Document:

exv10w3w2

 

Exhibit 10.3.2

*** CERTAIN CONFIDENTIAL INFORMATION CONTAINED

IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS

BEEN OMITTED AND FILED SEPARATELY WITH THE

SECURITIES AND EXCHANGE COMMISSION PURSUANT

TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER

17 C.F.R. SECTIONS 200-.80(B)(4), 20083 AND 230.406

AMENDMENT NO. 8 TO THE AMENDED AND RESTATED

SYSTEM EQUIPMENT PURCHASE AGREEMENT

     THIS AMENDMENT NO. 8 (this “Amendment” or “Amendment No. 8”) is made and entered into by and
between Cricket Communications, Inc., a Delaware corporation (“Owner”) and Lucent Technologies
Inc., a Delaware corporation (“Vendor”), collectively (the “Parties”) and is effective as of
October 1, 2005 (the “Amendment No. 8 Effective Date”).

RECITALS

     A. WHEREAS, Owner and Vendor are parties to that certain Amended and Restated System Equipment
Purchase Agreement, dated as of June 30, 2000 (the “SEPA”), as amended by Amendment No. 1,
effective March 22, 2002 (“Amendment No. 1”), Amendment No. 2, effective March 22, 2002 (“Amendment
No. 2”), Amendment No. 3, effective March 22, 2002 (“Amendment No. 3”), Amendment No. 4, effective
September 10, 2002 (“Amendment No. 4”), the Letter Agreements dated September 30, 2002 and December
30, 2002 (the “Letter Agreements”), Amendment No. 5, executed on September 23, 2003 (“Amendment No.
5”), Amendment No. 6 effective February 4, 2004 (“Amendment No. 6”) and Amendment No. 7 effective
January 1, 2005; The SEPA, Amendment Nos. 1-7 and the Letter Agreements are collectively referred
to herein as (the “Contract” or “SEPA”).

     B. NOW, THEREFORE, incorporating the Recitals herein, and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged, and intending to
be legally bound hereby, Vendor and Owner agree as follows:

1. EFFECTIVE DATE AND CONTRACT TERM EXTENSION

This Amendment shall become effective as of the Amendment No. 8 Effective Date stated above. The
definition of “Contract Term” in Section 1.1 is hereby amended in its entirety to read as follows:

“Contract Term” means the period commencing on the Effective Date of the original Contract,
September 20, 1999, and ending September 30, 2008, unless terminated earlier in accordance with the
terms and conditions hereof, or unless extended by the mutual written consent of the parties
hereto.”

2. SCOPE

Except as expressly modified herein, the terms of the SEPA, including all attachments, shall remain
in full force and effect. To the extent there may be any conflicts as related to the subject
matter herein, the documents shall control and take precedence in following order: (a) this
Amendment; (b) the SEPA; and (c) attachments to the SEPA.

 

 

	 	 	 
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	 	Amendment No. 8

All capitalized terms not otherwise defined herein shall have the same meaning and effect as
in the SEPA.

3. AGREEMENT MODIFICATIONS

3.1 Scope and Purchase Commitment: 

This Amendment No. 8 reflects the agreement between the Parties with respect to upgrading the
Equipment and Software in Owner’s Amendment No. 8 Existing Markets and Owner’s New Markets.
“Amendment No. 8 Existing Markets” means all Markets previously awarded to Vendor and for which
Owner’s System operates with Vendor’s Products as of the Amendment No. 8 Effective Date. “New
Markets” means any Market of Owner, whether existing now or in the future, other than the Amendment
No. 8 Existing Markets.

Owner commits to purchase Products and Services from Vendor over a three-year period (effective
from October 1, 2005 to September 30, 2008, referred to herein as the “Amendment No. 8 Purchase
Commitment Term”) totaling not less than [$119,000,000] before potential credits to be earned by
Owner pursuant to Section 3.5 below (the “Amendment No. 8 Purchase Commitment”).

All purchases of Products by Owner under this Contract, and purchases by Owner’s Affiliate under
any separate agreement entered into between Vendor and such Owner’s Affiliate on terms similar to
this Contract, during the Amendment No. 8 Purchase Commitment Term (an “Affiliate Contract”) shall
be credited toward the Amendment No. 8 Purchase Commitment under the conditioned as stated below.

