Document:

exv10w2

Exhibit 10.2

Sterling Chemicals, Inc.

Long-Term Incentive Plan

     1. Purposes. The purposes of this Long-Term Incentive Plan (this “Plan”) are
to provide an incentive to executive officers and other designated employees of Sterling Chemicals,
Inc., a Delaware corporation (the “Corporation”) to contribute to the growth and
profitability of the Corporation, to increase shareholder value of the Corporation, to retain such
employees and to endeavor to qualify the compensation paid such employees under this Plan for tax
deductibility under Section 162(m) of the Code.

     2. Definitions. Capitalized terms used in this Plan shall have the following
respective meanings, except as otherwise provided herein or as the context shall otherwise require:

     “Award” means the right of a Participant to receive cash or other property
following the completion of a Performance Period based upon performance in respect of one or
more of the Performance Goals during such Performance Period, as specified in Section 5(a).

     “Board” means the Board of Directors of the Corporation.

     “Cause” means, with respect to any Participant, any of the following:

     (i) the commission by such Participant of acts of dishonesty or gross misconduct
which are demonstrably injurious to the Corporation (monetarily or otherwise) in any
material respect;

     (ii) the failure of such Participant to observe and comply in all material respects
with the Corporation’s published policies relating to alcohol and drugs, harassment or
compliance with applicable laws;

     (iii) the failure of such Participant to observe and comply with any other lawful
published policy of the Corporation, but, in the case of any such failure that is
capable of being remedied, only if such failure shall have continued unremedied for more
than 30 days after written notice thereof is given to such Participant by the
Corporation;

     (iv) the willful failure of such Participant to observe and comply with all lawful
and ethical directions and instructions of the Board or the Chief Executive Officer of
the Corporation;

     (v) the refusal or willful failure of such Participant to perform, in any material
respect, his or her duties with the Corporation, but only if such failure was not caused
by disability or incapacity and shall have continued unremedied for more than 30 days
after written notice thereof is given to such Participant by the Corporation;

 

 

     (vi) the conviction of such Participant for a felony offense; or

     (vii) any willful conduct on the part of such Participant that prejudices, in any
material respect, the reputation of the Corporation in the fields of business in which
it is engaged or with the investment community or the public at large, but only if such
Participant knew, or should have known, that such conduct could have such result.

     “Change in Control” means the occurrence of one of the following events:

     (i) the acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”), other than Resurgence Asset Management,
L.L.C. and/or any of its or its affiliated managed funds or accounts
(“Resurgence”), of the Corporation’s securities if, immediately thereafter, such
Person is the beneficial owner (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of the combined voting power of the then-outstanding voting
securities of the Corporation entitled to vote generally in the election of directors
(the “Outstanding Corporation Voting Securities”); provided, however, that the
following acquisitions shall not constitute a Change of Control: (A) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any of its affiliates; or (B) any acquisition by any corporation pursuant to a
transaction that complies with subclauses (iii)(A), (iii)(B) and (iii)(C) of this
definition;

     (ii) the time at which individuals who, within any 12 month period, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual whose election, or
nomination for election by the Corporation’s stockholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board;

     (iii) consummation of a reorganization, merger, statutory share exchange or
consolidation or similar corporate transaction involving the Corporation or any of its
subsidiaries, a disposition of assets by the Corporation or the acquisition of assets or
stock of another entity by the Corporation or any of its subsidiaries (each, a
“Business Combination”), in each case unless, following such Business
Combination, (A) all or substantially all of the individuals and entities that were the
beneficial owners of the Outstanding Corporation Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding voting securities entitled to vote generally in the election of
directors of the corporation resulting from such Business Combination (including a
corporation that, as a result of such transaction, owns the Corporation or has purchased
the

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Corporation’s assets in a disposition of assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership immediately prior
to such Business Combination of the Outstanding Corporation Voting Securities, (B) no
Person (excluding Resurgence or any employee benefit plan (or related trust) of the
Corporation or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 50% or more of the combined voting power of the
then-outstanding voting securities of such corporation, except to the extent that such
ownership existed prior to the Business Combination, and (C) at least a majority of the
members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the
initial agreement or of the action of the Board providing for such Business Combination;
or

     (iv) approval by the stockholders or other relevant stakeholders of the Corporation
of a complete liquidation or dissolution of the Corporation.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions thereto.

