Document:

Exhibit

Exhibit 10.1

INVESTMENT AGREEMENT
AMONG
AINMT HOLDINGS AB
AINMT BRAZIL HOLDINGS B.V.
NEXTEL HOLDINGS S.À R.L.
NII INTERNATIONAL TELECOM S.C.A.
NII HOLDINGS, INC.
AND
SOLELY FOR THE PURPOSES OF SECTION 2.1(b), AINMT AS
Dated June 5, 2017

TABLE OF CONTENTS

		
	I.
	DEFINITIONS    

		
	1.1
	Definitions    

		
	1.2
	Construction Rules and Interpretative Matters    

		
	II.
	CAPITAL CONTRIBUTIONS AND SUBSCRIPTION FOR PREFERRED SHARES    

		
	2.1
	Escrow Mechanics and Obligations Before Initial First Closing    

		
	2.2
	Escrow Monies    

		
	2.3
	Initial First Tranche    

		
	2.4
	Initial Second Tranche    

		
	2.5
	Released Escrow Proceeds    

		
	2.6
	Investor Option to Subscribe for Additional Preferred Shares    

		
	2.7
	Second Tranche    

		
	III.
	CLOSING AND TERMINATION    

		
	3.1
	Initial First Closing Date    

		
	3.2
	Initial First Closing Deliveries    

		
	3.3
	Initial Second Closing Deliveries    

		
	3.4
	Second Tranche Closing    

		
	3.5
	Second Closing Deliveries    

		
	3.6
	Termination of Agreement    

		
	3.7
	Procedure Upon Termination    

		
	3.8
	Effect of Termination    

		
	IV.
	REPRESENTATIONS AND WARRANTIES OF NII TELECOM AND PARENT    

		
	4.1
	Organization of the Company    

		
	4.2
	Authorization of Agreement    

		
	4.3
	Conflicts; Consents of Third Parties    

		
	4.4
	Organization of the Entities    

		
	4.5
	Capitalization of the Entities    

		
	4.6
	Valid Issuance of Preferred Shares    

		
	4.7
	Other Subsidiaries    

		
	4.8
	Title to Shares    

 

TABLE OF CONTENTS
(continued)

		
	4.9
	Financial Statements    

		
	4.10
	Business since December 31, 2016    

		
	4.11
	Taxes    

		
	4.12
	Real Property    

		
	4.13
	Intellectual Property    

		
	4.14
	Material Contracts    

		
	4.15
	Labor    

		
	4.16
	Employees    

		
	4.17
	Employee Benefit Plans    

		
	4.18
	Litigation    

		
	4.19
	Compliance with Laws; Permits    

		
	4.20
	Environmental Laws    

		
	4.21
	Broker's or Finder's Fee    

		
	4.22
	Insurance    

		
	4.23
	Voting    

		
	4.24
	Related Party Transactions    

		
	4.25
	Sufficiency of Assets    

		
	4.26
	Liens    

		
	4.27
	Loans    

		
	4.28
	Organization    

		
	4.29
	Authorization of Agreement    

		
	4.30
	Conflicts; Consents of Third Parties    

		
	4.31
	Litigation    

		
	4.32
	Proxy Statement    

		
	4.33
	Broker's or Finder's Fee    

		
	4.34
	No Other Representations or Warranties; Schedules    

		
	4.35
	Parent Cash Schedule    

		
	V.
	REPRESENTATIONS AND WARRANTIES OF INVESTOR    

		
	5.1
	Organization    

		
	5.2
	Authorization of Agreement    

TABLE OF CONTENTS
(continued)

		
	5.3
	Conflicts; Consents of Third Parties    

		
	5.4
	Litigation    

		
	5.5
	Broker’s or Finder’s Fee    

		
	5.6
	Financial Capability    

		
	5.7
	Investigation    

		
	5.8
	Proxy Statement    

		
	5.9
	No Other Representations or Warranties    

		
	VI.
	COVENANTS    

		
	6.1
	Brazil Tax Election    

		
	6.2
	Luxco Reorganization    

		
	6.3
	Access to Information    

		
	6.4
	Conduct of the Business    

		
	6.5
	Consents; Brazil Credit Facilities    

		
	6.6
	Regulatory Approval    

		
	6.7
	Antitrust Approval    

		
	6.8
	Further Assurances    

		
	6.9
	Publicity    

		
	6.10
	[RESERVED.]    

		
	6.11
	Supplementing and Amendment of Company Disclosure Letter    

		
	6.12
	Preparation of Proxy Statement; Stockholders Meeting    

		
	6.13
	No Solicitation    

		
	VII.
	CONDITIONS TO SECOND CLOSING    

		
	7.1
	Conditions Precedent to Obligations of Investor    

		
	7.2
	Conditions Precedent to Obligations of the Company and NII Telecom    

		
	7.3
	Conditions Precedent to Obligations of Investor, the Company and NII Telecom    

		
	7.4
	Frustration of Closing Conditions    

		
	VIII.
	SURVIVAL; INDEMNIFICATION    

		
	8.1
	Survival of Representations, Warranties and Covenants    

		
	8.2
	Indemnification by NII Telecom    

TABLE OF CONTENTS
(continued)

		
	8.3
	Indemnification by Investor    

		
	8.4
	Certain Limitations    

		
	8.5
	Indemnification Procedures    

		
	8.6
	Payments    

		
	8.7
	Tax Treatment of Indemnification Payments    

		
	8.8
	Exclusive Remedies    

		
	IX.
	MISCELLANEOUS    

		
	9.1
	Guarantees    

		
	9.2
	Expenses    

		
	9.3
	Injunctive Relief    

		
	9.4
	Governing Law; Submission to Jurisdiction    

		
	9.5
	Waiver of Jury Trial    

		
	9.6
	Entire Agreement; Amendments and Waivers    

		
	9.7
	Notices    

		
	9.8
	Severability    

		
	9.9
	Binding Effect; Assignment    

		
	9.10
	Non-Recourse    

		
	9.11
	Legal Representation    

		
	9.12
	Counterparts    

INVESTMENT AGREEMENT

This INVESTMENT AGREEMENT (this “Agreement”), dated June 5, 2017 (the “Effective Date”), is among AINMT Brazil Holdings B.V., a corporation existing under the Laws of the Netherlands (“Investor”), for purposes of Section 9.1 only, AINMT Holdings AB, a corporation existing under the Laws of Sweden (“Investor Parent”), for purposes of Section 2.1(b) only, AINMT AS, a corporation existing under the Laws of Norway (“AINMT AS”), Nextel Holdings S.à r.l., a limited liability company organized under the Laws of the Grand Duchy of Luxembourg (“Company”), NII International Telecom S.C.A., a partnership limited by shares organized under the Laws of the Grand Duchy of Luxembourg (“NII Telecom”), and, for purposes of Sections 6.12, 6.13 and 9.1 only, NII Holdings, Inc., a Delaware corporation (“Parent”).
PRELIMINARY STATEMENTS
A.    NII Telecom is the legal and beneficial owner of all of the issued and outstanding equity in the Company and NII International Mobile S.à r.l. (“NII International”).
B.    NII Telecom and the Company are indirect wholly owned Subsidiaries of Parent.
C.    The Company indirectly owns all of the issued and outstanding capital stock of Nextel Telecommunicações Ltda. (“Opco”), and after the consummation of the Luxco Reorganization will own all of the issued and outstanding capital stock of NII International.
D.    Prior to the Initial First Closing (as defined herein), the Company will adopt and file the Restated Articles of Association, in the form attached hereto as Exhibit A-1, with the Luxembourg trade register. The Restated Articles of Association will provide for the creation of a new class of Preferred Stock, $1.00 nominal value per share (the “Preferred Shares”), having the terms set forth therein. On the Second Closing (as defined herein), the Company will adopt and file the Second Restated Articles of Association, in the form attached hereto as Exhibit A-2. 
E.    On the terms and subject to the conditions set out in this Agreement, the Company will (1) issue and allot to Investor, and Investor will subscribe for, $50,000,000 of Preferred Shares (representing 30% of the share capital in the Company on a fully diluted basis) at the Funding Valuation Rate, and (2) issue and allot to NII Telecom, and NII Telecom will subscribe for, an amount of Ordinary Shares at the Funding Valuation Rate equal to the Pre Initial Closing Subscription Amount as contemplated in this Agreement, so that following the Initial Second Closing (as defined herein) and upon satisfaction of the Escrow Initial Tranche Condition and the Escrow Second Tranche Condition, Investor will hold 30% of the share capital of the Company on a fully diluted basis and NII Telecom will hold 70% of the share capital of the Company on a fully diluted basis.

F.    On the terms and subject to the conditions set out in this Agreement, after the Initial First Closing, Investor will have the option to subscribe for an additional $150,000,000 of Preferred Shares, subject to, for the avoidance of doubt, receipt of the Antitrust Approval, the Regulatory Approval and the Parent Stockholder Approval (in each case, as defined herein), and if Investor exercises such option the Company will issue and allot to Investor such Preferred Shares following receipt of the necessary corporate and regulatory approvals described herein so that following the Second Closing (as defined herein), Investor will hold 60% of the share capital of the Company on a fully diluted basis and NII Telecom will hold 40% of the equity interest of the Company on a fully diluted basis.
G.    Parent, NII Telecom, the Company and Investor desire to enter into this Agreement to provide for certain matters relating to the capital contributions and subscription for the Preferred Shares, ownership of the Preferred Shares, consummation of the transactions contemplated herein and operation of its direct and indirect Subsidiaries, including Opco.  
AGREEMENT
The Parties agree as follows:
		
	I.
	DEFINITIONS

1.1    Definitions.  For purposes of this Agreement, the following terms and variations on them have the meanings specified below:
“115 Account” means a 115 account “capital contribution without issue of shares” of the Luxembourg Standard Chart of Accounts.
“Acceptable Confidentiality Agreement” means a confidentiality, non-disclosure or similar agreement that contains terms that are no less favorable in the aggregate to Parent than those contained in the Non-Disclosure Agreement; provided, however, that an Acceptable Confidentiality Agreement shall not be required to contain standstill provisions.
"Action" means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity. 
“Additional Parent Shares” is defined in Section 2.7(b)
“Adjustment Floor” is defined in Section 8.6(a).
“Adverse Recommendation Change” is defined in Section 6.13(a).

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“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, such Person, and the term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.
“Aggregate NII Indemnification” is defined in Section 8.4(a).
 “Agreement” is defined in the Preamble, as it may be amended, modified or supplemented from time to time.
“AINMT AS” is defined in the Preamble.
“AINMT AS Shareholders Meeting” means a shareholders’ meeting of AINMT AS for the purpose of approving the Initial Investor Capital Contribution and the subscription for the Initial First Investor Shares and Initial Second Investor Shares pursuant to the terms of this Agreement.
“ANATEL” means the Brazilian Telecommunications Agency (Agência Nacional de Telecomunicações).
“Ancillary Agreements” is defined in Section 4.2.
“Antitrust Approval” means the authorization pursuant to the Antitrust Statutes issued by Brazilian Antitrust Authority, as applicable, or any Governmental Authority that may replace it in the future, in connection with the transactions contemplated by this Agreement.
“Antitrust Statutes” means, as applicable, all Brazilian Antitrust Laws, including Brazilian Law 12,529/2011 and its related decrees, resolutions and Laws.
“ATC” means American Tower do Brasil – Cessão de Infraestrutura Ltda.
“ATC Agreements” means the (i) Master Use of Space Agreement, dated March 22, 2005 (and effective as of January 1, 2004), among Opco, ATC and the guarantors thereunder, (ii) Asset Purchase Agreement, dated March 22, 2005 (and effective as of January 1, 2004), among Opco and ATC, and (iii) Master Purchase and Sale Agreement, dated August 8, 2013, among Opco, ATC and ATC II, including, in each case, all of their schedules, ancillary documents and agreements, and related guaranties.
“ATC II” means America Tower do Brasil II – Cessão Infraestruturas Ltda (formerly Nextel Torres e Equipamentos Ltda).
“BACEN” means the Central Bank of Brazil (Banco Central do Brasil).

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“Balance Sheet Date” means December 31, 2016
“Bank Letter” means the letter from DNB Markets, a part of DNB ASA, in the agreed form confirming that certain shareholders of Investor Parent have committed, subject to paragraphs (i) and (ii) of the definition of the Escrow Payment Condition, to subscribe for (and pay for) sufficient shares in the capital of Investor Parent such that Investor Parent can procure that the Escrow Amount be paid into the Escrow Account pursuant to the terms of this Agreement and the Escrow Agreement.
“Basket” is defined in Section 8.4(a).
“BdB” means Banco do Brasil S.A.
“BdB Credit Facility” means the R$400,000,000 credit agreement n. 307.0001.181 (Cédula de Crédito Bancário n. 307.0001.181), dated October 31, 2012, as amended from time to time among Opco, the guarantors thereunder and BdB as administrative agent and lender.
“Brazil” means the Federative Republic of Brazil.
“Brazil Credit Facilities” means, collectively, the BdB Credit Facility, the Caixa Credit Facility and the CDB Credit Facility.
“Brazil Parent” means Nextel Telecomunicações S.A., a Brazilian sociedade anônima and an indirect wholly owned subsidiary of NII Telecom. 
“Brazil Parent Financial Statements” is defined in Section 4.9(a).
“Brazil Proposal” means any inquiry, proposal, indication of interest in making a proposal or offer by any Person or group (other than Investor and its Affiliates) after the date of this Agreement, which is structured to permit such Person or group to acquire (whether pursuant to a merger, consolidation, amalgamation, arrangement, or other business combination sale of shares, sale of assets, take-over bid, tender offer or exchange offer or otherwise, including any single or multi-step transaction or series of related transactions) ownership, directly or indirectly, of (i) more than 20% of any class of capital stock, other equity securities or voting power of the Company or any resulting parent company of the Company (other than Parent), or (ii) assets or businesses of the Company or its Subsidiaries (including any voting equity interest of such Subsidiaries, but excluding sales of assets in the ordinary course of business) representing more than 20% of the fair market value of the consolidated assets of the Company or which generate more than 20% of the Company’s net revenues or net income on a consolidated basis (for the 12-month period ending on the last day of the Company’s most recently completed fiscal quarter).
“Brazil Tax Election” is defined in Section 6.1.

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“Brazilian Antitrust Authority” means CADE or its succeeding Governmental Authorities.
“Brazilian Civil Code” means Brazilian Law No. 10,406/2002, as amended.
“Brazilian GAAP” means generally accepted accounting principles (Princípios Fundamentais de Contabilidade) accepted in Brazil in accordance with the Brazilian Federal Accounting Council (Conselho Federal de Contabilidade), including those adopted by regulations issued by the CVM, BACEN and any other applicable Governmental Authority, as the case may be, applied on a basis consistent in all material respects as applied in the Company’s and the Entities’ financial statements.
“Bribery Legislation” means all and any of the following: the FCPA, Brazilian Law No. 12,846/2013 and Federal Decree No. 8,420/2015.
“Business Day” means any day of the year that is not a Saturday, a Sunday or any other day on which commercial banks are authorized or required by law to be closed in the cities of New York, New York, São Paulo, Brazil, Amsterdam, The Netherlands, Stockholm, Sweden or Luxembourg City, Luxembourg.
“CADE” means Conselho Administrativo de Defesa Econômica.
“Caixa” means Caixa Econômica Federal.
“Caixa Credit Facility” means the R$640,000,000 credit agreement n. 21.3150.777.0000001-97 (Cédula de Crédito Bancário n. 21.3150.777.0000001-97), dated December 8, 2011, as amended from time to time among Opco, the guarantors thereunder and Caixa as administrative agent and lender.
“Cap” is defined in Section 8.4(a).
“Capitalization Table” means the capitalization table as attached hereto as Section 1.1(a) of the Company Disclosure Letter illustrating the (i) the Funding Valuation Rate and (ii) the intended share capital to be held in the Company (A) following the Initial Second Closing, subject to the satisfaction of the Escrow Initial Tranche Condition and the Escrow Second Tranche Condition, showing Investor holding 30% of the share capital of the Company on a fully diluted basis and NII Telecom holding 70% of the share capital of the Company on a fully diluted basis and (B) following the Second Closing (if any), showing Investor holding 60% of the share capital of the Company on a fully diluted basis and NII Telecom holding 40% of the share capital of the Company on a fully diluted basis.
“CDB” means the China Development Bank Corporation.
“CDB Credit Facility” means (i) the $250,000,000 Sinosure Credit Agreement, dated April 20, 2012, as amended from time to time among Opco, the guarantors thereunder and CDB as administrative agent and lender and (ii) the 

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$250,000,000 Non-Sinosure Credit Agreement, dated April 20, 2012, as amended from time to time among Opco, the guarantors thereunder and CDB as administrative agent and lender.
“Code” means the U.S. Internal Revenue Code of 1986, as amended.
“COFINS” means the Brazilian Contribution for the Financing of Social Security (Contribuição para o Financiamento da Seguridade Social).
“Company” is defined in the Preamble.
“Company Disclosure Letter” is defined in Article IV.
“Company Financial Statements” is defined in Section 4.9(a).
“Company Indemnitees” is defined in Section 8.3.
“Company Material Adverse Effect” means a change, occurrence, state of facts or development having a material adverse effect on the business, assets, financial condition or results of operations of the Entities taken as a whole or on the ability of the Company to consummate the transactions contemplated by this Agreement no later than the Termination Date, provided, however, that no adverse effect to the extent attributable to the following will be taken into account in determining whether there has been, or would reasonably be expected to be, a Company Material Adverse Effect: (i) general economic conditions in the industry in which the Entities operate, (ii) compliance by the Company with its covenants in this Agreement, (iii) changes in Brazilian GAAP (or official interpretations thereof) or changes in the regulatory or accounting requirements applicable to the industry in which the Entities operate, (iv) any failure by the Entities to meet any forecasts of revenues, earnings or other operational or financial measures for any period ending on or after the date of this Agreement and before the Initial First Closing, provided, however, that the exception in this clause (iv) will not prevent or otherwise affect a determination that any change or occurrence underlying such failure has resulted in, or contributed to, a Company Material Adverse Effect, (v) changes in the financial or securities markets (including the cost or availability of debt or equity financing) or economic, regulatory or political conditions, in each case, globally, in Brazil or in any other jurisdiction, (vi) changes (including changes in applicable Law or official interpretations thereof) or conditions generally affecting the industry, the country or the regions in which the Entities operate, including any foreign exchange controls, (vii) acts of war (whether or not declared), armed hostilities, acts of terrorism or any natural disasters, (viii) the announcement or consummation of the transactions contemplated by this Agreement, (ix) any action taken (or omitted to be taken) at the written request of Investor, (x) any action taken by the Entities that is expressly required or permitted pursuant to this Agreement, provided, further, that with respect to clauses (i), (iii), (v), (vi) or (vii), such matters will be considered to the extent that they disproportionally affect the Entities as compared to similar situated businesses 

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operating in the telecommunications industry in Brazil and other geographic areas in which the Entities operate.
“Company Subsidiary” means each of the direct and indirect Subsidiaries of the Company and NII International.
“Compliance Notification Date” has the meaning set forth in clause (ii) of the definition of Escrow Initial Tranche Condition.
“Contract” means any legally binding contract, indenture, note, bond, lease, commitment or other agreement or arrangement.
“CSLL” means the Brazilian Social Contribution on Net Profits (Contribuição Social Sobre o Lucro Líquido).
“CVM” means the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários).
“Direct Claim” is defined in Section 8.5(c).
“Effective Date” is defined in the Preamble.
“Employee Plan” means any employment, arrangement, consulting or deferred compensation Contract, executive compensation, bonus, employee pension, profit-sharing, savings, retirement, stock option, stock purchase, severance pay, life, health, disability or accident insurance plan or other employee benefit plan, program or commitment that are sponsored or maintained by an Entity.
“Entities” means the Company, NII International and their Subsidiaries.
“Escrow Account” means the bank account to be set up by the Escrow Agent after the Effective Date and at least 2 Business Days prior to the Escrow Pay-In Date on the terms of the Escrow Agreement.
“Escrow Agent” means DNB Bank ASA (Foretaksregisteret NO 984 851 006).
“Escrow Agreement” means the agreement to be entered into on or by the Escrow Pay-In Date between the Escrow Agent, Investor and NII Telecom, in the form attached hereto as Exhibit C.
“Escrow Amount” means the Escrow Initial Tranche Amount and the Escrow Second Tranche Amount.
“Escrow Initial Tranche Amount” means $28,984,600.
“Escrow Initial Tranche Condition” means:

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(i)    completion of the Brazil Tax Election and Luxco Reorganization and delivery to Investor by NII Telecom of evidence of such to the reasonable satisfaction of Investor; and
(ii)    Investor being satisfied that:
a.       any restructuring of the equity or debt arrangements of the Company or the Subsidiaries, including the Intercompany Debt (including the transfer of the receivable in respect of the Intercompany Debt), the transfer of shares or interests in the Company or any of its Subsidiaries and the formation or acquisition of any Person as a new Affiliate of any of the Company or the Subsidiaries (including the formation and acquisition of the Company itself);
b.       the investments to be made in the Company by Investor as contemplated by this Agreement; and 
c.       Investor or any of its Affiliates continuing to be a direct or indirect shareholder in the Company,
will not give rise to any Tax arising or being incurred, on a worldwide basis, to or by the Company, any of its Subsidiaries, Investor or any of its Affiliates (including AI Media Holdings LLC and its Affiliates), whether now or in the future, and Investor undertakes to notify NII Telecom as soon as reasonably practicable upon concluding that it is so satisfied; provided, that Investor shall notify NII Telecom in writing of its conclusion that this clause (ii) has been satisfied or not satisfied before the later of (x) the date that is 30 Business Days after receipt of the final form tax analyses contemplated pursuant to Section 2.1(h) or (y) the date of completion of the Brazil Tax Election (such later date of clauses (x) or (y), the “Compliance Notification Date”); provided further, that, if Investor does not notify NII Telecom in writing of its conclusion pursuant to this clause (ii) before the Compliance Notification Date, NII Telecom or Investor shall be entitled to terminate this Agreement pursuant to Section 3.6(l); and
(iii)          the obligations set forth in Sections 2.1(h) and 2.1(i) have been completed. 
Solely for purposes of this definition, Affiliates will include any trust in which the beneficiaries include any family members of any Affiliates of Investor.
“Escrow Payment Condition” means: 
(i) the duly completed Investor Parent Shareholders Meeting approving the resolutions proposed thereat; 
(ii) the affirmative vote of at least two thirds of the votes properly cast at the AINMT AS Shareholders Meeting, in each case to approve the Initial Investor 

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Capital Contribution and the subscription for the Initial First Investor Shares and Initial Second Investor Shares pursuant to the terms of this Agreement; and
(iii) the Parent having delivered to the Investor an updated Company Disclosure Letter, updated only for the period from  April 21, 2017 up until the Effective Date, and the Investor being satisfied with its contents (acting reasonably).
“Escrow Pay-In Date” means ten Business Days from the date the Escrow Payment Condition has been satisfied pursuant to the terms of this Agreement.
“Escrow Period” means the period commencing on the date of this Agreement and ending on the Option Expiration Date.
“Escrow Second Tranche Amount” means $21,015,400. 
“Escrow Second Tranche Condition” means the Escrow Initial Tranche Condition being satisfied and the Antitrust Approval being obtained.
“Evidence of Financial Capacity” is defined in Section 2.6(b).
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.
“Exercise Date” is defined in Section 2.6(b).
“FCPA” is defined in Section 4.19(e).
“FGTS” means the Employee’s Severance Guarantee Fund of Brazil (Fundo de Garantia por Tempo de Serviço).
“Financial Statements” is defined in Section 4.9.
“Funding Valuation Rate” is defined in the Capitalization Table.
“Governmental Authority” means any federal, state or local Swedish, Norwegian, Luxembourg, Dutch, U.S. or Brazilian government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction, but excluding any banks or financial development organizations.
“Grace Period” is defined in Section 6.10.
“Identified Tax Claims” means any of the claims against Opco or any of its Subsidiaries related to the pending Tax proceedings listed in Section 4.11 of the Company Disclosure Letter.

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“Indebtedness” of any Person means, without duplication, (i) the principal, accreted value, accrued and unpaid interest, prepayment and redemption premiums or penalties (if any), unpaid fees or expenses and other monetary obligations in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable; (ii) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction; (iii) all obligations of such Person under interest rate or currency swap transactions (valued at the termination value thereof); (iv) all obligations of the type referred to in clauses (i) through (iii) of any Persons for the payment of which such Person is responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise, including guarantees of such obligations; and (v) all obligations of the type referred to in clauses (i) through (iv) of other Persons secured by (or for which the holder of such obligations has an existing right, contingent or otherwise, to be secured by) any Lien on any property or asset of such Person (whether or not such obligation is assumed by such Person).
“Indemnified Party” is defined in Section 8.5.
“Indemnifying Party” is defined in Section 8.5.
“Initial First Closing” is defined in Section 3.1.
“Initial First Closing Date” means the date on which the Initial First Closing occurs.
“Initial First Investor Shares” is defined in Section 2.3(b).
“Initial Investor Capital Contribution” means the Escrow Initial Tranche Amount and, to the extent paid to the Company pursuant to Section 3.3, the Escrow Second Tranche Amount.
“Initial Parent Capital Contribution” is defined in Section 2.3(d).
“Initial Second Closing” is defined in Section 3.3.
“Initial Second Investor Shares” is defined in Section 2.4(a).
“Initial Second Tranche Investor Contribution” is defined in Section 2.4(a).
“INPI” means the Brazilian National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial).
“INSS” means the National Institute of Social Security of Brazil (Instituto Nacional de Seguridade Social).
“Insurance Policies” is defined in Section 4.22.

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“Intellectual Property” means all intellectual property rights used by the Entities arising from or in respect of the following (i) patents and patent applications, including continuations, divisionals, continuations-in-part, or reissues of patent applications and patents issuing thereon, (ii) trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, internet domain names and corporate names, together with the goodwill associated with any of the foregoing, and all applications, registrations and renewals of the foregoing (collectively, “Trademarks”), (iii) copyrights, and (iv) Software.
“Intercompany Debt” has the meaning given in the Shareholders Agreement.
“Intervening Event” is defined in Section 6.13(f).
“Investor” is defined in the Preamble. 
“Investor Guaranteed Parties” is defined in Section 9.1(c).
“Investor Indemnitees” is defined in Section 8.2.
“Investor Material Adverse Effect” means a material adverse effect on the ability of Investor to consummate the transactions contemplated by this Agreement or perform its obligations under this Agreement on a timely basis.
“Investor Option” is defined in Section 2.6(a).
“Investor Option Shares” is defined in Section 2.6(a).
“Investor Parent” is defined in the Preamble.
“Investor Parent Shareholders Meeting” means a meeting of Investor Parent’s shareholders resolving to (i) approve a share capital increase and issuance of new shares of Investor Parent and the subsequent capital contribution by Investor Parent to Investor for the purpose of financing the transactions contemplated by this Agreement and (ii) approve the Initial Investor Capital Contribution and the subscription for the Initial First Investor Shares and Initial Second Investor Shares pursuant to the terms of this Agreement.
“IT Systems” means all hardware, Software and networks used by the Company and the other Entities.
“Knowledge of NII Telecom” means the knowledge of the Persons listed in Section 1.1(b) of the Company Disclosure Letter, after reasonable inquiry.
“Law” means any Norwegian, Luxembourg, Dutch, Swedish, U.S. or Brazilian, federal, state or local law, statute, ordinance, regulation, rule, code, order, 

11

constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority, as applicable.
“Leakage” means:
(a)    any dividend, bonus issue or other distribution of capital or income declared, paid or made (whether in cash or in specie) or any repurchase, redemption, repayment or return of share or loan capital (or any other relevant securities) or capitalization of profits by any Entity, in each case, to or for the benefit of any of the NII Group Companies other than an Entity;
(b)    any payments made (including management, monitoring, service or directors’ fees), by any Entity to (or assets transferred to or liabilities or obligations assumed, indemnified, discharged, performed or incurred by any Entity for the benefit of) NII Group Companies (other than an Entity);
(c)    the waiver, release or discount by any Entity of any economic benefit, amount, liability or obligation owed to that Person by any of the NII Group Companies (other than an Entity);
(d)    the payment by any Entity of any success fees, transaction bonuses, retention payments, professional, broker or finder fees or other costs or expenses in connection with the transactions contemplated by this Agreement, excluding, for the avoidance of doubt, any employee incentive compensation or retention program of any Entity in the ordinary course and which are not triggered by the transactions contemplated by this Agreement;
(e)    any fees, costs, Tax (or amounts in respect of Tax), penalties, interest or foreign exchange costs incurred or paid by any Entity as a result of the occurrence of any of those matters set out in paragraphs (a) to (d) above; and
(f)    the agreement or commitment (whether conditional or not) by any Entity to do any of the things set out in paragraphs (a) to (e) above, 
excluding, in each case, any Permitted Leakage.
“Legal Proceeding” means any judicial, administrative or arbitral actions, suits, mediation, investigation, inquiry, proceedings or claims (including counterclaims) by or before a Governmental Authority or arbitrator.
“Liability” means any debt, Loss, damage, adverse claim, fines, penalties, liability or obligation (whether direct or indirect, asserted or unasserted, absolute or contingent, accrued or unaccrued, matured or unmatured, liquidated or unliquidated, or due or to become due, and whether in contract, tort, strict liability or otherwise), and including all costs and expenses relating thereto (including all fees, disbursements and 

12

expenses of legal counsel, experts, engineers and consultants and costs of investigation). 
“Licenses” is defined in Section 4.13.
“Lien” means any lien, encumbrance, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, right of first refusal, easement, servitude, voting trust or agreement or transfer restriction under any shareholder or similar Contract.
“Losses” means actual losses, damages, liabilities, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers; provided, however, that Losses shall not include punitive, consequential or exemplary damages, except in the case of fraud or to the extent actually awarded to a Governmental Authority or other third party. 
“Luxco Reorganization” means the transactions described on Section 6.2 of the Company Disclosure Letter.
“Luxco Reorganization Background Tax Information” has the meaning given in Section 4.11 below.
“Luxembourg GAAP” means generally accepted accounting principles in effect in the Grand Duchy of Luxembourg applied on a basis consistent in all material respects as applied in the Company Financial Statements.
“Made Available” means documents and information provided in the electronic data room managed by Intralinks or delivered to Investor or its advisors via USB drive as of or prior to the Business Day immediately preceding the Effective Date. 
“Management Accounts” means the unaudited consolidated balance sheet as at February 28, 2017 and the related unaudited consolidated statement of operations for the two months then ended of Brazil Parent and its Subsidiaries in US GAAP.
“Management Fees” is defined in Section 6.10.
“Management Services” is defined in Section 6.10.
“Material Contracts” is defined in Section 4.14.
“Maximum Cap” means the Cap calculated as if Investor has contributed both the Initial Investor Capital Contribution and the Second Investor Capital Contribution.

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“Network Assets” means the Transmitter Sites, tower structures, antennas, transmitters, base radios, switches, aggregation points and all other equipment owned or leased by the Entities and used in connection with their business.
“Nextel Mexico Escrow” means the funds held in the applicable escrow account at Citibank N.A. pursuant to that certain Escrow Agreement, dated January 26, 2015, among NIU Holdings, Citibank, N.A. and AT&T Mobility Holdings B.V. (as permitted assignee).
“NII Group Companies” means Parent and its Subsidiaries.  
“NII International” is defined in the Preliminary Statements.
“NII Material Adverse Effect” means a material adverse effect on the ability of NII Telecom or Parent to consummate the transactions contemplated by this Agreement or any Ancillary Agreement or perform its obligations under this Agreement or any Ancillary Agreement on a timely basis.
“NII Telecom” is defined in the Preamble.
“NIU Holdings” means NIU Holdings LLC, a Delaware limited liability company and indirect wholly owned subsidiary of Parent.
“Non-Disclosure Agreement” means the Confidentiality Agreement, dated as of November 30, 2015, between AINMT Holdings AB, a corporation existing under the Laws of Sweden, and Parent.
“Notice of Exercise” is defined in Section 2.6(b).
“Opco” is defined in the Preliminary Statements.
“Opco Financial Statements” is defined in Section 4.9(a).
“Option Expiration Date” is defined in Section 2.6(b).
“Option Termination Date” is defined in Section 2.6(a).
“Order” means any order, consent, injunction, judgment, decree, ruling, writ, assessment or arbitration award of a Governmental Authority or arbitrator.
“Ordinary Course of Business” means the ordinary and usual course of day-to-day operations of the business consistent with past practice of the applicable Entity.
“Ordinary Shares” means the ordinary shares, with a nominal value of $1.00 per share, of the Company.

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“Owned Property” means all real property owned by the Entities.
“Ownership Change” is defined in Section 8.6(a).
“Parent” is defined in the Preamble. 
“Parent Board Recommendation” is defined in Section 4.29.
“Parent Cash Schedule” means the schedule set forth in Section 4.35 of the Company Disclosure Letter setting out the freely distributable unrestricted cash (not including cash held in the Nextel Mexico Escrow) held by Parent and its Affiliates (other than Brazil Parent, Opco and its Subsidiaries) as at the Parent Cash Schedule Date.
“Parent Cash Schedule Date” means June 2, 2017.
“Parent Financial Statements” is defined in Section 4.9(a).
“Parent Guaranteed Parties” is defined in Section 9.1(a).
“Parent Stockholder Approval” means the affirmative vote of a majority of the votes properly cast (excluding any abstentions or broker non-votes) by holders of common stock, nominal value $0.001 per share, of Parent entitled to vote at the Parent Stockholders Meeting in favor of authorizing this Agreement and the transactions contemplated hereby.
“Parent Stockholders Meeting” is defined in Section 6.12(c).
“Parent Takeover Proposal” means any inquiry, proposal, indication of interest in making a proposal or offer by any Person or group (other than Investor and its Affiliates) after the date of this Agreement which is structured to permit such Person or group to acquire (whether pursuant to a merger, consolidation, amalgamation, arrangement, or other business combination sale of shares, sale of assets, take-over bid, tender offer or exchange offer or otherwise, including any single or multi-step transaction or series of related transactions) ownership, directly or indirectly, of (i) more than 20% of any class of capital stock, other equity securities or voting power of Parent or any resulting parent company of Parent, or (ii) assets or businesses of Parent or its Subsidiaries (including any voting equity interest of its Subsidiaries, but excluding sales of assets in the ordinary course of business) representing more than 20% of the fair market value of the consolidated assets of Parent or which generate more than 20% of Parent’s net revenue or net income on a consolidated basis (for the 12-month period ending on the last day of Parent’s most recently completed fiscal quarter).
“Parties” means Investor, Company and NII Telecom.
“Permits” means any approvals, authorizations, consents, licenses, permits or certificates issued by a Governmental Authority, but excluding Telecommunication Licenses.

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“Permitted Leakage” means those items and amounts set forth on Section 1.1(c) of the Company Disclosure Letter.
“Permitted Liens” means (i) all defects, exceptions, restrictions, easements, rights of way and encumbrances disclosed in policies of title insurance which have been Made Available to Investor, (ii) statutory liens for any Taxes, assessments or other governmental charges not yet delinquent or the amount or validity of which is being contested in good faith through appropriate proceedings, (iii) mechanics’, carriers’, workers’, repairmen’s and similar Liens arising or incurred in the Ordinary Course of Business, not yet delinquent, that are not material to the business, operations and financial condition of the Owned Property so encumbered, and that are not resulting from a breach, default or violation by the Company of any Contract or Law, (iv) zoning, entitlement and other land use and environmental regulations, (v) liens securing debt as disclosed in the Financial Statements, (vi) title of a lessor under a capital or operating lease, (vii) the Liens set forth on Section 1.1(d) of the Company Disclosure Letter, and (viii) such other imperfections in title, charges, easements, restrictions and encumbrances that would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect.
“Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Authority or other entity.
“PIS/PASEP” means the Brazilian Social Contributions (Contribuição para o Programa de Integração Social and Programa de Formação do Patrimônio do Servidor Público).
“Pre Initial Closing Subscription Amount” is defined in Section 2.3(a).
“Preferred Shares” is defined in the Preliminary Statements.
“Privileged Communications” is defined in Section 9.11.
“Proxy Statement” is defined in Section 6.12(a).
“Regulatory Approval” means the approval of ANATEL and any Governmental Authority (excluding the Antitrust Approval) for the change of control of the Entities that is required to be received in connection with the consummation of the transactions contemplated by this Agreement.
“Released Escrow Proceeds” means all cash amounts released from the Nextel Mexico Escrow from time to time (whether in the past, present or future) and which shall be contributed by NII Telecom, or Parent on NII Telecom’s behalf, to the Company on or after the Initial First Closing Date pursuant to Section 2.5.
“Remaining NII Retained Cash” is defined in Section 2.1(k).

