Document:

Exhibit 4.1

 Exhibit 4.1 

CERTIFICATE OF DESIGNATION OF 

SERIES B CONVERTIBLE PERPETUAL PREFERRED STOCK OF 

XPO LOGISTICS, INC. 
 Pursuant to
Section 151 of the 
 General Corporation Law of the State of Delaware 

XPO Logistics, Inc., a Delaware corporation (the “Company”), certifies that pursuant to the authority contained in its
Amended and Restated Certificate of Incorporation (as amended, the “Certificate of Incorporation”), and in accordance with the provisions of Section 151 of the General Corporation Law of the State of Delaware (the
“DGCL”), the Board of Directors of the Company (the “Board of Directors”), on September 10, 2014, duly approved and adopted the following resolution, which resolution remains in full force and effect on the
date hereof: 
 RESOLVED, that pursuant to the authority vested in the Board of Directors by the Certificate of Incorporation, the Board of
Directors does hereby designate, create, authorize and provide for the issue of a series of the Company’s preferred stock, par value $0.001 per share, with a liquidation preference of $1,000 per share (the “Liquidation
Preference”), which shall be designated as Series B Convertible Perpetual Preferred Stock (the “Series B Preferred Stock”), consisting of 371,848 shares, no shares of which have heretofore been issued by the
Company, having the following powers, designations, preferences and relative, participating, optional and other special rights, and qualifications, limitations and restrictions thereof: 

Certain defined terms used in this Certificate of Designation have the meanings assigned thereto in Section 13. 

Section 1. Ranking. The Series B Preferred Stock shall rank, with respect to payment of dividends and distribution of assets
upon the liquidation, winding-up or dissolution of the Company, (a) senior to the common stock, par value $0.001 per share, of the Company (the “Common Stock”), whether now outstanding or hereafter issued, and to each other
class or series of stock of the Company (including any series of preferred stock established after September 17, 2014 (the “Issue Date”) by the Board of Directors) the terms of which do not expressly provide that such class or
series ranks senior to, or pari passu, with the Series B Preferred Stock as to payment of dividends and distribution of assets upon the liquidation, winding-up or dissolution of the Company (collectively referred to as
“Junior Stock”); (b) pari passu with the Series A Preferred Stock and each other class or series of stock of the Company (including any series of preferred stock established after the Issue Date by the Board of
Directors) the terms of which expressly provide that such class or series ranks pari passu with the Series B Preferred Stock as to payment of dividends and distribution of assets upon the liquidation, winding-up or dissolution of
the Company (collectively referred to as “Parity Stock”); and (c) junior to each other class or series of stock of the Company (including any series of preferred stock established after the Issue Date by the Board of Directors)
the terms of which expressly provide that such class or series ranks senior to the Series B Preferred Stock as to payment of dividends and distribution of assets upon the liquidation, winding-up or dissolution of the Company (collectively
referred to as “Senior Stock”). The Company’s ability to issue Capital Stock that ranks pari passu with or senior to the Series B Preferred Stock shall be subject to the provisions of Section 4. 

 Section 2. Dividends. (a) Prior to the Meeting End Date. Prior to the
Meeting End Date, Holders of shares of Series B Preferred Stock shall be entitled to participate equally and ratably with the holders of shares of Common Stock in all dividends on the shares of Common Stock as if immediately prior to each
record date for the Common Stock, shares of Series B Preferred Stock then outstanding were converted into shares of Common Stock. Dividends payable pursuant to this Section 2(a) shall be payable on the same date that such dividends are
payable to holders of shares of Common Stock, and no dividends shall be payable to holders of shares of Common Stock unless dividends contemplated by this Section 2(a) are also paid at the same time in respect of the Series B Preferred
Stock. Each dividend shall be payable to the holders of record of shares of Series B Preferred Stock as they appear on the stock records of the Company at the close of business on the same day as the record date for the payment of dividends to
the holders of shares of Common Stock. 
 (b) Following the Meeting End Date. Commencing on and following the Meeting End Date,
Holders of shares of Series B Preferred Stock shall be entitled to cumulative dividends on the Series B Preferred Stock payable quarterly, which dividend shall be declared by the Board of Directors or a duly authorized committee thereof,
out of the assets of the Company legally available therefor, and thereafter, if so declared, be payable on the 15th calendar day (or the following Business Day if the 15th is not a Business Day) of January, April, July and October of each year (each
such date being referred to herein as a “Dividend Payment Date”) at the rate per annum of 7.5% per share on the Liquidation Preference; provided that the Interim Dividends shall be paid on the first Dividend Payment Date;
provided further that, in the event that on any Dividend Payment Date, the Company is not permitted to declare or pay such dividend or incur such liability either (x) as a matter of law or (y) under the terms of the Amended and
Restated Revolving Loan Credit Agreement dated as of April 1, 2014, among the Company and certain of its subsidiaries, as borrowers, the lenders from time to time party thereto, Morgan Stanley Senior Funding, Inc., as agent, and the other
parties thereto, as amended from time to time (the “Company Credit Agreement”), such dividend (a “Deferred Dividend”) shall not be declared by the Board of Directors, shall not be paid or payable on such Dividend
Payment Date and no liability shall be incurred in respect thereof, and instead, such Deferred Dividend shall be declared, become payable and be paid and the liability in respect thereof be incurred on the first succeeding Dividend Payment Date on
which the Company is not prohibited from declaring, paying and incurring the liability in respect of such Deferred Dividend (and, for the avoidance of doubt, such Deferred Dividend shall be payable in addition to, and not in lieu of, any dividend
which would ordinarily be payable on such succeeding Dividend Payment Date). The amount of dividends payable for any other period that is shorter or longer than a full quarterly dividend period will be computed on the basis of a 360-day year
consisting of twelve 30-day months. 
 Commencing on and following the Meeting End Date, in the event that dividends are paid on shares of
Common Stock in any dividend period with respect to the Series B Preferred Stock, then a dividend shall be payable in respect of each share of Series B Preferred Stock for such period in an amount equal to the greater of (i) the
amount otherwise payable in respect of such share of Series B Preferred Stock in accordance with the foregoing paragraph and (ii) the 

  
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product of (A) the aggregate dividends payable per share of Common Stock in such dividend period times (B) the number of shares of Common Stock into which such share of Series B
Preferred Stock is then convertible. 
 For purposes of this Section 2(b), a dividend period with respect to a Dividend Payment Date is
the period commencing on the preceding Dividend Payment Date (or, if there is no preceding Dividend Payment Date, the Meeting End Date) and ending on the day immediately prior to the next Dividend Payment Date. Dividends payable on a Dividend
Payment Date shall be payable to Holders of record on the later of (i) the close of business on the first calendar day (or the following Business Day if such first calendar day is not a Business Day) of the calendar month in which the
applicable Dividend Payment Date falls and (ii) the close of business on the day on which the Board of Directors or a duly authorized committee thereof declares the dividend payable (each, a “Dividend Record Date”). 

