Document:

Exhibit 10.1 (bk)

 

SAUER-DANFOSS INC.

SUPPLEMENTAL EXECUTIVE SAVINGS & RETIREMENT PLAN

 

Effective January 1, 2004

 

 

SAUER-DANFOSS INC.

SUPPLEMENTAL EXECUTIVE SAVINGS & RETIREMENT PLAN

 

I.                                         PURPOSE AND EFFECTIVE DATE.

 

1.1.                              Purpose.  The
Sauer-Danfoss Inc. Supplemental Executive Savings & Retirement Plan has
been established by Sauer-Danfoss Inc. to attract and retain certain key
employees by supplementing such employee’s retirement income, available under
the Sauer-Danfoss Employees’ Retirement Plan (the “ERP”) and the Sauer-Danfoss
Employees’ Savings Plan (the “ESP”), which is otherwise limited by Sections 415
and 401(a)(17) of the Internal Revenue Code of 1986, as amended, and the
regulations issued thereunder.

 

1.2.                              Effective Date.  The
Plan shall be effective January 1, 2004 and shall remain in effect until
terminated in accordance with Article VIII.

 

II.                                     DEFINITIONS.

 

When used in the Plan and
initially capitalized, the following words and phrases shall have the meanings
indicated:

 

2.1.                              “Accounts” means the recordkeeping accounts established
for each Participant in the Plan for purposes of accounting for the amount of
the Participant’s Supplemental Benefit Amounts determined and credited in
accordance with Article IV each year, if any, and all adjusted
periodically to reflect the interest earnings or hypothetical investment return
on such amounts in accordance with Article V.

 

2.2.                              “Administrator” means the Committee or such individual or
committee appointed by the Committee to administer the Plan in accordance with
Article VII.  The Committee shall
take such actions it deems necessary or desirable to ensure that such
individual or committee has sufficient and appropriate authority for carrying
out the intent and purpose of the Plan.

 

2.3.                              “Affiliate” means:

 

(a)                                  any corporation, partnership, joint venture,
trust, association or other business enterprise which is a member of the same
controlled group of corporations, trades or businesses as the Company (within
the meaning of Code Section 414), and

 

(b)                                 any other entity that is designated as an
Affiliate by the Committee.

 

 

2.4.                              “Beneficiary” means the person or entity designated by the
Participant to receive the Participant’s Supplemental Benefits Amounts in the
event of the Participant’s death.  If the
Participant does not designate a Beneficiary, or if the Participant’s
designated Beneficiary predeceases the Participant, the Participant’s estate
shall be the Beneficiary under the Plan.

 

2.5.                              “Board” means the Board of Directors of the Company.

 

2.6.                              “Cash Balance Employee” means an employee of the Company or an
Affiliate whose retirement benefit under the ERP is accrued, on and after
January 1, 2001, in whole or in part, under the Cash Balance Formula (as
defined under the terms of the ERP).

 

2.7.                              “Code” means the Internal Revenue Code of 1986, as
amended.

 

2.8.                              “Committee” means the Compensation Committee of the
Board of Directors of the Company.

 

2.9.                              “Company” means Sauer-Danfoss Inc. and any successor
thereto.

 

2.10.                        “Compensation” means either:

 

(a)                                  “Compensation” as that term is specifically
defined under the ESP, or

 

(b)                                 “Pay” as that term is specifically defined
under the ERP,

 

as the case may be,
depending on the context in which it is being used under this Plan.

 

2.11.                        “Eligible Employee” means a key employee of the Company or an
Affiliate who (i) is a Cash Balance Employee, and (ii) during a Plan Year is
expected to have Compensation from the Company or any Affiliate in excess of
the Code Section 401(a)(17) limit for such Plan Year.

 

2.12.                        “ERP” means the Sauer-Danfoss Employees’
Retirement Plan.

 

2.13.                        “ESP” means the Sauer-Danfoss Employees’ Savings
Plan.

 

2.14.                        “Investment Fund or Funds” means the investment funds designated by the
Administrator as the basis for determining the hypothetical investment return
to be credited in accordance with Article V to Participants’ Supplemental
ESP Accounts.  The Investment Funds shall
mirror the available investment funds under the ESP.

 

2.15.                        “Participant” means an Eligible Employee who has become a
participant in the Plan in accordance with Section 3.1.

 

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2.16.                        “Plan” means the Sauer-Danfoss Inc. Supplemental
Executive Savings & Retirement Plan, as set forth herein and as amended
from time to time.

 

2.17.                        “Plan Year” means each calendar year commencing on and
after January 1, 2004.

 

2.18.                        “Supplemental Benefit
Amounts” means the amounts
accrued on behalf of the Participant under the Plan, if any, and represents the
sum of the Participant’s Supplemental ERP Amounts and Supplemental ESP Amounts
credited to his or her Account in accordance with Article IV.

 

2.19.                        “Supplemental ERP Account” means the bookkeeping account established
for purposes of accounting for the amount of the Participant’s Supplemental ERP
Amounts determined and credited in accordance with Article IV each year,
if any, as adjusted periodically to reflect the interest earnings on such
amounts in accordance with Article V.

 

2.20.                        “Supplemental ERP Amount” means that portion of the Supplemental
Benefit Amounts determined under Section 4.1(a) of the Plan specifically
pertaining to the ERP and credited to the Participant’s Supplemental ERP
Account in accordance with Article IV.

 

2.21.                        “Supplemental ESP Account” means the bookkeeping account established
for purposes of accounting for the amount of the Participant’s Supplemental ESP
Amounts determined and credited in accordance with Article IV each year,
if any, as adjusted periodically to reflect the hypothetical investment return
or hypothetical investment loss on such amounts in accordance with
Article V.

 

2.22.                        “Supplemental ESP Amount” means that portion of the Supplemental
Benefit Amounts determined under Section 4.1(b) of the Plan specifically
pertaining to the ESP and credited to the Participant’s Supplemental ESP
Account in accordance with Article IV.

 

2.23.                        “Valuation Date” means a date on which the Investment Funds
are valued and the Participant’s Account is adjusted for any resulting gains or
losses.   The Administrator shall
determine the Valuation Date and such date shall be at least once every
calendar year.

 

III.                                 PARTICIPATION.

 

3.1.                              Participation. An Eligible Employee shall become a
Participant in the Plan when he or she has had credited to his or her Accounts,
by the Company, Supplemental Benefit Amounts in accordance with
Article IV.

 

3.2.                              ERISA Exemption.  It is
the intent of the Company that the Plan be exempt from Parts 2, 3 and 4 of
Subtitle B of Title I of the Employee Retirement Income

 

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Security Act of 1974, as
amended (“ERISA”), as an unfunded plan that is maintained by the Company
primarily for the purpose of providing deferred compensation for a select group
of management and highly compensated employees (the “ERISA Exemption”).  Notwithstanding anything to the contrary in
Section 3.1 or in any other provision of the Plan, the Administrator may,
in its sole discretion, exclude any one or more employees from eligibility to
participate or from participation in the Plan, exclude any Participant from
continued participation in the Plan, and take any further action (including the
immediate payment of the Participant’s entire interest under the Plan in a
lump-sum) it considers necessary or appropriate if the Administrator reasonably
determines in good faith that such exclusion or further action is necessary in
order for the Plan to qualify for, or to continue to qualify for, the ERISA
Exemption.

