Document:

Exhibit 4.2

 Exhibit 4.2 

EXECUTION VERSION 

CERTIFICATE OF DESIGNATION OF 

SERIES C 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 May 28, 2015, 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 C Convertible Perpetual Preferred Stock (the “Series C Preferred Stock”), consisting of 562,525 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 C 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 June 3, 2015 (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 C 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 C 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 C 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 C 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 C
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 C
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 C Preferred Stock. Each dividend shall be payable to the holders of
record of shares of Series C 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 C Preferred Stock
shall be entitled to cumulative dividends on the Series C 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, 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 C Preferred Stock, then a dividend shall be payable in respect of each share of Series C Preferred Stock for such period in an amount equal to the greater of (i) the amount otherwise payable in respect of

  
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such share of Series C Preferred Stock in accordance with the foregoing paragraph and (ii) the 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 C 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 C 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 C 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 C Preferred Stock outstanding shall be entitled
to a ratably proportionate amount of all dividends accumulating with respect to each outstanding share of Series C 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 C 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 C 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 C Preferred Stock and any Parity Stock, dividends may be declared and paid on the Series C Preferred Stock and such Parity Stock so long as the dividends are declared and paid pro rata so that the aggregate amounts of

  
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dividends declared per share on, and the amounts of such dividends declared in cash or in kind, as applicable, per share on, the Series C 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 C 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 C 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 C Preferred Stock is then
convertible (assuming the conversion of each share of Series C Preferred Stock), multiplied by (y) the number of shares of Common Stock or such other securities into which the shares of Series C 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 C 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 C 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 C 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 C 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 C
Preferred Stock of a Holder, such Holder’s shares of Series C 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 C 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 C 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 C 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 C 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 C 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 C Preferred Stock that is converted; (C) the place or places where certificates or evidence
of book-entry notation for such shares of Series C 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 C 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 C 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 and the right to receive any dividend declared but not yet paid pursuant to Section 2. 

(iii) Holders of shares of Series C 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 C 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 C 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 C 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 C Preferred Stock is then convertible) upon conversion of Series C Preferred Stock by delivering to each Holder
surrendering shares of Series C Preferred Stock for conversion a number of shares of Common Stock (or such other class or series of securities into which the Series C 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 

  
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such determination and the denominator shall be the sum of such number of shares and the total 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 

  
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exclusively in cash, any dividend or 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 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 

  
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shares) on the date of the Expiration Time, and (B) the denominator of which shall be equal to (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 C 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 C 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
C 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 

  
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Series C Preferred Stock were convertible immediately prior to such Transaction, after giving 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 C 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 C 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 C 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 C 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 C Preferred Stock and the shares of Common Stock issuable upon
conversion of the Series C 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 

  
 11 

 
requirements of the Securities Act and any other applicable securities laws, or pursuant to an exemption from registration under the Securities Act and any other applicable securities laws, or in
a transaction not subject to such laws. The Common Stock issuable upon conversion of the Series C Preferred Stock 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 May 29, 2015, 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) If shares of Series C Preferred Stock in certificated form are delivered upon the transfer, exchange or replacement of shares of Series C
Preferred Stock bearing the Restricted Stock Legend, or if a request is made to remove such Restricted Stock Legend on shares of Series C Preferred Stock, the shares of Series C 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 C Preferred Stock are not “restricted securities” within the meaning of Rule 144 under the Securities Act or may be transferred without any restrictions or conditions
under that Rule. Upon provision of such satisfactory evidence, the Transfer Agent, at the direction of the Company, shall countersign and deliver shares of Series C Preferred Stock that do not bear the Restricted Stock Legend. 

(c) Shares of Common Stock issued upon a conversion of the shares of Series C 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 C
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 C Preferred Stock as such. The Company shall be entitled to deduct and withhold from any payment of cash, shares of Series C Preferred Stock, shares of Common Stock or other consideration deliverable to a Holder of a share of
Series C 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 C Preferred Stock, the Company shall be entitled to deduct any such taxes from any subsequent payment of cash, shares of Series C Preferred Stock, shares of Common
Stock or other consideration otherwise deliverable to a Holder of a share of Series C 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 $45.00 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 C 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) “Investment Agreement”
means the Investment Agreement, dated as of May 29, 2015, by and among, the Company and the Purchasers set forth on the signature page thereto. 

(t) “Issue Date” has the meaning set forth in Section 1. 

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

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

(w) “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. 

(x) “Meeting End Date” shall mean October 3, 2015. 

(y) “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. 

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

(aa) “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. 

  
 14 

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

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

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

(gg) “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. 
 (hh) “Securities” has the
meaning set forth in Section 11(a). 
 (ii) “Securities Act” means the Securities Act of 1933, as amended. 

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

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

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

(mm) “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. 
 (nn) “Stockholder Approval” means the
stockholder approval of the proposals to issue Common Stock upon conversion of the Series C Preferred Stock for purposes of Rule 312 of the NYSE Listed Company Manual. 

  
 15 

 (oo) “Stockholder Approval Date” means the date on which the Stockholder
Approval is obtained. 
 (pp) “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. 
 (qq) “Substituted Preferred Stock” has the
meaning set forth in the Investment Agreement. 
 (rr) “Trading Day” means a day during which trading in securities
generally occurs on the New York Stock Exchange. 
 (ss) “Transaction” has the meaning set forth in Section 8. 

(tt) “Transfer Agent” means Computershare Trust Company, N.A. unless and until a successor is selected by the Company, and
then such successor. 
 (uu) “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 C 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 C 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 C Preferred Stock, the full number of shares of Common Stock deliverable upon the conversion of all
outstanding shares of Series C 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 C 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 C 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 C 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 C Preferred Stock to be converted, and the Holder shall be responsible for any such tax. 

