Exhibit 10.14


 


EMPLOYMENT AGREEMENT


 


This
Employment Agreement, dated as of February 24, 2003 is entered into between
Nextel Partners Operating Corp., a Delaware corporation, Nextel Partners, Inc.,
a Delaware corporation (collectively the “Company”), and John Chapple,
(“Executive”).


 


WHEREAS, the
Company desires to employ Executive and to enter into an agreement embodying
the terms of such employment (the “Agreement”), and Executive desires to accept
such employment and enter into this Agreement.


 


NOW, THEREFORE,
in consideration of the mutual covenants herein contained, the Company and
Executive, intending to be legally bound, hereby agree as follows:


 


1.                                       Employment.


 


(a)  Agreement to Employ.  Upon the terms and subject to the conditions
hereof the Company shall employ Executive as President and Chief Executive
Officer of Nextel Partners, Inc. and Nextel Partners Operating Corp. until the
Expiration Date (as defined in Section 1(b)), any date to which this Agreement
shall have been extended pursuant to section 1(b) or any earlier termination of
this Agreement pursuant to the provisions hereof.  Executive’s office shall be located in the Seattle, Washington
metropolitan area.  During the term of
his employment hereunder, Executive will devote substantially all of his
business time to the performance of his duties hereunder.


 


(b)  Employment Period.  Unless earlier terminated pursuant to the
provisions hereof, the initial term of Executive’s employment with the Company
shall be for a period of one year commencing on the date of this Agreement and
continuing until February 24, 2004 (the “Expiration Date”).  The term of this Agreement shall
automatically extend for successive one-year terms commencing on the Expiration
Date unless Executive or the Company’s Board of Directors provides written
notice to the other party at least thirty (30) calendar days prior to the end
of the then current term indicating that the party giving notice does not wish
to extend the Agreement.  In such event,
the Agreement shall terminate at the end of the then current term.


 


2.                                       Responsibility.  Executive shall be responsible for providing
overall strategic and operational leadership for the Company and for such other
duties commensurate with his position that may be assigned from time to time by
the Board of Directors of the Company. 
Executive shall report directly to the Board and shall be subject to the
overall supervision of the Board.


 

















 


3.                                       Compensation
and Benefits.


 


(a)          Salary
and Bonus.


 


(i)  The Company shall pay Executive a base
salary in the annual amount of $375,000 payable in accordance with the
Company’s normal payroll practices.


 


(ii)  The Company shall establish a performance
based program pursuant to which Executive shall receive, if performance targets
are met, an additional annual cash payment of up to one hundred percent (100%)
of Executive’s then current base salary (or such higher amount as the
Compensation Committee may approve), and shall offer to Executive a benefits
package equivalent to that provided to the Company’s other senior executive’s,
including, but not limited to, a life insurance policy on the life of Executive
and payable upon death of the Executive to a beneficiary or beneficiaries
designated by Executive, in an amount not less than $500,000.


 


(iii)  For so long as this Agreement is renewed,
the Compensation Committee of the Board of Directors shall each year on or
before the anniversary date of this Agreement review the Executive’s base
salary and bonus payment in light of the performance of Executive and the
Company, and may increase (but not decrease) such base salary and bonus payment
by an amount it determines to be appropriate.


 


(b)  Expenses.  Executive shall maintain his own automobile
and shall carry liability insurance in the minimum amount of $300,000.  The Company shall reimburse Executive
monthly for business use of his automobile at the prevailing IRS rate per
mile.  Executive shall also be
reimbursed monthly for all other reasonable out-of-pocket expenses incurred or
paid by Executive while representing the Company or conducting Company
business.  Executive shall be
responsible for maintaining records reasonably satisfactory to support all
claimed business usage of his automobile and to substantiate all out-of-pocket
expenses incurred for which reimbursement is sought and shall furnish such
records to the Company in accordance with its policies.