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“Restated Articles of Association” means the Amended and Restated Articles of Association of the Company substantially in the form attached as Exhibit A-1.
“Retained NII Group” means the NII Group Companies other than the Company, NII International and their Subsidiaries. 
“Schedule of Intercompany Receivables/Payables” means Section 4.9 of the Company Disclosure Letter.
“SEC” means the U.S. Securities and Exchange Commission.
“Second Closing” is defined in Section 3.4.
“Second Closing Date” is defined in Section 3.4.
“Second Investor Capital Contribution” is defined in Section 2.6(a).
“Second Restated Articles of Association” means the Second Amended and Restated Articles of Association of the Company substantially in the form attached as Exhibit A-2.
“Second Tranche Shares” is defined in Section 2.7(b).
“Shareholders’ Agreement” means the shareholders’ agreement to be entered into by the Company, Investor and NII Telecom, in the form attached hereto as Exhibit B.
“Shares” mean the Ordinary Shares and the Preferred Shares.
“Software” means any and all (i) computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code, (ii) databases and compilations, including any and all data and collections of data, whether machine readable or otherwise, (iii) descriptions, flow-charts and other work product used to design, plan, organize and develop any of the foregoing, (iv) screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons, and (v) all documentation including user manuals and other training documentation related to any of the foregoing.
“Subsidiary” and “Subsidiaries” of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such voting interests, more than 50% of the share capital of which) is owned directly or indirectly by such first Person or by another subsidiary of such first Person.
“Superior Proposal” means a bona fide written proposal or offer constituting a Brazil Proposal or a Parent Takeover Proposal (with references to 20% 

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being deemed to be replaced with references to 50%), in each case, that Parent’s board of directors determines in good faith after consultation with Parent’s outside legal and financial advisors is more favorable to the stockholders of Parent than the transactions contemplated by this Agreement after taking into account all relevant factors, including (a) the breakup fee, (b) all the terms and conditions of such proposal or offer and (c) any alternative proposal offered by Investor.
“Tax” or “Taxes” means (i) any and all taxes, however denominated, including any deficiencies, assessments, governmental charges, duties (including custom duties), fees, imposts, levies, interest, additions to tax or, fines, penalties or additional amounts that may become payable in respect thereof, imposed by any national, state, federal, provincial, county, local or foreign Governmental Authority responsible for the imposition of any such tax (each, a “Tax Authority”), which taxes will include, without limiting the generality of the foregoing, all income taxes, alternative or add-on minimum, escheat, capital, ad valorem, profits, license, privilege, inventory, capital stock, capital gain taxes, PIS/PASEP, COFINS, CSLL, social contribution taxes, payroll taxes and employee withholding taxes (INSS and FGTS), value added customs, unemployment insurance, social security, service taxes, sales and use taxes, excise taxes, environmental taxes, franchise taxes, gross receipts taxes, occupation taxes, real and personal property taxes, estimated taxes, stamp taxes, documentary taxes, transfer taxes, withholding taxes, and other obligations of the same or of a similar nature, whether arising or enacted before, on or after the Initial First Closing Date; and (ii) any liability in respect of any item described in clause (i) payable by reason of contract, transferee liability, operation of Law or otherwise.
“Tax Authority” has the meaning set forth in the definition of Tax.
“Tax Matter” means any inquiry, claim, assessment, audit or similar event with respect to Taxes before any Tax Authority or any other Governmental Authority.
“Tax Return” means all returns, declarations, notices, computations, reports, estimates, claims for refunds, information returns, elections and statements required to be filed with any Governmental Authority or Tax Authority in respect of any Taxes, including any amendments thereto and requests for the extension of time in which to file any such return, declaration, report, estimate, information return, election or statement.
“Telecommunication Licenses” means any permit or authorization granted by ANATEL for the operation of any kind of telecommunications services, including the use of spectrum, network or band-width.
“Telefônica” means Telefônica Brasil S.A.
“Telefônica RAN Sharing Agreement” means the Contrato de Compartilhamento de Rede – RAN Sharing, dated as of May 22, 2016 entered into by Telefônica and Opco, including all its schedules and ancillary documents.

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“Telefônica Roaming Agreement” means the Contrato de Exploração Industrial de Rede Móvel, dated as of December 26, 2013, entered by Telefônica and Opco, as amended, including all its schedules and ancillary documents.
“Termination Fee” is defined in Section 3.8(b).
“Third Party Claim” is defined in Section 8.5(a).
“Trademarks” is defined within the definition of Intellectual Property.
“Trademark Sublicense Agreement” means the Trademark Sublicense Agreement, dated January 1, 2012, by and between Parent and Opco.
“Transmitter Sites” means all rooftop, tower or other structures on which the Entities have radio transmitters, as applicable.
“U.S.” means the United States of America.
“US GAAP” means generally accepted accounting principles in effect in the United States of America applied on a basis consistent in all material respects as applied in NII International’s financial statements.
1.2    Construction Rules and Interpretative Matters.  The following rules of construction and interpretation will apply:
(a)    when calculating the period of time in which any act is to be performed pursuant to this Agreement, the date that is the reference date in calculating the beginning of such period will be excluded. If the last day of such period is a non-Business Day, the period in question will end on the next succeeding Business Day;
(b)    any reference in this Agreement to “$” or “dollars” will mean U.S. dollars and to “Real” or “R$” means Brazilian Real;
(c)    the Exhibits and Schedules to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement;
(d)    any reference in this Agreement to gender will include all genders, and words imparting the singular number only will include the plural and vice versa;
(e)    the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience of reference only and will not affect or be utilized in construing or interpreting this Agreement;
(f)    all references in this Agreement to any “Section” are to the corresponding Section of this Agreement unless otherwise specified;

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(g)    words such as “herein”, “hereinafter”, “hereof” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires;
(h)    the word “including” or any variation thereof means “including, without limitation” and will not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it;
(i)    any reference to the “date hereof” means the date of this Agreement;
(j)    references to Laws mean a reference to such Laws as the same may be amended, modified, supplemented from time to time; 
(k)    references to percentages “of the share capital in the Company on a fully diluted basis” (or similar language) mean such percentages without regard to any employee equity compensation plans (approved, to the extent required, pursuant to this Agreement or the Shareholders’ Agreement), and such percentages shall be adjusted in proportion to any stock issuances pursuant to such mutually agreed employee equity compensation plans; and
(l)    the Parties have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as jointly drafted by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.
		
	II.
	CAPITAL CONTRIBUTIONS AND SUBSCRIPTION FOR PREFERRED SHARES

2.1    Escrow Mechanics and Obligations Before Initial First Closing. Subject to the terms and conditions of this Agreement:
(a)    Within two Business Days of receipt of the same by Investor, Investor shall deliver to NII Telecom a copy of the Bank Letter;
(b)    Promptly following the Effective Date (i) Investor Parent will call the Investor Parent Shareholders Meeting to be held within 12 Business Days of the Effective Date and use its commercially reasonable efforts to obtain any approvals required by applicable Law from the shareholders of Investor Parent, (ii) AINMT AS will call the AINMT AS Shareholders Meeting to be held within 12 Business Days of the Effective Date and use its commercially reasonable efforts to obtain any approvals required by applicable Law from the shareholders of AINMT AS, in each case in connection with the Initial Investor Capital Contribution and the subscription for the Initial First Investor Shares and Initial Second Investor Shares pursuant to the terms of this Agreement. AINMT AS confirms to NII Telecom that, at the date of this Agreement, the majority of directors of AINMT AS intend to recommend its shareholders to vote in 

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favor of the resolutions to be proposed at the AINMT AS Shareholders Meeting, and AINMT AS is not aware of any fact or circumstance which would result in such directors changing such recommendation. Neither AINMT AS nor Investor Parent shall be in breach of any obligation under Section 2.1(b) if compliance with such obligation would be in breach of their respective directors’ fiduciary duties under applicable Law or if the Investor or Investor Parent or AINMT AS is not satisfied with the contents (acting reasonably) of the updated Company Disclosure Letter delivered under Section 2.1(h)(i). 
(c)    On the Escrow Pay-In Date:
(i)    each of NII Telecom and Investor will (and the Parties will cause the Escrow Agent to) deliver to each other Party and the Company a duly executed counterpart of the Escrow Agreement, executed by each of NII Telecom, Investor and the Escrow Agent respectively;
(ii)    Investor will arrange for the transfer of the Escrow Amount to the Escrow Account, such amount to be held on the terms of the Escrow Agreement and this Agreement.
(d)    At the Initial First Closing the relevant actions specified in Sections 2.3 and 3.2 will occur, and receipt by the Company from the Escrow Account of the Escrow Initial Tranche Amount shall discharge Investor from its obligation to pay such amounts of the Initial Investor Capital Contribution to the Company in respect of the subscription for the Initial First Investor Shares in accordance with Section 2.3(b).
(e)    If the Escrow Initial Tranche Condition has not been satisfied by 5:00 pm New York time on the last day of the Escrow Period, this Agreement may be terminated in accordance with Section 3.6(j) and the Escrow Amount will be released to Investor.
(f)    At the Initial Second Closing, the relevant actions specified in Sections 2.4(a), 2.4(b) and 3.3 will occur, and receipt by the Company from the Escrow Account of the Escrow Second Tranche Amount shall discharge Investor from its obligation to pay such amounts of the Initial Investor Capital Contribution to the Company in respect of the subscription for the Initial Second Investor Shares in accordance with Section 2.4(a).
(g)    If by 5:00 pm New York time on the last day of the Escrow Period, the Escrow Second Tranche Condition has not been met, then the remaining amount in the Escrow Account at such time will be released to Investor.
(h)    Parent shall deliver to Investor (i) an updated Company Disclosure Letter as promptly as reasonably practicable after the Effective Date but in any event within five (5) Business Days from the Effective Date, such updated Company Disclosure Letter being updated only for the period from April 21, 2017 up until the 

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Effective Date and (ii) final form tax analyses prepared by Deloitte Tax LLP and addressed to the Company on US, Brazil and Luxembourg Tax consideration related to the Luxco Reorganization, by no later than 15 Business Days from the Effective Date, including the information set forth in Section 2.1(h) of the Company Disclosure Letter.
(i)    The Company, Parent and NII Telecom shall, as promptly as reasonably practicable after the Effective Date, but in any event prior to the Compliance Notification Date, cause each of the Entities (other than the Company) to amend their articles of association, articles of incorporation, bylaws and other constitutional or organizational documents to:
(i)    require that any transfer or attempted transfer, or any issuance, of any shares, stock or securities of such Entity shall require the prior written consent of Investor and that any such transfer or attempted transfer, or any issuance, of any shares, stock or securities of such Entity without such prior written consent shall be null and void ab initio; and
(ii)    such Entity shall not (A) transfer or issue on its books any of the shares, stock or securities that have been sold, issued or transferred in violation of the consent requirement at clause (i) above, or (B) treat as owner of such shares, stock or securities or to pay dividends or other distributions to any purported transferee to whom any such shares, stock or securities purported to have been sold, issued or transferred.
(j)    From the Effective Date, the Company will not (and shall procure that no Group Member will), and until the Second Closing NII Telecom will procure that the Company will not (and shall procure that no Group member will): (i) transfer to another entity, or otherwise take any actions with respect to, any Intercompany Debt that would create a taxable event under the U.S. Internal Revenue Code or the U.S. Treasury Regulations thereunder, or (ii) cause the Intercompany Debt not to be “disregarded” for U.S. Tax purposes, in each case without the prior written consent of (A) from the Effective Date until the Second Closing (if any), NII Telecom and (B) from and after the Effective Date, Investor. Any transfer or attempted transfer, or any issuance, of any shares, stock or securities of any Entity (other than the Company) shall require the prior written consent of the Investor and any such transfer or attempted transfer, or any issuance, of any shares, stock or securities of such Entity without such prior written consent shall be null and void ab initio. The Company (and the Company shall procure than any Entity) shall not (1) transfer or issue on its books any of the shares, stock or securities that have been sold, issued or transferred in violation of any of the provisions set forth in this Agreement, or (2) treat as owner of such shares, stock or securities or to pay dividends or other distributions to any purported transferee to whom any such shares, stock or securities purported to have been sold, issued or transferred.
(k)    From the Effective Date, the Parties acknowledge and agree that the Parent and Retained NII Group may only use $50,000,000 of the freely distributable 

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unrestricted cash held by the Retained NII Group as at the Effective Date for the ongoing operations of the Retained NII Group (the remaining amount of such $50,000,000 as at the Initial First Closing, less, for the avoidance of doubt, any costs and expenses incurred and other amounts paid by the Retained NII Group between the Effective Date and the Initial First Closing being the “Remaining NII Retained Cash”).
2.2    Escrow Monies
(a)    Except as provided in this Agreement or with the prior written consent of each of Investor and NII Telecom, no releases or withdrawals will be made from the Escrow Account. 
(b)    Any bank or other charges arising on the Escrow Account will be charged to the Company.
(c)    Any interest or profit generated from the Escrow Account (subject to any deduction of tax at source and any bank or other charges properly charged to the Escrow Account) will be retained in the Escrow Account and will form part of the Escrow Amount. Any final payments out of the Escrow Account will have added to them the interest or profit accrued to the Escrow Account on the Business Day preceding the date of the relevant payment.
(d)    If this Agreement is terminated, any amounts outstanding in the Escrow Account from time to time shall be returned to Investor within 2 Business Days of such termination.
(e)    Investor and NII Telecom shall give such instructions to the Escrow Agent without delay as may be required to give full effect to the provisions of Section 2.1 and this Section 2.2.
2.3    Initial First Tranche.  Subject to the terms and conditions of this Agreement:
(a)    As soon as practical after the Effective Date and prior to the Initial First Closing, NII Telecom will (i) subscribe for 116,641,667 Ordinary Shares at the Funding Valuation Rate and (ii) pay to the Company an aggregate capital contribution of $116,641,667 in cash (the “Pre Initial Closing Subscription Amount”).
(b)    At the Initial First Closing, Investor will (i) subscribe for 28,984,600 Preferred Shares (the “Initial First Investor Shares”) at the Funding Valuation Rate, and (ii) pay to the Company an aggregate capital contribution in cash of the Escrow Initial Tranche Amount.
(c)    At the Initial First Closing, in exchange for the Escrow Initial Tranche Amount to be paid by Investor to the Company, the Company will issue and allot to Investor the Initial First Investor Shares.

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(d)    At the Initial First Closing, NII Telecom will contribute to the Company, as a capital contribution into a 115 Account of the Company (and such capital contribution shall not be used to subscribe for Shares), an amount, in cash, equal to (i) the aggregate amount of the freely distributable unrestricted cash (including all cash released from the Nextel Mexico Escrow prior to the Initial First Closing held by Parent and its Affiliates (other than Brazil Parent, Opco and its Subsidiaries) being at least $53,000,000 minus (ii) the Remaining NII Retained Cash plus (iii) an amount equal to any Leakage received by or for the benefit of any member of the Retained NII Group (the “Initial Parent Capital Contribution”).
(e)    For the avoidance of doubt, following the Initial First Closing, the Parties intend that (as illustrated by the Capitalization Table) (i) Investor shall hold 19.9% of the share capital of the Company on a fully diluted basis and (ii) NII Telecom shall hold 80.1% of the share capital of the Company on a fully diluted basis until the Initial Second Closing, if any.
2.4    Initial Second Tranche.  Subject to the terms and conditions of this Agreement, at the Initial Second Closing:
(a)    Investor will (i) subscribe for 21,015,400 Preferred Shares (the “Initial Second Investor Shares”) at the Funding Valuation Rate, and (ii) pay to the Company an aggregate capital contribution equal to the Escrow Second Tranche Amount (“Initial Second Tranche Investor Contribution”).
(b)    In exchange for the Initial Second Tranche Investor Contribution to be paid by Investor to the Company, the Company will issue and allot to Investor the Initial Second Investor Shares.
(c)    For the avoidance of doubt, following the Initial Second Closing, and subject to satisfaction of the Escrow Second Tranche Condition, the Parties intend that (as illustrated by the Capitalization Table) (i) Investor shall hold 30% of the share capital of the Company on a fully diluted basis and (ii) NII Telecom shall hold 70% of the share capital of the Company on a fully diluted basis until the Second Closing, if any.
(d)    The Parties acknowledge and agree that the Initial Investor Capital Contribution, the Pre Initial Closing Subscription Amount and the Initial Parent Capital Contribution will be made available to the Company and its Subsidiaries for general corporate purposes (including for the repayment of Indebtedness) and to develop the future business of the Company and its Subsidiaries.
2.5    Released Escrow Proceeds.  
(a)    On or after the Initial First Closing Date, NII Telecom will contribute, or Parent will contribute on NII Telecom’s behalf, promptly to the Company from time to time the Released Escrow Proceeds, which shall be contributed into a 115 Account, where they shall remain subject to Section 2.7(b) such that Investor’s share capital in 

24

the Company is not diluted. NII Telecom shall promptly, and in any event within 5 Business Days, notify Investor in writing on becoming aware that any Released Escrow Proceeds are or will become available, such notice to include such amounts to be released, and shall promptly, and in any event within 5 Business Days of such request, provide any information reasonably requested by Investor in connection therewith. NII Telecom will also provide Investor with any information and documentation to implement the contribution of the Released Escrow Proceeds in accordance with this Agreement prior to such contribution being made, and shall include any reasonable comments received from Investor in respect of the same.  
2.6    Investor Option to Subscribe for Additional Preferred Shares.  (a)  Subject to the terms and conditions of this Agreement, until January 31, 2018 (the “Option Termination Date”), Investor will have the option, exercisable at Investor’s sole discretion, to subscribe for an additional $150,000,000 of Preferred Shares in cash, being 150,000,000 Preferred Shares (the “Second Investor Capital Contribution”) at the Funding Valuation Rate (such option, the “Investor Option”, and such shares, the “Investor Option Shares”).  
(b)    Investor may exercise the Investor Option by delivering written notice to the Company and Parent (“Notice of Exercise”), and concurrently delivering evidence of Investor’s financial ability to satisfy the amount of the Second Investor Capital Contribution in substantially similar form to the Bank Letter delivered by Investor to NII Telecom pursuant to Section 2.1(a) or in such other form reasonably satisfactory to Parent that demonstrates that the Investor has financial resources available to satisfy the amount of the Second Investor Capital Contribution (the “Evidence of Financial Capacity”) on or prior to November 15, 2017 (the “Option Expiration Date”). The date of such Notice of Exercise will be the “Exercise Date”.
2.7    Second Tranche.  If Investor has provided the Notice of Exercise prior to the Option Expiration Date pursuant to Section 2.6, then subject to the terms and conditions of this Agreement, at the Second Closing:
(a)    Investor will (i) subscribe for the Investor Option Shares at the Funding Valuation Rate and (ii) pay to the Company the Second Investor Capital Contribution.
(b)    NII Telecom will (i) subscribe for 16,667,000 Preferred Shares at the Funding Valuation Rate (the “Additional Parent Shares” and together with the Investor Option Shares, the “Second Tranche Shares”), such subscription to be funded out of the contributions previously made by Parent to the 115 Account (the “Second Parent Capital Contribution”). 
(c)    For the avoidance of doubt, following the Second Closing, the Parties intend that, as illustrated in the Capitalization Table, (i) Investor shall hold 60% of the share capital of the Company on a fully diluted basis and (ii) NII Telecom shall hold 40% of the share capital of the Company on a fully diluted basis.

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	III.
	CLOSING AND TERMINATION

3.1    Initial First Closing Date.  The Initial First Closing will take place five Business Days after satisfaction of the Escrow Initial Tranche Condition (the “Initial First Closing”).
3.2    Initial First Closing Deliveries.  At the Initial First Closing:
(a)    the Company will:
(i)    issue the Initial First Investor Shares to Investor and undertake to complete all formalities required to be observed under Luxembourg and other applicable Law in order to authorize the issuance and allotment of the Initial First Investor Shares shall have been observed (including any required increase of the authorized capital of the Company and the authorization by the general meeting of shareholders of the Company of the issuance and allotment of the Initial First Investor Shares to Investor);
(ii)    deliver a signed contribution agreement on customary terms with NII Telecom in relation to the contribution by NII Telecom to the Company of the Initial Parent Capital Contribution;
(iii)    record the Initial Parent Capital Contribution to the 115 Account;
(iv)    deliver a signed subscription agreement on customary terms with Investor in relation to its subscription for the Initial First Investor Shares; and
(v)    execute the necessary documentation under Luxembourg Law (including to appear in front of a Luxembourg notary to record the issuance of the Initial First Investor Shares) and do all such other acts and things as may, in the reasonable opinion of Investor and NII Telecom, be required to fully adopt and file the Restated Articles of Association and fully effect the issuance and allotment of the Initial First Investor Shares to Investor, including the convening and holding of meetings of the board and shareholders of the Company and registering such issuance in the shareholder register of the Company; 
(b)    Investor will:
(i)    instruct the Escrow Agent pursuant to the terms of the Escrow Agreement to pay by wire transfer of immediately available funds into one or more bank accounts specified by the Company in a written notice delivered to the Escrow Agent at least two Business Days before the Initial First Closing, an amount in cash equal to the Escrow Initial Tranche Amount;

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(ii)    deliver a signed subscription agreement on customary terms with the Company pursuant to which it agrees to subscribe for the Initial First Investor Shares. and
(iii)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of the Company and NII Telecom, be required to subscribe for the Initial First Investor Shares.
(c)    NII Telecom will:
(i)    instruct the Escrow Agent pursuant to the terms of the Escrow Agreement to pay by wire transfer of immediately available funds into one or more bank accounts specified by the Company in a written notice delivered to the Escrow Agent at least two Business Days before the Initial First Closing, an amount in cash equal to the Escrow Initial Tranche Amount;
(ii)    pay by wire transfer of immediately available funds into one or more bank accounts specified by the Company in a written notice which the Company will deliver to NII Telecom at least two Business Days before the Initial First Closing, an amount in cash equal to the Initial Parent Capital Contribution;
(iii)    deliver a signed contribution agreement on customary terms with the Company pursuant to which it agrees to contribute the Initial Parent Capital Contribution to the 115 Account of the Company;
(iv)    deliver a shareholders resolution of the Company accepting the Initial Parent Capital Contribution and resolving to allocate it to the 115 Account;
(v)    deliver or cause to be delivered a certificate signed by an authorized officer of NII Telecom, dated as of the Initial First Closing, to the effect that all the shares in the capital of the Entities (other than the Company) are duly authorized and are validly issued, and are all issued to and held legally and beneficially by an Entity free and clear of all Liens, together with a copy of the then current register of shareholders or members of each Entity (other than the Company);
(vi)    deliver evidence that it authorized, as the sole shareholder of the Company, at the general meeting of shareholders of the Company, the issuance and allotment of the Initial First Investor Shares to Investor; and
(vii)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of Investor and the Company, be required for Investor to subscribe for the Initial First Investor Shares and fully adopt and file the Restated Articles of Association.
3.3    Initial Second Closing Deliveries.  The Initial Second Closing will take place five Business Days after the satisfaction of the Escrow Second Tranche 

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Condition (which shall be extended to the Initial First Closing if the Antitrust Approval is obtained prior to the Escrow Initial Tranche Condition being satisfied) (the “Initial Second Closing”). At the Initial Second Closing:
(a)    the Company will:
(i)    issue the Initial Second Investor Shares to Investor and undertake to complete all formalities required to be observed under Luxembourg and other applicable Law in order to authorize the issuance and allotment of the Initial Second Investor Shares shall have been observed (including any required increase of the authorized capital of the Company and the authorization by the general meeting of shareholders of the Company of the issuance and allotment of the Initial Second Investor Shares to Investor); 
(ii)    deliver a signed subscription agreement on customary terms (as approved before the Initial Second Closing by Investor acting reasonably and promptly) with Investor in relation to the subscription for the Second Investor Shares;
(iii)    deliver a signed contribution agreement on customary terms with NII Telecom in relation to the contribution by NII Telecom to the Company of any Released Escrow Proceeds;
(iv)    record any Released Escrow Proceeds contributed to the 115 Account; and
(v)    execute the necessary documentation under Luxembourg Law (including to appear in front of a Luxembourg notary to record the issuance of the Initial Second Investor Shares) and do all such other acts and things as may, in the reasonable opinion of Investor, be required to fully effect the issuance and allotment of the Initial Second Investor Shares to Investor, including the convening and holding of meetings of the board and shareholders of the Company and registering such issuance in the shareholder register of the Company.
(b)    Investor will:
(i)    in accordance with the terms of the Escrow Agreement, instruct the Escrow Agent to pay by wire transfer of immediately available funds (A) into the bank accounts specified by the Company in a written notice delivered to the Escrow Agent at least two Business Days before the Initial Second Closing, an amount in cash equal to the Escrow Second Tranche Amount, and (B) to the Investor any remaining amount in the Escrow Account (if any) after the payment set out at (A);
(ii)    deliver a signed subscription agreement on customary terms (as approved before the Initial Second Closing by Investor acting reasonably and promptly) with the Company pursuant to which it agrees to subscribe for the Second Investor Shares; and 

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(iii)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of the Company and NII Telecom, be required to subscribe for the Initial Second Investor Shares.
(c)    NII Telecom will:
(i)    in accordance with the terms of the Escrow Agreement, instruct the Escrow Agent to pay by wire transfer of immediately available funds: (A) into the bank accounts specified by the Company in a written notice delivered to the Escrow Agent at least two Business Days before the Initial Second Closing, an amount in cash equal to the Escrow Second Tranche Amount, and (B) to the Investor any remaining amount in the Escrow Account (if any) after the payment set out at (A);
(ii)    deliver a signed contribution agreement on customary terms with the Company pursuant to which it agrees to contribute any Released Escrow Proceeds to the 115 Account of the Company;
(iii)    deliver a shareholders resolution of the Company accepting any Released Escrow Proceeds contributed and resolving to allocate it to the 115 Account;
(iv)    deliver evidence that it authorized, at the general meeting of shareholders of the Company, the issuance and allotment of the Initial Second Investor Shares to Investor; and
(v)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of Investor and the Company, be required for Investor to subscribe for the Initial Second Investor Shares.
3.4    Second Tranche Closing.  Subject to the satisfaction of the conditions set forth in Section 7.1, Section 7.2 and Section 7.3, or the waiver thereof by the Party entitled to waive that condition, the closing of the subscription and payment for the Second Tranche Shares (the “Second Closing”) will take place at, or be directed from, the offices of Jones Day located at 250 Vesey Street, New York, New York, or at such other place as NII Telecom and Investor may agree, at 10:00 a.m. New York City time, on the date that is five Business Days following the satisfaction or waiver of the conditions set forth in Article VII, other than conditions that by their nature are to be satisfied at the Second Closing, but subject to the satisfaction or waiver of such conditions, unless another time or date, or both, are agreed to in writing by the Parties (the “Second Closing Date”).
3.5    Second Closing Deliveries. At the Second Closing, if applicable:
(a)    the Company will:

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(i)    issue the Investor Option Shares and the Additional Parent Shares to Investor and NII Telecom respectively and undertake to complete all formalities required to be observed under Luxembourg and other applicable Law in order to authorize the issuance and allotment of the Second Tranche Shares shall have been observed (including any required increase of the authorized capital of the Company and the authorization by the general meeting of shareholders of the Company of the issuance and allotment of the Investor Option Shares and the Additional Parent Shares to Investor and NII Telecom, respectively);
(ii)    deliver signed subscription agreements on customary terms with Investor and NII Telecom in relation to their subscription for the Investor Option Shares and Additional Parent Shares, as applicable; and
(iii)    execute the necessary documentation under Luxembourg Law (including to appear in front of a Luxembourg notary to record the issuance of the Second Tranche Shares) and do all such other acts and things as may, in the reasonable opinion of Investor and NII Telecom, be required to fully adopt and file the Second Restated Articles of Association and fully effect the issuance and allotment of the Second Tranche Shares to Investor and NII Telecom, including taking such actions necessary to deduct an amount equal to the Second Parent Capital Contribution from the 115 Account and to recognize such amount as a capital contribution from NII Telecom, the convening and holding of meetings of the board and shareholders of the Company and registering such issuance in the shareholder register of the Company.
(b)    Investor will:
(i)    deliver or cause to be delivered the officer’s certificate required to be delivered pursuant Section 7.2(a) and Section 7.2(b);
(ii)    pay by wire transfer of immediately available funds into one or more bank accounts specified by the Company in a written notice delivered to Investor at least two Business Days before the Second Closing, an amount in cash equal to the Second Investor Capital Contribution;
(iii)    deliver a signed subscription agreement on customary terms with the Company pursuant to which it agrees to subscribe for the Investor Option Shares; and
(iv)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of the Company and NII Telecom, be required to subscribe for the Investor Option Shares.
(c)    NII Telecom will:
(i)    deliver the officer’s certificate required to be delivered pursuant Section 7.1(a) and Section 7.1(b);

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(ii)    deliver a signed subscription agreements on customary terms with the Company pursuant to which it agrees to subscribe for the Additional Parent Shares;
(iii)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of Investor and the Company, be required for Investor to subscribe for the Investor Option Shares; and
(iv)    execute the necessary documentation under Luxembourg Law and do all such other acts and things as may, in the reasonable opinion of Investor and the Company, be required for NII Telecom to subscribe for the Additional Parent Shares and fully adopt and file the Second Restated Articles of Association.
3.6    Termination of Agreement.  This Agreement may be terminated before the Second Closing as follows:
(a)    by Investor or NII Telecom, if the Second Closing has not occurred by the close of business on the Option Termination Date; provided, however, that if the Second Closing has not occurred on or before the Option Termination Date due to a material breach of any representations, warranties or covenants contained in this Agreement by Investor, on the one hand, or by NII Telecom or the Company, on the other hand, then the breaching Party may not terminate this Agreement pursuant to this Section 3.6(a); provided further, however, that if, on the Option Termination Date, any of the conditions to the Second Closing set forth in Section 7.3(b) or Section 7.3(c) shall have not been fulfilled but all other conditions to the Second Closing either have been fulfilled or are then capable of being fulfilled, then the Option Termination Date shall, without any action on the part of the Parties, be extended for an additional 30 days after the original Option Termination Date; 
(b)    by mutual written consent of Investor and NII Telecom;
(c)    by Investor, if the Company or NII Telecom breaches any representation or warranty or any covenant contained in this Agreement, such breach would result in a failure of a condition set forth in Section 7.1 or Section 7.3 and such breach has not been cured by the earlier of (i) 10 Business Days after the giving of written notice by Investor to NII Telecom of such breach and (ii) the Option Termination Date; provided, however, this Agreement may not be terminated pursuant to this Section 3.6(c) by Investor if Investor is then in material breach of any representation, warranty, covenant or agreement set forth in this Agreement;
(d)    by NII Telecom, if Investor breaches any representation or warranty or any covenant contained in this Agreement, such breach would result in a failure of a condition set forth in Section 7.2 or Section 7.3 and such breach has not been cured by the earlier of (i) 10 Business Days after the giving of written notice by NII Telecom to Investor of such breach and (ii) the Option Termination Date; provided, however, this 

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Agreement may not be terminated pursuant to this Section 3.6(d) by NII Telecom if NII Telecom or Parent is then in material breach of any representation, warranty, covenant or agreement set forth in this Agreement;
(e)    by NII Telecom or Investor if there is in effect a final non-appealable Order of a Governmental Authority of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; provided, that this Agreement may not be terminated pursuant to this Section 3.6(e) by NII Telecom or Investor if such Party is then in breach of its covenants and agreements set forth in Sections 6.6 or 6.7; 
(f)    by NII Telecom or Investor, if the Parent Stockholder Approval is not obtained at the Parent Stockholders Meeting (including any adjournment or postponement thereof) at which a vote on such approval was taken;
(g)    by NII Telecom, at any time after the date of this Agreement and prior to the receipt of the Parent Stockholder Approval, in order to concurrently enter into a definitive agreement with respect to a Superior Proposal; provided, that Parent shall have complied in all material respects with Section 6.13(d) and shall have paid or shall concurrently pay the Termination Fee to Investor in accordance with Section 3.8(b); 
(h)    by Investor, if NII Telecom, Parent or Parent’s board of directors shall (i) have effected an Adverse Recommendation Change, (ii) approved, recommended or entered into any Brazil Proposal or Parent Takeover Proposal, (iii) materially breached Section 6.13 or (iv) formally resolved or publicly authorized or proposed to take any of the foregoing actions;
(i)    by NII Telecom, if Investor has not delivered the Notice of Exercise and Evidence of Financial Capacity by the Option Expiration Date; 
(j)    by Investor, if the Escrow Initial Tranche Condition has not been satisfied by 5:00 pm New York time on the last day of the Escrow Period;
(k)    by NII Telecom or Investor, if the Escrow Payment Condition is not satisfied by the date that is 30 Business Days after the Effective Date; or
(l)    by NII Telecom or Investor, if Investor fails to notify NII Telecom of the satisfaction of the condition set forth in clause (ii) of the definition of “Escrow Initial Tranche Condition” prior to the Compliance Notification Date.
3.7    Procedure Upon Termination.  If termination pursuant to Section 3.6 occurs (a) written notice will be given to the other Party and this Agreement will terminate without further action by Investor or NII Telecom, (b) each Party will deliver all documents, work papers and other material of any other Party relating to the transactions contemplated hereby, whether obtained before or after the execution 

32

hereof, to the Party that furnished the same, (c) all confidential information received by Investor with respect to the business of NII Telecom and the Entities will be treated in accordance with the Non-Disclosure Agreement, which will remain in full force and effect in accordance with its terms notwithstanding the termination of this Agreement, and (d) to the extent terminated pursuant to Section 3.6(j) above, the Escrow Amount will be returned to Investor, and Investor and NII Telecom will undertake to instruct the Escrow Agent to do the same without delay.
3.8    Effect of Termination.  (a) If termination pursuant to Section 3.6 occurs, (i) each of the Parties will be relieved of its duties and obligations arising under this Agreement after the date of such termination and (ii) subject to Section 3.8(b) or Section 3.8(c), as applicable, such termination will be without liability to Investor, NII Telecom or the Company, provided, however, that the provisions of Section 3.7, this Section 3.8, Section 6.9 and Article IX and, to the extent necessary to effectuate the foregoing enumerated provisions, Section 1.1 and Section 1.2, will survive any such termination and will be enforceable hereunder, provided further, that nothing in this Section 3.8 will be deemed to release any Party from liability for fraud or any prior breach of its obligations under this Agreement.
(b)    NII Telecom will pay, or cause to be paid, to Investor by wire transfer of immediately available funds an amount in cash equal to: (i) if Investor has not exercised the Investor Option, $5,000,000; or (ii) if Investor has exercised the Investor Option, $5,000,000 plus the amount of documented commitment or structuring fees incurred by Parent or AINMT AS for purposes of committing funds or equity capital and actually paid by Investor Parent or AINMT AS, without duplication, to obtain funding for the Second Investor Capital Contribution and to obtain the Evidence of Financial Capacity, up to a maximum aggregate amount of $6,000,000, in each case without prejudice to the economic rights attaching to the Preferred Shares pursuant to the Shareholders Agreement, the Restated Articles of Association and, if applicable the Second Restated Articles of Association (the “Termination Fee”), if:
(i)    this Agreement is terminated by NII Telecom pursuant to Section 3.6(g), such payment to be made before or concurrently with such termination and, in the absence of such payment, any such purported termination will be invalid; or
(ii)    this Agreement is terminated by Investor pursuant to Section 3.6(h), such payment to be made within 5 Business Days of such termination.
(c)    Notwithstanding anything in this Agreement to the contrary, NII Telecom will not be required to pay to Investor any amounts due pursuant to Section 3.8 more than once.
(d)    The Parties acknowledge and agree that the Termination Fee constitutes liquidated damages and is not a penalty and will be the sole and exclusive remedy, including on account of punitive damages, for recovery by Investor in the event of and for the termination of this Agreement by NII Telecom pursuant to Section 3.6(g) 

33

or by Investor pursuant to Section 3.6(h). Notwithstanding anything to the contrary contained herein, upon payment of the Termination Fee, Parent, NII Telecom and their representatives and Affiliates will be fully released and discharged from any Liability under or resulting from this Agreement (excluding for the avoidance of doubt, the Shareholders’ Agreement and Restated Articles of Association and, if applicable, Second Restated Articles of Association), and neither Investor nor any other Person will have any other remedy or cause of action under this Agreement or any applicable Law, including for reimbursement of expenses or otherwise.
		