(g) The Series C 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 C 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 C 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 C 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 C 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 C 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 C 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 C 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 C 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 C Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein. 

(n) Shares of Series C 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 C 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 C Preferred Stock must
be in compliance with the terms hereof. 
 (o) If any of the Series C 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 C Preferred Stock certificate, or in lieu of and substitution for the Series C Preferred Stock certificate lost, stolen or
destroyed, a new Series C Preferred Stock certificate of like tenor and representing an equivalent amount of shares of Series C Preferred Stock, but only upon receipt of evidence of such loss, theft or destruction of such Series C 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 3rd day of June, 2015. 
  

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

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

 [Signature Page to the Series C Preferred Certificate of Designations]Exhibit 4.1

 

 

NII Holdings, Inc.

2015 Incentive Compensation Plan

 

    	 

    	 

    

 

NII Holdings, Inc.

2015 Incentive Compensation Plan

 

1.           Purpose
of the Plan

 

The primary purpose of
the Plan is to assist the Company in attracting, retaining and motivating Directors, officers and other designated employees of
the Company and its Subsidiaries, and to further align their interests with the interests of the Company’s stockholders by
increasing their ownership interests in the Company, and/or providing incentives based on the financial performance of the Company
and its Subsidiaries.

 

2.           Definitions

 

2.1           “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

2.2           “Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by, or under direct or indirect
common control with, such specified Person. Unless the context requires otherwise, when a specified Person is not referenced, the
term “Affiliate” shall refer to Affiliates of the Company and/or its Subsidiaries.

 

2.3           “Award”
means a grant of an Option, Restricted Stock, Restricted Stock Unit or Cash-Based Incentive Award.

 

2.4           “Award
Agreement” means the agreement, letter, notice, certificate or other document which evidences an Award, and specifies the
terms and conditions of the Award, including the vesting requirements, Exercise Price, Goals or Performance Goals, exercise and/or
distribution provisions, and forfeiture provisions applicable to that Award. The Committee shall determine the form and substance
of Award Agreements. It is contemplated, generally, that Award Agreements, other than Cash-Based Incentive Awards, will be in the
form

 

    	 

    	 

    

 

 

of an agreement between the Company and
the Participant, and that Award Agreements evidencing Cash-Based Incentive Awards will be in the form of a certificate or other
notice from the Company to Participants describing the form, conditions and parameters of the Cash-Based Incentive Award.

 

2.5           “Board”
means the Board of Directors of the Company.

 

2.6           “Cash-Based
Incentive Award” means an Award granted pursuant to Section 9 hereof, that entitles the Participant to receive cash or shares
of Common Stock upon the attainment of specified Goals or Performance Goals during a performance period, as determined by the Committee.

 

2.7           “Cause”
shall mean Cause as such term is defined in any employment agreement between the Participant and the Company or its Subsidiaries
or Affiliates, or, if there is no such agreement that defines Cause, in an Award Agreement. If no such definition exists, “Cause”
shall exist with respect to a Participant if such Participant has: (i) committed an act of fraud, embezzlement, misappropriation
or breach of fiduciary duty against the Company, any Subsidiary or any Affiliate, or a felony involving the business, assets, or
customers of the Company, any Subsidiary or any Affiliate, or been convicted by a court of competent jurisdiction or pled guilty
or nolo contendere to any other felony or other crime involving moral turpitude; (ii) committed a material breach of any confidentiality,
non-compete, non-solicitation or business opportunity covenant or obligation owed by the Participant to the Company, any Subsidiary
or any Affiliate; (iii) used alcohol or drugs in a manner that materially interferes with the performance of Participant’s
duties; (iv) violated material written policies of the Company, any Subsidiary or any Affiliate; (v) engaged in wrongful conduct
materially harmful (whether financially, reputationally or otherwise) to the Company, any Subsidiary or any

 

    	-2-

    	 

    

 

 

Affiliate or (vi) failed to perform,
or exhibited gross negligence in the performance of, such Participant’s duties to the Company, any Subsidiary or any Affiliate,
in each case, after written notice and a 30-day cure period is provided to Participant; provided, that such cure right only applies
to the first instance of the conditions described in (iii), (iv), (v) or (vi) above and shall not apply to subsequent instances
of the same such conditions; provided, further that no cure right shall exist in respect of the conditions described in (i) and
(ii) above. A termination for Cause shall include a determination by the Committee following a termination of service that the
conditions described in (i) or (ii) existed during the service period and would have justified a termination by the Company for
Cause; provided, that such determination must be made within six months of the termination of service.

 

2.8           “Change
in Control” means the first occurrence of any of the events set forth in any one of the following paragraphs, in each case
with the Board of Directors determining by resolution the specific date of the triggering event:

 

(a)          The
Company is merged or consolidated or reorganized into or with another company or other legal entity, and as a result of such merger,
consolidation or reorganization less than a majority of the combined voting power of the then outstanding securities of such resulting
company or entity immediately after such transaction is held directly or indirectly in the aggregate by the holders of voting securities
of the Company immediately prior to such transaction, including voting securities issuable upon the exercise or conversion of options,
warrants or other securities or rights; or

 

(b)          The
Company sells or otherwise transfers all or substantially all of its assets to another company or other legal entity, and immediately
following such sale or other transfer of assets, less than a majority of the combined voting power of the

 

    	-3-

    	 

    

 

 

then outstanding securities of such company or other legal entity
is held directly or indirectly in the aggregate by the holders of voting securities of the Company immediately prior to such sale
or transfer, including voting securities issuable upon exercise or conversion of options, warrants or other securities or rights;
or

 

(c)          Individuals
who, as of the effective date of the Plan, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose
election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a person or entity other than the Board; provided, that this clause (c) shall only apply to the extent
the Common Stock is then listed or traded on a national securities exchange; or

 

(d)          Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company; or

 

(e)          An
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 50% or more of either the then outstanding shares
of the Company (“Outstanding Company Stock”), or the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors (“Outstanding Company Voting Securities”), excluding,
however, the

 

    	-4-

    	 

    

  

following: (i) any acquisition directly from the Company other
than the acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired
directly from the Company, (ii) any acquisition by the Company or any of its Subsidiaries, or (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries.

