Document:

exv10w43

 

Exhibit
10.43

EMPLOYMENT AGREEMENT

     THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of February 6, 2007
(the “Effective Date”), by and between Sprint Nextel Corporation, a Kansas corporation (the
“Company”) on behalf of itself and any of its subsidiaries, affiliates and related entities, and
Richard Lindahl (the “Executive”) (the Company and the Executive, collectively, the “Parties,” and
each, a “Party”). Certain capitalized terms are defined in Section 29.

WITNESSETH:

     WHEREAS,
the Executive serves the Company as Senior Vice President & Treasurer;

     WHEREAS, the Executive and the Company desire to enter into this Agreement; and

     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 the Executive agree as follows:

     1. Employment.

          (a) The Company will continue to employ the Executive and the Executive will continue to be
employed by the Company upon the terms and conditions set forth herein.

          (b) The employment relationship between the Company and the Executive shall be governed by the
general employment policies and practices of the Company, including without limitation, those
relating to the Company’s Code of Conduct, confidential information and avoidance of conflicts,
except that when the terms of this Agreement differ from or are in conflict with the Company’s
general employment policies or practices, this Agreement shall control.

     2. Term. Subject to termination under Section 9, the Executive’s employment shall be
for an initial term of 24 months commencing on the Effective Date and shall continue through the
second anniversary of the Effective Date (the “Initial Employment Term”). At the end of the
Initial Employment Term and on each succeeding anniversary of the Effective Date, the Employment
Term will be automatically extended by an additional 12 months (each, a “Renewal Term”), unless not
less than 12 months prior to the end of the Initial Employment Term or any Renewal Term, either the
Executive or the Company has given the other written notice (in accordance with Section 20) of
nonrenewal. The Executive shall provide the Company with written notice of his intent to terminate
employment with the Company at least 30 days prior to the effective date of such termination.

     3. Position and Duties of the Executive. 

          (a) The
Executive shall serve as Senior Vice President & Treasurer, and agrees to serve as an
officer of any enterprise and/or agrees to be an employee of any Subsidiary as may be requested
from time to time by the Board of Directors of the Company (the “Board”), any
committee or person delegated by the Board or the Chief Executive Officer of the Company (the
“Chief Executive Officer”). In such capacity, the Executive shall report directly to the Chief

 

 

Executive Officer of the Company or such other officer of the Company as may be designated by the
Chief Executive Officer. The Executive shall have such duties, responsibility and authority
commensurate with the Executive’s title and position, and such duties and responsibilities, as may
be assigned to the Executive from time to time by the Chief Executive Officer, the Board or such
other officer of the Company as may be designated by the Chief Executive Officer or the Board.

          (b) During the Employment Term, the Executive shall, except as may from time to time be
otherwise agreed to in writing by the Company, during reasonable vacations (as set forth in Section
7 hereof) and authorized leave and except as may from time to time otherwise be permitted pursuant
to Section 3(c), devote his best efforts, full attention and energies during his normal working
time to the business of the Company, any duties as may be delineated in the Company’s Bylaws for
the Executive’s position and title and such other related duties and responsibilities as may from
time to time be reasonably prescribed by the Board, any committee or person designated by the
Board, or the Chief Executive Officer, in each case, within the framework of the Company’s policies
and objectives.

          (c) During the Employment Term, and provided that such activities do not contravene the
provisions of Section 3(a) or Sections 10, 11, 12 or 13 hereof and, provided
further, the Executive does not engage in any other substantial business activity for gain,
profit or other pecuniary advantage which materially interferes with the performance of his duties
hereunder, the Executive may participate in any governmental, educational, charitable or other
community affairs and, subject to the prior approval of the Chief Executive Officer serve as a
member of the governing board of any such organization or any private or public for-profit company.
The Executive may retain all fees and other compensation from any such service, and the Company
shall not reduce his compensation by the amount of such fees.

     4. Compensation.

          (a) Base Salary. During the Employment Term, the Company shall pay to the Executive
an annual base salary of not less than his base salary as of the Effective Date, subject to this
Section 4(a), (the “Base Salary”), which Base Salary shall be payable at the times and in the
manner consistent with the Company’s general policies regarding compensation of the Company’s
senior executives. The Base Salary will be reviewed periodically by the Compensation Committee and
may be increased (but not decreased, except for across-the-board reductions generally applicable to
the Company’s senior executives) from time to time in the sole discretion of the Compensation
Committee.

          (b) Incentive Compensation.

               (i) The Executive will continue to be eligible to participate in any short-term
and long-term incentive compensation plans, annual bonus plans and such other
management incentive programs or arrangements of the Company approved by the Board
that are generally available to the Company’s senior executives, including, but not
limited to, the STIP, the 2006/2007 Integration
Overachievement Plan and the LTSIP. Incentive compensation shall be paid in

2

 

accordance with the terms and conditions of the applicable plans, programs and
arrangements.

               (ii) Annual Performance Bonus. During the Employment Term, the
Executive shall be entitled to participate in the STIP, with such opportunities as
may be determined by the Compensation Committee in its sole discretion (“Target
Bonuses”), and as may be increased (but not decreased, except for across-the-board
reductions generally applicable to the Company’s senior executives) from time to
time, and the Executive shall be entitled to receive full payment of any award under
the STIP, determined pursuant to the STIP (a “Bonus Award”).

               (iii) Long-Term Performance Bonus. During the Employment Term, the
Executive shall be entitled to participate in the LTSIP with such opportunities, if
any, as may be determined by the Compensation Committee (“LTSIP Target Award
Opportunities”).

               (iv) Incentive bonuses, if earned, shall be paid when incentive compensation is
customarily paid to the Company’s senior executives in accordance with the terms of
the applicable plans, programs or arrangements.

               (v) Pursuant to the Company’s applicable incentive or bonus plans as in effect
from time to time, the Executive’s incentive compensation during the term of this
Agreement may be determined according to criteria intended to qualify as
performance-based compensation under Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”).

          (c) Equity Compensation. The Executive shall continue to be eligible to participate
in such equity incentive compensation plans and programs as the Company generally provides to its
senior executives, including, but not limited to, the LTSIP. During the Employment Term, the
Compensation Committee may, in its sole discretion, grant equity awards to the Executive, which
would be subject to the terms of the respective award agreements evidencing such grants and the
applicable plan or program.

               (i) Restricted Stock Units. The Compensation Committee hereby grants
to the Executive 34,946 restricted stock units (the “RSUs”). Each RSU represents
the unsecured right to require the Company to deliver to the Executive one share of
common stock of the Company, Series 1, par value $2.00 per share. With respect to
100% of the RSUs, the “vesting date” and “delivery date” will be the third
anniversary of the Effective Date. The RSUs will be governed by the Standard Terms
of Other Stock Unit Awards set forth in Section 9(c) of the Company’s 1997 Long-Term
Stock Incentive Program; provided, however, that:

(A) the Executive will not be permitted to elect to defer delivery of
the RSUs pursuant to the provisions of Section 9(c)(ii) of the 1997
Long-Term Stock Incentive Program; and

3

 

(B) in the event that the Executive’s employment is terminated by the
Company without Cause, conditioned upon the Executive delivering a
release to the Company pursuant to Section 9(b), vesting of the RSUs
will accelerate and any forfeiture provisions will lapse as of the
date of termination of employment.

     5. Benefits.

          (a) During the Employment Term, the Company shall make available to the Executive, subject to
the terms and conditions of the applicable plans, participation for the Executive and his eligible
dependents in: (i) Company-sponsored group health, major medical, dental, vision, pension and
profit sharing, 401(k) and employee welfare benefit plans, programs and arrangements (the “Employee
Plans”) and such other usual and customary benefits in which senior executives of the Company
participate from time to time, and (ii) such fringe benefits and perquisites as may be made
available to senior executives of the Company as a group.

          (b) The Executive acknowledges that the Company may change its benefit programs from time to
time which may result in certain benefit programs being amended or terminated for its senior
executives generally.

     6. Expenses. The Company shall pay or reimburse the Executive for reasonable and
necessary business expenses incurred by the Executive in connection with his duties on behalf of
the Company in accordance with the Company’s Enterprise Financial Services—Employee Travel and
Expense Policy, as may be amended from time to time, or any successor policy, plan program or
arrangement thereto and any other of its expense policies applicable to senior executives of the
Company, following submission by the Executive of reimbursement expense forms in a form consistent
with such expense policies.

     7. Vacation. In addition to such holidays, sick leave, personal leave and other paid
leave as is allowed under the Company’s policies applicable to senior executives generally, the
Executive shall be entitled to participate in the Company’s vacation policy in accordance with the
Company’s policy generally applicable to senior executives. The duration of such vacations and the
time or times when they shall be taken will be determined by the Executive in consultation with the
Company.

     8. Place of Performance. In connection with his employment by the Company, the
Executive shall be based at the the principal executive offices of the Company in the vicinity of
Fairfax County, Virginia (the “Place of Performance”), except for travel reasonably required for
Company business. If the Company relocates the Executive’s place of work more than 50 miles from
his place of work prior to such relocation, the Executive shall relocate to a residence within (a)
50 miles of such relocated executive offices or (b) such total miles that does not exceed the total
number of miles the Executive commuted to his place of work prior to relocation of the Executive’s
place of work. To the extent the Executive relocates his residence as provided in this Section 8,
the Company will pay or reimburse the Executive’s relocation expenses in accordance with the
Company’s relocation policy applicable to senior executives.

4

 

     9. Termination.

          (a) Termination by the Company for Cause or Resignation by the Executive Without Good
Reason. If, during the Employment Term, the Executive’s employment is terminated by the
Company for Cause, or if the Executive resigns without Good Reason, the Executive shall not be
eligible to receive Base Salary or to participate in any Employee Plans with respect to future
periods after the date of such termination or resignation except for the right to receive accrued
but unpaid cash compensation and vested benefits under any Employee Plan in accordance with the
terms of such Employee Plan and applicable law.

          (b) Termination by the Company Without Cause or Resignation by the Executive for Good
Reason outside of the CIC Severance Protection Period. If, during the Employment Term, the
Executive’s employment is terminated by the Company without Cause or the Executive terminates for
Good Reason prior to or following expiration of the CIC Severance
Protection Period, the Executive shall receive from
the Company the Executive’s accrued, but unpaid, Base Salary through the date of termination of
employment, payable in accordance with the Company’s normal payroll practices, and conditioned upon
the Executive delivering to the Company a release in a form reasonably satisfactory to the Company
with all periods for revocation expired, in full satisfaction of the Executive’s rights and any
benefits the Executive might be entitled to under the Separation Plan and this Agreement, unless
otherwise specified, during the Payment Period, the Executive shall be entitled to:

               (i) receive from the Company periodic payments equal to his Base Salary in
effect prior to the termination of his employment in accordance with the Company’s
normal payroll practices;

               (ii) (A) receive a pro rata payment of the Bonus Award for the portion of the
Company’s fiscal year prior to the date of termination of his employment, (B)
receive a pro rata payment of the Capped Bonus Award for the portion of the
Company’s fiscal year following the date of termination of his employment, (C)
receive for the next fiscal year following the fiscal year during which termination
of his employment occurs, the Capped Bonus Award, or if his Payment
Period ends during such fiscal year, a pro rata portion of the Capped
Bonus Award; and (D) if his Payment Period ends in the second
year following the fiscal year during which the Executive’s
employment terminates, receive payment of a pro
rata portion of the Capped Bonus Award for such fiscal year (for purposes of this Section
9(b)(ii) any pro rata payment shall be determined based on the methodology for
determining pro rated awards under the STIP); provided, however,
that to the extent the Executive’s employment is terminated for Good Reason due to a
reduction of the Executive’s Target Bonus, in accordance with Section 29(x)(ii), the
Executive’s Target Bonus for the purposes of this Section 9(b)(ii) shall be the
Executive’s Target Bonus immediately prior to such reduction;

               (iii) continued participation at then-existing participation and coverage
levels for 18 months in the Company’s medical, dental, vision and employee life
insurance plans comparable to the terms in effect from time to time for the

5

 

Company’s senior executives, including any co-payment and premium payment
requirements, except that (A) following such period, the Executive shall retain
any rights to continue coverage under the Company’s medical, dental, vision and
employee life insurance plans under the benefits continuation provisions pursuant to
Section 4980B of the Code by paying the applicable premiums of such plans; (B) the
Executive shall no longer be eligible to receive the benefits otherwise receivable
pursuant to this Section 9(b)(iii) as of the date that the Executive becomes
eligible to receive comparable benefits from a new employer; and (C) the Company
will not provide for cash in lieu of benefits under this Section 9(b)(iii); and

               (iv) receive outplacement services by a firm selected by the Company at its
expense in an amount not to exceed $35,000, and the Company will not provide for
cash in lieu of this benefit.

