Sprint - Nextel 2011 Annual Report Download - page 214

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(ii) 20 Percent-Owned Entities. In addition to (i) above, where the Compensation Committee determines that legitimate
b
usiness criteria exist with respect to a particular entity, in applying Code Sections 1563(a)(1), (2), and (3) under Code
Section 414(b), the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears. In
applying Treasury Regulation Section 1.414(c)-2 to trades or businesses (whether or not incorporated) that are unde
r
common control for purposes of Code Section 414(c), “at least 20 percent” is used instead of “at least 80 percent” each
p
lace it appears.
(iii) Service Level. A Separation from Service occurs when the Participant’s level of services drops to 21 percent or less o
f
the average level of service provided by the Participant over the immediately preceding 36-month period (or i
f
p
roviding services for less than 36 months, that lesser period). If a Participant’s status changes from an employee to an
independent contractor, or from an independent contractor to an employee, services provided in both capacities are
taken into account.
(mm) “Separation Plan” means the Corporation’s Separation Plan as may be amended from time to time or any successor plan,
p
rogram, arrangement or agreement thereto.
(nn) “Severance Benefits” means Severance Pay and the other benefits payable to a Participant pursuant to Article Four of the Plan.
(oo) “Severance Benefits Classification” means a Participant’s severance benefits classification, as specified for the Participant on
Appendix I and as set forth on Appendix II.
(pp) “Severance Pay” means the cash severance payments payable to a Participant pursuant to Section 4.01 of the Plan.
(qq) “Specified Employee” means a Participant who is a “specified employee” of the Corporation for purposes of Code Section
409A, as administratively determined by the Board of Directors of the Corporation in accordance with the guidance an
d
Treasury regulations issued under Code Section 409A.
(rr) “STIP” means the Corporation’s short term incentive plan, under Section 8 of the Corporation’s Omnibus Incentive Plan,
effective May 8, 2007, as may be amended from time to time, or any successor plan, program or arrangement thereto.
(ss) “Subsidiary” means any entity in which the Corporation, directly or indirectly, beneficially owns more than fifty percent (50%)
of such entity’s equity interest by vote and value.
(tt) “Target Bonus” means a Participant’s target (i.e., based on 100% attainment of stated objectives) short-term incentive
opportunity under the STIP.