Sprint - Nextel 2011 Annual Report Download - page 187

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 provide
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that such Board Member or Eligible Employee completes and files an Initial Deferral Election Form acceptable to the Committee, an
d
p
rovided 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 earne
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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 describe
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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-
b
ased compensation" (as defined under Code Section 409A) attributable
to services performed over a period of at
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