 

Notwithstanding the foregoing, a “Change
in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated
transactions immediately following which the record holders of the Common Stock of the Company immediately prior to such transaction
or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially
all of the assets of the Company immediately following such transaction or series of transactions.

 

2.9           "Chapter
11 Plan" means the First Amended Joint Plan of Reorganization Proposed by the Plan Debtors and Debtors in Possession and the
Official Committee of Unsecured Creditors dated April 20, 2015, as filed on the docket of the bankruptcy case styled In re NII
Holdings, Inc, et al., Case No. 14-12611 (SCC), commenced in the U.S. Bankruptcy Court for the Southern District of New York.

 

2.10         "Chapter
11 Plan Effective Date" shall have the meaning ascribed to such term in the Chapter 11 Plan.

 

2.11         “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.12         “Committee”
means the Compensation Committee of the Board, or such other committee or subcommittee designated by the Board to administer the
Plan. The Committee shall have at least two members, and all Committee members shall be both Non-Employee Directors and Outside
Directors. The Committee may designate a subcommittee of

 

    	-5-

    	 

    

 

 

members of the Committee, and/or officers
of the Company, to act on certain matters where such designation is necessary or desirable.

 

2.13         “Common
Stock” means the common stock of the Company.

 

2.14         “Company”
means NII Holdings, Inc.

 

2.15         "Confirmation
Order" shall have the meaning ascribed to such term in the Chapter 11 Plan.

 

2.16         “Director”
means a member of the Board.

 

2.17         “Employee”
means an individual who is employed as an employee by the Company, a Subsidiary or an Affiliate, including a director or an officer
who is an employee.

 

2.18         “Exercise
Price” means the exercise price per share of Common Stock of an Option.

 

2.19         “Fair
Market Value” means, on any given date, the closing price of a share of Common Stock on the principal national securities
exchange on which the Common Stock is listed or traded on such date or, if Common Stock was not traded on such date, on the last
preceding day on which the Common Stock was traded. Alternatively, if the Common Stock is not listed on any securities exchange,
the Fair Market Value shall be the value of Common Stock as determined in good faith by the Committee, consistent with applicable
legal requirements (including, if applicable, the requirements of Code Section 409A).

 

2.20         “Goal”
means any objective measure or target selected by the Committee, including, but not limited to, any measure or target based upon
one or more of the criteria listed in Appendix “A” attached hereto, that must be met by the time and in the manner
specified by the Committee. Goals may be based on Company-wide performance or other

 

    	-6-

    	 

    

 

 

performance levels, such as performance
of a Subsidiary, Affiliate or business unit. Goals may be defined in absolute terms or measured relative to other companies or
against a predefined index. Additionally, Goals may be expressed as a percentage change or in absolute value terms, or in combination
or in relationship to one another. Goals may be adjusted by the Committee.

 

2.21         “Incentive
Stock Option” means an Option which is designated as, and is intended to meet the requirements of, an incentive stock option
as defined in Code Section 422.

 

2.22         “Material
Business Event” means the Company (i) effects one or more stock dividends, stock split-ups, subdivisions or consolidations
of shares or (ii) engages in a transaction to which Code Section 424(a) applies.

 

2.23         “Named
Executive Officer” means a Participant who is one of the group of “covered employees,” as defined in the regulations
promulgated under Code Section 162(m).

 

2.24         
“Non-Employee Director” means a member of the Board who meets the definition of a “non-employee director”
under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act.

 

2.25         “Non-Qualified
Option” means an Option that is not intended to be, and/or does not meet the requirements of, an Incentive Stock Option.

 

2.26         “Option”
means any stock option granted from time to time under Section 6 of this Plan. Options granted under the Plan may be Non-Qualified
Options or Incentive Stock Options, as determined by the Committee.

 

2.27         “Outside
Director” means a member of the Board who meets the definition of an “outside director” under Treasury Regulation
§ 1.162-27(e)(3).

 

    	-7-

    	 

    

  

2.28         “Participant”
means an eligible individual to whom an Award is granted.

 

2.29         “Performance
Goal” means an objective goal subject to the provisions of Code Section 162(m) that must be met by the time and in the manner
specified by the Committee based upon one or more of the criteria listed on Appendix “A” attached hereto and made a
part hereof. Performance Goals may be based on Company-wide performance or other performance levels, such as performance of a Subsidiary,
Affiliate or business unit. Performance Goals may be defined in absolute terms or measured relative to other companies or against
a predefined index. Additionally, Performance Goals may be expressed as a percentage change or in absolute value terms, or in combination
or in relationship to one another. Performance Goals may be adjusted to account for Material Business Events as the Committee deems
appropriate and equitable, except where such action would result in the loss of the otherwise available exemption of the award
under Code Section 162(m).

 

2.30         “Person”
means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof; provided that the term “Person” does
not include the Company or any affiliate of the Company, and the term Person does not include any employee-benefit plan maintained
by the Company or any affiliate of the Company, or any person or entity organized, appointed, or established by the Company or
any affiliate of the Company for or pursuant to the terms of any such employee-benefit plan, unless the Committee determines that
such an employee-benefit plan or such person or entity is a “Person”.

