Document:

2011 Exhibit 10.43

EXHIBIT 10.43 
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of  September 6, 2011, effective as of September 26, 2011 (the “Effective Date”), by and between Sprint Nextel Corporation, a Kansas corporation (the “Company”) on behalf of itself and any of its subsidiaries, affiliates and related entities, and William Malloy (the “Executive”) (the Company and the Executive, collectively, the “Parties,” and each, a “Party”).  Certain capitalized terms are defined in Section 29.
WITNESSETH:
WHEREAS, the Executive desires to employ the Executive and the Executive desires to accept such employment; and
WHEREAS, the Executive and the Company desire to enter into this Agreement.
NOW, THEREFORE, in consideration of the premises and of the covenants and agreements set forth herein and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Company and the Executive agree as follows:
1.    Employment.  
(a)    The Company will employ the Executive and the Executive will be employed by the Company upon the terms and conditions set forth herein.  
(b)    The employment relationship between the Company and the Executive shall be governed by the general employment policies and practices of the Company, including without limitation, those relating to the Company’s Code of Conduct, confidential information and avoidance of conflicts, except that when the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.
2.    Term.  Subject to termination under Section 9, the Executive’s employment shall be for an initial term of 24 months commencing on the Effective Date and shall continue through the second anniversary of the Effective Date (the “Initial Employment Term”).  At the end of the Initial Employment Term and on each succeeding anniversary of the Effective Date, the Employment Term will be automatically extended by an additional 12 months (each, a “Renewal Term”), unless, not less than 12 months prior to the end of the Initial Employment Term or any Renewal Term, either the Executive or the Company has given the other written notice (in accordance with Section 20) of nonrenewal.  The Executive shall provide the Company with written notice of his intent to terminate employment with the Company at least 30 days prior to the effective date of such termination.  
3.    Position and Duties of the Executive.  
(a)    The Executive shall serve as Chief Marketing Officer, and agrees to serve as an officer of any enterprise and/or agrees to be an employee of any Subsidiary as may be requested from time to time by the Board of Directors of the Company (the

 “Board”), any committee or person delegated by the Board or the Chief Executive Officer of the Company (the “Chief Executive Officer”).  In such capacity, the Executive shall report directly to the Chief Executive Officer of the Company or such other officer of the Company as may be designated by the Chief Executive Officer.  The Executive shall have such duties, responsibility and authority as may be assigned to the Executive from time to time by the Chief Executive Officer, the Board or such other officer of the Company as may be designated by the Chief Executive Officer or the Board.  
(b)    During the Employment Term, the Executive shall, except as may from time to time be otherwise agreed to in writing by the Company, during reasonable vacations (as set forth in Section 7 hereof) and authorized leave and except as may from time to time otherwise be permitted pursuant to Section 3(c), devote his best efforts, full attention and energies during his normal working time to the business of the Company, to any duties as may be delineated in the Company’s Bylaws for the Executive’s position and title and such other related duties and responsibilities as may from time to time be reasonably prescribed by the Board, any committee or person designated by the Board, or the Chief Executive Officer, in each case, within the framework of the Company’s policies and objectives.
(c)    During the Employment Term, and provided that such activities do not contravene the provisions of Section 3(a) or Sections 10, 11, 12 or 13 hereof and, provided further, the Executive does not engage in any other substantial business activity for gain, profit or other pecuniary advantage which materially interferes with the performance of his duties hereunder, the Executive may participate in any governmental, educational, charitable or other community affairs and, subject to the prior approval of the Chief Executive Officer serve as a member of the governing board of any such organization or any private or public for-profit company.  The Executive may retain all fees and other compensation from any such service, and the Company shall not reduce his compensation by the amount of such fees.
4.    Compensation.
(a)    Base Salary.  During the Employment Term, the Company shall pay to the Executive an annual base salary of $450,000 (the “Base Salary”), which Base Salary shall be payable at the times and in the manner consistent with the Company’s general policies regarding compensation of the Company’s senior executives.  The Base Salary will be reviewed periodically by the Compensation Committee and may be increased (but not decreased, except for across-the-board reductions generally applicable to the Company’s senior executives) from time to time in the Compensation Committee’s sole discretion.  
(b)    Incentive Compensation.  The Executive will be eligible to participate in any short-term and long-term incentive compensation plans, annual bonus plans and such other management incentive programs or arrangements of the Company approved by the Board that are generally available to the Company’s senior executives, including, but not limited to, the STIP and the LTSIP.  Incentive compensation shall be paid in accordance with the terms and conditions of the applicable plans, programs and arrangements.    

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(i)    Annual Performance Bonus.  During the Employment Term, the Executive shall be entitled to participate in the STIP, with such opportunities as may be determined by the Compensation Committee in its sole discretion (“Target Bonuses”); provided, however, that for the Company’s fiscal year ending in 2011 (“FY 2011”) the Executive will participate, on a prorated basis for the period of FY 2011 in which he is employed, at an annual Target Bonus opportunity equal to 70% of his Base Salary.  The Executive’s Target Bonus may be increased (but not decreased, except for across-the-board reductions generally applicable to the Company’s senior executives) from time to time, and the Executive shall be entitled to receive full payment of any award under the STIP, determined pursuant to the STIP (a “Bonus Award”).
(ii)    Long-Term Performance Bonus.  During the Employment Term, the Executive shall be entitled to participate in the LTSIP with such opportunities, if any, as may be determined by the Compensation Committee (“LTSIP Target Award Opportunities”), provided, however, that the Executive’s LTSIP Target Award Opportunity for FY 2012 shall be equal to $900,000.
(iii)    Incentive bonuses, if earned, shall be paid when incentive compensation is customarily paid to the Company’s senior executives in accordance with the terms of the applicable plans, programs or arrangements.  
(iv)    Pursuant to the Company’s applicable incentive or bonus plans as in effect from time to time, the Executive’s incentive compensation during the term of this Agreement may be determined according to criteria intended to qualify as performance-based compensation under Code Section 162(m).
(c)    Equity Compensation.  The Executive shall be eligible to participate in such equity incentive compensation plans and programs as the Company generally provides to its senior executives, including, but not limited to, the LTSIP.  During the Employment Term, the Compensation Committee may, in its sole discretion, grant equity awards to the Executive, which would be subject to the terms of the respective award agreements evidencing such grants and the applicable plan or program. 
(i)    Restricted Stock Units.  The Compensation Committee hereby grants to the Executive 65,000 restricted stock units (the “RSUs”), which shall be subject to the terms and conditions of the award agreement attached hereto as Exhibit A, and, except as otherwise provided in such agreement, shall be governed by the provisions of the LTSIP.
5.    Benefits.  
(a)    During the Employment Term, the Company shall make available to the Executive, subject to the terms and conditions of the applicable plans, participation for the Executive and his eligible dependents in:  (i) Company-sponsored group health, major medical, dental, vision, pension and profit sharing, 401(k) and employee welfare benefit plans, programs and arrangements (the “Employee Plans”) and such other usual and customary benefits in which 

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senior executives of the Company participate from time to time, and (ii) such fringe benefits and perquisites as may be made available to senior executives of the Company as a group.
(b)    The Executive acknowledges that the Company may change its benefit programs from time to time, which may result in certain benefit programs being amended or terminated for its senior executives generally.  
6.    Expenses.  The Company shall pay or reimburse the Executive for reasonable and necessary business expenses incurred by the Executive in connection with his duties on behalf of the Company in accordance with the Company’s Enterprise Financial Services—Employee Travel and Expense Policy, as may be amended from time to time, or any successor policy, plan, program or arrangement thereto and any other of its expense policies applicable to senior executives of the Company, following submission by the Executive of reimbursement expense forms in a form consistent with such expense policies.  
7.    Vacation.  In addition to such holidays, sick leave, personal leave and other paid leave as is allowed under the Company’s policies applicable to senior executives generally, the Executive shall be entitled to participate in the Company’s vacation policy in accordance with the Company’s policy generally applicable to senior executives.  The duration of such vacations and the time or times when they shall be taken will be determined by the Executive in consultation with the Company.  
8.    Place of Performance.  In connection with his employment by the Company, the Executive shall be based at the principal executive offices of the Company in the vicinity of Overland Park, Kansas (the “Place of Performance”), except for travel reasonably required for Company business.  The Executive will relocate the Executive’s residence no later than January 1, 2012 to the area surrounding the Executive’s Place of Performance, in accordance with the Company’s relocation policy applicable to senior executives as of the date benefits are initiated thereunder, except as modified by Attachment A hereto.  If the Company relocates the Executive’s Place of Performance more than 50 miles from his Place of Performance prior to such relocation, the Executive shall relocate to a residence within the greater of (a) 50 miles of such relocated Place of Performance or (b) such total miles that does not exceed the total number of miles the Executive commuted to his Place of Performance prior to relocation of the Executive’s Place of Performance.  To the extent the Executive relocates his residence as provided in this Section 8, the Company will pay or reimburse the Executive’s relocation expenses in accordance with the Company’s relocation policy applicable to senior executives.  

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9.    Termination.
(a)    Termination by the Company for Cause or Resignation by the Executive Without Good Reason.  If, during the Employment Term, the Executive’s employment is terminated by the Company for Cause, or if the Executive resigns without Good Reason, the Executive shall not be eligible to receive Base Salary or to participate in any Employee Plans with respect to future periods after the date of such termination or resignation except for the right to receive accrued but unpaid cash compensation and vested benefits under any Employee Plan in accordance with the terms of such Employee Plan and applicable law.   
(b)    Termination by the Company Without Cause or Resignation by the Executive for Good Reason outside of the CIC Severance Protection Period.  If, during the Employment Term, the Executive’s employment is terminated by the Company without Cause or the Executive terminates for Good Reason prior to, or following expiration of, the CIC Severance Protection Period and such termination constitutes a Separation from Service or the Executive is entitled to severance compensation and benefits under this Section 9(b) pursuant to the provisions of Section 9(c), the Executive shall be entitled to receive from the Company: (1) the Executive’s accrued, but unpaid, Base Salary through the date of termination of employment, payable in accordance with the Company’s normal payroll practices and any vested benefits under any Employee Plan in accordance with the terms of such Employee Plan and applicable law, and (2) conditioned upon the Executive executing a Release within the Release Consideration Period and delivering it to the Company with the Release Revocation Period expired without revocation, and in full satisfaction of the Executive’s rights and any benefits the Executive might be entitled to under the Separation Plan and this Agreement and any requirements of the Worker Adjustment and Retraining Notification Act or similar law, unless otherwise specified herein:
(i)    periodic payments equal to his Base Salary in effect prior to the termination of his employment, which payments shall be paid to the Executive in equal installments on the regular payroll dates under the Company’s payroll practices applicable to the Executive on the date of this Agreement for the Payment Period, except that if the Executive is a Specified Employee, with respect to any amount payable by reason of the Separation from Service that constitutes deferred compensation within the meaning of Code Section 409A, such installments shall not commence until after the end of the six continuous month period following the date of the Executive’s Separation from Service, in which case, the Executive shall be paid a lump-sum cash payment equal to the aggregate amount of missed installments during such period on the first day of the seventh month following the date of the Executive’s Separation from Service;
(ii)    (A) receive a pro rata payment of the Bonus Award for the portion of the Company’s current fiscal year prior to the date of termination of his employment; (B) receive a pro rata payment of the Capped Bonus Award for the portion of the Company’s current fiscal year following the date of termination of his employment; (C) receive for the next fiscal year following the fiscal year during which his termination of employment occurs, the Capped Bonus Award, or if his Payment Period ends during such fiscal year, a pro rata portion of the Capped Bonus Award; and (D) if his Payment Period 

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ends in the second year following the fiscal year during which the Executive’s termination of employment occurs, receive payment of a pro rata portion of the Capped Bonus Award for such fiscal year; provided, however, that to the extent the Executive’s employment is terminated for Good Reason due to a reduction of the Executive’s Target Bonus, in accordance with Section 29(x)(ii), the Executive’s Target Bonus for the purposes of this Section 9(b)(ii) shall be the Executive’s Target Bonus immediately prior to such reduction; provided, further, that any pro rata payment shall be determined based on the methodology for determining pro rated awards under the STIP,  and each such payment shall be payable in accordance with the provisions of the STIP in the calendar year in which the Bonus Award or each Capped Bonus Award, as applicable, is determined, and in all events, not later than December 31st of the year in which each such award is determined; 
(iii)    continue for the Payment Period participation in the Company’s group health plans at then-existing participation and coverage levels comparable to the terms in effect from time to time for the Company’s senior executives, including any co-payment and premium payment requirements, for which the Company shall deduct from each payment payable to the Executive pursuant to Section 9(b)(i), the amount of any employee contributions necessary to maintain such coverage for such period, except that (A) following such period, the Executive shall retain any rights to continue coverage under the Company’s group health plans under the benefits continuation provisions pursuant to Code Section 4980B by paying the applicable premiums of such plans; and (B) the Executive shall no longer be eligible to receive the benefits otherwise receivable pursuant to this Section 9(b)(iii) as of the date that the Executive becomes eligible to receive comparable benefits from a new employer;
(iv)    continue for the Payment Period participation in the Company’s employee life insurance plans at then-existing participation and coverage levels, comparable to the terms in effect from time to time for the Company’s senior executives, including any premium payment requirements, for which the Company shall deduct from each payment payable to the Executive pursuant to Section 9(b)(i), the amount of any employee contributions necessary to maintain such coverage for such period, except that the Executive shall no longer be eligible to receive the benefits otherwise receivable pursuant to this Section 9(b)(iv) as of the date that the Executive becomes eligible to receive comparable benefits from a new employer; and
(v)    receive outplacement services by a firm selected by the Company at its expense in an amount not to exceed $35,000; provided, however, that all such outplacement services must be completed, and all payments by the Company must be made, by December 31st of the second calendar year following the calendar year in which the Executive’s Separation from Service occurs.