 

IV.                                SUPPLEMENTAL BENEFIT
AMOUNTS. 

 

4.1.                              Computation of Supplemental
Benefit Amounts.  An Eligible Employee shall be entitled to
Supplemental Benefit Amounts for each Plan Year that he or she is an Eligible
Employee.  Such Supplemental Benefit
Amount shall be equal to the sum of:

 

(a)                                  Supplemental ERP Amount:  the
excess, if any, of:

 

(i)                                     the benefit the Eligible Employee otherwise
would have been entitled to have credited to his or her Cash Balance Account
(as defined under the ERP) for his or her benefit under the ERP for a given
year if such benefit was calculated without regard to the following:

 

1.                                       Code Section 415, and

 

2.                                       Code Section 401(a)(17), over

 

(ii)                                  the benefit which the Eligible Employee is
entitled to have credited to his Cash Balance Account (as defined under the
ERP) for his or her benefit for such given year under the ERP, plus

 

(b)                                 Supplemental ESP Amount:  the
excess, if any, of:

 

(i)                                     the benefit the Eligible Employee otherwise
would have been entitled to have credited to his or her Employer Contribution
Account (as defined in the ESP), if any, and his or her Matching Contribution
Account (as defined under the ESP), if any, for a given year if such benefit(s)
was calculated without regard to the following:

 

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(1)                                  Code Section 415,

 

(2)                                  Code Section 401(a)(17),

 

(3)                                  Code Section 401(m)(2), and

 

(4)                                  Code Section 402(g); over

 

(ii)                                  the actual benefit which the Eligible
Employee is entitled to have credited to a separate account for his benefit for
such given year under the ESP with respect to such Employer Contributions and
Matching Contributions.

 

Notwithstanding the
foregoing, an Eligible Employee shall not be entitled to Supplemental Benefit
Amounts attributable to amounts that would have been credited to his Matching
Contribution Account for a Plan Year unless the Eligible Employee had elected
Participant Contributions (as defined in the ESP) for such Plan Year equal to
the lesser of four percent (4%) of Compensation or the limitation in effect
under Code Section 402(g) for such Plan Year.

 

4.2.                              Vesting.   A
Participant’s Supplemental Benefit Amounts calculated by the Company in
accordance with Sections 4.1 above shall vest in accordance with the same
vesting schedules that may exist, from time to time, in the ERP and the ESP, as
the case may be.

 

4.3.                              Special One Time Supplemental
Benefit Amounts For Certain Participants.  Certain Eligible Employees, but
for the January 1, 2004 effective date of this Plan, would have had
amounts credited to their Accounts as Supplemental Benefit Amounts for certain
years prior to 2004.  To reflect this
fact, special, one-time Supplemental ERP amounts and/or Supplemental ESP
amounts will be credited to the Accounts of certain Eligible Employees.  The eligibility for, timing and amount of
such special, one-time Supplemental Benefit amounts pursuant to this
Section 4.3 are to be determined solely at the discretion of the
Administrator.

 

4.4.                              Crediting of Supplemental
Benefit Amounts.  The Supplemental Benefit Amounts computed in
Section 4.1 above for each Plan Year shall be credited by the Company to
the Participant’s Accounts as soon as reasonably practicable after the close of
the Plan Year to which the Supplement Benefit Amounts relate.

 

V.                                    ACCOUNTS AND INVESTMENTS.

 

5.1.                              Valuation of Accounts.  The
Administrator shall establish a Supplemental ERP Account and a Supplemental ESP
Account for each Participant who has been credited with a Supplemental ERP
Amount or Supplemental ESP Amount,

 

5

 

respectively.  Such Accounts shall be credited with a
Participant’s Supplemental Benefit Amounts as set forth in Sections 4.4.  As of each Valuation Date, the Participant’s
Accounts shall be adjusted upward or downward to reflect:

 

(a)                                  the interest earnings or investment return to
be credited as of such Valuation Date pursuant to Section 5.3 below,

 

(b)                                 the amount of distributions, if any, to be
debited as of that Valuation Date under Article VI.

 

5.2.                              Earnings and Investments.

 

(a)                                  Supplemental Benefit
Relating to the ERP.  Supplemental ERP Accounts shall be credited
with interest annually.  Such interest
credit shall mirror the interest credit on Cash Balance Accounts (as defined by
the terms of the ERP) under the ERP.  For
each Plan Year, the amount credited to the Eligible Employee’s Supplemental ERP
Account shall be determined by multiplying the balance of such Supplemental ERP
Account on the first day of the Plan Year by the one-year Treasury bill rate in
effect as of the first business day of such Plan Year, as published in the Wall
Street Journal on such business day.

 

(b)                                 Supplemental Benefit
Relating to the ESP.  Each Participant generally may direct the
manner in which his or her Supplemental ESP Amounts, if any, shall be deemed
invested in and among the Investment Funds; provided, however, that each
investment election made by a Participant shall, notwithstanding anything to
the contrary in the Plan, be strictly subject to the consent of the
Administrator which, in its sole discretion, may elect to honor the
Participant’s request or have the Supplement ESP Account deemed invested in
another manner.  Such deemed investment
election shall be made in accordance with such procedures as the Administrator
shall establish and any such election shall be made in whole percentages.  The investment authority shall remain at all
times with the Administrator.  The
selection of Investment Funds by a Participant shall be for the sole purpose of
determining the rate of return to be credited to his or her Supplement ESP
Account and shall not be treated or interpreted in any manner whatsoever as a
requirement or direction to actually invest assets in any Investment Fund or
any other investment media.

 

5.3.                              Crediting of Interest and
Investment Return.

 

(a)                                  Supplemental ERP Account. As provided for in Section 5.2(a)
above, interest shall be credited, on the last day of each Plan Year, to the
Supplemental ERP Account of each Participant who had a Supplemental ERP Account
as of the first day of such Plan Year.  A
Participant’s Supplemental ERP Account shall continue to be credited with such

 

6

 

interest credits until the
date on which the Participant’s Accounts are paid out in accordance with
Article VI.

 

If the date on which the
Participant’s Accounts are paid occurs during the applicable Plan Year, the
interest credit shall be prorated on a monthly basis for that portion of the
Plan Year before such payment date.

 

(b)                                 Supplemental ESP Account.  Each
Participant’s Supplemental ESP Account shall be credited on each Valuation Date
with his or her allocable share of investment gains or losses of each
Investment Fund in which his or her Supplemental ESP Amounts, if any, are
hypothetically invested.  The
Administrator shall adopt a protocol for allocating the deemed investment gains
and losses similar to that used in the ESP.