	IV.
	REPRESENTATIONS AND WARRANTIES OF NII TELECOM AND PARENT

Except as set forth in the disclosure letter delivered by the Company to Investor concurrently with the execution of this Agreement and updated in accordance with Section 2.1(h) (the “Company Disclosure Letter”), NII Telecom hereby represents and warrants to Investor that (and for the purposes of this Article IV, references to the Company will include the Company and NII International):
4.1    Organization of the Company.  The Company is an entity duly organized and validly existing under the laws of Luxembourg and has the requisite power and authority to own, lease and operate its properties and to carry on its business as now conducted.
4.2    Authorization of Agreement.  The Company has the requisite power and authority to execute and deliver this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which it is a party (the “Ancillary Agreements”) and, subject to the receipt of the Parent Stockholder Approval, to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each Ancillary Agreement and the consummation of the transactions contemplated hereby and thereby has been duly authorized by all requisite corporate action on the part of the Company, subject to receipt of the Parent Stockholder Approval. This Agreement and each Ancillary Agreement has been duly and validly executed and delivered by the Company and (assuming the due authorization, execution and delivery by the other Parties hereto) this Agreement and each Ancillary Agreement constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, subject to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).
4.3    Conflicts; Consents of Third Parties.  (a)  Except as set forth on Section 4.3(a) of the Company Disclosure Letter, and subject to receipt of the Parent Stockholder Approval, the execution and delivery by the Company of this Agreement and each Ancillary Agreement, the consummation of the transactions contemplated hereby and thereby and compliance by the Company with any of the provisions hereof or thereof do not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination or 

34

cancellation under any provision of (i) the articles of association, certificate of incorporation and by-laws or any comparable organizational documents of the Company or an Entity, (ii) any Material Contract to which the Company or an Entity is a party or by which any of the properties or assets of the Company or an Entity are bound, (iii) any material Permit to which the Company or an Entity is a party or by which any of the properties or assets of the Company or an Entity are bound, (iv) any Order of any Governmental Authority applicable to the Company or an Entity or any of the properties or assets of the Company or an Entity, or (v) any applicable Law, other than, (A) in the case of clauses (ii), (iv) and (v), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expect to be material to the Company and its Subsidiaries, taken as a whole and (B) in the case of clauses (iii), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect.
(b)    No consent, waiver, approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any Person or Governmental Authority is required on the part of the Company or an Entity in connection with the execution and delivery of this Agreement or any Ancillary Agreement, the compliance by the Company with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby or the taking by the Company or an Entity of any other action contemplated hereby or thereby, except for (i) the Regulatory Approval, (ii) the Antitrust Approval, (iii) the filing with the SEC of the Proxy Statement relating to the Parent Stockholders Meeting, and (iv) such other consents, waivers, approvals, Orders, Permits, authorizations, declarations, filings and notifications the failure of which to obtain or make would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect.
4.4    Organization of the Entities.  Each Entity is duly organized, validly existing and in good standing (where such concept exists) and is duly qualified or authorized to do business under the Laws of its jurisdiction of organization and has the requisite power and authority to own, lease and operate its assets and to carry on its business as now conducted, except where the failure to be so qualified or authorized would not reasonably be expect to be material to the Company and its Subsidiaries, taken as a whole. Complete, accurate and up-to-date copies of the articles of association or equivalent documents of each Entity have been Made Available, are in full force and effect and have been duly filed or registered with the relevant commercial registry.
4.5    Capitalization of the Entities.  (a)  As at the Effective Date, the issued capital stock of the Company consists of 25,000 Ordinary Shares and no shares of preferred stock, and as of immediately prior to the Initial First Closing, the authorized unissued capital stock of the Company will consist of 116,666,667 Ordinary Shares and 425,000,000 Preferred Shares. The Ordinary Shares and the shares of the Company Subsidiaries are duly authorized and are validly issued, fully paid and non-assessable. Except as set forth in Section 4.5(a) of the Company Disclosure Letter, all issued and outstanding Ordinary Shares are held legally and beneficially by NII 

35

Telecom free and clear of all Liens. The number and type of issued and outstanding capital stock of each Company Subsidiary and the legal and beneficial owners thereof, as of immediately prior to the Initial First Closing, are listed in Section 4.5(a) of the Company Disclosure Letter.
(b)    As of immediately prior to the Initial First Closing, there is no existing option, warrant, call, right or Contract of any character to which an Entity is a party requiring, and there are no securities of any Entity or other rights outstanding which upon conversion, exchange or exercise would require, the issuance or transfer of any shares or other securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase shares of any Entity.
(c)    Except as set forth in Section 4.5(c) of the Company Disclosure Letter, and other than the transactions contemplated by this Agreement or the Ancillary Agreements, there is no agreement or arrangement in place with respect to the exercise of any voting rights in respect of the shares of any Entity or otherwise providing for the encumbering, purchase, sale, transfer, assignment or other disposition of the shares of any Entity.
4.6    Valid Issuance of Preferred Shares.  The Preferred Shares, when issued and subscribed to in accordance with the terms and conditions set forth in this Agreement, will be duly authorized, validly issued and fully paid and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed upon an Investor.
4.7    Other Subsidiaries.  The Company does not own any equity interest in any other Person except for the Company Subsidiaries identified in Section 4.5(a) of the Company Disclosure Letter.
4.8    Title to Shares.  All of the issued and outstanding capital stock of each Company Subsidiary listed in Section 4.5(a) of the Company Disclosure Letter is owned by the persons set out therein free and clear of all Liens. No former shareholders or partners of any of the Entities have any rights or credits over or against any Entity or the shares of any Entity.
4.9    Financial Statements.  (a)  The Company has delivered to Investor true, correct and complete copies of (i) the unaudited balance sheets of NII International as at December 31, 2014 and December 31, 2015 and the related unaudited statements of income and of cash flows of NII International for the years then ended, together with the notes thereto, as well as the preliminary draft unaudited balance sheet of NII International as at December 31, 2016 and the related draft unaudited statement of income for the year then ended (the “Company Financial Statements”), (ii) the audited balance sheets of Brazil Parent as at December 31, 2014 and December 31, 2015 and the related statements of income and of cash flows of Brazil Parent for the years then ended, together with the notes thereto, as well as the preliminary draft unaudited 

36

balance sheet of Brazil Parent as at December 31, 2016 and the related draft unaudited statement of income for the year then ended (the “Brazil Parent Financial Statements”), (iii) the audited balance sheets of Opco as at December 31, 2014 and December 31, 2015 and the related statements of income and of cash flows of Opco for the years then ended, together with the notes thereto, as well as the preliminary draft unaudited balance sheet of Opco as at December 31, 2016 and the related draft unaudited statement of income for the year then ended, together with the preliminary draft notes thereto (the “Opco Financial Statements”) and, (iv) the audited consolidated balance sheets of Parent and its Subsidiaries as at December 31, 2014, December 31, 2015 and December 31, 2016 and the related consolidated statements of income and of cash flows of Parent and its Subsidiaries for the years then ended, together with the notes thereto (the “Parent Financial Statements”, together with the Company Financial Statements and the Brazil Parent Financial Statements, and the Opco Financial Statements, the “Financial Statements”).  Each of the Company Financial Statements has been prepared in accordance with Luxembourg GAAP consistently applied and presents fairly in all material respects the financial position, results of operations and cash flows of the Company as at the dates and for the periods indicated therein. Each of the Brazil Parent Financial Statements and the Opco Financial Statements has been prepared in accordance with Brazilian GAAP consistently applied and presents fairly in all material respects the financial position, results of operations and cash flows of Brazil Parent and Opco, respectively, as at the dates and for the periods indicated therein. The Parent Financial Statements have been prepared in accordance with US GAAP consistently applied and presents fairly and in all material respects the financial position, results of operations and cash flows of Parent and its Subsidiaries as at the dates and for the periods indicated therein. Notwithstanding the foregoing, any interpretations of the statements in this paragraph shall take into account that all preliminary draft financial statements or notes have not been fully reviewed and the fact that they were not prepared to a statutory or audit standard. The Schedule of Intercompany Receivables/Payables is true, accurate, up to date and complete in all material respects and is not materially misleading.
(b)    The Management Accounts were prepared with due care and in good faith using policies and principles consistently applied throughout the period to which they relate, in accordance with Parent’s accounting policies, principles, categorizations and monthly reporting procedures as consistently applied and on a basis consistent with that employed in preparing the Parent Financial Statements, and do not materially misstate: (i) the assets and liabilities of the Brazil Parent and its Subsidiaries as at the date to which they were prepared; or (ii) the consolidated profit or loss of the Brazil Parent and its Subsidiaries for the periods to which they relate. Notwithstanding the foregoing, any interpretations of the statements in this paragraph, shall take into account the purpose for which the Management Accounts were prepared and the fact that they were not prepared to a statutory or audit standard.
(c)    No Entity has entered into any off-balance sheet arrangements or has incurred any material liabilities which it is not required to disclose in its accounts.

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(d)    The books and records of NII International and the other Entities have been prepared and are being maintained in all material respects in accordance with applicable Law and true, correct and complete copies have been Made Available to Investor. 
4.10    Business since December 31, 2016.  Except as otherwise set forth in Section 4.10 of the Company Disclosure Letter or as otherwise contemplated in Sections 6.1, 6.2 and 6.5 of this Agreement, since December 31, 2016: 
(a)    the business of the Entities has been carried on in the Ordinary Course of Business;
(b)    there has been no Company Material Adverse Effect;
(c)    no Entity has, other than in the Ordinary Course of Business, acquired or disposed of or agreed to acquire or dispose of any business, shares in any corporate, or any asset which was material to the Entities as a whole;
(d)     the Company and its Subsidiaries have made capital expenditures in accordance with its capital expenditure budget in all material respects;
(e)    no Entity has, other than in the Ordinary Course of Business, borrowed or raised any money;
(f)    no dividend or other distribution of capital or income has been declared, made or paid by any Entity;
(g)    no Entity has created, allotted, issued, acquired, repaid or redeemed loan or share capital or made an agreement to do any of those things; and
(h)    no Entity has changed in any material respect the manner or timing of the payment of its creditors or the collection of its receivables and other debts.
4.11    Taxes.  Except as provided in Section 4.11 of the Company Disclosure Letter or otherwise provisioned in the Financial Statements of NII International, (a) neither the Company nor any other Entity is currently subject to any collection or pending legal action, investigation, procedure or claim for Taxes that could result in a material liability to the Company or such other respective Entity, (b) to the Knowledge of NII Telecom, neither the Company nor any other Entity has been formally notified in writing of (and, to the Knowledge of NII Telecom, no circumstances exist which would result in a formal written notification being delivered to any Entity of) any Tax delinquency notice, investigation, proceedings, claim of levy, collection or court or administrative pending matter with regard to Taxes against the Company or such Entity, (c) neither the Company nor any other Entity has adhered to any program for payment of Tax debts in installments, (d) no income Tax Return of the Company or of any other Entity is under current examination by any Taxing Authority, (e) each Entity 

38

has timely filed all material Tax Returns required to be filed by it or requests for extensions to file such Tax Returns have been timely filed, granted and have not expired, and all material Taxes required to be paid by it have either been paid by it or are reflected as a contingency for Taxes on the most recent financial statements of such Entity, (f) all such Tax Returns are correct and complete in all material respects and (g) the Company and each other Entity has prepared, kept and preserved sufficient records to enable it to make and complete returns for Tax purposes and otherwise as required by Law. All Taxes required to be paid or withheld by an Entity have been paid or withheld and, in the case of withholdings have been (or will be) duly and timely paid to the proper Governmental Authority. No deficiencies for any Taxes have been proposed, asserted or assessed against any Entity that are still pending and no requests for waivers of the time to assess any such Taxes have been made that are still pending. No Entity is (or has been) resident for any Tax purpose in any jurisdiction other than its jurisdiction of incorporation, and no Entity has (nor has it had) a branch, agency or permanent establishment outside of its jurisdiction of incorporation, not is any Entity (nor has it been) liable to any Tax in any jurisdiction other than its jurisdiction of incorporation. All transactions or arrangements made by the Entities have been made fully on arm’s length terms. No Entity has entered into any arrangements or transaction (or series of arrangements or transactions) the main purpose, or one of the main purposes, of which was the avoidance of Tax in violation of applicable Law. Section 4.11 together with Section 4.9 represents the sole and exclusive representations and warranties regarding Taxes. To the Knowledge of NII Telecom, all the documents set forth in Section 4.11(b) of the Company Disclosure Letter (the “Luxco Reorganization Background Tax Information”) are (i) true, accurate, up to date and complete in all material respects and (ii) are not materially misleading.
4.12    Real Property.  The Entities have (a) valid leasehold interests in all leased property and assets (whether real, personal, tangible or intangible) and are not in material default under the leases of any such property and assets, other than defaults that are curable by payments of non-material amounts or (b) good title to all Owned Property, free and clear of Liens except for (i) Liens set forth in Section 4.12 of the Company Disclosure Letter and (ii) Permitted Liens. All Owned Property is reflected on the Financial Statements, except for those properties and assets sold since December 31, 2016 in the Ordinary Course of Business consistent with past practices.
4.13    Intellectual Property.  
(a)    Section 4.13 of the Company Disclosure Letter describes all Intellectual Property owned by the Company for which a patent or registration with the INPI or any other Intellectual Property registry in any jurisdiction exists or has been applied for by or on behalf of the Company and all material licenses of Intellectual Property which the Company or any of the other Entities has been granted by any Person or granted to any Person ("Licenses"). The Intellectual Property owned by the Company, together with the right to use the Intellectual Property licensed to the Company, constitutes all Intellectual Property used in the Ordinary Course of Business 

39

as presently conducted, except to the extent the failure to be the owner or the valid licensee would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect. The Intellectual Property owned by the Entities is not the subject of any material Lien.
(b)    Except as provided in Section 4.13(b) of the Company Disclosure Letter, the material Intellectual Property used by the Company or any of the other Entities is not the subject of any challenge or claim received by the Company in writing. 
(c)    The Company has not received in the 12 month period prior to the Effective Date any written notice of any default or breach under any Licenses.   
(d)    To the Knowledge of NII Telecom, (i) the activities of the Entities do not infringe the Intellectual Property of any Person; and (ii) no Person is infringing the Intellectual Property used by any of the Entities, except to the extent that in each case, if there is any such infringement it would not reasonably be expected to result, individually or in the aggregate in a Company Material Adverse Effect.  
(e)    The IT Systems are either owned by or lawfully used by the Entities. 
(f)    In the 12 month period prior to the Effective Date save for outages arising in the ordinary course of scheduled maintenance there have been no material failures, breakdowns or interruptions to the IT Systems that resulted in a material interruption of the business of the Company and its Subsidiaries.  
4.14    Material Contracts.  
(a)    Section 4.14(a) of the Company Disclosure Letter sets forth a list of the following Contracts and their location in the Data Room (other than any statements of work, purchase, project, change or similar orders issued pursuant to any such Contracts or any intercompany Contracts or arrangements) to which the Entities are party or under which the Entities have any remaining rights or obligations as of the date of this Agreement (collectively, the "Material Contracts"):
(i)    Contracts for the sale of any assets of an Entity other than in the Ordinary Course of Business for consideration in excess of $25,000,000;
(ii)    the Brazil Credit Facilities;
(iii)    the ATC Agreements;
(iv)    the Telefônica Roaming Agreement (including the 5th Amendment to the Telefônica Roaming Agreement and the Telefônica RAN Sharing Agreement);

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(v)    the Telefônica RAN Sharing Agreement (including the 5th Amendment to the Telefônica Roaming Agreement and the Telefônica RAN Sharing Agreement);
(vi)    Contracts restricting an Entity from engaging in any line of business or competing with any Person or in any geographical area;   
(vii)    the Trademark Sublicense Agreement;
(viii)    any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC) (other than any Employee Plan)  and 
(ix)    any other Contracts (other than requirements Contracts) which, alone or together with any other related Contracts or Contracts with the same counterparty (or its Affiliates), involve the expenditure of more than $5,000,000 in the aggregate by any party in any 12 month period.
(b)    The Company has Made Available to Investor true and correct copies of each of the Material Contracts and all amendments thereto and each of the Material Contracts, as amended, is in full force and effect and is a legal, valid and binding obligation of the Entity party thereto, enforceable against such Entity in accordance with its terms. Except as set forth in Section 4.14(b) of the Company Disclosure Letter, the Entities have not received or served any written notice of any termination, material default or material breach under any Material Contract and to the Knowledge of NII Telecom, no Entity or any other Person is in breach of any material provision of any Material Contract and to the Knowledge of NII Telecom (without due inquiry) there are no facts or circumstances which are reasonably likely to give rise to termination or a material breach of any Material Contract.   
(c)    No Entity derives any benefit under, is entitled to any rights, or receives any goods or services under, any Contract to which it is not a party, save as set forth in Section 4.14 of the Company Disclosure Letter. 
4.15    Labor.  
(a)    Section 4.15(a) of the Company Disclosure Letter lists each labor, trade union and/or collective bargaining agreement and/or agreement with any employee representative body as of the date hereof to which an Entity is a party and there are no outstanding requests for the establishment or recognition of any trade union and/or employee representative bodies.
(b)    There has been no organized labor strike, slowdown, picketing or work stoppage affecting any Entity, except in each case as would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse 

41

Effect and, to the Knowledge of NII Telecom, there is no such action pending or threatened and there are no circumstances likely to give rise to such action.
4.16    Employees.  Section 4.16 of the Company Disclosure Letter lists the names and titles of all directors and officers of the Entities and, as of a date that is within 10 Business Days prior to the Effective Date, sets out the number of employees of each Entity.
4.17    Employee Benefit Plans.  To the Knowledge of NII Telecom, all the employees and Persons who provide services to and/or work for the Entities are employed or engaged by and are paid by each respective Entity, as applicable, and their remuneration is appropriately reflected in the Financial Statements from time to time. Since December 31, 2016, the Entities have not made any material change in their employment policies or practices, including those related to salary, compensation, severance payments or retirement plans for employees, directors and/or officers, except for those cases in which such a change was made in order to comply with applicable Law and/or applicable collective bargaining agreements. Except as set forth on Section 4.17 of the Company Disclosure Letter, to the Knowledge of NII Telecom, since December 31, 2016, the Entities have not entered into any Employee Plan. Section 4.17 of the Company Disclosure Letter lists all material Employee Plans irrespective of when entered into. Except as set forth in Section 4.17 of the Company Disclosure Letter or as required by applicable Law, no assurance or promise (oral or written) has been made to any employee, director or officer as to the particular level or amount of benefits payable to or in respect of them on retirement, severance or death under an Employee Plan except where those benefits are fully insured. All contributions that are required to have been made to any Employee Plan have been fully and timely paid when due.
4.18    Litigation.  To the Knowledge of NII Telecom, except as set forth on Section 4.18 of the Company Disclosure Letter, as of the date hereof, there are no Legal Proceedings ongoing, pending or threatened in writing against or otherwise involving any Entity where the amount claimed exceeds $1,000,000 and no Entity is subject to any judgment, order, decision or award in connection with any Legal Proceedings that has not been satisfied in full where the amount payable exceeds $1,000,000.
4.19    Compliance with Laws; Permits.
(a)    Each Entity is, and has been for the five years immediately preceding the Effective Date, in compliance with all Laws applicable to its business or operations, except where the failure to be in compliance would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole. No Entity has, in the five years immediately preceding the Effective Date, received any written notice of or been charged with the violation of any Laws that would be material to the Company and its Subsidiaries, taken as a whole.

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(b)    Each Entity currently has all Permits that are required for the operation of its business as presently conducted, except where the failure to have such Permits would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect. No Entity is, or in the five years immediately preceding the Effective Date has been, in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of any Permit to which it is a party, except where such default or violation would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect. To the Knowledge of NII Telecom, there are no facts or circumstances which are, in the reasonable opinion of NII Telecom, likely to lead to the revocation, suspension or limitation of any Permit held by an Entity or to prevent an Entity from obtaining or renewing any Permit required for its business in future, except where such revocation, suspension or limitation would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect.
(c)    Section 4.19(c) of the Company Disclosure Letter sets forth a list of all Telecommunication Licenses held by the Entities. Except as set forth in Section 4.19 of the Company Disclosure Letter, the Company is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term, condition or provision of any Telecommunication License granted to any Entity, except where such default or violation would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect. To the Knowledge of NII Telecom, there are no facts or circumstances which are likely to lead to the revocation, suspension or limitation of any Telecommunication Licenses held by an Entity or to prevent an Entity from obtaining or renewing any Telecommunication Licenses required for its business in future.
(d)    Notwithstanding any other provision in this Agreement, Company makes no representation or warranty in this Agreement regarding the permitting, licensing, condition or compliance with Law of the Network Assets. Investor acknowledges that, as a result of the sale of Shares pursuant to this Agreement, all Network Assets are being conveyed to Investor on a "where is" and, as to condition, "as is" basis. 
(e)    None of the Company or its Subsidiaries, or to the Knowledge of NII Telecom, any director, officer, employee, agent of the Company or any of its Subsidiaries, in each case, acting on behalf of the Company or any of its Subsidiaries, has, directly or indirectly, (i) used any funds of the Company or any of its Subsidiaries for unlawful contributions, unlawful gifts, unlawful entertainment or other unlawful expenses relating to political activity; (ii) made any unlawful payment to foreign or domestic governmental officials or employees or to foreign or domestic political parties or campaigns from funds of the Company or any of its Subsidiaries; (iii) violated or is in violation of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or is in violation of any similar Law or other applicable Bribery Legislation; (iv) established or 

43

maintained any unlawful fund of monies or other assets of the Company or any of its Subsidiaries; (v) made, promised or authorized any fraudulent entry on the books or records of the Company or any of its Subsidiaries; or (vi) made any unlawful bribe, unlawful kickback or other unlawful payment to any Person, private or public, regardless of form, whether in money, property or services, to obtain favorable treatment in securing business to obtain special concessions for the Company or any of its Subsidiaries; in each case other than as would be material to the Company and its Subsidiaries, taken as a whole.
4.20    Environmental Laws.  The Company and the other Entities have obtained from the proper federal, state or local authorities in Brazil all environmental Permits and have observed in all respects the limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, terms and schedules set forth in the Law concerning the environment, hazardous materials, public and occupational health and safety, emission, pollution or protection of the environment, applicable to such actions and commitments, the occupation and maintenance of real estate, except where such default or violation would not reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect. Except as set forth in Section 4.20 of the Company Disclosure Letter, all Permits obtained under applicable environmental Law are valid and in full effect in all material respects with regard to the conduct of the business of the Company and the other Entities as currently conducted and, in applicable cases, requests for renewal have been made in due course for all of such Permits.
4.21    Broker's or Finder's Fee.  Neither the Company nor any of the Entities has any liability or obligation to pay any fees or commissions to any broker, finder or other agent with respect to the transactions contemplated by this Agreement for which Investor, any of its Affiliates or any of the Entities could become liable or obligated.
4.22    Insurance.  Section 4.22 of the Company Disclosure Letter sets forth all insurance policies owned or held by any Entity on the date of this Agreement and that cover the corresponding Entity, its assets, properties or personnel with respect to risks arising in connection with the current operation or conduct of its business (collectively, the "Insurance Policies"). All premiums in respect of the Insurance Policies have been paid in full and to the Knowledge of NII Telecom there are no facts or circumstances that could give rise to any of the Insurance Policies being declared void or prevent an Entity from successfully making a claim under any of the Insurance Policies. 
4.23    Voting.  The Parent Stockholder Approval is the only vote of the holders of any class or series of the capital stock of Parent or any of Parent's Affiliates (other than wholly owned Subsidiaries) necessary (under the certificate of incorporation and bylaws of Parent, other applicable Laws or otherwise) to approve and authorize the transactions contemplated by this Agreement and the Ancillary Agreements.
4.24    Related Party Transactions.  Except as set forth in Section 4.24 of the Company Disclosure Letter, no Entity has any liability or obligation (whether, actual, 

44

contingent or otherwise) to, is not owed any amount and does not have any rights in respect of, and is not party to any agreement or arrangement with, NII Telecom or any of its Affiliates (excluding the Entities) or former Affiliates.
4.25    Sufficiency of Assets.  The Entities own all of the assets and have (and will own and have) all of the rights necessary in order to enable them to carry on their business as contemplated as of the Effective Date and as at (and including) the Second Closing. 
4.26    Liens.  No shares in the capital of, or assets of, any Entity are subject to any Lien (other than Permitted Liens in relation to the assets of any Entity).
4.27    Loans.  Section 4.27 of the Company Disclosure Letter sets forth as of the date hereof details of (i) all debt financing agreements with Indebtedness outstanding as of the date hereof to which any Entity is a party, and (ii) current amounts outstanding under such agreements.
As of the date hereof, each of NII Telecom and Parent hereby represents and warrants to Investor that:
4.28    Organization.  Each of NII Telecom and Parent is an entity duly organized, validly existing and in good standing (where such concept exists) under the laws of the jurisdiction of its incorporation and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted. 
4.29    Authorization of Agreement.  Each of NII Telecom and Parent has the requisite corporate power and authority to execute and deliver this Agreement and each Ancillary Agreement and, subject to the receipt of the Parent Stockholder Approval, to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement and each Ancillary Agreement and the consummation of the transactions contemplated hereby and thereby has been duly authorized by all requisite corporate action on the part of NII Telecom and Parent, subject to receipt of the Parent Stockholder Approval. The board of directors of Parent has adopted resolutions authorizing and recommending that the stockholders of Parent vote in favor of authorizing the transactions contemplated by this Agreement and the Ancillary Agreements (the “Parent Board Recommendation”). This Agreement and each Ancillary Agreement has been duly and validly executed and delivered by NII Telecom and Parent and (assuming the due authorization, execution and delivery by the other Parties hereto) this Agreement and each Ancillary Agreement constitute legal, valid and binding obligations of NII Telecom and Parent enforceable against each such entity in accordance with its respective terms. 
4.30    Conflicts; Consents of Third Parties. 
(a)    Except as set forth on Section 4.30(a) of the Company Disclosure Letter, and subject to receipt of the Parent Stockholder Approval, the execution and 

45

delivery by each of NII Telecom and Parent of this Agreement and each Ancillary Agreement to which it is a party, the consummation of the transactions contemplated hereby and thereby, or compliance by each of NII Telecom and Parent with any of the provisions hereof or thereof do not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination or cancellation under any provision of (i) the certificate of incorporation and by-laws or comparable organizational documents of NII Telecom and Parent, (ii) any Contract or Permit to which NII Telecom and Parent is a party or by which any of the properties or assets of NII Telecom and Parent are bound, (iii) any Order of any Governmental Authority applicable to NII Telecom and Parent or any of the properties or assets of Parent, or (iv) any applicable Law, other than, in the case of clauses (ii), (iii) and (iv), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expected to result, individually or in the aggregate, in a NII Material Adverse Effect.
(b)    Except as set forth on Section 4.30(b) of the Company Disclosure Letter, no consent, waiver, approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any Person or Governmental Authority is required on the part of NII Telecom or Parent in connection with the execution and delivery of this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which NII Telecom or Parent is a party, the compliance by NII Telecom or Parent with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, the taking by NII Telecom or Parent of any other action contemplated hereby or thereby, except for (i) the Regulatory Approval, (ii) the Antitrust Approval, (iii) the filing with the SEC of the Proxy Statement relating to the Parent Stockholders Meeting, and (iv) such other consents, waivers, approvals, Orders, Permits, authorizations, declarations, filings and notifications, the failure of which to obtain or make would not reasonably be expected to result, individually or in the aggregate, in a NII Material Adverse Effect.
4.31    Litigation.  As of the Effective Date, there are no Legal Proceedings pending or, to the knowledge of NII Telecom or Parent, threatened against NII Telecom or Parent, or to which NII Telecom or Parent is otherwise a party before any Governmental Authority, which, if adversely determined, would reasonably be expected to result, individually or in the aggregate, in a NII Material Adverse Effect.  Neither NII Telecom nor Parent is not subject to any Order of any Governmental Authority except to the extent the same would not reasonably be expected to result, individually or in the aggregate, in a NII Material Adverse Effect.
4.32    Proxy Statement.  None of the information supplied or to be supplied by Parent for inclusion or incorporation by reference in the Proxy Statement will, at the date it is first mailed to the stockholders of Parent and at the time of the Parent Stockholders Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading, except that 

46

no representation or warranty is made by Parent, NII Telecom or the Company with respect to statements made therein based on information supplied by Investor or its Affiliates for inclusion or incorporation by reference therein.
4.33    Broker's or Finder's Fee.  Neither NII Telecom nor Parent has any liability or obligation to pay any fees or commissions to any broker, finder or other agent with respect to the transactions contemplated by this Agreement for which the Company or any Entity or Investor or any of its Affiliates could become liable or obligated.
4.34    No Other Representations or Warranties; Schedules.  Except for the representations and warranties contained in this Article IV (as modified by the Company Disclosure Letter), neither Parent, NII Telecom nor the Company makes any other express or implied representation or warranty with respect to the Entities, the Shares, or the transactions contemplated by this Agreement, and the Company disclaims any other representations or warranties, whether made by the Company, any Affiliate of the Company, or any of the Company or their Affiliates’ respective officers, directors, employees, agents or representatives. Except for the representations and warranties contained in this Article IV (as modified by the Company Disclosure Letter), Parent, NII Telecom and the Company (a) expressly disclaim and negate any representation or warranty, expressed or implied, at law, by statute, or otherwise, relating to the condition of the Shares and (b) disclaims all liability and responsibility for any representation, warranty, projection, forecast, statement, or information made, communicated, or furnished (orally or in writing) to Investor or its Affiliates or representatives (including any opinion, information, projection, or advice that may have been or may be provided to Investor by any director, officer, employee, agent, consultant, or representative of Parent, NII Telecom, the Company or any of their Affiliates). None of Parent, NII Telecom or the Company makes any representations or warranties to Investor regarding the probable success or profitability of the Entities. The disclosure of any matter or item in any schedule hereto will not be deemed to constitute an acknowledgment that any such matter is required to be disclosed or is material or that such matter would reasonably be expected to result, individually or in the aggregate, in a Company Material Adverse Effect.
4.35    Parent Cash Schedule.  The Parent Cash Schedule is true and correct in all material respects and is not misleading as at the Parent Cash Schedule Date. 
		
	V.
	REPRESENTATIONS AND WARRANTIES OF INVESTOR

As of the date hereof, Investor hereby represents and warrants to the Company and NII Telecom that:
5.1    Organization.  Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted. Investor was newly formed for the purposes of consummating the transactions contemplated by this Agreement.

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5.2    Authorization of Agreement.  Investor has the requisite corporate power and authority to execute and deliver this Agreement and each Ancillary Agreement and subject to paragraphs (i) and (ii) of the definition of the Escrow Payment Condition to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement and each Ancillary Agreement and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Investor subject to paragraphs (i) and (ii) of the definition of the Escrow Payment Condition. This Agreement and each Ancillary Agreement has been duly and validly executed and delivered by Investor and (assuming the due authorization, execution and delivery by the other Parties hereto) this Agreement and each Ancillary Agreement constitute legal, valid and binding obligations of Investor enforceable against each such entity in accordance with its respective terms.
5.3    Conflicts; Consents of Third Parties.  (a)  Subject to paragraphs (i) and (ii) of the definition of the Escrow Payment Condition, the execution and delivery by Investor of this Agreement and each Ancillary Agreement to which it is a party, the consummation of the transactions contemplated hereby and thereby, or compliance by Investor with any of the provisions hereof or thereof do not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination or cancellation under any provision of (i) the certificate of incorporation and by-laws or comparable organizational documents of Investor, (ii) any Contract or Permit to which Investor is a party or by which any of the properties or assets of Investor are bound, (iii) any Order of any Governmental Authority applicable to Investor or any of the properties or assets of Investor, or (iv) any applicable Law, other than, in the case of clauses (ii), (iii) and (iv), such conflicts, violations, defaults, terminations or cancellations that would not reasonably be expected to result, individually or in the aggregate, in an Investor Material Adverse Effect.
(b)    No consent, waiver, approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any Person or Governmental Authority is required on the part of Investor in connection with the execution and delivery of this Agreement and each other agreement, document or instrument contemplated hereby or thereby to which Investor is a party, the compliance by Investor with any of the provisions hereof or thereof, the consummation of the transactions contemplated hereby or thereby, the taking by Investor of any other action contemplated hereby or thereby, except for (i) the Regulatory Approval, (ii) the Antitrust Approval, (iii) paragraphs (i) and (ii) of the definition of the Escrow Payment Condition and (iv) such other consents, waivers, approvals, Orders, Permits, authorizations, declarations, filings and notifications, the failure of which to obtain or make would not reasonably be expected to result, individually or in the aggregate, in an Investor Material Adverse Effect.
(c)    None of Investor, Investor Parent or AINMT AS hold, directly or indirectly, control (as defined in Anatel Resolution 101/99) or shares that exceed 30% of the total and voting capital of broadcasters, producers or programmers with headquarters in Brazil.

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5.4    Litigation.  There are no Legal Proceedings pending or, to the knowledge of Investor, threatened against Investor, or to which Investor is otherwise a party before any Governmental Authority, which, if adversely determined, would reasonably be expected to result, individually or in the aggregate, in an Investor Material Adverse Effect. Investor is not subject to any Order of any Governmental Authority except to the extent the same would not reasonably be expected to result, individually or in the aggregate, in an Investor Material Adverse Effect.
5.5    Broker’s or Finder’s Fee.  Investor has no liability or obligation to pay any fees or commissions to any broker, finder or other agent with respect to the transactions contemplated by this Agreement for which NII Telecom or any of its Affiliates could become liable or obligated.
5.6    Financial Capability.  Investor (a) will have, subject to paragraphs (i) and (ii) of the definition of the Escrow Payment Condition being satisfied, at the Initial First Closing, sufficient funds available to pay the Initial Investor Capital Contribution and (b) if Investor exercises the Investor Option pursuant to Section 2.6, (i) on the Exercise Date, will have delivered a true and correct copy of the Evidence of Financial Capacity required to be delivered pursuant to Section 2.6(b), and (ii) has and will have, at the Second Closing, if applicable, sufficient funds available to pay the Second Investor Capital Contribution. Investor’s obligations to complete the transactions contemplated hereby are not dependent upon or conditioned on receipt of financing.
5.7    Investigation.  Investor acknowledges and agrees that it (a) has made its own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning the Entities, the Shares, the business and the assets and liabilities of the Entities, the transactions contemplated by this Agreement and any other rights or obligations to be transferred, directly or indirectly, pursuant to this Agreement and (b) has been furnished with, or given adequate access to, such projections, forecasts, estimates, appraisals, statements, advice, data or information about the Company, the Entities, the Shares, the business and the assets and liabilities of the Entities, and any other rights or obligations to be transferred, directly or indirectly, pursuant to this Agreement, as Investor has requested. Investor further acknowledges and agrees that (i) the only representations and warranties made by the Company or any of its Affiliates are the representations and warranties expressly set forth in Article IV or any certificate delivered pursuant to this Agreement and Investor has not relied upon any other express or implied representations, warranties or other projections, forecasts, estimates, appraisals, statements, advice, data or information made, communicated or furnished by or on behalf of any Entity, the Company or any of their respective Affiliates, any representatives of any Entity, the Company or any of their respective Affiliates or any other Person, including any projections, forecasts, estimates, appraisals, statements, advice, data or information made, communicated or furnished by or through any Entity’s or the Company’s banking representatives, or management presentations, data room or other due diligence information, and that Investor will not have any right or remedy arising out of any such representation, 

49

warranty or other projections, forecasts, estimates, appraisals, statements, advice, data or information and (ii) any claims that Investor may have for breach of any representation or warranty will be based solely on the representations and warranties expressly set forth in Article IV or any certificate delivered pursuant to this Agreement. Investor acknowledges that, except for the representations and warranties expressly set forth in Article IV or any certificate delivered pursuant to this Agreement, the assets and businesses of the Entities, as a result of the purchase and sale of the Shares, are being transferred on a “where is” and, as to condition, “as is” basis; provided, however, that nothing in this Section 5.7 is intended to limit or modify the representations and warranties contained in Article IV or any certificate delivered pursuant to this Agreement or any claim for fraud.
5.8    Proxy Statement.  None of the information supplied or to be supplied by Investor for inclusion in the Proxy Statement will, at the date it is first mailed to stockholders of Parent and at the time of the Parent Stockholders Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading, except that no representation or warranty is made by Investor with respect to statements made therein based on information supplied by Parent or its Affiliates for inclusion or incorporation by reference therein.
5.9    No Other Representations or Warranties.  Except for the specific representations and warranties expressly contained in this Article V, Investor makes no other express or implied representation or warranty with respect to itself. Except for the representations and warranties contained in this Article V, Investor disclaims all liability and responsibility for any representation, warranty, projection, forecast, statement, or information made, communicated, or furnished (orally or in writing) to the Company or NII Telecom or its Affiliates or representatives (including any opinion, information, projection, or advice that may have been or may be provided to the Company or NII Telecom by any director, officer, employee, agent, consultant, or representative of Investor). 
		