(c) Payment of Dividends. The Company may make each dividend payment on the Series B Preferred Stock either (i) in cash (or,
if applicable, in the same form as such dividend is paid to holders of Common Stock) or (ii) at the Company’s option, by the issuance of additional shares of Series B Preferred Stock (including fractional shares) having an aggregate
Liquidation Preference equal to the amount of the dividend to be paid (or, in the case of a non-cash distribution, having an aggregate Liquidation Preference equal to the fair market value of such dividend (as determined in good faith by the Board
of Directors, whose determination shall be conclusive and described in a Board Resolution)). Each fractional share of Series B Preferred Stock outstanding shall be entitled to a ratably proportionate amount of all dividends accumulating with
respect to each outstanding share of Series B Preferred Stock pursuant to Section 2, and all such dividends with respect to such outstanding fractional shares shall accumulate (whether or not declared) and shall be payable in the same
manner and at such times as provided for in Section 2 with respect to dividends on each outstanding share of Series B Preferred Stock. No interest or sum of money in lieu of interest shall be payable in respect of any dividends or payment
that may be in arrears. 
 (d) Payment Restrictions. No dividends or other distributions (other than a dividend or distribution
payable solely in shares of Parity Stock or Junior Stock (in the case of Parity Stock) or Junior Stock (in the case of Junior Stock) and other than cash paid in lieu of fractional shares) may be declared, made or paid, or set apart for payment upon,
any Parity Stock or Junior Stock, nor may any Parity Stock or Junior Stock be redeemed, purchased or otherwise acquired for any consideration (or any money paid to or made available for a sinking fund for the redemption of any Parity Stock or Junior
Stock) by or on behalf of the Company (except by conversion into or exchange for shares of Parity Stock or Junior Stock (in the case of Parity Stock) or Junior Stock (in the case of Junior Stock)), unless all accrued and unpaid dividends shall have
been or contemporaneously are declared and paid (in cash or in kind), or are declared and a sum of cash sufficient for the payment thereof is set apart for such payment, on the Series B Preferred Stock and any Parity Stock for all dividend
payment periods terminating on or prior to the date of such declaration, payment, redemption, purchase or acquisition. Notwithstanding the foregoing, if full dividends have not been paid on the Series B Preferred Stock and any Parity Stock,
dividends may be declared and paid on the Series B Preferred Stock and such Parity Stock so long as the dividends are declared and paid pro rata so that the aggregate amounts of dividends declared per share on, and the amounts of
such dividends 

  
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declared in cash or in kind, as applicable, per share on, the Series B Preferred Stock and such Parity Stock will in all cases bear to each other the same ratio that accrued and unpaid
dividends per share on the shares of Series B Preferred Stock and such other Parity Stock bear to each other. 
 Section 3.
Liquidation Preference. In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company, each Holder shall be entitled to receive out of the assets of the Company available for distribution to stockholders
of the Company, before any distribution of assets is made on the Common Stock or any other Junior Stock, an amount equal to the greater of (i) the aggregate Liquidation Preference attributable to shares of Series B Preferred Stock held by
such Holder plus an amount equal to the sum of all accrued and unpaid cumulative dividends, and (ii) the product of (x) the amount per share that would have been payable upon such liquidation, dissolution or winding-up to the
holders of shares of Common Stock or such other class or series of securities into which the Series B Preferred Stock is then convertible (assuming the conversion of each share of Series B Preferred Stock), multiplied by (y) the
number of shares of Common Stock or such other securities into which the shares of Series B Preferred Stock held by such Holder are then convertible. 

None of (i) the sale of all or substantially all of the property or business of the Company (other than in connection with the voluntary
or involuntary liquidation, dissolution or winding-up of the Company), (ii) the merger, conversion or consolidation of the Company into or with any other Person or (iii) the merger, conversion or consolidation of any other Person into or
with the Company, shall constitute a voluntary or involuntary liquidation, dissolution or winding-up of the Company for the purposes of the immediately preceding paragraph. 

In the event the assets of the Company available for distribution to Holders upon any liquidation, winding-up or dissolution of the Company,
whether voluntary or involuntary, shall be insufficient to pay in full all amounts to which such Holders are entitled pursuant to this Section 3, no such distribution shall be made on account of any shares of Parity Stock upon such liquidation,
dissolution or winding-up unless proportionate distributable amounts shall be paid on account of the shares of Series B Preferred Stock, ratably, in proportion to the full distributable amounts for which Holders and holders of any Parity Stock
are entitled upon such liquidation, winding-up or dissolution, with the amount allocable to each series of such stock determined on a pro rata basis of the aggregate liquidation preference of the outstanding shares of each series and accrued
and unpaid dividends to which each series is entitled. 
 After the payment to the Holders of the full preferential amounts provided for
above, the Holders as such shall have no right or claim to any of the remaining assets of the Company. 
 Section 4. Voting
Rights. (a) The Holders of shares of Series B Preferred Stock will not have any voting rights, including the right to elect any directors, except (i) voting rights, if any, required by law, and (ii) voting rights, if any,
described in this Section 4. 
 (b) So long as any Series B Preferred Stock is outstanding, in addition to any other vote of
stockholders of the Company required under applicable law or the Certificate of Incorporation, the affirmative vote or consent of the Holders of at least a majority of the outstanding shares of Series B Preferred Stock, voting separately as a
single class, will be 

  
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required (i) for any amendment of the Certificate of Incorporation if the amendment would alter or change the powers, preferences, privileges or rights of the Holders so as to affect them
adversely; provided that no such consent shall be required for the amendment of Section 7(a)(iv) of the Series A Preferred Stock to conform the anti-dilution calculations therein to Section 7(a)(iv) hereof, (ii) to issue,
authorize or increase the authorized amount of, or issue or authorize any obligation or security convertible into or evidencing a right to purchase, any Parity Stock or Senior Stock, or (iii) to reclassify any authorized stock of the Company
into any Parity Stock or Senior Stock, or any obligation or security convertible into or evidencing a right to purchase any Senior Stock. It is agreed that no such vote shall be required for the Company to issue, authorize or increase the authorized
amount of, or issue or authorize any obligation or security convertible into or evidencing a right to purchase, any Junior Stock. 