          (c) Termination by the Company Without Cause or Resignation by the Executive for Good
Reason During the CIC Severance Protection Period. If prior to the expiration of the
Employment Term and during the CIC Severance Protection Period, the Executive’s employment is
terminated by the Company without Cause or the Executive terminates his employment for Good Reason,
subject to the terms and conditions of the CIC Severance Plan, the Executive shall be entitled to
severance compensation and benefits pursuant to the terms of the CIC Severance Plan. To the extent
that the Executive is not a Participant in the CIC Severance Plan at the time of termination, the
Executive shall be entitled to severance compensation and benefits pursuant to the terms of Section
9(b).

          (d) Termination by Death. If the Executive dies during the Employment Term, the
Executive’s employment will terminate and the Executive’s beneficiary or if none, the Executive’s
estate, shall be entitled to receive from the Company, the Executive’s accrued, but unpaid Base
Salary through the date of termination of employment and any vested benefits under any Employee
Plan in accordance with the terms of such Employee Plan and applicable law.

          (e) Termination by Disability. If the Executive becomes Disabled, prior to the
expiration of the Employment Term, the Executive’s employment will terminate and the Executive
shall be entitled to:

               (i) receive periodic payments of Base Salary in the same frequency as the
Company’s payroll schedule for 12 months (reduced by any amounts paid under a
long-term disability plan (“LTD Plan”) now or hereafter sponsored by the Company
(calculated on a monthly basis)); and

               (ii) continued participation at then-existing participation and coverage levels
for 12 months in the Company’s medical, dental, vision and employee life insurance
plans comparable to the terms in effect from time to time for the Company’s senior
executives, including any co-payment and premium payment requirements;
provided, however, that the Company will not provide for cash in
lieu of these benefits under this Section 9(e)(ii).

6

 

          (f) No Mitigation Obligation. No amounts paid under Section 9 will be reduced by any
earnings that the Executive may receive from any other source. The Executive’s
coverage under the Company’s medical, dental, vision and employee life insurance plans will
terminate as of the date that the Executive is eligible for comparable benefits from a new
employer. The Executive shall notify the Company within 30 days after becoming eligible for
coverage of any such benefits.

          (g) Forfeiture. Notwithstanding the foregoing, any right of the Executive to receive
termination payments and benefits hereunder shall be forfeited to the extent of any amounts payable
after any breach of Section 10, 11, 12, 13 or 15 by the Executive.

     10. Confidential Information; Statements to Third Parties.

          (a) During the Employment Term and on a permanent basis upon and following termination of the
Executive’s employment, the Executive acknowledges that:

               (i) all information, whether reduced to writing (or in a form from which
information can be obtained, translated, or derived into reasonably usable form) or
maintained in the mind or memory of the Executive and whether compiled or created by
the Company, any of its Subsidiaries or any affiliates of the Company or its
Subsidiaries (collectively, the “Company Group”), which derives independent economic
value from not being readily known to or ascertainable by proper means by others who
can obtain economic value from the disclosure or use of such information, of a
proprietary, private, secret or confidential (including, without exception,
inventions, products, processes, methods, techniques, formulas, compositions,
compounds, projects, developments, sales strategies, plans, research data, clinical
data, financial data, personnel data, computer programs, customer and supplier
lists, trademarks, service marks, copyrights (whether registered or unregistered),
artwork, and contacts at or knowledge of customers or prospective customers) nature
concerning the Company Group’s business, business relationships or financial affairs
(collectively, “Proprietary Information”) shall be the exclusive property of the
Company Group.

               (ii) the Proprietary Information of the Company Group gained by the Executive
during the Executive’s association with the Company Group was or will be developed
by and/or for the Company Group through substantial expenditure of time, effort and
money and constitutes valuable and unique property of the Company Group;

               (iii) reasonable efforts have been put forth by the Company Group to maintain
the secrecy of its Proprietary Information;

               (iv) such Proprietary Information is and will remain the sole property of the
Company Group; and

7

 

               (v) any retention or use by the Executive of Proprietary Information after the
termination of the Executive’s services for the Company Group will constitute a
misappropriation of the Company Group’s Proprietary Information.

          (b) The Executive further acknowledges and agrees that he will take all affirmative steps
reasonably necessary or required by the Company to protect the Proprietary Information from
inappropriate disclosure during and after his employment with the Company.

          (c) The Executive further agrees that all files, letters, memoranda, reports, records, data,
sketches, drawings, laboratory notebooks, program listings, or other written, photographic,
electronic, or other tangible material containing or constituting Proprietary Information, whether
created by the Executive or others, which shall come into his custody or possession, regardless of
medium, shall be and are the exclusive property of the Company to be used by him only in the
performance of his duties for the Company. All such materials or copies thereof and all tangible
things and other property of the Company Group in the Executive’s custody or possession shall be
delivered to the Company (to the extent the Executive has not already returned) in good condition,
on or before five business days subsequent to the earlier of: (i) a request by the Company or (ii)
the Executive’s termination of employment for any reason or Cause, including for nonrenewal of this
Agreement, Disability, termination by the Company or termination by the Executive. After such
delivery, the Executive shall not retain any such materials or portions or copies thereof or any
such tangible things and other property and shall execute any statements or affirmations of
compliance under oath that the Company may require.

          (d) The Executive further agrees that his obligation not to disclose or to use information and
materials of the types set forth in Sections 10(a), 10(b) and 10(c) above, and his obligation to
return materials and tangible property, set forth in Section 10(c) above, also extends to such
types of information, materials and tangible property of customers of the Company Group,
consultants for the Company Group, suppliers to the Company Group, or other third parties who may
have disclosed or entrusted the same to the Company Group or to the Executive.

          (e) The Executive further acknowledges and agrees that he will continue to keep in strict
confidence, and will not, directly or indirectly, at any time, disclose, furnish, disseminate, make
available, use or suffer to be used in any manner any Proprietary Information of the Company Group
without limitation as to when or how the Executive may have acquired such Proprietary Information
and that he will not disclose any Proprietary Information to any person or entity other than
appropriate employees of the Company or use the same for any purposes (other than in the
performance of his duties as an employee of the Company) without written approval of the Board,
either during or after his employment with the Company.

          (f) Further the Executive acknowledges that his obligation of confidentiality will survive,
regardless of any other breach of this Agreement or any other agreement, by any party hereto, until
and unless such Proprietary Information of the Company Group has become, through no fault of the
Executive, generally known to the public. In the event that the Executive is required by law,
regulation, or court order to disclose any of the Company Group’s Proprietary Information, the
Executive will promptly notify the Company prior to making any such disclosure to facilitate the
Company seeking a protective order or other appropriate remedy from

8

 

the proper authority. The
Executive further agrees to cooperate with the Company in seeking such order or other remedy and
that, if the Company is not successful in precluding the requesting legal body from requiring the
disclosure of the Proprietary Information, the Executive will furnish only that portion of the
Proprietary Information that is legally required, and the
Executive will exercise all legal efforts to obtain reliable assurances that confidential
treatment will be accorded to the Proprietary Information.

          (g) The Executive’s obligations under this Section 10 are in addition to, and not in
limitation of, all other obligations of confidentiality under the Company’s policies, general legal
or equitable principles or statutes.

          (h) During the Employment Term and following his termination of employment:

               (i) the Executive shall not, directly or indirectly, make or cause to be made
any statements, including but not limited to, comments in books or printed media, to
any third parties criticizing or disparaging the Company Group or commenting on the
character or business reputation of the Company Group. Without the prior written
consent of the Board, unless otherwise required by law, the Executive shall not (A)
publicly comment in a manner adverse to the Company Group concerning the status,
plans or prospects of the business of the Company Group or (B) publicly comment in a
manner adverse to the Company Group concerning the status, plans or prospects of any
existing, threatened or potential claims or litigation involving the Company Group;

               (ii) the Company shall comply with its policies regarding public statements
with respect to the Executive and any such statements shall be deemed to be made by
the Company only if made or authorized by a member of the Board or a senior
executive officer of the Company; and

               (iii) nothing herein precludes honest and good faith reporting by the Executive
to appropriate Company or legal enforcement authorities.

          (i) The Executive acknowledges and agrees that a violation of the foregoing provisions of this
Section 10 would cause irreparable harm to the Company Group, and that the Company’s remedy at law
for any such violation would be inadequate. In recognition of the foregoing, the Executive agrees
that, in addition to any other relief afforded by law or this Agreement, including damages
sustained by a breach of this Agreement and any forfeitures under Section 9(g), and without the
necessity or proof of actual damages, the Company shall have the right to enforce this Agreement by
specific remedies, which shall include, among other things, temporary and permanent injunctions, it
being the understanding of the undersigned parties hereto that damages, the forfeitures described
above and injunctions shall all be proper modes of relief and are not to be considered as
alternative remedies.

     11. Non-Competition. In consideration of the Company entering into this Agreement,
for a period commencing on the Effective Date and ending on the expiration of the Restricted
Period:

9

 

          (a) The Executive covenants and agrees that the Executive will not, directly or indirectly,
engage in any activities on behalf of or have an interest in any Competitor of the Company Group,
whether as an owner, investor, executive, manager, employee, independent consultant, contractor,
advisor, or otherwise. The Executive’s ownership of less than one percent (1%) of any class of stock in a publicly traded corporation shall not be a breach of this
paragraph.

          (b) A “Competitor” is any entity doing business directly or indirectly (e.g., as an owner,
investor, provider of capital or otherwise) in the United States including any territory of the
United States (the “Territory”) that provides products and/or services that are the same or similar
to the products and/or services that are currently being provided at the time of Executive’s
termination or that were provided by the Company Group during the two-year period prior to the
Executive’s separation from service with the Company Group.

          (c) The Executive acknowledges and agrees that due to the continually evolving nature of the
Company Group’s industry, the scope of its business and/or the identities of Competitors may change
over time. The Executive further acknowledges and agrees that the Company Group markets its
products and services on a nationwide basis, encompassing the Territory and that the restrictions
imposed by this covenant, including the geographic scope, are reasonably necessary to protect the
Company Group’s legitimate interests.

          (d) The Executive covenants and agrees that should a court at any time determine that any
restriction or limitation in this Section 11 is unreasonable or unenforceable, it will be deemed
amended so as to provide the maximum protection to the Company Group and be deemed reasonable and
enforceable by the court.

     12. Non-Solicitation. In consideration of the Company entering into this Agreement,
for a period commencing on the Effective Date and ending on the expiration of the Restricted
Period, the Executive hereby covenants and agrees that he shall not, directly or indirectly,
individually or on behalf of any other person or entity do or suffer any of the following:

          (a) hire or employ or assist in hiring or employing any person who was at any time during the
last 18 months of Executive’s employment an employee, representative or agent of any member of the
Company Group or solicit, aid, induce or attempt to solicit, aid, induce or persuade, directly or
indirectly, any person who is an employee, representative, or agent of any member of the Company
Group to leave his or her employment with any member of the Company Group to accept employment with
any other person or entity;

          (b) induce any person who is an employee, officer or agent of the Company Group, or any of its
affiliated, related or subsidiary entities to terminate such relationship;

          (c) solicit any customer of the Company Group, or any person or entity whose business the
Company Group had solicited during the 180 day period prior to termination of the Executive’s
employment for purposes of business which is competitive to the Company Group within the Territory;
or

10

 

          (d) solicit, aid, induce, persuade or attempt to solicit, aid, induce or persuade any person
or entity to take any action that would result in a Change in Control of the Company or to seek to
control the Board in a material manner.