	VI.
	COVENANTS

6.1    Brazil Tax Election.  As promptly as reasonably practicable after the Effective Date, NII Telecom will use reasonable best efforts to cause the Company to make (and cause its Subsidiaries to make) “check-the-box” elections under Section 7701 of the Code, for the Company and for each of the Company's non-U.S. Subsidiaries ( “Brazil Tax Election”). The completion of the Brazil Tax Election (and delivery to Investor by NII Telecom of evidence of such) to the reasonable satisfaction of Investor forms part of the Escrow Initial Tranche Condition (being a condition to the Initial First Closing and Initial Second Closing).
6.2    Luxco Reorganization.  As promptly as reasonably practicable after the Effective Date, Parent will cause the Luxco Reorganization to be completed, and 

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Parent will, and will cause its applicable Subsidiaries to, execute all such instruments, assignments, documents and other agreements necessary to effect the Luxco Reorganization.
6.3    Access to Information.  Before the earlier of (x) the Second Closing, or (y) if Investor fails to deliver the Notice of Exercise by the Option Expiration Date, the Option Expiration Date, or (z) the date this Agreement is terminated pursuant to Section 3.6, Investor will be entitled, through its officers, employees and representatives (including its legal advisors and accountants), to make such investigation of the properties, businesses and operations of the Entities and such examination of the books and records of the Entities as it reasonably requests and to make extracts and copies of such books and records. Any such investigation or examination, and all communications with any Entity and their respective representatives, will be coordinated through representatives designated by the Company. Any such investigation and examination will be conducted upon reasonable notice and under reasonable circumstances during regular business hours and will be subject to restrictions under applicable Law. The Company and NII Telecom will cause the officers, employees, consultants, agents, accountants, attorneys and other representatives of the Entities to cooperate with the reasonable requests of Investor and its representatives in connection with such investigation and examination, and Investor and its representatives will cooperate with the Entities and their respective representatives and will use its reasonable efforts to minimize any disruption to the Entities’ business. Nothing in this Section 6.3 will require any Entity to permit any investigation, or to disclose any information (a) if permitting such investigation or disclosing such information would, in the reasonable judgment of such Entity, violate (i) any applicable Law (including Antitrust Statutes, other rules or regulations promulgated by the Brazilian Antitrust Authority or any privacy Laws) (ii) any legally binding confidentiality obligation of such Entity, or (b) protected by attorney-client privilege, or (c) regarding (i) any bids, the identity of any bidder, confidentiality or non-disclosure agreements, letters of intent, expressions of interest or other proposals received in connection with transactions comparable to those contemplated by this Agreement or (ii) any information or analysis relating to any such communications. Notwithstanding the foregoing, the relevant Entity (x) may only withhold that portion of such information that is reasonably necessary to be withheld in order to maintain such confidentiality or preserve such privilege or work product protection and (y) shall use commercially reasonable efforts to provide extracts or summaries of any protected information or otherwise provide such protected information in a manner that would not jeopardize the applicable protection. Before the Second Closing Date, without the prior written consent of the Company, which may be withheld for any reason, Investor will not contact any suppliers to, or customers of, any Entity. Nothing contained herein is intended to modify or terminate the Non-Disclosure Agreement, which will remain in full force and effect and applicable to Protected Information (as defined in the Non-Disclosure Agreement) provided to Investor and its representatives hereunder or in connection herewith.

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6.4    Conduct of the Business.  (a)  From the date of this Agreement until the earlier of (x) the Second Closing, or (y) if Investor fails to deliver the Notice of Exercise by the Option Expiration Date, the Option Expiration Date or (z) the date this Agreement is terminated pursuant to Section 3.6, except (i) as set forth on Section 6.4(a) of the Company Disclosure Letter, (ii) as required by applicable Law, any Governmental Authority or the Telecommunication Licenses, (iii) as otherwise contemplated by this Agreement, or (iv) with the prior written consent of Investor (which will not be reasonably withheld, conditioned or delayed), NII Telecom and the Company will cause each Entity to:
(i)    comply in all material respects with all applicable Laws;
(ii)    conduct its business in all material respects in the Ordinary Course of Business;
(iii)    use its commercially reasonable efforts to preserve its present business operations, organization, and goodwill of the Entities with Persons having business dealings with the Entities;
(iv)    use commercially reasonable efforts to maintain in place policies of insurance providing at least the same level of cover and on substantially the same terms as the Insurance Policies. 
(b)    From the date of this Agreement until earlier of (x) the Second Closing Date, or (y) if Investor fails to deliver the Notice of Exercise by the Option Expiration Date, the Option Expiration Date or (z) the date this Agreement is terminated pursuant to Section 3.6, except (1) as set forth on Section 6.4(b) of the Company Disclosure Letter, (2) as required by applicable Law, any Governmental Authority or the Telecommunication Licenses or as otherwise contemplated by this Agreement, or (3) with the prior written consent of Investor (which will not be unreasonably withheld, conditioned or delayed with respect to the matters referred to in Section 6.4(b) (v)-(vii), (xi)-(xiii), (xiv)-(xvii) and to the extent related to the foregoing clauses, Section 6.4(b)(xxi)), the Company and NII Telecom will not permit the Entities to and will cause the Entities not to:
(i)    declare, set aside, make or pay any dividend or other distribution in respect of shares or repurchase, redeem or otherwise acquire any outstanding shares or other securities of, or other ownership interests in, any Entity, whether in cash, stock, share capital, property or a combination of the foregoing;
(ii)    transfer, issue, sell or dispose of any shares or other securities of any Entity or grant options, warrants, calls or other rights to purchase or otherwise acquire shares or other securities of any Entity;
(iii)    effect any recapitalization, reclassification or like change in its capitalization;

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(iv)    amend its certificate of incorporation, by-laws or articles of association, as applicable;
(v)    (A) materially increase the annual level of compensation of any of its directors or executive officers, (B) grant any extraordinary bonus, benefit or other compensation to any of its directors or executive officers, or (C) other than in the Ordinary Course of Business materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus or other incentive compensation, insurance, pension or other employee benefit plan or arrangement made to, for or with any of its directors or executive officers or otherwise materially modify or amend or terminate any Employee Plan, except, in each case, as required by applicable Law from time to time in effect or by the terms of any Employee Plan;
(vi)    (A) issue, create, incur, assume, guarantee, endorse or otherwise become liable or responsible with respect to (whether directly, contingently or otherwise) any Indebtedness; (B) except in the Ordinary Course of Business, pay, repay, discharge, purchase, repurchase or satisfy any Indebtedness of the Company; (C) except in connection with the actions contemplated in Sections 6.5(b), 6.5(c) or 6.5(d), modify, cancel or compromise the terms of any Indebtedness or other liability; or (D) waive or release any material right of any Entity;
(vii)    subject any of its properties or assets (whether tangible or intangible) to a Lien, except for Permitted Liens on properties and assets other than shares issued by any Entity;
(viii)    (A) acquire any material properties, rights, spectrum or other assets, in each case, other than in the Ordinary Course of Business, or (B) sell, assign, license, transfer, lease or otherwise dispose of any of its material properties, rights, Telecommunication Licenses or assets (except sales of inventory to customers in the Ordinary Course of Business or sales of obsolete or worthless assets or inventory);
(ix)    enter into or agree to enter into any merger or consolidation with any corporation or other entity, and not engage in any new business line or invest in, make a loan, advance or capital contribution to, or otherwise acquire the assets or securities, of any other Person (other than intercompany transactions wholly between any of the Entities);
(x)    other than short-term financial investments made in the Ordinary Course of Business, acquire the securities of any other Person;
(xi)    change the accounting methods, practices or procedures applicable to the Entities, except as required by Brazilian GAAP, Luxembourg GAAP or applicable Law;

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(xii)    other than in the Ordinary Course of Business, (whether by reason of its size, nature of otherwise), enter into or modify any Contract with any Affiliates; 
(xiii)    modify or terminate any Material Contracts,
(xiv)    enter, modify or renew any Contract, which by reason of its size, nature of otherwise is not in the Ordinary Course of Business, with any Affiliate of the Company (other than solely with another Entity);
(xv)    enter into capital expenditure commitments in excess of 125% of the capital expenditure amounts budgeted for 2017;
(xvi)    enter into, modify or terminate any labor or collective bargaining agreement of any Entity (other than annual renewals, on terms and conditions substantially the same as those existing as of the date of this Agreement, in the Ordinary Course of Business);
(xvii)    settle or compromise any pending or threatened Legal Proceeding or any claim or claims for, or that would result in a loss of revenue of, an amount that could, individually or, other than in the Ordinary Course of Business, in the aggregate, reasonably be expected to be greater than $1,000,000 or begin any such claim or claims;
(xviii)    make, change or revoke any material Tax election not required by Law, file any material Tax Return (or any amendment thereof), or change any accounting period or method, settle or compromise any material Tax Matter or consent to any extension or waiver of the limitation period applicable to any material Tax Matter (other than pursuant to an extension of time to file a Tax Return obtained in the Ordinary Course of Business); 
(xix)    adopt a plan of complete or partial liquidation or dissolution of any of the Entities; 
(xx)    enter into or amend the terms of any related party transaction; or
(xxi)    agree in writing to do anything prohibited by this Section 6.4.
6.5    Consents; Brazil Credit Facilities.  (a)  Subject to the terms of this Agreement, Investor and NII Telecom will use (and NII Telecom will cause the Entities to use) their respective commercially reasonable efforts to obtain at the earliest practicable date all consents and approvals required to consummate the transactions contemplated by this Agreement, including the consents and approvals referred to in Section 6.5 of the Company Disclosure Letter (excluding the Regulatory Approval and 

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the Antitrust Approval, which are governed by the terms of Section 6.6 and Section 6.7, respectively).
(b)    NII Telecom will use (and NII Telecom will cause the Entities to use) its commercially reasonable efforts to enter into an agreement with the CDB Credit Facility lenders to (i) amend the CDB Credit Facility prior to the Second Closing, on terms and conditions satisfactory to each of Parent, NII Telecom, the Company and Investor, and (ii) replace the existing guarantee granted by Parent under the CDB Credit Facility with a guarantee granted by the Company; provided that such substitution will include the assumption by the Company, and the release of Parent and its Affiliates (other than the Entities) of all of its and their obligations under, such guarantee.
(c)    NII Telecom will use (and NII Telecom will cause the Entities to use) its commercially reasonable efforts to enter into an agreement with the other parties to the ATC Agreements to replace the existing guarantee granted by NII Telecom under the ATC Agreements with a guarantee granted by the Company prior to the Second Closing; provided that such substitution shall include the assumption by the Company, and the release of NII Telecom and its Affiliates (other than the Entities) of all of its and their obligations under, such guarantee.
(d)    NII Telecom will use (and NII Telecom will cause the Entities to use) its commercially reasonable efforts to enter into an agreement with (i) the Caixa Credit Facility lenders to amend the Caixa Credit Facility prior to the Second Closing, on terms and conditions satisfactory to each of Parent, NII Telecom, the Company and Investor, and (ii) the BdB Credit Facility lenders to amend the BdB Credit Facility prior to the Second Closing, on terms and conditions satisfactory to each of Parent, NII Telecom, the Company and Investor. In relation to this Section 6.5(d) and Section 6.5(b) above NII Telecom will: (i) cooperate with Investor in connection with entering into such agreements (including providing copies of all relevant documents to Investor), (ii) inform Investor of any oral communication with, and provide copies of written communications with, any lenders under the Brazil Credit Facilities, (iii) not independently participate in any meeting with any lenders under the Brazil Credit Facilities without giving Investor prior notice of the meeting and the opportunity to attend and participate, (iv) not incur any additional material liability or obligation for any Entity to the lenders under the Brazil Credit Facilities, in each case without the written consent of Investor (such consent not to be unreasonably withheld or delayed), and (v) following delivery of the Notice of Exercise by Investor provide (or, as appropriate, cause the Entities to provide), at Investor’s prior written request, such information and assistance as Investor may reasonably require in connection with such matters.
6.6    Regulatory Approval.  (a)  Following the date hereof, on the terms and subject to the conditions set forth in this Agreement, each of the Parties will use their respective best efforts (and NII Telecom will cause the Entities to) (i) make or cause to be made all filings or applications required of each of them, directly or through their respective Affiliates to obtain the Regulatory Approval (excluding the Antitrust 

55

Approval, which is subject to the terms of Section 6.7) as promptly as possible after the execution of this Agreement, and, in any event, within 10 Business Days from the Escrow Pay-In Date, and (ii) cooperate with each other in connection with any such filings or applications (including, to the extent permitted by applicable Law, providing copies of all such documents to the non-filing or non-applying Parties before filing or submitting an application and considering all reasonable additions, deletions or changes suggested in connection therewith) and in connection with resolving any investigation or other inquiry of any relevant Governmental Authority with respect to any such filing or application. Each Party will promptly inform the other Party of any oral communication with, and provide copies of written communications with, any Governmental Authority regarding any such filings or applications. No Party will participate in any meeting with any Governmental Authority in respect of any filings, applications, investigation (including any proposed investigation), litigation or other inquiry related to the transactions contemplated by this Agreement, unless it consults with the other Party in advance and, to the extent permitted by such Governmental Authority, gives such other Party the opportunity to attend and participate in such meeting.
(b)    Each of NII Telecom and the Company will use its reasonable best efforts to take such action as may be required to obtain the Regulatory Approval (excluding the Antitrust Approval which is subject to the terms of Section 6.7), and to avoid the entry of, or to effect the dissolution of, any decree, order, judgment, injunction, temporary restraining order or other order in any suit or proceeding that would otherwise have the effect of preventing or materially delaying the consummation of the transactions contemplated by this Agreement.
(c)    Without limiting the generality of the foregoing or any other provision of this Agreement, if requested by a Governmental Authority in order to obtain the Regulatory Approval, Investor will not be required to propose, negotiate, offer to commit or effect by consent, decree, hold separate Order or otherwise, the sale, divestiture, disposition of any assets or businesses of Investor, their respective Subsidiaries, the Entities, or to waive conflicting, overlapping or excessive Telecommunications Licenses, or otherwise to offer to take any other mitigation remedy.  
(d)    The Parties agree that Investor will control the process of obtaining the Regulatory Approval; provided, that Investor will allow NII Telecom and the Company sufficient time to review and comment on, and will take into account any comments from NII Telecom and the Company with respect to submissions or communications required in connection with the process of obtaining Regulatory Approval.
(e)    NII Telecom and the Company will cause each of the Entities, including Opco, to sign any document required for the submission of any filing or application for Regulatory Approval, including the application for Regulatory Approval itself; provided, however, that the absence of a signature from any of the Entities on any 

56

document will not prevent Investor making a filing or application for Regulatory Approval. NII Telecom, the Company or the Entities will not interfere with Investor’s strategy for obtaining the Regulatory Approval.
(f)    Investor will pay any and all fees and expenses related to the Regulatory Approval, except for the fees and expenses associated with consultants and counsel retained by NII Telecom to assist with the ANATEL filing.
(g)    Parent will use its reasonable best efforts to (i) provide Investor, as promptly as reasonably practicable, and, in any event within 10 Business Days after the Escrow Pay-In Date, with all licensees’ documents and statements usually required by ANATEL to allow a change in the control group of the Company and/or its Subsidiaries; and (ii) keep such documentation updated until receipt of Regulatory Approval and, after that, until the related act is published in the Official Gazette.
6.7    Antitrust Approval.  (a)  Investor and NII Telecom will (i) make or cause to be made all filings required of each of them or any of their respective Affiliates under the Antitrust Statutes with respect to the transactions contemplated hereby as promptly as practicable and, in any event, including, as required, the submission of this Agreement, the Ancillary Agreements, or any other document related to the transactions contemplated hereby to the Brazilian Antitrust Authorities, as promptly as practicable and, in any event, within 10 Business Days from the date hereof, (ii) comply at the earliest practicable date with any request under any Antitrust Statutes for additional information, documents or other materials received by each of them or any of their respective Subsidiaries from the Brazilian Antitrust Authorities or any other Governmental Authority in respect of such filings or such transactions, and (iii) cooperate with each other in connection with any such filing (including, to the extent permitted by applicable Law, providing copies of all such documents to the non-filing Parties prior to filing and considering all reasonable additions, deletions or changes suggested in connection therewith) and in connection with resolving any investigation or other inquiry of the Brazilian Antitrust Authorities or other Governmental Authority under any Antitrust Statutes with respect to any such filing or any such transaction. Each Party will use its commercially reasonable efforts to furnish to the other Party all information required for any application or other filing to be made pursuant to any applicable Law in connection with the transactions contemplated by this Agreement. Each Party will promptly inform the other Party of any oral communication with, and provide copies of written communications with, any Governmental Authority regarding any such filing or application. No Party will independently participate in any formal meeting with any Governmental Authority in respect of any such filings, investigation, or other inquiry without giving the other Party prior notice of the meeting and, to the extent permitted by such Governmental Authority, the opportunity to attend and participate. Subject to applicable Law, the Parties will consult and cooperate with one another in connection with any analyses, appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any Party relating to proceedings under the 

57

Antitrust Statutes. NII Telecom and Investor may, as each deems advisable and necessary, reasonably designate any competitively sensitive material provided to the other under this Section 6.7 as “outside counsel only.” Such materials and the information contained therein will be given only to the outside legal counsel of the recipient and will not be disclosed by such outside counsel to employees, officers or directors of the recipient, unless express written permission is obtained in advance from the source of the materials.
(b)    Investor will be responsible for (i) leading any interaction with the Brazilian Antitrust Authority, (ii) controlling (A) the filing of the Agreement and any other document before the Brazilian Antitrust Authority regarding the Antitrust Approval, and (B) the filling and submission of any other document or information required by the Brazilian Antitrust Authority, and (iii) preparing all drafts of any submissions or material communications with the competent Governmental Authority in connection with the Antitrust Statutes and providing such drafts as promptly as reasonably practicable to NII Telecom, allowing sufficient time to review.
(c)    Each of Investor and NII Telecom will use reasonable best efforts to resolve such objections, if any, as may be asserted by any Governmental Authority with respect to the transactions contemplated by this Agreement under any Antitrust Statutes. In connection therewith, if any Legal Proceeding is instituted (or threatened to be instituted) challenging any transaction contemplated by this Agreement, each of Investor and NII Telecom will cooperate and use its commercially reasonable efforts to contest and resist any such Legal Proceeding, and to have vacated, lifted, reversed or overturned any Order that is in effect and that prohibits, prevents or restricts consummation of the transactions contemplated by this Agreement, including by pursuing all available avenues of administrative and judicial appeal and all available legislative action, unless, by mutual agreement, Investor and NII Telecom decide that such actions are not in their respective best interests. Each of Investor and NII Telecom agrees to use reasonable best efforts to take promptly any and all steps necessary to avoid or eliminate each and every impediment under any Antitrust Statute that may be asserted by any Governmental Authority so as to enable the Parties to close the transactions contemplated by this Agreement as expeditiously as possible.
(d)    If requested by a Governmental Authority in order to obtain clearance under any Antitrust Statute, Investor will not be required to propose, negotiate, offer to commit and effect by consent decree, hold separate Order or otherwise, the sale, divestiture, disposition of any assets or businesses of Investor or their respective Subsidiaries, including the Entities, or otherwise offer to take any other mitigation remedy. 
(e)    Antitrust Approval by the Brazilian Antitrust Authority will be deemed to have been obtained upon the earlier to occur of: (i) the issuance of the certificate by CADE’s General Superintendence confirming the expiration of the 15-day waiting period without challenges to the final opinion approving the transactions contemplated herein 

58

by CADE’s General Superintendence, following the publication of such final opinion in the Official Gazette, as set forth in Articles 122 and 132 of CADE’s Internal Ruling, (ii) the release of a final decision on the case by CADE’s Administrative Tribunal or (iii) the expiration of all applicable time limitations under the Antitrust Statutes without the objection or issuance of a final decision by any applicable Governmental Authority.
(f)    Investor will pay any and all fees or expenses related to the Antitrust Approval, except for the fees and expenses associated with consultants and counsel retained by NII Telecom to assist with the required filings with the Brazilian Antitrust Authority.
6.8    Further Assurances.  Subject to the other provisions of this Agreement, each Party will use its commercially reasonable efforts to (i) take, or cause to be taken, all actions necessary or appropriate to consummate the transactions contemplated by this Agreement and (ii) cause the fulfillment at the earliest practicable date of all of the conditions to its respective obligations to consummate the transactions contemplated by this Agreement.
6.9    Publicity.  The initial press release concerning this Agreement and the transactions contemplated hereby will be in a form previously agreed by the Parties. Neither of the Parties will issue any press release or public announcement concerning this Agreement or the transactions contemplated hereby without obtaining the prior written approval of the other Party, which approval will not be unreasonably withheld or delayed, unless disclosure or filing are otherwise required by applicable Law, provided, however, that the Party intending to make such release uses its reasonable best efforts consistent with such applicable Law to consult in advance with the other Party with respect to the text thereof.
6.10    [RESERVED.] 
6.11    Supplementing and Amendment of Company Disclosure Letter.  NII Telecom may, at its option, include in the Company Disclosure Letter items that are not material in order to avoid any misunderstanding, and such inclusion, or any references to dollar or Real amounts, will not be deemed to be an acknowledgement or representation that such items are material, to establish any standard of materiality or to define further the meaning of such terms for purposes of this Agreement. Information provided in one Section of the Company Disclosure Letter will suffice, without repetition or cross-reference, as a disclosure of such information in any other Section of the Company Disclosure Letter to which its relevance is reasonably apparent on its face. From time to time before the Second Closing but after the Initial First Closing, the Company will have the right to supplement or amend the Company Disclosure Letter with respect to any matter hereafter arising or discovered after the delivery of the Company Disclosure Letter pursuant to this Agreement (each, a “New Matter”). No such New Matter will have any effect for purposes of determining the satisfaction of the condition to the Second Closing set forth in Section 7.1(a). For the avoidance of doubt, in the event of the disclosure of any New Matter that would be 

59

reasonably likely to cause the condition to the Second Closing set forth in Section 7.1(a) not to be satisfied, Investor shall have the right to either (a) terminate this Agreement under Section 3.6(c) or (b) consummate the Second Closing. If Investor elects to consummate the Second Closing notwithstanding the disclosure of any New Matter that would be reasonably likely to cause the condition to the Second Closing set forth in Section 7.1(a) not to be satisfied, then Investor will not have the right to recover any Losses with respect to such New Matter pursuant to Sections 8.2(a) to (c).
6.12    Preparation of Proxy Statement; Stockholders Meeting. In the event that Investor delivers the Notice of Exercise prior to the Option Expiration Date in accordance with Section 2.6, then:  
(a)    As promptly as reasonably practicable following the Exercise Date (but, in any event, no later than 20 Business Days after the Exercise Date, provided that if the Exercise Date is less than 30 days after the Effective Date, such 20 Business Day period will commence 30 days after the Effective Date), Parent will prepare and cause to be filed with the SEC the proxy statement to be sent to the stockholders of Parent in connection with the Parent Stockholders Meeting (as amended or supplemented, the “Proxy Statement”) in preliminary form. Parent and Investor will cooperate and consult with each other in the preparation of the Proxy Statement. Without limiting the generality of the foregoing, (i) Parent will provide Investor with a reasonable opportunity to review and comment on the Proxy Statement or any amendment or supplement thereto prior to filing (which comments shall be reasonably considered by Parent) and (ii) upon Parent’s request, Investor will promptly furnish to Parent the information relating to it and in its possession required by the Exchange Act to be set forth in the Proxy Statement. Each of Parent and Investor will cause the Proxy Statement to comply as to form and substance as to such Party in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of The NASDAQ Stock Market.  
(b)    Each of Parent and Investor agree to correct any information provided by it for use in the Proxy Statement that has become materially false or misleading upon becoming aware of the same and, if required by applicable Law, Parent shall promptly prepare and mail to its stockholders an amendment or supplement setting forth such correction; provided, however, that if an amendment or supplement is required to be prepared and mailed due to information provided by Investor being materially false or misleading, then all costs and expenses incurred in connection with such amendment or supplement will be borne by Investor. Parent will, as promptly as reasonably practicable, notify Investor of the receipt of any comments from or other correspondence with the SEC staff with respect to the Proxy Statement and any request by the SEC for any amendment to the Proxy Statement or for additional information (and promptly deliver a copy of such comments, any related correspondence or request to Investor). Parent shall use its reasonable best efforts to resolve, and each of Parent and Investor agrees to consult and cooperate with the other party in resolving, all SEC comments with respect to the Proxy Statement as promptly as practicable after receipt thereof and to cause the Proxy Statement in definitive form 

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to be cleared by the SEC and mailed to Parent's stockholders as promptly as reasonably practicable following filing with the SEC. Parent agrees to consult with Investor prior to responding to SEC comments with respect to the preliminary Proxy Statement. 
(c)    Subject to the terms hereof, as promptly as reasonably practicable after the date of mailing of the Proxy Statement (and in any event no more than 25 Business Days), Parent, acting through its board of directors, and in accordance with applicable Law, will (i) duly call, give notice of, convene and hold a meeting of its stockholders for the purpose of authorizing this Agreement and the transactions contemplated hereby (the “Parent Stockholders Meeting”) and (ii) include in the Proxy Statement the Parent Board Recommendation unless there is an Adverse Recommendation Change in accordance with Section 6.13. Without limiting the generality of the foregoing, NII Telecom agrees that its obligations pursuant to clause (i) of the foregoing sentence of this Section 6.12(c) will not be affected by the commencement, public proposal, public disclosure or communication to NII Telecom or Parent or any other Person of any Brazil Proposal or Parent Takeover Proposal. Subject to Section 6.13, and unless Parent has made an Adverse Recommendation Change, Parent shall use reasonable best efforts to (A) solicit from its stockholders proxies in favor of the adoption of this Agreement and approval of the transactions contemplated hereby and (B) take all other actions necessary or advisable to secure the vote or consent of its stockholders required by applicable Law to obtain such approval. Parent shall keep Investor updated with respect to proxy solicitation results as reasonably requested by Investor. Once the Parent Stockholders Meeting has been called and noticed, Parent shall not postpone or adjourn the Parent Stockholders Meeting (other than (x) with the written consent of Investor, which shall not be unreasonably withheld, conditioned or delayed, (y) in order to obtain a quorum of its stockholders or (z) as reasonably determined by Parent to comply with applicable Law). Notwithstanding anything contained herein to the contrary, Parent shall not be required to hold the Parent Stockholders Meeting if this Agreement is terminated before the meeting is held.  
6.13    No Solicitation.  (a)  From and after the date of this Agreement until the earlier of (x) the Second Closing, or (y) if Investor fails to deliver the Notice of Exercise by the Option Expiration Date, the Option Expiration Date, or (z) the date this Agreement is terminated pursuant to Section 3.6, Parent agrees that it shall not (and shall not permit any of its Subsidiaries to), and that it shall direct its directors, officers and employees not to, and that it shall direct and use its reasonable best efforts to cause its other advisers, agents and representatives (including Rothschild) not to, directly or indirectly:  (i) solicit, initiate or knowingly encourage or knowingly facilitate (including by way of furnishing information), or engage in discussions or negotiations regarding, any inquiry, proposal or offer, or the making, submission or announcement of any inquiry, proposal or offer (including any inquiry, proposal or offer to its shareholders) which constitutes or could be reasonably expected to lead to a Parent Takeover Proposal or a Brazil Proposal, (ii) participate in any negotiations regarding, or furnish to any Person any nonpublic information relating to Parent or any of its 

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Subsidiaries in connection with a Parent Takeover Proposal, Brazil Proposal, potential Parent Takeover Proposal or potential Brazil Proposal, (iii) engage in discussions with any Person with respect to any Parent Takeover Proposal, Brazil Proposal, or which could be reasonably expected to lead to a Parent Takeover Proposal or a Brazil Proposal, (iv) waive, terminate, modify or release any Person (other than Investor and its Affiliates) from any provision of or grant any permission, waiver or request under any “standstill” or similar agreement or obligation (provided that the Parent or its Affiliates may amend any such agreement to the extent required to permit the submission of a Brazil Proposal or Parent Takeover Proposal on a confidential basis if the Parent board of directors shall have determined in good faith, after consultation with its outside legal counsel and independent financial advisors, that the failure to take such action would be reasonably likely to give rise to a breach of the fiduciary duties of Parent’s board of directors under applicable Law), (v) approve or recommend, or propose publicly to approve or recommend, any Parent Takeover Proposal or Brazil Proposal, (vi) withdraw, change, amend, modify or qualify, or otherwise propose publicly to withdraw, change, amend, modify or qualify, in a manner adverse to Investor, the Parent Board Recommendation, (vii) within the earlier of (x) 10 Business Days of a tender or exchange offer relating to securities of Parent having been commenced and (y) two Business Days prior to the Parent Stockholders Meeting, fail to (1) publicly recommend against such tender or exchange offer or (2) publicly reaffirm the Parent Board Recommendation (if previously made by such time) (provided that issuing a “stop, look and listen” communication pursuant to Rule 14d-9(f) under the Exchange Act or complying with Rule 14d-9 and Rule 14e-2 under the Exchange Act shall not be a deemed a violation of this clause (vii)), (viii) following the public disclosure or public announcement of a Parent Takeover Proposal or Brazil Proposal, fail to reaffirm publicly the Parent Board Recommendation within the earlier of (x) 10 Business Days after such public disclosure or public announcement and (y) two Business Days prior to the Parent Stockholders Meeting, (ix) enter into any letter of intent or similar document relating to, or any agreement or commitment providing for, any Parent Takeover Proposal or Brazil Proposal (other than (x) an Acceptable Confidentiality Agreement in accordance with Section 6.13(b) or (y) in accordance with Section 3.6(g)) or (xi) resolve or agree to do any of the foregoing (any act described in clauses (v) through (viii) above, an “Adverse Recommendation Change”). Parent shall immediately cease, and direct its Affiliates and its and their directors, officers and employees to cease, and shall direct and use its reasonable best efforts to cause its Affiliates and other representatives to immediately cease, any and all existing discussions or negotiations with any parties (or provision of any nonpublic information to any parties) conducted heretofore with respect to any Parent Takeover Proposal, Brazil Proposal, potential Parent Takeover Proposal or potential Brazil Proposal. Parent shall promptly inform its representatives of Parent’s obligations under this Section 6.13. For purposes of this Section 6.13, the term “Person” means any Person or “group,” as used in Section 13(d) of the Exchange Act. 
(b)    Notwithstanding the limitations set forth in Section 6.13(a), if Parent receives, at any time after the date hereof and prior to receipt of the Parent Stockholder 

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Approval, a bona fide written Brazil Proposal or Parent Takeover Proposal which the Parent’s board of directors determines in good faith, after consultation with Parent’s outside legal and financial advisors, (i) constitutes a Superior Proposal, or (ii) could reasonably be expected to result, after the taking of the actions referred to in clause (x) or (y) below, in a Superior Proposal, then if the Parent Takeover Proposal or Brazil Proposal did not result from a material breach of Section 6.13(a), then Parent may (x) furnish nonpublic information to the Person making such Parent Takeover Proposal or Brazil Proposal, if, and only if, prior to so furnishing such information, Parent receives from such Person an executed Acceptable Confidentiality Agreement and (y) engage in discussions or negotiations with such Person with respect to the Parent Takeover Proposal or Brazil Proposal.
(c)    NII Telecom promptly (and in any event, within 24 hours of receipt of a Brazil Proposal or Parent Takeover Proposal) will advise Investor of the receipt of any Brazil Proposal or Parent Takeover Proposal (or any inquiry or proposal or request for nonpublic information relating to Parent or any of its Subsidiaries by any Person who has made or would reasonably be expected to make any Brazil Proposal or Parent Takeover Proposal). Such notice shall include the identity of the Person making, and the material terms and conditions of, the relevant proposal, inquiry or request and the material terms and conditions of any such Brazil Proposal or Parent Takeover Proposal. NII Telecom promptly will advise Investor of any discussions with any third party or its representatives regarding any Brazil Proposal or Parent Takeover Proposal by such third party or with whom discussions or negotiations would reasonably be expected to lead to a Brazil Proposal or a Parent Takeover Proposal. NII Telecom will keep Investor informed in all material respects on a reasonably current basis of the status, terms and conditions (including, any material amendment, modification, development, discussion or negotiation) of any such Brazil Proposal, Parent Takeover Proposal, request, inquiry, proposal or offer. Parent shall provide Investor with at least 24 hours prior notice of any meeting of the board of directors of Parent (or such lesser notice as is provided to the members of the board) at which the board of directors of Parent is reasonably expected to consider any Parent Takeover Proposal or Brazil Proposal. Parent shall promptly (but in any event within 24 hours) provide to Investor any material nonpublic information concerning Parent provided to any other Person in connection with any Parent Takeover Proposal, Brazil Proposal, request, inquiry, proposal or offer that was not previously provided to Investor. Parent shall not take any action to exempt any Person from the restrictions on “business combinations” contained in any applicable Takeover Statute or otherwise cause such restrictions not to apply.
(d)    Notwithstanding anything in this Section 6.13 or Section 6.12 to the contrary, at any time prior to the receipt of the Parent Stockholder Approval, the board of directors of Parent may make an Adverse Recommendation Change following receipt of a bona fide written Parent Takeover Proposal or Brazil Proposal that did not result from a material breach of Section 6.13(a) and is not withdrawn, which the board of directors of Parent determines in good faith after consultation with Parent’s outside legal and financial advisors is a Superior Proposal and that the failure to approve, recommend or 

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enter into a definitive agreement relating to such Superior Proposal would be inconsistent with the fiduciary duties of the board of directors of Parent under applicable Law, then, subject to compliance with Section 6.13(e), Parent, NII Telecom and the Company may terminate this Agreement pursuant to Section 3.6(g) in order to concurrently enter into a definitive agreement that constitutes a Superior Proposal upon (and subject to) paying the Termination Fee in accordance with Section 3.8(b).
(e)    Prior to Parent taking any action permitted under Section 6.13(d), Parent shall provide Investor with five Business Days' prior written notice (it being understood and agreed that any material amendment to the amount or form of consideration payable in connection with the applicable Parent Takeover Proposal or Brazil Proposal shall require a new notice and an additional two Business Day period) advising Investor that the board of directors of Parent intends to take such action and specifying the material terms and conditions of the Parent Takeover Proposal or Brazil Proposal, and during such five Business Day period (or subsequent two Business Day period), Parent shall consider and negotiate in good faith any proposal by Investor to amend the terms and conditions of this Agreement such that such Parent Takeover Proposal or Brazil Proposal would no longer constitute a Superior Proposal. 
(f)    Notwithstanding anything in this Section 6.13 to the contrary, Parent may, at any time prior to obtaining the Parent Stockholder Approval, effect an Adverse Recommendation Change in response to an Intervening Event if Parent’s board of directors concludes in good faith, after consultation with Parent’s outside legal and financial advisors that the failure to take such action would be inconsistent with its obligations under applicable Law. An “Intervening Event” means, with respect to Parent, a material event, circumstance, state of facts, occurrence, development or change that arises or occurs after the date of this Agreement and was not, prior to the date of this Agreement, known or reasonably foreseeable (or, if known, the consequences of which were not known by Parent as of the date of this Agreement); provided, however, that in no event will the receipt, existence or terms of a Parent Takeover Proposal, Brazil Proposal or any matter relating thereto or consequence thereof constitute an Intervening Event.
(g)    Nothing contained in this Section 6.13 or in Section 6.9 or Section 6.12 will prohibit Parent or its board of directors from taking and disclosing to Parent’s stockholders a position contemplated by Rule 14e-2(a) or Rule 14d-9 promulgated under the Exchange Act with regard to a Parent Takeover Proposal or Brazil Proposal or making any disclosure to Parent’s stockholders if Parent’s board of directors determines after consultation with counsel that the failure so to disclose would be inconsistent with its obligations under applicable Law.
(h)    No Adverse Recommendation Change shall relieve Parent from its obligations to submit the approval of this Agreement and the transactions contemplated hereby to a vote of its stockholders at the Parent Stockholders Meeting.