Section 5. Conversion. 

(a) Mandatory Conversion. Effective as of the close of business on the Stockholder Approval Date, with respect to the shares of
Series B Preferred Stock of a Holder, such Holder’s shares of Series B Preferred Stock shall automatically, without any action of such Holder, convert into a number of shares of Common Stock equal to the aggregate Liquidation
Preference of such shares of Series B Preferred Stock divided by the Conversion Price then in effect (such quotient, the “Conversion Shares”). 

(b) In addition, effective as of the close of business on the Stockholder Approval Date, a Holder of Series B Preferred Stock shall be
entitled to receive, at the election of the Company, either (i) cash in an amount equal to the then unpaid Deferred Dividends in respect of shares of Series B Preferred Stock held by such Holder or (ii) a number of shares of Common Stock
equal to the amount of any then unpaid Deferred Dividends in respect of shares of Series B Preferred Stock held by such Holder divided by the Conversion Price then in effect (such quotient, the “Dividend Shares”). 

No Holder may convert shares of Series B Preferred Stock other than pursuant to Section 5(a). 

(c) Conversion Procedures. 

(i) In the event of conversion pursuant to Section 5(a), the Company shall deliver as promptly as practicable written notice to each
holder specifying: (A) the Stockholder Approval Date; (B) the number of shares of Common Stock to be issued in respect of each share of Series B Preferred Stock that is converted; (C) the place or places where certificates or evidence
of book-entry notation for such shares of Series B Preferred Stock are to be surrendered for issuance of certificates or evidence of book-entry notation representing shares of Common Stock; and (D) that dividends on the shares to be converted
will cease to accrue on such Stockholder Approval Date. Unless the shares of Common Stock issuable upon conversion are to be issued in the same name as the name in which such shares of Series B Preferred Stock are registered, each share surrendered
for mandatory conversion shall be accompanied by instruments of transfer, in form satisfactory to the Company, duly executed by the holder thereof or such holder’s duly authorized attorney and an amount sufficient to pay any transfer or similar
tax in accordance with Section 14(f). 

  
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 (ii) The conversion shall be deemed to have been effected at the close of business on the
Stockholder Approval Date (as applicable). At such time: (A) the person in whose name or names any certificate or certificates for shares of Common Stock shall be issuable upon such mandatory conversion shall be deemed to have become the holder
of record of the shares of Common Stock represented thereby at such time; (B) such shares of Series B Preferred Stock so converted shall no longer be deemed to be outstanding, and all rights of a holder with respect to such shares shall
immediately terminate except the right to receive the Common Stock and other amounts payable pursuant to this Section 5. 
 (iii)
Holders of shares of Series B Preferred Stock at the close of business on a Dividend Record Date shall be entitled to receive the dividend payable on such shares of Series B Preferred Stock on the corresponding Dividend Payment Date notwithstanding
the mandatory conversion thereof following such Dividend Record Date and prior to such Dividend Payment Date. In such event, any such dividend that would otherwise be payable in the form of Series B Preferred Stock shall be payable to such Holder
either (i) in cash or (ii) at the Company’s option, in shares of Common Stock converted at the Conversion Price in effect as of the time of such mandatory conversion. 

(iv) In connection with the mandatory conversion of shares of Series B Preferred Stock, no fractions of shares of Common Stock shall be
issued, but in lieu thereof the Company shall pay an amount of cash in respect of such fractional interest equal to such fractional interest multiplied by the Market Value per share of Common Stock on the Stockholder Approval Date. 

Section 6. Settlement upon Conversion. The Company shall satisfy its obligation to deliver Conversion Shares and, if applicable,
Dividend Shares (or such other class or series of securities into which the Series B Preferred Stock is then convertible) upon conversion of Series B Preferred Stock by delivering to each Holder surrendering shares of Series B Preferred
Stock for conversion a number of shares of Common Stock (or such other class or series of securities into which the Series B Preferred Stock is then convertible) equal to the Conversion Shares and, if applicable, Dividend Shares to which such
Holder is entitled pursuant to Section 5 (provided that the Company will deliver cash in lieu of fractional shares), as soon as practicable after the third Trading Day (but in no event later than the fifth Business Day) following the
Stockholder Approval Date. In the event the Company elects to pay cash pursuant to Section 5(b)(i), such cash payment shall be made on the same date. 

Section 7. Anti-dilution Adjustments. (a) The Conversion Price shall be subject to the following adjustments from time to
time: 
 (i) Stock Dividends. In case the Company shall pay or make a dividend or other distribution on the Common Stock in Common
Stock, the Conversion Price, as in effect at the opening of business on the day following the date fixed for the determination of stockholders of the Company entitled to receive such dividend or other distribution, shall be adjusted by multiplying
such Conversion Price by a fraction of which the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination and the denominator shall be the sum of such number of shares and
the total 

  
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number of shares constituting such dividend or other distribution, such adjustment to become effective immediately after the opening of business on the day following the date fixed for such
determination; provided, however, that no such adjustment to the Conversion Price shall be made if the Holders would be entitled to receive such dividend or other distribution pursuant to Section 2. 