          (e) For purposes of this Section 12, the term “solicit or persuade” includes, but is not
limited to, (i) initiating communications with an employee of the Company Group
relating to possible employment, (ii) offering bonuses or additional compensation to encourage
an employee of the Company Group to terminate his employment, (iii) referring employees of the
Company Group to personnel or agents employed by competitors, suppliers or customers of the Company
Group, and (iv) initiating communications with any person or entity relating to a possible Change
in Control.

     13. Developments.

          (a) The Executive acknowledges and agrees that he will make full and prompt disclosure to the
Company of all inventions, improvements, discoveries, methods, developments, software, mask works,
and works of authorship, whether patentable or copyrightable or not, (i) which relate to the
Company’s business and have heretofore been created, made, conceived or reduced to practice by the
Executive or under his direction or jointly with others, and not assigned to prior employers, or
(ii) which have utility in or relate to the Company’s business and are created, made, conceived or
reduced to practice by the Executive or under his direction or jointly with others during his
employment with the Company, whether or not during normal working hours or on the premises of the
Company (all of the foregoing of which are collectively referred to in this Agreement as
“Developments”).

          (b) The Executive further agrees to assign and does hereby assign to the Company (or any
person or entity designated by the Company) all of the Executive’s rights, title and interest
worldwide in and to all Developments and all related patents, patent applications, copyrights and
copyright applications, and any other applications for registration of a proprietary right. This
Section 13(b) shall not apply to Developments that the Executive developed entirely on his own time
without using the Company’s equipment, supplies, facilities, or Proprietary Information and that
does not, at the time of conception or reduction to practice, have utility in or relate to the
Company’s business, or actual or demonstrably anticipated research or development. The Executive
understands that, to the extent this Agreement shall be construed in accordance with the laws of
any Territory which precludes a requirement in an employee agreement to assign certain classes of
inventions made by an employee, this Section 13(b) shall be interpreted not to apply to any
invention which a court rules or the Company agrees falls within such classes.

          (c) The Executive further agrees to cooperate fully with the Company, both during and after
his employment with the Company, with respect to the procurement, maintenance and enforcement of
copyrights, patents and other intellectual property rights (both in the United States and other
countries) relating to Developments. The Executive shall not be required to incur or pay any costs
or expenses in connection with the rendering of such cooperation. The Executive will sign all
papers, including, without limitation, copyright applications, patent applications, declarations,
oaths, formal assignments, assignments of priority

11

 

rights, and powers of attorney, and do all
things that the Company may reasonably deem necessary or desirable in order to protect its rights
and interests in any Development.

          (d) The Executive further acknowledges and agrees that if the Company is unable, after
reasonable effort, to secure the Executive’s signature on any such papers, any executive officer of
the Company shall be entitled to execute any such papers as the Executive’s agent and
attorney-in-fact, and the Executive hereby irrevocably designates and appoints each
executive officer of the Company as his agent and attorney-in-fact to execute any such papers
on the Executive’s behalf, and to take any and all actions as the Company may deem necessary or
desirable in order to protect its rights and interests in any Development, under the conditions
described in this sentence.

     14. Remedies. The Executive and the Company agree that the covenants contained in
Sections 10, 11, 12 and 13 are reasonable under the circumstances, and further agree that if in the
opinion of any court of competent jurisdiction any such covenant is not reasonable in any respect,
such court will have the right, power and authority to sever or modify any provision or provisions
of such covenants as to the court will appear not reasonable and to enforce the remainder of the
covenants as so amended. The Executive acknowledges and agrees that the remedy at law available to
the Company for breach of any of the Executive’s obligations under Sections 10, 11, 12 and 13 would
be inadequate and that damages flowing from such a breach may not readily be susceptible to being
measured in monetary terms. Accordingly, the Executive acknowledges, consents and agrees that, in
addition to any other rights or remedies that the Company may have at law, in equity or under this
Agreement, upon adequate proof of the Executive’s violation of any such provision of this
Agreement, the Company will be entitled to immediate injunctive relief and may obtain a temporary
order restraining any threatened or further breach, without the necessity of proof of actual
damage. Without limiting the applicability of this Section 14 or in any way affecting the right of
the Company to seek equitable remedies hereunder, in the event that the Executive breaches any of
the provisions of Sections 10, 11, 12 or 13 or engages in any activity that would constitute a
breach save for the Executive’s action being in a state where any of the provisions of Sections 10,
11, 12, 13 or this Section 14 is not enforceable as a matter of law, then the Company’s obligation
to pay any remaining severance compensation and benefits that has not already been paid to
Executive pursuant to Section 9 shall be terminated and within ten days of notice of such
termination of payment, the Executive shall return all severance compensation and the value of such
benefits, or profits derived or received from such benefits.

     15. Continued Availability and Cooperation.

          (a) Following termination of the Executive’s employment, the Executive shall cooperate fully
with the Company and with the Company’s counsel in connection with any present and future actual or
threatened litigation, administrative proceeding or investigation involving the Company that
relates to events, occurrences or conduct occurring (or claimed to have occurred) during the period
of the Executive’s employment by the Company. Cooperation will include, but is not limited to:

12

 

               (i) making himself reasonably available for interviews and discussions with the
Company’s counsel as well as for depositions and trial testimony;

               (ii) if depositions or trial testimony are to occur, making himself reasonably
available and cooperating in the preparation therefore, as and to the extent that
the Company or the Company’s counsel reasonably requests;

               (iii) refraining from impeding in any way the Company’s prosecution or defense
of such litigation or administrative proceeding; and

               (iv) cooperating fully in the development and presentation of the Company’s
prosecution or defense of such litigation or administrative proceeding.

          (b) The Company will reimburse the Executive for reasonable travel, lodging, telephone and
similar expenses, as well as reasonable attorneys’ fees (if independent legal counsel is
necessary), incurred in connection with any cooperation, consultation and advice rendered under
this Agreement after the Executive’s termination of employment.

     16. Dispute Resolution. 

          (a) In the event that the Parties are unable to resolve any controversy or claim arising out
of or in connection with this Agreement or breach thereof, either Party shall refer the dispute to
binding arbitration, which shall be the exclusive forum for resolving such claims. Such
arbitration will be administered by Judicial Arbitration and Mediation Services, Inc. (“JAMS”)
pursuant to its Employment Arbitration Rules and Procedures and governed by Kansas law. The
arbitration shall be conducted by a single arbitrator selected by the Parties according to the
rules of JAMS. In the event that the Parties fail to agree on the selection of the arbitrator
within 30 days after either Party’s request for arbitration, the arbitrator will be chosen by JAMS.
The arbitration proceeding shall commence on a mutually agreeable date within 90 days after the
request for arbitration, unless otherwise agreed by the Parties, and in the location where the
Executive worked during the six months immediately prior to the request for arbitration if that
location is in Kansas or Virginia, and if not, the location will be Kansas, unless the Parties
agree otherwise.

          (b) The Parties agree that each will bear their own costs and attorneys’ fees. The arbitrator
shall not have authority to award attorneys’ fees or costs to any Party.

          (c) The arbitrator shall have no power or authority to make awards or orders granting relief
that would not be available to a Party in a court of law. The arbitrator’s award is limited by and
must comply with this Agreement and applicable federal, state, and local laws. The decision of the
arbitrator shall be final and binding on the Parties.

          (d) Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief
contemplated by or allowed under applicable law pursuant to Sections 10, 11, 12 and 13 of this
Agreement will be subject to arbitration under this Section 16, but will instead be subject to
determination in a court of competent jurisdiction in Kansas, which court shall apply

13

 

Kansas law
consistent with Section 21 of this Agreement, where either Party may seek injunctive or equitable
relief.

     17. Other Agreements. No agreements (other than the agreements evidencing any grants
of equity awards) or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set forth in this
Agreement. Each party to this Agreement acknowledges that no representations, inducements,
promises, or other agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, pertaining to the subject matter hereof, which are not embodied
herein, and that no prior and/or contemporaneous agreement, statement or promise pertaining to
the subject matter hereof that is not contained in this Agreement shall be valid or binding on
either party.

     18. Withholding of Taxes. The Company will withhold from any amounts payable under
this Agreement all federal, state, city or other taxes as the Company is required to withhold
pursuant to any law or government regulation or ruling.

     19. Successors and Binding Agreement.

          (a) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all of the business or assets
of the Company expressly to assume and agree to perform this Agreement in the same manner and to
the same extent the Company would be required to perform if no such succession had taken place.
This Agreement will be binding upon and inure to the benefit of the Company and any successor to
the Company, including without limitation any persons acquiring directly or indirectly all or
substantially all of the business or assets of the Company whether by purchase, merger,
consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the
“Company” for the purposes of this Agreement), but will not otherwise be assignable, transferable
or delegable by the Company, except that the Company may assign and transfer this Agreement and
delegate its duties thereunder to a wholly owned Subsidiary.

          (b) This Agreement will inure to the benefit of and be enforceable by the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees and legatees.

          (c) This Agreement is personal in nature and neither of the parties hereto shall, without the
consent of the other, assign, transfer or delegate this Agreement or any rights or obligations
hereunder except as expressly provided in Sections 19(a) and 19(b). Without limiting the
generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not
be assignable, transferable or delegable, whether by pledge, creation of a security interest, or
otherwise, other than by a transfer by the Executive’s will or by the laws of descent and
distribution and, in the event of any attempted assignment or transfer contrary to this Section
19(c), the Company shall have no liability to pay any amount so attempted to be assigned,
transferred or delegated.

     20. Notices. All communications, including without limitation notices, consents,
requests or approvals, required or permitted to be given hereunder will be in writing and will be

14

 

duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt
thereof confirmed), or five business days after having been mailed by United States registered or
certified mail, return receipt requested, postage prepaid, or three business days after having been
sent by a nationally recognized overnight courier service such as Federal Express or UPS, addressed
to the Company (to the attention of the General Counsel of the Company) at its principal executive
offices and to the Executive at his principal residence, or to such other address as any party may
have furnished to the other in writing and in accordance herewith, except that notices of changes
of address shall be effective only upon receipt.

     21. Governing Law and Choice of Forum.

          (a) This Agreement will be construed and enforced according to the laws of the State of
Kansas, without giving effect to the conflict of laws principles thereof.

          (b) To the extent not otherwise provided for by the Section 16 of this Agreement, the
Executive and the Company consent to the jurisdiction of all state and federal courts located in
Overland Park, Johnson County, Kansas, as well as to the jurisdiction of all courts of which an
appeal may be taken from such courts, for the purpose of any suit, action, or other proceeding
arising out of, or in connection with, this Agreement or that otherwise arise out of the employment
relationship. Each party hereby expressly waives any and all rights to bring any suit, action, or
other proceeding in or before any court or tribunal other than the courts described above and
covenants that it shall not seek in any manner to resolve any dispute other than as set forth in
this paragraph. Further, the Executive and the Company hereby expressly waive any and all
objections either may have to venue, including, without limitation, the inconvenience of such
forum, in any of such courts. In addition, each of the parties consents to the service of process
by personal service or any manner in which notices may be delivered hereunder in accordance with
this Agreement.

     22. Validity/Severability. If any provision of this Agreement or the application of
any provision is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement
and the application of such provision will not be affected, and the provision so held to be
invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent)
necessary to make it enforceable, valid or legal. To the extent any provisions held to be invalid,
unenforceable or otherwise illegal cannot be reformed, such provisions are to be stricken herefrom
and the remainder of this Agreement will be binding on the parties and their successors and assigns
as if such invalid or illegal provisions were never included in this Agreement from the first
instance.

     23. Survival of Provisions. Notwithstanding any other provision of this Agreement,
the parties’ respective rights and obligations under Sections 10, 11, 12, 13, 14, 15, 16, 18, 22
and 26 will survive any termination or expiration of this Agreement or the termination of the
Executive’s employment.

