Sprint - Nextel 2011 Annual Report Download - page 189

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 o
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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:
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(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 fo
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investments in other Investment Funds. However, a Participant