moving walkways • Waste management • Parking lot and roadway maintenance • Waste water treatment • Fire and life safety tests and monitoring • Cranes and lifts calibration • Backflow testing • Pest control • ABM has adopted the following six-stage process in procuring subcontracts: • Step 1 – Determine need • Step 2 – Prepare specification • Step 3 – Qualify vendors • Step 4 – Procure three bids • Step 5 – Evaluate and procure services • Step 6 – Continuous benchmarking of suppliers

19. Resources Provided Desired Outcome /Benefits • Standardized , Clear & Simple Process • Supplier Consolidation & Accountability • Complete Transparency of Spend • Informed Decision Making • Measureable Cost Savings • World Class Customer Service Call Center • Scalable and Robust CMMC Platform (“FLEX”) • Benchmarking Capabilities • Data Collection on Spend • Recurring Contract Management Tools • Best-in-Class Unit Pricing • Knowledge Management

20. Workflow and Technology • A computerized maintenance management system (CMMS) is an essential component of ABM’s quality maintenance program. ABM offers many options from basic work order and PM systems to complex integrated solutions. For AT&T, we recommend leveraging our central call center located in Johnson City ,New York. • We also recommend replacing Service Channel with a solution that will capture all site information including asset preservation and inventory, preventive/predictive maintenance program information and warranty/repair history. Our “FLEX” solution is a custom product designed specifically around: • Tracking time and materials spent for each work request and project • Maintaining an inventory of equipment and supply for all tools and materials stored at the central storage facility • Generating and tracking preventive maintenance of building systems like boilers, water systems, roofs, lighting and parking areas • Tracking energy consumption • Improving efficiency by wireless dispatching and closing work via Blackberry and other wireless devices • Remote monitoring and updating of tasks by ABM’s management team • Fully encrypted and password protected • Professionally hosted and backed up on a redundant server system • Exportable to Excel and other electronic formats to develop customized project management and work order response reports Our FLEX solution also provides great flexibility to leverage our resources base. With over 7,000 approved suppliers nationwide coupled with the power of over 100,000 maintenance technicians, janitorial crew, and landscapers, we leverage our technology to dispatch work to the most qualified, lowest cost solution available. We understand the importance of linking Real Estate Transaction data to Facilities Management. Our tools allow us to create visibility for the FM team on key RE metrics resulting in intelligent decision making on your FM spend.

21. Reporting Operations Reports Within our “FLEX” technology and integrated accounting system, ABM has developed a customizable detailed reporting structure that records facility management data for your facilities. These reports are updated monthly and can be scaled to address a single property or a portfolio summary. Information chronicled in operations reports is useful in reducing overall maintenance cost by giving year-to-date financial status, determining preventative maintenance needs and major capital and repair projects, and analyzing energy consumption. Elements of our operating reports include: • An executive summary of work and key performance indicators • Preventive maintenance scheduled verses completed report • Work order summary report with response and completion statistics • Service contract performance summary • Customer satisfaction survey results • Safety training and inspections • Equipment inventory • Year-to-date maintenance budget variance explanations • Year-to-date tracking of key performance indicators • Capital projections • Reports can be posted to a customized property specific website Performance Reports ABM provides a variety of financial reports, payroll summaries, and manpower reports, all customized specifically for your properties. Shown here are report samples that have been provided to other customers based on their performance metrics and reporting criteria:

22. Safety & Training Process ABM differentiates itself from the competition by delivering a robust mandatory training program that integrates web-based evaluation tools, safety and skills training with ABM’s Peoplesoft employee database to ensure 100% compliance. We couple this training platform with our geographic network of technical support personnel to insure that all ABM maintenance technicians are qualified to perform the work in a safe, reliable manner and are continually challenged, enhance their skills, and become more valuable team assets. “STEVAL” Technical Evaluation Tool Accessed through the our on line “Summit” training web site, ABM has developed the industry leading technical evaluation system for all maintenance employees transitioning or applying for a position with ABM. The system evaluates technicians in eight major and 22 minor skills categories. The basis of this evaluation program generates recommendations for skills training. ABM “E-Learning” Web Based Training System In partner with Summit, all ABM safety, and disaster recovery training curriculum is administered through an interactive web training system. Summit is the leading safety training solution and includes all OSHA compliance training tools as well as other industrial and skills training courses. The Summit system includes everything from asbestos compliance to confined spaces, lockout tag out, and hot work permits. Coupled with our monthly safety inspection program, supervisor skills training courses, and toolbox talks, safety and training are thoroughly enforced so that all ABM sites are in 100% compliance. During the transition process, we will evaluate all staff members and recommend minimum training programs during the first year of employment. We will balance training and workloads to ensure that training time in no way impacts operations. “Ask the Chief” Technical Forum “Ask The Chief” is one of the many ways we are leading the industry in providing the best technical support, training and resources available to our staff and clients. ‘Ask the Chief “ is a national technical forum connecting thousands of engineers, maintenance technicians and clients across the country in the sharing of best practices, procedures, and field technical questions. This popular forum is hosted on our intranet portal and is widely used across the country. “E-Learning” “Ask the Chief”