     “Committee” means a committee composed of at least two members of the Board who
qualify as “outside directors” within the meaning of Section 162(m) of the Code.

     “Corporation” means Sterling Chemicals, Inc., a Delaware corporation, and any
entity that succeeds to all or substantially all of its business.

     “Disability” means, with respect to any Participant, either (i) such Participant
is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) such Participant
is, by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under
an accident and health plan covering employees of the service provider’s employer.

     “Effective Date” means August 7, 2009.

     “Eligible Employee” means the Chief Executive Officer, the President and each
Senior Vice President of the Corporation and other key employees of the Corporation or any of
its subsidiaries selected by the Committee.

     “GAAP” means accounting principles generally accepted in the United States.

     “Good Reason” means, with respect to any Participant, the occurrence, and a
failure by the Corporation to cure within 30 days after receiving notice (which notice must be
within 30 days of such occurrence), of any of the following:

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     (i) a material and adverse change in such Participant’s reporting responsibilities,
titles or elected or appointed offices as in effect immediately prior to the effective
date of such change, including any change caused by the removal of such Participant
from, or the failure to re-elect such Participant to, any material corporate office of
the Corporation held by such Participant immediately prior to such effective date but
excluding any such change that occurs in connection with such Participant’s death,
disability or retirement;

     (ii) the assignment to such Participant of duties or responsibilities that are
materially inconsistent with such Participant’s status, positions, duties,
responsibilities and functions with the Corporation immediately prior to the effective
date of such assignment;

     (iii) a material reduction by the Corporation in such Participant’s base
compensation and bonus opportunity in effect immediately prior to the effective date of
such reduction;

     (iv) the failure of the Corporation to maintain employee benefit plans, programs,
arrangements and practices entitling such Participant to benefits that, in the
aggregate, are at least as favorable to such Participant as those available to such
Participant under the benefit plans in which he or she was a participant immediately
prior to the effective date of such failure: provided, however, that the amendment,
modification or discontinuance of any or all such employee benefit plans, programs,
arrangements or practices by the Corporation shall not constitute “Good Reason”
hereunder if such amendment, modification or discontinuance applies generally to the
Corporation’s salaried work force and does not single out such Participant for disparate
treatment; or

     (v) any change of more than 75 miles (or, in the case of any Participant for whom
the Compensation Committee has approved a shorter distance, such shorter distance) in
the location of the principal place of employment of such Participant immediately prior
to the effective date of such change.

     “Participant” means an Eligible Employee designated by the Committee to
participate in this Plan for a designated Performance Period.

     “Performance Goals” means or may be expressed in terms of any of the following
business criteria: revenue, earnings before interest, taxes, depreciation and amortization
(“EBITDA”), free cash flow, funds from operations, funds from operations per share,
operating income (loss), pre or after tax income (loss), cash available for distribution, cash
available for distribution per share, cash and/or cash equivalents available for operations,
net earnings (loss), earnings (loss) per share, return on equity, return on assets, share
price performance, improvements in the Corporation’s attainment of expense levels,
implementing or completion of critical projects, including, without limitation,

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implementation of strategic plan(s), improvement in investor relations, marketing and
manufacturing of key products, improvement in cash-flow (before or after tax), development of
critical projects or product development, or progress relating to research and development. A
Performance Goal may be measured over a Performance Period on a periodic, annual, cumulative
or average basis and may be established on a corporate-wide basis or established with respect
to one or more operating units, divisions, subsidiaries, acquired businesses, minority
investments, partnerships or joint ventures. Unless otherwise determined by the Committee by
no later than the earlier of the date that is ninety days after the commencement of the
Performance Period or the day prior to the date on which 25% of the Performance Period has
elapsed, the Performance Goals will be determined by not accounting for a change in GAAP
during a Performance Period.

     “Performance Objective” means the level or levels of performance required to be
attained with respect to specified Performance Goals in order that a Participant shall become
entitled to specified rights in connection with an Award.

     “Performance Period” means one or more periods of time, as the Committee may
select, over which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant’s right to, and the payment of, an Award.

     “Plan” means this Long-Term Incentive Plan, as amended from time to time.