     24. Representations and Acknowledgements.

          (a) The Executive hereby represents that he is not subject to any restriction of any nature
whatsoever on his ability to enter into this Agreement or to perform his duties and

15

 

responsibilities hereunder, including, but not limited to, any covenant not to compete with any
former employer, any covenant not to disclose or use any non-public information acquired during the
course of any former employment or any covenant not to solicit any customer of any former employer.

          (b) The Executive hereby represents that, except as he has disclosed in writing to the
Company, he is not bound by the terms of any agreement with any previous employer or other party to
refrain from using or disclosing any trade secret or confidential or proprietary
information in the course of the Executive’s employment with the Company or to refrain from
competing, directly or indirectly, with the business of such previous employer or any other party.

          (c) The Executive further represents that, to the best of his knowledge, his performance of
all the terms of this Agreement and as an employee of the Company does not and will not breach any
agreement with another party, including without limitation any agreement to keep in confidence
proprietary information, knowledge or data the Executive acquired in confidence or in trust prior
to his employment with the Company, and that he will not knowingly disclose to the Company or
induce the Company to use any confidential or proprietary information or material belonging to any
previous employer or others.

          (d) The Executive acknowledges that he will not be entitled to any consideration or
reimbursement of legal fees in connection with execution of this Agreement.

          (e) The Executive hereby represents and agrees that, during the Restricted Period, if the
Executive is offered employment or the opportunity to enter into any business activity, whether as
owner, investor, executive, manager, employee, independent consultant, contractor, advisor or
otherwise, the Executive will inform the offeror of the existence of Sections 10, 11, 12 and 13 of
this Agreement and provide the offeror a copy thereof. The Executive authorizes the Company to
provide a copy of the relevant provisions of this Agreement to any of the persons or entities
described in this Section 24(e) and to make such persons aware of the Executive’s obligations under
this Agreement.

     25. Compliance with Code Section 409A. This Agreement is intended to be administered
and interpreted in a manner that is consistent with the requirements of Section 409A of the Code.
The timing of all payments or benefits provided in this Agreement, are therefore subject to the
requirements of Section 409A of the Code and other provisions of the Code and the implementing
regulations of the Code. Notwithstanding the foregoing, no particular tax result for the Executive
with respect to any income recognized by the Executive in connection with the Agreement is
guaranteed, and the Executive shall be responsible for any taxes, penalties and interest imposed on
him under or as a result of Section 409A of the Code in connection with the Agreement.

     26. Amendment; Waiver. Except as otherwise provided herein, his Agreement may not be
modified, amended or waived in any manner except by an instrument in writing signed by both Parties
hereto. No waiver by either Party at any time of any breach by the other Party hereto or
compliance with any condition or provision of this Agreement to be performed by such other Party
will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

16

 

     27. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
agreement.

     28. Headings. Unless otherwise noted, the headings of sections herein are included
solely for convenience of reference and shall not control the meaning or interpretation of any of
the provisions of this Agreement.

     29. Defined Terms.

          (a) “Agreement” has the meaning set forth in the preamble.

          (b) “Base Salary” has the meaning set forth in Section 4(a).

          (c) “Board” has the meaning set forth in Section 3(a).

          (d) “Bonus Award” has the meaning set forth in Section 4(b)(ii).

          (e) “Bylaws” means the Amended and Restated Sprint Nextel Corporation Bylaws, as may be
amended from time to time.

          (f) “Capped Bonus Award” shall mean the lesser of the annual Target Bonus or actual
performance for such fiscal year in accordance with the then existing terms of the STIP, which
shall not be payable until the Compensation Committee has determined that any incentive targets
have been achieved and the subsequent designated payout date has arrived.

          (g) “Cause” shall mean:

               (i) any act or omission constituting a material breach by the Executive of any
provisions of this Agreement

               (ii) the willful failure by the Executive to perform his duties hereunder
(other than any such failure resulting from the Executive’s Disability), after
demand for performance is delivered by the Company that identifies the manner in
which the Company believes the Executive has not performed his duties, if, within 30
days of such demand, the Executive fails to cure any such failure capable of being
cured;

               (iii) any intentional act or misconduct materially injurious to the Company or
any Subsidiary, financial or otherwise, or including, but not limited to,
misappropriation, fraud including with respect to the Company’s accounting and
financial statements, embezzlement or conversion by the Executive of the Company’s
or any of its Subsidiary’s property in connection with the Executive’s duties or in
the course of the Executive’s employment with the Company;

               (iv) the conviction (or plea of no contest) of the Executive for any felony or
the indictment of the Executive for any felony including, but not limited to, any
felony involving fraud, moral turpitude, embezzlement or theft in

17

 

connection with
the Executive’s duties or in the course of the Executive’s employment with the
Company;

               (v) the commission of any intentional or knowing violation of any antifraud
provision of the federal or state securities laws;

               (vi) the Board reasonably believes in its good faith judgment that the
Executive has committed any of the acts referred to in this Section 29(g)(v);

               (vii) there is a final, non-appealable order in a proceeding before a court of
competent jurisdiction or a final order in an administrative proceeding finding that
the Executive committed any willful misconduct or criminal activity (excluding minor
traffic violations or other minor offenses) which commission is materially inimical
to the interests of the Company or any Subsidiary, whether for his personal benefit
or in connection with his duties for the Company or any Subsidiary;

               (viii) current alcohol or prescription drug abuse affecting work performance;

               (ix) current illegal use of drugs; or

               (x) violation of the Company’s Code of Conduct, with written notice of
termination by the Company for Cause in each case provided under this Section 29(g).

     For purposes of this Agreement, no act or failure to act on the part of the Executive shall be
deemed “intentional” if it was due primarily to an error in judgment or negligence, but shall be
deemed “intentional” only if done or omitted to be done by the Executive not in good faith and
without reasonable belief that the Executive’s action or omission was in the best interest of the
Company.

          (h) “Change in Control” has the meaning set forth in the CIC Severance Plan.

          (i) “Chief Executive Officer” has the meaning set forth in Section 3(a).

          (j) “CIC Severance Plan” means the Company’s Change in Control Severance Plan, as may be
amended from time to time, or any successor plan, program or arrangement thereto.

          (k) “CIC Severance Protection Period” has the meaning set forth in the CIC Severance Plan.

          (l) “Certificate of Incorporation” means the Amended and Restated Articles of Incorporation of
Sprint Nextel Corporation, as may be amended from time to time.

          (m) “Code” has the meaning set forth in Section 4(b)(v).

18

 

          (n) “Company” has the meaning set forth in the preamble.

          (o) “Company Group” has the meaning set forth in Section 10(a)(i).

          (p) “Compensation Committee” means the Human Capital and Compensation Committee of the Board.

          (q) “Competitor” has the meaning set forth in Section 11(b).

          (r) “Developments” has the meaning set forth in Section 13(a).

          (s) “Disability” or “Disabled” shall mean:

               (i) the Executive’s incapacity due to physical or mental illness to
substantially perform his duties and the essential functions of his position, with
or without reasonable accommodation, on a full-time basis for six consecutive months
as determined by the Board in its reasonable discretion, and within 30 days after a
notice of termination is thereafter given by the Company, the Executive shall not
have returned to the full-time performance of the Executive’s duties; and, further,

               (ii) the Executive becomes eligible to receive benefits under the LTD Plan;

provided, however, if the Executive shall not agree with a determination to
terminate his employment because of Disability, the question of the Executive’s disability shall be
subject to the certification of a qualified medical doctor agreed to by the Company and the
Executive. The costs of such qualified medical doctor shall be paid for by the Company.

          (t) “Effective Date” has the meaning set forth in the preamble.

          (u) “Employee Plans” has the meaning set forth in Section 5(a).

          (v) “Employment Term” means the Initial Employment Term and any Renewal Term.

          (w) “Executive” has the meaning set forth in the preamble.

          (x) “Good Reason” means the occurrence of any of the following without the Executive’s written
consent, unless within 30 days of the Executive’s written notice of termination of employment for
Good Reason, the Company cures any such occurrence:

               (i) the Company’s material breach of this Agreement;

               (ii) a reduction in the Executive’s Base Salary, as set forth in Section 4(a),
or Target Bonus, as set forth in Section 4(b)(ii) (that is not in either case agreed
to by the Executive), as compared to the corresponding circumstances in

19

 

place on the
Effective Date as may be increased pursuant to Section 4, except for
across-the-board reductions generally applicable to all senior executives; or

               (iii) relocation of the Executive’s principal place of work more than 50 miles
without the Executive’s consent.

Any occurrence of Good Reason shall be deemed to be waived by the Executive unless the Executive
provides the Company written notice of termination of employment for Good Reason within 60 days of
the event giving rise to Good Reason.

          (y) “Initial Employment Term” has the meaning set forth in Section 2.

          (z) “JAMS” has the meaning set forth in Section 16.

          (aa) “LTD Plan” has the meaning set forth in Section 9(e).

          (bb) “LTSIP” means the Company’s 1997 Long-Term Stock Incentive Program, effective April 15,
1997 as may be amended from time to time, or any successor plan, program or arrangement thereto.

          (cc) “LTSIP Target Award Opportunities” has the meaning set forth in Section 4(b)(iii).

          (dd) “Parties” has the meaning set forth in the recitals.

          (ee) “Party” has the meaning set forth in the recitals.

          (ff)
“Payment Period” means the 18 month period following the latest of: (i) the date
specified in this Agreement, (ii) the Executive’s “separation from service” with the Company or
(iii) if the Executive is a “specified employee,” the first business day that is after the date
that is six months following the date of the Executive’s “separation from service” with the
Company to the extent required in order to avoid the imposition of taxes or penalties under Code
Section 409A; except, in the case clause (iii) applies, the Executive will be paid a lump-sum cash
payment equal to the aggregate amount the Executive would have been entitled to receive during such
six month period and the Executive’s Payment Period shall then
be the 12 month period following
such six month period. “Separation from service” and “specified employee” have the meanings
ascribed to such phrases in Code Section 409A.

          (gg) “Place of Performance” has the meaning set forth in Section 8.

          (hh) “Proprietary Information” has the meaning set forth in Section 10(a)(i).

          (ii) “Renewal Term” has the meaning set forth in Section 2.

          (jj)
“Restricted Period” means the 18 month period following the Executive’s date of
termination of employment with the Company for any reason or Cause, including for nonrenewal of
this Agreement, Disability, termination by the Company or termination by the Executive.

20

 

          (kk) “Separation Plan” means the Company’s Separation Plan Amended and Restated Effective
August 13, 2006, as may be amended from time to time or any successor plan, program, arrangement or
agreement thereto.

          (ll) “STIP” means the Company’s Short-Term Incentive Plan, effective January 1, 2006, as may
be amended from time to time, or any successor plan, program or arrangement thereto.

          (mm) “Subsidiary” shall mean any entity, corporation, partnership (general or limited),
limited liability company, entity, firm, business organization, enterprise, association or joint
venture in which the Company directly or indirectly controls ten percent or more of the voting
interest.

          (nn) “Target Bonuses” has the meaning set forth in Section 4(b)(ii).

          (oo) “Territory” has the meaning set forth in Section 11(b).

          (pp) “2006/2007 Integration Overachievement Plan” means the Company’s 2006/2007 Integration
Overachievement Plan, effective as of January 1, 2006, as may be amended from time to time, or any
successor plan, program or arrangement thereto.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by an officer pursuant
to the authority of its Board, and the Executive has executed this Agreement, as of the day and
year first written above.