All purchases by any Affiliate of Owner under a separate Affiliate Contract with Vendor shall be
credited toward the Amendment No. 8 Purchase Commitment, except to the extent that any such
purchases are made toward satisfaction of any separate purchase commitment contained in such
Affiliate Contract. All purchases under such Affiliate Contract shall first be applied to such
purchase commitment to Vendor, if any, in such Affiliate Contract, and after satisfaction of such
purchase commitment, then all additional purchases in excess of such purchase commitment under the
Affiliate Contract shall be credited toward the Amendment No. 8 Purchase Commitment.
“Affiliate,” means any entity that is greater than fifty percent (50%) owned, either
directly or indirectly, by Owner, and such affiliate shall not otherwise be partially owned or
controlled by any vendor in competition with Vendor.

Owner shall not have failed to satisfy the Amendment No. 8 Purchase Commitment to the extent
of any of the following: (i) Vendor’s rejection of any purchase order, where such Purchase Order is
in compliance with the terms and conditions of the applicable contract (i.e., this Contract or an
Affiliate’s Contract with Vendor), provided that Owner or the Affiliate, as applicable, is not in
arrears in its payments under such contract and is not in material breach of such contract; (ii)
Vendor’s failure, which failure shall be solely due to 

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	 	Amendment No. 8

Vendor’s actions or inactions, to timely
deliver the Products in accordance with the delivery intervals set forth in Vendor’s applicable
quotes; (iii) the Products failing to substantially conform to the applicable Specifications, and
Owner or Affiliate, as applicable, has elected to reject such Products on the basis of such
non-conformance; or (iv) payments for Products or Services received by Owner or the Affiliate, as
applicable, that are not yet due and payable pursuant to the terms of the applicable contract.

3.2 Upgrades to Amendment No. 8 Existing Markets:

Upgrades to Systems in Owner’s Amendment No. 8 Existing Markets may include, at Owner’s election,
(a) Enhanced Cellular Processor (“ECP”) Software Maintenance Releases *** at the prices set forth
in Attachment A to this Amendment No. 8, before credits, where Attachment A identifies that
hardware and software required based on Vendor’s analysis of Owner’s network data provided by Owner
to Vendor as of this Amendment No. 8 Effective Date, in order to install and operate such Software
Maintenance Releases, and (b) Vendor’s data solution (“EvDO”) Rev 0 and Rev A at the prices set
forth in Attachment C to this Amendment No. 8, before credits. In the event that additional
hardware or software elements not included under this Amendment No. 8, including attachments
hereto, are required to be installed in an Amendment No. 8 Existing Market in order for such Market
to be upgraded to and operate with such Software Maintenance Releases, Vendor shall supply such
hardware and software to Owner ***. Notwithstanding the preceding sentence, should Owner’s network
data prove *** then Owner shall be ***.

Deployment of *** will occur ***. MSC upgrades required to support Colorado Springs are as
described in Attachment B.

3.3
EvDO Rev 0/Rev A — E&I Pricing (Existing Markets):

Engineering and Installation charges applicable to the deployment of EvDO Rev 0 and Rev A are set
forth in Attachment C to this Amendment No. 8.

3.4 Loan of ***:

Owner
and Vendor shall mutually agree on a delivery schedule for the *** to be ordered by Owner. From
the date of delivery until the later of July 31, 2006 or two months after the date that Vendor ***
shall provide ***, or the equivalent ***. Should (i) *** not be installed by Vendor in all
Existing Markets, and such installation delay within such Existing Market was due solely to
Vendor’s actions or inactions, or (ii) should the *** not perform therein in accordance with Exhibit I by *** then Owner and Vendor shall ***. Should
Owner ***.

 

			
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	 	Amendment No. 8

3.5 Credits: 

3.5.1 Earned Credits:

(a) At such time during the Amendment No. 8 Purchase Commitment Term that Owner together with
all Affiliates make a total of *** in purchases (net of credits, if any applied) under this
Contract and/or any Affiliate Contracts, then Owner and the Affiliates collectively shall
earn *** in credits under this Contract. For every additional *** (net of credits, if any
applied) collectively purchased as applicable under this Amendment No. 8 and/or any Affiliate
Contracts, as applicable, Owner and its Affiliates collectively shall earn an additional ***
in credits under this Contract. ***

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Net Purchases*
	 	 	 	Credits Earned
	 	 	 	Cumulative Credits Earned
	 

	 	 
	 	 	 	 
	 	 	 	 
	 

	 	***
	 	 
	 	***
	 	 
	 	***

 

* “Net Purchases” means all gross purchases, minus any sales tax included in such amounts,
minus all credits earned and applied to such purchases as designated by Owner.