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(i)    References in this Section 6.13 to the “board of directors of Parent” shall mean the board of directors of Parent or, to the extent applicable, a duly authorized committee thereof. 
		
	VII.
	CONDITIONS TO SECOND CLOSING

7.1    Conditions Precedent to Obligations of Investor.  The obligation of Investor to consummate the transactions contemplated by this Agreement on Second Closing is subject to the fulfillment, on or before to the Second Closing Date, of each of the following conditions (any or all of which may be waived by Investor in whole or in part to the extent permitted by applicable Law):
(a)    the representations and warranties of NII Telecom and Parent contained in Article IV that are not qualified by materiality or Company Material Adverse Effect or NII Material Adverse Effect shall be true and correct in all material respects as of the Second Closing Date, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and the representations and warranties of Parent and NII Telecom contained in Article IV that are qualified by materiality or Company Material Adverse Effect or NII Material Adverse Effect shall be true and correct in all respects as of the Second Closing Date, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and Investor shall have received a certificate signed by an authorized officer of NII Telecom, dated as of the Second Closing Date, to the foregoing effect;
(b)    the Company and NII Telecom shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed or complied with by the Company and NII Telecom on or before the Second Closing Date, and Investor shall have received a certificate signed by an authorized officer of the Company and NII Telecom dated as of the Second Closing Date, to the foregoing effect; 
(c)    the closing deliveries set forth in Section 3.5(a) and Section 3.5(c) shall have been undertaken or delivered to Investor; 
(d)    the consent of Telefônica under the Telefônica Roaming Agreement and the Telefônica RAN Sharing Agreement shall have been obtained including Telefônica’s irrevocable waiver of its right of termination of such agreements, as provided in clauses 11.1.3 and 10.1.1, respectively; 
(e)    the terms of the respective Brazil Credit Facilities and ATC Agreement being amended as contemplated by Sections 6.5(b), 6.5(c) and 6.5(d); 
(f)    the consent from the ATC Group under the Master Purchase and Sale Agreement, dated August 8, 2013, between the ATC Group and Opco; and 

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(g)    the consent from the CDB Credit Facility lenders under the CDB Credit Facility to the change of control as a result of the Transaction shall have been obtained including the CDB Facility lenders’ irrevocable waiver of their rights of termination of the CDB Credit Facility and related arrangements.
7.2    Conditions Precedent to Obligations of the Company and NII Telecom.  The obligations of Parent, the Company and NII Telecom to consummate the transactions contemplated by this Agreement on Second Closing are subject to the fulfillment, on or before the Second Closing Date, of each of the following conditions (any or all of which may be waived by the Company or NII Telecom in whole or in part to the extent permitted by applicable Law):
(a)    the representations and warranties of Investor contained in Article V that are not qualified by materiality or Investor Material Adverse Effect shall be true and correct in all material respects as of the Second Closing Date, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and the representations and warranties of Investor contained in Article V that are qualified by materiality or Investor Material Adverse Effect shall be true and correct in all respects as of the Second Closing Date, except to the extent expressly made as of an earlier date, in which case as of such earlier date, and NII Telecom shall have received a certificate signed by an authorized officer of Investor, dated as of the Second Closing Date, to the foregoing effect;
(b)    Investor shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed or complied with by Investor on or before the Second Closing Date, and NII Telecom shall have received a certificate signed by an authorized officer of Investor dated as of the Second Closing Date, to the foregoing effect;
(c)    the existing guarantee granted by Parent under the CDB Credit Facility shall have been released and been substituted with a guarantee granted by the Company in form and substance reasonably acceptable to NII Telecom;
(d)    the existing guarantee granted by NII Telecom under the ATC Agreements shall have been released and substituted with a guarantee granted by the Company, in form and substance reasonably acceptable to NII Telecom;
(e)    Investor shall have delivered to Parent the Evidence of Financial Capacity and such Evidence of Financial Capacity shall be in full force and effect; and
(f)    the closing deliveries set forth in Section 3.5(b) shall have been undertaken or delivered to NII Telecom.
7.3    Conditions Precedent to Obligations of Investor, the Company and NII Telecom.  The respective obligations of Investor, the Company and NII Telecom to consummate the transactions contemplated by this Agreement on Second Closing are 

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subject to the fulfillment, on or before the Second Closing Date, of each of the following conditions (any or all of which may be waived by mutual consent of Investor, the Company and NII Telecom in whole or in part to the extent permitted by applicable Law):
(a)    there shall not be in effect any Order by a Governmental Authority of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; 
(b)    the Regulatory Approval shall have been obtained; 
(c)    the Antitrust Approval shall have been obtained; and
(d)    the Parent Stockholder Approval shall have been obtained.
7.4    Frustration of Closing Conditions.  Neither Investor nor NII Telecom nor the Company may rely on the failure of any condition set forth in Section 7.1, Section 7.2 or Section 7.3 if such failure was caused by such Party’s failure to comply with its respective obligations under this Agreement.
		
	VIII.
	SURVIVAL; INDEMNIFICATION

8.1    Survival of Representations, Warranties and Covenants.  The representations and warranties contained in this Agreement or any certificate delivered pursuant hereto, shall survive the Initial First Closing Date and shall remain in full force and effect until the date that is 12 months from the Initial First Closing Date; provided, that the representations and warranties (and indemnification in respect thereof pursuant to Section 8.2 below) (a) of NII Telecom in Section 4.1 (Organization of the Company), Section 4.2 (Authorization of Agreement), Section 4.4 (Organization of the Entities), Section 4.5 (Capitalization of the Entities), Section 4.6 (Valid Issuance of Preferred Shares), Section 4.8 (Title to Shares), and Section 4.23 (Voting) shall survive the Initial First Closing indefinitely, and (b) of Investor in Section 5.1 (Organization), Section 5.2 (Authorization of Agreement), and Section 5.6 (Financial Capability) shall survive the Initial First Closing indefinitely, (c) of NII Telecom and Parent in Section 4.28 (Organization), Section 4.29 (Authorization of Agreement) and Section 4.33 (Broker’s or Finder’s Fee) shall survive the Initial First Closing indefinitely, (d) Section 8.2(e) shall survive the Initial First Closing until the date that is 24 months following Initial First Closing, and (e) Section 8.2(f) shall survive the Initial First Closing until the Second Closing. All covenants and agreements of the Parties contained herein, which by their terms contemplate actions or impose obligations for a period of time, shall survive the Initial First Closing Date for the period contemplated or specified therein and the obligations on the Parent pursuant to Section 2.5 shall survive indefinitely. All other covenants and agreements contained in this Agreement shall survive the Initial First Closing Date until the date that is 12 months from the Initial First Closing Date. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from 

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the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.
8.2    Indemnification by NII Telecom.  Subject to Section 6.11 (in respect of (a) to (c) below only) and this Article VIII, NII Telecom shall indemnify and defend Investor and its Affiliates (other than the Company) (collectively, the "Investor Indemnitees") against, and shall hold each of them harmless from and against, and shall pay (as provided in Section 8.6(a)) for, any and all Losses incurred or sustained by, or imposed upon, the Investor Indemnitees or any Entity based upon, arising out of, with respect to or by reason of:
(a)    any inaccuracy in or breach of any of the representations or warranties of NII Telecom contained in this Agreement or in any certificate or instrument delivered by or on behalf of NII Telecom pursuant to this Agreement, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Initial First Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); 
(b)    any inaccuracy in or breach of any of the representations or warranties of Parent contained in this Agreement or in any certificate or instrument delivered by or on behalf of Parent pursuant to this Agreement, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Initial First Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date);
(c)    any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Parent, NII Telecom or the Company, prior to the Second Closing, pursuant to this Agreement; 
(d)    any Leakage since the Balance Sheet Date, which was not taken into account in determining any payment made under Section 2.3(d); 
(e)    any Identified Tax Claims; or
(f)    any breach or non-fulfillment of the covenant, agreement or obligation to be performed by NII Telecom or the Company pursuant to Section 4.9(c) of the Shareholders Agreement.
8.3    Indemnification by Investor.  Subject to this Article VIII, Investor shall indemnify and defend the Company and its Affiliates (collectively, the “Company Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, 

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or imposed upon, the Company Indemnitees based upon, arising out of, with respect to or by reason of:
(a)    any inaccuracy in or breach of any of the representations or warranties of Investor contained in this Agreement or in any certificate or instrument delivered by or on behalf of Investor pursuant to this Agreement, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Initial First Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or 
(b)    any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Investor pursuant to this Agreement.
8.4    Certain Limitations.
The indemnification provided for in Section 8.2 and Section 8.3 shall be subject to the following limitations:
(a)    NII Telecom shall not be liable to the Investor Indemnitees for indemnification under Section 8.2(a) or Section 8.2(b) until the aggregate amount of all Losses in respect of indemnification under Section 8.2(a) and Section 8.2(b) exceeds 1.0% (the “Basket”) of the aggregate amount of capital contributed to the Company by Investor pursuant to Sections 2.1 to 2.7 (each inclusive) at the time for payment of such amount, in which event NII Telecom shall be required to pay or be liable for all such Losses from the first dollar. The aggregate amount of all Losses for which NII Telecom shall be liable pursuant to Section 8.2 (such aggregate amount of Losses, the “Aggregate NII Indemnification”) shall not exceed 10% of the aggregate amount of capital contributed to the Company by Investor pursuant to Sections 2.1 to 2.7 (each inclusive) at the time for payment of such amount (the “Cap”).
(b)    Investor shall not be liable to the Company Indemnitees for indemnification under Section 8.3(a) until the aggregate amount of all Losses in respect of indemnification under Section 8.3(a) exceeds the Basket, in which event Buyer shall be required to pay or be liable for all such Losses from the first dollar. The aggregate amount of all Losses for which Investor shall be liable pursuant to Section 8.3(a) shall not exceed the Cap. 
(c)    Notwithstanding the foregoing, the limitations set forth in Section 8.4(a) and Section 8.4(b) shall not apply to claims in respect of Leakage or any Losses based upon, arising out of, with respect to or by reason of any inaccuracy in or breach of any representation or warranty in Section 4.1 (Organization of the Company), Section 4.4 (Organization of the Entities), Section 4.5 (Capitalization of the Entities), Section 4.21 (Broker’s or Finder’s Fee), Section 5.1 (Organization) and Section 5.5 (Broker’s or Finder’s Fee). 

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(d)    For purposes of calculating any Losses, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality or other similar qualification contained in or otherwise applicable to such representation or warranty.
8.5    Indemnification Procedures.  The party making a claim under this Article VIII is referred to as the “Indemnified Party”, and the party against whom such claims are asserted under this Article VIII is referred to as the “Indemnifying Party”. 
(a)    Third Party Claims.  If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a Party to this Agreement or an Affiliate of a Party to this Agreement (a “Third Party Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Losses that have been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party Claim at the Indemnifying Party's expense and by the Indemnifying Party's own counsel, and the Indemnified Party shall cooperate in good faith in such defense; provided, that such Indemnifying Party shall not have the right to defend or direct the defense of any such Third Party Claim that (x) is asserted directly by or on behalf of a person that is a supplier or customer of the Company, or (y) seeks an injunction or other equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to Section 8.5(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel selected, by it subject to the Indemnifying Party's right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party, provided, that if in the reasonable opinion of counsel to the Indemnified Party, there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 8.5(b), pay, compromise, defend such Third Party Claim and seek indemnification for any and all 

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Losses based upon, arising from or relating to such Third Party Claim. The Company and Investor shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.
(b)    Settlement of Third Party Claims.  Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided in this Section 8.5(b). If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within 10 calendar days after its receipt of such notice, the Indemnified Party may accept such offer without the Indemnified Party’s consent or continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 8.5(a), it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).
(c)    Direct Claims.  Any Action by an Indemnified Party on account of Losses which do not result from a Third Party Claim (a “Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 20 Business Days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Losses that have been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 20 Business Days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party's 

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investigation by giving such information and assistance (including access to the Company's premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 20 Business Day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.
8.6    Payments. Once Losses are agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this Article VIII:  
(a)    If the Indemnifying Party is NII Telecom: the Indemnifying Party shall satisfy its obligations on a non-cash basis through a transfer of shares that NII Telecom holds in the Company, to increase the percentage of share capital of the Company held by Investor by the Ownership Change (with a corresponding decrease in the percentage of share capital of the Company held by NII Telecom). For purposes of this Section 8.6(a), “Ownership Change” shall mean (i) if the Aggregate NII Indemnification is equal to or greater than the Maximum Cap, 400 basis points (subject to adjustment as provided in Section 1.2(k)), or (ii) if the Aggregate NII Indemnification is less than the Maximum Cap, then an amount of basis points equal to (A) 400 basis points multiplied by (B) the quotient of the Aggregate NII Indemnification divided by the Maximum Cap (the amount in this clause (ii) subject to adjustment as provided in Section 1.2(k)). Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that in no event shall the share capital of the Company held by NII Telecom as a result of this Section 8.6(a) be less than 36% on a fully diluted basis (subject to Section 1.2(k)) (the “Adjustment Floor”).
(b)    If the Indemnifying Party is Investor: (i) the Indemnifying Party shall satisfy its obligations within 15 Business Days of such final, non-appealable adjudication by wire transfer of immediately available funds; (ii) the Parties agree that should an Indemnifying Party not make full payment of any such obligations within such 15 Business Day period, any amount payable shall accrue interest from and including the date of agreement of the Indemnifying Party or final, non-appealable adjudication to and including the date such payment has been made at a rate per annum equal to 2%; and (iii) such interest shall be calculated daily on the basis of a 365 day year and the actual number of days elapsed, without compounding.
8.7    Tax Treatment of Indemnification Payments.  All indemnification payments made under this Agreement shall be treated by the Parties as an adjustment to capital contributions from Investor for Tax purposes, unless otherwise required by Law. Any indemnification payment made under this Agreement shall be made in full and free from any deduction or withholding whatsoever, save as required by Law. If any deductions or withholdings are required by Law, the sum due from the relvant Indemnifying Party shall be increased by such amount as to ensure that the 

72

Indemnified Party receives such sum as after such deduction or withholding has been made, leaves the Indemnified Party with the same amount as it would have been entitled to receive in the absence of any such requirement to make a deduction or withholding, taking into account any Tax credit the Indmnified Party receives in respect of such deduction or withholding. If any Tax Authority charges to Tax any indemnification payment made by an Indemnifying Party to an Indmenified Party under this Agremeent, the sum so payable shall be increased by such amount as will ensure that, after the payment of the Tax so charged, the Indemnifying Party receives and retains a sum equal to the amount that would otherwise be payable under this Agreement.
8.8    Exclusive Remedies.  Subject to Section 9.2, the Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud or criminal activity on the part of a Party in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this Article VIII. In furtherance of the foregoing, each Party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other Parties hereto and their Affiliates arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this Article VIII. Nothing in this Section 8.9 shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall be entitled or to seek any remedy on account of any Party's fraudulent or criminal misconduct.
		
	IX.
	MISCELLANEOUS

9.1    Guarantees.  
(a)    Investor Parent unconditionally and irrevocably guarantees to NII Telecom and the Company (the “Parent Guaranteed Parties”) the due and punctual performance by Investor of: 
(i)    all of Investor’s obligations pursuant to the terms of this Agreement and the Ancillary Agreements (as varied or amended in accordance with their terms);
(ii)    any payment obligation owed by Investor to the Parent Guaranteed Parties (or any of them) in respect of any obligation by Investor to fund the Company in accordance with the terms of this Agreement;
(iii)    any other payment obligation owed by Investor to the Parent Guaranteed Parties (or any of them) in accordance with the terms of this Agreement or any of the Ancillary Agreements; or

73

(iv)    any indemnity granted by Investor to the Parent Guaranteed Parties (or any of them) in accordance with the terms of this Agreement or any of the Ancillary Agreements,
and Investor Parent undertakes to keep the Parent Guaranteed Parties fully indemnified on demand against any and all Losses of whatever nature which the Parent Guaranteed Parties may suffer or incur as a result of any failure or delay by Investor in the performance of any of its obligations hereunder.
(b)    Investor and Investor Parent jointly and severally warrant and represent to the Parent Guaranteed Parties that Investor Parent has the corporate power to execute and deliver this Agreement and perform its obligations under this Section 9.1, that the execution and delivery of this Agreement and the performance of the obligations of Investor Parent under this Section 9.1 have been duly authorized by all necessary corporate action on the part of Investor Parent and that the obligations of Investor Parent under Section 9.1(a), constitute legal, valid and binding obligations of Investor Parent.
(c)    Parent unconditionally and irrevocably guarantees to Investor (the “Investor Guaranteed Parties”) the due and punctual performance by NII Telecom and the Company of: 
(i)    all of NII Telecom’s and the Company’s obligations pursuant to the terms of this Agreement and the Ancillary Agreements (as varied or amended in accordance with their terms);
(ii)    any payment obligation owed by NII Telecom to the Investor Guaranteed Parties (or any of them) in respect of any obligation by NII Telecom to fund the Company in accordance with the terms of this Agreement;
(iii)    any other payment obligation owed by NII Telecom or the Company to the Investor Guaranteed Parties (or any of them) in accordance with the terms of this Agreement or any of the Ancillary Agreements; or
(iv)    any indemnity granted by NII Telecom or the Company to the Investor Guaranteed Parties (or any of them) in accordance with the terms of this Agreement or any of the Ancillary Agreements (subject to Section 8.6),
and Parent undertakes to keep the Investor Guaranteed Parties fully indemnified on demand against any and all Losses of whatever nature which the Investor Guaranteed Parties may suffer or incur as a result of any failure or delay by NII Telecom or the Company in the performance of any of its obligations hereunder (subject to Section 8.6).
9.2    Expenses.  Except as otherwise provided in this Agreement, whether or not the transactions contemplated hereby are consummated, all costs and expenses (including any finder’s or investment banker’s fees and attorneys’ and accountants’ 

74

fees) incurred in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated hereby and the consummation of the transactions contemplated hereby and thereby will be paid by the Party incurring the expense.
9.3    Injunctive Relief.  Damages at law may be an inadequate remedy for the breach of any of the covenants, promises and agreements contained in this Agreement, and, accordingly, either Party will be entitled to injunctive relief with respect to any such breach, including specific performance of such covenants or an order enjoining a Party from any threatened, or from the continuation of any actual, breach of the covenants contained in this Agreement. The rights set forth in this Section 9.3 will be cumulative and not exclusive and shall be in addition to any other remedies or rights that a Party may have at law or in equity.
9.4    Governing Law; Submission to Jurisdiction.  This Agreement will be governed by and construed in accordance with the Laws of the State of New York applicable to contracts made and performed in such State. The Parties agree to unconditionally and irrevocably submit to the exclusive jurisdiction of the United States District Court for the Southern District of New York sitting in New York County or the Commercial Division, Civil Branch of the Supreme Court of the State of New York sitting in New York County and any appellate court thereof, for the resolution of any such claim or dispute. The Parties irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the Parties agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.
9.5    Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR IN PART UNDER, RELATED TO, BASED ON OR IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 9.5 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.
9.6    Entire Agreement; Amendments and Waivers.  (a)  This Agreement (including the Schedules and Exhibits to this Agreement) the Non-Disclosure Agreement and the Shareholders Agreement represent the entire understanding and agreement between the Parties with respect to the subject matter of this Agreement 

75

and supersede all prior and contemporaneous agreements and understandings (including any offer letters or term sheets), whether written or oral, relating to such subject matter.
(b)    This Agreement may be amended, supplemented or changed, and any provision of this Agreement may be waived, only by written instrument making specific reference to this Agreement signed by the Party against whom enforcement of any such amendment, supplement, modification or waiver is sought.
(c)    No action taken pursuant to this Agreement, including any investigation by or on behalf of a Party will be deemed to constitute a waiver by the Party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement will not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder will operate as a waiver thereof, nor will any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
9.7    Notices.  All notices and other communications under this Agreement will be in writing and will be deemed given (a) when delivered personally by hand (with written confirmation of receipt), (b) when sent by email (with confirmation of receipt), or (c) one Business Day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a Party may have specified by notice given to the other Party pursuant to this provision):
If to Parent or NII Telecom, to:
NII Holdings, Inc. 
1875 Explorer Street, Suite 1000  
Reston, VA 20191 
Attention:    Shana C. Smith, General Counsel 
Email:     [*]
With a copy (which will not constitute notice) to:
Jones Day 
250 Vesey Street 
New York, New York 10281 
Attention:     S. Wade Angus 
        Robert A. Profusek 
Email:        [*]        
    

76

If to Investor, to:
AINMT Brazil Holdings B.V.
Prins Bernhardplein 200
1097 JD Amsterdam
The Netherlands 
Attention: JD Fouchard 
Email: [*]
With a copy (which will not constitute notice) to:
Weil, Gotshal & Manges (London) LLP 
110 Fetter Lane 
London EC4A 1AY 
United Kingdom 
Attention:    Marco Compagnoni and  
        James Harvey 
Email:        [*]
If to AINMT AS or Investor Parent, to:
AINMT Holdings AB 
Åsögatan 108, SE-118 29 Stockholm
Sweden 
Attention: JD Fouchard 
Email: [*]

With a copy (which will not constitute notice) to:
Weil, Gotshal & Manges (London) LLP 
110 Fetter Lane 
London EC4A 1AY 
United Kingdom 
Attention:    Marco Compagnoni and 
        James Harvey 
Email:        [*]
9.8    Severability.  If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any Law or public policy, all other terms or provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the Parties will negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the 

77

transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.
9.9    Binding Effect; Assignment.  This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Nothing in this Agreement will create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by any Party, directly or indirectly (by operation of Law or otherwise), without the prior written consent of the other Parties and any attempted assignment without the required consents will be void, provided, however, that (a) NII Telecom may assign some or all of its rights or delegate some or all of its obligations hereunder to successor entities and (b) Investor may assign this Agreement and any or all rights or obligations hereunder to any Affiliate. No assignment will relieve the assigning Party of any obligations under this Agreement. Upon any permitted assignment, the references in this Agreement to the assigning Party will also apply to any such assignee unless the context otherwise requires.
9.10    Non-Recourse.  No past, present or future director, officer, employee, incorporator, member, partner, stockholder, Affiliate, agent, attorney or representative of a Party will have any liability for any obligations or liabilities of such Party under this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby.
9.11    Legal Representation.  (a)  Investor agrees that, as to all communications between counsel for the Company, NII Telecom, Parent, the Entities or their respective Affiliates (including Jones Day), on the one hand, and the Company, NII Telecom, Parent, the Entities or any of their respective Affiliates, on the other hand, that relate in any way to the transactions contemplated by this Agreement (collectively, the “Privileged Communications”), the attorney-client privilege and the expectation of client confidence with respect to the Privileged Communications belongs to the Company and/or Parent and may be controlled by the Company and/or Parent and will not pass to or be claimed by Investor or any of its Affiliates (including, after the Initial First Closing, the Entities). The Privileged Communications are the property of the Company and/or Parent, and, from and after the Initial First Closing, none of Investor or its Affiliates (including the Entities), or any Person purporting to act on behalf of or through Investor or its Affiliates (including the Entities) will seek to obtain such communications, whether by seeking a waiver of the attorney-client privilege or through other means. Investor further agrees that no such Party may use or rely on any of the Privileged Communications in any action against or involving the Company, Parent or any of their respective Affiliates. The Privileged Communications may be used by the Company, Parent or any of their respective Affiliates in connection with any dispute that relates to the transactions contemplated by this Agreement, including in any claim brought by Investor. Notwithstanding the foregoing, in the event that a dispute arises after the Initial First Closing between Investor or its Affiliates (including 

78

the Entities) and a third party (other than a Party to this Agreement or any of their respective Affiliates), Investor or its Affiliates (including the Entities) may assert the attorney-client privilege to prevent disclosure of confidential communications by counsel to such third party, provided, however, that none of Investor or its Affiliates (including the Entities) may waive such privilege without the prior written consent of the Company.
(b)    Jones Day has represented Parent and its Affiliates. All of the Parties recognize the commonality of interest that exists and will continue to exist until First Closing and Second Closing (If any), and the Parties agree that such commonality of interest should continue to be recognized after the Initial First Closing. Specifically, the Parties agree that (i) Investor will not, and will cause any Affiliates not to, seek to have Jones Day disqualified from representing the Company or its Affiliates in connection with any dispute that may arise between the Company or its Affiliates and any of Investor or any of its Affiliates (including, after the Initial First Closing, the Entities) in connection with this Agreement or the transactions contemplated by this Agreement, and (ii) in connection with any such dispute, will have the right to decide whether or not to waive the attorney client privilege that may apply to any communications between any Entity and Jones Day that occurred before the Second Closing.
9.12    Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement electronically (including portable document format (pdf.)) or by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement.
[Remainder of page intentionally left blank]

79

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its officers thereunto duly authorized, as of the date first written above.

AINMT BRAZIL HOLDINGS B.V.

By: /s/
Name:
Title:

By: /s/
Name:
Title:

AINMT HOLDINGS AB, solely for purposes of Section 9.1

By: /s/
Name:
Title:

By: /s/
Name:
Title:

AINMT AS, solely for purposes of Section 2.1(b)

By: /s/
Name:
Title:

NAI-1502577696v26 

NEXTEL HOLDINGS S.À.R.L.

By: /s/
Name:
Title:

NII INTERNATIONAL TELECOM S.C.A.

Represented by its sole manager 
NII INTERNATIONAL HOLDINGS S.à.r.l

Itself represented 

By: /s/
Name:
Title:

NII HOLDINGS, INC., 
solely for purposes of Section 6.12, 6.13, and 9.1

By: /s/
Name:
Title:

NAI-1502577696v26Exhibit

Exhibit 10.2

SHAREHOLDERS AGREEMENT

IN RELATION TO NEXTEL HOLDINGS S.À R.L.

AMONG

NEXTEL HOLDINGS S.À R.L.

AINMT BRAZIL HOLDINGS B.V.

NII INTERNATIONAL TELECOM S.C.A.

SOLELY FOR PURPOSES OF SECTION 5.1, AINMT HOLDINGS AB

SOLELY FOR PURPOSES OF SECTIONS 2.4 AND 5.2, NII HOLDINGS, INC.

AND

SOLELY FOR THE PURPOSES OF SECTION 2.2, AINMT AS

DATED June 5, 2017

TABLE OF CONTENTS

		
	I.
	DEFINITIONS    

		
	1.1
	Definitions    

		
	1.2
	Construction Rules and Interpretative Matters    

		
	II.
	RIGHTS AND OBLIGATIONS WITH RESPECT TO TRANSFER    

		
	2.1
	Transfers    

		
	2.2
	NII Telecom Put Rights    

		
	2.3
	Investor Call Right    

		
	2.4
	Investor’s Right to Convert Its Shares    

		
	2.5
	Right of First Refusal to Investor and (prior to Second Closing) Right of First Offer to NII Telecom on Transfers of Shares    

		
	2.6
	Right of First Refusal with Respect to Opco    

		
	2.7
	Tag-Along Rights    

		
	2.8
	Drag-Along Rights    

		
	2.9
	Provisions Applicable to Tag-Along/Drag-Along Rights    

		
	2.10
	Improper Transfer    

		
	2.11
	Certain Participation Rights    

		
	2.12
	Fair Market Value    

		
	2.13
	NII Telecom Existence    

		
	III.
	BOARD OF MANAGERS    

		
	3.1
	Powers and Duties of the Board    

		
	3.2
	Composition of the Board    

		
	3.3
	Term and Removal    

		
	3.4
	Vacancies    

		
	3.5
	Action by the Board of Managers    

		
	3.6
	Meetings of the Board    

		
	3.7
	Compensation and Reimbursement; Insurance    

		
	3.8
	Limitation on Liability; Indemnification; General    

		
	3.9
	Board committees    

		
	3.10
	Meetings of Shareholders    

		
	3.11
	Conflicting Provisions in Governing Documents    

		
	3.12
	Shareholder Access    

		
	3.13
	Confidentiality    

		
	IV.
	CERTAIN ARRANGEMENTS    

		
	4.1
	Effectiveness of Certain Minority Rights    

		
	4.2
	Additional Investment Requirements    

		
	4.3
	Financial Information of the Company    

		
	4.4
	Financial Information of Subsidiaries    

		
	4.5
	Actions Requiring NII Telecom’s Approval    

		
	4.6
	Actions Requiring Investor’s Approval    

		
	4.7
	Company Cure Right    

		
	4.8
	Anti-Corruption and Internal Financial Controls    

		
	4.9
	U.S. Tax    

		
	4.10
	Management Fees    

		
	4.11
	Treatment of Intercompany Arrangements    

		
	4.12
	Termination of Existing Arrangements    

		
	4.13
	Transitional arrangements    

		
	V.
	MISCELLANEOUS    

		
	5.1
	Investor Parent Guarantee    

		
	5.2
	NII Parent Guarantee    

		
	5.3
	Entire Agreement; Amendments and Waivers    

		
	5.4
	Notices    

		
	5.5
	Severability    

		
	5.6
	Termination    

		
	5.7
	Binding Effect; Assignment    

		
	5.8
	Counterparts    

		
	5.9
	Injunctive Relief    

		
	5.10
	Governing Law; Submission to Jurisdiction    

		
	5.11
	Waiver of Jury Trial    

		
	5.12
	Legal Prohibitions    

		
	5.13
	After-Acquired Shares; Options; Successor Shares    

		
	5.14
	Further Assurances    

		
	5.15
	No Announcements    

    

SHAREHOLDERS AGREEMENT

This SHAREHOLDERS AGREEMENT is executed on June 5, 2017 (the “Execution Date”), but to take effect only on the Initial First Closing Date (as hereafter defined, such date, the “Effective Date”), and contingent on the consummation of the Initial First Closing, and is by and among Nextel Holdings S.à r.l., a private limited liability company (société à responsabilité limitée) organized under the Laws of the Grand Duchy of Luxembourg with a registered office at 6, rue Eugène Ruppert, L-2453 Luxembourg and registered with the Luxembourg Trade and Companies Register under number B 150.303 (the “Company”), AINMT Brazil Holdings B.V., a corporation existing under the Laws of The Netherlands] (“Investor”), NII International Telecom S.C.A., a partnership limited by shares (société en commandite par actions) organized under the Laws of the Grand Duchy of Luxembourg with a registered office at 6, rue Eugène Rupert, L-2453 Luxembourg and registered with the Luxembourg Trade and Companies Register under number B 149.237 (“NII Telecom”), solely for purposes of Section 5.1, AINMT Holdings AB, a corporation existing under the Laws of Sweden (“Investor Parent”), solely for the purposes of Section 2.2 only, AINMT AS, a corporation existing under the Laws of Norway (“AINMT AS”), and, solely for purposes of Sections 2.4 and 5.2, NII Holdings, Inc., a Delaware corporation (“NII Parent”). Investor, NII Telecom and any other shareholder of the Company who from time to time becomes party to this Agreement by execution of a joinder agreement in substantially the form attached hereto as Exhibit A (the “Joinder Agreement”) may each be referred to herein individually as a “Shareholder” and collectively as the “Shareholders.” The Company, the Shareholders and, solely for purposes of Section 5.1, Investor Parent may each be referred to herein individually as a “Party” and collectively as the “Parties.” Unless otherwise specified, all capitalized terms used in this Agreement and not otherwise defined will have the meaning set forth in the Investment Agreement (as hereinafter defined).

RECITALS:

A.    The Company indirectly owns all of the issued and outstanding capital stock of Nextel Telecomunicações Ltda. (“Opco”).    

B.    The Company, Investor, Investor Parent, AINMT AS, NII Telecom and NII Parent have entered into the Investment Agreement dated June 5, 2017 (the “Investment Agreement”), pursuant to which the Parties agreed that the Company would issue and allot, subject to completion of the Corporate Reorganization, Preferred Shares representing an Applicable Ownership Percentage of 19.9% and will issue and allot, subject to receipt of the Antitrust Approval, additional Preferred Shares representing an Applicable Ownership Percentage of 10.1% to Investor as provided therein.

C.    Giving effect to the Initial First Closing, NII Telecom will own 116,666,667 Ordinary Shares, which represent an Applicable Ownership Percentage of 80.1% and, subject to receipt of the Antitrust Approval and further Preferred Shares being issued to Investor as contemplated by Recital B above, will represent an Applicable Ownership Percentage of 70%.

D.    Immediately following the consummation of the Second Closing in accordance with and subject to the terms and conditions of the Investment Agreement, Investor and NII Telecom will hold an Applicable Ownership Percentage of 60% and 40%, respectively (subject to adjustment based on the amount of the Second Parent Capital Contribution).

E.    The Company and each of the Shareholders desire to enter into this Agreement to regulate and limit certain rights relating to the Shares and to limit the sale, assignment, transfer, encumbrance or other disposition of such Shares and to regulate the management of the Company.

Accordingly, the Parties hereby agree as follows:

I.        DEFINITIONS

1.1.    Definitions.  The following terms have the following meanings when used herein with initial capital letters:

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls or is Controlled by, or is under common Control with, such Person.
“Agreement” means this Shareholders Agreement, any amendments hereto, and any exhibits, schedules, and attachments hereto, which are specifically incorporated herein by this reference.
“AINMT AS” is defined in the Preamble.
“AINMT AS Approval” means the affirmative vote of at least two-thirds of the votes properly cast at the AINMT AS Shareholders Meeting.
“AINMT AS Shareholders Meeting” a shareholders’ meeting of AINMT AS for the purpose of approving any issuance of AINMT AS Shares by AINMT AS required pursuant to Section 2.2.
“AINMT AS IPO” means the admission of any of the equity shares of AINMT AS to trading on a recognized securities exchange including, for the avoidance of doubt, Oslo Børs or Oslo Axess.
“AINMT AS IPO Shares” means shares in the capital of AINMT AS being admitted to trading in the AINMT AS IPO.
“AINMT AS Listing Value Per Share” means the final listing price per share of the AINMT AS IPO Shares on completion of an AINMT AS IPO.
“AINMT AS Shares” has the meaning specified in Section  2.2(c).
“AINMT AS Share Price” means (i) the volume weighted average price per share of AINMT AS Shares as reported by the applicable public stock exchange on which the AINMT AS Shares are listed and admitted to trading (including, if applicable, Oslo Børs or Oslo Axess) for the 30 trading-day period ending on the third day immediately preceding the AINMT Put Right Exercise Date or Call Right Exercise Date (as applicable) or (ii) if an AINMT AS IPO occurs after the AINMT Put Right Exercise Date or Call Right Exercise Date (as applicable) but before the AINMT Put Right Closing Date or Call Right Closing Date (as applicable), the AINMT AS Listing Value Per Share, in each case converted into dollars on the basis of the rate of exchange between Norwegian Krone (NOK) and dollars at the average mid-point NOK spot rate of exchange applicable to dollars as quoted in the Financial Times (London Edition) at or about 10.00 a.m. (London time) for each of 

the three days immediately preceding the AINMT Put Right Exercise Date or Call Right Exercise Date, as the case may be.
“AINMT Put Purchase Price” has the meaning specified in Section 2.2(c).
“AINMT Put Right” has the meaning specified in Section 2.2(a).
“AINMT Put Right Closing Date” has the meaning specified in Section 2.2(d).
“AINMT Put Right Exercise Date” has the meaning specified in Section 2.2(b).
“AINMT Put Right Notice” has the meaning specified in Section 2.2(b).
“AINMT Put Right Shares” has the meaning specified in Section 2.2(a).
“Annual Budget” has the meaning specified in Section 4.3(g).
“Applicable Ownership Percentage” means, with respect to a Shareholder, the ratio of the number of Shares held by the Shareholder to the total of all then issued and outstanding Shares on a fully diluted basis, expressed as a percentage.
“Articles” means the Articles of Association (Statuts) of the Company, as may be amended from time to time.”
“Board” means the board of Managers (Conseil de Gérance) of the Company.
“Board Meeting Notice” has the meaning specified in Section 3.6(a).
“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York, Luxembourg City, Luxembourg, Stockholm, Sweden or Amsterdam, The Netherlands, are authorized or required by Law to close.
“Business Plan” means the business plan and budget for the Group in the agreed form attached hereto as Exhibit C.
“Call Purchase Price” has the meaning specified in Section  2.3(c).
“Call Right” has the meaning specified in Section  2.3(a).
“Call Right Closing Date” has the meaning specified in Section  2.3(d).
“Call Right Exercise Date” has the meaning specified in Section  2.3(b).
“Call Right Notice” has the meaning specified in Section  2.3(b).
“Call Right Period” has the meaning specified in Section 2.3(a).
“Call Right Shares” has the meaning specified in Section  2.3(b).
“Capital Stock” means (a) with respect to any Person that is a corporation, any and all shares, interests, participation or other equivalents (however designated and whether or not voting) of 

corporate stock, and (b) with respect to any Person that is not a corporation, any and all partnership or other equity interests of such Person.
“Change of Control” means an event or series of events by which a Person who did not previously exercise Control over the Company, NII Parent or Investor Parent (as applicable) acquires or otherwise becomes able to exercise such Control or where a Person who was previously able to exercise Control, directly or indirectly, over the Company, NII Parent or Investor Parent (as applicable) ceases to be in a position to do so; provided, however, that if the Person acquiring or otherwise becoming able to exercise such Control is an Affiliate of the Company, NII Parent or Investor Parent (as applicable) immediately prior to acquiring or otherwise becoming able to exercise such Control, such change shall not constitute a “Change of Control.” 
“Company” has the meaning specified in the Preamble to this Agreement.
“Company Accountants” means the firm engaged by the Company at the time of any calculation or report required to be made by the Company Accountants under this Agreement and which shall be an internationally recognized certified public accounting firm.
“Confidential Information” means all intellectual property, documents, financial statements, records, business plans, recipes, reports and other information of whatever kind or nature, which has value to the Company, or which is treated by the Company as confidential and regardless of whether such information is marked “confidential,” except (a) such information that is or becomes generally available to the public through no action of the Party (including its limited partners, representatives, agents and Affiliates) to which such information was furnished, or (b) is or becomes available to the Party to which it was furnished on a non-confidential basis from a source, other than from the Company, its Affiliates or representatives, which the receiving Party believes, after reasonable inquiry, was not prohibited from so disclosing such information by a contractual, legal or fiduciary obligation.
“Control” (including the terms “Controlled by” and “under common Control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.
“Continuing Arrangements” has the meaning specified in Section 4.11.
“Conversion Closing Date” has the meaning specified in Section 2.4(d).
“Conversion Exercise Date” has the meaning specified in Section 2.4(b).
“Conversion Notice” has the meaning specified in Section 2.4(b).
“Conversion Price” has the meaning specified in Section 2.4(c).
“Conversion Right” has the meaning specified in Section 2.4(a).
“Convertible Shares” has the meaning specified in Section 2.4(a).
“Drag-Along Closing Date” has the meaning specified in Section 2.8(d).
“Drag-Along Disposition” has the meaning specified in Section 2.8(a).