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Notwithstanding anything in this Section 9(b) to the contrary, to the extent the Executive has not executed the Release within the Release Consideration Period and delivered it to the Company, or has revoked the executed Release within the Release Revocation Period, as determined at the end of such Release Revocation Period, the Executive will forfeit any right to receive the payments and benefits specified in this Section 9(b) (other than any accrued but unpaid payments and benefits through the date of termination of employment). 
(c)    Termination by the Company Without Cause or Resignation by the Executive for Good Reason During the CIC Severance Protection Period.  Subject to (i)-(iv) below, if the Executive’s employment is terminated by the Company without Cause, or the Executive terminates employment for Good Reason, before the Employment Term expires and during the CIC Severance Protection Period, and the termination constitutes a Separation from Service, subject to the terms of the CIC Severance Plan, the Executive will become entitled to severance compensation and benefits under the CIC Severance Plan as of (x) the date the Separation from Service occurs, or (y) in the event of a Pre-CIC Termination, the date the Change in Control occurs, as of which date all rights to severance benefits under this Agreement will cease.
(i)    The CIC Severance Plan will not apply and the Executive will be entitled to severance compensation and benefits under Section 9(b) of this Agreement if the Executive (x) as of his Separation from Service is not a Participant in, or (y) is otherwise not entitled to severance compensation and benefits under, the CIC Severance Plan.
(ii)    If the Executive is entitled to severance benefits under the CIC Severance Plan as a result of a Pre-CIC Termination, any benefits payable before the Change in Control will be paid under this Agreement and any additional benefits payable after the Change in Control will be paid under the CIC Severance Plan.
(iii)    In no event may there be duplication of benefits under this Agreement and the CIC Severance Plan.
(iv)        The terms “Change in Control” and “Pre-CIC Termination” are defined in the CIC Severance Plan.

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

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(i)    receive periodic payments equal to his Base Salary in effect prior to the termination of his employment (reduced by any amounts paid on a monthly basis under any long-term disability plan (the “LTD Plan”) now or hereafter sponsored by the Company), which payments shall be paid to the Executive commencing on the Separation from Service date for 12 months in equal installments on the regular payroll dates under the Company’s payroll practices applicable to the Executive on the date of this Agreement; provided, however, that in the event that the Executive is a Specified Employee, with respect to any amount payable by reason of the Executive’s Separation from Service that constitutes deferred compensation within the meaning of Code Section 409A, such installments shall not commence until the earlier to occur of (A) the first business day of the seventh month following the date of the Executive’s Separation from Service and (B) death, in which case the Executive (or the Executive’s estate in the event of Executive’s death) shall be paid on the earlier of (1) the first day of the seventh month following the date of the Executive’s Separation from Service and (2) the Executive’s death a lump-sum cash payment equal to the aggregate amount of any such payments that constitutes deferred compensation within the meaning of Code Section 409A that the Executive would have been entitled to receive during such period following the Executive’s Separation from Service; and
(ii)    continue participation in the Company’s group health plans at then-existing participation and coverage levels for 12 months (measured from the Executive’s Separation from Service), comparable to the terms in effect from time to time for the Company’s senior executives, including any co-payment and premium payment requirements, and the Company shall deduct from each payment payable to the Executive pursuant to Section 9(e)(i), the amount of any employee contributions necessary to maintain such coverage for such period; except that following such period, the Executive shall retain any rights to continue coverage under the Company’s group health plans under the benefits continuation provisions pursuant to Code Section 4980B by paying the applicable premiums of such plans.
(f)    No Mitigation Obligation.  No amounts paid under Section 9 will be reduced by any earnings that the Executive may receive from any other source.  The Executive’s coverage under the Company’s medical, dental, vision and employee life insurance plans will terminate as of the date that the Executive is eligible for comparable benefits from a new employer.  The Executive shall notify the Company within 30 days after becoming eligible for coverage of any such benefits.
(g)    Forfeiture.  Notwithstanding the foregoing, any right of the Executive to receive termination payments and benefits hereunder shall be forfeited to the extent of any amounts payable after any breach of Sections 10, 11, 12, 13 or 15 by the Executive.

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10.    Confidential Information; Statements to Third Parties.
(a)    During the Employment Term and on a permanent basis upon and following termination of the Executive’s employment, the Executive acknowledges that:
(i)    all information, whether or not reduced to writing (or in a form from which information can be obtained, translated, or derived into reasonably usable form) or maintained in the mind or memory of the Executive and whether compiled or created by the Company, any of its Subsidiaries or any affiliates of the Company or its Subsidiaries (collectively, the “Company Group”), which derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from the disclosure or use of such information, of a proprietary, private, secret or confidential (including, without exception, inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects, developments, sales strategies, plans, research data, clinical data, financial data, personnel data, computer programs, customer and supplier lists, trademarks, service marks, copyrights (whether registered or unregistered), artwork, and contacts at or knowledge of customers or prospective customers) nature concerning the Company Group’s business, business relationships or financial affairs (collectively, “Proprietary Information”) shall be the exclusive property of the Company Group;   
(ii)    the Proprietary Information of the Company Group gained by the Executive during the Executive’s association with the Company Group was or will be developed by and/or for the Company Group through substantial expenditure of time, effort and money and constitutes valuable and unique property of the Company Group; 
(iii)    reasonable efforts have been put forth by the Company Group to maintain the secrecy of its Proprietary Information;
(iv)    such Proprietary Information is and will remain the sole property of the Company Group; and 
(v)    any retention or use by the Executive of Proprietary Information after the termination of the Executive’s services for the Company Group will constitute a misappropriation of the Company Group’s Proprietary Information.
(b)    The Executive further acknowledges and agrees that he will take all affirmative steps reasonably necessary or required by the Company to protect the Proprietary Information from inappropriate disclosure during and after his employment with the Company.   
(c)    The Executive further agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other written, photographic, electronic, or other tangible material containing or constituting Proprietary Information, whether created by the Executive or others, which shall come into his custody or possession, regardless of medium, shall be and are the exclusive property of the Company to be 

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used by him only in the performance of his duties for the Company.  All such materials or copies thereof and all tangible things and other property of the Company Group in the Executive’s custody or possession shall be delivered to the Company (to the extent the Executive has not already returned) in good condition, on or before five business days subsequent to the earlier of: (i) a request by the Company or (ii) the Executive’s termination of employment for any reason or Cause, including for nonrenewal of this Agreement, Disability, termination by the Company or termination by the Executive.  After such delivery, the Executive shall not retain any such materials or portions or copies thereof or any such tangible things and other property and shall execute any statements or affirmations of compliance under oath that the Company may require.
(d)    The Executive further agrees that his obligation not to disclose or to use information and materials of the types set forth in Sections 10(a), 10(b) and 10(c) above, and his obligation to return materials and tangible property, set forth in Section 10(c) above, also extends to such types of information, materials and tangible property of customers of the Company Group, consultants for the Company Group, suppliers to the Company Group, or other third parties who may have disclosed or entrusted the same to the Company Group or to the Executive.
(e)    The Executive further acknowledges and agrees that he will continue to keep in strict confidence, and will not, directly or indirectly, at any time, disclose, furnish, disseminate, make available, use or suffer to be used in any manner any Proprietary Information of the Company Group without limitation as to when or how the Executive may have acquired such Proprietary Information and that he will not disclose any Proprietary Information to any person or entity other than appropriate employees of the Company or use the same for any purposes (other than in the performance of his duties as an employee of the Company) without written approval of the Board, either during or after his employment with the Company.  
(f)    Further the Executive acknowledges that his obligation of confidentiality will survive, regardless of any other breach of this Agreement or any other agreement, by any party hereto, until and unless such Proprietary Information of the Company Group has become, through no fault of the Executive, generally known to the public.  In the event that the Executive is required by law, regulation, or court order to disclose any of the Company Group’s Proprietary Information, the Executive will promptly notify the Company prior to making any such disclosure to facilitate the Company seeking a protective order or other appropriate remedy from the proper authority.  The Executive further agrees to cooperate with the Company in seeking such order or other remedy and that, if the Company is not successful in precluding the requesting legal body from requiring the disclosure of the Proprietary Information, the Executive will furnish only that portion of the Proprietary Information that is legally required, and the Executive will exercise all legal efforts to obtain reliable assurances that confidential treatment will be accorded to the Proprietary Information.  

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(g)    The Executive’s obligations under this Section 10 are in addition to, and not in limitation of, all other obligations of confidentiality under the Company’s policies, general legal or equitable principles or statutes.
(h)    During the Employment Term and following his termination of employment:
(i)    the Executive shall not, directly or indirectly, make or cause to be made any statements, including but not limited to, comments in books or printed media, to any third parties criticizing or disparaging the Company Group or commenting on the character or business reputation of the Company Group.  Without the prior written consent of the Board, unless otherwise required by law, the Executive shall not (A) publicly comment in a manner adverse to the Company Group concerning the status, plans or prospects of the business of the Company Group or (B) publicly comment in a manner adverse to the Company Group concerning the status, plans or prospects of any existing, threatened or potential claims or litigation involving the Company Group; 
(ii)    the Company shall comply with its policies regarding public statements with respect to the Executive and any such statements shall be deemed to be made by the Company only if made or authorized by a member of the Board or a senior executive officer of the Company; and
(iii)    nothing herein precludes honest and good faith reporting by the Executive to appropriate Company or legal enforcement authorities.
(i)    The Executive acknowledges and agrees that a violation of the foregoing provisions of this Section 10 would cause irreparable harm to the Company Group, and that the Company’s remedy at law for any such violation would be inadequate.  In recognition of the foregoing, the Executive agrees that, in addition to any other relief afforded by law or this Agreement, including damages sustained by a breach of this Agreement and any forfeitures under Section 9(g), and without the necessity or proof of actual damages, the Company shall have the right to enforce this Agreement by specific remedies, which shall include, among other things, temporary and permanent injunctions, it being the understanding of the undersigned parties hereto that damages, the forfeitures described above and injunctions shall all be proper modes of relief and are not to be considered as alternative remedies.
11.    Non-Competition.  In consideration of the Company entering into this Agreement, for a period commencing on the Effective Date and ending on the expiration of the Restricted Period:
(a)    The Executive covenants and agrees that the Executive will not, directly or indirectly, engage in any activities on behalf of or have an interest in any Competitor of the Company Group, whether as an owner, investor, executive, manager, employee, independent consultant, contractor, advisor, or otherwise.  The Executive’s ownership of less than one percent (1%) of any class of stock in a publicly traded corporation shall not be a breach of this paragraph.

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(b)    A “Competitor” is any entity doing business directly or indirectly (e.g., as an owner, investor, provider of capital or otherwise) in the United States including any territory of the United States (the “Territory”) that provides products and/or services that are the same or similar to the products and/or services that are currently being provided at the time of Executive’s termination or that were provided by the Company Group during the two-year period prior to the Executive’s termination of employment with the Company Group. 
(c)    The Executive acknowledges and agrees that due to the continually evolving nature of the Company Group’s industry, the scope of its business and/or the identities of Competitors may change over time.  The Executive further acknowledges and agrees that the Company Group markets its products and services on a nationwide basis, encompassing the Territory and that the restrictions imposed by this covenant, including the geographic scope, are reasonably necessary to protect the Company Group’s legitimate interests.  
(d)    The Executive covenants and agrees that should a court at any time determine that any restriction or limitation in this Section 11 is unreasonable or unenforceable, it will be deemed amended so as to provide the maximum protection to the Company Group and be deemed reasonable and enforceable by the court.
12.    Non-Solicitation.  In consideration of the Company entering into this Agreement, for a period commencing on the Effective Date and ending on the expiration of the Restricted Period, the Executive hereby covenants and agrees that he shall not, directly or indirectly, individually or on behalf of any other person or entity do or suffer any of the following: 
(a)    hire or employ or assist in hiring or employing any person who was at any time during the last 18 months of the Executive’s employment an employee, representative or agent of any member of the Company Group or solicit, aid, induce or attempt to solicit, aid, induce or persuade, directly or indirectly, any person who is an employee, representative, or agent of any member of the Company Group to leave his employment with any member of the Company Group to accept employment with any other person or entity;  
(b)    induce any person who is an employee, officer or agent of the Company Group, or any of its affiliated, related or subsidiary entities to terminate such relationship; 
(c)    solicit any customer of the Company Group, or any person or entity whose business the Company Group had solicited during the 180-day period prior to termination of the Executive’s employment for purposes of business which is competitive to the Company Group within the Territory; or