 

2.31         “Plan”
means the NII Holdings, Inc. 2015 Incentive Compensation Plan herein set forth, as amended from time to time.

 

    	-8-

    	 

    

  

2.32         “Plan
Year” means the twelve-month period ending December 31st, each calendar year, provided that the plan year for
the first year shall be less than twelve months.

 

2.33         “Restricted
Stock” means an Award of Common Stock granted pursuant to Section 7 hereof, subject to such conditions and criteria as the
Committee may determine.

 

2.34         “Restricted
Stock Units” means an Award granted pursuant to Section 8 hereof, in the amount determined by the Committee, stated with
reference to a specified number of shares of Common Stock, that entitles the Participant to receive shares of Common Stock or cash
for each Restricted Stock Unit equal to the Fair Market Value of a share of Common Stock on the date of payment, upon the lapse
of a Restriction Period and/or subject to such other conditions and criteria as the Committee may determine.

 

2.35         “Restriction
Period” means the period during which an Award is subject to forfeiture. A Restriction Period shall not lapse until all conditions,
imposed under this Plan or under the applicable Award Agreement, have been satisfied.

 

2.36         “Subsidiary”
means, with respect to the Company, any corporation, partnership, association, limited liability company or other business entity
of which (i) if a corporation, a majority of the overall economic equity or a majority of the total voting power of shares of stock
entitled (regardless of whether, at the time, stock of any other class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) to vote in the election of directors, managers or trustees thereof
is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company
or a combination thereof; or (ii) if a partnership, association,

 

    	-9-

    	 

    

  

limited liability company or other business
entity, a majority partnership or other similar ownership interest thereof is, at the time, owned or controlled, directly or indirectly,
through a majority of the overall economic interest or a majority of the total voting power by the Company or one or more of the
other Subsidiaries of the Company or a combination thereof.

 

2.37         “Ten
Percent Stockholder” means a Person who, on any given date, owns, either directly or indirectly (taking into account the
attribution rules contained in Code Section 424(d)), shares possessing 10% or more of the total combined voting power of all classes
of shares of the Company or a Subsidiary.

 

2.38         “Termination
Date” means the day on which a Participant’s employment or service with the Company and its Subsidiaries and Affiliates
terminates or is terminated. If an Award is intended or required to comply with Code Section 409A, the term “Termination
Date” shall, with respect to such Award, mean “separation from service” as defined in Code Section 409A and the
regulations promulgated thereunder.

 

3.           Eligibility

 

3.1           Any
Director or any Employee of the Company, its Subsidiaries or Affiliates is eligible to participate in this Plan. The Committee
shall determine, in its sole discretion, the eligible Persons to whom Awards shall be made. The mere status of an individual as
an Employee or Director shall not entitle such individual to an Award hereunder; all Awards hereunder must be approved by the Committee
as provided for herein.

 

4.           Administration
and Implementation of Plan

 

4.1           The
Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority
to take, or cause to be taken, any and all action which it deems necessary to implement, carry out and administer the Plan, including
without limitation: (a) selecting the eligible Persons to whom Awards will be granted;

 

    	-10-

    	 

    

 

 

(b) determining the amount and type
of Awards to be granted to each Participant; (c) determining the terms and conditions of all Awards; and (d) determining
and interpreting the terms of Award Agreements. Additionally, the Committee may impose restrictions, including without limitation,
confidentiality, non-compete, non-recruitment and non-solicitation restrictions, as well as the attainment of Goals or Performance
Goals, on the grant, vesting, exercise and/or payment of any Award, as the Committee determines to be appropriate.

 

4.2           The
Committee shall have the power to adopt procedures for carrying out the Plan and to change such procedures as it shall, from time
to time, deem advisable. Any interpretation by the Committee of the terms and provisions of the Plan and/or any Award Agreement
and the administration thereof, and all actions taken by the Committee, shall be final and binding on all Participants, and any
Person claiming any rights through a Participant. Each Participant shall, as a condition to the Participant’s participation
hereunder, take whatever actions and execute whatever documents the Committee may, in its reasonable judgment, deem necessary or
advisable in order to carry out or effect the obligations or restrictions imposed on the Participant pursuant to the provisions
of this Plan and/or an Award Agreement.

 

4.3           The
Committee may (but is not required to) condition the vesting, exercise and/or payment of any Award or the lapse of any Restriction
Period (or any combination thereof) upon the achievement of one or more Goals or Performance Goals established by the Committee.
The Committee shall have discretion to determine the specific targets and parameters with respect to each category of Goals or
Performance Goals relative to any Award. Performance Goals for Awards to Named Executive Officers shall be established not later
than ninety (90) days after the beginning of the applicable performance period (or at

 

    	-11-

    	 

    

 

 

such other date as may be required or permitted
for “performance-based” compensation under Code Section 162(m)), and shall otherwise meet the requirements of Code
Section 162(m), including the requirement that the outcome of the Performance Goals be substantially uncertain at the time established,
and that the attainment of the Performance Goals be certified in writing by the Committee prior to paying the Award.

 

4.4           To
the extent applicable law so permits, the Committee, in its discretion, may delegate to one or more officers of the Company all
or part of the Committee’s authority and duties with respect to Awards to be granted to individuals who are not Named Executive
Officers or other officers, Directors or more than 10% beneficial owners of any class of the Company’s equity securities
that is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as determined by the Committee in accordance
with Section 16 of the Securities Exchange Act of 1934. The Committee may revoke or amend the terms of any such delegation at any
time, but such action shall not invalidate any prior actions of the Committee’s delegate(s) that were consistent with the
terms of the Plan and the Committee’s prior delegation. Notwithstanding any other provision of this Plan, all Awards, including
applicable Performance Goals, of Named Executive Officers or other officers, Directors or more than 10% beneficial owners of any
class of the Company’s equity securities that is registered pursuant to Section 12 of the Securities Exchange Act of 1934,
as determined by the Committee in accordance with Section 16 of the Securities Exchange Act of 1934, shall be determined and approved
by the Committee.