 


(c)  Vacation.  Executive shall be entitled to 15 vacation
days each calendar year, any or all of which may be carried over into a new
calendar year, for a maximum accrual of 30 days.  Upon termination of Executive’s services under this Agreement,
Executive will be paid for unused vacation time earned through the last
completed month of service, computed at the rate of ten hours per month.


 


(d)  Indemnification.  The Company shall indemnify and hold
Executive harmless in accordance with the terms of the Company’s certificate of
incorporation and bylaws, in each case as in effect on the date hereof.


 


(e)  D&O Insurance.  The Company shall maintain directors and
officers’ liability insurance coverage covering Executive in amounts customary
for similarly situated companies in the telecommunications industry and with
reputable insurers.  All


 


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such policies shall provide for
coverage to Executive on the same terms and conditions applicable to the
coverage provided under such policies to the Company’s other directors and
officers.


 


4.                                       Nondisclosure
of Proprietary and Confidential Information.


 


(a)  Confidential Information.  Executive agrees to refrain (whether during
or after his employment with the Company) from disclosing or using, except as
permitted by this Agreement, any secrets or confidential information with
respect to the Company or any of the Company’s direct or indirect wholly owned
subsidiaries (collectively the “Covered Entities”), including without
limitation its trade secrets, patents, affairs, business plans, strategic,
commercial or financial information other than information that is or becomes
publicly available through no fault of Executive (the “Confidential
Information”).  Executive may disclose
or communicate only such information as is reasonable required or specifically
approved by the Board of Directors or authorized management personnel of the
Company designated by the Board of Directors in connection with Executive’s
services.  Confidential Information may
be used solely for the benefit of the Company, and Executive shall not make any
other use of such information. 
Executive agrees that all materials relating to the business of any
Covered Entity that are provided or made available to Executive, or created by
Executive, during the course of Executive’s services to the Company shall be
and remain the property of the Company and/or the applicable Covered Entity
(subject to the terms of any separate agreement between the Company and/or its
Parent Companies and the affected Covered Entity), whether or not such
materials constitute or contain Confidential Information, and all copies of such
materials shall be returned to the Company immediately upon the termination of
Executive’s services to the Company.  In
the event that the Company notifies the Executive that it has entered into a
confidentiality agreement with a Covered Entity or with any Affiliate of the
Company with respect to confidential information provided to the Company, the
Executive shall comply with such reasonable obligations thereunder as are
applicable to the Executive.


 


(b)  Innovations; Inventions.  Executive hereby sells, transfers and
assigns to the Company all right, title and interest of Executive in and to any
and all inventions, ideas, disclosures and improvements of any kind or nature
whatsoever, whether patented or unpatented, and any and all copyrightable materials,
in either case whether made or conceived in whole or in part by Executive alone
or together with others during the initial term of this Agreement or any
renewal term, that (i) relate to any methods, designs, products, processes,
apparatus, service or devices sold, leased used or under construction or
development by the Company or the Covered Entities, (ii) relate to the
business, functions or operations of the Company or the Covered Entities, or
(iii) arise from, in whole or in part, the efforts of Executive on behalf of
the Company.  Executive will communicate
and disclose to the Company promptly all information, data and details
pertaining to any inventions, ideas, disclosures and improvements described
above, in such form or format as the Company may reasonably request.  During the term of this Agreement or any
renewal term and thereafter, Executive will execute, acknowledge or deliver to
the Company (at the Company’s expense) such formal transfers and


 


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assignments and such other
papers and documents as may be required of Executive to permit the Company to
file and prosecute any patent applications the Company desires to file and
prosecute relating to any of the foregoing, and, as to copyrightable material,
to obtain copyright thereon.