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(d)    solicit, aid, induce, persuade or attempt to solicit, aid, induce or persuade any person or entity to take any action that would result in a Change in Control of the Company or to seek to control the Board in a material manner.
(e)    For purposes of this Section 12, the term “solicit or persuade” includes, but is not limited to, (i) initiating communications with an employee of the Company Group relating to possible employment, (ii) offering bonuses or additional compensation to encourage an employee of the Company Group to terminate his employment, (iii) referring employees of the Company Group to personnel or agents employed by competitors, suppliers or customers of the Company Group, and (iv) initiating communications with any person or entity relating to a possible Change in Control.
13.    Developments.
(a)    The Executive acknowledges and agrees that he will make full and prompt disclosure to the Company of all inventions, improvements, discoveries, methods, developments, software, mask works, and works of authorship, whether patentable or copyrightable or not, (i) which relate to the Company’s business and have heretofore been created, made, conceived or reduced to practice by the Executive or under his direction or jointly with others, and not assigned to prior employers, or (ii) which have utility in or relate to the Company’s business and are created, made, conceived or reduced to practice by the Executive or under his direction or jointly with others during his employment with the Company, whether or not during normal working hours or on the premises of the Company (all of the foregoing of which are collectively referred to in this Agreement as “Developments”).
(b)    The Executive further agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all of the Executive’s rights, title and interest worldwide in and to all Developments and all related patents, patent applications, copyrights and copyright applications, and any other applications for registration of a proprietary right.  This Section 13(b) shall not apply to Developments that the Executive developed entirely on his own time without using the Company’s equipment, supplies, facilities, or Proprietary Information and that does not, at the time of conception or reduction to practice, have utility in or relate to the Company’s business, or actual or demonstrably anticipated research or development.  The Executive understands that, to the extent this Agreement shall be construed in accordance with the laws of any Territory which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this Section 13(b) shall be interpreted not to apply to any invention which a court rules or the Company agrees falls within such classes.  
(c)    The Executive further agrees to cooperate fully with the Company, both during and after his employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United States and other countries) relating to Developments.  The Executive shall not be required to incur or pay any costs or expenses in connection with the rendering of such cooperation.  The Executive will sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, and do all things that the Company may reasonably deem 

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necessary or desirable in order to protect its rights and interests in any Development.  
(d)    The Executive further acknowledges and agrees that if the Company is unable, after reasonable effort, to secure the Executive’s signature on any such papers, any executive officer of the Company shall be entitled to execute any such papers as the Executive’s agent and attorney-in-fact, and the Executive hereby irrevocably designates and appoints each executive officer of the Company as his agent and attorney-in-fact to execute any such papers on the Executive’s behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Development, under the conditions described in this sentence.
14.    Remedies.  The Executive and the Company agree that the covenants contained in Sections 10, 11, 12 and 13 are reasonable under the circumstances, and further agree that if in the opinion of any court of competent jurisdiction any such covenant is not reasonable in any respect, such court will have the right, power and authority to sever or modify any provision or provisions of such covenants as to the court will appear not reasonable and to enforce the remainder of the covenants as so amended.  The Executive acknowledges and agrees that the remedy at law available to the Company for breach of any of the Executive’s obligations under Sections 10, 11, 12 and 13 would be inadequate and that damages flowing from such a breach may not readily be susceptible to being measured in monetary terms.  Accordingly, the Executive acknowledges, consents and agrees that, in addition to any other rights or remedies that the Company may have at law, in equity or under this Agreement, upon adequate proof of the Executive’s violation of any such provision of this Agreement, the Company will be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach, without the necessity of proof of actual damage.  Without limiting the applicability of this Section 14 or in any way affecting the right of the Company to seek equitable remedies hereunder, in the event that the Executive breaches any of the provisions of Sections 10, 11, 12 or 13 or engages in any activity that would constitute a breach save for the Executive’s action being in a state where any of the provisions of Sections 10, 11, 12, 13 or this Section 14 is not enforceable as a matter of law, then the Company’s obligation to pay any remaining severance compensation and benefits that has not already been paid to Executive pursuant to Section 9 shall be terminated and within ten days of notice of such termination of payment, the Executive shall return all severance compensation and the value of such benefits, or profits derived or received from such benefits.
15.    Continued Availability and Cooperation.
(a)    Following termination of the Executive’s employment, the Executive shall cooperate fully with the Company and with the Company’s counsel in connection with any present and future actual or threatened litigation, administrative proceeding or investigation involving the Company that relates to events, occurrences or conduct occurring (or claimed to have occurred) during the period of the Executive’s employment by the Company.  Cooperation will include, but is not limited to:

Page 14 of 26

(i)    making himself reasonably available for interviews and discussions with the Company’s counsel as well as for depositions and trial testimony;
(ii)    if depositions or trial testimony are to occur, making himself reasonably available and cooperating in the preparation therefore, as and to the extent that the Company or the Company’s counsel reasonably requests;
(iii)    refraining from impeding in any way the Company’s prosecution or defense of such litigation or administrative proceeding; and
(iv)    cooperating fully in the development and presentation of the Company’s prosecution or defense of such litigation or administrative proceeding.
(b)    The Company will reimburse the Executive for reasonable travel, lodging, telephone and similar expenses, as well as reasonable attorneys’ fees (if independent legal counsel is necessary), incurred in connection with any cooperation, consultation and advice rendered under this Agreement after the Executive’s termination of employment.  
16.    Dispute Resolution.  
(a)    In the event that the Parties are unable to resolve any controversy or claim arising out of or in connection with this Agreement or breach thereof, either Party shall refer the dispute to binding arbitration, which shall be the exclusive forum for resolving such claims.  Such arbitration will be administered by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) pursuant to its Employment Arbitration Rules and Procedures and governed by Kansas law.  The arbitration shall be conducted by a single arbitrator selected by the Parties according to the rules of JAMS.  In the event that the Parties fail to agree on the selection of the arbitrator within 30 days after either Party’s request for arbitration, the arbitrator will be chosen by JAMS.  The arbitration proceeding shall commence on a mutually agreeable date within 90 days after the request for arbitration, unless otherwise agreed by the Parties, and in the location where the Executive worked during the six months immediately prior to the request for arbitration if that location is in Kansas or Virginia, and if not, the location will be Kansas, unless the Parties agree otherwise.
(b)    The Parties agree that each will bear their own costs and attorneys’ fees.  The arbitrator shall not have authority to award attorneys’ fees or costs to any Party.
(c)    The arbitrator shall have no power or authority to make awards or orders granting relief that would not be available to a Party in a court of law.  The arbitrator’s award is limited by and must comply with this Agreement and applicable federal, state, and local laws.  The decision of the arbitrator shall be final and binding on the Parties.

Page 15 of 26

(d)    Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief contemplated by or allowed under applicable law pursuant to Sections 10, 11, 12 and 13 of this Agreement will be subject to arbitration under this Section 16, but will instead be subject to determination in a court of competent jurisdiction in Kansas, which court shall apply Kansas law consistent with Section 21 of this Agreement, where either Party may seek injunctive or equitable relief.
17.    Other Agreements.  No agreements (other than the agreements evidencing any grants of equity awards) or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.  Each party to this Agreement acknowledges that no representations, inducements, promises, or other agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, pertaining to the subject matter hereof, which are not embodied herein, and that no prior and/or contemporaneous agreement, statement or promise pertaining to the subject matter hereof that is not contained in this Agreement shall be valid or binding on either party.
18.    Withholding of Taxes.  The Company will withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any law or government regulation or ruling.
19.    Successors and Binding Agreement.
(a)    The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place.  This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company, except that the Company may assign and transfer this Agreement and delegate its duties thereunder to a wholly owned Subsidiary.
(b)    This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees.
(c)    This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 19(a) and 19(b).  Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by the Executive’s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 19

Page 16 of 26

(c), the Company shall have no liability to pay any amount so attempted to be assigned, transferred or delegated.
20.    Notices.  All communications, including without limitation notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof confirmed), or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as Federal Express or UPS, addressed to the Company (to the attention of the General Counsel of the Company) at its principal executive offices and to the Executive at his principal residence, or to such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address shall be effective only upon receipt.
21.    Governing Law and Choice of Forum.
(a)    This Agreement will be construed and enforced according to the laws of the State of Kansas, without giving effect to the conflict of laws principles thereof. 
(b)    To the extent not otherwise provided for by Section 16 of this Agreement, the Executive and the Company consent to the jurisdiction of all state and federal courts located in Overland Park, Johnson County, Kansas, as well as to the jurisdiction of all courts of which an appeal may be taken from such courts, for the purpose of any suit, action, or other proceeding arising out of, or in connection with, this Agreement or that otherwise arise out of the employment relationship.  Each Party hereby expressly waives any and all rights to bring any suit, action, or other proceeding in or before any court or tribunal other than the courts described above and covenants that it shall not seek in any manner to resolve any dispute other than as set forth in this paragraph.  Further, the Executive and the Company hereby expressly waive any and all objections either may have to venue, including, without limitation, the inconvenience of such forum, in any of such courts.  In addition, each of the Parties consents to the service of process by personal service or any manner in which notices may be delivered hereunder in accordance with this Agreement.
22.    Validity/Severability.  If any provision of this Agreement or the application of any provision is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision will not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it enforceable, valid or legal.  To the extent any provisions held to be invalid, unenforceable or otherwise illegal cannot be reformed, such provisions are to be stricken herefrom and the remainder of this Agreement will be binding on the parties and their successors and assigns as if such invalid or illegal provisions were never included in this Agreement from the first instance.
23.    Survival of Provisions.  Notwithstanding any other provision of this Agreement, the parties’ respective rights and obligations under Sections 10, 11, 12, 13, 14, 15, 16, 18, 22 and 26 will survive any termination or expiration of this Agreement or the termination of the Executive’s employment.

Page 17 of 26

24.    Representations and Acknowledgements.
(a)    The Executive hereby represents that he is not subject to any restriction of any nature whatsoever on his ability to enter into this Agreement or to perform his duties and responsibilities hereunder, including, but not limited to, any covenant not to compete with any former employer, any covenant not to disclose or use any non-public information acquired during the course of any former employment or any covenant not to solicit any customer of any former employer.
(b)    The Executive hereby represents that, except as he has disclosed in writing to the Company, he is not bound by the terms of any agreement with any previous employer or other party to refrain from using or disclosing any trade secret or confidential or proprietary information in the course of the Executive’s employment with the Company or to refrain from competing, directly or indirectly, with the business of such previous employer or any other party.  
(c)    The Executive further represents that, to the best of his knowledge, his performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement with another party, including without limitation any agreement to keep in confidence proprietary information, knowledge or data the Executive acquired in confidence or in trust prior to his employment with the Company, and that he will not knowingly disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.
(d)    The Executive acknowledges that he will not be entitled to any consideration or reimbursement of legal fees in connection with execution of this Agreement.
(e)    The Executive hereby represents and agrees that, during the Restricted Period, if the Executive is offered employment or the opportunity to enter into any business activity, whether as owner, investor, executive, manager, employee, independent consultant, contractor, advisor or otherwise, the Executive will inform the offeror of the existence of Sections 10, 11, 12 and 13 of this Agreement and provide the offeror a copy thereof.  The Executive authorizes the Company to provide a copy of the relevant provisions of this Agreement to any of the persons or entities described in this Section 24(e) and to make such persons aware of the Executive’s obligations under this Agreement.
25.    Compliance with Code Section 409A.  With respect to reimbursements or in-kind benefits provided under this Agreement: (a) the Company will not provide for cash in lieu of a right to reimbursement or in-kind benefits to which the Executive has a right under this Agreement, (b) any reimbursement or provision of in-kind benefits made during the Executive’s lifetime (or such shorter period prescribed by a specific provision of this Agreement) shall be made not later than December 31st of the year following the year in which the Executive incurs the expense, and (c) in no event will the amount of expenses so reimbursed, or in-kind benefits provided, by the Company in one year affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.  Each payment, reimbursement or in-kind benefit made pursuant to the provisions of this Agreement shall be regarded as a separate payment and not one of a series of payments for purposes of 

Page 18 of 26

Code Section 409A.  It is intended that any amounts payable under this Agreement and the Company’s and the Executive’s exercise of authority or discretion hereunder shall comply with the provisions of Code Section 409A and the treasury regulations relating thereto so as not to subject the Executive to the payment of the additional tax, interest and any tax penalty which may be imposed under Code Section 409A.  In furtherance of this interest, to the extent that any provision hereof would result in the Executive being subject to payment of the additional tax, interest and tax penalty under Code Section 409A, the parties agree to amend this Agreement in order to bring this Agreement into compliance with Code Section 409A; and thereafter interpret its provisions in a manner that complies with Code Section 409A.  Reference to Code Section 409A is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the U.S. Department of Treasury or the Internal Revenue Service.  Notwithstanding the foregoing, no particular tax result for the Executive with respect to any income recognized by the Executive in connection with the Agreement is guaranteed, and the Executive shall be responsible for any taxes, penalties and interest imposed on him under or as a result of Code Section 409A in connection with the Agreement.
26.    Amendment; Waiver.  Except as otherwise provided herein, this Agreement may not be modified, amended or waived in any manner except by an instrument in writing signed by both Parties hereto.  No waiver by either Party at any time of any breach by the other Party hereto or compliance with any condition or provision of this Agreement to be performed by such other Party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  
27.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same agreement.
28.    Headings.  Unless otherwise noted, the headings of sections herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
29.    Defined Terms.  
(a)    “Agreement” has the meaning set forth in the preamble.
(b)    “Base Salary” has the meaning set forth in Section 4(a).
(c)    “Board” has the meaning set forth in Section 3(a).
(d)    “Bonus Award” has the meaning set forth in Section 4(b)(i).

