exv10w4



 




Exhibit 10.4










August 17, 2007




Mr. Robert Bennett

President

Discovery Holdings Company

12300 Liberty Boulevard

Englewood, CO 80112




RE: Sprint Nextel Stock Award




Dear Dob:



I am writing to provide you additional information regarding your recent special equity award. As
you know, on August 7, 2007 the Sprint Nextel Board awarded you a grant of 3,776 shares of Sprint
Nextel common stock, plus a cash payment of $113.46 for dividends that would have been earned. A
check in the amount of $113.46 is enclosed.



Of the 3,776 shares awarded to you, 3,767 shares are for services rendered by you as a Board member
for the time period from the date you joined the Board (October 8, 2006) to the date of the 2007
annual meeting of shareholders (May 8, 2007). Had the current practice of granting restricted
stock units (RSUs) to new directors been in place at the time of your appointment to the Board, you
would have received an RSU award valued at $62,500. This value was determined by dividing the
value of the annual RSU award ($100,000) made to outside directors, by 24 to establish the dollar
value for each half-month of service that a director can provide in a 12-month period ($100,000/24
= $4,166.67). We then multiplied $4,166.67 by the number of half-months of service you provided
between October 8, 2006 and May 8, 2007, which was 15 half-months ($4,166.67 x 15 = $62,500). The
number of shares awarded was then determined by dividing $62,500 by $16.59, which represents the
average 30-calendar day fair market value of Sprint Nextel common stock for the period beginning
August 16, 2006 and ending on September 14, 2006 ($62,500 /$16.59 = 3,767 shares).



The nine additional shares granted to you represent dividends that would have accrued on the 3,767
RSUs for the period from October 8, 2006 to May 8, 2007, which brings the total number of shares of
common stock granted to you to 3,776 shares (3,767 + 9).



The cash payment of $113.46 consists of (1) $19.06, which represents the cash value of fractional
share dividends, and (2) $94.40, which represents the second quarter cash dividends that would have
been paid on the shares had you received an RSU grant that vested on the May 8, 2007 annual meeting
date. These calculations are summarized on the attached worksheet.




 









 








Mr. Robert Bennett

Page 2

August 17, 2007



The amount that we will report on Form 1099-MISC for 2007 relating to this award is $75,255.86 (see
detail below). Your basis in the shares delivered equals $19.90 per share (the closing price of
Sprint Nextel common stock on Monday, August 6, 2007).




	 	 	 	 	 
	 	 	Amount to be	 
	 	 	reported on 2007	 
	 	 	Form 1099-MISC*	 
	3,776 shares of Sprint Nextel common
stock
	 	$	75,142.40	 
	Fractional share cash
	 	$	19.06	 
	2nd Quarter Dividend
Equivalent
	 	$	94.40	 
	 
	 	 	 
	Total
	 	$	75,255.86	 
	 
	 	 	 








 




			
	*	 	None of the amounts are from a qualified plan and therefore are not eligible for
roll-over to a qualified plan.




Per your instructions, these shares will be delivered to UBS. If you do not have access to your
UBS account and you require a statement or information regarding your account, please contact
George Lee, Vice President — Investments at UBS. He can be
reached at (719) 520-XXXX.



As a reminder, our director stock ownership guidelines require our outside directors to hold equity
or equity interests in our common stock with a value of at least $140,000 (which is two times the
annual board retainer amount), and to meet this requirement by the second anniversary of your
election to the board. In addition, minimum holding periods apply to equity and equity interests
acquired by outside directors from Sprint Nextel.



Congratulations on receiving this award. Sprint Nextel truly values the counsel, direction and
judgment of its Board members, and we look forward to working with you to achieve our goals and
objectives.



If you have questions about your equity award or the Director Compensation Program, please feel
free to contact me at (703) 433-XXXX.




My best regards,




Christie A. Hill




Enclosures

cc: Jim Hayes