(b) In addition, should Owner purchase Vendor’s Anypath Messaging for a minimum of *** in
Equipment and Software (excluding Services), Vendor shall provide additional credits of ***
to the above credits of ***, bringing total potential credits available to Owner of ***.
Vendor’s Anypath Messaging configuration is per Attachment D to this Amendment No. 8.

3.5.2 Application of Owner’s Credits:

Credits earned may be applied as designated by Owner in writing towards Owner’s then
outstanding accounts receivable balance with Vendor. Earned credits may be applied toward
Product purchases for Amendment No. 8 Existing Markets or New Markets. Notwithstanding the
above, upon the earlier of Termination of the Contract or expiration of the Contract Term,
including any extension thereof, ***.

3.6 ARMF (TSS/BRSS/Mobility RTSA/INS RTSA/RES/OFS) Pricing:

Vendor’s standard ARMF fee is *** per ECP as of the Amendment No. 8 Effective Date. In
consideration in part of Owner’s Amendment No. 8 Purchase Commitment, Vendor pricing for ARMF for
all Markets shall be discounted as follows:

 

			
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	 	Amendment No. 8

	 	 	 	 	 	 	 
	Calendar Yr	 	Current Pricing/ECP	 	Discount	 	Revised Pricing /ECP
	2005

	 	***
	 	***
	 	***
	2006

	 	***
	 	***
	 	***
	2007

	 	***
	 	***
	 	***
	2008

	 	***
	 	***
	 	***

Upon Owner’s Commercial Service Launch Date ***.

3.7 New Market Pricing — 3G-1X: 

Pricing for New Markets shall be per Attachment C. In connection with Owner’s deployment of
Systems in New Markets, Vendor shall provide to Owner, at the time of purchase, ***.

3.8  Attachments:

The following Attachments are hereby incorporated by reference herein:

Attachment
A: Existing Markets — Upgrades ***

Attachment B: MSC Upgrades to Support Co. Springs

Attachment C: New Market Pricing and EvDO Rev 0 and Rev A Pricing

Attachment D: AnyPath Voice Messaging

 

			
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	 	Amendment No. 8

IN WITNESS WHEREOF, the authorized representatives of the parties hereto have executed this
Amendment No. 8 on the dates set forth below.

	 	 	 	 	 	 	 	 	 
	OWNER	 	 	 	VENDOR
	 
	 	 	 	 	 	 	 	 
	Cricket Communications, Inc.	 	 	 	Lucent Technologies Inc.
	 

	 	 	 	 	 	 	 	 
	By:

	 	/s/ Glenn Umetsu
	 	 	 	By:
	 	/s/ Gerald T. Kafaro
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	Glenn Umetsu
	 	 	 	Name:
	 	Gerald T. Kafaro
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	EVP & CTO
	 	 	 	Title:
	 	Sales Vice President
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	October 5, 2005
	 	 	 	Date:
	 	October 5, 2005

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	 	Amendment No. 8

***
[10 pages redacted]

 

			
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Exhibit
10.4

FORM OF SEVERANCE BENEFITS AGREEMENT

          This Severance Benefits Agreement (this “Agreement”) by and between ___
(“Executive”), Leap Wireless International, Inc., a Delaware corporation (“Leap”), and Cricket
Communications, Inc., a Delaware corporation (“Cricket”) (individually, a “Party” and collectively,
the “Parties”) is made and entered into as of
___ ___, 200___ (the “Effective Date”). Leap and
Cricket are hereinafter collectively referred to as the “Companies.”

          WHEREAS, Executive is an officer of Leap and Cricket, and is presently employed by Cricket;
and

          WHEREAS, Cricket desires to provide Executive with certain severance benefits as an incentive
to remain in the employ of Cricket; and

          WHEREAS, the Boards of Directors of Leap and Cricket have determined that it is in the best
interests of Leap and Cricket, respectively, and their stockholders, to enter in this Agreement.

          NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for
other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged by each Party hereto, the Parties hereby agree as follows:

          1. Term of Agreement. This Agreement shall commence on the Effective Date and shall
continue in effect through the December 31, 200_; provided, however, that commencing on December
31, 200___ and on each December 31 thereafter, the term of this Agreement shall be automatically
extended for one additional year unless, not later than the immediately preceding June 30, Leap or
Cricket shall have given notice to Executive that the term of this Agreement shall not be further
extended.

