Sprint - Nextel 2015 Annual Report Download - page 338

paid in accordance with the terms and conditions of the applicable plans, programs and arrangements.
(i) Annual Performance Bonus . During the Employment Term, the Executive shall be entitled to
participate in the STIP, with such opportunities as may be determined by the Compensation Committee in its sole
discretion (“Target Bonuses”) provided, however , that for the Company’s fiscal year ending March 31, 2017 (“FY
2016”), the Executive will participate on a prorated basis for the period of FY 2016 in which he is employed by the
Company at an annual Target Bonus opportunity equal to 80 percent of his Base Salary. The Executive’s Target
Bonus may be increased (but not decreased, except for across-the-board reductions generally applicable to the
Company’s senior executives) from time to time, and the Executive shall be entitled to receive full payment of any
award under the STIP, determined pursuant to the STIP (a “Bonus Award”).
(ii) Long-Term Performance Bonus . During the Employment Term, the Executive shall be entitled to
participate in the LTSIP with such opportunities, if any, as may be determined by the Compensation Committee
(“LTSIP Target Award Opportunities”); provided, however , that the Executive’s LTSIP Target Award Opportunity
for the period of FY 2016 shall be $600,000.
(iii) Incentive bonuses, if earned, shall be paid when incentive compensation is customarily paid to the
Company’s senior executives in accordance with the terms of the applicable plans, programs or arrangements.
(iv) Pursuant to the Company’s applicable incentive or bonus plans as in effect from time to time, the
Executive’s incentive compensation during the term of this Agreement may be determined according to criteria
intended to qualify as performance-based compensation under Section 162(m) of the Code.
(c) Equity Compensation . The Executive shall be eligible to participate in such equity incentive
compensation plans and programs as the Company generally provides to its senior executives, including, but not limited to,
the LTSIP. During the Employment Term, the Compensation Committee may, in its sole discretion, grant equity awards to
the Executive, which would be subject to the terms of the respective award agreements evidencing such grants and the
applicable plan or program.
(d) Sign-on Compensation
(i) Conditioned on the Executive providing evidence verifying the forfeiture of his long-term incentive from
his previous employer , the Executive shall receive a sign-on bonus of $500,000 (the “Sign-on Bonus”), less
applicable tax withholdings and other authorized deductions, with $150,000 payable as soon as administratively
practicable after the Effective Date, $125,000 payable as soon as administratively practicable after the one-year
anniversary of the Effective Date, and $225,000 payable as soon as administratively practicable after the two-year
anniversary of the Effective Date. Executive agrees to repay the any such payment in full if he is no longer employed
by the Company (unless Executive’s