1. | We will recommend that you be appointed as Chief Marketing Officer of each of Cricket and Leap Wireless International, Inc. (“Leap,” and together with Cricket, the “Company”). Notwithstanding anything set forth below to the contrary, the terms of your employment with Cricket will be “at will” and your service as an officer will be at the pleasure of each of Leap's and Cricket's Board of Directors (the “Board”). |
2. | You will receive a starting bi-weekly salary of $17,307.69 (if annualized, $450,000). The salary will be subject to annual merit-based consideration; however, this does not guarantee you will receive an increase annually. As an officer, any future salary adjustments/considerations will be at the option and sole discretion of Leap's Board or Compensation Committee and will generally be based on your performance, market-based compensation data and the Company's ability to provide such increases. |
3. | You will have an opportunity to earn an annual cash bonus targeted at 80% of your annual base salary (which bonus amount for 2013 will be prorated based on the date that you commence employment (your “Start Date”)). The actual amount that you receive will be based on numerous factors, including Cricket's and your individual performance as determined by Leap's Board or Compensation Committee in its sole discretion. |
4. | Enclosed for your information you will find a comprehensive description of our benefits. In addition to your normal paid time off accrual as set forth in Cricket's Executive Benefits Program, you will accrue one additional week of paid time off annually. Therefore, your annual paid time off accrual for years one through five will be four weeks per year. |
5. | We will facilitate your relocation from the greater-Seattle, Washington area to San Diego, California. A copy of our relocation package/program is enclosed for your review. To the extent that any of the relocation payments that we make result in taxable income to you, such payments will be grossed up to cover the applicable income taxes. |
6. | Within 30 days of your employment, you will receive a temporary living allowance of $75,000 (this net amount will be grossed-up for taxes) for expenses associated with your working in San Diego, California. This allowance will be the total payment to you for temporary living costs (i.e., housing, rental car, travel from your home, etc.) for your first year of employment. Shortly after the first anniversary of your Start Date, you will receive a second temporary living allowance of $50,000 (again, this net amount will be grossed up for taxes), which will be the total payment to you for temporary living costs for your second year of employment. |
7. | You will be eligible to participate in the Company's long term equity compensation program with recommended initial grants of (i) options to purchase 100,000 shares of Leap common stock, which shall have a per-share exercise price equal to the closing price of Leap common stock on the date of grant; and (ii) deferred stock units for 75,000 shares of Leap common stock. The |
8. | As an officer, you will be offered severance benefits in accordance with the Company's standard form of Severance Benefits Agreement for Executive Vice Presidents. Attached please find a sample copy of our standard form of severance agreement. We will sign a severance agreement with you during your first month of employment. |