23. Innovation

24. Business Case Process • Operating Cost Reduction. • We take a unique approach in partnering with our clients to drive cost savings. We focus on the most significant savings opportunities, leverage our experts to develop the business case analysis, and work tirelessly for the AT&T team through approval , execution and performance measurement. This approach has been proven to be the single most effective way for our clients to drive to the most efficient cost and operating model possible. The following are some of the areas we will impact during this process: Enterprise Rent-A-Car Case Study In 2006, we were approached by Enterprise to address an outsourcing of facility management services that wasn’t generating results. They faced very similar issues as AT&T. First, their site management staff was also incentivized to reduce costs to the point that capital improvement costs were skyrocketing, lawsuits were rising as safety and accessibility issues were not being addressed, and the brand was in jeopardy as sites became tired, dirty, and unappealing to customers. Within 60 days of the transition, we presented a solution that guarantied Enterprise a 14% savings while dramatically improving the quality of appearance and maintenance. It was a very challenging transition because the on site staff was used to making all cost decisions and in some cases, we needed to increase location costs. The most impressive result was the amount of capital cost reduction achieved. Prior to ABM, Enterprise was replacing one in 9 compressors per year. For the last four years, we have improved that ratio to above industry standard at 1 in 18 compressors per year or roughly doubling the life of their mechanical equipment.

25. Governance Plan • Communication and Escalation Flow • Site Facilities Management should communicate and/or resolve any disputes at the Execution Level of the Governance Model. Those issues that need to be escalated should be done through the site Facilities Management Leads and/or the Account Governance Team. At no time should any communications and/or disputes go outside of the Governance structure (ex: communications/disputes brought to a site GM’s attention prior to escalation to Executive Steering Committee). • Governance Scope • These are the critical areas of focus in the governance scope: • Maintain Strategic Alignment (maps to Executive Steering Committee) • Manage Service Delivery (maps to Account Management Team) • Operational Coordination (maps to Operations teams) • Administrative Coordination • Checks, Balances, and Controls • There are a number of specific processes and actions that are within the scope of governance. Listed here are some examples of processes and actions: • Manage, monitor, and improve against the Service Provider SLA and other contractual obligations • Develop and agree on the contracted performance metrics and how they will be measured and modified over time • Define and govern the Supplier dispute resolution escalation path and process • Monitor and govern Supplier resource deployment, personnel changes, and resource utilization • Define methodology for how Service Provider baseline work processes (industry standard and custom) are approved • Define and govern data management, data integrity, and data ownership Quarterly Business Review - Continuous Improvement ABM will prepare and present to the governing committee with Quarterly Business Reviews (QBR). Over half of the QBR will be dedicated to continuous improvement. The QBR will be presented by ABMs thought leaders and will focus on business case recommendations. Through a custom portal, specifically designed for AT&T, the QBR will track the status of all business cases, team leaders and estimated value.

26. Quality Management Our quality solution is focused on two key areas – Inspections and customer satisfaction surveys. Achieving quality is a primary objective of this transformation. We agree that there is a need for regional quality assurance staff to continually inspect sites and identify deficiencies as the site teams may not have the same alignment with AT&T to achieve brand standards and drive long term asset preservation objectives. We use our QMS 24/7 inspection system to collect site compliance information and transmit that information back to our service center staff for planning and dispatch. Also, as part of our quality process, we measure customer satisfaction through random surveys. We use Survey Monkey and have developed a series of questions that have been proven to accurately measure the performance of our service as well as identify opportunities for improvement or change. The results of these surveys are reviewed by our management team every month. As an ISO 9001:2000 certified organization, it is part of our culture and normal business practice to establish an ISO quality and compliance program for each onsite team. The initial ISO training will be conducted by our National Quality Program Director and local personnel support. Follow up training will occur monthly in the form of web-based improvement training modules. The elements of our quality program are very streamlined. We first start by establishing “Account Obligations” or the list of all the services that we have contractually committed to perform during the year. This list is mutually agreed upon and then becomes the basis for site team compliance. From the account obligations form, we set up a document management system for each team that helps them maintain both electronic and hard copy documentation of required services and tasks. During each year, our management team performs a “Self Audit” of the records to insure our teams are performing the account obligations. Deficiencies are documented and acknowledged in writing by the site supervisor. Each year, we add “Continual Improvement” goals to the account obligations that are also mutually agreed upon. Some of our more common continual improvement goals will include improvement in Energy Star™ efficiency ratings, improvement in average response and completion times for demand-based work, and revision of preventive maintenance task frequencies to improve efficiency. Annually, we retain a third party ISO-certified auditor to visit our sites and identify compliance or deficiencies. We are required to correct deficiencies within 90 days of the site inspection to maintain our ISO certification. The ultimate goal of our quality program is not to be ISO certified but to verify that we are performing our contract obligations, improving our performance each year, and correcting deficiencies in a timely manner.

