-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BA2Qy3fKmDXdJ1Nn33Wf5mFEC4RFyTQTo6Tjq89o9HAmPZoQe2vAGXz08sD4fhwe gxKIzArtm1ZT/ktQ4EMggw== 0000101830-06-000017.txt : 20060727 0000101830-06-000017.hdr.sgml : 20060727 20060727121459 ACCESSION NUMBER: 0000101830-06-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20060724 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060727 DATE AS OF CHANGE: 20060727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPRINT NEXTEL CORP CENTRAL INDEX KEY: 0000101830 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 480457967 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04721 FILM NUMBER: 06983649 BUSINESS ADDRESS: STREET 1: 2001 EDMUND HALLEY DRIVE CITY: RESTON STATE: VA ZIP: 20191 BUSINESS PHONE: 703-433-4000 MAIL ADDRESS: STREET 1: 2001 EDMUND HALLEY DRIVE CITY: RESTON STATE: VA ZIP: 20191 FORMER COMPANY: FORMER CONFORMED NAME: SPRINT CORP DATE OF NAME CHANGE: 19921222 FORMER COMPANY: FORMER CONFORMED NAME: UNITED TELECOMMUNICATIONS INC DATE OF NAME CHANGE: 19920316 FORMER COMPANY: FORMER CONFORMED NAME: UNITED UTILITIES INC DATE OF NAME CHANGE: 19731011 8-K 1 k200607258k.txt 200607258K DIR COMM BENEFITS AND AWARD AGMTS ________________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________ FORM 8-K ________________________________________________________________________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 24, 2006 ________________________________________________________________________________ SPRINT NEXTEL CORPORATION (Exact name of Registrant as specified in its charter) ________________________________________________________________________________ Kansas 1-04721 48-0457967 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 2001 Edmund Halley Drive, Reston, Virginia 20191 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (703) 433-4000 (Former name or former address, if changed since last report) ________________________________________________________________________________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ___ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ___ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ___ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ___ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ________________________________________________________________________________ ________________________________________________________________________________ Item 1.01 Entry Into A Material Definitive Agreement. Entry into a Material Definitive Agreement Director Communications Benefit On July 25, 2006, the board of directors of Sprint Nextel Corporation ("Sprint Nextel") approved a Director Communications Benefit for active non-employee members of the board of directors of Sprint Nextel. Under the program, each eligible director may have up to two wireless units and one connection card activated on the wireless network and will receive long distance and international calling cards and wireline long distance services. Specialized equipment and accessories will also be provided. Participating directors will pay any personal federal, state or local income taxes on the value of the communications benefit provided to them. If a current participating director resigns from the board with less than five years of service, including service on the board of directors of Nextel Communications, Inc. before the Sprint-Nextel merger, the communications benefit terminates on the last day of board service. If a current participating director resigns from the board with five or more years of service, the communications benefit will continue for the number of months on the board up to 120 months. Communications benefits provided to directors joining the board after July 25, 2006 will terminate on the last day of board service. A summary of the Director Communications Benefit is attached hereto as Exhibit 10.1 and incorporated herein by reference. Award of Restricted Stock Units On July 24, 2006, the Human Capital and Compensation Committee of the board of directors of Sprint Nextel awarded a grant of restricted stock units to Richard T.C. LeFave, Sprint Nextel's Chief Information Officer, under Sprint Nextel's 1997 Long-Term Incentive Program. The restricted stock units vest on the second anniversary of the grant date. A copy of the form of award agreement is attached hereto as Exhibit 10.2 and incorporated herein by reference. Amendment of Employment Agreement On July 24, 2006, the Human Capital and Compensation Committee of the board of directors of Sprint Nextel approved an amendment to the employment agreement of Barry J. West, the Chief Technology Officer of Sprint Nextel. In order to retain Mr. West's services, the amendment (i) extends the period during which he can resign with good reason under the Nextel Communications, Inc. Change of Control Retention Bonus and Severance Pay Plan and the Nextel Communications, Inc. Amended and Restated Incentive Equity Plan until February 28, 2007, (ii) reduces Mr. West's non-compete period following his departure from Sprint Nextel from 24 months to a period ending on February 28, 2008, and (iii) accelerates vesting of certain equity awards granted in 2005 and 2006 to February 28, 2007. The foregoing description of Mr. West's employment agreement does not purport to be complete and is qualified in its entirety by reference to the amendment, which is filed as Exhibit 10.3 hereto, and by the Employment Agreement dated April 1, 2004, between Mr. West and Nextel Communications, Inc. ("Nextel"), which was filed as Exhibit 10.2.3 to Nextel's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, both of which are incorporated herein by reference. Item 9.01 Financial Statements and Exhibits. (c) Exhibits The following exhibits are filed with this report: Exhibit No. Description 10.1 Summary of Director Communications Benefit. 