          2. Severance Benefits.

          a. Severance Benefits. In the event that, during the term of this Agreement,
Executive’s employment is terminated by Cricket other than for Cause (as defined below), or
by Executive for Good Reason (as defined below), Executive shall be entitled to the
following:

          (i) Cricket shall pay promptly to Executive, following the Date of Termination,
Executive’s accrued, unpaid base salary through the Date of Termination, and the
Companies shall pay all other amounts to which Executive is then entitled under any
compensation or benefit plan of the Companies in accordance with the terms and
conditions of such plans.

          (ii) Cricket shall pay to Executive, following the Date of Termination and in
accordance with subsection (g), a lump sum severance benefit in cash (the “Severance
Payment”) equal to the sum of (A) one hundred percent (100%) of the Executive’s
annual base salary, plus (B) 100% of Executive’s target annual bonus under the
annual bonus plan of the Companies. For purposes of this clause, Executive’s annual
base salary shall mean Executive’s greatest

 

 

annual base salary as in effect during the twelve (12) months ending on the
Date of Termination, and Executive’s target annual bonus shall mean Executive’s
greatest target annual bonus as in effect during the twelve (12) months ending on
the Date of Termination.

          (iii) To the extent Executive elects continuation health care coverage for
Executive and his eligible dependents under Section 4980B(f) of the Internal Revenue
Code of 1986, as amended from time to time (the “Code”) and Sections 601-608 of the
Employee Retirement Income Security Act of 1974, as amended (“COBRA Coverage”),
Executive shall not be required to pay premiums for such COBRA Coverage for the
twelve (12) month period commencing on the Date of Termination (or, if earlier,
until Executive is eligible for comparable coverage with a subsequent employer).

          b. Cause. For purposes of this Section 2, “Cause” shall mean termination of
Executive’s employment by Cricket: (i) upon Executive’s willful failure substantially to
perform Executive’s duties with Cricket (other than any such failure resulting from
Executive’s incapacity due to physical or mental illness or any such actual or anticipated
failure after Executive’s issuance of a Notice of Termination (as defined below) for Good
Reason), as reasonably determined by the Board of Directors of Cricket (the “Cricket Board”)
after a written demand for substantial performance is delivered to Executive by the Cricket
Board, which demand specifically identifies the manner in which the Cricket Board believes
that Executive has not substantially performed such duties, provided that Executive shall
have been given a reasonable period, not to exceed fifteen (15) days, in which to cure such
failure (provided such failure is capable of being cured); (ii) upon Executive’s willful
failure substantially to follow and comply with the specific and lawful directives of the
Cricket Board (or the board of directors of Cricket’s parent corporation), or duly adopted
policies of Cricket which are consistent with Executive’s duties with Cricket (or Cricket’s
parent or subsidiary corporations or any successor thereof), as reasonably determined by the
Cricket Board (other than any such failure resulting from Executive’s incapacity due to
physical or mental illness or any such actual or anticipated failure after Executive’s
issuance of a Notice of Termination for Good Reason), after a written demand for substantial
performance is delivered to Executive by the Cricket Board, which demand specifically
identifies the manner in which the Cricket Board believes that Executive has not
substantially performed such directives, provided that Executive shall have been given a
reasonable period, not to exceed fifteen (15) days, in which to cure such failure (provided
such failure is capable of being cured); (iii) upon Executive’s commission of an act of
fraud or dishonesty impacting or involving Cricket (or Cricket’s parent or subsidiary
corporations or any successor thereof); (iv) upon Executive’s willful engagement in illegal
conduct or gross misconduct affecting Cricket; or (v) upon the Executive being convicted of,
or pleading nolo contendere to, the commission of a felony.

          c. Good Reason. For purposes of this Section 2, “Good Reason” shall mean,
without Executive’s express written consent, the occurrence of any of the following
circumstances unless such circumstances are cured (provided such circumstances are capable
of being cured) prior to the Date of Termination specified in

2

 