	 	 	 	 	 
	 	SPRINT NEXTEL CORPORATION

 	 
	 	By:  	/s/ Sandra J. Price
 	 
	 	Sandra J. Price 	 
	 	Senior Vice President Human Resources 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/
Richard S. Lindahl
 	 
	 	Richard Lindahl	 
	 	 	 
	 

21exv10w49

 

Exhibit 10.49

SPRINT NEXTEL CORPORATION

CHANGE IN CONTROL SEVERANCE PLAN

Effective January 1, 2007

 

 

SPRINT NEXTEL CORPORATION

CHANGE IN CONTROL SEVERANCE PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article	 	 	 	Page
	ARTICLE ONE
	 	INTRODUCTION	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE TWO
	 	DEFINITIONS	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE THREE
	 	ELIGIBILITY AND PARTICIPATION	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE FOUR
	 	SEVERANCE BENEFITS	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE FIVE
	 	AMENDMENT AND TERMINATION	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE SIX
	 	MISCELLANEOUS	 	 	17	 
	 
	 	 	 	 	 	 
	APPENDIX I
	 	PLAN PARTICIPANTS	 	 	25	 
	 
	 	 	 	 	 	 
	APPENDIX II
	 	APPLICABLE BENEFITS AND PERIODS	 	 	26	 
	 
	 	 	 	 	 	 
	APPENDIX III
	 	PARTICIPATING EMPLOYERS	 	 	27	 

-i- 

 

SPRINT NEXTEL CORPORATION

CHANGE IN CONTROL SEVERANCE PLAN

ARTICLE ONE

INTRODUCTION

	1.01	 	Purpose of the Plan
	 
	 	 	The Sprint Nextel Corporation Change in Control Severance Plan (the “Plan”) provides
primarily for severance compensation benefits for certain key employees following
termination of employment in connection with and/or following a Change in Control. Given
the level of acquisition and change in control activity in today’s business environment, the
Board recognizes and understands that many key employees face uncertainty with respect to
their job security. In addition, the Board believes that the concerns of key employees
regarding a possible Change in Control transaction may cause them to consider career changes
in an effort to assure financial security for themselves and their families. Consequently,
the Corporation desires to increase the willingness of its key employees to remain with the
Corporation (or its Subsidiaries) notwithstanding the employment uncertainties related to a
possible Change in Control by providing certain economic benefits in the event of a Change
in Control, thus allowing such key employees to make career decisions without undue time
pressure and financial uncertainty.
	 
	 	 	The Plan is intended to provide severance compensation and benefits pursuant to the Plan if
a Change in Control of the Corporation has occurred and the Participant’s employment is
either (a) terminated by the Company without Cause or (b) voluntarily terminated by the
Participant for Good Reason in accordance with the terms of this Plan. The purpose and
intent of the Plan is to help the Corporation attract and retain key employees and reduce
distractions resulting from a potential Change in Control. The Board has considered the
effect that a Change in Control of the Corporation may have on key employees of the
Corporation and its Subsidiaries, and has found that such a Plan is in the best interest of
the Corporation and its stockholders.
	 
	 	 	Capitalized terms used throughout the Plan have the meanings set forth in Article Two,
except as otherwise defined in the Plan or where the context clearly requires otherwise.
	 
	1.02	 	Plan Status
	 
	 	 	The Plan is intended to be a plan providing Severance Benefits following a Change in
Control. The Plan is intended to be a top hat plan for a select group of management or
highly compensated executives, subject only to the administration and enforcement provisions
of ERISA.

 

 

	1.03	 	Entire Plan
	 
	 	 	This document, including any Appendix hereto, and any documents incorporated herein by
reference set forth the provisions of the Plan effective as of the Effective Date.
	 
	1.04	 	Administration
	 
	 	 	The Human Capital and Compensation Committee of the Board (the “Compensation Committee”)
shall administer the Plan; provided, however, that none of the members of
the Compensation Committee will be a Participant. The powers and duties of the Compensation
Committee in administering the Plan are set forth in Section 6.02.

-2-

 

ARTICLE TWO

DEFINITIONS

	2.01	 	Defined Terms. For purposes of this Plan the following terms shall have the following
meanings:

	 	(a)	 	“Accounting Firm” means a nationally recognized accounting firm, or
actuarial, benefits or compensation consulting firm (with experience in performing the
calculations regarding the applicability Section 280G of the Code and of the tax
imposed by Section 4999 of the Code) selected by the Corporation.
	 
	 	(b)	 	“Applicable Multiple” means the number specified under the heading
“Applicable Multiple” on Appendix II for the Participant’s designated Severance Benefit
Classification.
	 
	 	(c)	 	“Applicable Period” means the period specified under the heading
“Applicable Period” on Appendix II for the Participant’s designated Severance Benefits
Classification.
	 
	 	(d)	 	“Base Salary” means the annual base salary of any Participant,
exclusive of any bonus, special pay or other benefits a Participant may receive, and
for purposes of Article Four means such annual base salary in effect (i) on the date
immediately preceding the date of the relevant Change in Control or (ii) on the date of
the Participant’s termination of employment with a Company, whichever is higher.
	 
	 	(e)	 	“Board” means the Board of Directors of the Corporation.
	 
	 	(f)	 	“Bonus Award” means the amount of a Participant’s short-term incentive
(annual bonus) award paid under the STIP.
	 
	 	(g)	 	“Business Transaction” has the meaning set forth in Section
2.01(i)(ii).
	 
	 	(h)	 	“Cause” means a termination of a Participant’s employment due to the
Participant’s:

	 	(i)	 	conviction of, or entering into a plea of either guilty or nolo
contendere to, any felony, including, but not limited to, a felony involving
moral turpitude, embezzlement, theft or similar act that occurred during or in
the course of the Participant’s employment with a Company;
	 
	 	(ii)	 	willful and continued failure to substantially perform his
duties for a Company, after receiving written notice from or on behalf of such
Company and having had a thirty (30) day opportunity to cure the deficiency;
	 
	 	(iii)	 	willful misconduct or gross negligence that results in
material harm to a Company; or

-3-

 

	 	(iv)	 	willful violation of the Corporation’s policies that results in
material harm to a Company.

	 	 	For purposes of this Plan, an act, or failure to act, shall not be deemed to be “willful”
unless it is done, or omitted to be done, by the Participant in bad faith or without a
reasonable belief that the action or omission was in the best interests of a Company.

	 	(i)	 	“Change in Control” means the occurrence of any of the following
events:

	 	(i)	 	any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) becomes the beneficial
owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
thirty percent (30%) or more of the combined voting power of the
then-outstanding Voting Stock of the Corporation; except, that:

	 	(A)	 	for purposes of this Section 2.01(i)(i), the
following acquisitions shall not constitute a Change in Control: (1)
any acquisition of Voting Stock of the Corporation directly from the
Corporation that is approved by a majority of the Incumbent Directors,
(2) any acquisition of Voting Stock of the Corporation by the
Corporation or any Subsidiary, (3) any acquisition of Voting Stock of
the Corporation by the trustee or other fiduciary holding securities
under any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any Subsidiary, and (4) any
acquisition of Voting Stock of the Corporation by any Person pursuant
to a Business Transaction that complies with clauses (A), (B) and (C)
of Section 2.01(i)(ii);
	 
	 	(B)	 	if any Person becomes the beneficial owner of
thirty percent (30%) or more of combined voting power of the
then-outstanding Voting Stock of the Corporation as a result of a
transaction or series of transactions described in clause (1) of
Section 2.01(i)(i)(A) above and such Person thereafter becomes the
beneficial owner of any additional shares of Voting Stock of the
Corporation representing one percent (1%) or more of the
then-outstanding Voting Stock of the Corporation, other than as a
result of (x) a transaction described in clause (1) of Section
2.01(i)(i)(A) above, or (y) a stock dividend, stock split or similar
transaction effected by the Corporation in which all holders of Voting
Stock are treated equally then such subsequent acquisition shall be
treated as a Change in Control;
	 
	 	(C)	 	a Change in Control will not be deemed to have
occurred if a Person becomes the beneficial owner of thirty percent
(30%) or more of the Voting Stock of the Corporation as a result of a
reduction in the number of shares of Voting Stock of the Corporation
outstanding pursuant to a transaction or series of transactions that is
approved by a majority of the Incumbent

-4-

 

	 	 	 	Directors unless and until such Person thereafter becomes the
beneficial owner of additional shares of Voting Stock of the
Corporation representing one percent (1%) or more of the
then-outstanding Voting Stock of the Corporation, other than as a
result of a stock dividend, stock split or similar transaction
effected by the Corporation in which all holders of Voting Stock are
treated equally; and
	 
	 	(D)	 	if at least a majority of the Incumbent
Directors determine in good faith that a Person has acquired beneficial
ownership of thirty percent (30%) or more of the Voting Stock of the
Corporation inadvertently, and such Person divests as promptly as
practicable, but no later than the date, if any, set by the Incumbent
Directors a sufficient number of shares so that such Person
beneficially owns less than thirty percent (30%) of the Voting Stock of
the Corporation, then no Change in Control shall have occurred as a
result of such Person’s acquisition; or

	 	(ii)	 	the consummation of a reorganization, merger or consolidation
of the Corporation with, or the acquisition of the stock or assets of the
Corporation, by another Person, or similar transaction (each, a “Business
Transaction”), unless, in each case, immediately following such Business
Transaction (A) the Voting Stock of the Corporation outstanding immediately
prior to such Business Transaction continues to represent (either by remaining
outstanding or by being converted into Voting Stock of the surviving entity or
any parent thereof), more than fifty percent (50%) of the combined voting power
of the then outstanding shares of Voting Stock of the entity resulting from
such Business Transaction (including, without limitation, an entity which as a
result of such transaction owns the Corporation or all or substantially all of
the Corporation’s assets either directly or through one or more subsidiaries),
(B) no Person (other than the Corporation, such entity resulting from such
Business Transaction, or any employee benefit plan (or related trust) sponsored
or maintained by the Corporation or any Subsidiary or such entity resulting
from such Business Transaction) beneficially owns, directly or indirectly,
thirty percent (30%) or more of the combined voting power of the then
outstanding shares of Voting Stock of the entity resulting from such Business
Transaction, and (C) at least a majority of the members of the Board of
Directors of the entity resulting from such Business Transaction were Incumbent
Directors at the time of the execution of the initial agreement or of the
action of the Board providing for such Business Transaction; or
	 
	 	(iii)	 	during any consecutive eighteen (18) month period, more than
thirty percent (30%) of the Board ceases to be comprised of Incumbent
Directors; or

-5-

 

	 	(iv)	 	approval by the stockholders of the Corporation of a sale of
all or substantially all of Corporation’s assets or a complete liquidation or
dissolution of the Corporation, except pursuant to a Business Transaction that
complies with clauses (A), (B) and (C) of Section 2.01(i)(ii).

	 	(j)	 	“Chief Executive Officer” means the Chief Executive Officer of the
Corporation .
	 
	 	(k)	 	“CIC Severance Protection Period” means the time period commencing on
the date of the first occurrence of a Change in Control and continuing until the
earlier of (i) the 18-month anniversary of such date or (ii) the Participant’s death.
A CIC Severance Protection Period shall also include the time period before the
occurrence of a Change in Control for Participants who are subject to a Pre-CIC
Termination with respect to the affected Participant.
	 
	 	(l)	 	“Code” means the Internal Revenue Code of 1986, as amended and the
proposed, temporary and final regulations promulgated thereunder. Reference to any
section or subsection of the Code includes reference to any comparable or succeeding
provisions of any legislation that amends, supplements or replaces such section or
subsection.
	 
	 	(m)	 	“Company” means the Corporation, or any Participating Employer, as the
context requires.
	 
	 	(n)	 	“Compensation Committee” has the meaning set forth in Section 1.04.
	 
	 	(o)	 	“Corporation” means Sprint Nextel Corporation, a Kansas corporation,
or any successor company.
	 
	 	(p)	 	“Effective Date” means January 1, 2007.
	 
	 	(q)	 	“Employment Agreement” means any written employment agreement between a
Company and a Participant.
	 
	 	(r)	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as
amended, and the regulations promulgated thereunder. Reference to any section or
subsection of ERISA includes reference to any comparable or succeeding provisions of
any legislation that amends, supplements or replaces such section or subsection.
	 
	 	(s)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the regulations promulgated thereunder. Reference to any section or subsection of
the Exchange Act includes reference to any comparable or succeeding provisions of any
legislation that amends, supplements or replaces such section or subsection.
	 
	 	(t)	 	“Excise Tax” shall mean, collectively, (i) the tax imposed by Section
4999 of the Code by reason of being “contingent on a change in ownership or control” of
the Corporation, within the meaning of Section 280G of the Code, or (ii) any similar

-6-

 

	 	 	 	tax imposed by state or local law, or (iii) any interest or penalties with respect
to any excise tax described in clause (i) or (ii).
	 