 

5.4.                              Changing Investment Fund
Options for the Supplemental ESP Account.  A
Participant may, as provided by the Administrator, make a new election with
respect to the hypothetical Investments Funds in which his or her Supplemental
ESP Amounts, if any, shall be deemed invested in the future.  Any such election shall be made in the form
specified by the Administrator.

 

VI.                                PAYMENT OF BENEFITS.

 

6.1.                              Distribution Upon
Termination of Employment.  If a Participant terminates employment with
the Company and/or an Affiliate for reasons other than death, the vested
portion of the Participant’s Accounts shall be paid in a lump sum payment as
soon as practicable following the Valuation Date coincident with or next
following the date of such Participant’s termination of employment.

 

6.2.                              Distribution of
Insignificant Account Balances.  The vested portion of the
Participant’s Accounts may be paid out in a lump sum payment at any time prior
to termination of employment, if the Administrator determines, in its sole
discretion, that the balances of such accounts are insignificant.

 

6.3.                              Distribution Upon Death.  If a
Participant dies prior to commencement of payment of his or her Accounts, the
Participant’s Beneficiary shall receive a survivor benefit in an amount equal
to the vested portion of the Participant’s Accounts to be paid in a single lump
sum as soon as practicable following the Valuation Date coincident with or next
following the date of the Participant’s death. 
Notwithstanding the foregoing, a Beneficiary may request that the
Administrator approve an alternate form of payment of survivor benefits under
this Section 6.3, which request may be granted in the sole discretion of
the Administrator.

 

6.4.                              Form of Payment and
Withholding.  All payments under the Plan shall be made in
cash and are subject to the withholding of all applicable federal, state and
local and foreign governmental taxes.

 

7

 

VII.                            ADMINISTRATION.

 

7.1.                              Authority of Administrator.  The
Administrator shall have full power and authority to carry out the terms of the
Plan.  The Administrator may establish
such rules and regulations as it may consider necessary or desirable for the
effective and efficient administration of the Plan.  The Administrator’s interpretation,
construction and administration of the Plan, including any adjustment of the
amount or recipient of the payments to be made, shall be binding and conclusive
on all persons for all purposes.  None of
the Company, the Administrator, the Board or the Committee, or any employee,
director or member thereof, shall be liable to any person for any action taken
or omitted in connection with the interpretation, construction and
administration of the Plan.

 

7.2.                              Participant’s Duty to
Furnish Information.  Each Participant shall furnish to the
Administrator such information as it may from time to time request for the
purpose of the proper administration of this Plan.

 

7.3.                              Interested Employee of
Administrator.  If any employee serving as Administrator is
also a Participant in the Plan, he or she may not decide or determine any
matter or question concerning his or her benefits unless such decision or
determination could be made by him or her under the Plan if he or she were not
the Administrator.

 

7.4.                              Indemnification.  No person (including any present or former employee of the
Administrator, and any present or former officer or employee of the Company or
any Affiliate) shall be personally liable for any act done or omitted to be
done in good faith in the administration of the Plan.  Each present or former officer or employee of
the Company or any Affiliate to whom the Administrator has delegated any
portion of its responsibilities under the Plan and each present or former employee
serving as Administrator shall be indemnified and saved harmless by the Company
(to the extent not indemnified or saved harmless under any liability insurance
or other indemnification arrangement with respect to the Plan) from and against
any an all claims of liability to which they are subjected by reason of any act
done or omitted to be done in good faith in connection with the administration
of the Plan, including all expenses reasonably incurred in their defense if the
Company fails to provide such defense. 
No individual serving as the Administrator shall be liable for any act
or omission of any other employee serving as Administrator, nor for any act or
omission upon his or her own part, excepting his or her own willful misconduct
or gross neglect.

 

7.5.                              Claims Procedure.

 

(a)                                  Claims for benefits under the Plan shall be
made in writing to the Administrator or its duly authorized delegate.  If the Administrator or such delegate wholly
or partially denies a claim for benefits, the Administrator or, if applicable,
its delegate shall, within a reasonable period of time, but

 

8

 

no later than ninety (90)
days after receipt of the claim, notify the claimant in writing or
electronically of the adverse benefit determination.  Notice of an adverse benefit determination
shall be written in a manner calculated to be understood by the claimant and
shall contain:

 

(i)                                     the specific reason or reasons for the
adverse benefit determination,

 

(ii)                                  a specific reference to the pertinent Plan
provisions upon which the adverse benefit determination is based,

 

(iii)                               a description of any additional material or
information necessary for the claimant to perfect the claim, together with an
explanation of why such material or information is necessary, and

 

(iv)                              an explanation of the Plan’s review procedure
and the time limits applicable to such procedure including a statement of the claimant’s right to bring a
civil action under section 502(a) of ERISA following an adverse benefit determination.

 

If the Administrator or its
delegate determines that an extension of time is necessary for processing the
claim, the Administrator or its delegate shall notify the claimant in writing
of such extension, the special circumstances requiring the extension and the
date by which the Administrator expects to render the benefit
determination.  In no event shall the
extension exceed a period of ninety (90) days from the end of the initial
ninety (90) day period.  If notice of the
denial of a claim is not furnished in accordance with this paragraph (a) within
ninety (90) days after the Administrator or its duly authorized delegate
receives it (or within one hundred and eighty (180) days after such receipt if
the Administrator or its delegate determines an extension is necessary), the
claim shall be deemed denied and the claimant shall be permitted to proceed to
the review stage described in paragraph (b) below.

 

(b)                                 Within sixty (60) days after the claimant
receives the written or electronic notice of an adverse benefit determination,
or the date the claim is deemed denied pursuant to paragraph (a) above, or such
later time as shall be deemed reasonable in the sole discretion of the
Administrator taking into account the nature of the benefit subject to the
claim and other attendant circumstances, the claimant may file a written
request with the Administrator that it conduct a full and fair review of the
adverse benefit determination, including the holding of a hearing, if deemed
necessary by the Administrator.  In
connection with the claimant’s appeal of the adverse benefit determination, the
claimant may review pertinent documents and may submit issues and comments in
writing.  The Administrator shall render
a decision on the appeal promptly, but not later than sixty (60) days

 

9

 

after the receipt of the
claimant’s request for review, unless special circumstances (such as the need
to hold a hearing, if necessary) require an extension of time for processing,
in which case the sixty (60) day period may be extended to one hundred and
twenty (120) days.  The Administrator
shall notify the claimant in writing of any such extension, the special
circumstances requiring the extension, and the date by which the Administrator
expects to render the determination on review. 
The claimant shall be notified of the Administrator’s decision in
writing or electronically.  In the case
of an adverse determination, such notice shall:

 

(i)                                     include specific reasons for the adverse
determination,

 

(ii)                                  be written in a manner calculated to be
understood by the claimant,

 

(iii)                               contain specific references to the pertinent
Plan provisions upon which the benefit determination is based,

 

(iv)                              contain a statement that the claimant is entitled
to receive upon request and free of charge, reasonable access to, and copies
of, all documents, records, and other information relevant to the claimant’s
claim for benefits, and

 

(v)                                 contain a statement of the claimant’s right
to bring an action under section 502(a) of ERISA.