the Notice of Termination given in respect thereof: (i) the continuous assignment to
Executive of any duties materially inconsistent with Executive’s positions with Cricket (or
any parent or subsidiary corporation or any successor thereof), a significant adverse
alteration in the nature or status of Executive’s responsibilities or the conditions of
Executive’s employment with Cricket (or any parent or subsidiary corporation or any
successor thereof),, or any other action that results in a material diminution in
Executive’s position, authority, title, duties or responsibilities with Cricket (or any
parent or subsidiary corporation or any successor thereof); (ii) reduction of Executive’s
annual base salary as in effect on the Effective Date or as the same may be increased from
time to time thereafter; (iii) the relocation of Cricket’s offices at which Executive is
principally employed to a location more than sixty (60) miles from such location; (iv)
Cricket’s failure (or the failure of any parent or subsidiary corporation or any successor
thereof) to pay Executive any portion of Executive’s current compensation; (v) Cricket’s
failure (or the failure of any parent or subsidiary corporation or any successor thereof) to
continue in effect any material compensation or benefit plan in which Executive
participates, unless an equitable arrangement (embodied in an ongoing substitute or
alternative plan) has been made with respect to such plan, or Cricket’s failure to continue
Executive’s participation therein (or in such substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount of benefits provided and the level of
Executive’s participation relative to other participants; (vi) Cricket’s failure (or the
failure of any parent or subsidiary corporation or any successor thereof) to continue to
provide Executive with benefits substantially similar in the aggregate to those enjoyed by
Executive under any of Cricket’s life insurance, medical, health and accident, disability,
pension, retirement, or other benefit plans in which Executive or Executive’s eligible
family members were participating immediately prior thereto, or the taking of any action by
Cricket (or any parent or subsidiary corporation or any successor thereof) which would
directly or indirectly materially reduce any of such benefits; (vii) Cricket or Leap’s
failure to obtain a satisfactory agreement from any successor to assume and agree to perform
this Agreement; or (viii) the continuation or repetition, after written notice of objection
from Executive, of harassing or denigrating treatment of Executive by Cricket (or any parent
or subsidiary corporation or any successor thereof) inconsistent with Executive’s position
with Cricket. Executive’s right to terminate employment with Cricket pursuant to this
Section 2(c) shall not be affected by Executive’s incapacity due to physical or mental
illness. Executive’s continued employment with Cricket (or any parent or subsidiary
corporation or any successor thereof) shall not constitute consent to, or a waiver of rights
with respect to, any circumstance constituting Good Reason hereunder.

          d. Notice of Termination. Any purported termination of Executive’s employment
by Cricket for Cause or by Executive for Good Reason shall be communicated by Notice of
Termination to the other party hereto in accordance with Section 4. “Notice of Termination”
shall mean a written notice that shall indicate the specific termination provision in this
Section 2 relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for the termination of employment under the provision so
indicated.

3

 

          e. Date of Termination. For purposes of this Section 2, “Date of Termination”
shall mean the date specified in the Notice of Termination (which, in the case of a
termination by Cricket for Cause shall not be less than thirty (30) days after the date such
Notice of Termination is given, and in the case of a termination by Executive for Good
Reason shall not be less than fifteen (15) nor more than sixty (60) days after the date such
Notice of Termination is given).

          f. General Release. In consideration of, and as a condition to receiving, the
severance benefits to be provided to Executive under Sections 2(a)(ii) and (iii), Executive
shall execute and deliver to the Companies the “General Release” set forth on Exhibit
A hereto on or after the Date of Termination and not later than twenty-one (21) days
after the Date of Termination (or, in the event that the termination of Executive’s
employment with Cricket is in connection with an exit incentive or other employment
termination program offered to a group or class of employees, not later than forty-five (45)
days after the Date of Termination (or, if later, the date Executive is provided with the
information required in accordance with Section 3(f) of the General Release)). In the event
that Executive fails to execute and deliver to the Companies the General Release in
accordance with this Section 2(f), or Executive revokes the General Release in accordance
with the terms thereof, Executive shall not receive the severance benefits set forth in
Sections 2(a)(ii) and (iii).

          g. Timing of Severance Payment. The Severance Payment provided for in Section
2(a)(ii) shall be made not later than the tenth day following the date on which the General
Release by Executive becomes irrevocable.

          3. Code Section 409A.

          a. Short-Term Deferral Exemption. This Agreement is not intended to provide
for any deferral of compensation subject to Code Section 409A and, accordingly, the
Severance Payment payable under Section 2(a)(ii) is intended to be paid not later than the
later of: (i) the 15th day of the third month following Executive’s first
taxable year in which such severance benefit is no longer subject to a substantial risk of
forfeiture, and (ii) the 15th day of the third month following first taxable year
of the Companies in which such severance benefit is no longer subject to substantial risk of
forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations
and other guidance issued thereunder. The date determined under this subsection is referred
to as the “Short-Term Deferral Date.”