“Drag-Along Notice” has the meaning specified in Section 2.8(a).
“Drag-Along Right” has the meaning specified in Section 2.8(a).
“Dragging Shareholder” has the meaning specified in Section 2.8(a).
“EBITDA” means the Group’s consolidated earnings before interest, tax, depreciation and amortization, excluding one-time or non-recurring items, with each of the foregoing calculated in accordance with US GAAP.
“Effective Date” has the meaning specified in the Preamble to this Agreement.
“Emergency Funding Situation” means a situation in which the Board reasonably believes that additional capital is required to cure any actual or potential event of default under the Company’s, or any of its Subsidiaries’, third party debt financing arrangements.
“Exchange Act” means the Securities Exchange Act 1934, as amended.
“Execution Date” has the meaning specified in the Preamble.
“Exercise Notice” has the meaning specified in Section 2.7(b).
“Existing Arrangements” has the meaning specified in Section 4.11.
“Fair Market Value” means the fair market value of the Shares as finally determined in accordance with Section 2.12.
“First Call Right Period” has the meaning specified in Section 2.3(a).
“First Put Right Period” has the meaning specified in Section 2.2(b).
“Grace Period” has the meaning specified in Section 4.10.
“Group” means the Company, NII International and its Subsidiaries and “Group Member” means any of them.
“Group Representatives” has the meaning specified in Section 4.8(b).
“Guaranteed Parties” has the meaning specified in Section 5.1(a).
“High FMV” has the meaning specified in Section 2.12(e).
“IFRS” means the International Financial Reporting Standards as issued by the International Accounting Standards Board, applied on a basis consistent in all material respects.
"Intercompany Debt" means the intercompany notes payable and intercompany notes receivable set forth in Section 4.9 SHA of the Company Disclosure Letter. 
“Investment Agreement” has the meaning specified in the Recitals to this Agreement.
“Investor” has the meaning specified in the Preamble to this Agreement.

“Investor Drag Threshold” means:
(i)Investor achieving an IRR of 20% or more, in relation to a Drag-Along Disposition occurring:
(A)prior to earlier of (x) the Exercise Date, if applicable, or (y) the Option Expiration Date;
(B)if Investor has exercised the Investor Option, from the Exercise Date until the earlier of (x) the date of Parent Stockholders Meeting or (y) the Option Termination Date; or
(C)if Investor has exercised the Investor Option, the Parent Stockholders Meeting has occurred and the Parent Stockholder Approval is obtained, from the Parent Stockholders Meeting until the earlier of (x) Second Closing and (y) the Option Termination Date; or
(i)Investor achieving the higher of (x) an IRR of 20% or more or (y) Multiple of Money of 2x or more, in relation to a Drag-Along Disposition occurring:  
(A)if Investor has not exercised the Investor Option prior to the Option Expiration Date, after the Option Expiration Date; 
(B)if Investor has exercised the Investor Option and the Parent Stockholders Meeting has occurred but the Parent Stockholder Approval is not obtained, from and after the Parent Stockholders Meeting; or
(C)otherwise, if (ii)(A) or (ii)(B) do not apply, from the Option Termination Date.
“Investor Inflow” means the cash amount actually invested by Investor or an Affiliate of Investor (other than a Group Member) in Preferred Shares (or, if applicable, Shares) on or after the Initial First Closing Date to the completion date of a Drag-Along Disposition. 
“Investor Manager” has the meaning specified in Section  3.2(a)(i).
“Investor Outflow” means the aggregate amount of cash proceeds received by Investor in connection with its investment in Preferred Shares in the Company after the Initial First Closing Date to (and including) the completion date of a Drag-Along Disposition, from all returns on such Preferred Shares, dividends on such Preferred Shares, redemptions of such Preferred Shares, buy backs of such Preferred Shares, returns of capital or proceeds, net of the payment of any reasonable out-of-pocket fees, costs, charges and expenses actually incurred by Investor in respect of the Drag-Along Disposition.
“Investor Parent” has the meaning specified in the Preamble to this Agreement.
“IRR” means the annual internal rate of return that makes the sum of each Investor Inflow and Investor Outflow, discounted to their respective dates, equal to zero and computed in accordance with the following formula:

where:
		
	•
	“Fi” corresponds to the Investor Inflow (if negative) or Investor Outflow (if positive);

		
	•
	“i” corresponds to days after the First Initial Closing Date and up until the date of receipt of the relevant Investor Outflow or the date of payment of the relevant Investor Inflow; and

		
	•
	“n” corresponds to the number of days between the First Initial Closing Date and the completion date of the Drag-Along Disposition.

“Joinder Agreement” has the meaning specified in the Preamble to this Agreement.
“Law” means any Swedish, Luxembourg, Dutch, Norwegian, U.S., Brazilian or other federal, state or local law, statute, code, ordinance, rule or regulation, as applicable.
“Low FMV” has the meaning specified in Section 2.12(e).
“Management Fees” has the meaning specified in Section 4.10.
“Manager” means a member (gérant) of the Board.
“Marketable Securities” means shares admitted to trading and listed on a public stock exchange.
“Multiple of Money” means as of the date of completion of the Drag-Along Disposition, the multiple of money on the investment in the Group (in whatever form) made by Investor and Investor’s Affiliates (other than the Group) calculated by dividing (a) the aggregate of all Investor Outflows by (b) the aggregate of all Investor Inflows;
“New Securities” means any Capital Stock and any rights, options, warrants to purchase Capital Stock and securities of any type which are, or may become, convertible, or exchangeable for, Capital Stock, that is not issued and outstanding on the date hereof; provided, however, that “New Securities” does not include, after the Second Closing, the following: (a) securities issued (i) in connection with the acquisition of another business entity by the Company, whether by merger, business combination, joint venture, purchase of all or substantially all of the assets of such entity or otherwise or (ii) in connection with any lending, financing or leasing arrangement approved by the Board or (b) securities issued as a result of any stock split, dividend, distribution, reclassification or reorganization of the Company’s equity securities.
“NII Change of Control” means (i) any Person or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becoming the "beneficial owner(s)" (as defined in Rule 13d-3 of the Exchange Act) of equity securities of NII Parent or any member of the Retained NII Group representing more than 50% of the total of all then outstanding voting securities of NII Parent or any member of the Retained NII Group or (ii) a merger or consolidation of NII Parent or any member of the Retained NII Group with or into another entity, other than a merger or consolidation that would result in the holders of NII Parent’s (or such member of the Retained NII Group’s) voting securities immediately prior thereto holding securities which represent immediately after such merger or consolidation more than 50% of the total combined voting power of the entity which 

survives such merger or consolidation or the parent of the entity which survives such merger or consolidation.
“NII Investment Amount” means (i) the cash amount invested by NII Telecom or an Affiliate of NII Telecom (other than a Group Member) in a member of the Group on or after Initial First Closing Date (and for these purposes (A) the Initial Parent Capital Contribution shall be deemed to be $116,666,667 (to the extent the Pre Initial Closing Subscription Amount is paid) and (B) the Second Parent Capital Contribution shall be deemed to be $16,667,000 to the extent the full Second Parent Capital Contribution is made, and all other amounts invested into the Company pursuant to the 115 Account or share premium account of the Company on or after Initial First Closing shall be disregarded), less (ii) the amount of any indemnifiable Losses paid by NII Telecom to Investor pursuant to the Investment Agreement (and to the extent such claims have been satisfied by the transfer(s) of Shares held by NII Telecom to Investor pursuant to the terms of the Investment Agreement, the NII Investment Amount will be reduced by multiplying the NII Investment Amount by the quotient of the number of Shares held by NII Telecom after such transfer(s) divided by the total number of Shares held by NII Telecom prior to such transfer(s)).
“NII Manager” has the meaning specified in Section  3.2(a)(i).
“NII Parent” has the meaning specified in the Preamble to this Agreement.
“NII Parent Stockholders Meeting” means a meeting of NII Parent’s stockholders for the purpose of approving (to the extent required by applicable Law) any issuance of NII Shares required pursuant to Section 2.4.
“NII Share Price” means the volume weighted average price per share of NII Shares as reported by the public stock exchange on which the NII Shares are listed and admitted to trading for the 30-day trading-day period ending upon the third day immediately preceding the Conversion Exercise Date.
“NII Shares” has the meaning specified in Section 2.4(a).
“NII Stockholder Approval” means the affirmative vote of a majority of the votes properly cast (excluding any abstentions or broker non-votes) by holders of common stock, par value $0.001 per share, of NII Parent entitled to vote at the NII Parent Stockholders Meeting to approve any issuance of NII Shares required pursuant to Section 2.4.
“NII Telecom” has the meaning specified in the Preamble to this Agreement.
“Nominee” has the meaning specified in Section  3.4(a).
“Offer Price” has the meaning specified in Section 2.5(a).
“Offered Shares” has the meaning specified in Section 2.5(a).
“Opco” has the meaning specified in the Recitals to this Agreement.
“Opco Sale Notice” has the meaning specified in Section 2.6(a).
“Ordinary Shares” means the Ordinary Shares as set forth in the Articles, par value $1.00 per share, of the Company.

“Other Shareholders” means, at any given time, the Shareholders other than (a) for purposes of Section 2.7, the Transferring Shareholder, and (b) for purposes of Section 2.8, the Dragging Shareholder.
“Parties” has the meaning specified in the Preamble to this Agreement.
“PCAOB” the U.S. Public Company Accounting Oversight Board.
“Permitted Transferee” means, with respect to a Shareholder, any of its Affiliates, and, with respect to Investor after the Second Closing (if any), any Person.
“Person” means an individual, corporation, partnership, trust, association, limited liability company or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
“Preferred Shares” means the Preferred Shares as set forth in the Articles, par value $1.00 per share, of the Company.
“Proceeding” has the meaning specified in Section 3.8(a).
“Proposed Drag-Along Transferee” has the meaning specified in Section 2.8(a).
“Proposed Opco Transferee” has the meaning specified in Section 2.6(a).
“Proposed Purchase Price” has the meaning specified in Section 2.6(a).
“Proposed Tag-Along Transferee” has the meaning specified in Section 2.7(a).
“Proposed Transaction” has the meaning specified in Section 2.6(a).
“Proposed Transferee” has the meaning specified in Section 2.5(a).
“Sale Notice” has the meaning specified in Section 2.5(a).
“Selling Shareholder” has the meaning specified in Section  2.5(a).
“Shareholders” has the meaning specified in the Preamble to this Agreement.
“Shares” means the Preferred Shares, the Ordinary Shares and any Successor Shares.
“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such Person owns, directly or indirectly, such number of outstanding shares or other equity interests as to have: (a) more than 50% of the ordinary voting power for the election of directors or other managers of such corporation, partnership, limited liability company or other entity, or (b) the right to receive more than 50% of the surplus assets on a dissolution or winding-up of such corporation, partnership, limited liability company or other entity. Unless the context otherwise requires, each reference to Subsidiaries herein will be a reference to Subsidiaries of the Company.
“Successor Shares” means any securities issued or issuable in consideration of exchange for or otherwise in respect of, any Preferred Shares or Ordinary Shares or successor shares to the 

foregoing in any merger, consolidation, recapitalization, reorganization or other transaction or by reason of a stock dividend, stock split or other similar transaction.
“Tag-Along Notice” has the meaning specified in Section 2.7(a).
“Tag-Along Period” has the meaning specified in Section 2.7(e).
“Tag-Along Ratio” has the meaning specified in Section 2.7(d).
“Tag-Along Transaction” has the meaning specified in Section 2.7(a).
“Transfer” means, (a) when used as a verb, to sell, transfer, assign, encumber, pledge, hypothecate, grant any right, option, profit participation or other interest in, or otherwise dispose of, directly or indirectly, voluntary or involuntarily, by operation of law or otherwise, and (b) when used as a noun, a direct or indirect, voluntary or involuntary, sale, transfer, assignment, encumbrance, pledge, hypothetication, grant of any right, option, profit participation or other interest, or other disposition by operation of law or otherwise, but shall not include, for the avoidance of doubt, in respect of Investor, any Transfers by any shareholders of Investor Parent or AINMT AS.
“Transferee” means any Person to whom any Shareholder Transfers any Shares.
“Transferring Shareholder” has the meaning specified in Section 2.7(a).
“Transitional Period” has the meaning specified in Section 4.13.
“Ultimate Valuation” has the meaning specified in Section 2.12(f).
“Ultimate Valuer” has the meaning specified in Section 2.12(f).
“U.S. GAAP” means generally accepted accounting principles in effect in the U.S. applied on a basis consistent in all material respects.
“Valuation” has the meaning specified in Section 2.12(d).
“Valuer” means the respective international investment bank appointed by each of Investor and NII Telecom, as applicable, as a “Valuer” pursuant to Section 2.12(b) or by the Company pursuant to Section 2.12(c), as applicable.
1.2.     Construction Rules and Interpretative Matters.  The following rules of construction and interpretation will apply:

(a)when calculating the period of time in which any act is to be performed pursuant to this Agreement, the date that is the reference date in calculating the beginning of such period will be excluded. If the last day of such period is a non-Business Day, the period in question will end on the next succeeding Business Day;

(b)to the extent the term “day” or “days” is used, it will mean calendar days;

(c)any reference in this Agreement to “$” or “dollars” will mean U.S. dollars and to “Real” or “R$” means Brazilian Reais;

(d)the Exhibits and Schedules to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement;

(e)unless the context otherwise requires, each of the Schedules will apply only to the corresponding Section or subsection of this Agreement;

(f)any reference in this Agreement to gender will include all genders, and words imparting the singular number only will include the plural and vice versa;

(g)the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience of reference only and will not affect or be utilized in construing or interpreting this Agreement;

(h)all references in this Agreement to any “Section,” “Article” or “Schedule” are to the corresponding Section, Article or Schedule of this Agreement unless otherwise specified;

(i)words such as “herein”, “hereinafter”, “hereof” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires;

(j)the word “including” or any variation thereof means “including, without limitation” and will not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it;

(k)any reference to the “date hereof” means the date of this Agreement;

(l)references to Laws mean a reference to such Laws as the same may be amended, modified, supplemented from time to time; and

(m)the Parties have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as jointly drafted by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

II.        RIGHTS AND OBLIGATIONS WITH RESPECT TO TRANSFER

2.1.     Transfers.

(a)No Shareholder will make any Transfer or attempt to make any Transfer in violation of the provisions set forth in this Article  II.

(b)No Transfer by a Shareholder will be valid unless, in addition to complying with any other applicable requirements of this Article  II, (i) the Transferee executes a Joinder Agreement prior to any Transfer; (ii) the Transfer complies in all respects with applicable securities Laws; and (iii) both the Shareholder whose Shares are the subject of the Transfer and the Transferee execute and deliver to the Company such documents as the Company may deem to be necessary or appropriate in order to evidence compliance with item (ii) above. Each Shareholder entitled to vote agrees that it will vote, or cause to be voted, its Shares or execute written consents, as the 

case may be, and take all other necessary action (including causing the Company to call a special meeting of Shareholders) in order to ensure that any Shares are Transferred as permitted or required pursuant to the terms and subject to the conditions set forth in this Agreement and the Articles.

(c)No Shareholder may Transfer any Shares without the prior written consent of the other Shareholders, other than a Transfer (i) to a Permitted Transferee (provided that if a Permitted Transferee to whom Shares have been Transferred ceases to be a Permitted Transferee, such Transferee shall Transfer all such Shares back to the Shareholder from whom it received them or to another Permitted Transferee of such Shareholder), (ii) pursuant to the provisions of this Article  II, (iii) as part of a sale of all of the issued and to be issued Shares of the Company pursuant to the terms of this Agreement, or (iv) as may be required pursuant to Section 8.6 of the Investment Agreement.

2.2.     NII Telecom Put Rights.  (a) From and after the Second Closing, NII Telecom shall have the right (but not be obliged) to require Investor or, at Investor’s option, AINMT AS, to purchase on the AINMT Put Right Closing Date, all, but not less than all, of the Shares held by NII Telecom and its Permitted Transferees at the AINMT Put Right Closing Date (the “AINMT Put Right Shares”) at the AINMT Put Purchase Price, determined in accordance with Section 2.2(c) (the “AINMT Put Right”).

(b)    Exercise of the AINMT Put Right.  NII Telecom may exercise the AINMT Put Right during the 45-day periods commencing (i) 12 months from the delivery of the Notice of Exercise by Investor pursuant to the Investment Agreement (if applicable) (the “First Put Right Period”) and (ii) the anniversary of the first day of the First Put Right Period, in the years 2019, 2020, 2021 and 2022, by giving a written notice to Investor and AINMT AS (such notice, the “AINMT Put Right Notice” and the date of such notice, the “AINMT Put Right Exercise Date”). The AINMT Put Right Notice will contain NII Telecom’s determination of the AINMT Put Purchase Price.

(c)    AINMT Put Purchase Price.  The “AINMT Put Purchase Price” will be the Fair Market Value of the Shares held by NII Telecom and its Permitted Transferees determined in accordance with Section 2.12, in each case net of all transfer taxes payable by the transferee in respect of the transfer of Shares held by NII Telecom and its Permitted Transferees, payable, at Investor’s election, either (i) in cash or (ii) by AINMT AS issuing NII Telecom a number of freely tradeable, fully paid and non-assessable shares of AINMT AS (the “AINMT AS Shares”) equal to the quotient of (A) the AINMT Put Purchase Price divided by (B) the AINMT AS Share Price.

(d)AINMT Put Right Terms and Conditions.  The date of the AINMT Put Right Closing will be 10 Business Days following the later of (i) the final determination of the AINMT Put Purchase Price in accordance with Section  2.2(c), (ii) the date of which any mandatory regulatory conditions required in connection with such closing have been satisfied and (iii) the date of which the AINMT AS Approval has been obtained (the “AINMT Put Right Closing Date”). The purchase of all the Shares held by NII Telecom and its Permitted Transferees pursuant to the AINMT Put Right will be expressly subject to the written waiver by Investor or fulfillment of the following conditions on or prior to the AINMT Put Right Closing Date:

(i)Investor shall have received from NII Telecom and each of its Permitted Transferees that hold Shares, a duly executed instrument of assignment and any other documentation reasonably requested by Investor in order to confirm that the Shares held by NII Telecom and any of its Permitted Transferees, and all rights in respect thereof (including, without 

limitation, all economic and voting rights) are being transferred to Investor free and clear of all liens (other than those arising by virtue of this Agreement) and Investor shall have received from the Company, evidence of the updated shareholders register of the Company reflecting the transfer of the Shares held by NII Telecom and any of its Permitted Transferees to Investor;

(ii)There shall not be any order of any Governmental Authority restraining or invaliding the transactions which are the subject of this Agreement;

(iii)The purchase and sale of the Shares held by NII Telecom would not violate any Laws applicable to Investor, AINMT AS, Investor Parent, NII Telecom or any Group Member;

(iv)NII Telecom giving customary representations and indemnification in respect of due authorization, execution and delivery of any agreement entered into in connection with the sale of its Shares, its authority to enter into such agreement and consummate the transactions contemplated thereby without the consent or approval of any other Person, NII Telecom’s title to its Shares and its ability to convey title thereto free and clear of any liens, encumbrances or adverse claims (other than those arising by virtue of this Agreement);

(v)If the AINMT Put Purchase Price is payable by the issuance of AINMT AS Shares, AINMT AS Approval being obtained in accordance with all applicable legal requirements;

(vi)NII Telecom entering into such customary lock-up, orderly market or other restrictions in respect of the AINMT Put Right where NII Telecom receives AINMT AS Shares, as reasonably recommended by any investment bank retained by AINMT AS in connection with the issue of the AINMT AS Shares (or, if AINMT is in the process of an AINMT AS IPO, as recommended by the underwriters or financial advisers to the AINMT AS IPO and to which any Affiliates of Investor are subject with respect to AINMT AS IPO Shares); and

(vii)The EBITDA of the Group exceeding, in aggregate. $100,000,000 in the combined four financial quarters (ending March, June, September and December) immediately preceding the date of the AINMT Put Right Notice.

(e)Approval by the shareholders of AINMT AS.  Investor and Investor Parent will each use their commercial reasonable efforts to obtain any approvals required by applicable Law from the shareholders of Investor, Investor Parent or any of their Affiliates in connection with issuance of AINMT AS Shares. AINMT AS will call the AINMT AS Shareholders Meeting to be held within ten Business Days (or following any AINMT AS IPO, 20 Business Days) of the final determination of the AINMT Put Purchase Price in accordance with Section 2.2(c), and use commercial reasonable efforts to obtain any approvals required from the shareholders of AINMT AS, in each case in connection with any issuance of AINMT AS Shares required pursuant to this Section 2.2. The obligations of AINMT AS set out in the preceding sentence are (for the avoidance of doubt) subject to the fiduciary duties from time to time of its directors. For the avoidance of doubt, AINMT AS shall not be in breach of any obligation under Section 2.2 if compliance with such obligation would be in breach of its directors' fiduciary duties.

2.3.    Investor Call Right. (a) Subject to NII Telecom not having served an AINMT Put Right Notice, during the Call Right Period Investor will have the right and option to purchase, and require NII to sell, all, but not less than all, of the Shares owned by NII Telecom and its Permitted Transferees 

for the Call Purchase Price (on the terms and conditions set forth herein) (the “Call Right”). Investor may exercise the Call Right in accordance with Section  2.3(b) at any time during the 45-day periods commencing (i) on the day immediately following the termination of the First Put Right Period (if applicable) (the “First Call Right Period”) and (ii) the anniversary of the first day of the First Call Right Period, in the years 2019, 2020, 2021 and 2022 (each such period, including the First Call Right Period, the “Call Right Period”). If a Put Right Notice and a Call Right Notice are served on the same date, the Call Right Notice shall have priority and the Put Right Notice shall be of no effect.

(b)     Exercise of the Call Right.  Investor may exercise its Call Right at any time during the Call Right Period by giving written notice to NII Telecom (such notice, the “Call Right Notice” and the date of such notice, the “Call Right Exercise Date”). The Call Right Notice will contain the number of Shares that Investor is willing to purchase (the “Call Right Shares”) and Investor’s determination of the Call Purchase Price.

(c)    Call Purchase Price.  The “Call Purchase Price” for the Call Right Shares will be:

(i)for any Call Right exercised in the First Call Right Period, an amount in cash in U.S. dollars equal to the higher of (A) Fair Market Value of the Call Right Shares determined in accordance with Section 2.12 and (B) the NII Investment Amount multiplied by 1.2, payable either, at the option of NII Telecom (1) in cash, or (2) by issuance by AINMT AS of a number of AINMT AS Shares equal to the quotient of (x) the Call Purchase Price divided by (y) the AINMT AS Share Price.

(ii)for any Call Right exercised in any other Call Right Period, an amount in cash in U.S. dollars equal to the Fair Market Value of the Call Right Shares determined in accordance with Section 2.12 payable, at the option of Investor: (A) in cash, or (B) by issuance by AINMT AS of a number of AINMT AS Shares equal to the quotient of (1) the Call Purchase Price divided by (2) the AINMT AS Share Price.

(d)     The date of the Call closing will be 20 Business Days following determination of the Call Purchase Price in accordance with Section 2.3(c) (the “Call Right Closing Date”). The purchase of the Call Right Shares will be expressly subject to the written waiver by Investor or fulfillment of the following conditions on or prior to the applicable Call Closing Date:

(i)Investor shall have received from NII Telecom, a duly executed instrument of assignment and any other documentation reasonably requested by Investor in order to confirm that such Call Right Shares, and all rights in respect thereof (including, without limitation, all economic and voting rights) are being transferred to Investor free and clear of all liens (other than those arising by virtue of this Agreement) and Investor shall have received from the Company, evidence of the updated shareholders register of the Company reflecting the transfer of NII Telecom’s Shares to Investor;

(ii)There shall not be any order of any Governmental Authority restraining or invaliding the transactions which are the subject of this Agreement;

(iii)The purchase and sale of the Call Right Shares would not violate any Laws applicable to Investor, NII Telecom or any Group Member; and

(iv)NII Telecom giving customary representations and indemnification in respect of due authorization, execution and delivery of any agreement entered into in connection with the sale of the Call Right Shares, its authority to enter into such agreement and consummate the transactions contemplated thereby without the consent or approval of any other Person, NII Telecom’s title to the Call Right Shares and its ability to convey title thereto free and clear of any liens, encumbrances or adverse claims (other than those arising by virtue of this Agreement).

2.4.    Investor’s Right to Convert Its Shares.  

(a)Without prejudice to its rights under Section 2.7, if Investor does not complete the Second Investor Capital Contribution, beginning on the date that is 12 months after the Option Expiration Date (subject to NII Stockholder Approval, if required), Investor shall have the right (but shall not be obligated to) to require NII Parent to issue, on the Conversion Closing Date, in exchange for all, but not less than all, of the Shares held by Investor and its Permitted Transferees at the Conversion Closing Date (the “Convertible Shares”), common stock of NII Parent (“NII Shares”), at Fair Market Value, on the terms of this Section 2.4 (such right, the “Conversion Right”), and may appoint an intermediary to hold such NII Shares.

(b)Exercise of the Conversion Right.  Investor may exercise the Conversion Right, during the 90-day period immediately following the date that is 12 months following the Option Expiration Date, by giving a written notice to NII Telecom and NII Parent (such notice, the “Conversion Notice” and the date of such notice, the “Conversion Exercise Date”). The Conversion Notice will contain Investor’s determination of the Conversion Price.

(c)Conversion Price.  The “Conversion Price” will be a number of freely tradable, fully paid and non-assessable shares of NII Parent (the “NII Shares”) equal to the quotient of (A) the Fair Market Value of the Shares held by Investor and its Permitted Transferees determined in accordance with Section 2.12 divided by (B) the NII Share Price, in each case net of all transfer taxes payable by the transferee in respect of the transfer of Shares held by Investor and its Permitted Transferees.

(d)Conversion Rights Terms and Conditions.  The date of the Conversion Right Closing will be 10 Business Days following the later of (i) the final determination of the Conversion Price in accordance with Section 2.4(c), (ii) the date of which any mandatory regulatory conditions required in connection with such closing have been satisfied and (iii) the date of which any required NII Stockholder Approval has been obtained (the “Conversion Closing Date”). The purchase of all the Shares held by Investor and its Permitted Transferees pursuant to the Conversion Right will be expressly subject to the written waiver by NII Telecom or fulfillment of the following conditions on or prior to the Conversion Closing Date:

(i)NII Telecom shall have received from Investor and each of its Permitted Transferees that hold Shares, a duly executed instrument of assignment and any other documentation reasonably requested by NII Telecom in order to confirm that the Shares held by Investor and any of its Permitted Transferees, and all rights in respect thereof (including, without limitation, all economic and voting rights) are being transferred to NII Parent free and clear of all liens (other than those arising by virtue of this Agreement) and NII Telecom shall have received from the Company, evidence of the updated shareholders register of the Company reflecting the transfer of the Shares held by Investor and any of its Permitted Transferees to NII Parent;

(ii)There shall not be any order of any Governmental Authority restraining or invaliding the transactions which are the subject of this Agreement;

(iii)The purchase and sale of the Shares held by Investor would not violate any Laws applicable to NII Parent, NII Telecom or any Group Member;

(iv)Investor giving customary representations and indemnification in respect of due authorization, execution and delivery of any agreement entered into in connection with the sale of its Shares, its authority to enter into such agreement and consummate the transactions contemplated thereby without the consent or approval of any other Person, Investor’s title to its Shares and its ability to convey title thereto free and clear of any liens, encumbrances or adverse claims (other than those arising by virtue of this Agreement);

(v)NII Stockholder Approval being obtained in accordance with all applicable legal requirements; and

(vi)Investor entering into such customary lock-up, orderly market or other restrictions in respect of the Conversion Right where Investor receives NII Shares, as reasonably recommended by any investment bank retained by NII Parent in connection with the issue of the NII Shares.

(e)Approval by the shareholders of NII Parent.  NII Telecom and NII Parent will each use their commercial reasonable efforts to obtain any approvals required by applicable Law from the shareholders of NII Telecom, NII Parent or any of their Affiliates in connection with issuance of NII Shares. NII Parent will prepare and send the necessary documentation and filings in order to call the NII Parent Stockholders Meeting within 20 Business Days of the final determination of the Conversion Price in accordance with Section 2.4(c), and use commercially reasonable efforts to obtain any approvals required by applicable Law from the shareholders of NII Parent, in each case in connection with any issuance of NII Shares required pursuant to this Section 2.4. The obligations of NII Parent set out in the preceding sentence are (for the avoidance of doubt) subject to the fiduciary duties from time to time of its directors. For the avoidance of doubt, NII Parent shall not be in breach of any obligation under Section 2.4 if compliance with such obligation would be in breach of its directors' fiduciary duties.

2.5.    Right of First Refusal to Investor and (prior to Second Closing) Right of First Offer to NII Telecom on Transfers of Shares.

Right of First Refusal  

(a)If NII Telecom desires to Transfer any Shares to any Person other than a Permitted Transferee, before Transferring any Shares NII Telecom will provide written notice (the “Sale Notice”) to Investor. The Sale Notice will state NII Telecom’s intention to effect such a Transfer, and will identify the proposed Transferee (the “Proposed Transferee”), the number of Shares proposed to be Transferred (the “Offered Shares”), the consideration to be paid for the Offered Shares (the “Offer Price”), and the other material terms and conditions of the proposed Transfer (which will include the obligation of the Proposed Transferee to execute a Joinder Agreement and assume and be bound by the obligations of this Agreement) and shall be accompanied by a copy of all material agreements entered into or to be entered into in connection with such proposed 

Transfer. If the consideration consists in part or in whole of consideration other than cash, NII Telecom will provide such information, to the extent reasonably available to NII Telecom, relating to such consideration as Investor may reasonably request in order to evaluate such non-cash consideration. The Sale Notice shall require that the consummation of any sale of the Offered Shares to Investor occur on a date that is no less than 30 Business Days before, and no more than 60 Business Days after the later of (i) the date of the Sale Notice and (ii) the date on which all applicable third-party approvals have been unconditionally obtained.

(b)Upon receipt of the Sale Notice, Investor will have a non-transferable and irrevocable right to purchase, at the Offer Price and otherwise on the terms and conditions described in the Sale Notice, all (but not less than all) of the Offered Shares, and Investor will, within 20 Business Days from receipt of the Sale Notice, indicate to NII Telecom if it desires to purchase the Offered Shares by sending irrevocable written notice of such acceptance to NII Telecom to purchase the Shares and Investor will then be obligated to purchase the Shares on the terms and conditions set forth in the Sale Notice.

(c)If Investor does not exercise its option to purchase the Offered Shares and NII Telecom has not completed the sale of the Offered Shares to the Proposed Transferee described in Section  2.5(a) within six months from the date of the Sale Notice, then the provisions of this Section  2.5 will again apply, and NII Telecom will not Transfer or offer to Transfer such Shares without again complying with this Section  2.5.

(d)Upon exercise by Investor of its rights of first refusal under this Section  2.5, Investor and NII Telecom will be legally obligated to consummate the purchase contemplated thereby and will use their reasonable best efforts to comply as soon as reasonably practicable with all applicable Laws, to obtain all regulatory or other approvals required and to take all such other actions and to execute such additional documents as are reasonably necessary or appropriate in connection therewith and to consummate the purchase of the Offered Shares as promptly as practicable.

(e)The Company will take all reasonable steps necessary to assist and cooperate with Investor and NII Telecom to facilitate the Transfer of Offered Shares to Investor.

Right of First Offer (prior to Second Closing)

(f)If, from the Effective Date and prior to Second Closing, Investor wishes to transfer any of its Shares (other than to a Permitted Transferee, pursuant to Section 2.7 (Tag-Along) or if NII Telecom elects to, and does operate, the provisions of Section 2.8 (Drag Along)), then before Investor transfers any Shares, Investor shall give notice in writing (the "ROFO Transfer Notice") to NII Telecom of its desire to do so and it will not transfer such Shares unless the following procedures of this Section 2.5(f) to (h) have been observed. 

(g)The ROFO Transfer Notice shall:

(i)specify the number and class of Shares proposed to be transferred (the "Offered Securities");

(ii)specify the price per Share at which Investor proposes to Transfer the Offered Securities (the "Prescribed Price");

(iii)state whether the ROFO Transfer Notice is conditional upon all (and not part only) of the Offered Securities being sold pursuant to the provisions of this Section 2.5(f) to (h); and

(iv)not be withdrawn except as provided in Section 2.5(h).

(h)NII Telecom shall have 20 days to agree and sign a binding sale and purchase agreement for the purchase of the Offered Securities from Investor. If no agreement is reached within this period, Investor may: (i) withdraw the ROFO Transfer Notice; or (ii) proceed with the transfer of the Offered Securities to a third party within 9 months at a price not lower than the Prescribed Price and otherwise on not materially worse terms for Investor than those offered by NII Telecom to Investor.

2.6.    Right of First Refusal with Respect to Opco.  (a) If the Company or the Shareholders desire to Transfer all or substantially all of Opco’s business or assets to any proposed Transferee (which must be an unaffiliated third Person) (the “Proposed Opco Transferee”), at such time, the Company will provide a sale notice (the “Opco Sale Notice”) to Investor for so long as Investor’s Applicable Ownership Percentage is at least 20%. The Opco Sale Notice will state the Company’s intention to effect such a Transfer, and will identify the Proposed Opco Transferee, a description of the proposed Transfer (the “Proposed Transaction”), the proposed purchase price (the “Proposed Purchase Price”) for the Proposed Transaction and the other material terms and conditions of the Proposed Transaction, and shall be accompanied by a copy of all material agreements entered into or to be entered into in connection with the Proposed Transaction. If the consideration consists in part or in whole of consideration other than cash, the Company will provide such information, to the extent reasonably available, relating to such consideration as Investor may reasonably request in order to evaluate such non-cash consideration. The Opco Sale Notice shall require Investor to consummate the Proposed Transaction (if at all) no less than 30 Business Days before, and no more than 60 Business Days after the later of (i) the date of the Opco Sale Notice and (ii) the date on which all applicable third-party approvals have been unconditionally obtained and all closing conditions have been fulfilled.