Page 19 of 26

(e)    “Bylaws” means the Amended and Restated Sprint Nextel Corporation Bylaws, as may be amended from time to time.
(f)    “Capped Bonus Award” shall mean the lesser of the annual Target Bonus or actual performance for such fiscal year in accordance with the then existing terms of the STIP, which shall not be payable until the Compensation Committee has determined that any incentive targets have been achieved and the subsequent designated payout date has arrived.
(g)    “Cause” shall mean:
(i)    any act or omission constituting a material breach by the Executive of any provisions of this Agreement;
(ii)    the willful failure by the Executive to perform his duties hereunder (other than any such failure resulting from the Executive’s Disability), after demand for performance is delivered by the Company that identifies the manner in which the Company believes the Executive has not performed his duties, if, within 30 days of such demand, the Executive fails to cure any such failure capable of being cured;
(iii)    any intentional act or misconduct materially injurious to the Company or any Subsidiary, financial or otherwise, or including, but not limited to, misappropriation, fraud including with respect to the Company’s accounting and financial statements, embezzlement or conversion by the Executive of the Company’s or any of its Subsidiary’s property in connection with the Executive’s duties or in the course of the Executive’s employment with the Company;
(iv)    the conviction (or plea of no contest) of the Executive for any felony or the indictment of the Executive for any felony including, but not limited to, any felony involving fraud, moral turpitude, embezzlement or theft in connection with the Executive’s duties or in the course of the Executive’s employment with the Company; 
(v)    the commission of any intentional or knowing violation of any antifraud provision of the federal or state securities laws;
(vi)    the Board reasonably believes in its good faith judgment that the Executive has committed any of the acts referred to in this Section 29(g)(vi); 
(vii)    there is a final, non-appealable order in a proceeding before a court of competent jurisdiction or a final order in an administrative proceeding finding that the Executive committed any willful misconduct or criminal activity (excluding minor traffic violations or other minor offenses) which commission is materially inimical to the interests of the Company or any Subsidiary, whether for his personal benefit or in connection with his duties for the Company or any Subsidiary;

Page 20 of 26

(viii)    current alcohol or prescription drug abuse affecting work performance;  
(ix)    current illegal use of drugs; or
(x)    violation of the Company’s Code of Conduct, with written notice of termination by the Company for Cause in each case provided under this Section 29(g).
For purposes of this Agreement, no act or failure to act on the part of the Executive shall be deemed “intentional” if it was due primarily to an error in judgment or negligence, but shall be deemed “intentional” only if done or omitted to be done by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company.  
(h)    “Change in Control” has the meaning set forth in the CIC Severance Plan. 
(i)    “Chief Executive Officer” has the meaning set forth in Section 3(a).
(j)    “CIC Severance Plan” means the Company’s Change in Control Severance Plan, as may be amended from time to time, or any successor plan, program or arrangement thereto.
(k)    “CIC Severance Protection Period” has the meaning set forth in the CIC Severance Plan. 
(l)    “Certificate of Incorporation” means the Amended and Restated Articles of Incorporation of Sprint Nextel Corporation, as may be amended from time to time.
(m)    “Code” means the Internal Revenue Code of 1986, as amended from time to time, including any rules and regulations promulgated thereunder, along with Treasury and IRS Interpretations thereof.  Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation that amends, supplements or replaces such section or subsection.
(n)    “Company” has the meaning set forth in the preamble.
(o)    “Company Group” has the meaning set forth in Section 10(a)(i).
(p)    “Compensation Committee” means the Compensation Committee of the Board.
(q)    “Competitor” has the meaning set forth in Section 11(b).
(r)    “Developments” has the meaning set forth in Section 13(a).

Page 21 of 26

(s)    “Disability” or “Disabled” shall mean:
(i)    the Executive’s incapacity due to physical or mental illness to substantially perform his duties and the essential functions of his position, with or without reasonable accommodation, on a full-time basis for six months as determined by the Board in its reasonable discretion, and within 30 days after a notice of termination is thereafter given by the Company, the Executive shall not have returned to the full-time performance of the Executive’s duties; and, further,
(ii)    the Executive becomes eligible to receive benefits under the LTD Plan; 
provided, however, if the Executive shall not agree with a determination to terminate his employment because of Disability, the question of the Executive’s disability shall be subject to the certification of a qualified medical doctor agreed to by the Company and the Executive.  The costs of such qualified medical doctor shall be paid for by the Company.
(t)    “Effective Date” has the meaning set forth in the preamble.
(u)    “Employee Plans” has the meaning set forth in Section 5(a).
(v)    “Employment Term” means the Initial Employment Term and any Renewal Term.
(w)    “Executive” has the meaning set forth in the preamble.
(x)    “Good Reason” means the occurrence of any of the following without the Executive’s written consent, unless within 30 days of the Executive’s written notice of termination of employment for Good Reason, the Company cures any such occurrence:
(i)    the Company’s material breach of this Agreement; 
(ii)    a material reduction in the Executive’s Base Salary (that is not agreed to by the Executive), as compared to the corresponding circumstances in place on the Effective Date as may be increased pursuant to Section 4, except for across-the-board reductions generally applicable to all senior executives; or
(iii)    relocation of the Executive’s Place of Performance more than 50 miles without the Executive’s consent.
Any occurrence of Good Reason shall be deemed to be waived by the Executive unless the Executive provides the Company written notice of termination of employment for Good Reason within 60 days of the event giving rise to Good Reason.
(y)    “Initial Employment Term” has the meaning set forth in Section 2.

Page 22 of 26

(z)    “JAMS” has the meaning set forth in Section 16.
(aa)    “LTD Plan” has the meaning set forth in Section 9(e).
(bb)    “LTSIP” means the Company’s 2007 Omnibus Incentive Plan, effective May 8, 2007, as may be amended from time to time, or any successor plan, program or arrangement thereto.
(cc)    “LTSIP Target Award Opportunities” has the meaning set forth in Section 4(b)(ii).
(dd)    “Participant” has the meaning set forth in the CIC Severance Plan.
(ee)    “Parties” has the meaning set forth in the preamble.
(ff)    “Party” has the meaning set forth in the preamble.
(gg)    “Payment Period” means the period of 18 continuous months, as measured from the Executive’s Separation from Service. 
(hh)    “Place of Performance” has the meaning set forth in Section 8.
(ii)     “Proprietary Information” has the meaning set forth in Section 10(a)(i).
(jj)    “Release” means a release of claims in a form provided to the Executive by the Company in connection with the payment of benefits under this Agreement.
(kk)    “Release Consideration Period” means the period of time pursuant to the terms of the Release afforded the Executive to consider whether to sign it.
(ll)    “Release Revocation Period” means the period pursuant to the terms of an executed Release in which it may be revoked by the Executive.
(mm)    “Renewal Term” has the meaning set forth in Section 2.
(nn)    “Restricted Period” means the 18-month period following the Executive’s date of termination of employment with the Company for any reason or Cause, including for nonrenewal of this Agreement, Disability, termination by the Company or termination by the Executive.
(oo)    “Separation from Service” means “separation from service” from the Company and its subsidiaries as described under Code Section 409A and the guidance and Treasury regulations issued thereunder.  Separation from Service will occur on the date on which the Executive’s level of services to the Company decreases to 21 percent or less of the average 

Page 23 of 26

level of services performed by the Executive over the immediately preceding 36-month period (or if providing services for less than 36 months, such lesser period) after taking into account any services that the Executive provided prior to such date or that the Company and the Executive reasonably anticipate the Executive may provide (whether as an employee or as an independent contractor) after such date.   For purposes of the determination of whether the Executive has had a Separation from Service, the term “Company” shall mean the Company and any affiliate with which the Company would be considered a single employer under Code Section 414(b) or 414(c), provided that in applying Code Sections 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Code Sections 1563(a)(1), (2) and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2.  In addition, where the use of such definition of “Company” for purposes of determining a Separation from Service is based upon legitimate business criteria, in applying Code Sections 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the language “at least 20 percent” is used instead of “at least 80 percent” at each place it appears in Code Sections 1563(a)(1), (2) and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 20 percent” is used instead of “at least 80 percent” at each place it appears in Treasury Regulation Section 1.414(c)-2.  
(pp)    “Separation Plan” means the Company’s Separation Plan Amended and Restated Effective August 13, 2006, as may be amended from time to time or any successor plan, program, arrangement or agreement thereto.
(qq)    “Specified Employee” shall mean an Executive who is a “specified employee” for purposes of Code Section 409A, as administratively determined by the Board in accordance with the guidance and Treasury regulations issued under Code Section 409A.
(rr)     “STIP” means the Company’s short-term incentive plan under Section 8 of the Company’s 2007 Omnibus Incentive Plan, effective May 8, 2007, and amended and restated February 11, 2008, as may be amended from time to time, or any successor plan, program or arrangement thereto.
(ss)    “Subsidiary” shall mean any entity, corporation, partnership (general or limited), limited liability company, entity, firm, business organization, enterprise, association or joint venture in which the Company directly or indirectly controls ten percent (10%) or more of the voting interest.  Notwithstanding the foregoing, for purposes of Section 3(a), “Subsidiary” shall mean any affiliate with which the Company would be considered a single employer as described in the definition of Separation from Service.
(tt)    “Target Bonuses” has the meaning set forth in Section 4(b)(i).

Page 24 of 26

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

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

By:___________________________________
Sandra J. Price
Sr. Vice President – Human Resources

EXECUTIVE

______________________________________ 
William Malloy

Page 25 of 26

Attachment A
Relocation Policy Exceptions

The Executive is approved for a one-time extension of the 12-month eligibility period referenced in the applicable senior officer relocation policy to September 26, 2013 (but without tax gross up for the shipment of household goods and/or final move travel expenses if they become taxable as a result of the extension), which shall mean at a minimum that the relocation process and all applications for reimbursements under the policy must be completed no later than September 26, 2013, and the forfeiture and repayment provisions of the policy will be extended by an additional 12 months.

Page 26 of 262011 Exhibit 10.46

Exhibit 10.46

SPRINT NEXTEL CORPORATION 
DEFERRED COMPENSATION PLAN

(EFFECTIVE JANUARY 1, 2006 AND

AMENDED AND RESTATED ON MAY 17, 2006, DECEMBER 11, 2008,
FEBRUARY 17, 2011 AND NOVEMBER 17, 2011)

Table of Contents

	
					
	SECTION 1
	INTRODUCTION
	1

	1.1
	

	Statement of Plan
	1

	1.2
	

	Definitions
	1

	 
	1.2.1
	Account
	1

	 
	1.2.2
	Annual Valuation Date
	1

	 
	1.2.3
	Base Salary
	1

	 
	1.2.4
	Beneficiary
	1

	 
	1.2.5
	Beneficiary Designation Form
	1

	 
	1.2.6
	Board Member
	1

	 
	1.2.7
	Change in Control
	2

	 
	1.2.8
	Code
	2

	 
	1.2.9
	Committee
	2

	 
	1.2.10
	Compensation
	2

	 
	1.2.11
	Disability, Disabled
	2

	 
	1.2.12
	Distribution Date
	2

	 
	1.2.13
	Effective Date
	2

	 
	1.2.14
	Eligible Employee
	2

	 
	1.2.15
	Embarq
	2

	 
	1.2.16
	Embarq Share Unit
	3

	 
	1.2.17
	Embarq Share Unit Fund
	3

	 
	1.2.18
	ERISA
	3

	 
	1.2.19
	Initial Deferral Election Form
	3

	 
	1.2.20
	Investment Election Form
	3

	 
	1.2.21
	Investment Fund
	3

	 
	1.2.22
	Limit
	3

	 
	1.2.23
	401(k) plan
	3

	 
	1.2.24
	Matching Contribution
	3

	 
	1.2.25
	Matching Contribution Account
	3

	 
	1.2.26
	Participant
	3

	 
	1.2.27
	Plan
	3

	 
	1.2.28
	Plan Statement
	4

	 
	1.2.29
	Plan Year
	4

	 
	1.2.30
	Pre-Tax Contributions
	4

	 
	1.2.31
	Pre-Tax Contribution Account
	4

	 
	1.2.32
	Recapitalization Multiple
	4

	 
	1.2.33
	Record Date
	4

	 
	1.2.34
	Separation and Distribution Agreement
	4

	 
	1.2.35
	Separation From Service
	4

	 
	1.2.36
	Specified Employee
	5

	 
	1.2.37
	Sprint Nextel
	5

	 
	1.2.38
	Sprint Nextel Share Unit
	5

	 
	1.2.39
	Sprint Nextel Share Unit Fund
	5

-i-

Table of Contents

	
					
	 
	1.2.40
	Subsequent Deferral Election Form
	5

	 
	1.2.41
	Valuation Date
	5

	1.3
	

	Rules of Interpretation
	5

	1.4
	

	Legal Construction
	6

	SECTION 2
	PARTICIPATION
	6

	2.1
	

	Participation
	6

	2.2
	

	Initial Deferral Election
	7

	 
	2.2.1
	Pre-Tax Contribution Election
	7

	 
	2.2.2
	Distribution Election
	7

	2.3
	

	Specific Exclusions
	7

	2.4
	

	Suspension of Pre-Tax Contributions
	7

	SECTION 3
	ADJUSTMENT OF ACCOUNTS
	7

	3.1
	

	Credits to Accounts
	7

	 
	3.1.1
	Pre-Tax Contributions
	7

	 
	3.1.2
	Matching Contributions
	7

	3.2
	

	Adjustments of Account
	8

	 
	3.2.1
	Initial Election of Investment Funds
	8

	 
	3.2.2
	Changes to Investment Fund Elections
	8

	 
	3.2.3
	Proportionate Allocation
	8

	 
	3.2.4
	Investment Funds
	8

	 
	3.2.5
	Embarq Share Units
	8

	 
	3.2.6
	Debits and Credits to Accounts
	9

	3.3
	

	No Actual Investment
	9

	3.4
	

	FICA and Other Taxes
	10

	 
	SECTION 4
	VESTING OF ACCOUNT
	10

	 
	SECTION 5
	DISTRIBUTION
	10

	5.1
	

	General Valuation Date
	10

	5.2
	

	General Distribution Date
	10

	 
	5.2.1
	Time of Distribution of Pre-Tax Contributions
	10

	 
	5.2.2
	Time of Distribution of Matching Contributions
	11

	 
	5.2.3
	Acceleration of Benefits
	11

	 
	5.2.4
	Delay for Specified Employees
	11

	5.3
	

	Form of Distribution
	11

	 
	5.3.1
	Pre-Tax Contribution Account.
	11

	 
	5.3.2
	Matching Contribution Account
	11

	 
	5.3.3
	Installment Amounts
	11

	 
	5.3.4
	Delay for Taxes
	12

	5.4
	

	Subsequent Changes in Time and Form of Payment
	12

	5.5
	

	Designation of Beneficiaries
	12

	 
	5.5.1
	Right to Designate
	13

	 
	5.5.2
	Failure of Designation
	13

	 
	5.5.3
	Disclaimers by Beneficiaries
	13

-ii-

Table of Contents

	
					