10.2 Form of Award Agreement for Restricted Stock Units Award under the 1997 Long-Term Stock Incentive Program for Richard T.C. LeFave. 10.3 First Amendment to the Employment Agreement of Barry J. West, dated July 25, 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SPRINT NEXTEL CORPORATION Date: July 27, 2006 By: /s/ Michael T. Hyde Michael T. Hyde Assistant Secretary ________________________________________________________________________________ EXHIBIT INDEX Number Exhibit 10.1 Summary of Director Communications Benefit. 10.2 Form of Award Agreement for Restricted Stock Units Award under the 1997 Long-Term Stock Incentive Program for Richard T.C. LeFave. 10.3 First Amendment to the Employment Agreement of Barry J. West, dated July 25, 2006. EX-10 2 k20060725ex101director.txt BOARD OF DIRECTORS COMMUNICATIONS BENEFIT 2 Exhibit 10.1 Summary of Board of Director Communications Benefit Overview Sprint Nextel is proud of its products and services and we want our board members to enjoy the benefits of the Sprint Nextel wireless and long distance experience. Eligibility Active outside (non-employee) members of the Sprint Nextel Board of Directors. Specifications The Board of Director Communications Benefit offers our active board members wireless services, wireline long distance and calling cards for domestic and international long-distance. An active member may have up to two wireless units plus one connection card activated on the wireless network. Wireless units will include Personal Digital Assistants (e.g., Blackberry, Treo). To determine the value of services for purposes of periodic usage reporting and for IRS Form 1099 reporting each board member will be placed on a consumer account that best fits their total usage. Also, the value of additional services and features (e.g., ringers, call tones, directory assistance), and the retail cost of the wireless units, replacements and associated accessories will be included in the value of the communications benefit. GSM International Phone Rental Board members can request to use a GSM phone when traveling internationally. Costs incurred during the use of the phone will be included in the value of the communications benefit. Customer Service Each Sprint Nextel board member will receive a card that lists the names and numbers he or she can contact with questions regarding billing issues, long distance, wireless units, Sprint Employee Referral Offer or customer complaints. 1 Taxation Participating directors will pay any personal federal, state or local income taxes on the value of the communications benefit. The value of services will be reflected on the director's Form 1099. Replacement Equipment and Exceptions Sprint Nextel will pay for the replacement of a damaged wireless unit, if not covered by warranty. A director may return the damaged unit for it to go through the refurbishing process. Exceptions for specialized equipment and accessories will be reviewed by the board on a case-by-case basis. There may be other circumstances in which units are provided to board members (e.g., demo units, field testing units, training units, etc.); these units will be converted to a consumer account and will apply toward the wireless units under this communications benefit once the units reach production. Sprint Employee Referral Offer (SERO): The communications benefit includes a referral program in which directors may have up to 10 friends and family members per year activated on one of three special discounted wireless rate plans. Termination Directors as of July 25, 2006: o If a board member has less than 5 years of service (including pre-merger Nextel service) the communications benefit will cease on the last day of board service and services will be converted to billed arrangements. o If a board member has five years or more of service (including pre-merger Nextel service), the communications benefit will continue for the earlier of the number of months on the Board up to 120 months or until death. Thereafter the services will be converted to billed arrangements. Directors Joining the Board after July 25, 2006: The communications benefit will cease on the last day of board service and services will be converted to billed arrangements. 2 EX-10 3 k20060725ex102lefave.txt RICHARD LEFAVE AWARD AGREEMENT Exhibit 10.2 Award Agreement This Award Agreement (the "Agreement") is entered into as of _______, 2006 (the "Grant Date"), by and between Sprint Nextel Corporation, a Kansas corporation (together with its direct and indirect subsidiaries, "Sprint") and _____________________ (the "Executive"), an employee of Sprint for the grant of restricted stock units with respect to Sprint's common stock, par value $2.00 per share ("Common Stock"). In consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree to the following. 