(ii) Stock Purchase Rights. In case the Company shall issue to all holders of its Common Stock options, warrants or other rights
entitling them to subscribe for or purchase shares of Common Stock for a period expiring within 60 days from the date of issuance of such options, warrants or other rights at a price per share of Common Stock less than 95% of the Market Value on the
date fixed for the determination of stockholders of the Company entitled to receive such options, warrants or other rights (other than pursuant to a dividend reinvestment, share purchase or similar plan), the Conversion Price in effect at the
opening of business on the day following the date fixed for such determination shall be adjusted by multiplying such Conversion Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination plus the number of shares of Common Stock which the aggregate consideration expected to be received by the Company upon the exercise, conversion or exchange of such options, warrants or other
rights (as determined in good faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) would purchase at such Market Value and the denominator of which shall be the number of shares of Common
Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Common Stock so offered for subscription or purchase, either directly or indirectly, such adjustment to become effective
immediately after the opening of business on the day following the date fixed for such determination; provided, however, that no such adjustment to the Conversion Price shall be made if the Holders would be entitled to receive such
options, warrants or other rights pursuant to Section 2; provided, further, however, that if any of the foregoing options, warrants or other rights are only exercisable upon the occurrence of a Triggering Event, then the
Conversion Price will not be adjusted until such Triggering Event occurs. 
 (iii) Stock Splits, Reverse Splits and Combinations. In
case outstanding shares of Common Stock shall be subdivided, split or reclassified into a greater number of shares of Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which such subdivision,
split or reclassification becomes effective shall be proportionately reduced, and, conversely, in case outstanding shares of Common Stock shall be combined or reclassified into a smaller number of shares of Common Stock, the Conversion Price in
effect at the opening of business on the day following the day upon which such combination or reclassification becomes effective shall be proportionately increased, such reduction or increase, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such subdivision, split, reclassification or combination becomes effective. 

(iv) Debt, Asset or Security Distributions. (A) In case the Company shall, by dividend or otherwise, distribute to all holders of
its Common Stock evidences of its indebtedness, assets or securities (but excluding any dividend or distribution of options, warrants or other rights referred to in paragraph (ii) of this Section 7(a), any dividend or distribution paid
exclusively in cash, any dividend or distribution of shares of Capital Stock of any class or series, 

  
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or similar equity interests, of or relating to a Subsidiary or other business unit in the case of a Spin-off referred to in the next subparagraph, or any dividend or distribution referred to in
paragraph (i) of this Section 7(a)), the Conversion Price shall be reduced by multiplying the Conversion Price in effect immediately prior to the close of business on the date fixed for the determination of stockholders of the Company
entitled to receive such distribution by a fraction, the numerator of which shall be such Market Value minus the fair market value (as determined in good faith by the Board of Directors, whose determination shall be conclusive and described
in a Board Resolution) of the portion of the assets or evidences of indebtedness so distributed applicable to one share of Common Stock and the denominator of which shall be the Market Value on the date fixed for such determination, such adjustment
to become effective immediately prior to the opening of business on the day following the date fixed for the determination of stockholders of the Company entitled to receive such distribution. In any case in which this subparagraph (iv)(A) is
applicable, subparagraph (iv)(B) of this Section 7(a) shall not be applicable. No adjustment to the Conversion Price shall be made if the Holders would be entitled to receive such dividend or distribution pursuant to Section 2. 

(B) In the case of a Spin-off, the Conversion Price in effect immediately prior to the close of business on the date fixed for determination
of stockholders of the Company entitled to receive such distribution shall be reduced by multiplying the Conversion Price by a fraction, the numerator of which shall be the Market Value minus the fair market value (as determined in good faith
by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) of the shares (or fractions thereof) of Capital Stock or similar equity interests so distributed applicable to one share of Common Stock and the
denominator of which shall be the Market Value. Any adjustment to the Conversion Price under this subparagraph (iv)(B) will occur on the date that is the earlier of (1) the tenth Trading Day from, and including, the effective date of the
Spin-off and (2) the date of the Initial Public Offering of the securities being distributed in the Spin-off, if that Initial Public Offering is effected simultaneously with the Spin-off. No adjustment to the Conversion Price shall be made if
the Holders would be entitled to receive such dividend or distribution pursuant to Section 2. 
 (v) Tender Offers. In the case that
a tender or exchange offer made by the Company or any Subsidiary of the Company for all or any portion of the Common Stock shall expire and such tender or exchange offer (as amended through the expiration thereof) shall require the payment to
stockholders of the Company (based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of Purchased Shares) of aggregate consideration having a fair market value (as determined in good faith by the Board of
Directors, whose determination shall be conclusive and described in a Board Resolution) per share of Common Stock that exceeds the Closing Sale Price of the Common Stock on the Trading Day next succeeding the last date on which tenders or exchanges
may be made pursuant to such tender or exchange offer, then, immediately prior to the opening of business on the day after the date of the last time (the “Expiration Time”) tenders or exchanges could have been made pursuant to such
tender or exchange offer (as amended through the expiration thereof), the Conversion Price shall be reduced by multiplying the Conversion Price immediately prior to the close of business on the date of the Expiration Time by a fraction (A) the
numerator of which shall be equal to the product of (x) the Market Value on the date of the Expiration Time and (y) the number of shares of Common Stock outstanding (including any tendered or exchanged shares) on the date of the Expiration
Time, and (B) the denominator of which shall be equal to 

  
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(x) the product of (I) the Market Value on the date of the Expiration Time and (II) the number of shares of Common Stock outstanding (including any tendered or exchanged shares) on
the date of the Expiration Time less the number of all shares validly tendered or exchanged, not withdrawn and accepted for payment on the date of the Expiration Time (such validly tendered or exchanged shares, up to any such maximum, being referred
to as the “Purchased Shares”) plus (y) the amount of cash plus the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders of the Company pursuant to the tender or
exchange offer (assuming the acceptance, up to any maximum specified in the terms of the tender or exchange offer, of Purchased Shares). 

(b) De Minimis Adjustments. Notwithstanding anything herein to the contrary, no adjustment under this Section 7 need be made to
the Conversion Price unless such adjustment would require an increase or decrease of at least 1.0% of the Conversion Price then in effect. Any lesser adjustment shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment, if any, which, together with any adjustment or adjustments so carried forward, shall result in an increase or decrease of at least 1.0% of such Conversion Price. No adjustment under this Section 7 shall be made if such
adjustment will result in a Conversion Price that is less than the par value of the Common Stock. 
 (c) Tax-Related Adjustments. The
Company may make such reductions in the Conversion Price, in addition to those required by this Section 7, as the Board of Directors considers advisable in order to avoid or diminish any income tax to any holders of shares of Common Stock
resulting from any dividend or distribution of stock or issuance of rights or warrants to purchase or subscribe for stock or from any event treated as such for income tax purposes. In the event the Company elects to make such a reduction in the
Conversion Price, the Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder if and to the extent that such laws and regulations are applicable in connection with
the reduction in the Conversion Price. 
 (d) Stockholder Rights Plans. Upon conversion of the Series B Preferred Stock, to the
extent that the Holders receive Common Stock, such Holders shall receive, in addition to the shares of Common Stock, the rights issued under any future stockholder rights plan the Company may establish whether or not such rights are separated from
the Common Stock prior to conversion. A distribution of rights pursuant to any stockholder rights plan will not result in an adjustment to the Conversion Price pursuant to Section 7(a)(ii) or 7(a)(iv), provided that the Company has
provided for the Holders to receive such rights upon conversion. 
 (e) Notice of Adjustment. Whenever the Conversion Price is
adjusted in accordance with this Section 7, the Company shall (i) compute the Conversion Price in accordance with this Section 7 and prepare and transmit to the Transfer Agent an Officer’s Certificate setting forth the Conversion
Price, the method of calculation thereof in reasonable detail, and the facts requiring such adjustment and upon which such adjustment is based and (ii) as soon as practicable following the occurrence of an event that requires an adjustment to
the Conversion Price pursuant to this Section 7 (or if the Company is not aware of such occurrence, as soon as practicable after becoming so aware), the Company or, at the request and expense of the Company, the Transfer Agent shall provide a
written notice to the Holders of the occurrence of such event and a statement setting forth in reasonable detail the method by which the adjustment to the Conversion Price was determined and setting forth the adjusted Conversion Price. 