 

VIII.                        AMENDMENT AND TERMINATION.

 

The Committee may amend or
terminate the Plan at any time; provided, however, that no such amendment or
termination shall have a material adverse effect on any Participant’s rights
under the Plan accrued as of the date of such amendment or termination without
such Participant’s written consent.  Upon
termination of the Plan, the Committee may make a lump-sum payment of all
benefits for all Participants at substantially the same time.

 

IX.                                MISCELLANEOUS.

 

9.1.                              No Implied Rights; Rights on
Termination of Service.  Neither the establishment of the Plan nor any
amendment thereof shall be construed as giving any Participant, Beneficiary or
any other person, individually or as a employee of a group, any legal or
equitable right unless such right shall be specifically provided for in the
Plan or conferred by specific action of the Committee or the Administrator in
accordance with the terms and provisions of the Plan.  Except as expressly provided in this Plan,
neither the Company nor any of its Affiliates shall be required or be liable to
make any payment under the Plan.

 

10

 

9.2.                              No Employment Rights. 
Nothing herein shall constitute a contract of employment or of
continuing service or in any manner obligate the Company or any Affiliate to
continue the services of any Participant, or obligate any Participant to
continue in the service of the Company or Affiliate, or as a limitation of the
right of the Company or Affiliates to discharge any of their employees, with or
without cause.

 

9.3.                              Unfunded Plan. 
Nothing herein contained shall require or be deemed to require the
Company to segregate, earmark or otherwise set aside any funds or other assets
to provide for any payments made hereunder. Benefits hereunder shall be paid
from assets which shall continue, for all purposes, to be part of the general,
unrestricted assets of the Company and its Affiliates.  The obligations of the Company hereunder
shall be an unfunded and unsecured promise to pay money in the future.  However, the Company may establish one or
more trusts to assist in meeting its obligations under the Plan, the assets of
which shall be subject to the claims of the Company’s general creditors.  No current or former Participant, Beneficiary
or other person, individually or as a employee of a group, shall have any
right, title or interest in any account, fund, grantor trust, or any asset that
may be acquired by the Company in respect of its obligations under the Plan
(other than as a general creditor of the Company with an unsecured claim
against its general assets).

 

9.4.                              Nontransferability.  Prior to payment thereof, no benefit under the Plan shall be assignable
or subject to any manner of alienation, sale, transfer, claims of creditors,
pledge, attachment or encumbrances of any kind.

 

9.5.                              Successors and Assigns.  The
rights, privileges, benefits and obligations under the Plan are intended to be,
and shall be treated as legal obligations of and binding upon the Company, its
successors and assigns, including successors by merger, consolidation,
reorganization or otherwise.

 

9.6.                              Payment with Respect to
Incapacitated Persons.  Any amounts payable hereunder to any person
who is a minor or under a legal disability, as determined under applicable
state law, or who is unable to manage properly his or her financial affairs may
be paid (a) to the legal representative of such person, (b) to anyone acting as
the person’s agent under a durable power of attorney, (c) to an adult relative
or friend of the person or (d) to anyone with whom the person is residing.  Any payment of a benefit made in accordance
with the provisions of this section shall be a complete discharge of any
liability for the making of such payment under the Plan.  The Administrator’s reliance on the written
power of attorney or other instrument of agency governing a relationship
between the person entitled to benefit the person to whom the Administrator
directs payment of the benefit shall be fully protected at least to the same
extent as though the Administrator had dealt directly with the person entitled
to the benefit as a fully competent person. 
In the absence of actual knowledge to the contrary, the Administrator
may assume that the instrument of agency was validly executed,

 

11

 

that the person was
competent at the time of execution and that at the time of reliance, the agency
had not been terminated or amended.

 

9.7.                              Arbitration.  Any
controversy or claim arising out of or relating to this Plan, or breach hereof,
shall be settled by arbitration in the City of Ames in accordance with the laws
of the State of Iowa with an arbitrator appointed by the Company.  The arbitration shall be conducted in
accordance with the rules of the American Arbitration Association, except with
respect to the selection of an arbitrator. 
The arbitrator’s determination shall be final and binding upon all
parties and judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction thereof.

 

9.8.                              Gender and Number. 
Except when otherwise indicated by the context, words in the masculine
gender shall include the feminine and neuter genders, the plural shall include
the singular, and the singular shall include the plural.

 

9.9.                              Headings.  The
headings of the various Articles and Sections in the Plan are solely for
convenience and shall not be relied upon in construing any provisions
hereof.  Any reference to a Section shall
refer to a Section of the Plan unless specified otherwise.

 

9.10.                        Severability. 
Whenever possible, each provision of the Plan shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of the Plan is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision or any
other jurisdiction, and the Plan shall be reformed, construed and enforced in
such jurisdiction so as to best give effect to the intent of the Company under
the Plan.

 

9.11.                        Effect on Other Employee
Benefit Plans.  Any benefit paid or payable under this Plan
shall not be included in a Participant’s compensation for purposes of computing
benefits under any employee benefit plan maintained or contributed by the
Company or any Affiliate except as may otherwise be required under the specific
terms of such employee benefit plan.

 

9.12.                        Non-U.S. Participants.  With
respect to any Affiliate which employs Participants who reside outside the
United States, and notwithstanding anything herein to the contrary, the
Administrator may, in its sole discretion, amend the terms of the Plan in order
to conform such terms with the requirements of local law or to meet the
objectives of the Plan, and may, where appropriate, establish one or more
sub-plans to reflect such amended provisions.

 

9.13.                        Applicable Law.  This
Plan is established under and will be construed according to the laws of the
State of Iowa, to the extent not preempted by the laws of the United States.

 

12

 

*                                         *                                         *

 

IN WITNESS
WHEREOF, the
undersigned has caused this Plan to be executed this  18th day
of  May, 2004.