     3. Administration. (a) Authority. This Plan shall be administered by the
Committee. The Committee is authorized, subject to the provisions of this Plan, in its sole
discretion, from time to time to (i) select Participants, (ii) grant Awards under this Plan, (iii)
determine the type, terms and conditions of, and all other matters relating to, Awards, (iv)
prescribe Award agreements (which need not be identical) or otherwise communicate the terms of
Awards, (v) establish, modify or rescind such rules and regulations as it deems necessary for the
proper administration of this Plan and (vi) make such determinations and interpretations and to
take such steps in connection with this Plan or the Awards granted thereunder as it deems necessary
or advisable. All such actions by the Committee under this Plan or with respect to the Awards
granted thereunder shall be final and binding on all persons.

     (b) Manner of Exercise of Committee Authority. The Committee may delegate its
responsibility with respect to the administration of this Plan to one or more officers of the
Corporation, to one or more members of the Committee or to one or more members of the Board;
provided, however, that the Committee may not delegate its responsibility (i) to make Awards to
executive officers of the Corporation, (ii) to make Awards that are intended to constitute
“qualified performance-based compensation” under Section 162(m) of the Code or (iii) to certify the
satisfaction of Performance Objectives pursuant to Section 5(g) in accordance with Section 162(m)
of the Code. The Committee may also appoint agents to assist in the day-to-day administration of
this Plan and may delegate the authority to execute documents under this Plan to one or more
members of the Committee or to one or more officers of the Corporation.

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     (c) Limitation of Liability. The Committee may appoint agents to assist it in
administering this Plan. The Committee and each member thereof shall be entitled to, in good
faith, rely or act upon any report or other information furnished to him or her by any officer or
employee of the Corporation, the Corporation’s independent certified public accountants,
consultants or any other agent assisting in the administration of this Plan. Members of the
Committee and any officer or employee of the Corporation acting at the direction or on behalf of
the Committee shall not be personally liable for any action or determination taken or made in good
faith with respect to this Plan, and shall, to the extent permitted by law, be fully indemnified
and protected by the Corporation with respect to any such action or determination.

     4. Types of Awards. Subject to the provisions of this Plan, the Committee has the
discretion to grant Awards described in Section 5 to Participants.

     5. Awards. (a) Form of Award. The Committee is authorized to grant Awards
pursuant to this Section 5. An Award shall represent the conditional right of the Participant to
receive cash or other property based upon achievement of one or more pre-established Performance
Objectives during a Performance Period, subject to the terms of this Section 5 and the other
applicable terms of this Plan. Awards shall be subject to such conditions as shall be specified by
the Committee. Awards may be granted as cash awards, units or other property as the Committee may
determine.

     (b) Performance Objectives. The Committee shall establish the Performance
Objective(s) for each Award, consisting of one or more Performance Goals, and the amount or amounts
payable or other rights that the Participant will be entitled to upon achievement of such
Performance Objective(s). The Performance Objective(s) shall be established by the Committee prior
to, or reasonably promptly following the inception of, a Performance Period but, to the extent
required by Section 162(m) of the Code, by no later than the earlier of the date that is 90 days
after the commencement of the Performance Period or the day prior to the date on which 25% of the
Performance Period has elapsed (or, if longer or shorter, within the maximum period allowed under
Section 162(m) of the Code).

     (c) Additional Provisions Applicable to Awards. A Performance Objective may
incorporate one or more Performance Goals, in which case achievement with respect to each
Performance Goal may be assessed individually or in combination with each other. The Committee
may, in connection with establishing Performance Objectives for a Performance Period, establish a
matrix setting forth the relationship between performance on two or more Performance Goals and the
amount of the Award payable for that Performance Period. The Performance Objectives with respect
to a Performance Goal may be established as absolute terms, as relative to performance in prior
periods, as compared to the performance of one or more comparable companies or an index covering
multiple companies, or as otherwise determined by the Committee. Performance Objectives shall be
objective and shall otherwise meet the requirements of Section 162(m) of the Code. Performance
Objectives may differ for Awards granted to any one Participant or to different Participants.

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     (d) Duration of the Performance Period. The Committee shall establish the duration of
each Performance Period at the time that it sets the Performance Objectives applicable to that
Performance Period. The Committee shall be authorized to permit overlapping or consecutive
Performance Periods.