          b. Compliance with Code Section 409A. Notwithstanding Sections 2(a)(ii),
2(a)(iii) and 2(g), in the event that the Severance Payment and benefits payable under
Sections 2(a)(ii) and 2(a)(iii) are not actually or constructively received by Executive on
or before the Short-Term Deferral Date, to the extent such Severance Payment or benefits
constitute a deferral of compensation subject to Code Section 409A, then: (i) subject to
clause (ii), such Severance Payment shall be payable upon Executive’s “separation from
service,” as defined in Code Section 409A(a)(2)(A)(i), with respect to the Companies, and
(ii) if Executive is a “specified employee,” as defined in Code Section 409A(a)(2)(B)(i),
with respect to the Companies, such Severance Payment and benefits shall be payable upon the
date which is six months after the date of

4

 

Executive’s “separation from service” (or, if earlier, the date of Executive’s death)
in accordance with Code Section 409A(a)(2)(B)(i) and any Treasury Regulations or other
guidance issued thereunder. In the event that the Severance Payment is subject to this
subsection, such Severance Payment shall be paid not later than 60 days following the
payment date determined under this subsection, and shall be made subject to Section 2(f).

          4. Successors; Binding Agreement. This Agreement shall inure to the benefit of and
shall be binding upon the Companies and their respective successors and assigns, including any
purchaser of all or substantially all of their respective assets, and shall be binding upon
Executive’s assigns, executors, administrators, beneficiaries, or their legal representatives.

          5. Notice. For the purpose of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States certified or registered mail, return receipt requested,
postage prepaid, addressed to the last known mailing address of the respective Party, provided that
all notices to Cricket shall be directed to the attention of the Cricket Board with a copy to the
Secretary of Cricket, and all notices to Leap shall be directed to the attention of the Board of
Directors of Leap with a copy to the Secretary of Leap, or to such other address as any Party may
have furnished to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

          6. Non-Compete, Confidentiality and Non-Solicitation Covenants. In consideration of
the benefits to be provided to Executive under Section 2 of this Agreement, and in order to protect
the goodwill of Cricket, Executive hereby agrees to the following covenants.

          a. Non-Compete. For a period of twelve (12) months commencing on the Date of
Termination, Executive shall not, directly or indirectly, own, manage, operate, join,
control or participate in the ownership, management, operation or control of, or be
connected as a director, officer, employee, partner, consultant or otherwise with, any
profit or nonprofit business or organization which, directly or indirectly competes with, or
in any way interferes with, the business of Cricket or any of its respective affiliates in
any region in which Cricket is then operating or has firm plans to operate.

          b. Confidentiality. For the period of three years commencing on the Date of
Termination, Executive shall not, directly or indirectly, disclose or make available to any
person, firm, corporation, association or other entity for any reason or purpose whatsoever,
any Confidential Information (as defined below). Executive agrees that, upon termination of
Executive’s employment with Cricket, all Confidential Information in Executive’s possession
that is in writing or other tangible form (together with all copies or duplicates thereof,
including computer files) shall be returned to Cricket and shall not be retained by
Executive or furnished to any third party, in any form except as provided herein; provided,
however, that Executive shall not be obligated to treat as confidential, or return to
Cricket copies of any Confidential Information that (i) was publicly known at the time of
disclosure to Executive, (ii) becomes publicly known or available thereafter other than by
any means in violation of this Agreement or any other duty owed to Cricket by any person or
entity, or (iii) is lawfully disclosed to Executive by a third party. As used in this
Agreement, the term “Confidential Information” means: information disclosed to Executive or
known by Executive as a

5

 

consequence of or through Executive’s relationship with Cricket, about the customers,
employees, business methods, technical operations, public relations methods, organization,
procedures or finances, including, without limitation, information of or relating to
customer lists, of Cricket and its affiliates.

          c. Non-Solicitation. For the period commencing on the Date of Termination and
terminating on the third anniversary thereof, Executive shall not, either on Executive’s own
account or jointly with or as a manager, agent, officer, employee, consultant, partner,
joint venture, owner or shareholder or otherwise on behalf of any other person, firm or
corporation, directly or indirectly solicit or attempt to solicit away from Cricket, or any
of its affiliates, any of its officers or employees or offer employment to any person who,
on or during the six (6) months immediately preceding the date of such solicitation or
offer, is or was an officer or employee of Cricket, or any of its affiliates; provided,
however, that a general advertisement to which an employee of Cricket, or any of its
affiliates, responds shall in no event be deemed to result in a breach of this Section 6(c).