	 	(u)	 	“Good Reason” means a Participant’s resignation from employment with a
Company in accordance with Section 6.15(b) after any of the actions listed below are
directed at the Participant without the Participant’s written consent (unless cured
prior to such resignation):

	 	(i)	 	Such Company’s material breach of an Employment Agreement with
the Participant, if any;
	 
	 	(ii)	 	significant and adverse change in duties and responsibilities
which results in a change in a Participant’s tier (and adjusting as appropriate
for any changes to the Corporation’s system of classifying employees
implemented subsequent to the Effective Date) as compared with a Participant’s
responsibilities or duties immediately prior to the Change in Control;
	 
	 	(iii)	 	reduction in a Participant’s Base Salary as compared with the
Participant’s Base Salary immediately prior to the Change in Control, except
for across-the-board reductions generally applicable to all senior executives;
	 
	 	(iv)	 	reduction in a Participant’s Target Bonus as compared with the
Participant’s Target Bonus in effect immediately prior to the Change in
Control, except for across-the-board reductions generally applicable to all
senior executives;
	 
	 	(v)	 	the failure to provide long-term incentive opportunities to the
Participant at a level that is generally comparable to all senior executives;
	 
	 	(vi)	 	reduction in the aggregate value of Section 2.01(u)(iii), (iv)
and (v) as compared with such benefits in effect immediately prior to the
Change in Control, except for across-the-board reductions of not more than ten
percent (10%) generally applicable to all senior executives;
	 
	 	(vii)	 	reduction in aggregate employee benefits provided to the
Participant as compared to the value of aggregate employee benefits provided
immediately prior to the Change in Control, except for across-the-board
reductions generally applicable to all senior executives;
	 
	 	(viii)	 	a Company requires the Participant to have the Participant’s principal
location of work changed to a location more than fifty (50) miles from the
location thereof immediately prior to the Change in Control; or
	 
	 	(ix)	 	failure of any successor to a Company to assume the
Participant’s Employment Agreement or this Plan, as applicable;

-7-

 

	 	 	provided, however, that a Participant’s right to resign his employment for
Good Reason will lapse unless such resignation occurs within sixty (60) days of the event
giving rise to Good Reason in accordance with Section 6.15(b) (the “Good Reason Period”).
Notwithstanding the foregoing, the lapse of such Participant’s right to resign for Good
Reason will only apply to the event giving rise to Good Reason. For the avoidance of doubt,
the Participant shall have the right to resign for Good Reason, as provided in this Section
2.01(u), upon the occurrence of a subsequent and independent event giving rise to Good
Reason.

	 	(v)	 	“Good Reason Period” has the meaning set forth in Section 2.01(u).
	 
	 	(w)	 	“Incumbent Directors” means the individuals who, as of the Effective
Date, are Directors of the Corporation, and any individual becoming a Director after
the Effective Date whose election, nomination for election by the Corporation’s
stockholders, or appointment, was approved by a vote of at least two-thirds of the then
Incumbent Directors (either by a specific vote or by approval of the proxy statement of
the Corporation in which such person is named as a nominee for director, without
objection to such nomination); provided, however, that an individual
shall not be an Incumbent Director if such individual’s election or appointment to the
Board occurs as a result of an actual or threatened election contest (as described in
Rule 14a-12(c) of the Exchange Act) 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.
	 
	 	(x)	 	“Initial Term” has the meaning set forth in Section 5.02.
	 
	 	(y)	 	“JAMS” has the meaning set forth in Section 6.08(a).
	 
	 	(z)	 	“Parties” has the meaning set fourth in Section 6.08(a).
	 
	 	(aa)	 	“Participant” means each full-time employee of a Company who is
recommended by the Chief Executive Officer and whose participation has been approved by
the Compensation Committee, to participate in the Plan as provided in Article Three,
and who continues to remain employed by a Company immediately prior to a Change in
Control and shall also mean any full time employee whose termination of employment
qualifies as a Pre-CIC Termination and who was identified as a Participant on Appendix
I prior to such termination.
	 
	 	(bb)	 	“Participating Employer” means the Corporation and any Subsidiary or
affiliate of the Corporation that is designated as a Participating Employer under the
Plan by the Board, excluding, however, any division of the Corporation or of a
Subsidiary or affiliate of the Corporation that is designated by the Board as
ineligible to participate in the Plan. Appendix III contains a list of the
Participating Employers currently participating in the Plan that have adopted the Plan
pursuant to Article Seven.
	 
	 	(cc)	 	“Payment” has the meaning set forth in Section 4.05.

-8-

 

	 	(dd)	 	“Person” has the meaning set forth in Section 2.01(i)(i).
	 
	 	(ee)	 	“Plan” has the meaning set forth in Section 1.01, as such may be
amended from time to time, or any successor plan, program or arrangement thereto.
	 
	 	(ff)	 	“Pre CIC Termination” means the termination of a Participant without
Cause, provided that both (i) the termination was made in the six (6) month period
prior to a Change in Control at the request of a third party in contemplation of a
Change in Control and (ii) the Change in Control occurs.
	 
	 	(gg)	 	“Renewal Term” has the meaning set forth in Section 5.02.
	 
	 	(hh)	 	“Restricted Period” means the period of time specified under the
heading “Restricted Period” on Appendix II for the Participant’s designated Severance
Benefit Classification, following the Participant’s date of termination of employment
with a Company for any reason or Cause, including disability, termination by a Company
or termination by the Participant.
	 
	 	(ii)	 	“Separation Plan” means the Corporation’s Separation Plan Amended and
Restated Effective August 13, 2006, as may be amended from time to time or any
successor plan, program, arrangement or agreement thereto.
	 
	 	(jj)	 	“Severance Benefits” means Severance Pay and the other benefits payable
to a Participant pursuant to Article Four of the Plan.
	 
	 	(kk)	 	“Severance Benefits Classification” has the meaning set forth in
Section 4.01(b)(iii).
	 
	 	(ll)	 	“Severance Pay” means the cash severance payments payable to a
Participant pursuant to Section 4.01 of the Plan.
	 
	 	(mm)	 	“STIP” means the Corporation’s Short-Term Incentive Plan, effective
January 1, 2006, as may be amended from time to time, or any successor plan, program or
arrangement thereto.
	 
	 	(nn)	 	“Subsidiary” means any entity in which the Corporation, directly or
indirectly, beneficially owns fifty percent (50%) or more of the Voting Stock of such
entity.
	 
	 	(oo)	 	“Target Bonus” means a Participant’s short-term incentive (annual
bonus) opportunity under the STIP.
	 
	 	(pp)	 	“Voting Stock” means securities entitled to vote generally in the
election of directors.

-9-

 

ARTICLE THREE

ELIGIBILITY AND PARTICIPATION

	3.01	 	Eligibility on the Effective Date
	 
	 	 	Each employee of the Corporation or a Subsidiary or affiliate of the Corporation who has
been recommended to be a Tier I or Tier II Executive by the Chief Executive Officer and
whose participation has been approved by the Compensation Committee, as of the Effective
Date will be a Participant in the Plan.
	 
	3.02	 	Future Eligibility
	 
	 	 	Each employee of the Corporation or a Subsidiary or affiliate of the Corporation who is
designated as a Tier I or Tier II Executive by the Chief Executive Officer, and whose
participation has been approved by the Compensation Committee, after the Effective Date and
prior to the occurrence of a Change in Control will be a Participant in the Plan.
Notwithstanding the foregoing, at any time prior to the six (6) month period preceding the
occurrence of a Change in Control, the Compensation Committee may authorize a Company to
provide a Participant with written notice of termination of such Participant’s designation
as a Participant in the Plan and removal from Appendix I of the Plan.
	 
	3.03	 	Plan Participants 
	 
	 	 	Appendix I contains a list of the individuals designated by the Compensation Committee
pursuant to Section 3.01 and 3.02 as Participants in the Plan.

-10-

 

ARTICLE FOUR

SEVERANCE BENEFITS

4.01 Severance Benefits

	 	(a)	 	Termination For Cause or Without Good Reason. Upon a Company’s
termination of a Participant’s employment for Cause or a Participant’s resignation from
a Company without Good Reason during the CIC Severance Protection Period, the
Participant shall be entitled to receive payment only of accrued, but unpaid, cash
compensation, as well as any vested benefits under benefit plans in accordance with the
terms of such plans and applicable law.
	 
	 	(b)	 	Termination Without Cause or For Good Reason. A Participant shall be
entitled to receive the Participant’s accrued, but unpaid, Base Salary through the date
of termination of employment, payable in accordance with the Company’s normal payroll
practices upon termination. In addition, a Participant shall be entitled to the
following Severance Benefits (subject to Section 4.02 herein, as applicable) if a
Change in Control occurs, and, if during the CIC Severance Protection Period, the
Company terminates the Participant’s employment without Cause or the Participant
voluntary terminates employment for Good Reason during the applicable Good Reason
Period. Conditioned upon the Participant delivering a release and non-compete and
other restrictive covenants agreement in a form or forms reasonably satisfactory to the
Corporation with all periods for revocation expired, in full satisfaction of the
Participant’s rights and any benefits the Participant might be entitled to under the
Separation Plan or a Participant’s Employment Agreement as applicable, the Participant
shall be entitled to:

	 	(i)	 	In lieu of any benefit that may be paid under the STIP, the
prorated portion of the Participant’s Target Bonus for the year in which the
Participant’s termination occurs (prorated in accordance with the terms of the
STIP and related administrative guidelines pursuant to the STIP), which amount
shall be payable at the same time as the lump sum cash payment described in
Section 4.01(b)(ii) (for the purposes of this Plan, a resignation for Good
Reason will be deemed to be a termination without Cause under the STIP);
	 
	 	(ii)	 	a lump sum cash payment, payable within thirty (30) days
following the expiration of the revocation period for the Participant’s release
as provided in Section 4.01(b) equal to: the Participant’s Applicable Multiple
(based on the Participant’s severance benefits classification, as specified for
the Participant on Appendix I and as set forth on Appendix II (the “Severance
Benefits Classification”)) multiplied by the sum of the Participant’s (a) Base
Salary and (b) Target Bonus, in each case, for the year in which the
Participant’s termination occurs; except that if the Participant’s
termination of employment is for Good Reason due to a reduction of the
Participant’s Target Bonus, in accordance with Section 2.01(u)(iv), the

-11-

 

	 	 	 	Participant’s Target Bonus for purposes of this Section 4.01(b)(ii) shall be
the Participant’s Target Bonus immediately prior to such reduction;
	 
	 	(iii)	 	continued participation at then-existing participation and
coverage levels for the Applicable Period in the Corporation’s medical, dental,
vision and employee life insurance plans comparable to the terms in effect from
time to time for the Corporation’s senior executives, including any co-payment
and premium payment requirements; except that (A) following the expiration of
the Applicable Period, the Participant shall retain any rights to continue
coverage under the medical, dental, vision and employee life insurance plans
under the benefits continuation provisions pursuant to Section 4980B of the
Code by paying the applicable premiums of such plans; (B) the Participant shall
no longer be eligible to receive the benefits otherwise receivable pursuant to
this Section 4.01(b)(iii) as of the date that the Participant becomes eligible
to receive comparable benefits from a new employer or otherwise; and (C) no
Company shall provide a cash payment in lieu of the benefit provided under this
Section 4.01(b)(iii)); and
	 
	 	(iv)	 	receive outplacement services by a firm selected by the
Company, at such Company’s expense, in an amount not to exceed $35,000;
provided, however, that no Company shall provide a cash payment
in lieu of the benefit provided under this Section 4.01(b)(iv).