     (e) Adjustment. To the extent necessary to preserve the intended economic effects of
this Plan to the Corporation and the Participants, the Committee shall adjust Performance
Objectives, the Awards or both to take into account (i) a change in corporate capitalization, (ii)
a corporate transaction, such as any merger of the Corporation or any subsidiary into another
corporation, any consolidation of the Corporation or any subsidiary into another corporation, any
separation of the Corporation or any subsidiary (including a spinoff or the distribution of stock
or property of the Corporation or any subsidiary), any reorganization of the Corporation or any
subsidiary or a large, special and non-recurring dividend paid or distributed by the Corporation
(whether or not such reorganization comes within the definition of Section 368 of the Code), (iii)
any partial or complete liquidation of the Corporation or any subsidiary or (iv) a change in
accounting or other relevant rules or regulations (any adjustment pursuant to this clause (iv)
shall be subject to the timing requirements of the last sentence of Section 5(b) of this Plan);
provided, however, that no adjustment hereunder shall be authorized or made if and to the extent
that the Committee determines that such authority or the making of such adjustment would cause the
Awards to fail to qualify as “qualified performance-based compensation” under Section 162(m) of the
Code.

     (f) Maximum Amount Payable Per Participant Under This Section 5. With respect to
Awards to be settled in cash or property, a Participant shall not be granted Awards for all of the
Performance Periods commencing in a calendar year that permit such Participant in the aggregate to
earn a cash payment or payment in other property, in excess of $5,000,000.

     (g) Payment of Performance Compensation Awards.

     (i) Condition to Receipt of Payment. Except as otherwise provided at the time of
grant, a Participant must be employed by the Corporation on the last day of a Performance
Period to be eligible for payment in respect of an Award for such Performance Period.

       (ii) Limitation. Except as otherwise provided at the time of grant, a
Participant shall be eligible to receive payment in respect of an Award only to the extent
that the threshold level of the Performance Objectives for such Performance Period are
achieved.

     (iii) Certification. Following the completion of a Performance Period, the
Committee shall review and certify in writing whether, and to what extent, the Performance
Objectives for the Performance Period have been achieved and, if so, calculate and certify in
writing that amount of the Awards earned for such Performance Period. The Committee shall
then determine the amount of each Participant’s Award actually payable for the Performance
Period.

     (iv) Timing of Award Payments. Except as otherwise provided at the time of
grant, Awards granted for a Performance Period shall be paid to Participants as soon as

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administratively practicable, but in no event later than 15 days following completion of the
certifications required by this Section 5; which certification and payment will occur no later
than February 27 of the calendar year immediately following the last day of the relevant
Performance Period.

     (v) Change In Control. In the event of a Change in Control, any incomplete
Performance Periods applicable to Awards under this Section 5 in effect on the date the Change
in Control occurs shall end on the date of such change, and the Committee shall pay each
Participant an Award as provided for at the time of grant. Notwithstanding Section 5(e), in
the event of a Change in Control, the Committee shall not be authorized to reduce or eliminate
the Award. Any resulting amount hereunder due to a Participant shall be paid in a cash lump
sum no later than 15 days after the relevant Change in Control.

     (vi) Death/Disability of the Participant. In the event of the death or
Disability of a Participant, any incomplete Performance Period applicable to such Participant
in effect on the date of his or her death or Disability shall end on the date of such death or
Disability, and the Committee shall pay each Participant an Award as provided for at the time
of grant.

     6. General Provisions. (a) Termination of Employment. Except as otherwise
provided at the time of grant, in the event a Participant’s employment terminates for any reason
prior to the end of a Performance Period, he or she (or his or her beneficiary, in the case of
death) shall not be entitled to receive any Award for such Performance Period unless the Committee,
in its sole and absolute discretion, elects to pay an Award to such Participant.

     (b) Death of the Participant. Subject to Section 6(a), in the event of the death of a
Participant, any payments hereunder due to such Participant shall be paid to his or her beneficiary
as designated in writing to the Committee or, failing such designation, to his or her estate. No
beneficiary designation shall be effective unless it is in writing and received by the Committee
prior to the date of death of the Participant.

     (c) Taxes. The Corporation is authorized to withhold from any Award granted, any
payment relating to an Award under this Plan, or any payroll or other payment to a Participant,
amounts of withholding and other taxes due in connection with any transaction involving an Award,
and to take such other action as the Committee may deem advisable to enable the Corporation and
Participants to satisfy obligations for the payment of withholding taxes and other tax obligations
relating to any Award. This authority shall include authority for the Corporation to withhold or
receive other property and to make cash payments in respect thereof in satisfaction of a
Participant’s tax obligations, either on a mandatory or elective basis in the discretion of the
Committee.