 

 

	
   

  	
  SAUER-DANFOSS
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald C. Hanson

  
	
   

  	
  Its:

  	
  VP Human Resources

  

 

13EXHIBIT
10.1

 

ADDENDUM IX

TO

SPRINT PCS
MANAGEMENT AGREEMENT AND

SPRINT PCS
SERVICES AGREEMENT

 

Amending
these agreements further

 

Dated
July 31, 2004

 

 

Manager:                                           UbiquiTel
Operating Company

 

Service Area BTAs:

 

Anderson, IN (partial)  #15

Bakersfield, CA  #28

Bloomington-Bedford, IN  #47

Boise-Nampa, ID  #50

Bowling Green-Glasgow, KY  #52

Chico-Oroville, CA  #79

Cincinnati, OH (partial)  #81

Clarksville, TN-Hopkinsville, KY  #83

Columbus, IN  #93

Eureka, CA  #134

Evansville, IN  #135

Fresno, CA  #157

Idaho Falls, ID  #202

Indianapolis, IN (partial)  #204

Las Vegas, NV (partial)  #245

Lewiston-Moscow, ID  #250

Logan, UT  #258

Louisville, KY (partial)  #263

Madisonville, KY  #273

Merced, CA  #291

Modesto, CA  #303

Owensboro, KY  #338

Paducah-Murray-Mayfield, KY  #339

Pocatello, ID  #353

Provo-Orem, UT (partial)  #365

Redding, CA  #371

Reno, NV  #372

Richmond, IN  #373

Sacramento, CA (partial)  #389

St. George, UT  #392

 

 

Salt Lake City-Ogden, UT (partial)  #399

Spokane, WA  #425

Stockton, CA  #434

Terre Haute, IN (partial)  #442

Twin Falls, ID  #451

Vincennes-Washington, IN  #457

Visalia-Porterville-Hanford, CA  #458

Yuba City-Marysville, CA (partial)  #485

 

 

The parties to this Addendum IX (this “Addendum”) executed the Sprint PCS Management Agreement, the
Sprint PCS Services Agreement, the related Trademark License Agreement and the
Schedule of Definitions on October 15, 1998.

 

The Management Agreement, Services Agreement,
Trademark License Agreements and the Schedule of Definitions were amended
by:

 

(1)                                  Addendum
I dated as of October 15, 1998,

(2)                                  Addendum
II dated as of December 28, 1999,

(3)                                  Addendum
III dated as of February 14, 2000,

(4)                                  Addendum
IV dated as of April 5, 2000,

(5)                                  Addendum
V dated as of June 6, 2000,

(6)                                  Addendum
VI dated as of February 21, 2001,

(7)                                  Addendum
VII dated as of July 31, 2003, and

(8)                                  Addendum
VIII dated as of November 7, 2003.

 

The purposes of this Addendum IX are to amend
the Services Agreement and the Schedule of Definitions.

 

The terms and provisions of this Addendum
control over any conflicting terms and provisions contained in the Management
Agreement, the Services Agreement, the Trademark License Agreements and the
Schedule of Definitions.  The
Management Agreement, the Services Agreement, the Trademark License Agreements,
the Schedule of Definitions and all prior addenda continue in full force
and effect, except for express modifications made in this Addendum.  This Addendum does not change the effective
date of any prior amendment made to the Management Agreement, the Services
Agreement, the Trademark License Agreements or the Schedule of Definitions
through previously executed addenda.

 

Capitalized terms used and not otherwise
defined in this Addendum have the meaning ascribed to them in the
Schedule of Definitions or in prior addenda.  Section and Exhibit references are to
sections and Exhibits of the Services Agreement unless otherwise noted.

 

2

 

The
parties are executing this Addendum as of the date noted above, but this
Addendum will be deemed to have been effective on March 1, 2004 (the “Effective Date”).

 

On the Effective Date, the  Services Agreement and the
Schedule of Definitions are amended as follows:

 

A.                                    New
Amendments.

 

Services Agreement

 

1.                                      Changes
to Article 2  [Addm VIII, §32;
revised by this Addendum]. 
Section 32 of Addendum VIII is deleted.  Article 2 of the Services Agreement is
amended and restated in its entirety to read as follows:

 

2.                                      SERVICES

 

2.1                               Services.

 

2.1.1                     Services.    Subject to the terms of this agreement,
through December 31, 2006, Manager will obtain the services set forth on Schedule 2.1.1
attached to this agreement (“Services”)
from Sprint Spectrum in accordance with this section 2.1, and Sprint
Spectrum will provide all or none of the Services.    For purposes of clarification, as of the
Effective Date of Addendum IX through December 31, 2006, Sprint Spectrum
is providing all of the Services to Manager and Sprint Spectrum will not
provide individual Services.

 

The fees
charged for the Services and the process for setting the fees charged for the
Services are set forth in section 3.2. 
Sprint Spectrum may designate additional Services upon at least 60 days’
prior written notice to Manager by providing an amended Schedule 2.1.1
to Manager in accordance with the provisions of section 9.1.

 

Without
Manager’s prior written consent, neither Sprint Spectrum nor any of its Related
Parties will require Manager to pay for:

 

(A)                              any
of those additional CCPU Services or CPGA Services to the extent that they are
the same as or functionally equivalent to any service or benefit that Manager
currently receives from Sprint Spectrum or its Related Parties or Sprint PCS or
its Related Parties but for which Manager does not pay a separate fee
immediately after the Effective Date, or

 

(B)                                any other additional CCPU Services or CPGA Services through
December 31, 2006. After that date the fee for those

 

3

 

other
additional Services will be included in the fees for CCPU Services and CPGA
Services.

 

2.1.2                     Discontinuance
of Services.    If Sprint
Spectrum determines to no longer offer a Service, then Sprint Spectrum must

 

(i)                                     notify Manager in writing a reasonable time before
discontinuing the Service, except Sprint will notify Manager at least 9 months
before Sprint plans to discontinue a significant Service (e.g., billing,
collection and customer care).

 

(ii)                                  discontinue the Service to all Other Managers.

 

If Manager determines within 90 days after
receipt of notice of discontinuance that it wants to continue to receive the
Service, Sprint Spectrum will use commercially reasonable efforts to:

 

(a)                                  help
Manager provide the Service itself or find another vendor to provide the
Service, and

 

(b)                                 facilitate Manager’s transition to the new Service provider.

 

The fees
charged by Sprint Spectrum for the CCPU Services and CPGA Services will be
reduced by any fees payable by Manager to a vendor or new Service provider in
respect of discontinued CCPU Services and CPGA Services, if (x) Sprint Spectrum
procures such CCPU Services or CPGA Services from a vendor or a new Service
provider and bills those items as Settled-Separately Manager Expenses (as
defined in subsection 3.2.5 of this agreement), or (y) Manager procures
such CCPU Services or CPGA Services from a vendor or a new provider of
Services, or (z) Manager self-provisions the Service.  No adjustment to the fees will be made if
Sprint Spectrum discontinues a CCPU Service or CPGA Service and Sprint Spectrum
does not provide the CCPU Service or CPGA Service to end users.

 

2.1.3                     Performance
of Services.    Sprint Spectrum
may select the method, location and means of providing the Services.  If Sprint Spectrum wishes to use Manager’s
facilities to provide the Services, Sprint Spectrum must obtain Manager’s prior
written consent.

 

2.2                               Third
Party Vendors.  Some of the Services
might be provided by third party vendors under arrangements between Sprint
Spectrum and the third party vendors.  In
some instances, Manager may receive Services from a third party vendor under
the same terms and

 

4

 

conditions
that Sprint Spectrum receives those services. 
In other instances, Manager may receive Services under the terms and
conditions set forth in an agreement between Manager and the third party
vendor.