 


5.                                       Non-Competition;
Non-Solicitation.


 


(a)  In view of the unique value
to the Company of Executive’s services and because of the Confidential
Information to be obtained by or disclosed to Executive as described above, Executive
agrees that, during the term of this Agreement and for a period of one year
thereafter, provided that this Agreement is not terminated by the Company
without Cause or by the Executive for Good Reason:


 


(i)  Executive will not directly or indirectly
assist or become associated with any wireless voice communication service
provider in any business of such provider that competes in any of the markets
of any of the Covered Entities, whether as a principal, partner, employee,
consultant or shareholder (other than as a holder of less than 5% of the
outstanding voting shares of any publicly traded company);


 


(ii)  Executive will not directly or indirectly
solicit for employment or employ any employee of any of the Covered Entities,
unless such solicited person shall have ceased to be employed by any such
entity for a period of at least six months; and


 


(iii)  Executive will not directly or indirectly
solicit business from customers of any of the Covered Entities, provided that
the foregoing shall not restrict Executive or any entity with which Executive
is associated from soliciting or doing business with any customer of any of the
Covered Entities, if such solicitation does not interfere with any business
relationship between such solicited customer and any of the Covered Entities.


 


(b) 
If Executive violates any provision of Section 4 or Section 5(a), the
Company shall be entitled to receive from Executive reimbursement for any and
all damages caused by such breach, provided that Executive shall not be liable
for indirect, special, consequential or punitive damages (it being understood
and agreed that this remedy is in addition to, and not a limitation on, any
injunctive relief or other rights or remedies to which the Company is or may be
entitled to at law or in equity). 
Executive acknowledges and agrees that the Company’s (and as applicable,
each Covered Entity’s) remedies at law for a breach of any provision of Section
4 or Section 5(a) would be inadequate and, in recognition of this fact,
Executive agrees that, in the event of such a breach, in addition to any
remedies at law, the Company and, as to Section 4, each Covered Entity, without
posting any bond, shall be entitled to obtain equitable relief in the form of
specific performance, temporary restraining order, temporary or permanent
injunction or any other equitable remedy which may then be available.  As provided in Section 10(i) hereof, the
equitable remedies referenced in this Section 5(b) shall be in addition to, and
not in substitution for or exclusion of, any other remedies available at law or
in equity for any breach of either or both of Sections 4 or 5.  Executive and the


 


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Company each specifically
acknowledge and agree that the provisions of Sections 4 and 5 are for the
express benefit of each Covered Entity and that (i) no waiver, amendment or
other modification of Sections 4 or 5 with respect to a Covered Entity shall be
effective unless it has been consented to in writing by such Covered Entity,
and (ii) each such Covered Entity shall be entitled to enforce the provisions
of Section 4 and/or 5 hereof (as appropriate) as fully and with the same rights
and effect as if such Covered Entity were a signatory party to this Agreement.


 


(c)  If any provisions of
Section 4 or Section 5(a) are held to be invalid or unenforceable, the
remaining provisions shall nevertheless continue to be valid and enforceable as
though the invalid or unenforceable parts had not been included.


 


6.                                       Noncontravention.  The execution, delivery and performance by
Executive of this Agreement does not and will not (i) violate any applicable
law, rule, regulation, judgment, injunction, order or decree or (ii) require
any consent or other action by any person under, constitute a default under
(with due notice or lapse of time or both), or give rise to any right of
termination, cancellation or acceleration of any right or obligation of
Executive or to a loss of any material benefit to which Executive is entitled
under any provision of any agreement or other instrument binding upon
Executive, to the extent that any of the foregoing would have a material
adverse effect on Executive or would prevent or otherwise render unable
Executive to perform his obligations under this Agreement.


 


7.                                       Termination.  This Agreement shall automatically terminate
(and the term of this Agreement shall thereupon terminate) upon the occurrence
of any one of the following events:


 


(a)  Death of Executive.


 


(b)  If Executive shall have
been incapacitated from illness, accident or other disability and unable to
perform his normal duties hereunder for a cumulative period of three months in
any period of six consecutive months, and no reasonable accommodation being
available, upon either party giving the other party not less than 30 days
written notice.


 


(c)  The Expiration Date or the
scheduled expiration date of any renewal or extension thereof in compliance
with Section 1(b).