     (d) Limitations on Rights Conferred under Plan and Beneficiaries. Neither status as a
Participant nor receipt or completion of a deferral election form shall be construed as a
commitment that any Award will become payable under this Plan. Nothing contained in this Plan or
in any documents related to this Plan or to any Award shall confer upon any Eligible Employee or
Participant any right to continue as an Eligible Employee or Participant for any

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future Performance Period or in the employ of the Corporation or constitute any contract or
agreement of employment, or interfere in any way with the right of the Corporation to reduce such
person’s compensation, to change the position held by such person or to terminate the employment of
such Eligible Employee or Participant, with or without cause, but nothing contained in this Plan or
any document related thereto shall affect any other contractual right of any Eligible Employee or
Participant. No benefit payable under, or interest in, this Plan shall be transferable by a
Participant except by will or the laws of descent and distribution or otherwise be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge.

     (e) Changes to this Plan and Awards. Notwithstanding anything herein to the contrary,
the Board, or a committee designated by the Board, may, at any time, terminate or, from time to
time, amend, modify or suspend this Plan; provided, however, that no termination or amendment or
modification of this Plan shall affect the rights or benefits of any Participant or the obligations
of the Corporation under this Plan under any Awards made prior to the effective date of such
termination or amendment or modification. No Award may be granted during any suspension of this
Plan or after its termination. Any such amendment may be made without stockholder approval.

     (f) Unfunded Status of Awards; Creation of Trusts. The Plan is intended to constitute
an “unfunded” plan for incentive and deferred compensation. With respect to any amounts payable to
a Participant pursuant to an Award, nothing contained in this Plan (or in any documents related
thereto), nor the creation or adoption of this Plan, the grant of any Award, or the taking of any
other action pursuant to this Plan shall give any such Participant any rights that are greater than
those of a general creditor of the Corporation; provided, however, that the Committee may authorize
the creation of trusts and deposit therein cash or other property or make other arrangements, to
meet the Corporation’s obligations under this Plan. Such trusts or other arrangements shall be
consistent with the “unfunded” status of this Plan unless the Committee otherwise determines with
the consent of each affected Participant. The trustee of such trusts may be authorized to dispose
of trust assets and reinvest the proceeds in alternative investments, subject to such terms and
conditions as the Committee may specify in accordance with applicable law.

     (g) Non-Exclusivity of this Plan. Neither the adoption of this Plan by the Board (or
a committee designated by the Board) nor submission of this Plan or provisions thereof to the
stockholders of the Corporation for approval shall be construed as creating any limitations on the
power of the Board to adopt such other incentive arrangements as it may deem necessary.

     (h) Governing Law. The validity, construction, and effect of this Plan, any rules and
regulations relating to this Plan, and any Award shall be determined in accordance with the laws of
the State of Delaware, without giving effect to principles of conflicts of laws, and applicable
Federal law.

     (i) Exemption Under Section 162(m) of the Code. The Plan, and all Awards issued
thereunder, are intended to be exempt from the application of Section 162(m) of the Code, which

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restricts under certain circumstances the Federal income tax deduction for compensation paid by a
public corporation to named executives in excess of $1 million per year. The Committee may,
without stockholder approval, amend this Plan retroactively or prospectively to the extent it
determines necessary in order to comply with any subsequent clarification of Section 162(m) of the
Code required to preserve the Corporation’s Federal income tax deduction for compensation paid
pursuant to this Plan.

     (j) Effective Date. The Plan is effective on the Effective Date and shall remain in
effect until it has been terminated pursuant to Section 6(e).

     (k) ERISA. The Plan is not intended and shall not be construed to be a retirement,
welfare or other employee benefit plan and shall not be governed by the Employee Retirement Income
Security Act of 1974, as amended.

     (l) Headings. The titles and headings of the sections in this Plan are for
convenience of reference only, and in the event of any conflict, the text of this Plan, rather than
such titles or headings shall control.