  
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 (f) Reversal of Adjustment. If the Company shall take a record of the holders of its
Common Stock for the purpose of entitling them to receive a dividend or other distribution, and shall thereafter (and before the dividend or distribution has been paid or delivered to stockholders) legally abandon its plan to pay or deliver such
dividend or distribution, then thereafter no adjustment in the Conversion Price then in effect shall be required by reason of the taking of such record. 

(g) Exceptions to Adjustment. The applicable Conversion Price shall not be adjusted: 

(i) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or
interest payable on the Company’s securities and the investment of additional optional amounts in shares of Common Stock under any such plan; 

(ii) upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future
employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries; 
 (iii) upon the
issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security outstanding as of the Issue Date; 

(iv) upon the issuance of any shares of Common Stock or any other security of the Company in connection with acquisitions of assets or
securities of another Person, including with respect to any merger or consolidation or similar transaction; 
 (v) for a change in the par
value of the Common Stock; or 
 (vi) for accrued and unpaid dividends on the Series A Preferred Stock or the Series B Preferred
Stock. 
 Section 8. Recapitalizations, Reclassifications and Changes in the Company’s Stock. In the event of any
reclassification of outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value), or any consolidation or merger of the Company with or into another Person (other than
with a Subsidiary of the Company) or any merger of another Person with or into the Company (other than a consolidation or merger in which the Company is the resulting or surviving Person and that does not result in any reclassification or change of
outstanding Common Stock), or any sale or other disposition to another Person of all or substantially all of the assets of the Company (computed on a consolidated basis) (any of the foregoing, a “Transaction”), upon conversion of
its shares of Series B Preferred Stock, a Holder will be entitled to receive the kind and amount of securities (of the Company or another issuer), cash and other property receivable upon such Transaction by a holder of the number of shares of
Common Stock into which such shares of Series B Preferred Stock were convertible immediately prior to such Transaction, after giving 

  
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effect to any adjustment event or, in the event holders of Common Stock have the opportunity to elect the form of consideration to be received in any Transaction, the weighted average of the
forms and amounts of consideration received by the holders of the Common Stock. In the event that at any time, as a result of an adjustment made pursuant to this Certificate of Designation, the Holders shall become entitled upon conversion to any
securities other than, or in addition to, shares of Common Stock, thereafter the number or amount of such other securities so receivable upon conversion shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent
as practicable to the provisions with respect to the Common Stock set forth in this Certificate of Designation. 
 Section 9.
Consolidation, Merger and Sale of Assets. (a) The Company, without the consent of the Holders, may consolidate with or merge into any other Person or convey, transfer or lease all or substantially all its assets to any Person or may
permit any Person to consolidate with or merge into, or transfer or lease all or substantially all its properties to, the Company (any of the foregoing, “Reorganization”); provided, however, that (i) the shares of
Series B Preferred Stock will become the kind and amount of securities of such successor, transferee or lessee, cash and other property receivable by a holder of the number of shares of Common Stock into which such shares of Series B
Preferred Stock were convertible immediately prior to such Reorganization; and (ii) the Company delivers to the Transfer Agent an Officer’s Certificate and an Opinion of Counsel, acceptable to the Transfer Agent, stating that such
Reorganization complies with this Certificate of Designation. 
 (b) Upon any consolidation by the Company with, or merger by the Company
into, any other Person or any conveyance, transfer or lease of all or substantially all the assets of the Company as described in Section 9(a), the successor resulting from such consolidation or into which the Company is merged or the
transferee or lessee to which such conveyance, transfer or lease is made, will succeed to, and be substituted for, and may exercise every right and power of, the Company under the shares of Series B Preferred Stock, and thereafter, except in
the case of a lease, the predecessor (if still in existence) will be released from its obligations and covenants with respect to the Series B Preferred Stock. 

Section 10. Notices. (a) When the Company is required, pursuant to this Certificate of Designation, to give notice to Holders
by issuing a press release, rather than directly to Holders, the Company shall do so in a public medium that is customary for such press release; provided, however, that in such cases, publication of a press release through the Dow
Jones News Service shall be considered sufficient to comply with such notice obligation. 
 (b) When the Company is required, pursuant to
this Certificate of Designation, to give notice to Holders without specifying the method of giving such notice, the Company shall do so by sending notice via first class mail or by overnight courier to the Holders of record as of a reasonably
current date. 
 Section 11. Transfer of Securities. (a) The shares of Series B Preferred Stock and the shares of
Common Stock issuable upon conversion of the Series B Preferred Stock (collectively, the “Securities”) have not been registered under the Securities Act or any other applicable securities laws and may not be offered or sold
except in compliance with the registration requirements of the Securities Act and any other applicable securities laws, or pursuant to an 