 

4.5           Notwithstanding
any other provision of the Plan to the contrary, no vesting date of any Award granted under the Plan to a Participant (but excluding
Awards to Non-Employee Directors and those made within six months of the effective date of the Plan) shall be

 

    	-12-

    	 

    

  

less than one year following the date the
Award is granted; provided, however, that (i) the Committee, in its sole discretion, may determine that, on an ad hoc basis, Awards
may be granted under the Plan without regard to the foregoing minimum vesting provisions in order to achieve a specified business
objective, such as an inducement to a new hire or a retention award to a key employee or group of key employees; (ii) Awards may
be granted to certain Participants under the Plan without regard to the foregoing minimum vesting provisions (x) if such Participant
is subject to laws and/or regulations imposing certain requirements or restrictions on the remuneration of such individual or (y)
in order to conform with local laws applicable to such Award; and (iii) nothing in this Section 4.5 shall preclude the Committee
from taking action, in its sole discretion, to accelerate the vesting of any Award upon circumstances it deems appropriate, including,
without limitation, upon or following a Change in Control or the Participant’s death, disability, retirement or involuntary
termination.

 

5.           Shares
Subject to the Plan

 

5.1           Subject
to adjustment as provided in Section 10 hereof, the total number of shares of Common Stock authorized and available for Awards
under the Plan shall be 5,263,158 (all of which may be issued as Incentive Stock Options). Awards granted under the Plan that are
settled in cash, in whole or in part, shall not count against the total number of shares of Common Stock available for Awards under
the Plan to the extent of such cash settlement. Subject to adjustment as provided in Section 10 hereof and the other share counting
rules in the Plan, the total number of shares of Common Stock available for Awards under the Plan will be reduced by (a) one share
of Common Stock for every one share of Common Stock subject to an Option granted under this Plan, and (b) 1.5 shares of Common
Stock for every one share of Common Stock subject to an Award other than an Option granted under this Plan.

 

    	-13-

    	 

    

  

5.2          The
following limits (each, an “Annual Award Limit”, and collectively, “Annual Award Limits”) shall, subject
to adjustment as provided in Section 10, apply to grants of Awards under this Plan:

 

(a)          Options:
The maximum aggregate number of shares of Common Stock subject to Options which may be granted in any one Plan Year to any one
Participant shall be 1,000,000. All such Options may be issued as Incentive Stock Options.

 

(b)          Restricted
Stock: The maximum aggregate number of shares of Common Stock subject to Awards of Restricted Stock that are intended to qualify
as “qualified performance-based compensation” under Code Section 162(m) which may be granted in any one Plan Year to
any one Participant shall be 500,000.

 

(c)          Restricted
Stock Units: The maximum aggregate number of shares of Common Stock subject to Restricted Stock Units that are intended to qualify
as “qualified performance-based compensation” under Code Section 162(m) which may be granted in any one Plan Year to
any one Participant shall be 500,000 shares of Common Stock.

 

(d)          Cash-Based
Incentive Awards: The maximum aggregate Cash-Based Incentive Award cash payments that are intended to qualify as “qualified
performance-based compensation” under Code Section 162(m) that may be made in any one Plan Year to any one Participant shall
be $3,000,000.

 

5.3          (a)          Shares
of Common Stock covered by an Award shall be removed from the Plan share reserve as of the date of grant (except in the case of
Awards payable in either stock or cash, which shares of Common Stock will not be removed from the Plan share reserve until payment),
and the following shares of Common Stock may not again be made available for issuance as Awards under the Plan: (i) shares of Common
Stock not issued or

 

    	-14-

    	 

    

  

delivered as a result of the net settlement
of an outstanding Option; (ii) shares of Common Stock used to pay the Exercise Price or withholding taxes related to an outstanding
Option; and (iii) shares of Common Stock repurchased on the open market with the proceeds of Option Exercise Price.

 

(b)          To
the extent that an Award is canceled, terminates, expires, is forfeited or otherwise lapses for any reason, including the non-attainment
of Goals or Performance Goals, any shares of Common Stock subject to the Award will again, to the extent of such cancellation,
termination, expiration, forfeiture or lapse, be available for issuance pursuant to Awards granted under the Plan.

 

(c)          To
the extent that an Award is not an Option, shares of Common Stock withheld by the Company or otherwise used to satisfy the payment
of withholding taxes relating to such outstanding Award will again be available for issuance as Awards granted under the Plan on
and after the date the Plan becomes effective as provided in Section 13.1 through the day prior to the 10-year anniversary of the
effective date of the Plan.

 

(d)          Substitute
Awards granted pursuant to Section 11 of the Plan shall not count against the shares of Common Stock otherwise available for issuance
under the Plan or any Annual Award Limits.

 

5.4           It
is intended generally that Awards granted under this Plan shall not constitute “non-qualified deferred compensation”
as defined under Code Section 409A. If, however, any Award is, or becomes, subject to any of the requirements of Code Section 409A,
such Award, and the applicable Award Agreement, shall be interpreted and administered to be consistent with such requirements (including
any required six-month delay on payments to

 

    	-15-

    	 

    

  

“specified employees”), and
the Committee shall be entitled, on a unilateral basis, to amend, reform, interpret and administer this Plan, such Award and such
Award Agreement accordingly.