-10-EX-4.01

Exhibit 4.01

[FORM OF NOTE]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

 

SPRINT NEXTEL CORPORATION

8.375% NOTES DUE 2017

CUSIP NO. 852061AF7

ISIN NO. US852061AF78

 

			
	 	 	 
	No. [     ]
	 	$[                    ]

     SPRINT NEXTEL CORPORATION, a corporation duly organized and existing under the laws of Kansas
(herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered
assigns, the principal sum of [                                        ] Dollars on August 15, 2017, and to pay
interest thereon from August 13, 2009, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on February 15 and August 15 in each
year, commencing February 15, 2010, at the rate of 8.375% per annum, until the principal hereof is
paid or made available for payment, provided that any principal and premium, and any such
installment of interest, which is overdue shall bear interest at the rate of 8.375% per annum (to
the extent that the payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment, and such interest shall be
payable on demand. If any Interest Payment Date or the Maturity of this Security falls on a day
that is not a Business Day, the required payment shall be made on the next Business Day as if it
were made on the date the payment was due and no interest shall accrue on the amount so payable for
the period from and after the Interest Payment Date or the Maturity of this Security, as the case
may be, until the next Business Day. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date (or the next Business Day, as applicable) will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
which shall be the February 1 or August 1 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

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     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

* * * * * *

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     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

Dated: August [__], 2009

	 	 	 	 	 	 	 
	 	 	SPRINT NEXTEL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

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     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON	 	 
	 	 	TRUST COMPANY, N.A., as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

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     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under, and entitled to the
benefits of, an Indenture, dated as of November 20, 2006 (as
amended and supplemented by that certain resolution of the Pricing
Committee of the Financing Committee of the Company’s Board of
Directors, dated August 10, 2009, herein called the “Indenture”
which term shall have the meaning assigned to it in such instrument), between the Company and The
Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee,” which
term includes any successor trustee under the Indenture), to which Indenture reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof.

     The Company may redeem the Securities of this series at any time and from time to time, as a
whole or in part, at the Company’s option, on at least 30 days, but not more than 60 days, prior
notice mailed to the registered address of each Holder of the Securities of this series to be
redeemed, at a redemption price equal to the greater of:

     (1) 100% of the principal amount of the Securities of this series to be redeemed; and

     (2) the sum of the present values of the Remaining Scheduled Payments, discounted to
the Redemption Date, on a semi-annual basis, assuming a 360-day year consisting of twelve 30
day months, at the Treasury Rate, plus 50 basis points;

plus, in each case, accrued interest to the Redemption Date that has not been paid (such redemption
price, the “Redemption Price”).

     “Comparable Treasury Issue” means, with respect to the Securities of this series, the
United States Treasury security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term (“Remaining Life”) of the Securities of this series that
would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the
Securities of this series.

     “Comparable Treasury Price” means, with respect to any Redemption Date for the
Securities of this series: (1) the average of four Reference Treasury Dealer Quotations for that
Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer
Quotations; or (2) if the Trustee is provided with fewer than four Reference Treasury Dealer
Quotations, the average of all quotations provided to the Trustee.

     “Independent Investment Banker” means one of the Reference Treasury Dealers, to be
appointed by the Company.

     “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc., Citigroup
Global Markets Inc. and Wells Fargo Securities, LLC, and their successors, and one other firm that
is a primary U.S. Government securities dealer (each a “Primary Treasury Dealer”) which the
Company specifies from time to time; provided, however, that if any of them ceases
to be a Primary Treasury Dealer, the Company will substitute another Primary Treasury Dealer.

- 5 -

 

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury
Issue, expressed in each case as a percentage of its principal amount, quoted in writing to the
Trustee by such Reference Treasury Dealer at 3:00 p.m., New York City time, on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security of this series to
be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that
would be due after the related Redemption Date but for such redemption; provided,
however, that, if such Redemption Date is not an Interest Payment Date with respect to such
Security, the amount of the next succeeding scheduled interest payment thereon will be deemed to be
reduced by the amount of interest accrued thereon to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date for the Securities of this
series: (1) the yield, under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of the Federal Reserve
System and which establishes yields on actively traded United States Treasury debt securities
adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the Comparable Treasury Issue; provided, however, that if no
maturity is within three months before or after the Maturity of the Securities, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue will be determined
and the Treasury Rate will be interpolated or extrapolated from those yields on a straight line
basis, rounding to the nearest month; or (2) if that release, or any successor release, is not
published during the week preceding the calculation date or does not contain such yields, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that Redemption Date. The Treasury
Rate will be calculated on the third Business Day preceding the Redemption Date.

     On and after the Redemption Date, interest will cease to accrue on the Securities of this
series or any portion thereof called for redemption, unless the Company defaults in the payment of
the Redemption Price.

     In the event of redemption of this Security in part only, a new Security or Securities of
this series and of like tenor for the unredeemed portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof.