          d. Breach of Covenants. In the event that Executive breaches any of the
provisions of this Section 5, or threatens to do so, in addition to and without limiting or
waiving any other remedies available to Cricket in law or in equity, Cricket shall be
entitled to immediate injunctive relief in any court having the capacity to grant such
relief, to restrain such breach or threatened breach and to enforce this Section 6.
Executive acknowledges that it is impossible to measure in money the damages that Cricket
will sustain in the event that Executive breaches or threatens to breach this Section 6 and,
in the event that Cricket institutes any action or proceeding to enforce this Section 6
seeking injunctive relief, Executive hereby waives and agrees not to assert or use as a
defense a claim or defense that Cricket has an adequate remedy at law. Also, in addition to
any other remedies available to Cricket in law or in equity, in the event that Executive
breaches the provisions of this Section 6 in any material respect, Executive shall forfeit
Executive’s right to further benefits under Section 2 and Executive shall be obligated to
repay to Cricket the benefits that Executive has received under Section 2. If a court or
arbitrator shall hold that the duration, scope or area restriction or other provision of
this Section 6 is unreasonable under the circumstances now or then existing, the Parties
hereto agree that the maximum duration, scope or area restriction reasonable under the
circumstances shall be substituted for the stated duration, scope or area restriction.

          7. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by
Executive and such officer of Cricket and Leap as may be specifically designated thereby. No
waiver by any Party hereto at any time of any breach by any other Party hereto of or compliance
with, any condition or provision of this Agreement to be performed by such other Party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by any Party which are not expressly set forth
in this Agreement. Executive acknowledges that Executive has consulted with counsel (or has had a
reasonable opportunity to consult with counsel) and is fully aware of Executive’s rights

6

 

and obligations under this Agreement. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California without
regard to its conflicts of law principles. All references to sections of any federal, state or
local law shall be deemed also to refer to any successor provisions to such sections. Any payments
provided for hereunder shall be paid net of any applicable withholding required under federal,
state or local law. The Section headings contained in this Agreement are for convenience only, and
shall not affect the interpretation of this Agreement.

          8. Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

          9. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

          10. Arbitration; Dispute Resolution, Etc. Any disagreement, dispute, controversy or
claim arising out of or relating to this Agreement or the interpretation of this Agreement or any
arrangements relating to this Agreement or contemplated in this Agreement or the breach,
termination or invalidity thereof shall be settled by final and binding arbitration administered by
the American Arbitration Association (“AAA”) in San Diego, California in accordance with its then
existing National Rules for the Resolution of Employment Disputes. In the event of such an
arbitration proceeding, the Parties shall select a mutually acceptable neutral arbitrator from
among the AAA panel of arbitrators. In the event the Parties cannot agree on an arbitrator, the
Administrator of AAA will appoint an arbitrator. Neither the Parties nor the arbitrator shall
disclose the existence, content, or results of any arbitration hereunder without the prior written
consent of all Parties. Except as provided herein, the Federal Arbitration Act shall govern the
interpretation, enforcement and all proceedings. The arbitrator shall apply the substantive law
(and the law of remedies, if applicable) of the state of California, or federal law, or both, as
applicable and the arbitrator is without jurisdiction to apply any different substantive law. The
arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary
judgment by any party and shall apply the standards governing such motions under the Federal Rules
of Civil Procedure. The arbitrator shall render an award and a written, reasoned opinion in
support thereof. Judgment upon the award may be entered in any court having jurisdiction thereof.
Cricket shall pay all fees and expenses of the Arbitrator regardless of the result and shall
provide all witnesses and evidence reasonably required by Executive to present Executive’s case.
Cricket shall pay to Executive all reasonable arbitration expenses and legal fees incurred by
Executive if Executive prevails in enforcing or obtaining his or her rights or benefits provided by
this Agreement. Such payments shall be made within five (5) days after Executive’s request for
payment accompanied with such evidence of fees and expenses incurred as Cricket reasonably may
require.

          11. At-Will Employment. Nothing in the foregoing diminishes or alters Cricket’s
policy of at-will employment for all employees, where both Cricket and Executive may terminate the
employment relationship at any time and for any reason, with or without cause or notice.

7

 

          12. Entire Agreement. This Agreement sets forth the entire agreement of the Parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto.

     IN WITNESS WHEREOF, the Parties have signed their names as of the day and year first above
written.

	 	 	 	 	 
	LEAP WIRELESS INTERNATIONAL, INC.	 	 
	 