 

6.          Options

 

Options shall be subject
to the following terms and conditions:

 

6.1           Each
Option shall be evidenced by an Award Agreement. Such Award Agreement shall conform to the requirements of the Plan, and may contain
such other provisions as the Committee shall deem advisable, including without limitation, the number of shares of Common Stock
underlying the Option, the type of the Option, the Exercise Price, any applicable Goals or Performance Goals, and forfeiture provisions
(including forfeitures and exercise rights following the Participant’s Termination Date). The terms of Option Awards need
not be uniform among all such Awards granted hereunder.

 

6.2           The
Exercise Price of an Option shall be determined by the Committee; however, the Exercise Price per share shall not be less than
the Fair Market Value of a share of Common Stock underlying such Option on the date of grant. In the case of any Incentive Stock
Option granted to a Ten Percent Stockholder, the Exercise Price per share shall not be less than 110% of the Fair Market Value
of a share of Common Stock on the date of grant.

 

6.3           Award
Agreements evidencing Options shall specify when and under what terms and conditions an Option shall become vested and may be exercisable,
which may include the attainment of specified Goals or Performance Goals. The term of an Option shall in no event be greater than
ten years (five years in the case of an Incentive Stock Option granted to a Ten Percent Stockholder). The Option shall also expire,
be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder and/or under the applicable
Award Agreement.

 

    	-16-

    	 

    

  

6.4           Incentive
Stock Options may only be granted to Employees of the Company or a Subsidiary (provided, however, that solely for this purpose,
grants of Incentive Stock Options to an employee of a Subsidiary may only be made if the Company controls at least a majority of
the total voting power of such Subsidiary, as determined in accordance with Code Section 424 and the regulations thereunder). Incentive
Stock Options shall not be granted to any nonresident alien in return for services performed outside of the United States. Any
Incentive Stock Options, which first become exercisable in any one calendar year that are in excess of the $100,000 statutory limit
shall be treated as Non-Qualified Stock Options, with respect only to such excess. Participants shall notify the Company of any
sale or other disposition of shares of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition
occurs (i) within two years of the grant of an Incentive Stock Option or (ii) within one year of the issuance of shares of Common
Stock to the Participant upon the exercise of an Incentive Stock Option. Such notice shall be in writing and directed to the Secretary
of the Company, or such Secretary’s designee. The Company shall not be liable to any Participant or any other person if the
Internal Revenue Service or any court or other authority having jurisdiction over such matter determines for any reason that an
Option intended to be an Incentive Stock Option does not qualify as an Incentive Stock Option.

 

6.5           The
total number of shares of Common Stock subject to an Option may, but need not, vest and become exercisable in periodic installments,
which installments may, but need not, be equal. An Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance, the attainment of Goals or Performance Goals, or other criteria) as
the Committee may deem appropriate. The vesting

 

    	-17-

    	 

    

  

provisions of individual Options, as provided
in the Award Agreement, may vary. The Committee may, in its sole discretion, accelerate the vesting and exercisability of Options.

 

6.6          The
Participant shall not have any rights as a stockholder (including no rights to dividends or other distributions) with respect to
any shares of Common Stock underlying an Option until such time as the Option has been exercised and the shares of Common Stock
have been so issued.

 

6.7          Subject
to vesting and other restrictions provided for hereunder or in an Award Agreement, an Option may be exercised, and payment of the
Exercise Price made, by a Participant (or, where appropriate, a permitted transferee of the Participant) only by notice (in the
form prescribed by the Committee) to the Company specifying the number of shares of Common Stock to be purchased.

 

6.8          The
aggregate Exercise Price and any related taxes shall be paid in full upon the exercise of the Option. Payment must be made by one
of the following methods:

 

(a)          cash
or a certified or bank cashier’s check;

 

(b)          if
approved by the Committee in its sole discretion, shares of Common Stock previously owned and held for such period of time as necessary
to avoid a charge for financial accounting purposes and having an aggregate Fair Market Value on the day prior to the date of exercise
equal to the aggregate Exercise Price;

 

(c)          a
broker assisted cashless exercise methodology approved by the Committee; or

 

(d)          any
combination of such methods of payment or any other legal method acceptable to the Committee in its discretion.

 

    	-18-

    	 

    

  

7.           Restricted
Stock

 

An Award of Restricted
Stock shall be subject to the following terms and conditions:

 

7.1           Each
Award of Restricted Stock shall be evidenced by an Award Agreement. Such Award Agreement shall conform to the requirements of the
Plan, may contain such terms, conditions and provisions as the Committee shall deem advisable including, without limitation, any
applicable Restriction Period, any applicable Goals or Performance Goals, forfeiture provisions (including forfeiture following
the Participant’s Termination Date), and the price, if any, to be paid by the Participant for each share of Common Stock
subject to the Award. Such terms and conditions need not be uniform among all Awards.

 

7.2           Unless
the Committee determines otherwise and as provided in the applicable Award Agreement, during the Restriction Period, the Participant
shall have (i) the right to vote the shares of Restricted Stock and, (ii) unless the Restricted Stock Award includes Goals or Performance
Goals, the right to receive the Participant’s allocable share of any cash dividends declared and paid by the Company on its
Common Stock. Should the Restricted Stock Award be subject to Goals or Performance Goals, the Committee may, in its discretion
and to the extent the Company pays dividends on the Common Stock during the Restriction Period, determine that the Participant
may be credited with dividend equivalent units equal in value to the amount of dividends the Participant would have received had
he/she owned the target number of shares of Common Stock underlying the Award.  Such dividend equivalent units, if so determined
by the Committee, shall be accumulated but shall not be paid during the Restriction Period and, if all applicable conditions are
satisfied and the restrictions imposed under the Award lapse, shall be paid to the Participant in cash, or shares of Common Stock
of equal value, as soon as reasonably practical following the expiration of the Restriction Period and, in any event, no

 

    	-19-

    	 

    

  

later than the fifteenth (15th) day of
the third (3rd) month following the end of the year during which the Restriction Period ends.