1.Defined Terms Incorporated from 1997 Long-Term Stock Incentive Program Capitalized terms used in this Award Agreement and not defined herein shall have the meanings set forth in Sprint's 1997 Long-Term Stock Incentive Program (the "Program"). 2. Grant of Restricted Stock Units Sprint hereby grants to Executive under the Program ______ restricted stock units (the "RSUs"). Each RSU represents the unsecured right to require Sprint to deliver to Executive one share of Common Stock. With respect to 100% of the RSUs, the "vesting date" and "delivery date" is on the second anniversary of the Grant Date. The RSUs are governed by,and this Agreement hereby incorporates, the Standard Terms of Other Stock Unit Awards set forth in Section 9(c) of the Program except as provided in Section 3 below. 3. Terms different from Standard Terms 3.01 Acceleration for involuntary termination without cause or voluntary for good reason. In the event the employment of Executive is terminated by Sprint without cause, or the executive terminates employment for good reason (in each case as defined in the Employment Agreement dated as of _____________), vesting on the RSUs will accelerate upon the executive's termination of employment as provided under Section 9(b)(v) of such employment agreement. 3.02 Deferral of delivery not permitted. Executive will not have the ability to defer delivery of the RSUs under the provisions of Section 9(c)(ii). 4. Plan Information To the extent not inconsistent with the provisions of this Agreement, the terms of the Program are hereby incorporated by this reference. In Witness Whereof, Sprint has caused this Agreement to be executed by its duly authorized officer and the Executive has executed the same as of the Grant Date. Sprint Nextel Corporation By:__________________________ Authorized Officer __________________________ "Executive" EX-10 4 k20060725ex103west.txt BARRY WEST FIRST AMENDMENT TO EMP AGMT EXHIBIT 10.3 FIRST AMENDMENT TO EMPLOYMENT AGREEMENT THIS FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT (this "First Amendment") by and between Nextel Communications, Inc., a Delaware corporation (the "Company") and Barry J. West (the "Executive"), effective as of April 1, 2004, is made and entered into as of July 25, 2006 (the "Revised Effective Date"). WITNESSETH: WHEREAS, the Executive and the Company entered into an Employment Agreement dated as of April 1, 2004 (the "Original Agreement"); WHEREAS, under the terms of that certain Agreement and Plan of Merger entered into December 15, 2004 (the "Merger Agreement"), the Company merged with and into a subsidiary of Sprint Corporation (the "Merger"), and as of the Effective Time, Sprint Corporation became known as Sprint Nextel Corporation ("Sprint Nextel"); WHEREAS, the Merger constituted a Change of Control for purposes of the Company's Change of Control Retention Bonus and Severance Pay Plan ("Change of Control Plan") and Amended and Restated Incentive Equity Plan ("Incentive Equity Plan"); WHEREAS, pursuant to the terms of the Change of Control Plan, the Executive is eligible to terminate employment for Good Reason (as defined in the Change of Control Plan) during the Severance Period (as defined in the Change of Control Plan); WHEREAS, the Executive agrees to continue to be employed and the Company agrees to continue to employ the Executive pursuant to the terms of the Original Agreement, as amended by this First Amendment; WHEREAS, the Company and the Executive agree that for purposes of the Change of Control Plan, the Executive's Severance Period shall be extended until February 28, 2007 and for purposes of the Incentive Equity Plan, the Executive's Accelerated Vesting Period (as defined in the Incentive Equity Plan) shall be extended until February 28, 2007; WHEREAS, the Company and the Executive agree that the Executive's right to terminate his employment with the Company for Good Reason under Section 3(h) (iii) of the Change of Control Plan and Section 2(v)(iii) of the Incentive Equity Plan shall be extended until February 28, 2007; and WHEREAS, pursuant to Section 26 of the Original Agreement, the Company and the Executive wish to amend the Original Agreement, effective as of the Revised Effective Date, as set forth herein. NOW, THEREFORE, in consideration of the premises and of the covenants and agreements set forth herein, the Company and the Executive agree as follows: I. Effective as of the Revised Effective Date, pursuant to Section 26 of the Original Agreement, the Executive and the Company agree to amend the Original Agreement as provided below. II. Section 3(a) is hereby amended and restated in its entirety as follows: The Executive shall continue to serve as the Chief Technology Officer of Sprint Nextel, or in such other capacity to which Executive may be appointed, until the expiration of the Employment Term. The Executive shall perform such duties as may be assigned to the Executive from time to time by the Chief Executive Officer of the Company (the "Chief Executive Officer") or such other officer of the Company as may be designated by the Chief Executive Officer. For purposes of this Agreement, "Board" means the Board of Directors of the Company. For purposes of this Agreement, "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. III. The portion of Section 11 preceding subparagraph (a) is hereby amended and restated in its entirety as follows: 11. Non-Competition. In consideration of the Company and the Executive entering into the Agreement, as