     If a Change of Control Triggering Event occurs with respect to the Securities of this series,
each Holder of Securities of this series shall have the right to require the Company to repurchase
all or any part, equal to $2,000 or an integral multiple of $1,000 thereafter, of that Holder’s
Securities of this series pursuant to an offer (a “Change of Control Offer”) on the terms
set forth herein. In the Change of Control Offer, the Company
shall offer a cash payment (a
“Change of Control Payment”) equal to 101% of the aggregate principal amount of Securities
of this series repurchased, plus accrued and unpaid interest on the Securities of this series up to
but excluding the date of repurchase. Within 30 days following any Change of Control Triggering
Event, if the Company had not, prior to the Change of Control Triggering Event, sent a redemption
notice for all the Securities of this series in connection with an optional redemption permitted by
the indenture, the Company shall mail or cause to be mailed a notice (the “Change of Control
Notice”) to each registered Holder briefly describing the event or events that constitute a
Change of Control Triggering Event and offering to repurchase Securities of this series on the date
specified in the Change of Control Notice (the “Change of Control Payment Date”), which
Change of Control Payment Date will be no earlier than 30 days and no later than 60 days from the
date the Change of Control Notice is mailed, pursuant to the procedures required herein and
described in the Change of Control Notice.

     The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable to any Change of Control Offer. To the extent the provisions of any securities laws or
regulations conflict with the provisions relating to the covenant described above, the Company shall
comply with the applicable securities laws and regulations and will not be deemed to have breached
our obligations under the provisions relating to the covenant described above by virtue of such
conflict.

     On the Change of Control Payment Date, the Company shall, to the extent lawful:

     1. accept for payment all Securities of this series or portions thereof properly
tendered pursuant to the Change of Control Offer;

     2. deposit with the Paying Agent, by 10:00 a.m. New York City time, an amount equal to
the Change of Control Payment in respect of all Securities of this series or portions
thereof properly tendered; and

     3. deliver or cause to be delivered to the Trustee the Securities of this series so
accepted together with an Officers’ Certificate stating the aggregate principal amount of
Securities of this series or portions thereof being purchased by the Company.

- 6 -

 

     The Company will determine whether the Securities of this series are properly tendered, and
the Trustee has no responsibility for, and may conclusively rely upon, the Company’s determination
with respect thereto. Subject to receipt of funds by the Paying Agent, the Paying Agent shall
promptly mail to each registered Holder of Securities of this series who has properly tendered the
Change of Control Payment for such Securities of this series, and the Trustee will promptly
authenticate, pursuant to Section 203 of the Indenture, and mail, or cause to be
transferred by book entry, to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities of this series surrendered, if any; provided that each such
new Security will be in a principal amount of $2,000 and integral multiples of $1,000. Any
Security so accepted for payment will cease to accrue interest on and after the Change of Control
Payment Date.

     Notwithstanding anything herein to the contrary, the Company shall not be required to make a
Change of Control Offer upon a Change of Control Triggering Event if a third party makes the Change
of Control Offer in the manner, at the times and otherwise in compliance with the requirements set
forth herein applicable to a Change of Control Offer made by the Company and purchases all
Securities of this series properly tendered and not withdrawn under the Change of Control Offer.

     The Company may make a Change of Control Offer in advance of a Change of Control Triggering
Event, and conditional upon the occurrence of such Change of Control Triggering Event, if a
definitive agreement is in place for the Change of Control Triggering Event at the time of making
the Change of Control Offer.

     If the Securities of this series receive an Investment Grade Rating by two of the Rating
Agencies, and notwithstanding that the Securities of this series may later cease to have an
Investment Grade Rating by either of the Rating Agencies, the Company shall be released from its
obligation to make a Change of Control Offer upon the occurrence of a Change of Control Triggering
Event. The Trustee shall be entitled to receive, and may conclusively rely upon, an Officer’s
Certificate specifying that the Securities of this series have received an Investment Grade Rating
by both Rating Agencies and stating that, pursuant to this covenant, the Company has been released
from its obligation to comply with the requirements herein relating to making a Change of Control
Offer upon the occurrence of a Change of Control Triggering Event.

     For the purposes of the provisions hereof relating to the making of a Change of Control Offer,
the following terms have the following meanings:

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act. The terms “Beneficially Owns” and “Beneficially Owned”
will have a corresponding meaning.