 

7.3          The
Committee may (but shall not be required to) condition the payment of an Award of Restricted Stock upon the Participant’s
continued service over a period of time with the Company, its Subsidiaries or its Affiliates, or satisfaction of Goals or Performance
Goals as specified in the Award Agreement. If the specified conditions are not attained, the Participant shall forfeit the Award,
or portion of the Award with respect to which those conditions are not attained, and the underlying Common Stock shall be forfeited.

 

7.4          Upon
the expiration of the Restriction Period, if all applicable conditions have been satisfied, the restrictions imposed under the
Award shall lapse with respect to the applicable number of shares of Restricted Stock as determined by the Committee. The
Committee may, in its sole discretion, accelerate the vesting of Restricted Stock.

 

7.5          If
applicable, the purchase price per share of Common Stock acquired pursuant to the Award of Restricted Stock and any related taxes
shall be paid in one of the following ways:

 

(a)          in
cash at the time of purchase;

 

(b)          at
the discretion of the Committee, and to the extent legally permissible, according to a deferred payment or other similar arrangement
with the Participant;

 

(c)          at
the discretion of the Committee, by services rendered or to be rendered to the Company;

 

(d)          through
net settlement, or

 

(e)          in
any other form of legal consideration that may be legally permissible and acceptable to the Committee in its sole discretion.

 

    	-20-

    	 

    

  

8.           Restricted
Stock Units

 

An Award of Restricted
Stock Units shall be subject to the following terms and conditions:

 

8.1           Each
Award of a Restricted Stock Unit shall be evidenced by an Award Agreement. Such Award Agreement shall conform to the requirements
of the Plan and may contain such other provisions as the Committee shall deem advisable, including, without limitation, the applicable
Restriction Period, any applicable Goals or Performance Goals, forfeiture provisions (including forfeiture following the Participant’s
Termination Date) and payment provisions. Such terms and conditions need not be uniform among all Awards.

 

8.2           During
the Restriction Period the Participant shall not be entitled to exercise voting rights with respect to shares of Common Stock underlying
the Award.

 

8.3           At
the time the Restricted Stock Unit is granted, the Committee may, in its discretion and to the extent the Company pays dividends
on the Common Stock during the Restriction Period, determine that the Participant may be credited with dividend equivalent units
equal in value to the amount of dividends the Participant would have received had he/she owned the target number of shares of Common
Stock underlying the Award. Such dividend equivalent units, if so determined by the Committee, shall be accumulated but shall not
be paid during the Restriction Period and if all applicable conditions are satisfied and the Award is distributed in accordance
with Section 8.5 below, shall be paid to the Participant in cash, or shares of Common Stock of equal value, as soon as reasonably
practical following the expiration of the Restriction Period and, in any event, no later than the fifteenth (15th) day of the third
(3rd) month following the end of the year during which the Restriction Period ends.

 

8.4           The
Committee may condition the expiration of the Restriction Period with respect to a grant of Restricted Stock Units upon the Participant’s
continued service

 

    	-21-

    	 

    

  

over a period of time with the Company,
its Subsidiaries or Affiliates, or satisfaction of Goals or Performance Goals as specified in the Award Agreement. If the specified
conditions are not attained, the Participant shall forfeit the portion of the Award with respect to which those conditions are
not attained, and the underlying Common Stock and Award, including dividend equivalent units, if any, shall be forfeited.

 

8.5           Upon
the expiration of the Restriction Period, if all applicable conditions have been satisfied, the Participant shall be entitled to
receive a share of Common Stock for each share underlying the Restricted Stock Unit Award that is then free from restriction, or
cash equal to the Fair Market Value of such shares of Common Stock on the date the Restriction Period expires, and such shares
or cash shall be delivered to the Participant (or, where appropriate, the Participant's legal representative) as soon as reasonably
practical thereafter, and, in any event, no later than the fifteenth (15th) day of the third (3rd) month following the end of the
year during which the Restriction Period ends. The Committee may, in its sole discretion, accelerate the vesting of Restricted
Stock Units.

 

9.           Cash-Based
Incentive Awards

 

A Cash-Based Incentive Award shall be subject
to the following terms and conditions:

 

9.1           Each
Cash-Based Incentive Award shall be evidenced by an Award Agreement or Committee resolutions, if the Cash-Based Incentive
Award is to be settled solely in cash. Such Award Agreements or Committee resolutions shall conform to the requirements of the
Plan and may contain such other provisions as the Committee shall deem advisable.

 

9.2           The
applicable Award Agreement or Committee resolutions shall set forth the Goals or Performance Goals and/or continued employment
requirements that must be satisfied in order for the Participant to receive payment under the Cash-Based Incentive 

 

    	-22-

    	 

    

  

Award. If the specified conditions are not attained, the
Participant shall forfeit the Award, or the portion of the Award with respect to which those conditions are not attained, and
the underlying Common Stock, if any.

 

9.3           The
Participant shall not have any rights as a stockholder with respect to a Cash-Based Incentive Award until such time as the Cash-Based
Incentive Award has been earned and settled, provided that such settlement is made in shares of Common Stock.

 

9.4           The
Award Agreement shall specify the form of payment under a Cash-Based Incentive Award, which may be in cash, by the issuance of
shares of Common Stock, or by a combination thereof.