 

2.                                      Changes
to Article 3 [Addm VIII, §33; revised by this Addendum].  Section 33 of Addendum VIII is
deleted.  Article 3 of the Services
Agreement is amended and restated in its entirety to read as follows:

 

3.                                      FEES
FOR SERVICES

 

3.1                               Services.  Manager will pay Sprint Spectrum a fee
for the Services provided by or on behalf of Sprint Spectrum now or in the
future, subject to Section 2.1.1. 
Manager may not obtain these Services from other sources, except as
provided in this agreement.

 

If an
accounting classification change has the effect of moving a Service from a CCPU
Service or CPGA Service to a Settled-Separately Manager Expense, the fees for
the CCPU Services or CPGA Services, as applicable, charged by Sprint Spectrum
will be reduced by the fees payable by Manager for the new Settled-Separately
Manager Expense.

 

3.2                               Fees
for Services.

 

3.2.1  Initial Pricing Period.  The fees Manager will pay Sprint Spectrum for
the CCPU Services and CPGA Services provided to Manager by or on behalf of
Sprint Spectrum each month from the Effective Date of Addendum IX until
December 31, 2006 (“Initial Pricing Period”),
will be:

 

(a)  for the CCPU
Services: an amount equal to $7.63 multiplied by the Number of Customers in Manager’s Service Area, and

 

(b)  for the CPGA Services: an amount equal to the
Gross Customer Additions in Manager’s Service Area multiplied by the lesser of
(1) $23.00 or (2) an amount equal to the product of (i) Sprint’s long-term
forecasted CPGA and (ii) the percentage used to calculate the initial fee under
section 3.2.1(b), as amended by Addendum VIII, as of the Effective Date of
that Addendum VIII.  The parties agree
that the calculation described in (2) results in an amount equal to $19.00.

 

The fees will
be paid as set forth in section 10 of the Management Agreement.

 

3.2.2  Pricing Process.   The parties will reset the amounts under
subsections 3.2.1(a) and (b) after the Initial Pricing Period ends.  Each subsequent pricing period will last three
years (if Manager continues

 

5

 

to
use Sprint Spectrum or a Related Party to provide these Services) with, for
example, the second pricing period beginning on January 1, 2007 and ending
on December 31, 2009.

 

The process
for resetting the amounts is as follows:

 

(a)  Sprint Spectrum will give Manager proposed
CCPU and CPGA amounts by  October 31
of the calendar year before the calendar year in which the then current pricing
period ends (e.g. if the pricing period ends on December 31, 2006 then the
amounts have to be presented by October 31, 2005).  The proposed amounts will be based on the
amount necessary to recover Sprint PCS’ reasonable costs for providing the CCPU
Services and CPGA Services to Manager and the Other Managers.  Manager’s representative and the Sprint PCS
representative will begin discussions regarding the proposed CCPU and CPGA
amounts within 20 days after Manager receives the proposed CCPU and CPGA amounts
from Sprint Spectrum.

 

(b)  The fee Manager will pay Sprint Spectrum for
the CCPU Services provided to Manager by or on behalf of Sprint Spectrum each
month beginning on January 1, 2007 until December 31, 2008 under the
pricing process described in this section 3.2.2 will not exceed $8.50 per
subscriber multiplied by the Number of Customers in Manager’s Service Area.

 

(c)  If the parties do not agree on new CCPU and
CPGA amounts within 30 days after the discussions begin, then Manager may
escalate the discussion to the Sprint PCS Chief Financial Officer or Sprint
Spectrum may escalate the discussion to Manager’s Chief Executive Officer or
Chief Financial Officer.

 

(d)  If the parties cannot agree on the new CCPU
and CPGA amounts through the escalation process within 20 days after the escalation
process begins, then Manager may either

 

(i)                                     submit
the determination of the CCPU and CPGA amounts to binding arbitration under
section 14.2 of this agreement, excluding the escalation process set forth
in section 14.1 and continue obtaining all of the CCPU Services and CPGA
Services from Sprint Spectrum at the CCPU and CPGA amounts the arbitrator
determines, or

 

(ii)                                  procure from a vendor other than Sprint Spectrum or
self-provision all of the Services.

 

By
December 1, 2006, the parties will agree on a service level agreement for
customer care services and collection services (“Customer-Related
Services”)

 

6

 

that
will apply to Customer-Related Services delivered by Sprint Spectrum starting
on January 1, 2007.  If the parties
cannot agree on a service level agreement by December 1, 2006, either
party may submit a proposed service level agreement to binding arbitration
under section 14.2 of the Management Agreement, excluding the escalation
process set forth in section 14.1. 
If the arbitration concludes after January 1, 2007 the service
level agreement, as agreed upon through the arbitration process, will be
effective as of January 1, 2007.  
The agreement will set forth 5 metrics for Customer-Related Services and will
provide that Sprint Spectrum will use commercially reasonable efforts to meet
the industry averages for those metrics as in effect on December 1,
2006.  The 5 metrics are:

 

(a)                      Service Grade Rate defined as
percentage of calls answered in 60 seconds or less after the customer enters
the call queue.

 

(b)                     Average Hold Time defined as
average time a customer waits to talk to a customer service representative once
the customer enters the call queue.

 

(c)                      Abandoned Call Rate defined as
the percentage of calls that disconnect prior to talking to a customer service
representative after the customer enters the call queue.

 

(d)                     Net Write-Offs Rate defined as
monthly write-offs of accounts receivable, net of customer deposits, divided by
monthly subscriber revenue.

 

(e)                      Past-Due Accounts Receivable
Aging Rates defined as percentage of accounts receivable greater than 60 days
from due date.

 

The service level agreement will provide that Sprint Spectrum will give
Manager a quarterly report on the above metrics.  Beginning in 2008, Manager will have the
right to opt out of Sprint Spectrum providing the Customer Related Services if
the average of the metrics reflected in the four quarterly reports for the
prior calendar year indicate that Sprint Spectrum is not in compliance with any
2 of the 5 metrics.  To exercise the
opt-out right, Manager must give its opt-out notice to Sprint Spectrum during
the first quarter of any calendar year that Manager has an opt-out right.   Upon receipt of an opt-out notice, Manager
and Sprint Spectrum will use commercially reasonable efforts to transition the
Customer-Related Services to Manager or a third party vendor within 9 months
after the opt-out notice date.  Upon the
parties’ completion of the transition, the parties will agree to an adjustment
to the CCPU Service Fee being charged by Sprint Spectrum to Manager.  If the parties cannot agree to an adjustment,
Manager has the right to submit the determination to binding arbitration under
section 14.2 of the Management Agreement, excluding the

 

7

 

escalation process set forth in
section 14.1, and continue obtaining all the CPGA Services and remaining
CCPU services from Sprint Spectrum. 
Manager will reimburse Sprint Spectrum for transition and continuing
operation costs in accordance with Section 3.2.4.