27. Economic Proposal

28. Economic Solution to Optimize Cost and Service We propose an economic solution that contains four key elements to drive a seamless transition, immediate savings, and long term value. Our recommended structure is as follows: • After the transition due diligence process, we will guaranty a mutually agreed upon savings against your current annual operating costs which will become the baseline of costs. Cost savings for a portfolio of this nature can range from 0% to 20% but we anticipate savings may be on the lower side for this portfolio and would not project more than 10%. If we fail to meet the agreed upon reduction against the baseline, we will absorb the added cost. This savings does not include transition costs associated with capital replacements for vehicles, tools and equipment. Vehicles often represent the most significant capital transition cost. To minimize transition costs, we will amortize those costs over the three year term of the agreement. Unamortized costs are the responsibility of AT&T if the agreement ends before the initial three year term. The savings guaranty is based on like for like service and exclusion of capitalized replacements and improvements. • All costs associated with the operations will be passed through at our actual cost plus a fixed management fee that is based on 2011 work order volume as further described herein. A portion of the management fee will be placed at risk to meet a mutually agreed upon set of custom performance metrics that will include AT&T objectives such as safety, reliability, customer satisfaction, asset preservation and other key performance metrics. • A portion of our management fee will also be placed at risk and measured based on our delivery of additional innovation that drives added savings and value beyond the guaranty. This graphic illustrates how this process typically works. We provide a savings guaranty that is the gray section. The red section is the innovation piece that is driven through the business case analysis and quarterly business review process. The innovation component of the process is where AT&T will realize the greatest savings over time. Therefore, it is the combination of guarantied savings and innovation-driven savings that creates the glide path to optimization.

29. Pricing and Fees Clarifications As stated, our goal is full transparency and no surprises. Therefore, we have developed a concise way to define exactly how our services will be billed to AT&T: • What Our management fee includes: • All non-dedicated management, administrative support, technology and transition/transformation team efforts needed to drive the program and provide back-office support. • All ABM web-based technologies including a work order and preventive maintenance scheduling, tracking, reporting and accounting system, Ask the Chief, and access to the Summit training system. • Safety compliance including OSHA-compliant injury and illness prevention and environmental health and safety program, supervisor training and web-based tools/systems. • Drug testing and background screening for each employee. • ISO 9000-compliant quality assurance and on-site document management system. • Initial site assessments, employee evaluations, and enrollment in the EPA Energy Star™ energy benchmarking program. • All time and travel spent by local branch staff, senior management and corporate resources including HR, finance, accounting, recruiting, and ISO quality compliance. • All routine monthly visits, safety training monthly reporting support, quality support by the branch and district manager, QBR attendees, and annual site inspection/deficiency reports. • Other Pricing Clarifications: • All actual costs of contracted services, fixed labor rates, subcontractor rates, dedicated maintenance management and labor costs, benefits, payroll costs, supplies and materials paid for on behalf of AT&T, will be supported, purchased and managed as required at cost. • All actual wages paid for the dedicated staff are subject to a rate representing statutory taxes such as FICA, FUI, SUI, standard insurance including workers compensation, general liability and property damage, and payroll processing costs billed at a flat rate of (23%). Payroll costs are not factored against benefits or other labor-related costs. • Materials, including requested subcontracted services, telecommunications devices and tools paid directly by Supplier shall be furnished at cost. • Startup costs as needed, including vehicles and other capital investments transferred from the incumbent provider or purchased on behalf of AT&T, will be amortized over the term of the contract and billed monthly at cost. ABM will work with AT&T to minimize these costs by reusing any owned assets and replacing with the most cost effective solution available. • 30% of the management fees earned (profit component of overhead and profit) will be placed at risk to meet mutually agreed upon customized performance metrics. This portion of the management fee at risk will be billed each month but reconciled after each 12-month period to determine if a penalty rebate is due to AT&T for underperformance on key metrics. Any underperformance rebate will be credited to AT&T on the following invoice or repaid within 60 days. • Monthly invoices are due Net 30 from the invoice date.

30. Enterprise Management Team Estimated Cost Please refer to Schedule “A” that provides the estimated cost for the dedicated enterprise management team, transition costs, mobile tech teams, etc. We will adjust this staff as needed to meet ongoing portfolio changes and needs.