(b)     Upon receipt of the Opco Sale Notice, Investor will have a non-transferable and irrevocable right to purchase, at the Proposed Purchase Price and otherwise on the terms and conditions described in the Opco Sale Notice, all (but not less than all) of the assets included in the Proposed Transaction, and Investor will, within 20 Business Days from receipt of the Opco Sale Notice, indicate to the Company if it desires to take the place of the Proposed Opco Transferee by sending a written notice of acceptance and such Investor will then be obligated to consummate the Proposed Transaction on the terms and conditions set forth in the Opco Sale Notice.

(c)    If Investor does not exercise its right of first refusal under this Section 2.6, and the Company has not consummated the Proposed Transaction with the Proposed Opco Transferee within six months from the date of the Opco Sale Notice or the drop-dead date set forth in the underlying acquisition agreement, whichever is later, then the provisions of this Section 2.6 will again apply, and the Company may not consummate or offer the Proposed Transaction without again complying with this Section 2.6.

(d)     Upon exercise by an Investor of its rights of first refusal under this Section 2.6, such Investor will be legally obligated to consummate the Proposed Transaction and will use its 

reasonable best efforts to comply as soon as reasonably practicable with all applicable Laws, to obtain all regulatory or other approvals required and to take all such other actions and to execute such additional documents as are reasonably necessary or appropriate in connection therewith and to consummate the Proposed Transaction as promptly as practicable.

2.7.    Tag-Along Rights.  (a) Subject to first complying with the provisions of Section 2.5, as applicable, if (i) between the Effective Date and the Second Closing (if any), NII Telecom (and/or any of its Permitted Transferees) enters into a binding agreement to Transfer such number of its Shares to a Person as would cause NII Telecom’s Applicable Ownership Percentage to be less than 50%, or (ii) after the Effective Date NII Telecom, NII Parent, any member of the Retained NII Group or any of NII Parent’s stockholders enters into a binding agreement as would cause an NII Change of Control as a result of a transfer or issuance of shares or stock in the capital of NII Parent or any member of the Retained NII Group to any Person, or, (iii) from and after the Second Closing (if any), Investor and/or any of its Permitted Transferees) enters into a binding agreement to Transfer any of its Shares to another Person (each of the Persons described in clauses (i), (ii) and (iii) above, other than NII Telecom and Investor, a “Proposed Tag-Along Transferee”, and such proposals a “Tag-Along Transaction”), the applicable Shareholder entering into such binding agreement (being NII Telecom, the member of the Retained NII Group and/or NII Parent in case of (ii) above) (the “Transferring Shareholder”) will provide written notice of such Tag-Along Transaction (the “Tag-Along Notice”) to the Company and to the Other Shareholders in the manner set forth in this Section 2.7. Such Tag-Along Notice will identify the Proposed Tag-Along Transferee, the number of Shares (or shares or stock in NII Parent or the relevant member of the Retained NII Group if applicable) proposed to be purchased from the Transferring Shareholder (or, if applicable, purchased from or issued to NII Parent’s stockholders in case of (ii) above) (or if greater, the number of Shares such Proposed Tag-Along Transferee is willing to purchase), the Tag-Along Ratio (as defined below if applicable), the consideration offered and any other material terms and conditions of the Tag-Along Transaction, and the price to be offered to the Other Shareholders for their Shares shall be calculated in accordance with Section 8.2 of the Articles. If the offer price consists in part or in whole of consideration other than cash, the Transferring Shareholder will provide such information, to the extent reasonably available to the Transferring Shareholder, relating to such consideration as the Other Shareholders may reasonably request in order to evaluate such non-cash consideration.

(b)The Other Shareholders will have the right, exercisable as set forth below, to accept the Tag-Along Transaction for the number of Shares determined pursuant to Section 2.7(d) (and if the Other Shareholders have provided an Exercise Notice in accordance with this Section 2.7 such Tag-Along Transaction will not complete unless, subject to the Other Shareholder’s compliance with this Section 2.7, such Tag-Along Transaction includes the transfer of the Other Shareholder’s Shares to the Proposed Tag-Along Transferee on the terms of this Section 2.7). The Other Shareholders may elect to exercise their right, within 10 Business Days after receipt of the Tag-Along Notice from the Transferring Shareholder, by providing the Transferring Shareholder with an irrevocable written notice specifying the number of Shares each such Other Shareholder agrees to Transfer (the “Exercise Notice”), which number will not exceed the number as contemplated above, and will simultaneously provide a copy of such Exercise Notice to the Company. If the Other Shareholders do not accept the Tag Along Offer within 10 Business Days following receipt by delivering an Exercise Notice in accordance with this Section 2.7(b), it will be deemed to have irrevocably waived any and all rights under this Section 2.7 with respect to the Transfer of Shares pursuant to such Tag-Along Transaction. Delivery of the Exercise Notice by the Other Shareholders will constitute an irrevocable acceptance of the Tag-Along Transaction by such Other Shareholders for the number of Shares determined in accordance with Section 2.7(d) at the 

price and on the terms and conditions specified as being offered to Transferring Shareholder in the Tag-Along Transaction. In case of a Tag-Along Transaction pursuant to Section 2.7(a)(ii), the price offered to Investor for its Shares to be sold as part of the Tag-Along Transaction (the “Investor Tagged Shares”) shall be the Fair Market Value of the Investor Tagged Shares determined in accordance with Section 2.12.

(c)If the Other Shareholders have accepted the Tag-Along Transaction, then not less than 10 Business Days prior to the proposed date of any sale (or issuance, if applicable) pursuant to a Tag-Along Transaction, the Transferring Shareholder will notify the Other Shareholders of such proposed date. Not less than two Business Days prior to such proposed date, such Other Shareholders will deliver to the Company to hold in escrow all documents required to be executed in connection with such Tag-Along Transaction.

(d)The Other Shareholders will have the right to Transfer (and the Transferring Shareholder will, to the extent necessary, reduce the amount or number of Shares to be sold by the Transferring Shareholder by a corresponding amount), pursuant to the Tag-Along Transaction: (A) in the case of Section  2.7(a)(i) and (iii) above, a number of Shares that is equal to the product of (i) the total number of Shares offered to be purchased as set forth in such Tag-Along Transaction and (ii) a fraction (the “Tag-Along Ratio”), the numerator of which will be the aggregate number of Shares held by such Other Shareholders and the denominator of which will be the aggregate number of Shares at issue; and (B) in the case of Section  2.7(a)(ii) above, all of the Shares held by Investor.

(e)The Transferring Shareholder will have 30 days after all conditions to the closing of the Transfer of the Shares to be sold pursuant to the Tag-Along Transaction and the Shares of the Other Shareholders that it is bound to Transfer following delivery of an Exercise Notice have been satisfied or waived (the “Tag-Along Period”) in which to consummate the Transfer of such Shares at the price and on the terms contained in such notice; provided, however, that the amount and nature of the consideration payable for the Shares contained in such notice may only be materially modified during the Tag-Along Period to the extent mutually agreed in writing by the Transferring Shareholder and the Other Shareholders. If, at the end of the Tag-Along Period, the Transferring Shareholder has not completed such Transfer (for any reason other than the failure of the Other Shareholders to perform their obligations under this Section 2.7), such Other Shareholders shall cease to be bound to sell their Shares pursuant to the Tag-Along Offer; provided that the Transferring Shareholder may serve another Tag-Along Notice in respect of such proposed Transfer and shall be free to consummate such Transfer subject to complying again with the provisions of this Section 2.7. Notwithstanding anything in this Agreement to the contrary, all Shareholders will participate in all escrow arrangements, promissory notes, holdbacks, reserves or escrows agreed to by the Transferring Shareholder, contingent payments, working capital adjustments and any other similar arrangements ratably on the basis of their respective percentage holding of shares and will be entitled to receive its portion, in accordance with the economic entitlement of the Shares held by such Shareholder under Articles, of such sums from any such escrow arrangements, promissory notes, holdbacks, reserves or escrows, contingent payments, working capital adjustments and other similar arrangements if and when the Transferring Shareholder receives such payments.

(f)If the Other Shareholders have accepted the Tag Along Transaction, the Other Shareholders shall pay their pro rata share (based on the total proceeds allocable to such Other Shareholders from the sale pursuant to this Section 2.7) of the total costs and expenses (including 

attorneys’ fees) incurred by them and by the Transferring Shareholder in connection with the consummation of the transactions described in a Tag-Along Notice and such shares of costs and expenses may be deducted from any amounts otherwise payable to such Other Shareholders in connection with such Transfer.

(g)Notwithstanding anything contained in this Section 2.7, there will be no liability on the part of the Transferring Shareholder to the Other Shareholders if the Transfer of Shares pursuant to this Section 2.7 is not consummated for whatever reason. The determination of whether or not to effect a Transfer of Shares pursuant to this Section 2.7 is in the sole and absolute discretion of the Transferring Shareholder.

(h)If the Other Shareholders fail to close any transaction as to which it they have delivered an Exercise Notice then, without limiting any other rights or obligations of the Parties, such Other Shareholders will no longer have any rights (but will be subject to all limitations and obligations) under this Section 2.7.

(i)The Other Shareholders will effect any Transfer in connection with a Tag-Along Transaction in which they participate, and, if requested by the Proposed Tag-Along Transferee making the Tag-Along Transaction, will enter into agreements with the Proposed Tag-Along Transferee containing terms and conditions relating to the Tag-Along Transaction that are the same as the terms and conditions applicable to the Transferring Shareholder in connection with the Tag-Along Transaction and in accordance with the terms of the proposed transaction as set forth in the Tag-Along Notice.

2.8.    Drag-Along Rights.  (a) If, (i) between the Effective Date and the Second Closing (if any), NII Telecom proposes to Transfer all of the Shares to a third party, or, (ii) from and after the Second Closing (if any) Investor proposes to Transfer Shares to a third party and such Transfer would result in a Change of Control (each of the third parties described in clauses (i) and (ii) above, a “Proposed Drag-Along Transferee” and, such proposal, a “Drag-Along Disposition”), the proposing Shareholder (the “Dragging Shareholder”) will have the right (a “Drag-Along Right”) at any time to require each Other Shareholder to participate in such Drag-Along Disposition with such Proposed Drag-Along Transferee by selling the same proportion of such other Shareholder’s Shares as is equal to the proportion of the Dragging Shareholder’s Shares being sold under the Drag-Along Disposition on the same terms and conditions and in the same ratio as are set forth in the written notice provided to the Other Shareholders given not less than 30 days prior to the closing of the transactions contemplated by the proposed Drag-Along Disposition in accordance with Section 2.8(b) (the “Drag-Along Notice”); provided, that where the Dragging Shareholder is NII Telecom, NII Telecom shall only be entitled to exercise its Drag-Along Right either: (i) where Investor achieves the Investor Drag Threshold pursuant to the Drag-Along Disposition; or (ii) where the condition in (i) is not met, if NII Telecom pays to Investor, at the same time as the transfer of the Shares by Investor under the terms of set out in this Section 2.8, an amount in immediately available cash or, if applicable, such Marketable Securities received by NII Telecom pursuant to the Drag-Along Disposition (in the same proportion as received by NII Telecom) equal to the difference between (i) the amount required to satisfy the Investor Drag Threshold and (ii) the consideration received by Investor for the transfer of their Shares on the terms of set out in this Section 2.8. Each Shareholder transferring Shares pursuant to this Section 2.8 will pay its pro rata share (based on the total proceeds allocable to such Shareholder from the sale pursuant to this Section 2.8) of the costs and expenses (including attorneys’ fees) incurred by the Dragging Shareholder and the 

Company in connection with such Drag-Along Disposition. The consideration payable to the Other Shareholders pursuant to any Proposed Drag-Along Disposition shall only take the form of cash or Marketable Securities. If the consideration payable to the Dragging Shareholder takes the form of cash and/or Marketable Securities, such Dragging Shareholder may at its option elect that the Other Shareholders transferring their Shares in the Drag-Along Disposition shall receive cash in lieu of such Marketable Securities.

(b)The Drag-Along Notice will set forth: (i) the name and address of the Proposed Drag-Along Transferee, (ii) the proposed terms and conditions of the Drag-Along Disposition, and (iii) the allocation of the proposed purchase price as among the Shareholders with respect to each of their holdings of Shares, such price being calculated in accordance with Section 8.2 of the Articles, it being understood and agreed that such proposed purchase price and proposed terms and conditions may change in the course of negotiations and the Dragging Shareholder will use reasonable efforts to keep the Other Shareholders apprised of any such changes.

(c)The Other Shareholders will cooperate in effecting any Drag-Along Disposition in which any of them participates, and, if requested by the Proposed Drag-Along Transferee, will enter into agreements with the Proposed Drag-Along Transferee containing terms and conditions relating to the Drag-Along Disposition that are the same as the terms and conditions applicable to the Dragging Shareholder in connection with the Drag-Along Disposition; provided, however, that the representations and indemnification obligations of each such Other Shareholder in any such agreements will be limited to due authorization, execution and delivery of any agreement entered into in connection with such Drag-Along Disposition, its authority to enter into such agreement and consummate the transactions contemplated thereby without the consent or approval of any other Person, such Other Shareholder’s title to its Shares and its ability to convey title thereto free and clear of any liens, encumbrances or adverse claims (other than those arising by virtue of this Agreement). Notwithstanding anything in this Agreement to the contrary, all Shareholders will participate in all escrow arrangements, promissory notes, holdbacks, reserves or escrows agreed to by Investor, contingent payments, working capital adjustments and any other similar arrangements ratably on the basis of their respective percentage holding of shares and will be entitled to receive its portion, in accordance with the Articles, of such sums from any such escrow arrangements, promissory notes, holdbacks, reserves or escrows, contingent payments, working capital adjustments and other similar arrangements if and when Investor receives such payments.

(d)The Dragging Shareholder will notify the Other Shareholders of the date set for consummation of the Transfers of the Shares to the Proposed Drag-Along Transferee pursuant to this Section 2.8 (the “Drag-Along Closing Date”) as soon as reasonable practicable after such date becoming set and in any event not less than 20 Business Days before such date. On the Drag-Along Closing Date, in addition to any other terms of Transfer as provided in the Drag-Along Notice, the Dragging Shareholder and each Other Shareholder will deliver to the Proposed Drag-Along Transferee (i) documentation representing the Transfer of the Shares which, upon delivery to the Proposed Drag-Along Transferee, will vest in the Proposed Drag-Along Transferee good and valid title to the Shares to be Transferred, free and clear of all liens (other than those arising by virtue of this Agreement) and (ii) duly executed instrument of assignment, against delivery by the Proposed Drag-Along Transferee of all of the consideration, net of all expenses allocated pro rata amongst the Shareholders, to be received by each such Shareholder, as provided in the Drag-Along Notice. Upon notice of the consummation of the Transfers to the Proposed Drag-Along Transferee, the Company will also cause such Transfers to be reflected on the books of the Company.

2.9.    Provisions Applicable to Tag-Along/Drag-Along Rights.  The provisions of Sections  2.7 and  2.8 will apply to any Transfer for value to any Proposed Tag-Along Transferee or Proposed Drag-Along Transferee (as applicable), including by way of merger, consolidation, recapitalization or other sale transaction.

2.10.    Improper Transfer.  (a) Any attempt to Transfer any Shares not in compliance with this Agreement will be null and void and of no force or effect and neither the Company nor any transfer agent of the Company will register, or otherwise recognize in the Company’s records, any such improper Transfer.

(b)    No Shareholder will enter into any transaction or series of transactions for the purpose or with the effect of, directly or indirectly, denying or impairing the rights or obligations of any Person under this Article  II, and any such transaction will be null and void and, to the extent that such transaction requires any action by an Company, it will not be registered or otherwise recognized in the Company’s records or otherwise.

2.11.    Certain Participation Rights.  (a) Except for an issuance of New Securities to Investor or its Affiliates in connection with an Emergency Funding Situation, the Company will not issue any New Securities without offering by notice given to all Shareholders concurrently with such issuance, the right to purchase such Shareholder’s pro rata share of such New Securities on the same terms as such New Securities are to be issued. Any Shareholder that does not, within 15 days after receiving any notice referred to in the preceding sentence, irrevocably agree to purchase in full such Shareholder’s share of the New Securities referenced in such notice will be deemed to have irrevocably waived any and all rights under this Section 2.11 to purchase such New Securities. The procedures for the acceptance of any such offer and the closing of any such issuance will be determined by the Board. For purposes of this Section 2.11, a Shareholder’s pro rata share of New Securities is the ratio of (a) the sum of the total number of Shares owned by such Shareholder immediately prior to the issuance of the New Securities (assuming full conversion of all outstanding Preferred Shares, and the exercise of all outstanding rights, options and warrants to purchase Shares, held by such Shareholder), to (b) the total number of Shares issued and outstanding immediately prior to the issuance of the New Securities (assuming full conversion of all outstanding Preferred Shares, and the exercise of all outstanding rights, options and warrants to purchase Shares, held by all Shareholders). In the event that any Shareholder does not elect to purchase its allotment of the New Securities in full, then each other Shareholder who has elected to purchase a number of New Securities in excess of its allotment will have the right to purchase those New Securities which such Shareholder elected not to purchase, which such unsubscribed shares will be allocated among all overallotment offerees pro rata (up to the number of New Securities specified in such offeree’s notice) based on the number of Securities held by such overallotment offerees immediately prior to receipt of such written notice from the Company; provided, however, that no such offeree will be required to purchase more than the number of New Securities specified in its election notice.

(b)Where there has been an issuance of New Securities in connection with an Emergency Funding Situation, a Shareholder who has not been issued its pro rata share of New Securities concurrently with such issuance of New Securities may within 60 days of such issue (of which the Company will provide to each such Shareholder at the time of issuance) elect to purchase in full such Shareholder’s pro rata share of the New Securities from the other Shareholders to whom they were issued rather than directly from the Company. A purchase pursuant to this Section  

2.11(b) will be on the same terms as the issuance of the New Securities pursuant to the Emergency Funding Situation.

2.12.    Fair Market Value.  (a) The “Fair Market Value” of the Call Right Shares, the AINMT Put Right Shares, the Investor Tagged Shares or the Convertible Shares will be determined in accordance with this Section 2.12.

(b)Each of (i) Investor and (ii) NII Telecom shall appoint a reputable international investment bank as Valuer to establish Fair Market Value as at the date of certification of Fair Market Value by that Valuer.

(c)If within 30 days following service of the exercise of the Call Right, Put Right or Conversion Right (as applicable), either of Investor and/or NII Telecom fails to appoint a Valuer, the Company shall be entitled to appoint a Valuer on such defaulting Shareholder’s behalf.

(d)Each of Investor and NII Telecom shall instruct their Valuer to deliver to such instructing Shareholder and the Company at the same time and as soon as reasonably practicable, and in any event within 30 days of its appointment, its written valuation report setting its bona fide determination of Fair Market Value in dollars (each a “Valuation”), calculated in accordance with Section 8.2 of the Articles.

(e)If the higher of the two Valuations (the “High FMV”) is not more than 110% of the lower of the two Valuations (the “Low FMV”), then the Fair Market Value shall be equal to the sum of such Valuations divided by two.

(f)If the High FMV is more than 110% of the Low FMV, then the two Valuers shall jointly nominate a third valuer who shall be a reputable international investment bank (the “Ultimate Valuer”) to be appointed by the Company to determine Fair Market Value in dollars as at the date of certification of Fair Market Value by that Ultimate Valuer. The Company shall instruct the Ultimate Valuer to deliver to the Company as soon as reasonably practicable, and in any event within 30 days of its appointment, its written valuation report setting out its bona fide determination of Fair Market Value in dollars (the “Ultimate Valuation”).

(g)The Ultimate Valuation will be final and binding on the Company and the Shareholders if it is greater than or equal to the Low FMV and less than or equal to the High FMV.

(h)If the Ultimate Valuation is

(i)greater than the High FMV, then Fair Market Value shall be the High FMV; or

(ii)lower than the Low FMV, then Fair Market Value shall be the Low FMV,
and, each in case, the final determination of Fair Market Value will be final and binding on the Company and the Shareholders.

(i)The fees and expenses of the Valuers and, if applicable, the Ultimate Valuer will be borne by the Company and taken into account by a Valuer when producing its valuation. The Shareholders shall each provide such documents and information to the Valuers and, if 

applicable, the Ultimate Valuer as are in their possession or control as the Valuer and/or, if applicable, the Ultimate Valuer may reasonably request from time to time.

(j)Any determination of Fair Market Value by a Valuer and, if applicable, the Ultimate Valuer, shall:

(i)be based only on facts and circumstances existing at the date of the valuation on the basis of an arm’s length bona fide sale between a willing buyer and a willing seller for the whole of the issued share capital of the Company;

(ii)value the AINMT Put Right Shares (or Call Right Shares, Investor Tagged Shares or Convertible Shares as the case may be) in accordance with the provisions set out in the Articles, without any premium or discount being attributed to the percentage of the issued share capital of the company which they represent or any restrictions on transfer on the AINMT Put Right Shares, the Call Right Shares, Investor Tagged Shares or the Convertible Shares, as the case may be;

(iii)take into account the then current business plan of the Group and the actual financial results of the Group; and

(iv)apply such other criteria as a Valuer or the Ultimate Valuer may, acting reasonably, consider appropriate.

(k)A Valuer and, if applicable, the Ultimate Valuer, shall act as an expert and not as an arbitrator. Investor and NII Telecom may make representations to the Ultimate Valuer in respect of the determination of Fair Market Value.

2.13.    NII Telecom Existence.  NII Telecom undertakes to remain a société en commandite par actions and not to make any direct Transfer of any Shares to a Permitted Transferee that would reasonably be expected to cause the Company to (i) be required to register any Shares pursuant to Section 12(g), or be subject to any reporting requirements pursuant to, Sections 13, 14 or 15(d), in each case, of the Exchange Act, or (ii) cause the Company to become subject to the registration requirements of the U.S. Investment Company Act of 1940, as amended from time to time.

III.        BOARD OF MANAGERS

3.1    Powers and Duties of the Board.  The Board will be responsible for the overall management of the Company in accordance with this Agreement.

3.2.    Composition of the Board.  (a) Subject to this Article  III, each Party will take all action within its respective power, including the voting of its Shares or execution of consents, required to establish the number of Managers on the Board at five and to cause the election of the following natural Persons to the Board Managers who have been nominated by this Section  3.2(a). At least one of the Managers to be appointed by each of NII Telecom and Investor, subject to (i) and (ii) below, will meet the residency requirements under applicable Law to qualify as a Luxembourg manager.  

(i)As of the Effective Date and until the Second Closing (if any), (A) Investor will be entitled to nominate two Managers and one observer to the Board (provided that if Investor’s Applicable Ownership Percentage is (y) less than 30%, Investor is only entitled to nominate one Manager and one observer to the Board; or (z) less than 20%, Investor will only be entitled to nominate an observer to the Board) (any Manager appointed by Investor under Section  3.2 being an “Investor Manager”) and (B) NII Telecom will be entitled to nominate the other three Managers (or four or five, as applicable) (any Manager appointed by NII Telecom under Section  3.2 being an “NII Manager”), one of whom shall be designated as the chairman of the Board. 
 
(ii)From and after the Second Closing (if any): 

(A)Investor will have the right to nominate three Managers (plus one or two further Managers respectively if NII Telecom is only entitled to appoint one Manager or is not entitled to appoint any Manager pursuant to the terms hereof), one of whom shall be designated as the chairman of the Board, and on Second Closing one NII Manager shall be promptly removed from the Board by a resolution of the Shareholders.  

(B)For as long as NII Telecom (together with its Permitted Transferees) maintains an Applicable Ownership Percentage of at least: (1) 30%, it will have the right to nominate two Managers; and (2) 20% but less than 30%, it will have the right to nominate one Manager.  

(C)If NII Telecom’s (together with its Permitted Transferees) Applicable Ownership Percentage is less than 20%, it will only be entitled to appoint an observer to the Board and any remaining NII Manager shall be promptly removed from the Board by a resolution of the Shareholders.

(iii)The individuals nominated as of the Effective Date by Investor to be Investor Managers and by NII Telecom to be its Managers are set forth on Exhibit B.

(iv)Any Investor Manager or NII Manager shall, at their election, either (A) be appointed to or (B) be entitled to appoint another Person for appointment to the board of directors (or equivalent body) of any of the Company’s Subsidiaries.

(b)The Company and the Shareholders will take all reasonably required actions within their control, in order to elect and maintain a five-Person Board in accordance with the terms of this Agreement.

(c)If a Shareholder loses the right to nominate one or more Managers under this Section  3.2 due to its failure to maintain its required Applicable Ownership Percentage, the other Managers will nominate a replacement for such Manager(s) (and such nomination shall be approved and appointed by the Shareholders).

(d)Each Shareholder entitled to vote for the election of Managers agrees that it will vote, or cause to be voted, its Shares or execute written consents, as the case may be, and take all other necessary action (including causing the Company to call a special meeting of Shareholders) in order to ensure that the composition of the Board is as set forth in this Agreement and the Articles and the nominations set out herein are effected.

(e)Subject to compliance with applicable Law, Investor and NII Telecom shall be permitted to appoint by notice in writing such other Persons as they sees fit as observers (limited to one observer if such Shareholder only has the right under this Agreement to appoint one or two Managers), who shall be entitled to attend and speak (but not vote) at any meeting of the Board and to receive notice of all such meetings and all board materials provided to the Managers at the same time as the Managers. Such observers shall owe the same duty of confidentiality to the Company as the Managers.

3.3.    Term and Removal.  Unless otherwise removed in accordance with this Section 3.3 or in the case of a resignation, the members of the Board will hold office until their respective successors have been duly appointed. Subject to the terms of Section 3.2 and this Section 3.3, each Manager may be removed (with or without cause) by a resolution of the Shareholders upon request of the Shareholder that appointed the respective Manager. The Shareholder that appointed the Manager must deliver a notice to the Company and the other Shareholders stating the name of the Manager to be removed from the Board. If a Manager ceases to be qualified under the Articles or applicable Law to act as a Manager of the Company, then the Shareholder that appointed such Manager will immediately procure the resignation of that Manager and nominate a new Manager in accordance with Section 3.2. Each Shareholder will notify the Company and the other Shareholders in writing of its nomination of any individual to serve as a Manager (other than those individuals nominated on Exhibit B as of the Effective Date, notice of which is hereby acknowledged by each Shareholder) or the removal of an individual as a Manager, or if it intends not to nominate an individual to fill a designated Manager position. 

3.4.    Vacancies.  If, as a result of death, disability, retirement, resignation, removal (with or without cause), including as a result of a Shareholder losing the right to nominate one or more Managers under Section 3.2 due to its failure to maintain its required Applicable Ownership Percentage, or otherwise, there will exist or occur any vacancy on the Board:

(a)Subject to Section 3.2(c), the Shareholder entitled under this Agreement and the Articles to designate or nominate such Manager whose death, disability, retirement, resignation or removal resulted in such vacancy may designate another individual (the “Nominee”) to fill such vacancy and serve as a Manager; and

(b)Each Shareholder then entitled to vote for the election of the Nominee as a Manager of the Company agrees that it will vote its Shares, or execute a written consent, as the case may be, in order to ensure that the Nominee is elected to the Board.

3.5.    Action by the Board of Managers.  A quorum of the Board will consist of at least a majority of the Board members, including (a) prior to the Second Closing (if any), two NII Managers and one Investor Manager and (b) after the Second Closing (if any) two Investor Managers and one NII Manager; provided, that if, pursuant to Section 3.2, Investor does not have a right to nominate any Investor Managers or NII does not have a right to nominate any NII Managers, a quorum will only consist of at least a majority of the Board members. If a quorum is not present within one hour of the time appointed for the meeting or if quorum ceases to be present during the course of the meeting, any Manager appointed by a Shareholder with an Applicable Ownership Percentage greater than 50% may call and give notice of the adjourned meeting. The quorum at such adjourned meeting shall be a majority of the Board, including one Manager appointed by the Shareholder referenced in the preceding sentence. For the avoidance of doubt, the adjourned meeting may be held by video conference, telephone and other electronic conferencing means. Except as otherwise 

provided in this Agreement, all actions of the Board will require (i) the approval of at least a majority of the votes cast at a meeting of the Board duly noticed and convened in accordance with applicable Law and otherwise in accordance with the terms of this Agreement (or at which any notice and convening formalities have been duly waived) and at which a quorum is present or (ii) the unanimous written consent of the Board.

3.6.    Meetings of the Board.

(a)Frequency; Place.  The Board will decide how often the Board holds meetings; provided that (i) Board meetings are held at least four times per calendar year, and (ii) at least two Board meetings per calendar year are held in person in Luxembourg. Any Manager may convene a Board meeting by giving notice in accordance with Section 3.6(b) (the “Board Meeting Notice”). Unless otherwise agreed to by the Board, the meetings will take place at the location specified in the Board Meeting Notice. Subject to the first sentence of this Section 3.6(a), meetings may be held by video conference, telephone and other electronic conferencing means subject to any requirements imposed by Law.

(b)Board Meeting Notice; Agenda.  Unless expressly waived by the Managers, each of the Managers will be given Board Meeting Notice 10 Business Days prior to all meetings of the Board including any adjournments thereof. Unless expressly waived by the Managers, at least three Business Days prior to a meeting, a reasonably detailed meeting agenda will be sent to each of the Managers by email, courier or facsimile, which will be accompanied by any relevant papers.

(c)Voting.  Except as set forth in this Agreement, any action, consent, approval, election, decision or determination to be made by the Board under or in connection with this Agreement will be in the sole and absolute discretion of a simple majority of the members of a valid quorum of the Board. The Investor Managers attending a meeting of the Board shall each be granted a proxy to vote by each of the non-attending Investor Managers that Investor is entitled to appoint and the NII Managers shall each be granted a proxy to vote by each of the non-attending NII Managers that NII Telecom is entitled to appoint. The chairman of the Board shall not have a second, or casting, vote.

(d)Written Consents.  Notwithstanding the foregoing, any action required or permitted to be taken at any meeting of the Board may be taken without a meeting, if a consent or consents in writing, setting forth the action to be taken, will be signed by all Managers.

3.7.    Compensation and Reimbursement; Insurance.

(a)The Company will pay the reasonable, documented out-of-pocket expenses incurred by the members of the Board in connection with attending the meetings of the Board and any committees thereof. The Shareholders will determine at a general meeting any compensation to be paid to Managers in respect of their service as Managers.

(b)The Company will maintain directors’ and officers’ liability insurance for the benefit of the Managers; provided that such insurance is available on reasonable terms.

3.8.    Limitation on Liability; Indemnification; General.

(a)The Articles will provide for indemnification and exculpation of Managers to the fullest extent permitted under applicable Law. The Company will enter into customary indemnification agreements with each Manager on substantially the same terms as each other Manager. In addition to any other indemnity provided herein or otherwise, to the maximum extent permitted by applicable Law, the Company will indemnify against judgments, fines, amounts paid in settlement, costs, damages and expenses (including attorney’s fees) actually and reasonably incurred by each Manager (i) who was or is nominated by the Shareholders and (ii) is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative (including an action or suit by or in the right of the Company to procure a judgment in its favor), which is (A) threatened or brought by a Person who or which is not signatory to this Agreement or an Affiliate thereof, and (B) based upon such Manager’s acts or omissions taken in furtherance of the terms of this Agreement, providing such acts or omissions were made in good faith (a “Proceeding”).

(b)Any indemnification made under the Articles will include the right to be paid by the Company the expenses (including, without limitation, attorney’s fees and expense) incurred in defending any Proceeding in advance of its final disposition.

3.9.    Board committees.  The Board shall constitute an operational committee, a remuneration committee and an audit committee, on terms of reference and consisting of such Managers determined by the Board from time to time, as soon as reasonably practicable after the Effective Date. Each committee shall consist of, as a minimum, any Managers appointed by any Shareholders pursuant to Section  3.2 (but Investor may elect to exclude any Luxembourg resident director appointed by Investor and NII Telecom may elect to exclude any Luxembourg resident director appointed by NII Telecom), and the chairman of such committee shall be appointed by the Board from time to time, and shall be entitled to appoint any executives of the Group to participate as non-voting observers to the meetings of such committee. The operational committee shall be held at least once per month from the Effective Date until the first anniversary thereof, and at least four times per calendar year thereafter.

3.10.     Meetings of Shareholders.  (a) General meetings of the Shareholders of the Company will be held in Luxembourg at least twice per calendar year and will be in accordance with the applicable provisions of the Articles and the Law, including the following provisions subject herewith to the relevant provisions of Law:

(b)The notice of meeting will (1) be sent to all Shareholders at least 10 days prior and (2) set out an agenda identifying in reasonable detail the matters to be discussed;

(c)The quorum will consist of at least one duly authorized representative of Investor and of NII Telecom; provided that if at a duly called meeting, a duly authorized representative of both of the Shareholders is not present, then such meeting will be adjourned for at least 10 Business Days and each Shareholder will be notified of the date and place of the re-called meeting at least three days in advance of such meeting and the quorum shall be one Shareholder;

(d)Other than the two required in-person meetings in Luxembourg each calendar year, meetings may be held by video conference, telephone and other electronic conferencing 

means and the Persons convening the meeting will use commercially reasonable efforts to ensure they are held at locations reasonably convenient for all Shareholders;

(e)If quorum is not met for two consecutive duly called meetings of the Shareholders, the Shareholders in attendance which will represent at least a majority of the outstanding Capital Stock of the Company will constitute a quorum for purposes of the next subsequent meeting;

(f)Special meetings of the Shareholders of the Company may be called by the Board and any Shareholder with an Applicable Ownership Percentage of at least 10% may request the Board to call a special meeting; and

(g)Notwithstanding the foregoing, any action required or permitted to be taken at any Shareholders’ meeting may be taken without a meeting, if a consent or consents in writing, setting forth the action to be taken, will be signed by or on behalf of Shareholders holding sufficient votes to be able to approve such action at a Shareholders’ meeting.

3.11.    Conflicting Provisions in Governing Documents.  Each Shareholder will vote such Shareholder’s Shares or execute written consents, as the case may be, and take all other actions necessary or appropriate, to ensure that the Articles (a) contain the provisions of this Article  III that are required by applicable Law to be contained in the Articles in order for such provisions to be operable and enforceable and (b) facilitate and do not at any time conflict with any provision of this Agreement. In addition, the Company will vote all of the Company’s securities or execute written consents, as the case may be, and take all other actions necessary or appropriate, to ensure that the Articles (and/or other governing corporate documents) of each Subsidiary of the Company (i) contain the provisions of this Article  III that are required by applicable Law to be contained in such documents in order for such provisions to be operable and enforceable and (ii) facilitate and do not at any time conflict with this Agreement.

3.12.    Shareholder Access.  The Shareholders will be entitled to receive from each Group Member, as promptly as practicable after request therefor, information distributed or otherwise made available to the Board or any committee thereof at any regular or special meeting thereof together with any other Group information relating thereto. The Company will, and will cause its Subsidiaries to, permit the Shareholders, at their respective expense, to visit and inspect the Group Members’ properties, to examine its books of account and records and to discuss the Group Members’ affairs, finances and accounts with its/their officers and other employees and the Company Accountants, all at such reasonable times (but during normal business hours) as any of them may request.

3.13.    Confidentiality.  (a) Any Shareholder receiving Confidential Information related to any Group Member agrees to keep such Confidential Information confidential and will not disclose such Confidential Information to any third party without the prior written consent of the Company; provided, however, that nothing in this Agreement will prevent such Shareholder from disclosing the Confidential Information: (i) as required by Law or other legal process or the rules of any applicable stock exchange or regulator; (ii) as required to implement the AINMT AS IPO and any ongoing obligations arising therefrom; (iii) as required to implement any sale of any Shares permitted by this Agreement or all or substantially all of the assets of the Group; or (iv) to its Affiliates and its Affiliates’ limited partners or stockholders, representatives (including attorneys and accountants), agents and Affiliates or to any Participant or any Permitted Transferee of such Shareholder; 

provided, further, in the case of (iii) and (iv), that the recipient of such Confidential Information is bound by obligations of confidentiality satisfactory to the disclosing Shareholder.

(b)     Any Manager appointed by a Shareholder may disclose any information received by it to his appointing Shareholder and to any Person to whom such Shareholder is permitted to disclose Confidential Information pursuant to Section  3.13(a).

IV.    CERTAIN ARRANGEMENTS

4.1.    Effectiveness of Certain Minority Rights.  The rights in this Agreement available to Investor under Sections 3.2(a)(i) and 4.6 shall only become effective or exercisable by Investor upon receipt of the Regulatory Approval pursuant to the Investment Agreement.