If a Participant is entitled to any severance compensation or benefits pursuant to a
Participant’s Employment Agreement or the Separation Plan, as applicable, and it is
determined that the Participant is entitled to Severance Benefits under this Plan, the
Severance Benefits otherwise payable or due to the Participant under this Section 4.01 shall
be reduced by the amount of any severance compensation and benefits paid or payable to the
Participant pursuant to the terms of such Employment Agreement or Separation Plan, as
applicable. Notwithstanding the foregoing, to the extent that the Severance Benefits
otherwise payable or due to the Participant under this Section 4.01 are greater than the
aggregate severance pay and benefits that the Participant is entitled to receive under the
Participant’s Employment Agreement or the Separation Plan, as applicable, the Participant
shall be entitled to receive such Severance Benefits under this Plan that exceed such
severance pay or benefits under his or her Employment Agreement or Separation Plan, as
applicable; provided, however, that to the extent that the aggregate
severance pay and benefits otherwise payable or due to the Participant under the
Participant’s Employment Agreement are greater than the Severance Benefits that the
Participant is entitled to receive under this Section 4.01, the Participant shall be
entitled to receive such severance pay and benefits under the Participant’s Employment
Agreement that exceed such severance pay or benefits under this Section 4.01.

	 	(c)	 	Unvested equity and other long-term incentives as specified in individual award
agreements, if applicable, shall vest with respect to each Participant in accordance
with their terms.

-12-

 

4.02 Section 409A

To the extent applicable, this Plan is intended to comply with the provisions of Code
Section 409A. This Plan shall be administered in a manner consistent with this intent and
any provision that would cause this Plan to fail to satisfy Code Section 409A shall have no
force and effect until amended to comply with Code Section 409A (which amendment may be
retroactive to the extent permitted by Code Section 409A and may be made without the consent
of Participants). Notwithstanding anything to the contrary in Section 4.01 or 4.05, if any
portion of Severance Benefits constitutes a “deferral of compensation,” that portion of the
Severance Benefits will be paid on the latest of (i) the date specified in this Plan, (ii)
the Participant’s “separation from service,” or (iii) if the Participant is a “specified
employee,” six (6) months and one (1) day after the Participant’s separation from service.
“Deferral of compensation,” “separation from service” and “specified employee” have the
meanings ascribed to such phrases in Code Section 409A.

4.03 Forfeiture

Any right of the Participant to receive Severance Benefits hereunder shall be forfeited to
the extent of any amounts payable or benefits due after any breach of Section 6.09 by the
Participant.

4.04 Legal Fees

All expenses of a Participant incurred in enforcing the Participant’s rights and/or to
recover the Participant’s benefits under this Article Four, including but not limited to,
attorneys’ fees, court costs, arbitration costs, and other expenses shall be paid by the
Corporation, but only to the extent that the Participant substantially prevails. The
Corporation shall pay, or reimburse the Participant for such fees, costs and expenses,
promptly upon presentment of appropriate documentation, but only if, to the extent and at
the earliest date(s) such payment or reimbursement does not violate Code Section 409A.

4.05 Applicable Provisions if Excise Tax Applies

Anything in the Plan to the contrary notwithstanding, if it is determined (as hereafter
provided) that any payment or distribution by or on behalf of a Company to or for the
benefit of the Participant, whether paid or payable or distributed or distributable pursuant
to the terms of the Plan or otherwise pursuant to or by reason of any other agreement,
policy, plan, program or arrangement, including without limitation any stock option, stock
appreciation right or similar right, or the lapse or termination of any restriction on or
the vesting or exercisability of any of the foregoing (a “Payment”), would be subject to the
Excise Tax, but for the application of this sentence, then the Payment shall be reduced to
the minimum extent necessary (but in no event to less than zero) so that no portion of any
such Payment, as so reduced, constitutes an “Excess Parachute Payment” within the meaning of
Section 280G of the Code; provided, however, that the foregoing reduction shall be made only
if and to the extent that such reduction would result in an increase in the aggregate
Payment to be provided, determined on an after-tax basis (taking into

-13-

 

account the Excise Tax imposed, any tax imposed by any comparable provision of state law,
and any applicable federal, state and local income taxes). The fact that the Participant’s
right to a Payment may be reduced by reason of the limitations contained in this Section
4.05 shall not of itself limit or otherwise affect any other rights of the Participant other
than under the Plan. In the event that a Payment intended to be provided under the Plan is
required to be reduced pursuant to this Section 4.05, the Participant shall be entitled to
designate which portion of the Payment will be so reduced in order to give effect to this
Section 4.05. The Corporation shall provide the Participant with all information reasonably
requested by the Participant to permit the Participant to make such designation. In the
event that the Participant fails to make such designation within 10 business days after the
date of the Participant’s termination, the Corporation may effect such reduction in any
manner it deems appropriate.

	 	(a)	 	All determinations required to be made under this Section 4.05, including
whether an Excise Tax is payable by the Participant and the amount of such Excise Tax,
shall be made by the Accounting Firm. The Corporation shall direct the Accounting Firm
to submit its determination and detailed supporting calculations to the relevant
Company and the Participant within fifteen (15) calendar days after the date of the
Participant’s termination, if applicable, and any other such time or times as may be
requested by such Company or the Participant. If the Accounting Firm determines that
no Excise Tax is payable by the Participant, it shall, at the same time as it makes
such determination, furnish the Participant with an opinion that the Participant has
substantial authority not to report any Excise Tax on the Participant’s federal, state,
local income or other tax return.
	 
	 	(b)	 	The Corporation and the Participant shall each provide the Accounting Firm
access to and copies of any books, records and documents in the possession of the
Corporation or the Participant, as the case may be, reasonably requested by the
Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with
the preparation and issuance of the determination contemplated by Section 4.05(a). Any
reasonable determination by the Accounting Firm of the type contemplated by Section
4.05(a) (and supported by the calculations done by the Accounting Firm) shall be
binding upon such Company and the Participant.
	 
	 	(c)	 	The federal, state and local income or other tax returns filed by the
Participant shall be prepared and filed on a consistent basis with the determination of
the Accounting Firm with respect to the Excise Tax, if any, payable by the Participant.
The Participant shall make proper payment of the amount of any Excise Tax, and upon
request, provide to the Corporation true and correct copies (with any amendments) of
the Participant’s federal income tax return as filed with the Internal Revenue Service
and corresponding state and local tax returns, if relevant, as filed with the
applicable taxing authority, and such other documents reasonably requested by the
Corporation, evidencing such filing and payment.
	 
	 	(d)	 	The Corporation will pay the fees and expenses of the Accounting Firm for its
services in connection with the determinations and calculations contemplated by Section
4.05(a) and Section 4.05(c). If such fees and expenses are
initially paid by

-14-

 

	 	 	 	the Participant, subject to Section 4.02, the Corporation shall reimburse the
Participant the full amount of such fees and expenses within ten (10) business days
after receipt from the Participant of reasonable evidence of payment.

-15-

 

ARTICLE FIVE

AMENDMENT AND TERMINATION

5.01 Amendment

The Corporation reserves the right to amend, modify or change the Plan, at any time without
any Participant’s consent; provided, however, that any amendment,
modification or change that adversely affects a Participant’s severance benefits and/or
rights will not apply to a Participant if the revision is made within six (6) months prior
to, the occurrence of a Change in Control without the Participant’s written consent (and
before all payments and benefits hereunder or at or following the occurrence of such Change
in Control associated with such Change in Control are paid or made available as set forth
herein), except as may be otherwise required to comply with changes in applicable laws or
regulations, including as set forth in Section 4.02.

5.02 Termination 

The term of the Plan shall be for an initial term of two (2) years commencing on the
Effective Date and shall continue through December 31, 2008 (the “Initial Term”);
provided, however, that at the end of the Initial Term and on each
succeeding anniversary of the Effective Date, the Plan will be automatically extended by an
additional one (1) year (each, a “Renewal Term”), unless, not less than one (1) year prior
to the end of the Initial Term or any Renewal Term, a Company has given the Participants
written notice of nonrenewal. Notwithstanding the foregoing, following the commencement of
any discussions with a third party that result in a Change in Control, the Plan shall
continue subject to Section 5.01, until the applicable Participating Employer has fully
performed all of such Participating Employer’s obligations under the Plan with respect to
all Participants, and shall have paid all Severance Benefits under the Plan in full to all
Participants.

-16-

 

ARTICLE SIX

MISCELLANEOUS

6.01 Participant Rights

Each Company intends this Plan to constitute a legally enforceable obligation between (A)
such Company and (B) each Participant.

It is also intended that the Plan shall confer vested and non-forfeitable rights for each
Participant to receive benefits to which the Participant is entitled under the terms of the
Plan with Participants being third party beneficiaries.

Except as provided in the definitions of Cause and Good Reason, nothing in this Plan shall
be construed to confer on any Participant any right to continue in the employ of any Company
or a Subsidiary or affiliate of the Corporation or to affect in any way the right of the
Corporation or a Subsidiary or affiliate of the Corporation to terminate a Participant’s
employment without prior notice at any time for any reason or no reason.

6.02 Authority of the Compensation Committee

	 	(a)	 	The Compensation Committee will administer the Plan and have the full authority
and discretion necessary to accomplish that purpose, including, without limitation, the
authority and discretion to:

	 	(i)	 	resolve all questions relating to the eligibility of
Participants;
	 
	 	(ii)	 	determine the amount of benefits, if any, payable to
Participants under the Plan and determine the time and manner in which such
benefits are to be paid;
	 
	 	(iii)	 	engage any administrative, legal, tax, actuarial, accounting,
clerical, or other services it deems appropriate in administering the Plan;
	 
	 	(iv)	 	construe and interpret the Plan, supply omissions from, correct
deficiencies in and resolve inconsistencies or ambiguities in the language of
the Plan, resolve inconsistencies or ambiguities between the provisions of this
document, and adopt rules for the administration of the Plan which are not
inconsistent with the terms of the Plan document;
	 
	 	(v)	 	compile and maintain all records it determines to be necessary,
appropriate or convenient in connection with the administration of the Plan;
and
	 
	 	(vi)	 	resolve all questions of fact relating to any matter for which
it has administrative responsibility.

	 	(b)	 	The Compensation Committee shall perform all of the duties and may exercise all
of the powers and discretion that the Compensation Committee deems necessary

-17-

 

	 	 	 	or appropriate for the proper administration of the Plan, including, but not limited
to, delegation of any of its duties to one or more authorized officers, and shall do
so in a uniform, nondiscriminatory manner.
	 
	 	(c)	 	Any failure by the Compensation Committee to apply any provisions of this Plan
to any particular situation shall not represent a waiver of the Compensation
Committee’s authority to apply such provisions thereafter. Every interpretation,
choice, determination or other exercise of any power or discretion given either
expressly or by implication to the Compensation Committee shall be conclusive and
binding upon all parties having or claiming to have an interest under the Plan or
otherwise directly or indirectly affected by such action, without restriction, however,
on the right of the Compensation Committee to reconsider and redetermine such action.
	 
	 	(d)	 	Any decision rendered by the Compensation Committee and any review of such
decision shall be limited to determining whether the decision was so arbitrary and
capricious as to be an abuse of discretion. The Compensation Committee may adopt such
rules and procedures for the administration of the Plan as are consistent with the
terms hereof.

6.03 Claims Procedure

	 	(a)	 	With respect to any claim for benefits which are provided exclusively under
this Plan, the claim shall be approved or denied by the Compensation Committee within
sixty (60) days following the receipt of the information necessary to process the
claim. If the Compensation Committee denies a claim for benefits in whole or in part,
it will give written notice of the decision to the claimant or the claimant’s
authorized representative, which notice will set forth in a manner calculated to be
understood by the claimant, stating the specific reasons for such denial, make specific
reference to the pertinent Plan provisions on which the decision was based, and provide
any other additional information, as applicable, required by 29 Code of Federal
Regulations Section 2560.503-1 applicable to the Plan.
	 
	 	(b)	 	With respect to any claim for benefits which, under the terms of the Plan, are
provided under another employee benefit plan maintained by a Company, the Compensation
Committee shall determine claims regarding the Participant’s eligibility under the Plan
in accordance with the preceding paragraph, but the administration of any other claim
with respect to such benefits (including the amount of such benefits) shall be subject
to the claims procedure specified in such other employee benefit plan or program.

