Sprint - Nextel 2011 Annual Report Download - page 275

(i) Option Rights granted under this Plan may be (i) options, including, without limitation, Incentive Stock Options, (ii) Non-
Qualified Options, or (iii) combinations of the foregoing. Incentive Stock Options may be granted only to Participants who meet the definition
of “employee” under Section 3401(c) of the Code.
(j) The exercise of an Option Right will result in the cancellation on a share-for-share basis of any related Tandem
Appreciation Right authorized under Section 5 of this Plan.
(k) No Option Right will be exercisable more than ten (10) years from the Date of Grant. In the case of an Incentive Stock
Option granted to an Employee who is a Ten Percent Stockholder, the Incentive Stock Option will not be exercisable more than five (5) years
from the Date of Grant.
(l) An Option Right granted hereunder may be exercisable, in whole or in part, by written notice delivered in person, by mail
or by approved electronic medium to the Treasurer of the Corporation at its principal office, or by such other means as the Treasurer or other
authorized representative of the Corporation shall designate, specifying the number of shares of Common Stock to be purchased and
accompanied by payment thereof and otherwise in accordance with the Evidence of Award pursuant to which the Option Right was granted.
(m) No grant of Option Rights will authorize the payment of dividend equivalents on the Option Right.
(n) Each grant of Option Rights will be evidenced by an Evidence of Award, which Evidence of Award will describe such
Option Rights, and contain such other terms as the Compensation Committee or Authorized Officer may approve.
(o) Except as provided in an Evidence of Award, in the event of an Optionee’s termination of employment or service, any
Option Rights that have not vested as of the Optionee’s Termination Date will be cancelled and immediately forfeited, without further action
on the part of the Corporation or the Compensation Committee, and the Optionee will have no further rights in respect of such Option Rights.
5. Appreciation Rights.
(a) The Compensation Committee or, in accordance with Section 11(d), an Authorized Officer may grant (i) to any Optionee,
Tandem Appreciation Rights in respect of Option Rights granted hereunder, and (ii) to any Participant, Free-Standing Appreciation Rights.
All grants of Appreciation Rights will specify the number of shares of Common Stock to which the grant pertains, subject to the limitations
set forth in Section 3 of this Plan.
(b) A Tandem Appreciation Right will be a right of the Optionee, exercisable by surrender of the related Option Right, to
receive from the Corporation an amount determined by the Compensation Committee or an Authorized Officer, which will be expressed as a
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ercentage of the Spread on the related Option Right (not exceeding 100%) at the time of exercise. Tandem Appreciation Rights must be
granted concurrently with the related Option Right.
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