4.12.    Additional Investment Requirements.  (a) The Company, and the Board, shall have regard to the ongoing spending and funding needs of the Group, including considering available cash, the anticipated funding needs of the business and the ongoing obligations of the Group, and shall at all times run the business as a going concern so as to meet the Group's debts as they fall due.  

(b)From and after the Effective Date, if NII Telecom does not make the contributions or payments required of it under Article II of the Investment Agreement or if the Board determines (acting reasonably) that the investments or contributions contemplated in Article II of the Investment Agreement are not sufficient to fund the Company’s agreed and duly approved budget plan or not sufficient to maintain the business as a going concern so as to meet the Group's debts as they fall due, the Parties agree that the Company will, and Investor and NII Telecom will cause the Company to:

(i)use its commercially reasonable efforts to raise financing through third-party debt subject to the terms of this Agreement, as expeditiously as possible; and

(ii)inform the Shareholders immediately upon becoming aware, and in any event within five (5) days, of such circumstances, consult with the Shareholders in relation to potential funding options in relation to remedying such funding shortfall and keep the Shareholders promptly informed of any developments in connection with raising financing through third-party debt.

(c)If the Company is not able to obtain financing through third-party debt within ten (10) Business Days of informing the Shareholders pursuant to Section 4.2(b)(ii) above, the Board will resolve, as expeditiously as possible, to raise financing via such other means as the Board may approve (acting reasonably), including by the issue of shares or shareholder debt in accordance with the terms of this Agreement, unless compliance with this Section 4.2(c) would be in breach of the Board’s fiduciary duties; provided that no Shareholder shall be under any obligation to provide any such financing.

4.3.    Financial Information of the Company.  The Company will furnish to Shareholders:

(a)promptly when available and in any event within 15 days after the end of each month the balance sheet of the Company (and its consolidated Subsidiaries) as of the end of such month, together with statements of earnings and cash flows for such month and for the period 

beginning with the first day of such fiscal year and ending on the last day of such month, together with a comparison with the corresponding period of the previous fiscal year and a comparison with the budget for such period of the current fiscal year, certified by the president, the chief executive officer or the chief financial officer of the Company. The balance sheet, together with statements of earnings and cash flows will be prepared in accordance with IFRS and will include a reconciliation to a separate balance sheet, together with statements of earnings and cash flows prepared in accordance with U.S. GAAP;

(b)promptly when available and in any event within 75 days after the close of each fiscal year of the Company, (i) a copy of the annual audit report of the Company (and its consolidated Subsidiaries) for such fiscal year, such audit having been performed in accordance with the standards of the PCAOB, including the balance sheets and statements of earnings and cash flows of the Company (and its consolidated Subsidiaries) as at the end of such fiscal year, prepared in accordance with IFRS and including a reconciliation to a separate balance sheet, together with statements of earnings and cash flows prepared in accordance with U.S. GAAP, certified without qualification (except for qualifications relating to changes in accounting principles or practices reflecting changes in generally accepted accounting principles and required or approved by the Company Accountants) by the Company Accountants and (ii) a comparison with the budget for such fiscal year and a comparison with the previous fiscal year;

(c)promptly when available and in any event within 120 days after the close of each fiscal year of the Company, (i) a copy of the annual audit report of the Company (and its consolidated Subsidiaries) for such fiscal year, such audit having been performed in accordance with the standards of the PCAOB, including all financial statements of the Company (and its consolidated Subsidiaries) and notes to the financial statements, as at the end of such fiscal year, prepared in accordance with IFRS, certified without qualification by the Company Accountants (except for qualifications relating to changes in accounting principles or practices reflecting changes in generally accepting accounting principles and required or approved by the Company Accountants);

(d)promptly when available and in any event within 15 days from the end of each month, a statement of shareholders’ equity for such month, including a description of all changes to all equity accounts in such month;

(e)as promptly as practicable (but in any event not later than five Business Days) after receipt thereof, copies of all management reports submitted to the any Group Member by the Company Accountants;

(f)as promptly as practicable, copies of all information provided to third-party lenders (but in any event not later than five Business Days after such information is provided to such lenders);

(g)as soon as practicable, and in any event not later than 15 days prior to the end of the prior fiscal year of the Company, an annual budget and financial projections for the Company for such fiscal year (on a monthly basis and including monthly operating and cash flow budgets), prepared in good faith and on reasonable assumptions contained in such projections (the “Annual Budget”);

(h)as soon as practicable, and in any event at least three Business Days in advance of any anticipated filings, copies of any filings with the Commission;

(i)as soon as practicable, and in any event not later than five days prior to the end of the fiscal year of the Company, all relevant information required to comply with all U.S. tax reporting requirements; 

(j)such other material information of the Company as may be reasonably requested; and

(k)such information as Investor reasonably requests relating to the Company or any Group Member to allow Investor or its Affiliates to comply with any applicable rules in connection with any securities of Investor or its Affiliates being listed or admitted to trade, or potentially listed or admitted to trade, on any exchange (including any preparations in connection therewith, any ongoing obligations, relating to historic financial and other information of a Group Member, or any change of exchange on which securities are admitted to trade).

4.4.    Financial Information of Subsidiaries.  The Company will cause each of its Subsidiaries to furnish to holders of Preferred Shares and Ordinary Shares the same information specified in Section 4.3 above with respect to each such Subsidiary to the extent not included in the information provided by the Company pursuant to Section 4.3.

4.5.    Actions Requiring NII Telecom’s Approval.  In addition to requiring the approval of the Board, the following actions involving the Company will require the written approval of both NII Telecom and Investor from and after the Second Closing (if any) (and to the extent any such provision below applies to any of the Company’s Subsidiaries, the Company will ensure that no such action is taken by any such Subsidiary without such approval) other than Sections 4.5(o) to 4.5(s) below which shall cease to apply following an NII Change of Control or a Change in Control of any Group Member; provided, however, that if NII Telecom’s Applicable Ownership Percentage is less than 20%, only Sections 4.5(c), 4.5(m) and 4.5(n) and, to the extent such action has a material disproportionate adverse economic effect on NII Telecom relative to the economic effect on Investor, Sections 4.5(a), 4.5(b) and 4.5(f) shall require the prior written approval of NII Telecom:

(a)enter into any share split, share or other in-kind dividend, redemption, reclassification, or reorganization transaction which could have a material adverse effect on NII Telecom;

(b)amend, alter or repeal any provision of any constitutional/organizational document of the Company except in connection with an issue of New Securities;

(c)enter into any or amend the terms of any existing related party transactions between any Group Member, on the one hand, and Investor or any of Investor’s Affiliates (excluding any Group Member), on the other hand;

(d)materially change the nature of, or cease to carry on, the business of the Group;

(e)adopt or change any equity compensation plan (including, but not limited to, obligations to issue options, restricted shares and other equity compensation-related securities) of 

any Group Member to the extent it would result in an issuance of Shares (or any security or option convertible into Shares) which would dilute NII Telecom’s holding of Shares;

(f)change a material tax or accounting policy of any Group Member, other than amendments to accounting policies of such Group Member to the extent that the changes to the policy are the result, and are meant to make the policy consistent with, the changes to applicable Law or the then current generally accepted accounting principles applicable in the jurisdiction of the Company or the applicable Subsidiary;

(g)terminate or change the independent auditor of the Company to the extent that the replacement auditor is not a nationally or internationally recognized accounting firm;

(h)issue New Securities other than where NII Telecom has pre-emption rights as contemplated by this Agreement;

(i)voluntary or involuntary liquidation, dissolution or bankruptcy of any Group Member other than as part of a corporate reorganization of the Group pursuant to which all or substantially all the assets of the Group continue to be owned by the Group;

(j)change the number of Managers appointed to the Board other than as contemplated by this Agreement; 

(k)the appointment of any Group Chief Executive Officer of the Company and its Subsidiaries, save that if Investor has proposed one person of sufficient experience, qualifications and standing (in the reasonable opinion of Investor) as Group Chief Executive Officer who was not accepted by NII Telecom then Investor shall be entitled to appoint any person as Group Chief Executive Officer by written notice to the Company;

(l)the appointment of any Chief Financial Officer of Opco and its Subsidiaries, save that if Investor has proposed one person of sufficient experience, qualifications and standing (in the reasonable opinion of Investor) as Chief Financial Officer of Opco and its Subsidiaries who was not accepted by NII Telecom then Investor shall be entitled to appoint any person as Chief Financial Officer of Opco and its Subsidiaries by written notice to the Company; 

(m)any capitalization or other use of any amounts standing to the credit of the 115 account or the share premium account of the Company, except as otherwise provided in the Investment Agreement; 

(n)any change to the Corporate Reorganization contemplated by the Investment Agreement (including unwinding any such actions or transactions);

(o)acquire or purchase Capital Stock or assets of any Person or the acquisition by any other means of any material business, properties, assets, or Persons in any transaction or series of related transactions that requires any payment, individually or in the aggregate, in excess of $25,000,000 (but in any event excluding any capital expenditure of the Group or any acquisition of any spectrum as long as the Group has available cash or is able to raise sufficient funding to make such expenditure or acquisition);

(p)enter into any material joint ventures or establishing or acquiring any non-wholly owned Subsidiaries in each case requiring an equity investment by the Group exceeding $25,000,000;

(q)incur Indebtedness or encumber the assets of any Group Member which is in excess of $100,000,000 more than the Indebtedness existing on the Second Closing (if any) except for or in connection with (i) Indebtedness existing on the Second Closing (if any), (ii) financing capital expenditures in the ordinary course of business, but that in no event will exceed, in the aggregate, $100,000,000, and (iii) trade credit incurred in the ordinary course of business, but that in no event will exceed, in the aggregate, $100,000,000;

(r)loans by any Group Member to third parties, other than (i) loans entered into in the ordinary course of business not to exceed $50,000,000 individually or in the aggregate or (ii) transactions between or among the Group Members; and

(s)enter into any new material contracts of the Company which will result in revenues or expenditures to the Group of $100,000,000 or more in aggregate, excluding any renewal or extension of any such contract (and excluding any roaming agreements, RAN sharing agreements and any agreements relating to the acquisition of spectrum).

4.6.    Actions Requiring Investor’s Approval.  In addition to requiring the approval of the Board, the following actions involving the Company will require the written approval of both Investor and NII Telecom from the Effective Date until the Second Closing (if any) (and to the extent any such provision below applies to any of the Company’s Subsidiaries, the Company will ensure that no such action is taken by any such Subsidiary without such approval), provided that (A) Sections 4.6(q) to 4.6(u) below shall only apply following an NII Change of Control or a Change in Control of the Company or a Group Member, (B) if Investor does not exercise its right to make the Second Investor Capital Contribution, Sections 4.6 (k), (l) and (n) shall cease to apply other than following an NII Change of Control or a Change in Control of the Company or a Group Member in which case Sections 4.6(a) to 4.6(u) shall apply, (C) if Investor’s Applicable Ownership Percentage is less than 20%, only Sections 4.6(c), 4.6(o) and 4.6(p) and, to the extent such action has a material disproportionate adverse economic effect on Investor relative to the economic effect on NII Telecom, Sections 4.6(a), 4.6(b) and 4.6(f) below shall require the prior written approval of Investor: 

(a)enter into any share split, share or other in-kind dividend, redemption, reclassification, or reorganization transaction which could have a material adverse effect on Investor;

(b)amend, alter or repeal any provision of any constitutional/organizational document of the Company except in connection with an issue of New Securities; 

(c)enter into any or amend the terms of any existing related party transactions between any Group Member, on the one hand, and NII Telecom or any of NII Telecom’s Affiliates, on the other hand;

(d)materially change the nature of, or cease to carry on, the business of the Group;

(e)adopt or change any equity compensation plan (including, but not limited to, obligations to issue options, restricted shares and other equity compensation-related securities) of any Group Member to the extent it would result in an issuance of Shares (or any security or option convertible into Shares) which would dilute Investor’s holding of Shares;

(f)change a material tax or accounting policy of any Group Member, other than amendments to accounting policies of such Group Member to the extent that the changes to the policy are the result, and are meant to make the policy consistent with, the changes to applicable Law or the then current generally accepted accounting principles applicable in the jurisdiction of the Company or the applicable Subsidiary;

(g)terminate or change the independent auditor of the Company to the extent that the replacement auditor is not a nationally or internationally recognized accounting firm;

(h)issue New Securities other than where Investor has pre-emption rights as contemplated by this Agreement;

(i)voluntary or involuntary liquidation, dissolution or bankruptcy of any Group Member other than as part of a corporate reorganization of the Group pursuant to which all or substantially all the assets of the Group continue to be owned by the Group;

(j)change the number of Managers appointed to the Board other than as contemplated by this Agreement; 

(k)the appointment of any Group Chief Executive Officer of the Company and its Subsidiaries, save that if NII Telecom has proposed at least one person of sufficient experience, qualifications and standing (in the reasonable opinion of NII Telecom) as Group Chief Executive Officer and who was not accepted by Investor then NII Telecom shall be entitled to appoint any person as Group Chief Executive Officer by written notice to the Company;

(l)the appointment of any Chief Financial Officer of Opco and its Subsidiaries, save that if NII Telecom has proposed at least one person of sufficient experience, qualifications and standing (in the reasonable opinion of NII Telecom) as Chief Financial Officer of Opco and its Subsidiaries and who was not accepted by Investor then NII Telecom shall be entitled to appoint any person as Chief Financial Officer of Opco and its Subsidiaries by written notice to the Company; 

(m)acquire or dispose of any spectrum or acquire or dispose of or modify the terms of any telecommunications license;  

(n)amend the Business Plan or adopt a business plan for the Group for that forthcoming financial year, or vary the Business Plan, or exceed the capital expenditure provided for in any such Business Plan or business plan by more than 10% in aggregate; 

(o)any capitalization or other use of any amounts standing to the credit of the 115 account or the share premium account of the Company, except as otherwise provided in the Investment Agreement; 

(p)any change to the Corporate Reorganization contemplated by the Investment Agreement (including unwinding any such actions or transactions);

(q)acquire or purchase Capital Stock or assets of any Person or the acquisition by any other means of any material business, properties, assets, or Persons in any transaction or series of related transactions that requires any payment, individually or in the aggregate, in excess of $25,000,000 (but in any event excluding any capital expenditure of the Group or any acquisition of any spectrum as long as the Group has available cash or is able to raise sufficient funding to make such expenditure or acquisition);

(r)enter into any material joint ventures or establishing or acquiring any non-wholly owned Subsidiaries in each case requiring an equity investment by the Group exceeding $25,000,000;

(s)incur Indebtedness or encumber the assets of any Group Member which is in excess of $100,000,000 more than the Indebtedness existing on the Second Closing (if any) except for or in connection with (i) Indebtedness existing on the Second Closing (if any), (ii) financing capital expenditures in the ordinary course of business, but that in no event will exceed, in the aggregate, $100,000,000, and (iii) trade credit incurred in the ordinary course of business, but that in no event will exceed, in the aggregate, $100,000,000;

(t)loans by any Group Member to third parties, other than (i) loans entered into in the ordinary course of business not to exceed $50,000,000 individually or in the aggregate or (ii) transactions between or among the Group Members; and

(u)enter into any new material contracts of the Company which will result in revenues or expenditures to the Group of $100,000,000 or more in aggregate, excluding any renewal or extension of any such contract (and excluding any roaming agreements, RAN sharing agreements and any agreements relating to the acquisition of spectrum).

4.7.    Company Cure Right.  If the Company is in breach of the provisions of Sections 4.5 or 4.6, the Company will be afforded a period of 30 days following it having received notice that it is in breach of Sections 4.5 or 4.6 to cure such breach to the reasonable satisfaction of the applicable Shareholder; provided, however, that if such breach by its nature cannot be cured, the Company will have no such period to cure.

4.8.    Anti-Corruption and Internal Financial Controls

(a)The Company undertakes to establish a corporate compliance program for the Group as soon as reasonably practicable in a form accepted by Investor. The compliance program must include, among other things, anti-bribery and corruption, anti-money laundering, competition Law and whistleblowing policies, a requirement for regular training of employees and signature by designated employees of an annual compliance certificate. Investor and NII Telecom shall each have the right, at its own expense, to audit (using its internal auditors or third-party auditors) compliance by the Group with the compliance program.

(b)The Company covenants that it will not, and will procure that none of the Group Members (together with their officers, directors, employees, consultants, agents or other Persons associated with or acting on behalf of them (together “Group Representatives”)), will:

(i)take any action, directly or indirectly, that would result in a violation of the U.S. Foreign Corrupt Practices Act of 1977 (as amended) or the United Kingdom Bribery Act 2010 together with the rules and regulations thereunder or any other applicable anti-corruption, anti-bribery or analogous Laws promulgated within the U.S., United Kingdom, any European Union Member State or Brazil;

(ii)engage in any business with, make any investments in, or make any payments to:

(A)any Person with which U.S. Persons are prohibited from engaging or doing business with by U.S. Laws, including the economic sanctions administered by the U.S. Office of Foreign Assets Control; or

(B)any Person targeted by any of the economic sanctions of the United Kingdom administered by H.M. Treasury;

(iii)engage in or fund, directly or indirectly, any business with, or for the benefit of, a government, national, resident or legal entity of Cuba, Sudan, Iran, North Korea or Syria,

in each case, in relation to the operations of the Group.

(c)The Company covenants that it and each Group member will conduct all operations and the business of the Group in compliance with all relevant anti-money laundering Laws and regulations and shall institute applicable record-keeping and reporting as requested by such Laws and regulations.

(d)The obligations set out in Section 4.8(c) above include the obligation that no Group member and no Group Representative will:

(i)make any payment or gift of money or any other thing of value, or any offer, promise, or authorization of money or any other thing of value, directly or indirectly, to or for the benefit of:

(A)any official, employee, agent or other representative of a government or any department, agency or organ thereof;

(B)any political party or official thereof;

(C)any candidate for political office; or

(D)any official, employee, agent or other representative of a public international organization;

for the purpose of influencing or inducing any act or decision of such Person or of any government or department, agency or organ thereof, or for the purpose of securing any improper advantage, in connection with obtaining, retaining, or directing business;

(ii)use any of the funds of any Group member for unlawful contributions, gifts, entertainment, or other expenses relating to political activity; or

(iii)establish or maintain any unlawful or unrecorded fund of a Group Member’s money or other assets; or

(iv)make or receive any unlawful bribe, rebate, payoff, influence payment, kickback, or other payment of a similar nature.

(e)The Company covenants that no Group Member will not, and will procure that the Group Representatives will not, engage in any cartel, arrangement, understanding, contract or other course of action which would constitute unlawful anti-competitive behavior or otherwise breach relevant competition Law, in each case in relation to the Group.

(f)If a compliance issue comes to light, including any matter which would constitute a breach of this Section 4.8 by the Group or a Group Representative, Investor shall be entitled to investigate the matter and determine the appropriate action to be taken, including putting in place measures to prevent any similar issues arising in the future and, save where a Party is required to disclose by Law, no disclosure shall be made in relation to such matter without the prior written agreement of Investor, not to be unreasonably withheld.

(g)Investor, NII Telecom and the Company agree that should any of them learn of or have reason to suspect or know of any development that in any way makes inaccurate or incomplete the representations, warranties and undertakings given in this Section 4.8 or in Section 4.19(e) of the Investment Agreement, then that Party will immediately advise the other Parties in writing of such knowledge or suspicion and the basis for it.

(h)From the Effective Date until the Second Closing (if any), NII Telecom and, from the Effective Date, Investor shall have the right to conduct, at its expense, an investigation of the Group (using its internal auditors or third-party auditors) to verify compliance with the provisions of this Section 4.8. The Company will and will cause each Group member to: (i) cooperate fully with such investigation, the scope, method, nature and duration of which shall be at the reasonable discretion of the auditing party; and (ii) use reasonable best efforts to implement any actions or measures recommended by such investigation.

(i)From the Effective Date Investor shall have the right to conduct, at Investor’s sole cost and expense, an investigation of the Group’s internal control over financial reporting (using its internal auditors or third-party auditors). The Company will and will cause each Group member to: (i) cooperate fully with such investigation, the scope, method, nature and duration of which shall be at the reasonable discretion of the auditing party; provided, that Investor shall reimburse the Company for all reasonable, documented out-of-pocket expenses incurred by the Company in connection herewith; and (ii) use reasonable best efforts to implement any actions or measures recommended by such investigation.

4.9.    U.S. Tax

(a)The Company will not (and shall procure that no Group member will), and until the Second Closing NII Telecom will procure that the Company will not (and shall procure that no Group member will), elect, without the prior written consent of (i) from the Effective Date until the 

Second Closing (if any), NII Telecom and (ii) from and after the Effective Date, Investor, to change its entity classification for U.S. tax purposes under the U.S. Internal Revenue Code or the U.S. Treasury Regulations thereunder (whether by becoming a “disregarded entity”, a partnership or a corporation or otherwise). The Company will (and shall procure that each Group Member will), and until the Second Closing NII Telecom will cause the Company to (and shall procure that each Group Member will) cause any newly-formed or acquired non-U.S. Subsidiaries to make “check-the-box” elections under Section 7701 of the Code, unless (A) from the Execution Date until the Second Closing (if any), NII Telecom and (B) from and after the Execution Date, Investor, have previously consented in writing to an alternative election.

(b)The Company shall (and shall procure that each Group Member shall) use commercially reasonable efforts to work with each Shareholder or any of their Affiliates, to enable each Shareholder or any of their Affiliates to timely comply with any U.S. federal income tax reporting obligations, including, but not limited to, any information reporting obligations each Shareholder or any of their Affiliates may have for U.S. or non-U.S. partnership investments and direct or indirect investments in U.S. or non-U.S. corporations, and will provide such information or reports to each Shareholder or its applicable Affiliate no later than May 31 of the following year, in the case of information or reports which can be obtained or assembled without unreasonable effort or expense at the expense of the Group, as relevant, or otherwise at the cost of each Shareholder or its applicable Affiliate.

(c)The Company will not (and shall procure that no Group Member will), and until the Second Closing NII Telecom will procure that the Company will not (and shall procure that no Group member will): (i) transfer to another entity, or otherwise take any actions with respect to, any Intercompany Debt that would create a taxable event under the U.S. Internal Revenue Code or the U.S. Treasury Regulations thereunder, or (ii) cause the Intercompany Debt not to be “disregarded” for U.S. Tax purposes, in each case without the prior written consent of (A) from the Execution Date until the Second Closing (if any), NII Telecom and (B) from and after the Execution Date, Investor. Any Transfer or attempted Transfer, or any issuance, of any shares, stock or securities of any Group Member (other than the Company) shall require the prior written consent of Investor, and any such transfer or attempted transfer, or any issuance, of any shares, stock or securities of such Group Member without such prior written consent shall be null and void ab initio. The Company (and the Company shall procure than any Group Member) shall not (1) Transfer or issue on its books any of the shares, stock or securities that have been sold, issued or transferred in violation of any of the provisions set forth in this Agreement, or (2) treat as owner of such shares, stock or securities or to pay dividends or other distributions to any purported transferee to whom any such shares, stock or securities purported to have been sold, issued or transferred.

4.10.    Management Fees.  It is contemplated that, from the Effective Date, each of Investor (or such other Affiliate of Investor as Investor may nominate) and NII Telecom (or such other Affiliate of NII Telecom as it may nominate) will provide such management services for such annual fees (“Management Fees”) as mutually determined in good faith by Investor and NII Telecom after the Effective Date. Any such Management Fees will accrue on a quarterly basis (in advance). Any Management Fees payable by the Company will be so payable on arms-length terms reflecting the nature and value of the services rendered. The Parties agree that the Company’s obligation to pay Management Fees will be deferred for a period of two years following the Effective Date (such period, the “Grace Period”), at which time the Management Fees for the Grace Period will be payable. Following the Grace Period, Management Fees will be payable by the Company in quarterly installments on the first Business Day of the quarter to Investor and NII Telecom on a pro-

rata basis based on Investor’s and NII Telecom’s Applicable Ownership Percentage at such time. In the event that the Company does not have sufficient cash to pay the Management Fees in full (as reasonably determined by the Board), payment of Management Fees will be deferred until such time as the Company has sufficient cash to resume payment of the Management Fees in full.
  
4.11.    Treatment of Intercompany Arrangements. All contracts, undertakings, commitments, obligations and arrangements in place between the Group Members, on the one hand, and the Retained NII Group, on the other hand, except for (i) the intercompany loan of approximately $2 billion owed by Opco as an Intercompany Debt, and (ii) such arrangements and upon the terms and conditions set forth in this Agreement, the Investment Agreement and Schedule 4.11 (such arrangements set out in Schedule 4.11 being the “Continuing Arrangements”) (together the “Existing Arrangements”) will terminate on the Effective Date.

4.12.    Termination of Existing Arrangements. Each of NII Telecom and NII Parent (for itself and for each member of the Retained NII Group), hereby irrevocably agrees that, with effect from the Effective Date:

(a)all Existing Arrangements shall be terminated;

(b)any and all rights and obligations of (i) the Retained NII Group and (ii) any Group Member under, pursuant to or in connection with the Existing Arrangements which are subsisting or outstanding at the Effective Date shall be waived and released, including any and all rights and obligations which may have accrued prior to the Effective Date and each party expressly waives any and all claims it may have in respect thereof;

(c)any and all debts or liabilities (including any interest thereon and whether actual, contingent or prospective) of (i) the NII Retained Group, and (ii) any Group member under, pursuant to or in connection with the Existing Arrangements which are subsisting or outstanding at Effective Date shall be waived, released and discharged; and

(d)NII Telecom and NII Parent shall, or shall procure that the relevant member of the NII Retained Group shall, continue to provide the Continuing Arrangements on the terms set out in Section 4.13 below. 

4.13.    Transitional arrangements. Each of NII Telecom and NII Parent shall, or shall procure that the relevant member of the NII Retained Group shall, continue to provide the Continuing Arrangements, to the same scope, care, quality, service levels and responsiveness as provided in the twelve month period immediately prior to the Effective Date. The Continuing Arrangements shall be provided for 18 months from the Effective Date (or such longer period as may be agreed between the Parties) (the “Transitional Period”) unless the Company (in its sole and absolute discretion) terminates any of the Continuing Arrangements at any time on no less than one months’ notice. In addition to the Continuing Arrangements NII Telecom and NII Parent shall provide (or procure the provision of) migration assistance (so that any element of the Continuing Arrangements can be smoothly transferred so that they may be provided by any Group member and/or third party without any business interruption) and data migration. The specific activities required in relation to migration assistance and data migration shall be notified to NII Telecom by the Company (acting reasonably) from time to time. The Company shall either pay directly or reimburse NII Parent any out of pocket costs of NII Parent or the relevant member of the NII Retained Group for the Continuing Arrangements and related migration services provided to Opco and its Subsidiaries until such 

Continuing Arrangements are transitioned to Opco or its Subsidiaries, up to a maximum aggregate amount of $80,000 per calendar month during the Transitional Period.

V.     MISCELLANEOUS

5.1.    Investor Parent Guarantee.  (a) Investor Parent unconditionally and irrevocably guarantees to NII Telecom and the Company (the “Guaranteed Parties”) the due and punctual and performance by Investor of all of Investor’s obligations pursuant to Section  2.2 of this Agreement and Investor undertakes to keep the Guaranteed Parties fully indemnified on demand against any and all Losses of whatever nature which the Guaranteed Parties may suffer or incur as a result of any failure or delay by Investor in the performance of its obligations under Section  2.2 hereunder. 

(b)     Investor and Investor Parent jointly and severally warrant and represent to the Guaranteed Parties that Investor Parent has the corporate power to execute and deliver this Agreement and, subject to AINMT AS Approval in relation to Section  2.2 hereunder, perform its obligations under this Section 5.1, that the execution and delivery of this Agreement and, subject to AINMT AS Approval in relation to Section  2.2 hereunder, the performance of the obligations of Investor Parent under this Section 5.1 have been duly authorized by all necessary corporate action on the part of Investor Parent and that the obligations of Investor Parent under Section 5.1, constitute legal, valid and binding obligations of Investor Parent.

5.2.    NII Parent Guarantee.  (a) NII Parent unconditionally and irrevocably guarantees to Investor the due and punctual and performance by NII Telecom and NII Parent of all of NII Telecom’s and NII Parent’s obligations pursuant to Sections 2.3, 2.7 and 4.12 of this Agreement and NII Parent undertakes to keep Investor fully indemnified on demand against any and all Losses of whatever nature which Investor may suffer or incur as a result of any failure or delay by NII Telecom or NII Parent in the performance of any of its obligations under Sections 2.3, 2.7 and 4.12 hereunder. 

(b)    NII Telecom and NII Parent jointly and severally warrant and represent to Investor that NII Parent has the corporate power to execute and deliver this Agreement and perform its obligations under this Section 5.2, that the execution and delivery of this Agreement and the performance of the obligations of NII Parent under this Section  5.2 have been duly authorized by all necessary corporate action on the part of NII Parent and that the obligations of NII Parent under Section  5.2, constitute legal, valid and binding obligations of NII Parent.

5.3.    Entire Agreement; Amendments and Waivers.  (a) This Agreement represents the entire understanding and agreement between the Parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings (including any offer letters or term sheets), whether written or oral, relating to such subject matter.

(b)     This Agreement may be amended, supplemented or changed, and any provision of this Agreement may be waived, only by written instrument making specific reference to this Agreement signed by the Party against whom enforcement of any such amendment, supplement, modification or waiver is sought.

(c)    No action taken pursuant to this Agreement, including any investigation by or on behalf of a Party will be deemed to constitute a waiver by the Party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement will not operate or be construed as a 

further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder will operate as a waiver thereof, nor will any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

5.4.    Notices.  All notices and other communications under this Agreement will be in writing and will be deemed given (a) when delivered personally by hand (with written confirmation of receipt), (b) when sent by email (with confirmation of delivery), or (c) one Business Day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a Party may have specified by notice given to the other Party pursuant to this provision):  

If to the Company, to:

Nextel Holdings S.à.r.l.
c/o NII Holdings, Inc.
1875 Explorer Street, Suite 1000 
Reston, VA 20191
Attention: Shana C. Smith, General Counsel
Email: [*]    

With a copy to:
    
Jones Day
250 Vesey Street
New York, New York 10281
Attention:
S. Wade Angus
Robert A. Profusek
Email: [*]
    
If to NII Telecom or NII Parent, to:
    
NII Holdings, Inc.
1875 Explorer Street, Suite 1000 
Reston, VA 20191
Attention: Shana C. Smith, General Counsel
Email: [*]
    
With a copy (which will not constitute notice) to:

Jones Day
250 Vesey Street
New York, New York 10281
Attention: 
S. Wade Angus
Robert A. Profusek
Email: [*]

If to Investor, to:
    
AINMT Brazil Holdings B.V.
Prins Bernhardplein 200
1097 JD Amsterdam
The Netherlands
Attention: JD Fouchard
Email:    [*]
    
With a copy (which will not constitute notice) to:

Weil, Gotshal & Manges (London) LLP
110 Fetter Lane
London EC4A 1AY
United Kingdom
Attention:
Marco Compagnoni
James Harvey
Email: [*]    
    
If to AINMT AS or Investor Parent, to:
    
AINMT Holdings AB
Åsögatan 108, SE-118 29 Stockholm
Sweden
Attention: JD Fouchard
Email:    [*]    
    
With a copy (which will not constitute notice) to:

Weil, Gotshal & Manges (London) LLP
110 Fetter Lane
London EC4A 1AY
United Kingdom
Attention:
Marco Compagnoni
James Harvey
Email: [*]
    
5.5    Severability.  If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any Law or public policy, all other terms or provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the Parties will negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

5.6.    Termination.  This Agreement will terminate upon the written agreement of the Company and the Shareholders or the admission of any of the Shares to trading on a recognized securities exchange. Notwithstanding the foregoing, if a Party ceases to own any Shares or other rights to acquire Shares, such Party (and, if such Party is Investor, Investor Parent and AINMT AS, and if such Party is NII Telecom, NII Parent) will no longer be deemed to be a Party for purposes of this Agreement, and there will be no further liability on the part of any such Party, except for obligations arising under Section  3.8 (which will survive indefinitely) and liabilities arising from a breach of this Agreement or other actions by such Party prior to such Party ceasing to be a Party to this Agreement.

5.7.    Binding Effect; Assignment.  This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Nothing in this Agreement will create or be deemed to create any third-party beneficiary rights in any Person not a Party to this Agreement. No assignment of this Agreement or of any rights or obligations hereunder may be made by any Party, directly or indirectly (by operation of Law or otherwise), without the prior written consent of the other Parties and any attempted assignment without the required consents will be void; provided, however, that NII Telecom may assign some or all of its rights or delegate some or all of its obligations hereunder to successor entities. No assignment will relieve the assigning Party of any obligations under this Agreement. Upon any permitted assignment, the references in this Agreement to the assigning Party will also apply to any such assignee unless the context otherwise requires.

5.8.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement electronically (including portable document format (pdf.)) or by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement.

5.9    Injunctive Relief.  Damages at law may be an inadequate remedy for the breach of any of the covenants, promises and agreements contained in this Agreement, and, accordingly, either Party will be entitled to injunctive relief with respect to any such breach, including specific performance of such covenants or an order enjoining a Party from any threatened, or from the continuation of any actual, breach of the covenants contained in this Agreement. The rights set forth in this Section 5.9 will be cumulative and not exclusive and shall be in addition to any other remedies or rights that a Party may have at law or in equity.

5.10.    Governing Law; Submission to Jurisdiction.  This Agreement will be governed by and construed in accordance with the Laws of the State of New York applicable to contracts made and performed in such State. The Parties agree to unconditionally and irrevocably submit to the exclusive jurisdiction of the United States District Court for the Southern District of New York sitting in New York County or the Commercial Division, Civil Branch of the Supreme Court of the State of New York sitting in New York County and any appellate court thereof, for the resolution of any such claim or dispute. The Parties irrevocably waive, to the fullest extent permitted by applicable Law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the Parties agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.

5.11.    Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR IN PART UNDER, RELATED TO, BASED ON OR IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 5.11 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

5.12.    Legal Prohibitions.  To the extent that the exercise, right or the performance of any obligation by any Shareholder under Article II of this Agreement is prohibited by Law, such Shareholder and the other Parties agree to use all reasonable efforts to achieve reasonable and lawful alternative arrangements designed to provide such Shareholder or such other Parties, as the case may be, the economic benefit from the exercise of such right or the performance of such obligation.

5.13.    After-Acquired Shares; Options; Successor Shares.  Whenever any Shareholder becomes the record or beneficial owner of additional Shares, such Shares will be subject to all of the terms and conditions of this Agreement. All options to purchase shares of Capital Stock of the Company granted after the date hereof and the shares of Capital Stock deliverable pursuant to such options will, upon grant, be deemed to be, subject to the terms and conditions of this Agreement.

5.14.    Further Assurances.  Subject to the other provisions of this Agreement, each Party will use its commercially reasonable efforts to (a) take, or cause to be taken, all actions necessary or appropriate to consummate the transactions contemplated by this Agreement and (b) cause the fulfillment at the earliest practicable date of all of the conditions to its respective obligations to consummate the transactions contemplated by this Agreement.

5.15.    No Announcements.  The initial press release concerning this Agreement and the transactions contemplated hereby will be in a form previously agreed by the Parties. None of the Parties will issue any press release or public announcement concerning this Agreement or the transactions contemplated hereby without obtaining the prior written approval of the other Parties, which approval will not be unreasonably withheld or delayed, unless disclosure or filing are otherwise required by applicable Law; provided, however, that the Party intending to make such release uses its reasonable best efforts consistent with such applicable Law to consult in advance with the other Parties with respect to the text thereof.

[Remainder of Page Intentionally Left Blank]

NAI-1502580332v27 

NAI-1502580332v27    

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first above written.

AINMT BRAZIL HOLDINGS B.V.

By: /s/
Name:
Title:

By: /s/
Name:
Title: 

Solely for purposes of Section 5.1: 
AINMT Holdings AB

By: /s/
Name:
Title:

By: /s/
Name:
Title: 

Solely for purposes of Section 2.2:
AINMT AS

By: /s/
Name:
Title:

NEXTEL HOLDINGS S.À R.L.

By: /s/
Name:
Title:

NII INTERNATIONAL TELECOM S.C.A., 

Represented by its sole manager 
NII INTERNATIONAL HOLDINGS S.à.r.l. 

Itself represented

By: /s/
Name:
Title:

NII HOLDINGS, INC., 
solely for purposes of Section 2.4. and Section 5.2:

By: /s/
Name:
Title:

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