Appeals with respect to any claim for benefits which, under the terms of the Plan, are
provided under another employee benefit plan maintained by a Company (e.g., group health,
life insurance, etc.), shall be subject to the claims and appeals procedure specified in
such other employee benefit plan.

-18-

 

6.04 Records and Reports

The Compensation Committee will maintain adequate records of all of their proceedings and
acts and all such books of account, records, and other data as may be necessary for
administration of the Plan. The Compensation Committee will make available to each
Participant upon the Participant’s request such of the Plan’s records as pertain to him for
examination at reasonable times during normal business hours.

6.05 Reliance on Tables, Etc.

In administering the Plan, the Compensation Committee is entitled to the extent permitted by
law to rely conclusively upon all tables, valuations, certificates, opinions and reports
which are furnished by accountants, legal counsel or other experts employed or engaged by
the Compensation Committee. The Compensation Committee will be fully protected in respect
of any action taken or suffered by the Compensation Committee in good faith reliance upon
all such tables, valuations, certificates, reports, opinions or other advice. The
Compensation Committee is also entitled to rely upon any data or information furnished by a
Participating Employer or by a Participant as to any information pertinent to any
calculation or determination to be made under the provisions of the Plan, and, as a
condition to payment of any benefit under the Plan the Compensation Committee may request a
Participant to furnish such information as it deems necessary or desirable in administering
the Plan.

6.06 Availability of Plan Information and Documents

Any Participant having a question concerning the administration of the Plan or the
Participant’s eligibility for participation in the Plan or for the payment of benefits under
the Plan may contact the Compensation Committee and request a copy of the Plan document.
Each Participating Employer will keep copies of this Plan document, exhibits and amendments
hereto, and any related documents on file in its administrative offices, and such documents
will be available for review by a Participant or a designated representative of the
Participant at any reasonable time during regular business hours. Reasonable copying
charges for such documents will be paid by the party requesting copies.

6.07 Expenses

All Plan administration expenses incurred by the Compensation Committee shall be paid by the
Corporation and all other administration expenses incurred by a Company shall be paid by
such Company.

6.08 Dispute Resolution

	 	(a)	 	If the Participant and any Company (collectively, the “Parties”) are unable to
resolve any controversy or claim arising out of or in connection with this Plan or
breach thereof, either Party shall refer the dispute to binding arbitration, which
shall be the exclusive forum of resolving such claims. Such arbitration will be
administered by Judicial Arbitration and Mediation Services, Inc. (“JAMS”)

-19-

 

	 	 	 	pursuant to its Employment Arbitration Rules and Procedures and governed by Kansas
law. The arbitration shall be conducted by a single arbitrator selected by the
Parties according to the rules of JAMS. If the Parties fail to agree on the
selection of the arbitrator within thirty (30) days after either the Participant or
such Company’s request for arbitration, the arbitrator will be chosen by JAMS. The
arbitration proceeding shall commence on a mutually agreeable date within ninety
(90) days after the request for arbitration, unless otherwise agreed by the Parties,
and in the location where the Participant worked during the six (6) months
immediately prior to the request for arbitration to the extent such location is
Kansas or Virginia, and if not, the location will be Kansas, unless the Parties
agree otherwise.
	 
	 	(b)	 	Such Company shall reimburse the Participant for legal fees and expenses
incurred in connection with a dispute resolved under this Section 6.08, unless the
Participant does not substantially prevail. The arbitrator shall not have authority to
award attorneys’ fees or costs to either of the Parties in any manner not consistent
with this Section 6.08(b).
	 
	 	(c)	 	The arbitrator shall have no power or authority to make awards or orders
granting relief that would not be available to a party in a court of law. The
arbitrator’s award is limited by and must comply with the terms of the Plan, including
without limitation, Section 6.02(d) and applicable federal, state, and local laws. The
decision of the arbitrator shall be final and binding on the Parties.

6.09 Continued Cooperation

	 	(a)	 	Following termination of the Participant’s employment, the Participant shall
cooperate fully with the Corporation and with the Corporation’s counsel in connection
with any present and future actual or threatened litigation or administrative
proceeding involving any Company that relates to events, occurrences or conduct
occurring (or claimed to have occurred) during the period of the Participant’s
employment by any Company. This cooperation by the Participant will include, but not
be limited to:

	 	(i)	 	making himself reasonably available for interviews and
discussions with the Corporation’s counsel as well as for depositions and trial
testimony;
	 
	 	(ii)	 	if depositions or trial testimony are to occur, making himself
reasonably available and cooperating in the preparation therefore as and to the
extent that the Corporation or the Corporation’s counsel reasonably requests;
	 
	 	(iii)	 	refraining from impeding in any way the Corporation’s
prosecution or defense of such litigation or administrative proceeding; and

-20-

 

	 	(iv)	 	cooperating fully in the development and presentation of the
Corporation’s prosecution or defense of such litigation or administrative
proceeding.

	 	(b)	 	The Participant will be reimbursed by the Corporation for reasonable travel,
lodging, telephone and similar expenses, as well as reasonable attorneys’ fees (if
independent legal counsel is necessary), incurred in connection with any cooperation,
consultation and advice rendered under this Section 6.09. The Participant shall not
unreasonably withhold the Participant’s availability for such cooperation, consultation
and advice.

6.10 Adoption Procedure for Participating Employer

	 	(a)	 	Any Subsidiary or affiliate of the Corporation may become a Participating
Employer under the Plan provided that (i) the Board approves the adoption of the Plan
by such Subsidiary or affiliate and designates such Subsidiary or affiliate as a
Participating Employer in the Plan and (ii) by appropriate resolutions of the board of
directors or other governing body of such Subsidiary or affiliate, such Subsidiary or
affiliate agrees to become a Participating Employer under the Plan and also agrees to
be bound by any other terms and conditions which may be required by the Board or the
Compensation Committee, provided that such terms and conditions are not inconsistent
with the purposes of the Plan.
	 
	 	(b)	 	A Participating Employer may withdraw from participation in the Plan, subject
to approval by the Compensation Committee, by providing written notice to the
Compensation Committee that withdrawal has been approved by the board of directors or
other governing body of the Participating Employer; provided, however,
following the commencement of any discussion with a third party that ultimately results
in a Change in Control, the Compensation Committee shall have no authority to approve
the withdrawal of any Participating Employer until such time as the Corporation and
each Subsidiary or affiliate of the Corporation (as appropriate) shall have fully
performed all of their obligations under the Plan with respect to all Participants, and
shall have paid all Severance Benefits under the Plan in full to all Participants. The
Board may at any time remove a Participating Employer from participation in the Plan by
providing written notice to the Participating Employer that it has approved removal;
provided, however, following the commencement of any discussion with a
third party that ultimately results in a Change in Control, the Board shall have no
authority to remove or approve the withdrawal of any Participating Employer until such
time as the Corporation and each Subsidiary or affiliate of the Corporation (as
appropriate) shall have fully performed all of their obligations under the Plan with
respect to all Participants, and shall have paid all Severance Benefits under the Plan
in full to all Participants. The Board will act in accordance with this Article
pursuant to unanimous written consent or by majority vote at a meeting.

-21-

 

6.11 Effect on Other Benefits

Except as otherwise provided herein, the Plan shall not affect any Participant’s rights or
entitlement under any other retirement or employee benefit plan offered to him by the
Corporation or a Subsidiary or affiliate of the Corporation (as appropriate) as of the date
of the Participant’s termination of employment.

6.12 Successors

The Plan shall be binding upon any successor in interest of any Company and shall inure to
the benefit of, and be enforceable by, the Participant’s assigns or heirs.

6.13 Construction

In determining the meaning of the Plan, words imparting the masculine gender shall include
the feminine and the singular shall include the plural, unless the context requires
otherwise. Headings of sections and subsections of the Plan are for convenience only and
are not intended to modify or affect the meaning of the substantive provisions of the Plan.
Unless otherwise stated, references to Sections are references to Sections of this Plan.

6.14 References to Other Plans and Programs

Each reference in the Plan to any plan, policy or program, the Plan or document of the
Corporation or a Subsidiary or affiliate of the Corporation shall include any amendments or
successor provisions thereto without the necessity of amending the Plan for such changes.

6.15 Notices

	 	(a)	 	General. Notices and all other communications contemplated by this
Plan shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by U.S. registered or certified mail, return receipt requested
and postage prepaid. In the case of the Participant, (i) mailed notices shall be
addressed to the Participant at the Participant’s home address which was most recently
communicated to the Corporation in writing or (ii) in the case of a Participant who is
an employee, distributed to the employee at his or her place of employment in
compliance with 29 Code of Federal Regulations Section 2520.104b-1(c). In the case of
any Company, mailed notices shall be addressed to the Corporation’s corporate
headquarters, and all notices shall be directed to the attention of its General
Counsel.
	 
	 	(b)	 	Notice of Termination. Any notice of Cause by a Company or by the
Participant for Good Reason shall be communicated by a notice of termination to the
other party given in accordance with this Section 6.15. Such notice shall indicate the
specific termination provision in this Plan relied upon, shall set forth in reasonable
detail the facts and circumstances claimed to provide the basis for termination under
the provision so indicated, and shall specify the Participant’s date of termination.

-22-

 

6.16 No Duty to Mitigate

The Participant shall not be required to mitigate the amount of any payment contemplated
under this Plan, nor shall such payment be reduced by any earnings that the Participant may
receive from any other source, except as provided in this Plan. The Participant’s coverage
under any medical, dental, vision and employee life insurance plans will terminate as of the
date that the Participant becomes eligible for comparable benefits of another employer.

6.17 Withholding of Taxes

Any Company will withhold from any amounts payable under this Plan all federal, state and
local tax or other taxes as such Company is required to withhold pursuant to any law or
government regulation or rule.

6.18 Governing Law and Choice of Forum

	 	(a)	 	Except to the extent that the Plan may be subject to the provisions of ERISA,
the Plan will be construed and enforced according to the laws of the State of Kansas,
without giving effect to the conflict of laws principles thereof.
	 
	 	(b)	 	Except as otherwise required by ERISA, every right of action by a Participant
with respect to the Plan shall be barred after the expiration of three (3) years from
the date of termination of employment or the date of receipt of the notice of denial of
a claim for benefits or eligibility, if earlier. If ERISA’s limitation on legal action
does not apply, the laws of the State of Kansas with respect to the limitations of
legal actions shall apply and the cause of action must be brought within the
limitations provided under the laws of the State of Kansas.

6.19 Validity/Severability

If any provision of this Plan or the application of any provision to any person or
circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this
Plan and the application of such provision to any other person or circumstances will not be
affected, and the provision so held to be invalid or unenforceable will be reformed to the
extent (and only to the extent) necessary to make it enforceable or valid. To the extent
any provisions held to be invalid or unenforceable cannot be reformed, such provisions are
to be stricken herefrom and the remainder of this Plan will be binding on the Parties and
their successors and assigns as if such invalid or illegal provisions were never included in
this Plan from the first instance.

6.20 Survival of Provisions. 

Notwithstanding any other provision of this Plan, the Parties’ respective rights and
obligations under Sections 4.02, 6.01, 6.08, 6.09 and 6.10 will survive any termination or
expiration of this Plan or the termination of the Participant’s employment for any reason
whatsoever.

-23-

 

APPENDIX I

PLAN PARTICIPANTS

     The list of Participants and Tier Level is on file with Sprint Nextel’s Human Resources
department.

	 	 	 	 	 
	 	 	Severance Benefits	 
	Name	 	Classification	 
	 
	 	 	 	 

-24-

 

APPENDIX II

APPLICABLE BENEFITS AND PERIODS

	 	 	 	 	 	 	 
	Severance Benefits	 	 	 	 	 	 
	Classification	 	Applicable Multiple	 	Applicable Period	 	Restricted Period
	Tier I Executive

	 	2
	 	2 years
	 	24 months
	Tier II Executive
	 	1.5
	 	1.5 years
	 	18 months

-25-

 

APPENDIX III

PARTICIPATING EMPLOYERS

Sprint/United Management Company

Nextel Communications, Inc.

Nextel West Services, LLC

Nextel Operations, Inc.

-26-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]