 

Manager’s
opt-out right described above is its sole remedy if Sprint Spectrum is not in
compliance with the metrics; Sprint Spectrum’s non-compliance with the metrics
does not constitute a breach of this agreement or any other agreement between
the parties.

 

Manager has
the right to propose to Sprint Spectrum that Manager self-provision or procure
from a vendor some, but not all, of the Services.  Sprint Spectrum will discuss the proposal
with Manager, but Manager can only self-provision or
procure from a vendor some of the Services if Sprint Spectrum agrees.

 

Manager will
begin paying Sprint Spectrum under the CCPU and CPGA amounts that Sprint
Spectrum presents for discussion at the beginning of the new pricing period
until the date on which the parties agree or until the arbitrator determines
the new CCPU and CPGA amounts, whichever occurs first.  Within 30 days after the amounts are determined
(either by agreement or by arbitration), Sprint PCS will recalculate the fees
from the beginning of the new pricing period and give notice to Manager of what
the fees are and the amount of any adjusting payments required.  If Sprint PCS owes Manager a refund of fees
already paid, Sprint PCS may pay the amount to Manager or Sprint PCS, in its
sole discretion, may credit the amount of the refund against any amounts
Manager then owes to Sprint PCS.  If
Sprint PCS chooses to pay the refund, it will make the payment at the time it
sends the notice to Manager; If Sprint PCS chooses to credit the refund, it
will in the notice indicate the amounts owing to which the credit will be
applied.  If Manager owes Sprint PCS
additional fees Manager will pay those fees to Sprint PCS within 10 days after
receipt of the notice.

 

3.2.3  Sprint Spectrum First Right of Refusal.  Manager must give Sprint Spectrum written
notice of Manager’s decision to procure the Services from a third party vendor
the Services at least 120 days before the end of the Initial Pricing Period or
any subsequent three-year pricing period and provide the third party vendor
terms to Sprint Spectrum.  Sprint
Spectrum will have 30 days from the date it receives the third party vendor’s
terms to decide if it will provide those Services to Manager under those terms.

 

Manager must
agree to receive the Services from Sprint Spectrum if Sprint Spectrum gives
notice to Manager that it will provide the Services to Manager on the third
party vendor terms.  If Sprint Spectrum
does not exercise its first right of refusal, Manager must sign the agreement
with the third party vendor on the same terms and conditions as

 

8

 

presented
to Sprint Spectrum within 10 Business Days after Sprint Spectrum notifies Manager
of its decision not to exercise the first right of refusal or the expiration of
the 30-day period, whichever occurs first. 
The procedure set forth in this section 3.2.3 will begin again if
Manager does not sign the agreement with the third party vendor as required in
the preceding sentence.

 

3.2.4  Transition and Continuing Operating Costs.  Sprint Spectrum will cooperate with Manager
and work diligently and in good faith to implement the transition to another
service provider (including Manager, if applicable), in a reasonably efficient
and expeditious manner.

 

Manager will
pay for all reasonable out-of-pocket costs that Sprint Spectrum and its Related
Parties actually incur to (i) transfer any Service(s) provided to Manager to a
third party vendor or to enable Manager to self-provide any Service(s), and
(ii) operate and maintain systems, processes, licenses and equipment to support
those Services.  Sprint Spectrum will
bill Manager monthly for these costs.

 

3.2.5    Settled-Separately
Manager Expenses.    Manager will pay to or reimburse Sprint
Spectrum for any amounts that Sprint Spectrum or its Related Parties pays for
Settled-Separately Manager Expenses.  “Settled-Separately  Manager Expenses”
means those items the parties choose to settle separately between themselves
(e.g. accessory margins, reciprocal retail store cost recovery) that are listed
in sections C and D of Schedule 2.1.1.

 

Sprint
Spectrum will give Manager at least 60 days’ prior written notice by providing
an amended Schedule 2.1.1 to Manager in accordance with the
provisions of section 9.1 of any additional Services added to sections C
and D of Schedule 2.1.1, but no additional service may be added to
the extent it is the same as, or functionally equivalent to, either:

 

(a)                                  any
service that Sprint Spectrum or any of its Related Parties currently provides
to Manager as a CCPU Service or a CPGA Service (unless the fees payable by
Manager to Sprint Spectrum hereunder are correspondingly reduced) or

 

(b)                                 any
service or benefit that Manager currently receives from Sprint Spectrum or its
Related Parties but for which Manager does not pay a separate fee before the
Effective Date.

 

For each
Settled-Separately Manager Expense, Sprint Spectrum will provide sufficient
detail to enable Manager to determine how the expense was calculated, including
the unit of measurement (e.g., per
subscriber per month or per call) and the record of the occurrences

 

9

 

generating
the expense (e.g., the number of calls attributable
to the expense).  If an expense is not
reasonably subject to occurrence level detail, Sprint Spectrum will provide
reasonable detail on the process used to calculate the fee and the process must
be reasonable.  A detail or process is
reasonable if it is substantially in the form as is customarily used in the
wireless industry.  The
Settled-Separately Manager Expenses will be paid as set forth in
section 10 of the Management Agreement. 
Sprint Spectrum and its Related Parties may arrange for Manager to pay
any of the Settled-Separately Manager Expenses directly to the vendor after
giving Manager reasonable notice.

 

Unless Manager
specifically agrees otherwise, any Settled-Separately Manager Expense that
Sprint Spectrum or any of its Related Parties is entitled to charge or pass
through to Manager under this agreement or the Management Agreement will
reflect solely out-of-pocket costs and expenses that Sprint Spectrum or its
Related Parties actually incur, will be usage-based or directly related to revenue-generating
products and services, and will not include any allocation of Sprint PCS’ or
its Related Parties’ internal costs or expenses (including, but not limited to,
allocations of general and administrative expenses or allocations of employee
compensation or related expenses).  For
clarity, Sprint Spectrum’s or its Related Parties’ out-of-pocket costs for
handset and accessory inventory consist of actual inventory invoice costs less
any volume incentive rebates and price protection credits that Sprint Spectrum
or its Related Parties receive from a vendor.

 

3.3                               Late
Payments.    Any payment due under
this section 3 that Manager fails to pay to Sprint Spectrum in accordance
with this agreement will bear interest at the Default Rate beginning (and including)
the 6th day after the due date stated on the invoice until (and including) the
date on which the payment is made.

 

3.4                               Taxes.    Manager will pay or reimburse Sprint
Spectrum for any sales, use, gross receipts or similar tax, administrative fee,
telecommunications fee or surcharge for taxes or fees that a governmental
authority levies on the fees and charges that Manager pays to Sprint Spectrum
or a Related Party.

 

 

Schedule of
Definitions

 

3.                                      Deleted
Definitions [NEW].  The
definitions of “Sprint PCS CCPU” and “Sprint PCS CPGA” are deleted.