 


(d)  By the Company for Cause.


 


(e)  By the Executive for Good
Reason.  Upon the occurrence of any
event or the existence of any condition or circumstance constituting Good
Reason, Executive may by notice to the Board of Directors, deem a constructive
termination of this Agreement to have occurred, whereupon Executive shall be
entitled to compensation set forth in Section 8(b).


 


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(f) Upon not less than 30 days written notice from Executive to the
Company of his voluntary resignation; provided that such voluntary resignation
shall not relieve or release Executive from any breach of this Agreement at or
prior to the time of such resignation.


 


8.                                       Effect
of Termination.


 


(a)  Upon termination of this
Agreement pursuant to Sections 7(a), (b), (c), (d) or (f), the Company shall
compensate Executive (or, in the event of Executive’s death, his surviving
spouse, if any, or his estate), for (x) accrued but unused vacation time, (y)
any base salary earned, but unpaid, for services rendered to the Company on or
prior to the date of termination and (z) amounts which the Executive is
otherwise entitled to receive under the terms of or in accordance with any
plan, policy, practice or program of, or contract or agreement with the
Company, as in effect immediately prior to the date of such termination, at or subsequent
to the date of termination without regard to the performance by Executive of
further services or the resolution of any contingency, but subject to any and
all rights, remedies and claims of the Company against Executive.


 


(b)  If Executive resigns for
Good Reason or his employment with the Company is terminated without Cause, the
Company shall thereupon pay Executive the following amounts as severance
benefits: (i) all amounts payable pursuant to Section 8(a), and (ii) a lump sum
equal to one year’s base salary hereunder plus an amount equal to the most
recent annual bonus, if any, received by Executive pursuant to Section
3(a)(ii).


 


9.                                       Definitions.  As used herein, the following terms shall
have the following meanings set forth below:


 


“Cause” means (i) Executive’s conviction of a felony evidencing
criminal dishonesty or moral turpitude, (ii) a willful and material breach of
Executive’s duty of loyalty to the Company or (iii) after 20 business days
following Executive’s receipt of written notice from the Company specifying the
particulars in reasonable detail, Executive’s failure to Comply with or to
cure, as applicable (A) a willful and material refusal to comply with specific
written directions of the Board of Directors (or specific written directions of
the Chief Executive Officer) consistent with Executive’s employment agreement
with the Company or any of their respective subsidiaries and capable of being
performed by him or (B) a willful and material breach of Executive’s duty of
due care to the Company.


 


“Good Reason” means (i) a material adverse change in Executive’s
duties, responsibilities or reporting relationships, including without
limitation Executive’s not being elected to the Board or his removal from the
Board other than for “Cause” in accordance with the provisions of the
Shareholders’ Agreement, (ii) a relocation of Executive’s principal office to a
location more than 30 miles away from his then current office, (iii) a
reduction of salary not agreed to by Executive, or a material diminution of
other employee benefits (other than any change in employee benefits approved by
the


 


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Board and implemented in a
non-discriminatory fashion with respect to all participating employees), or any
other material adverse change in his working conditions, and (iv) a material
breach by the Company of other obligations under Executive’s employment
agreement with the Company or a subsidiary of the Company that are not cured
after 20 business days following the Company’s receipt of a written
notification from Executive specifying the particulars in reasonable detail.


 


“Shareholders’ Agreement” means that certain Amended and Restated
Shareholders’ Agreement dated as of February 18, 2000 among Nextel Partners,
Inc. and the shareholders named therein, as such agreement may be amended and
modified from time to time.


 


10.                                 Miscellaneous.


 


(a)  Merger; Amendment.  This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof, and
may be changed, extended or modified only by an agreement in writing signed by
the parties.