	 
	5.5.4
	Definitions
	14

	 
	5.5.5
	Special Rules
	14

	 
	5.5.6
	No Spousal Rights
	14

	5.6
	

	Facility of Payment
	15

	SECTION 6
	UNFUNDED PLAN
	15

	6.1
	

	Unfunded Plan
	15

	6.2
	

	Spendthrift Provision
	15

	SECTION 7
	AMENDMENT AND TERMINATION
	16

	7.1
	

	Amendment
	16

	7.2
	

	Termination
	16

	 
	7.2.1
	Dissolution or Bankruptcy
	16

	 
	7.2.2
	Discretionary Termination
	16

	SECTION 8
	DETERMINATIONS - RULES AND REGULATIONS
	16

	8.1
	

	Determinations
	16

	8.2
	

	Rules and Regulations
	17

	8.3
	

	Method of Executing Instruments
	17

	8.4
	

	Claims Procedure
	17

	 
	8.4.1
	Initial Claim
	17

	 
	8.4.2
	Notice of Initial Adverse Determination
	17

	 
	8.4.3
	Claims on Review
	17

	 
	8.4.4
	Notice of Adverse Determination for Claim on Review
	18

	8.5
	

	Claims and Review Procedure for Disability Claims Filed under the Plan
	18

	8.6
	

	Rules
	18

	8.7
	

	Information Furnished by Participants
	20

	SECTION 9
	PLAN ADMINISTRATION
	20

	9.1
	

	Authority
	20

	 
	9.1.1
	Majority Decisions
	21

	9.2
	

	Miscellaneous
	21

	 
	9.2.1
	Conflict of Interest
	21

	 
	9.2.2
	Dual Capacity
	21

	 
	9.2.3
	Administrator
	21

	 
	9.2.4
	Service of Process
	21

	 
	9.2.5
	Administrative Expenses
	21

	SECTION 10
	DISCLAIMERS
	22

	10.1
	

	No Implied Employment Contract
	22

	10.2
	

	Source of Payment
	22

	10.3
	

	Delegation
	22

	10.4
	

	Prohibition on Acceleration of Payments
	22

	10.5
	

	Code Section 409A
	22

	10.6
	

	Execution
	23

-iii-

SPRINT NEXTEL CORPORATION DEFERRED COMPENSATION PLAN
SECTION 1 
 
INTRODUCTION
1.1    Statement of Plan.  Effective January 1, 2006, Sprint Nextel Corporation (hereinafter sometimes referred to as "Sprint Nextel") created this nonqualified, unfunded, elective deferral Plan for the purpose of allowing members of its Board of Directors and a select group of its management and highly compensated employees to defer the receipt of compensation which would otherwise be paid to them.  Effective May 17, 2006, Sprint Nextel amended and restated the Plan to reflect the spin-off of Embarq from Sprint Nextel.  Effective December 11, 2008, Sprint Nextel   amended and restated  the Plan to comply with the final Treasury regulations issued under Code Section 409A.   Effective February 17, 2011, Sprint Nextel amended the Plan clarifying the timing of valuation of a Plan Participant’s Account for purposes of distributions under the Plan.  Effective November 17, 2011, Sprint Nextel amended and restated the Plan removing the “excess compensation” deferral option. 
1.2    Definitions.  When the following terms are used herein with initial capital letters, they shall have the following meanings:
1.2.1    Account – the separate bookkeeping account(s) representing the unfunded and unsecured general obligation of Sprint Nextel that are maintained for the purpose of determining each Participant's or Beneficiary's interest in the Plan.  To the extent determined by the Committee, the Committee may establish a separate Pre-Tax Contribution Account and a separate Matching Contribution Account and such other accounts and subaccounts as it determines from time to time to be advisable.  For convenience, and unless the context otherwise indicates, "Account" shall refer to a Participant's or Beneficiary's entire interest under the Plan.
1.2.2    Annual Valuation Date – each December 31.
1.2.3    Base Salary – an employee's salary inclusive of any amounts contributed on behalf of the Employee to a cafeteria plan or cash or deferred arrangement or a qualified transportation fringe plan and not includible in income under Code Sections 125, 402(g) or 132(f) and inclusive of any Pre-Tax Contributions made from Base Salary.
1.2.4    Beneficiary -- a person designated by a Participant (or automatically by operation of this Plan Statement) to receive all or a part of the Participant's Account in the event of the Participant's death prior to its complete distribution.  A person so designated shall not be considered a Beneficiary until the death of the Participant.
1.2.5    Beneficiary Designation Form -- the form prescribed by the Committee upon which a Participant may designate a Beneficiary.
1.2.6    Board Member – a member of the Board of Directors of Sprint Nextel.

1

1.2.7    Change in Control – a "Change in Control" means a change in ownership of Sprint Nextel, a change in the effective control of Sprint Nextel or a change in the ownership of a substantial portion of the assets of Sprint Nextel as described in Treasury regulations issued under Code Section 409A.
1.2.8    Code – the Internal Revenue Code of 1986, as amended, including applicable regulations for the specified section of the Code.  Any reference in this Plan Statement to a section of the Code, including the applicable regulation, shall be considered also to mean and refer to any subsequent amendment or replacement of that section or regulation.
1.2.9    Committee – the Employee Benefits Committee of Sprint Nextel, as appointed by management of Sprint Nextel.
1.2.10    Compensation – a Board Member's annual retainer and meeting fees or, in the case of a Participant who is an employee of Sprint Nextel or one of its subsidiaries, (a) for purposes of making Pre-Tax Contributions made without regard to the numeric Limit, the definition of Compensation used in the Sprint Nextel 401(k) Plan shall be used except that Pre-Tax Contributions to the Plan shall be included in Compensation, commissions shall not be included and the limit imposed by Code Section 401(a)(17) will not apply; (b) for purposes of determining when a Participant has become eligible to make Pre-Tax Contributions made above the Limit and to receive Matching Contributions, and for purposes of determining the amount of any Matching Contributions, the definition of Compensation used in the Sprint Nextel 401(k) Plan shall be used except that Pre-Tax Contributions to the Plan and commissions shall be included in Compensation, and only compensation above the numeric limit imposed by Code Section 401(a)(17) will be considered.  Notwithstanding anything to the contrary in the Plan, Pre-Tax Contributions by Eligible Employees may be made only in Base Salary and incentive compensation and not in sales compensation or any other form of compensation.
1.2.11    Disability, Disabled – a Participant shall be considered to have a Disability or to be Disabled if such Participant has been approved to receive Social Security Disability.
1.2.12    Distribution Date – the "distribution date" as defined in the Separation and Distribution Agreement.
1.2.13    Effective Date -- January 1, 2006.
1.2.14    Eligible Employee – an active employee of Sprint Nextel or a Sprint Nextel subsidiary who has a title of Director or above (or the equivalent thereof), but excluding employees who are not subject to United States income tax withholding.  Except as otherwise provided in Section 1.2.35, all subsidiaries of Sprint Nextel will be participating subsidiaries unless specifically excluded from participation by the Committee.
1.2.15    Embarq – Embarq Corporation, a Delaware corporation.

2

1.2.16    Embarq Share Unit – a phantom share unit representing a share of Embarq's common stock.
1.2.17    Embarq Share Unit Fund – the Investment Fund comprised solely of Embarq Share Units, which Investment Fund shall cease to exist as of December 31, 2006.
1.2.18    ERISA – the Employee Retirement Income Security Act of 1974, as amended.
1.2.19    Initial Deferral Election Form – the form prescribed by the Committee pursuant to which a Participant may elect to make a Pre-Tax Contribution of his or her Compensation to an Account established under this Plan and may elect the time and form of distribution of his or her Account.
1.2.20    Investment Election Form – the form prescribed by the Committee from time to time pursuant to which a Participant may select the hypothetical investment of his or her Account pursuant to the provisions of Section 3.
1.2.21    Investment Fund – any of the hypothetical investment funds established by the Committee pursuant to the provisions of Section 3.
1.2.22    Limit – Compensation limit imposed by Code Section 401(a)(17) limiting the amount of compensation taken into account for purposes of contributions to the 401(k) plan.  The 2008 limit is $230,000 (as indexed).
1.2.23    401(k) plan – the Sprint Nextel 401(k) plan.
1.2.24    Matching Contribution – employer contributions to the Matching Contribution Account pursuant to Section 3.1.2.
1.2.25    Matching Contribution Account – the Account maintained for a Participant to which is credited Matching Contributions (if any), pursuant to Section 3.1.2.
1.2.26    Participant – an outside Board Member or an Eligible Employee of Sprint Nextel who elects to participate in accordance with the terms of this Plan.  A Board Member or an employee who has become a Participant shall continue as a Participant until the earlier of (a) the Participant's death or (b) the date on which the Participant's entire Account balance has been distributed.  If an employee is no longer a part of a select group of highly compensated employees, the Participant will no longer be permitted to defer compensation after completion of deferrals already elected.
1.2.27    Plan – the nonqualified, income deferral program maintained by Sprint Nextel established for the benefit of Participants eligible to participate therein, as set forth in this Plan Statement.  (As used herein, "Plan" does not refer to the documents pursuant to which the Plan is maintained.  Those documents are referred to herein as the "Plan Statement").  The Plan shall be referred to as the "Sprint Nextel Deferred Compensation Plan."

3

1.2.28    Plan Statement – this document entitled "Sprint Nextel Deferred Compensation Plan" as adopted by Sprint Nextel effective January l, 2006, and as the same may be amended from time to time thereafter.
1.2.29    Plan Year – the calendar year.
1.2.30    Pre-Tax Contributions – contributions made to the Plan pursuant to the provisions of Section 2.2.1.
1.2.31    Pre-Tax Contribution Account – the Account(s) maintained for a Participant to which is credited such Participant's Pre-Tax Contributions.
1.2.32    Recapitalization Multiple – the "recapitalization multiple" as defined in the Separation and Distribution Agreement.
1.2.33    Record Date – the "record date" as defined in the Separation and Distribution Agreement.
1.2.34    Separation and Distribution Agreement – the Separation and Distribution Agreement by and between Sprint Nextel and Embarq for the purpose of separating Sprint Nextel's existing businesses into two independent businesses and distributing on a pro rata basis to holders of Sprint Nextel common stock all of the outstanding shares of common stock of Embarq.
1.2.35    Separation From Service – shall mean a "separation from service" from Sprint Nextel and its subsidiaries as described under Code Section 409A and the guidance and Treasury regulations issued thereunder.  Except as otherwise required to comply with Code Section 409A, an employee shall be considered not to have had a Separation From Service where the level of bona fide services performed continues at a level that is at least 21 percent or more of the average level of service performed by the employee during the immediately preceding 36-month period (or if providing services for less than 36 months, such lesser period) after taking into account any services that the Participant provided prior to such date and that Sprint Nextel and the Participant reasonably anticipate the Participant may provide (whether as an employee or independent contractor) after such date.  
For purposes of the determination of whether a Participant has had a “separation from service” as described under Code Section 409A and the guidance and Treasury regulations issued thereunder, the terms “Sprint Nextel,” “employer” and “service recipient” mean Sprint Nextel Corporation and any affiliate with which Sprint Nextel Corporation would be considered a single employer under Code Section 414(b) or 414(c), provided that in applying Code Sections 1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Code Sections 1563(a)(1), (2) and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 50 percent” is used 

4

instead of “at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2.  
1.2.36    Specified Employee – shall mean a Participant who is a "specified employee" for purposes of Code Section 409A, as administratively determined by the Board of Directors of Sprint Nextel in accordance with the guidance and Treasury regulations issued under Code Section 409A.  
1.2.37    Sprint Nextel – Sprint Nextel Corporation, a Kansas corporation.  References herein to Sprint Nextel shall also refer to any successor of Sprint Nextel that adopts the Plan.  Except as hereinafter provided, functions generally assigned to Sprint Nextel shall be discharged by the Committee or delegated and allocated as provided herein.
1.2.38    Sprint Nextel Share Unit – a phantom share unit representing a share of Sprint Nextel's common stock.
1.2.39    Sprint Nextel Share Unit Fund – the Investment Fund comprised solely of Sprint Nextel Share Units.
1.2.40    Subsequent Deferral Election Form – the form prescribed by the Committee pursuant to which a Participant may elect to change the time or form of distribution of his or her Pre-Tax Contribution Account.
1.2.41    Valuation Date – each Annual Valuation Date and the last business day of each calendar month.
1.3    Rules of Interpretation.  An individual shall be considered to have attained a given age on such individual's birthday for that age (and not on the day before).  Individuals born on February 29 in a leap year shall be considered to have their birthdays on February 28 in each year that is not a leap year.  Whenever appropriate, words used herein in the singular may be read in the plural, or words used herein in the plural may be read in the singular; the masculine may include the feminine; and the words "hereof," "herein" or "hereunder" or other similar compounds of the word "here" shall mean and refer to this entire Plan Statement and not to any particular paragraph or section of this Plan Statement unless the context clearly indicates to the contrary.  The titles given to the various sections of this Plan Statement are inserted for convenience of reference only and are not part of this Plan Statement, and they shall not be considered in determining the purpose, meaning or intent of any provision hereof.  As to Participants who are employees, this Plan Statement shall be construed and administered to create an unfunded plan providing deferred compensation for a select group of management or highly compensated employees, which plan is exempt from the requirements of Parts 2, 3 and 4 of Title I of ERISA, and which qualifies for a form of simplified, alternative compliance with the reporting and disclosure requirements of Part 1 of Title I of ERISA.  It is further intended that this Plan shall constitute a nonqualified deferred compensation plan that satisfies the conditions for a deferral of income pursuant to the provisions of Code Section 409A.  Any reference in this Plan Statement to a statute or regulation shall be considered also to mean and refer to any subsequent amendment or replacement of that statute or regulation.