 

10

 

C.                                    Other
Provisions.

 

1.                                       Manager and Sprint PCS’ Representations.    Manager and Sprint PCS each represents and
warrants that its respective execution, delivery and performance of its
obligations described in this Addendum have been duly authorized by proper
action of its governing body and do not and will not violate any material
agreements to which it is a party.  Each
of Manager and Sprint PCS also represents and warrants that there are no legal
or other claims, actions, counterclaims, proceedings or suits, at law or in
arbitration or equity, pending or, to its knowledge, threatened against it, its
Related Parties, officers or directors that question or may affect the validity
of this Addendum, the execution and performance of the transactions
contemplated by this Addendum or that party’s right or obligation to consummate
the transactions contemplated by this Addendum.

 

2.                                       Reaffirmation of Sprint Agreements and Schedules.    Each of the undersigned reaffirms in their
entirety the Management Agreement, the Services Agreement, the Trademark
License Agreements and the Schedule of Definitions, together with their
respective rights and obligations under those agreements and schedules.

 

3.                                       Counterparts.    This
Addendum may be executed in one or more counterparts, including facsimile
counterparts, and each counterpart will have the same force and effect as an
original instrument as if the parties to the aggregate counterparts had signed
the same instrument.

 

[The remainder of this page is
left blank intentionally.]

 

11

 

The parties have caused this Addendum IX to
be executed as of the date first above written.

 

	
   

  	
  SPRINT SPECTRUM L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WIRELESSCO, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPRINT TELEPHONY PCS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPRINT PCS LICENSE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPRINT COMMUNICATIONS

  COMPANY L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Thomas E. Murphy

  
	
   

  	
   

  	
  Senior Vice President –

  Communications and Brand

  Management

  
	
   

  	
   

  	
   

  
	
   

  	
  UBIQUITEL OPERATING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Dean E. Russell

  
	
   

  	
   

  	
  Chief Operating Officer

  
					

 

12

 

Schedule 2.1.1

 

-SECTION A-

 

Presently Offered CCPU Services

 

3G Fees

A/P Backhaul/Facility Disputes

Affiliate Utilities

ATM Soft Hand Off

Bank Fees

BI Performance Services – Initiation

BI Performance Services – Maintenance

Bid Cost

Billing

Check Free

Clarify Maintenance Fee

CO Usage

Collection Agency Fees

Conferences

Costs associated with rollout of new products and services

Credit Card Processing/Fees

Customer Care

Customer Solutions – Mature Life

Directory Assistance

DS3

E - Commerce PT

Enhanced Voicemail

Entrance Facility Expenses (Includes Terminating/Trunking Charge)

Ford Revenue

Ford Telematics

Gift Card Payable

Gift Card Receivable

Hal Riney Ad Kit

High Speed Remote Access Server

ICS Clearing House Costs (Includes Illuminet, Roaming Clearing House,
and TSI)

IMT Charges

Interconnection

Inter-Machine Trunk

IT (Includes E-Commerce)

LD Verification

LIDB / CNAM

Local Loop,
COC, ACF, IXC, etc. (National Platform Expense – Local Loop Cost, Central
Office Connection (COC), access Coordination Fee (ACF), Co-Location Charges,
and Inter Exchange Carrier (IXC) Charges)

Lockbox 261

MCI Disconnect Adjusted

National Platform – COA

National Platform Disputes

National Platform (2G) (Includes Voice Activated Dialing)

 

13

 

	
  National Platform Component

  
	
  FCAPS (Fault, Configuration, Accounting,
  Performance, Security)

  
	
   

  	
  Capital Projects

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH 

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  IN (Intelligent Network)

  
	
   

  	
  Capital Expense

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  OSSN

  
	
   

  	
  Capital Expense

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  3G

  
	
   

  	
  Capital Projects

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH 

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  Operator Service

  
	
   

  	
  Vendor Fee

  
	
   

  
	
  Wireless Web

  
	
   

  	
  Capital Projects

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  Messaging

  
	
   

  	
  Capital Projects

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  

 

14

 

	
  VAD

  
	
   

  	
  Capital Projects

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  Voice Mail

  
	
   

  	
  Capital

  
	
   

  	
  Expense Projects

  
	
   

  	
  Circuit Expense

  
	
   

  	
  CLOH 

  
	
   

  	
  Labor

  
	
   

  	
  Forecasts

  
	
   

  
	
  Software Maintenance

  
	
   

  	
  Openwave

  
	
   

  	
  Hewlett Packard

  
	
   

  	
  Comverse

  
	
   

  	
  Marconi

  
	
   

  	
  Lucent

  
	
   

  	
  Commworks

  
	
   

  	
  Four Corners

  
	
   

  	
  Other Vendors (39)

  

 

Northwest Frequent Flyer

Premium Vision Services

PreNet

Pricing

Pro Text Messaging Plan

Ringers & More (Includes SBF and PT fees)

Roadside Rescue

Sprint Synch Services

Telecheck Charge

Telematics

Text Messaging Plan

TSC Usage

Type 1 Affiliate Long Distance

Voice Command Web

Wireless Web

 

 

-SECTION B-

 

Presently Offered CPGA Services

 

500 Minute Promotion Credit

 

15

 

Activations – Customer Solutions

Activations – E-Commerce (Includes On Line (Web) Activations)

Activations – Telesales

Credit Check Fee

Customer Solutions – Early Life

Demo Phones

EarthLink

Hal Riney Service

Handset Logistics

Handset Obsolescence Fee and Carrying Costs

Local/Indirect Commission

Marketing Collateral Destruction

NAM/CAM

One Sprint Telesales

PGA Expenses

PLS Commission

SmartWorks Printing

 

-SECTION C-

 

Presently Offered CCPU Services - Activity Settled Separately

 

Affiliate Project Authorizations

Long Distance

E911 Phase I Revenue

Microwave Clearing

Roaming

Software Fees

Sprint Local Telephone Usage

Taxes Paid on Behalf of Type III Affiliates

Tower Lease

Travel Revenue and Expense

Upgrade Commission – 2 Step Channel

Vendor Usage-Based Charges on New Products

Wholesale Revenue and Expense

 

-SECTION D-

 

Presently Offered CPGA Services -Activity Settled Separately

 

3G Device
Logistics Fee

3rd
Party Spiffs

Accessory
Margin

Commissions –
National 3rd Party

Commissions –
Other 3rd Party

Coop
Advertising – Local 3rd Party

Coop
Advertising – National 3rd Party

Handset
returns

Handset
subsidies

Handsets

 

16

 

Marketing
Collateral (excluding destruction)

Meeting
Competition Fund

RadioShack
Promos (Includes RadioShack Golden Quarter, Jumpstart, Relaunch, Sprint to
Vegas, and Break the Bank)

Rebate
Administrative Expense

Rebates

Reciprocal
Retail Store Cost Recovery

Sprint LDD
Commission

Third Party
Promotions

Upgrade
Commission – RadioShack

 

17

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