 


(b)  Assignment.  The rights and obligations of the Company in
this Agreement shall inure to its benefit and be binding upon its successors in
interest (whether by merger, consolidation, reorganization, sale of stock or
assets or otherwise), provided that Executive shall not remain bound by this
Agreement unless such successor assumes all of the obligations of the Company
hereunder.  This Agreement shall also
inure to the benefit of Executive’s heirs, executors, administrators and legal
representatives.  This Agreement, being
for the personal services of Executive, shall not be assignable by Executive.


 


(c)  Waiver of Breach.  The waiver by any party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach by any party.


 


(d)  Arbitration.  Except as otherwise provided herein, any
controversies or claims arising out of, or relating to this Agreement or the
breach thereof, shall be settled by arbitration in accordance with the
commercial rules of the American Arbitration Association, which decision shall
be final and binding on the parties, and judgment upon the award rendered shall
be entered in any court having jurisdiction thereof.  Any party may demand such arbitration in accordance with the
procedures set out in those rules.  The
arbitration shall be conducted in Seattle, Washington, or such other location
as may be mutually agreed upon by the parties. 
The arbitrator shall not award special, consequential, or punitive
damages.  In the event of any
arbitration proceeding hereunder, the Company will (x) pay the fees and
expenses of the arbitrator and (y) advance the Executive’s documented out-of-pocket
costs (including reasonable counsel fees and expenses) on a current basis,
provided, that if Executive is determined not to be the substantially
prevailing party on the matters submitted for arbitration (which determination
shall be made by the arbitrator and included in his or her decision), Executive
will promptly reimburse the Company for any expenses so advanced.


 


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Executive acknowledges that the
Company is agreeing to make advances to him pursuant to the preceding sentence
in consideration of his agreement to reimburse the Company for any such
advances to the extent required by the preceding sentence.  The Company will in all events pay its own
costs (including counsel fees and expenses) in connection with any arbitration
proceeding hereunder.


 


(e)  Notices.  All notices given hereunder shall be in
writing and shall be deemed to have been duly given and received (i) when
delivered personally, with receipt acknowledged in writing by the recipient, (ii)
on the tenth business day after being sent by registered or certified mail
(postage paid, return receipt requested), (iii) one business day after being
sent by a reputable overnight delivery service, postage or delivery charges
prepaid, or (iv) on the date on which a facsimile is transmitted, in each case
to the parties at their respective addresses stated below; provided, that if
the intended recipient of any notice hereunder refuses to acknowledge receipt
thereof in writing, such notice shall be deemed to have been given on the date
of such refusal.  Any party may change
its address for notice by giving notice of the new address to the other party
in accordance with the provisions of this paragraph.


 


If to the Company:


 


Nextel Partners, Inc.


4500 Carillon Point


Kirkland, WA 98033


Attention: General Counsel


Facsimile: 425-576-3666


 


If to Executive:


 


John Chapple


4500 Carillon Point


Kirkland, WA 98033


Facsimile: 425-576-3666


 


And to:


 


John Chapple


14015 221st Avenue NE


Woodinville, WA 98072


 


(f)  Severability.  The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and the Agreement shall be construed in all respects as though such
invalid or unenforceable provision were omitted.


 


(g)  Survival.  The provisions of Sections 3(d), 4, 5, 8 and
10 shall survive any termination of this Agreement.


 


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(h)  Governing Law.  This Agreement shall be interpreted
according to the internal laws of the State of Washington, without regard to
choice of law rules that would result in the application of the laws of another
state.


 


(i)  Remedies Cumulative.  All rights, powers and remedies provided
under this Agreement or otherwise available in respect hereof at law or in
equity shall be cumulative and not alternative, and the exercise or the
beginning of the exercise of any thereof by any party shall not preclude the
simultaneous or later exercise of any other such right, power or remedy by such
party.


 


(j)  Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.


 


IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.


 


	
   

  	
   

  	
  NEXTEL PARTNERS OPERATING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Donald J. Manning

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President, General Council and

  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEXTEL PARTNERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Donald J. Manning 

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President, General Council and

  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John Chapple

  	
   

  
	
   

  	
   

  	
  John Chapple

  
							



 


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