5

1.4    Legal Construction.  This document is intended to be governed by and shall be construed in accordance with the Code, ERISA to the extent applicable and, to the extent not preempted by ERISA, the laws of the State of Kansas.
SECTION 2 
 
PARTICIPATION
2.1    Participation.  A Board Member or an Eligible Employee may enroll to become a Participant in this Plan for any Plan Year provided that such Board Member or Eligible Employee completes and files an Initial Deferral Election Form acceptable to the Committee, and provided that the Eligible Employee has not made a withdrawal due to hardship under Treasury Regulations Section 1.401(k)-1(d)(3) from any Code Section 401(k) plan sponsored by Sprint Nextel within the prior six months.
2.2    Initial Deferral Election.  A Participant shall make an initial deferral election by filing an Initial Deferral Election Form with the Committee for each Plan Year for which Pre-Tax Contributions are made to the Plan at such time and in such manner as the Committee shall from time to time prescribe consistent with Section 2.2.1 below and requirements of Code Section 409A(a)(4)(B).
2.2.1    Pre-Tax Contribution Election.  In conjunction with each deferral election made by a Participant for a Plan Year, such Initial Deferral Election Form shall specify, in increments of 1%, the amount or portion of the Participant’s Base Salary which is earned during such following Plan Year and short-term incentive compensation which is earned during such following Plan Year which shall not be paid to the Participant but instead shall be credited to the Plan as a Pre-Tax Contribution.  Such Pre-Tax Contribution shall not exceed (a) in the case of a Participant who is an employee, an amount equal to 50% of such employee's Base Salary and 75% of such employee's short-term incentive payment; or (b) in the case of a Board Member (who is not also an employee), up to 100% of such Board Member's retainer and meeting fees.  Eligible Employees may use the Initial Deferral Election Form to designate that their Pre-Tax Contributions be made on all Compensation as defined in 1.2.10(a) (beginning 1/1/2012), or only on Compensation that exceeds the Limit (before 1/1/2012).  Except as provided in the following paragraph, such Pre-Tax Contribution election shall not be effective for any Plan Year unless filed by the last day of the Plan Year preceding the Plan Year in which the Compensation sought to be deferred is to be earned or such earlier date as may be designated by the Committee, shall only be effective as to Compensation that is earned after the Pre-Tax Contribution election has been accepted by the Committee, and, except as provided in Section 2.4, shall be irrevocable as of the last day of the Plan Year preceding the Plan Year in which the Compensation sought to be deferred is to be earned.  Base Salary payable after the last day of the Plan Year solely for services performed during the final payroll period described in Code Section 3401(b) containing December 31 shall be treated as compensation earned during the subsequent Plan Year.
Notwithstanding the foregoing, with respect to "performance-based compensation" (as defined under Code Section 409A) attributable to services performed over a period of at 

6

least twelve (12) months, a Participant may, under uniform rules adopted by the Committee, file an Initial Deferral Election Form with the Committee no later than six (6) months before the end of the performance period for which such performance-based compensation is paid so long as the Participant has performed services continuously from the date performance criteria are established through the date of the election.  This rule shall apply only to Compensation determined by the Committee to be "bonus compensation" where (a) the payment or amount of the Compensation is contingent upon the satisfaction of organizational or individual performance criteria (including subjective criteria in certain circumstances), and (b) the performance criteria are not substantially certain to be satisfied at the time of election.
2.2.2    Distribution Election.  With respect to each initial deferral election made by a Participant pursuant to Section 2.2.1, such Participant shall, pursuant to Sections 5.1 and 5.2, below, also elect the time and form of distribution of such Pre-Tax Contributions.
2.3    Specific Exclusions.  Notwithstanding anything to the contrary in this Plan Statement or in any written communication, summary, resolution, document or oral communication, no individual shall be a Participant in this Plan, develop benefits under this Plan or be entitled to receive benefits under this Plan (either for himself or herself or his or her survivors) unless such individual is either a member of a select group of management or highly compensated employees (as that expression is used in Section 201(2) of ERISA) or a Board Member.
2.4    Suspension of Pre-Tax Contributions.  If a Participant has made a withdrawal due to hardship under Treasury Regulations Section 1.401(k)-1(d)(3), all remaining Pre-Tax Contributions for the year in which such hardship distribution was made shall be cancelled and such Participant shall not be permitted to make any further Pre-Tax Contributions to the Plan absent the acceptance of a new Pre-Tax Contribution Election Form made for the first Plan Year beginning at least six months after the hardship withdrawal for that Participant consistent with Section 2.2.  
SECTION 3 
 
ADJUSTMENT OF ACCOUNTS
3.1    Credits to Accounts.  Accounts shall be established for each Participant and shall be adjusted each Valuation Date.
3.1.1    Pre-Tax Contributions.  The Participant's Pre-Tax Contribution Account shall be credited with the amount of such contribution within an administratively reasonable time following the date that the amount elected by the Participant as a Pre-Tax Contribution would otherwise be paid to such Participant.
3.1.2    Matching Contributions.  At such time as the Committee shall determine, the Matching Contribution Account of each Participant who is an Eligible Employee shall be credited with a Matching Contribution equal to the lesser of 100% of such Participant's Pre-Tax Contributions, and (b) the percentage amount, applied to their Compensation as described in Section 1.2.10(b), equal to the maximum percentage amount of their 

7

compensation that is eligible for a matching contribution in the 401(k) plan that is in effect on the last day of the Plan Year.  The Participant must be an active Eligible Employee on the last business day of the year to receive the Matching Contribution, if any.
3.2    Adjustments of Account.  Subject to such rules as may be prescribed by the Committee from time to time, amounts shall be credited or debited to a Participant's Account in connection with the deemed investment thereof as follows:
3.2.1    Initial Election of Investment Funds.  In connection with a Participant's initial enrollment into the Plan, a Participant shall elect one or more Investment Funds on an Investment Election Form filed with the Committee to be used as an index to determine the additional amounts to be credited or debited to such Participant's Account.
3.2.2    Changes to Investment Fund Elections.  A Participant may (but is not required to) elect, by filing a new Investment Election Form pursuant to rules established from time to time by the Committee, to add, delete or modify one or more of his or her Investment Fund(s) elections with respect to his or her existing Account and/or future Pre-Tax Contributions, with such election to be effective as of the later of the next following business day or the business day following three months after the effective date of the last form provided, except as may otherwise be allowed by the Committee.
3.2.3    Proportionate Allocation.  Subject to such rules as the Committee may from time to time prescribe, Participant investment elections described in this Section shall be made in increments of one percentage point (1%).
3.2.4    Investment Funds.  The Participant may elect one or more of the Investment Funds selected by the Committee from time to time as hypothetical investments.  One of the Investment Funds that a Participant may designate shall be the Sprint Nextel Share Unit Fund.  The Committee may, in its sole discretion, discontinue, substitute or add any other Investment Fund.  The Committee shall also have the power to direct that any separate Investment Funds shall be consolidated with (or "mapped" to) any other Investment Fund.  Each such change shall take effect at such time or times and under such rules as shall be established by the Committee.
3.2.5    Embarq Share Units.  The following provisions shall apply with respect to Embarq Share Units:
		
	(a)
	Effective as of the Distribution Date, each Participant with a hypothetical investment in the Sprint Nextel Share Unit Fund as of the Record Date shall be credited with Embarq Share Units equal in amount to (i) the number of Sprint Nextel Share Units credited to the Participant under the Sprint Nextel Share Unit Fund as of the Record Date, multiplied by (ii) the Recapitalization Multiple.

		
	(b)
	From time to time between the Distribution Date and December 31, 2006 (but subject to such rules as the Committee may from time to time prescribe), a Participant may elect to exchange all or a portion of the Participant's Embarq Share Units for investments in other Investment Funds.  However, a Participant 

8

may not at any time elect to exchange any portion of the Participant's other Investment Funds for Embarq Share Units.
		
	(c)
	Effective as of December 31, 2006, the Embarq Share Unit Fund shall cease to exist.  As of such time, all Embarq Share Units credited thereunder shall be converted to Sprint Nextel Share Units based on the fair market value of such units, in the manner determined by the Committee in its discretion.

3.2.6    Debits and Credits to Accounts.  Adjustments to Accounts shall be made in accordance with the following rules:
		
	(a)
	To the extent administratively feasible, any Account will be valued daily at the fair market value thereof by adding (i) the fair market value of all investments reflected in the Account, (ii) any accrued interest or declared dividends (as of the record date) on such hypothetical investments not reflected in (i) above, and (iii) an amount equal to the hypothetical cash reflected in the Account; and subtracting therefrom any liabilities of the Account.  Participant's Accounts will be adjusted daily by allocating among them the earnings or losses of each Investment Fund since the previous day in proportion to each Participant's portion of the Investment Fund balance immediately following the previous day's adjustment.  To the extent daily Account valuations and adjustments are not administratively feasible, such valuations and adjustments shall occur as frequently as administratively feasible.

		
	(b)
	Distributions shall be made in cash or cash equivalents and made pursuant to Section 5.  The amount paid upon such a distribution shall be based on the value immediately after the adjustment of a Participant's Account on the effective date of the withdrawal or distribution.

Notwithstanding the foregoing, the Committee may establish revised or additional rules for the adjustment of Accounts including, without limiting the generality of the foregoing, the times when contributions shall be credited under this Section 3 and the manner of allocating gains and losses of Accounts.
3.3    No Actual Investment.  Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Investment Funds are to be used for measurement purposes only, and a Participant's election of any such Investment Fund, the allocation to his or her Account in respect thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account shall not be considered or construed in any manner as an actual investment of his or her Account in any such Investment Fund.  In the event that Sprint Nextel or the trustees of the trusts (if any), in their own discretion, decide to invest funds in any or all of the Investment Funds, no Participant shall have any rights in or to such investments themselves.  Without limiting the foregoing, a Participant's Account shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by Sprint Nextel or any trust; the Participant shall at all times remain an unsecured creditor of Sprint Nextel.

9

3.4    FICA and Other Taxes.  For each Plan Year in which credits are made for or on behalf of a Participant, Sprint Nextel, or its applicable subsidiaries, shall withhold from that portion of the Participant's Base Salary or incentive that is not being deferred, in a manner determined by the Committee, the Participant's share of FICA and other employment taxes.  If Base Salary or incentive compensation that is not being deferred is insufficient for this purpose, the Committee may reduce any Pre-Tax Contribution of the Participant in order to withhold the Participant's share of FICA and other employment taxes.
SECTION 4 
 
VESTING OF ACCOUNT
4.1    Vesting of Pre-Tax Contribution Accounts.  The Pre-Tax Contribution Accounts of Participants shall be fully (100%) vested and nonforfeitable at all times.
4.2    Vesting of Matching Contribution Accounts.  The Matching Contribution Account of a Participant shall be forfeited if the Participant has a Termination for Cause.  "Termination for Cause" shall mean, in the case of an employee, an involuntary termination of employment because (i) the employee has materially breached Sprint Nextel's Code of Conduct, or the code of conduct of the employer; (ii) the employee has materially breached the Sprint Nextel Employee Agreement Regarding Property Rights and Business Practices (as it may be amended and renamed from time to time); (iii) the employee has engaged in acts or omissions constituting dishonesty, intentional breach of a fiduciary obligation, or intentional acts of wrongdoing or misfeasance; or (iv) the employee has acted intentionally and in bad faith in a manner that results in a material detriment to the assets, business, or prospects of the employer.
SECTION 5 
 
DISTRIBUTION
5.1    General Valuation Date.  A Participant's Account shall be valued on the last business day of the month of the event giving rise to the payment, which month shall be, for the purposes of an event that is a specific future year (i.e., without a designated month in such year), January of such year.
5.2    General Distribution Date.  A Participant's Account shall be paid (or commence to be paid, as applicable) within forty-five (45) days of the first Valuation Date on or following the event giving rise to the payment, which Valuation Date shall be, for the purposes of an event that is a specific future year, that Valuation Date in January of such year.  
5.2.1    Time of Distribution of Pre-Tax Contributions.  A Participant must, with respect to each separate initial deferral election made pursuant to Section 2.2 above, elect to commence payment of such Pre-Tax Contribution (together with gains and losses thereon) in accordance with Section 5.3.1 on either of the following dates:
		
	(a)
	Such Participant's Separation From Service; or

10

		
	(b)
	A specific future month or year, but not earlier than five (5) years from the effective date of such initial deferral election.  