     “Change of Control” means the occurrence of any of the following:

     1. the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the Company’s and its Subsidiaries’ properties or assets, taken as a
whole, to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act);

     2. the adoption of a plan relating to the Company’s liquidation or dissolution; or

     3. any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the
voting power of the Company’s Voting Securities; provided that a
transaction in which the Company becomes a Subsidiary of another Person shall not
constitute a Change of Control if (a) the Company’s stockholders immediately prior to such
transaction Beneficially Own, directly or indirectly through one or more intermediaries, 50%
or more of the voting power of the outstanding Voting Securities of such other Person of
whom the Company is a Subsidiary immediately following such transaction and (b) immediately
following such transaction no person (as defined above) other than such other Person,
Beneficially Owns, directly or indirectly, more than 50% of the voting power of the
Company’s Voting Securities.

- 7 -

 

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Ratings Decline.

     “Corporation” means a corporation, association, joint-stock company or business trust.

     “Investment Grade Rating” means a rating equal to or greater than Baa3 by Moody’s and
BBB1 by S&P or the equivalent thereof under any new ratings system if the ratings systems of either
such Rating Agency shall be modified after the issue date of the Securities of this series, or the
equivalent rating of any other Ratings Agency the Company selects as provided in the definition of
Ratings Agencies below.

     “Moody’s” means Moody’s Investors Services, Inc. or any successor to the rating agency
business thereof.

     “Person” means any individual, Corporation, partnership, joint venture, trust, limited
liability company, unincorporated organization or government or any agency or political subdivision
thereof.

     “Ratings Agencies” means (1) Moody’s and S&P; and (2) if either Moody’s or S&P ceases
to rate the Securities of this series or ceases to make a rating on the Securities of this series
publicly available, an entity registered as a “nationally recognized statistical rating
organization” (registered as such pursuant to Rule 17g-1 of the Exchange Act) then making a rating
on the Securities of this series publicly available selected by the Company (as certified by an
officer’s certificate), which shall be substituted for Moody’s or S&P, as the case may be.

     “Ratings Decline” means the occurrence, during the period commencing on the date of
the first public announcement of the Change of Control or the intention to effect a Change of
Control and ending 90 days after the occurrence of the Change of Control, of a downgrade of the
rating of the Securities of this series by both Rating Agencies by one or more gradations
(including gradations within ratings categories as well as between rating categories).

     “S&P” means Standard & Poor’s Rating Services, a division of the McGraw-Hill
Companies, Inc., or any successor to the rating agency business thereof.

     “Subsidiary” means, with respect to any Person, a Corporation, partnership, limited
liability company or other business organization, whether or not incorporated, a majority of the
Voting Securities of which are owned, directly or indirectly, by such Person.

     “Voting Securities” of any Person means the stock or other ownership or equity
interests, of whatever class or classes, the holders of which ordinarily have the power to vote for
the election of the members of the board of directors, managers, trustees or other voting members
of the governing body of such Person (other than stock or other ownership or equity interests
having such power only by reason of the happening of a contingency).

- 8 -

 

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of all Outstanding
Securities affected. With respect to any series of Securities, the consent of the Holders of
Securities required by the Indenture may be obtained from either the Holders of a majority in
principal amount of the Securities of that series, or from the Holders of a majority in principal
amount of the Securities of that series and all other series affected by that consent, voting as a
single class. The Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time Outstanding, on behalf
of the Holders of all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
With respect to any series of Securities issued under the Indenture, in addition to obtaining
waivers from the Holders of a majority in principal amount of Outstanding Securities of that
series, a waiver of compliance with the Indenture and a waiver of past defaults under the Indenture
can also be obtained from the Holders of a majority in principal amount of debt securities of that
series and all other series affected by the waiver, whether issued under the Indenture or any other
indenture of the Company providing for such aggregated voting, all as a single class. Any such
consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder
and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

- 9 -

 

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form, without coupons, in
minimum denominations of $2,000 and thereafter any integral multiple of $1,000. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     No recourse for payment of the principal of, premium, if any, or interest on this Security, or
for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Company contained in the Indenture, or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had against any
incorporator or any past, present or future partner, shareholder, other equity holder, officer,
director, employee or controlling person, as such, of the Company or of any successor Person,
either directly or through the Company or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by enforcement of any assessment or penalty or otherwise,
it being expressly understood that all such liability, either at common law or in equity or by
constitution or statute, is hereby waived and released as a condition of, and as consideration for,
the execution of the Indenture and the issuance of this Security.

     THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

- 10 -

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