  
 11 

 
exemption from registration under the Securities Act and any other applicable securities laws, or in a transaction not subject to such laws. The Securities will have the benefit of certain
registration rights under the Securities Act pursuant to an Investment Agreement entered into by the Company and the Holders on September 11, 2014, a copy of which may be obtained from the Company by writing to it at XPO Logistics, Inc., Five
Greenwich Office Park, Greenwich, CT 06831, Attention: Secretary of the Board of Directors. 
 (b) Except in connection with a registration
statement relating to the Securities, if shares of Series B Preferred Stock in certificated form are delivered upon the transfer, exchange or replacement of shares of Series B Preferred Stock bearing the Restricted Stock Legend, or if a
request is made to remove such Restricted Stock Legend on shares of Series B Preferred Stock, the shares of Series B Preferred Stock so issued shall bear the Restricted Stock Legend and the Restricted Stock Legend shall not be removed
unless there is delivered to the Company and the Transfer Agent such satisfactory evidence, which may include an Opinion of Counsel licensed to practice law in the State of New York, as may be reasonably required by the Company, that such shares of
Series B Preferred Stock are not “restricted securities” within the meaning of Rule 144 under the Securities Act. Upon provision of such satisfactory evidence, the Transfer Agent, at the direction of the Company, shall
countersign and deliver shares of Series B Preferred Stock that do not bear the Restricted Stock Legend. 
 (c) Shares of Common Stock
issued upon a conversion of the shares of Series B Preferred Stock bearing the Restricted Stock Legend, prior to the first anniversary of the Issue Date, shall be in global form and bear a restricted common stock legend that corresponds to the
Restricted Stock Legend (the “Restricted Common Stock Legend”). 
 (d) The Company will refuse to register any transfer of
Securities that is not made in accordance with the provisions of the Restricted Stock Legend or the Restricted Common Stock Legend, as applicable, provided that the provisions of this Section 11(d) shall not be applicable to any Security
that does not bear any Restricted Stock Legend or any Restricted Common Stock Legend. 
 Section 12. Certain Tax Matters. The
Company and the Holders acknowledge and agree that it is intended that the Series B Preferred Stock not constitute “preferred stock” within the meaning of Section 305 of the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder, and that neither the Company nor the Holders shall treat the Series B Preferred Stock as such. The Company shall be entitled to deduct and withhold from any payment of cash, shares of Series B
Preferred Stock, shares of Common Stock or other consideration deliverable to a Holder of a share of Series B Preferred Stock, any amounts required to be deducted or withheld under applicable U.S. federal, state, local or foreign tax laws with
respect to such payment or issuance. In the event the Company paid withholding taxes to a governmental authority in respect of any amount treated as a distribution on a share of Series B Preferred Stock, the Company shall be entitled to deduct any
such taxes from any subsequent payment of cash, shares of Series B Preferred Stock, shares of Common Stock or other consideration otherwise deliverable to a Holder of a share of Series B Preferred Stock. 

  
 12 

 Section 13. Definitions. 

(a) “Board of Directors” has the meaning set forth in the first paragraph of this Certificate of Designation. 

(b) “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Transfer Agent. 

(c) “Business Day” means any day other than a Saturday or Sunday or any other day on which banks in the City of New York are
authorized or required by law or executive order to close. 
 (d) “Capital Stock” of any Person means any and all shares,
interests, participations or other equivalents however designated of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt securities convertible
or exchangeable into an equity interest), warrants or options to acquire an equity interest in such Person. 
 (e) “Certificate of
Incorporation” has the meaning set forth in the first paragraph of this Certificate of Designation. 
 (f) The “Closing
Sale Price” of the Common Stock on any date means the closing sale price per share (or if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average
closing bid and the average closing ask prices) on such date as reported on the over-the-counter “Pink Sheets” market or, if the Common Stock is listed on a national securities exchange, the principal national securities exchange on which
the Common Stock is traded. In the absence of such a quotation, the Closing Sale Price of the Common Stock will be an amount determined in good faith by the Board of Directors to be the fair market value of such Common Stock, and such determination
shall be conclusive. 
 (g) “Common Stock” has the meaning set forth in Section 1. 

(h) “Company” has the meaning set forth in the first paragraph of this Certificate of Designation. 

(i) “Conversion Price” shall initially equal $30.66 per share of Common Stock, and shall be subject to adjustment as set
forth in Section 7. 
 (j) “Conversion Shares” has the meaning set forth in Section 5(a). 

(k) “DGCL” has the meaning set forth in the first paragraph of this Certificate of Designation. 

(l) “Dividend Payment Date” has the meaning set forth in Section 2(b). 

  
 13 

 (m) “Dividend Record Date” has the meaning set forth in Section 2(b). 

(n) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(o) “Expiration Time” has the meaning set forth in Section 7(a)(v). 

(p) “Holder” means the Person in whose name a share of Series B Preferred Stock is registered. 

(q) “including” means “including, without limitation”. 

(r) “Initial Public Offering” means, in the event of a Spin-off, the first time securities of the same class or type as the
securities being distributed in the Spin-off are bona fide offered to the public for cash. 
 (s) “Interim Dividends” means
the dividends that would accrue pursuant to Section 2(b) during the period from the date of the first stockholder meeting at which the Company seeks the Stockholder Approval until May 31, 2015. 

(t) “Investment Agreement” means the Investment Agreement, dated as of September 11, 2014, by and among, the Company and
the Purchasers set forth on Schedule I thereto. 
 (u) “Issue Date” has the meaning set forth in Section 1. 

(v) “Junior Stock” has the meaning set forth in Section 1. 

(w) “Liquidation Preference” has the meaning set forth in the second paragraph of this Certificate of Designation. 

(x) “Market Value” means, with respect to any date of determination, the average Closing Sale Price of the Common Stock for a
five consecutive Trading Day period preceding the earlier of (i) the day preceding the date of determination and (ii) the day before the “ex date” with respect to the issuance or distribution requiring such computation. For
purposes of this definition, the term “ex date” when used with respect to any issuance or distribution, means the first date on which the Common Stock trades, regular way, on the over-the-counter “Pink Sheets” market or, if the
Common Stock is listed on a national securities exchange, the principal national securities exchange on which the Common Stock is traded at that time, without the right to receive the issuance or distribution. 

(y) “Meeting End Date” shall mean May 31, 2015. 

(z) “Officer” means the Chairman of the Board, President, Chief Executive Officer, any Vice President, the Chief Financial
Officer, the Chief Accounting Officer, the Treasurer, any Assistant Treasurer, the Controller, any Assistant Controller, the Secretary or any Assistant Secretary of the Company. 

(aa) “Officer’s Certificate” means a certificate signed by two Officers. 

  
 14 

 (bb) “Opinion of Counsel” means a written opinion from legal counsel who is
reasonably acceptable to the Company or the Transfer Agent. The counsel may be an employee of or counsel to the Company or the Transfer Agent. 

(cc) “Parity Stock” has the meaning set forth in Section 1. 