5.2.2    Time of Distribution of Matching Contributions.  A Participant's Matching Contribution Account shall be paid upon such Participant's Separation From Service.
5.2.3    Acceleration of Benefits.  Notwithstanding the provisions of Section 5.2.1, the entire Pre-Tax Contribution Account balance of a Participant shall be paid in a lump sum on the first Valuation Date following the occurrence of any of the following events:
		
	(a)
	The Participant's death; or

		
	(b)
	The Participant’s Separation From Service if the total account value under the Plan as of such date is less than $20,000.

		
	(c)
	The Participant's Separation From Service within twelve (12) months after a Change in Control.

The entire Account balance of a Participant shall be accelerated and paid in the benefit form selected on the first Valuation Date following the determination by the Committee that the Participant is Disabled.
5.2.4    Delay for Specified Employees.  Notwithstanding the foregoing provisions of this Section 5.2, if a distribution is being made to a Specified Employee due to such employee’s Separation From Service (including a distribution on Separation from Service within twelve months of a Change in Control made pursuant to Section 5.2.3(c)), distribution shall be delayed until the earlier to occur of the Participant's death or the first Valuation Date that is six months and one day following the Participant's Separation From Service (the “Delay Period”).  Upon the expiration of the Delay Period, the payment delayed pursuant to this Section 5.2.4 shall be paid to the Participant, and any remaining installment payments shall be payable in accordance with Section 5.3.3.
5.3    Form of Distribution.
5.3.1    Pre-Tax Contribution Account.    The Participant shall elect in his or her Initial Deferral Election form to have his or her Pre-Tax Contribution Account distributed either in (a) a series of annual installments payable over at least two (2) but not more than ten (10) years, or (b) single lump sum payment.  No spouse, former spouse, Beneficiary or other person shall have any right to participate in the Participant's selection of a form of benefit.  All payments from such Pre-Tax Contribution Account shall be made in cash and shall be subject to the provisions of Section 5.2.3.
5.3.2    Matching Contribution Account.  A Participant's Matching Contribution Account shall be distributed in cash in a lump sum upon Separation From Service unless the Participant has a Termination for Cause.
5.3.3    Installment Amounts.  The amount of the annual installments shall be determined by dividing the value of the amount of the Account as of the Valuation Date 

11

determined by the Committee in accordance with Section 5.1 or its annual anniversary, by the number of remaining installment payments to be made (including the payment being determined), with the last scheduled installment resulting in a complete payment.  Notwithstanding the foregoing, the second and any subsequent installments that are made to a Specified Employee due to Separation From Service will be determined as of the annual anniversary of his or her Separation From Service, such that only the first such installment will be delayed for six months.
5.3.4    Delay for Taxes.  Notwithstanding the foregoing, a payment may be delayed if the Committee in its reasonable discretion reasonably anticipates that if such payment were made as scheduled, Sprint Nextel’s deduction with respect to such payment would not be permitted due to the application of Code Section 162(m), the Committee may unilaterally delay the time of the making or commencement of payments, provided that all scheduled payments to the Participant that could be delayed in accordance with this Section 5.3.4 are delayed.  Any payment delayed pursuant to the foregoing must be made either during the first taxable year of the Participant in which the Committee reasonably anticipates, or should reasonably anticipate, that if the payment is made during such year, the deduction of such payment will not be barred by Code Section 162(m) or during the period beginning with the date of the Participant’s Separation from Service and ending on the later of the last day of the taxable year of Sprint Nextel in which the Participant has a Separation from Service or the 15th day of the third month after the Participant’s Separation from Service.
5.4    Subsequent Changes in Time and Form of Payment.  A Participant may, before such Participant's Separation From Service, elect to delay a payment or to change the form of payment of his or her Pre-Tax Contribution Account by filing a properly completed Subsequent Deferral Election Form with the Committee, provided that:
		
	(a)
	Such election shall not be effective until twelve (12) months after it is filed with the Committee;

		
	(b)
	Such election shall require that the payment with respect to which the election is made shall be delayed for a period of not less than five (5) years from the date such payment would have been made absent such subsequent election; and

		
	(c)
	If the election relates to a delay in the payment of a Pre-Tax Contribution Account from a specific year and month previously elected by the Participant in his or her initial deferral election form or relates to a prior election of installment payments, such election cannot be made less than twelve (12) months before the date the payment was otherwise scheduled to be made or commence.

A Subsequent Deferral Election Form shall be accepted by the Committee only if such form complies with (a), (b) and ,if applicable, (c) above and shall be irrevocable on the date such form is accepted by the Committee.  

5.5    Designation of Beneficiaries.

12

5.5.1    Right to Designate.  Each Participant may designate, upon a Beneficiary Designation Form furnished by and filed with the Committee, one or more primary Beneficiaries or alternative Beneficiaries to receive all or a specified part of such Participant's Account in the event of such Participant's death.  The Participant may change or revoke any such designation from time to time without notice to or consent from any Beneficiary.  No such designation, change or revocation shall be effective unless executed by the Participant and received by the Committee during the Participant's lifetime.
5.5.2    Failure of Designation.  If a Participant:
		
	(a)
	fails to designate a Beneficiary,

		
	(b)
	designates a Beneficiary and thereafter revokes such designation without naming another Beneficiary, or

		
	(c)
	designates one or more Beneficiaries and such Beneficiaries so designated fail to survive the Participant, such Participant's Account, or the part thereof as to which such Participant's designation fails, as the case may be, shall be payable to the first class of the following classes of automatic Beneficiaries with a member surviving the Participant and (except in the case of surviving issue) in equal shares if there is more than one member in such class surviving the Participant:

Participant's surviving spouse 
Participant's surviving issue per stirpes and not per capita 
Representative of Participant's estate.
5.5.3    Disclaimers by Beneficiaries.  A Beneficiary entitled to a distribution of all or a portion of a deceased Participant's Account may disclaim an interest therein subject to the following requirements.  To be eligible to disclaim, a Beneficiary must be a natural person, must not have received a distribution of all or any portion of the Account at the time such disclaimer is executed and delivered, and must have attained at least age twenty-one (21) years as of the date of the Participant's death.  Any disclaimer must be in writing and must be executed personally by the Beneficiary before a notary public.  A disclaimer shall state that the Beneficiary's entire interest in the undistributed Account is disclaimed or shall specify what portion thereof is disclaimed.  To be effective, duplicate original executed copies of the disclaimer must be both executed and actually delivered to the Committee after the date of the Participant's death but not later than one hundred eighty (180) days after the date of the Participant's death.  A disclaimer shall be irrevocable when delivered to the Committee.  A disclaimer shall be considered to be delivered to the Committee only when actually received by the Committee.  The Committee shall be the sole judge of the content, interpretation and validity of a purported disclaimer.  Upon the filing of a valid disclaimer, the Beneficiary shall be considered not to have survived the Participant as to the interest disclaimed.  A disclaimer by a Beneficiary shall not be considered to be a transfer of an interest in violation of the provisions of Section 6.  The Committee shall recognize no other form of attempted disclaimer.

13

5.5.4    Definitions.  When used herein and, unless the Participant has otherwise specified in the Participant's Beneficiary Designation Form, when used in a Beneficiary's designation, "issue" means all persons who are lineal descendants of the person whose issue are referred to, including legally adopted descendants and their descendants but not including illegitimate descendants and their descendants; "child" means an issue of the first generation; "per stirpes" means in equal shares among living children of the person whose issue are referred to and the issue (taken collectively) of each deceased child of such person, with such issue taking by right of representation of such deceased child; and "survive" and "surviving" mean living after the death of the Participant.
5.5.5    Special Rules.  Unless the Participant has otherwise specified in the Participant's Beneficiary Designation Form, the following rules shall apply:
		
	(a)
	If there is not sufficient evidence that a Beneficiary was living at the time of the death of the Participant, it shall be deemed that the Beneficiary was not living at the time of the death of the Participant.

		
	(b)
	The automatic Beneficiaries specified in Section 5.5.2 and the Beneficiaries designated by the Participant shall become fixed at the time of the Participant's death so that, if a Beneficiary survives the Participant but dies before the receipt of all payments due such Beneficiary hereunder, such remaining payments shall be payable to the representative of such Beneficiary's estate.

		
	(c)
	If the Participant designates as a Beneficiary the person who is the Participant's spouse on the date of the designation, either by name or by relationship, or both, the dissolution, annulment or other legal termination of the marriage between the Participant and such person shall automatically revoke such designation.  The foregoing shall not prevent the Participant from designating a former spouse as a Beneficiary on a form executed by the Participant and received by the Committee after the date of the legal termination of the marriage between the Participant and such former spouse, and during the Participant's lifetime.

		
	(d)
	Any designation of a non-spouse Beneficiary by name that is accompanied by a description of relationship to the Participant shall be given effect without regard to whether the relationship to the Participant exists either then or at the Participant's death.

		
	(e)
	Any designation of a Beneficiary only by statement of relationship to the Participant shall be effective only to designate the person or persons standing in such relationship to the Participant at the Participant's death.

A Beneficiary designation is permanently void if it either is executed or is filed by a Participant who, at the time of such execution or filing, is then a minor under the law of the state of the Participant's legal residence.  The Committee shall be the sole judge of the content, interpretation and validity of a purported Beneficiary designation.
5.5.6    No Spousal Rights.  Except as required by law, no spouse or surviving spouse of a Participant and no person designated to be a Beneficiary shall have any rights or 

14

interest in the benefits accumulated under this Plan including, but not limited to, the right to be the sole Beneficiary or to consent to the designation of Beneficiaries (or the changing of designated Beneficiaries) by the Participant.
5.6    Facility of Payment.  In case of the legal disability, including minority, of a Participant or Beneficiary entitled to receive any distribution under the Plan, payment shall be made, if the Committee shall be advised of the existence of such condition:
		
	(a)
	to the duly appointed guardian, conservator or other legal representative of such Participant or Beneficiary, or

		
	(b)
	to a person or institution entrusted with the care or maintenance of the incompetent or disabled Participant or Beneficiary, provided such person or institution has satisfied the Committee that the payment will be used for the best interest and assist in the care of such Participant or Beneficiary, and provided further, that no prior claim for said payment has been made by a duly appointed guardian, conservator or other legal representative of such Participant or Beneficiary.

Any payment made in accordance with the foregoing provisions of this Section shall constitute a complete discharge of any liability or obligation of Sprint Nextel therefor.
SECTION 6 
 
UNFUNDED PLAN
6.1    Unfunded Plan.  The obligation of Sprint Nextel to make payments under this Plan constitutes only the unsecured (but legally enforceable) promise of Sprint Nextel to make such payments.  The Participant shall have no lien, prior claim or other security interest in any property of Sprint Nextel.  Sprint Nextel is not required to establish or maintain any fund, trust or account (other than a bookkeeping account) for the purpose of funding or paying the benefits promised under this Plan.  If such a fund is established, the property therein shall remain the sole and exclusive property of Sprint Nextel.
6.2    Spendthrift Provision.  Except as required by law, no Participant or Beneficiary shall have any interest in any Account which can be transferred nor shall any Participant or Beneficiary have any power to anticipate, alienate, dispose of, pledge or encumber the same while in the possession or control of Sprint Nextel, nor shall the Committee recognize any assignment thereof, either in whole or in part, nor shall any Account be subject to attachment, garnishment, execution following judgment or other legal process while in the possession or control of Sprint Nextel, except as may be required by law and as is consistent with the provisions of Code Section 409A.
The power to designate Beneficiaries to receive the Account of a Participant in the event of such Participant's death shall not permit or be construed to permit such power or right to be exercised by the Participant so as thereby to anticipate, pledge, mortgage or encumber such Participant's Account or any part thereof, and any attempt of a Participant so to exercise said power in 

15

violation of this provision shall be of no force and effect and shall be disregarded by the Committee.
SECTION 7 
 
AMENDMENT AND TERMINATION
7.1    Amendment.  By action of the Committee, Sprint Nextel reserves the power to amend the Plan Statement from time to time, retroactively and/or prospectively, as it deems appropriate.  No such amendment of the Plan Statement shall, however, reduce a Participant's Account earned as of the date of such amendment unless the Participant so affected consents in writing to the amendment.
7.2    Termination.  By action of the Human Capital & Compensation Committee, Sprint Nextel reserves the right to terminate the Plan and accelerate the payment of Accounts to Participants in accordance with one of the following provisions:
7.2.1    Dissolution or Bankruptcy.  At the discretion of Sprint Nextel within twelve (12) months of a corporate dissolution taxed under Code Section 331 or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that Accounts are included in the Participants’ gross incomes in the latest of the following years (or, if earlier, the taxable  year in which the amount is actually or constructively received): (a) the calendar year in which the Plan termination occurs; (b) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (c) the first calendar year in which payment is administratively feasible.
7.2.2    Discretionary Termination.  At the discretion of Sprint Nextel, provided that (a) all other arrangements sponsored by Sprint Nextel that would be aggregated with this arrangement under Code Section 409A are also terminated; (b) no payments, other than payments that would have been made under this Plan had the termination not occurred, are made from the Plan within twelve (12) months of the termination; (c) all Accounts are fully distributed within twenty-four (24) months of such termination; (d) Sprint Nextel does not adopt a new arrangement that would be aggregated under Code Section 409A with this Plan for three (3) years following the termination of this Plan; and (e) the termination does not occur proximate to a downturn in the financial health of Sprint Nextel.
SECTION 8 
 
DETERMINATIONS - RULES AND REGULATIONS
8.1    Determinations.  The Committee shall have the sole discretion to make such determinations as may be required from time to time in the administration of the Plan.  The Committee shall have the sole discretionary authority and responsibility to interpret and construe the Plan Statement and to determine all factual and legal questions under the Plan, including, but not limited to, the eligibility of an individual to participate in the Plan, the amounts of benefits paid under the Plan, and the administrative reasonability of the Valuation Dates used to 

16

determine benefits and their timing.  The rules, interpretations, computations and other actions of the Committee shall be binding and conclusive on all persons.
8.2    Rules and Regulations.  Any rule not in conflict or at variance with the provisions hereof may be adopted by the Committee.
8.3    Method of Executing Instruments.  Information to be supplied or written notices to be made or consents to be given by the Committee pursuant to any provision of this Plan Statement may be signed in the name of the Committee by any officer who has been authorized to make such certification or to give such notices or consents.
8.4    Claims Procedure.  Until modified by the Committee, the claims procedure set forth in this Section shall be the exclusive procedure for the disposition of claims for benefits arising under the Plan.
8.4.1    Initial Claim.  An individual may, subject to any applicable deadline, file with the Benefits Administrative Committee (BAC), appointed by the Committee to hear benefit appeals, a written claim for benefits under the Plan in a form and manner prescribed by the BAC.
		
