Exhibit 10.1

 

AMENDMENT NO. 2

TO

EMPLOYMENT AGREEMENT

 

This Amendment No. 2, dated as of March 15, 2005 (the “Amendment”) to the
Employment Agreement dated as of March 19, 2003, as amended by Amendment No. 1
thereto (together, the “Agreement”) by and among SPRINT CORPORATION, a Kansas
corporation (“SPRINT”), SPRINT/UNITED MANAGEMENT COMPANY, a Kansas corporation
and subsidiary of SPRINT (“SUMC”) (SPRINT, SUMC and their subsidiaries are
collectively referred to herein as the “Company”), and Gary D. Forsee
(“Executive”). Capitalized terms, if not otherwise defined herein, have the
meanings set forth in or provided by the Agreement, including in said Amendment
No. 1.

 

W I T N E S S E T H:

 

WHEREAS, Sprint and Executive have determined to amend the Agreement as set
forth below, to be effective upon and following the Effective Time.

 

NOW, THEREFORE, in consideration of the premises and of the covenants and
agreements set forth herein and for other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the Company and
Executive agree as follows, conditioned upon and subject to the consummation of
the Merger:

 

1. Section 2.01 of the Agreement is hereby amended and restated as follows.

 

“Section 2.01. Base Salary. The Company shall pay Executive an annual base
salary (the “Base Salary”) at the annual rate of $1,400,000, payable in equal
monthly installments or otherwise in accordance with the payroll and personnel
practices of the Company from time to time. Base Salary shall be reviewed
annually by the Board or a committee thereof to which the Board may from time to
time have delegated such authority (the “Committee”) for possible increase (but
not decrease) in the sole discretion of the Board or the Committee, as the case
may be.”

 

2. Section 2.02(a)(i) of the Agreement is hereby amended in its entirety to read
as follows:

 

“With respect to each fiscal year in the Employment Term, Executive shall be
eligible to participate in the Company’s Short-Term Incentive Plan, with a
target bonus opportunity of not less than 170% of Base Salary (the “Basic Bonus
Amount”) and a maximum bonus opportunity of 200% of the Basic Bonus Amount. For
2005, the target annual bonus opportunity shall be the sum of $2,040,000
prorated for the portion of the year prior to the consummation of the Merger and

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$2,380,000 for the portion of the year after such consummation. Except as
provided in Section 2.02(a)(ii) or as may be payable pursuant to Article 3,
Executive is not guaranteed the payment of any annual bonus.”

 

3. Article 2 of the Agreement is hereby amended by adding thereto a new Section
2.02A reading as follows:

 

“Following the Effective Time, Executive shall participate in a long-term
incentive plan (the “LTIP”) providing for the grant of equity and/or cash-based
awards such as options, restricted shares, restricted share units and
performance awards denominated in cash or shares. Awards to Executive under the
LTIP will be determined by the Committee in its discretion, provided that (i)
the target value for the first annual award under the LTIP to Executive after
the Effective Time shall not be less than $10,000,000, (ii) the guideline target
value of the second such annual award shall be $10,000,000, and (iii) each such
annual award shall be performance-based.”

 

4. Article 6 of the Agreement is hereby amended by adding thereto a new Section
6.17 reading as follows:

 

“The intent of the parties is that the compensation arrangements under this
Agreement will be in full compliance with Section 409A of the Internal Revenue
Code (“409A”) and the parties agree that to the extent any provision hereof
would be in violation thereof it will be adjusted in such manner as the parties
will mutually agree to be in compliance with 409A and to maintain the intent
hereof to the maximum extent possible.”

 

5. Unless specifically modified herein, all other terms and conditions of the
Agreement shall remain in effect.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, to
be effective as provided in the recitals hereto.

 

     SPRINT CORPORATION

/s/ Gary D. Forsee

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   By:  

 

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Gary D. Forsee    Name:          Title:          SPRINT/UNITED MANAGEMENT
COMPANY      By:  

 

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     Name:          Title:    

 

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