(dd) “Person” means any natural person, corporation, limited liability company, partnership, joint venture, trust, business
association, governmental entity or other entity. 
 (ee) “Purchased Shares” has the meaning set forth in
Section 7(a)(v). 
 (ff) “Reorganization” has the meaning set forth in Section 9(a). 

(gg) “Restricted Common Stock Legend” has the meaning set forth in Section 11(c). 

(hh) “Restricted Stock Legend” means a legend to the following effect: 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON CONVERSION THEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION STATEMENT RELATING THERETO IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 (ii) “Securities” has the
meaning set forth in Section 11(a). 
 (jj) “Securities Act” means the Securities Act of 1933, as amended. 

(kk) “Senior Stock” has the meaning set forth in Section 1. 

(ll) “Series A Preferred Stock” means the Series A Convertible Perpetual Preferred Stock of the Company. 

(mm) “Series B Preferred Stock” has the meaning set forth in the first paragraph of this Certificate of Designation.

 (nn) “Spin-off” means a dividend or other distribution of shares of Capital Stock of any class or series, or similar
equity interests, of or relating to a Subsidiary or other business unit of the Company. 

  
 15 

 (oo) “Stockholder Approval” means the stockholder approval of the proposals to
issue Common Stock upon conversion of the Series B Preferred Stock for purposes of Rule 312 of the NYSE Listed Company Manual. 
 (pp)
“Stockholder Approval Date” means the date on which the Stockholder Approval is obtained. 
 (qq)
“Subsidiary” of any Person means any other Person (i) more than 50% of whose outstanding shares or securities representing the right to vote for the election of directors or other managing authority of such other Person are,
now or hereafter, owned or controlled, directly or indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only so long as such ownership or control exists, or (ii) which does not have outstanding shares or
securities with such right to vote, as may be the case in a partnership, joint venture or unincorporated association, but more than 50% of whose ownership interest representing the right to make the decisions for such other Person is, now or
hereafter, owned or controlled, directly or indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only so long as such ownership or control exists. 

(rr) “Substituted Preferred Stock” has the meaning set forth in the Investment Agreement. 

(ss) “Trading Day” means a day during which trading in securities generally occurs on the New York Stock Exchange. 

(tt) “Transaction” has the meaning set forth in Section 8. 

(uu) “Transfer Agent” means Computershare Trust Company, N.A. unless and until a successor is selected by the Company, and
then such successor. 
 (vv) “Triggering Event” means a specified event the occurrence of which entitles the holders of
rights, options or warrants to exercise such rights, options or warrants. 
 Section 14. Miscellaneous. 

(a) The Liquidation Preference and any dividend rate set forth herein each shall be subject to equitable adjustment whenever there shall occur
a stock split, combination, reclassification or other similar event involving the Series B Preferred Stock. Such adjustments shall be determined in good faith by the Board of Directors (and such determination shall be conclusive) and submitted
by the Board of Directors to the Transfer Agent. 
 (b) For the purposes of Section 7, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. 

(c) If the Company shall take any action affecting the Common Stock, other than any action described in Section 7, that in the opinion of
the Board of Directors would materially adversely affect the conversion rights of the Holders, then the Conversion Price for the Series B Preferred Stock may be adjusted, to the extent permitted by law, in such manner, and at such time, as the
Board of Directors may determine to be equitable in the circumstances. 

  
 16 

 (d) The Company covenants that it will at all times reserve and keep available, free from
preemptive rights, out of the aggregate of its authorized but unissued shares of Common Stock for the purpose of effecting conversion of the Series B Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of
all outstanding shares of Series B Preferred Stock not theretofore converted. For purposes of this Section 14(d), the number of shares of Common Stock that shall be deliverable upon the conversion of all outstanding shares of Series B
Preferred Stock shall be computed as if at the time of computation all such outstanding shares were held by a single Holder. 
 (e) The
Company covenants that any shares of Common Stock issued upon conversion of the Series B Preferred Stock shall be duly and validly issued and fully paid and nonassessable, free from preemptive rights and free from all taxes, liens, charges and
security interests with respect to the issuance thereof, except for transfer restrictions imposed by applicable securities laws and the Investment Agreement. 

(f) The Company shall pay all transfer, stamp and other similar taxes due with respect to the issuance or delivery of shares of Common Stock
or other securities or property upon conversion of the Series B Preferred Stock; provided, however, that the Company shall not be required to pay any tax that may be payable with respect to any transfer involved in the issuance or
delivery of shares of Common Stock or other securities or property in a name other than that of the Holder of the Series B Preferred Stock to be converted, and the Holder shall be responsible for any such tax. 

(g) The Series B Preferred Stock is not entitled to any preemptive or subscription rights in respect of any securities of the Company.

 (h) Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if
any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining
provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may
make such change as shall be necessary to render the provision in question effective and valid under applicable law. 
 (i) Series B
Preferred Stock may be issued in fractions of a share which shall entitle the Holder, in proportion to such Holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and have the benefit of all other
rights of Holders of Series B Preferred Stock. 
 (j) Subject to applicable escheat laws, any monies set aside by the Company in
respect of any payment with respect to shares of the Series B Preferred Stock, or dividends thereon, and unclaimed at the end of two years from the date upon which such payment is due and payable shall revert to the general funds of the
Company, after which reversion the Holders of such shares shall look only to the general funds of the Company for the payment thereof. Any interest accumulated on funds so deposited shall be paid to the Company from time to time. 

  
 17 

 (k) Except as may otherwise be required by law, the shares of Series B Preferred Stock shall
not have any voting powers, preferences and relative, participating, optional or other special rights, other than those specifically set forth in this Certificate of Designation or the Certificate of Incorporation. 

(l) The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of
the provisions hereof. 
 (m) If any of the voting powers, preferences and relative, participating, optional and other special rights of the
Series B Preferred Stock and qualifications, limitations and restrictions thereof set forth herein is invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other voting powers, preferences and
relative, participating, optional and other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof set forth herein which can be given effect without the invalid, unlawful or unenforceable voting
powers, preferences and relative, participating, optional and other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof shall, nevertheless, remain in full force and effect, and no voting powers,
preferences and relative, participating, optional or other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof herein set forth shall be deemed dependent upon any other such voting powers,
preferences and relative, participating, optional or other special rights of Series B Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein. 