	(a)
	If the claim is denied in whole or in part, the BAC shall notify the claimant of the adverse benefit determination within ninety (90) days after receipt of the claim.

		
	(b)
	The ninety (90) day period for making the claim determination may be extended for ninety (90) days if the BAC determines that special circumstances required an extension of time for determination of the claim, provided that the BAC notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.

8.4.2    Notice of Initial Adverse Determination.  A notice of an adverse determination shall set forth in a manner calculated to be understood by the claimant:
		
	(a)
	the specific reasons for the adverse determination;

		
	(b)
	references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based;

		
	(c)
	a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary; and

		
	(d)
	a description of the claims review procedure, including the time limits applicable to such procedure, and a statement of the claimant's right to bring a civil action against the Plan pursuant to Section 502(a) of ERISA.

8.4.3    Claims on Review.  If the claim, upon review, is denied in whole or in part, the BAC shall notify the claimant of the adverse benefit determination within sixty (60) days after receipt of such request for review.

17

		
	(a)
	The sixty (60) day period for deciding the claim on review may be extended for sixty (60) days if the BAC determines that special circumstances require an extension of time for determination of the claim, provided that the BAC notifies the claimant, prior to the expiration of the initial sixty (60) day period, of the special circumstances requiring an extension and the date by which a claim determination is expected to be made.

		
	(b)
	In the event that the time period is extended due to a claimant's failure to submit information necessary to decide a claim on review, the claimant shall have sixty (60) days within which to provide the necessary information and the period for making the claim determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information or, if earlier, the expiration of sixty (60) days.

		
	(c)
	The BAC's review of a denied claim shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

8.4.4    Notice of Adverse Determination for Claim on Review.  A notice of an adverse determination for a claim on review shall set forth in a manner calculated to be understood by the claimant:
		
	(a)
	the specific reasons for the denial;

		
	(b)
	references to the specific provisions of the Plan Statement (or other applicable Plan document) on which the adverse determination is based;

		
	(c)
	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;

		
	(d)
	a statement describing any voluntary appeal procedures offered by the Plan and the claimant's right to obtain information about such procedures; and

		
	(e)
	a statement of the claimant's right to bring an action under ERISA Section 502(a).

8.5    Claims and Review Procedure for Disability Claims Filed under the Plan.  Until modified by the Committee, the claims and review procedure for employees for disability claims shall be that set forth in the Sprint Nextel Long Term Disability Plan.  Similar procedures shall be used for Board Members, except that no statements referencing ERISA rights will be provided.
8.6    Rules.
		
	(a)
	No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with the claims procedure.  The BAC 

18

may require that any claim for benefits and any request for a review of a denied claim be filed on forms to be furnished by the BAC upon request.
		
	(b)
	All decisions on claims and on requests for a review of denied claims shall be made by the BAC unless delegated as provided for in the Plan Statement, in which case references in this Section 8 to the BAC shall be treated as references to the BAC's delegate.

		
	(c)
	The BAC may, in its discretion, hold one or more hearings on a claim or a request for a review of a denied claim.

		
	(d)
	The decision of the BAC on a claim and on a request for a review of denied claim may be provided to the claimant in electronic form instead of in writing at the discretion of the BAC.

		
	(e)
	A claimant may be represented by a lawyer or other authorized representative (at the claimant's own expense), but the BAC reserves the right to require the claimant to furnish written authorization.  A claimant's representative shall be entitled to copies of all notices given to the claimant.

		
	(f)
	In connection with the review of a denied claim, the claimant or the claimant's representative shall be provided, 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.

		
	(g)
	The time period within which a benefit determination will be made shall begin to run at the time a claim or request for review is filed in accordance with the claims procedures, without regard to whether all the information necessary to make a benefit determination accompanies the filing.

		
	(h)
	For the purposes of this Section, a document, record, or other information shall be considered "relevant" if such document, record, or other information:  (i) was relied upon in making the benefit determination; (ii) was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination; (iii) demonstrates compliance with the administrative processes and safeguards designed to ensure that the benefit claim determination was made in accordance with the governing plan documents and that, where appropriate, the Plan Statement provisions have been applied consistently with respect to similarly situated claimants; and (iv) constitutes a statement of policy or guidance with respect to the Plan concerning the denied treatment option or benefit for the claimant's diagnosis, without regard to whether such advice or statement was relied upon in making the benefit determination.

		
	(i)
	The BAC may, in its discretion, rely on any applicable statute of limitation or deadline as a basis for denial of any claim.

19

8.7    Information Furnished by Participants.  Neither Sprint Nextel nor the BAC shall be liable or responsible for any error in the computation of the Account of a Participant resulting from any misstatement of fact made by the Participant, directly or indirectly, to Sprint Nextel or to the BAC, and used by it in determining the Participant's Account.  Neither Sprint Nextel nor the BAC shall be obligated or required to increase the Account of such Participant which, on discovery of the misstatement, is found to be understated as a result of such misstatement of the Participant.  However, the Account of any Participant which is overstated by reason of any such misstatement shall be reduced to the amount appropriate in view of the truth.
SECTION 9 
 
PLAN ADMINISTRATION
9.1    Authority.  The Committee shall:
		
	(a)
	establish rules for the functioning of the Committee, including the times and places for holding meetings, the notices to be given in respect of such meetings and the number of members who shall constitute a quorum for the transaction of business,

		
	(b)
	organize and delegate to such of its members as it shall select authority to execute or authenticate rules, advisory opinions or instructions, and other instruments adopted or authorized by the Committee; adopt such bylaws or regulations as it deems desirable for the conduct of its affairs; appoint a secretary, who need not be a member of the Committee, to keep its records and otherwise assist the Committee in the performance of its duties; keep a record of all its proceedings and acts and keep all books of accounts, records and other data as may be necessary for the proper administration of the Plan; notify Sprint Nextel of any action taken by the Committee and, when required, notify any other interested person or persons,

		
	(c)
	determine from the records of Sprint Nextel the Compensation, service records, status and other facts regarding Participants and other employees,

		
	(d)
	cause to be compiled at least annually, from the records of the Committee and the reports and accountings of any Trustee, a report or accounting of the status of the Plan and the Accounts of the Participants, and make it available to each Participant who shall have the right to examine that part of such report or accounting (or a true and correct copy of such part) which sets forth the Participant's benefits and ratable interest in the Plan,

		
	(e)
	prescribe forms to be used for applications for participation, benefits, notifications, etc., as may be required in the administration of the Plan,

		
	(f)
	set up such rules as are deemed necessary to carry out the terms of this Plan Statement,

20

		
	(g)
	resolve all questions of administration of the Plan not specifically referred to in this Section,

		
	(h)
	delegate or redelegate to one or more persons, jointly or severally, and whether or not such persons are members of the Committee or employees of Sprint Nextel, such functions assigned to the Committee hereunder as it may from time to time deem advisable, and

		
	(i)
	perform all other acts reasonably necessary for administering the Plan and carrying out the provisions of this Plan Statement and performing the duties imposed on it.

9.1.1    Majority Decisions.  Except as otherwise may be resolved by the Board of Directors of Sprint Nextel or as specified in its bylaws, if there shall at any time be three (3) or more members of the Committee serving hereunder who are qualified to perform a particular act, the same may be performed, on behalf of all, by a majority of those qualified, with or without the concurrence of the minority.  No person who failed to join or concur in such act shall be held liable for the consequences thereof, except to the extent that liability is imposed under ERISA.
9.2    Miscellaneous.
9.2.1    Conflict of Interest.  If any officer or employee of Sprint Nextel, any member of the Board of Directors of Sprint Nextel or any member of the Committee to whom authority has been delegated or redelegated hereunder shall also be a Participant or Beneficiary in the Plan, the individual shall have no authority as such officer, employee or member with respect to any matter specially affecting his or her individual interest hereunder (as distinguished from the interests of all Participants and Beneficiaries or a broad class of Participants and Beneficiaries), all such authority being reserved exclusively to the other officers, employees or members, as the case may be, to the exclusion of such Participant or Beneficiary, and such Participant or Beneficiary shall act only in his or her individual capacity in connection with any such matter.
9.2.2    Dual Capacity.  Individuals, firms, corporations or partnerships identified herein or delegated or allocated authority or responsibility hereunder may serve in more than one capacity.
9.2.3    Administrator.  The Committee shall be the plan administrator.
9.2.4    Service of Process.  In the absence of any designation to the contrary by Sprint Nextel, the Secretary of Sprint Nextel is designated as the appropriate and exclusive agent for the receipt of service of process directed to the Plan in any legal proceeding, including arbitration, involving the Plan.
9.2.5    Administrative Expenses.  The reasonable expenses of administering the Plan shall be payable out of the Accounts except to the extent that Sprint Nextel, in its discretion, directly pays the expenses.

21

SECTION 10 
 
DISCLAIMERS
10.1    No Implied Employment Contract.  The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of Sprint Nextel or (ii) to interfere with the right of Sprint Nextel to discharge any employee or other person at any time for any or no reason, which right is hereby reserved.
10.2    Source of Payment.  Neither Sprint Nextel nor any of its officers nor any member of the Committee or the Board of Directors in any way secure or guarantee the payment of any benefit or amount which may become due and payable hereunder to any Participant or to any Beneficiary or to any creditor of a Participant or a Beneficiary.  Each Participant, Beneficiary or other person entitled at any time to payments hereunder shall look solely to the assets of Sprint Nextel for such payments or to the Accounts distributed to any Participant or Beneficiary, as the case may be, for such payments.  In each case where Accounts shall have been distributed to a former Participant or a Beneficiary or to the person or any one of a group of persons entitled jointly to the receipt thereof and which purports to cover in full the benefit hereunder, such former Participant or Beneficiary, or such person or persons, as the case may be, shall have no further right or interest in the other assets of Sprint Nextel.  Neither Sprint Nextel nor any of its officers nor any member of its Board of Directors shall be under any liability or responsibility for failure to affect any of the objectives or purposes of the Plan by reason of the insolvency of Sprint Nextel.
10.3    Delegation.  Sprint Nextel, and its officers and the members of its Board of Directors and the Committee shall not be liable for an act or omission of another person with regard to a responsibility that has been allocated to or delegated to such other person pursuant to the terms of this Plan Statement or pursuant to procedures set forth in this Plan Statement.
10.4    Prohibition on Acceleration of Payments.  The time or schedule of any payment or amount scheduled to be paid pursuant to the terms of the Plan may not be accelerated except as otherwise permitted under Code Section 409A and the guidance and Treasury regulations issued thereunder.
10.5    Code Section 409A.  The Plan and the benefits provided hereunder are intended to comply with Code Section 409A and the guidance and Treasury regulations issued thereunder, to the extent applicable thereto.  Notwithstanding any provision of the Plan to the contrary, the Plan shall be interpreted and construed consistent with this intent.  Notwithstanding the foregoing, Sprint Nextel shall not be required to assume any increased economic burden in connection therewith.  Although Sprint Nextel intends to administer the Plan so that it will comply with the requirements of Code Section 409A, Sprint Nextel does not represent or warrant that the Plan will comply with Code Section 409A or any other provision of federal, state, local, or non-United States law.  Neither Sprint Nextel, its subsidiaries, nor their respective directors, officers, employees or advisers shall be liable to any Participant (or any other individual claiming a benefit through the Participant) for any tax, interest, or penalties the Participant may owe as a result of participation in the Plan, and Sprint Nextel and its subsidiaries shall have no obligation to indemnify or otherwise protect any Participant from the obligation 

22

to pay any taxes pursuant to Code Section 409A.
10.6    Execution.  To record the adoption of this Plan as set forth herein, Sprint Nextel has caused its duly authorized officer to execute the same this 10th day of February, 2012.

SPRINT NEXTEL CORPORATION
By  /S/ Stanley M. Sword 
            Vice President, Total Rewards 
            Sprint Nextel Corporation

23

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