amended by this First Amendment, and in particular, the awards of Deferred Shares under Section 4(c)(ii), the payments to be made under the Original Agreement, as amended by this First Amendment, and the modified vesting provided for under Section VI of this First Amendment, for a period commencing on the Revised Effective Date and ending on February 28, 2008: IV. The following is added as a new Section 29 of the Agreement: 29. Application of Code Section 409A. This Agreement is intended to be administered and interpreted in a manner that is consistent with the requirements of Section 409A of the Code. The timing of all payments provided in this Agreement, as modified by this First Amendment, are therefore subject to the requirements of Section 409A of the Code and other provisions of the Code and the implementing regulations of the Code. Notwithstanding the foregoing, no particular tax result for the Executive with respect to any income recognized by the Executive in connection with the Agreement is guaranteed, and the Executive shall be responsible for any taxes, penalties and interest imposed on him under or as a result of Section 409A of the Code in connection with the Agreement. 2 V. The following is added as a new Section 30 of the Agreement: 30. Application of Code Section 280G. Notwithstanding anything in this Agreement or Change of Control Plan to the contrary, Section 5(d) of the Change of Control Plan (the "280G Protection Provision") will apply to the terms and conditions of this Agreement during the Employment Term; provided, however, that for purposes of determining whether the Executive would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto), by reason of being considered "contingent on a change in ownership or control" of the Company, within the meaning of Section 280G of the Code (or any successor provision thereto) or to any similar tax imposed by state or local law, or related interest or penalties as provided in the 280G Protection Provision, this Section 30 and the 280G Protection Provision will only apply to any such tax, interest or penalties that may arise by reason of the Merger being considered "contingent on a change in ownership or control" of the Company of and will not apply to any other "change in ownership or control" of Sprint Nextel within the meaning of Section 280G of the Code (or any successor provision thereto). VI. The Company hereby amends the vesting provisions of the (i) special recognition award of deferred shares pursuant to the Executive's Deferred Shares Agreement - Recognition Award dated February 24, 2005 (the "Special Recognition Award"), and (ii) entire 2006 equity award (including the award of options granted to the Executive on February 7, 2006 and restricted stock units granted to the Executive on June 12, 2006) (the "2006 Award") to provide that each award will vest 100 percent on February 28, 2007 (the "Special Accelerated Vesting") to the extent the Executive is employed on such date or otherwise entitled to vesting pursuant to the Section 9(b) of the Original Agreement. The Executive will not be entitled to the Special Accelerated Vesting to the extent he terminates employment prior to February 28, 2007 for any reason other than Good Reason. VII. Notwithstanding anything in this Agreement, the Change of Control Plan or the Incentive Equity Plan to the contrary, (a) for purposes of the Change of Control Plan, the Executive's Severance Period shall be extended until February 28, 2007, (b) for purposes of the Incentive Equity Plan, the Executive's Accelerated Vesting Period (as defined in the Incentive Equity Plan) shall be extended until February 28, 2007, and (c) the Executive's right to terminate his employment with the Company for Good Reason under Section 3(h)(iii) of the Change of Control Plan and Section 2(v)(iii) of the Incentive Equity Plan shall be extended until February 28, 2007; provided, however, that to the extent the Executive terminates his employment for Good Reason as provided in this Section VII of this First Amendment prior to February 28, 2007, the Executive will not be entitled to any accelerated vesting of his Special Recognition Award or his 2006 Award. For the avoidance of any doubt, to the extent that the Executive is terminated by the Company without Cause on or prior to February 28, 2007, the Executive will be entitled to the 3 same severance benefits provided in this Section VII and in Section 9(b) of the Original Agreement as though the Executive had terminated his employment for Good Reason on February 28, 2007; and provided, further, that the Executive would be subject to the covenant of non-competition set forth in Section 11 of the Original Agreement, as modified by Section III hereof. VIII. Except as specifically amended herein, the Agreement shall remain unchanged, and as amended herein, shall continue in full force and effect until the expiration of the Employment Term pursuant to Section 2 of the Original Agreement, as amended by this First Amendment. IN WITNESS WHEREOF, the Company has caused this First Amendment to be signed by an officer pursuant to the authority of its Board, and the Executive has executed this First Amendment, as of the day and year first written above. Sprint Nextel Corporation By: /s/ Gary D. Forsee Gary D. Forsee Chief Executive Officer /s/ Barry J. West Barry J. West 4 -----END PRIVACY-ENHANCED MESSAGE-----