(n) Shares of Series B Preferred Stock that (i) have not been issued on or before the Issue Date or (ii) have been issued and
reacquired in any manner, including shares of Series B Preferred Stock purchased or converted, shall (upon compliance with any applicable provisions of the laws of Delaware) have the status of authorized but unissued shares of preferred stock
of the Company undesignated as to series and may be designated or redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Company; provided that any issuance of such shares as Series B Preferred
Stock must be in compliance with the terms hereof. 
 (o) If any of the Series B Preferred Stock certificates shall be mutilated, lost,
stolen or destroyed, the Company shall issue, in exchange and in substitution for and upon cancellation of the mutilated Series B Preferred Stock certificate, or in lieu of and substitution for the Series B Preferred Stock certificate
lost, stolen or destroyed, a new Series B Preferred Stock certificate of like tenor and representing an equivalent amount of shares of Series B Preferred Stock, but only upon receipt of evidence of such loss, theft or destruction of such
Series B Preferred Stock certificate and indemnity, if requested, reasonably satisfactory to the Company and the Transfer Agent. 

  
 18 

 IN WITNESS WHEREOF, the Company has caused this Certificate of Designation to be duly executed
this 16th day of September. 
  

					
	XPO LOGISTICS, INC.
		
	By	 	 /s/ Gordon E. Devens

		 	Name:	 	Gordon E. Devens
		 	Title:	 	Senior Vice President and General Counsel

 [Signature Page to the Series B Preferred Certificate of Designations]Exhibit 10.03

 

February 15, 2012

 

Alex Lustberg

39 Park Terrace

Mill Valley, California 94941

 

Dear Alex:

 

Congratulations! I am pleased to extend
to you an offer of employment as VP Marketing with Lyris Inc., in the Marketing department reporting to Wolfgang Maasberg,
CEO. Your employment commencement date is February 28, 2012 and you will be working in our Emeryville, CA office.

 

The terms of this offer include:

 

		·	Your annualized compensation will be $210,000.00;

		·	Participation in the Lyris Executive Bonus Plan at target level 20% of your base salary paid quarterly which is based on company
performance, individual objectives, and subject to board approval. Payment of your first two quarterly bonuses will be at 100%.

		·	A sign-on bonus of $5,000 (net) to be included in first pay period.

		·	Medical, dental and vision plans;

		·	Flexible Spending Accounts for Healthcare & Dependent care;

		·	Life Insurance and LTD;

		·	15 days paid vacation per year;

		·	Participation in the Lyris 401(k) matching plan;

		·	A stock option grant of 450,000 shares, pending board approval, subject to the terms of the operative Stock Option Plan and
executed Stock Option Agreement, and whose price will be set based on the authorization of the Compensation Committee of the Board
of Directors.

		·	For the avoidance of doubt, for the purpose of your entitlement to the vesting of your shares, If Lyris is acquired or undergoes
a change of control (as defined in the J.L. Halsey 2005 Amended and Restated Equity Based Compensation Plan) within 24 months of
your employment and your employment is terminated without cause by the acquiring entity, any unvested options shall immediately
vest.

 

If Lyris is acquired or undergoes a change
in control and, as an executive, you are terminated “Without Cause” within two years (24 months) following a change
in control, you shall be entitled to:

 

		·	Base salary through the date of termination of your employment

		·	Six months base salary, at the rate in effect on the date of termination of employment

		·	Full vesting of 100% of the then unvested options based on fair market value at purchase

		·	COBRA benefits coverage for the executive and his family for up to six months

 

For this purpose, “Cause” shall
be defined as (i) your failure to perform your duties and obligations, hereunder to the satisfaction of the Company, which failure
is either not curable and/or is not remedied within 15 days after receipt of written notice from the Company; (ii) your commission
of an act of fraud upon, or willful misconduct toward, the Company and/or any of its affiliates; (iii) your material breach of
the PIIA, which in any case is not remedied within 15 days after receipt of written notice from the Company or Board of Directors
of the Company; (iv) your conviction of a felony (or a plea of nolo contender thereto) or any crime involving moral turpitude;
or (v) your failure to carry out or comply with, in any material respect and directive of the Board consistent with the terms of
the PIIA, which is not remedied within 15 days after receipt of written notice from the Board or the Company. Any written notice
from the Board or the Company pursuant to termination for cause shall specifically identify the failure that it deems to constitute
Cause.

 

    	 

    	 

    

  

As a condition of your employment, you
will be required to sign the Lyris’ Proprietary Information and Inventions Agreement (“PIIA”) and
to provide the Company with documents establishing your identity and right to work in the United States. Those documents must be
provided to the Company within three business days of your employment start date.

 

We wish to impress on you that you must
not bring to the Company any confidential or proprietary information or material of any former employer, disclose or use such information
or material in the course of your employment with the Company, or violate any other obligation to your former employers.

 

In addition, the Company reserves the
right to conduct a background investigation and/or reference check on all of its potential employees. Your offer of
employment is contingent upon satisfactory completion of such background investigation and/or reference check, if any, in the
sole discretion of the Company. All such background investigations and/or reference checks shall be conducted in accordance
with applicable state and federal laws.

 

You agree and understand that employment
with Lyris Inc. is “at-will,” meaning that it is not for any specified period of time and can be terminated by you
or by Lyris Inc. at any time, with or without advance notice, and for any or no particular reason or cause. You agree and understand
that it also means that job duties, title and responsibility and reporting level, compensation and benefits, as well as personnel
policies and procedures, may be changed at any time at-will by Lyris Inc. You understand and agree that nothing about the fact
or the content of this Agreement is intended to, nor should be construed to, alter the at-will nature of your employment with Lyris
Inc.

 

Again, I am pleased to extend this offer
and look forward to your acceptance of this position. Please sign and date this letter on the spaces provided below to acknowledge
your acceptance of the terms of this agreement and return this letter to Sophia Coyle in Human Resources via email at (scoyle@lyris.com)
or via fax (408) 351-9199 (private fax). This offer will remain in effect for a period of one week from receipt. This offer will
expire if not accepted by 5pm on Tuesday, February 21st, 2012.

 

Congratulations and welcome to the Lyris Team!

 

Sincerely,

 

Helen A. Pass

Senior Director, Human Resources

 

I agree to and accept employment with Lyris on the terms and
conditions set forth in this agreement. I understand and agree that my employment with the Company is at-will.

 

	Date: ______	 	 
	 	 	Alex Lustberg

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