	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name: S. Douglas Hutcheson	 	 
	 
	 	 	 	 
	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 
	CRICKET COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	EXECUTIVE	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 

8

 

EXHIBIT
A

GENERAL RELEASE

          1. General Release of Claims. In consideration of the benefits under Section 2 of the
Severance Benefits Agreement (the “Agreement”), effective as of October 27, 2005, by and between
Leap Wireless International, Inc. (“Leap”), Cricket Communications, Inc. (“Cricket”) (collectively,
the “Companies”) and ___ (“Executive”), Executive does hereby for himself or
herself and his or her spouse, beneficiaries, heirs, successors and assigns, release, acquit and
forever discharge the Companies and their respective stockholders, officers, directors, managers,
employees, representatives, related entities, successors and assigns, and all persons acting by,
through or in concert with them (the “Releasees”) of and from any and all claims, actions, charges,
complaints, causes of action, rights, demands, debts, damages, or accountings of whatever nature,
except for criminal activity, known or unknown, which Executive may have against the Releasees
based on any actions or events which occurred prior to the date of this General Release, including,
but not limited to, those related to, or arising from, Executive’s employment with the Companies,
or the termination thereof, any claims under Title VII of the Civil Rights Act of 1964, the Federal
Age Discrimination and Employment Act and the California Fair Employment and Housing Act, but
excluding claims under the Agreement (collectively, “Claims”). This General Release shall not,
however, constitute a waiver of any of Executive’s rights under the Agreement or under any
outstanding stock option granted to Executive, or under the terms of any employee benefit plan of
the Companies in which Executive is a participant.

          2. Release of Unknown Claims. In addition, Executive expressly waives all rights
under Section 1542 of the Civil Code of the State of California, which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIM FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN
BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

          3. Older Worker’s Benefit Protection Act. Executive agrees and expressly acknowledges
that this General Release includes a waiver and release of all claims which Executive has or may
have under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621,
et seq. (“ADEA”). The following terms and conditions apply to and are part of the
waiver and release of the ADEA claims under this General Release:

          a. That the Agreement and this General Release are written in a manner calculated to be
understood by Executive.

          b. The waiver and release of claims under the ADEA contained in this General Release do
not cover rights or claims that may arise after the date on which Executive signs this
General Release.

          c. The Agreement provides for consideration in addition to anything of value to which
Executive is already entitled.

A-1

 

          d. Executive is advised to consult an attorney before signing this General Release.

          e. Executive is afforded twenty-one (21) days (or, in the event that the termination of
Executive’s employment is in connection with an exit incentive or other employment
termination program, forty-five (45) days) after Executive is provided with this General
Release to decide whether or not to sign this General Release. If Executive executes this
General Release prior to the expiration of such period, Executive does so voluntarily and
after having had the opportunity to consult with an attorney.

          f. In the event that the termination of Executive’s employment is in connection with an
exit incentive or other employment termination program, Executive is provided with written
information, calculated to be understood by the average individual eligible to participate,
as to:

          (i) any class, unit, or group of individuals covered by such program, any
eligibility factors for such program, and any time limits applicable to such
programs; and

          (ii) the job titles and ages of all individuals eligible or selected for the
program, and the ages of all individuals in the same job classification or
organizational unit who are not eligible or not selected for the program.

          g. Executive will have the right to revoke this General Release within seven (7) days
of signing this General Release. In the event this General Release is revoked, this General
Release will be null and void in its entirety, and Executive will not receive the benefits
described in Section 2 of the Agreement.

          h. If Executive wishes to revoke the General Release, Executive shall deliver written
notice stating his intent to revoke this General Release to Cricket’s President on or before
the seventh (7th) day after the date hereof.

          4. No Assignment of Claims. Executive represents and warrants to the Releasees that
there has been no assignment or other transfer of any interest in any Claim which Executive may
have against the Releasees, or any of them, and Executive agrees to indemnify and hold the
Releasees harmless from any liability, claims, demands, damages, costs, expenses and attorneys’
fees incurred as a result of any person asserting any such assignment or transfer of any rights or
Claims under any such assignment or transfer from such party.

          5. No Suits or Actions. Executive agrees that if he or she hereafter commences, joins
in, or in any manner seeks relief through any suit arising out of, based upon, or relating to any
of the Claims released hereunder, or in any manner asserts against the Releasees any of the Claims
released hereunder, then he or she will pay to the Releasees against whom such suit or Claim is
asserted, in addition to any other damages caused thereby, all attorneys’ fees incurred by such
Releasees in defending or otherwise responding to said suit or Claim.

A-2

 

          6. No Admission. Executive further understands and agrees that neither the payment of
money nor the execution of this Release shall constitute or be construed as an admission of any
liability whatsoever by the Releasees.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 

A-3

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