 

9.5           If
and to the extent the applicable conditions are satisfied during the applicable performance period, the Company shall distribute
the Award to the Participant as soon as reasonably practical following the expiration of the applicable performance period, and,
in any event, no later than the fifteenth (15th) day of the third (3rd) month following the expiration of the performance period.

 

10.         Adjustments
upon Changes in Capitalization

 

10.1        In
the event of a Material Business Event, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’
rights under this Plan, may substitute or adjust, as applicable:

 

(a)          the
number and/or kind of shares that may be issued under this Plan or under particular types of Awards;

 

(b)          the
number and/or kind of shares subject to outstanding Awards;

 

(c)          the
Exercise Price or other economic terms of any outstanding Awards;

 

    	-23-

    	 

    

  

(d)          the
Annual Award Limits;

 

(e)          the
amount and/or type of payment to be received under Awards; and

 

(f)          any
other value determinations applicable to outstanding Awards.

 

10.2        Additionally,
upon the occurrence of a Material Business Event, the Committee, in its sole discretion, may make appropriate adjustments or modifications
in the terms and conditions of any outstanding Awards under this Plan, including, but not limited to, modifications and accelerations
of vesting provisions, Performance Goals and Restriction Periods.

 

10.3        The
determination of the occurrence of a Material Business Event, as well as any appropriate adjustments or modifications shall be
made in the sole discretion of the Committee, and its determinations shall be conclusive and binding on all interested parties,
including Participants under this Plan. Notwithstanding the foregoing, the Committee shall not make any adjustments or modifications
to an Award where such action would result in the loss of an otherwise available exemption of the Award under Code Section 162(m).

 

11.          Substitute
Awards

 

11.1         The
Committee may grant Awards under the Plan in substitution for stock-based awards held by employees of another entity who become
employees of the Company, a Subsidiary or an Affiliate as a result of a merger or consolidation of the former employing entity
with the Company, a Subsidiary or an Affiliate, or the acquisition by the Company, a Subsidiary or an Affiliate of property or
stock of the former employing corporation. The Committee may direct that the substitute Awards be granted on such terms and conditions
as the Committee considers appropriate in the circumstances.

 

    	-24-

    	 

    

  

12.          Change
in Control

 

12.1         Unless
an outstanding Award is assumed, replaced or converted to an equivalent award by the continuing entity (a “Replacement Award”),
or as otherwise determined by the Committee, upon a Change in Control (i) each outstanding Award of Restricted Stock or Restricted
Stock Units shall be fully vested, except that any Awards of Restricted Stock or Restricted Stock Units that are subject to Goals
or Performance Goals shall vest at the target level, (ii) each outstanding Award of Options shall be fully exercisable (in whole
or in part at the discretion of the holder), except that any Awards of Options that are subject to Goals or Performance Goals shall
become exercisable at the target level, and (iii) each outstanding Cash-Based Incentive Award shall be earned pro-rata based on
the fraction (using the nearest whole months) of the performance period that has elapsed from the beginning of the performance
period until the Change in Control and assuming achievement of Goals and Performance Goals at the target level (if applicable).
Any Replacement Award shall be fully exercisable, vested or earned (except that Replacement Awards subject to Goals or Performance
Goals or other performance goals shall be exercisable, vested or earned at the target level) if, within twelve (12) months after
a Change in Control, (a) the Participant’s employment or other service with the Company (or other Affiliate to which the
Participant provides services) is terminated by the Company or such Affiliate without Cause and not in the circumstances described
in the following sentence, or (b) the Participant voluntarily terminates his or her service with the Company or such Affiliate
for Good Reason (if applicable). Notwithstanding the preceding sentence, the exercisability, vesting or payment of such Replacement
Award shall not be accelerated or enhanced (as contemplated in the preceding sentence) if the Participant’s employment or
services with the Company or an Affiliate is terminated within twelve (12) months after a Change in Control for Cause or because
(i) of the Participant’s retirement or

 

    	-25-

    	 

    

  

voluntary withdrawal from employment, other
than for Good Reason; (ii) of the Participant’s death; (iii) the Participant becomes permanently disabled within the
meaning of, and begins actually to receive disability benefits pursuant to, the long-term disability plan in effect for, or applicable
to, the Participant; (iv) of the Participant’s failure to return to work after a temporary lay-off; or (v) of the Participant’s
withdrawal or loss of employment due to personal leave, other than for Good Reason. To the extent applicable, any such Replacement
Awards shall satisfy the substitution requirements of Code Section 409A and the Incentive Stock Option rules. An Option that becomes
exercisable pursuant to this Section shall remain exercisable thereafter in accordance with the terms of the Award Agreement.

 

12.2         In
connection with a Change in Control, the Committee may in its sole discretion provide that such Awards and all rights thereunder
(after applying the provisions of Section 12.1) shall terminate on the Change in Control and each Participant shall receive, in
exchange therefor, a cash payment as described below; provided that if the calculations below do not amount to a positive cash
payment, all rights under such Award shall terminate without payment in any event. In the case of Options such cash payment shall
equal the amount (if any) by which (A) the per share consideration to be paid for each outstanding share of Common Stock in (or
other applicable per share value) the Change in Control multiplied by the number of shares subject to such outstanding Options,
exceeds (B) the aggregate Exercise Price of such Options. In the case of Restricted Stock and Restricted Stock Units, the cash
payment shall be based on the value of the underlying Common Stock (calculated as the per share consideration to be paid for each
outstanding share of Common Stock in (or other applicable per share value) the Change in Control).

 

    	-26-

    	 

    

  

12.3        Notwithstanding
the foregoing, the time for payment for an Award shall not be accelerated under this Section to the extent such acceleration would
be contrary to the payment timing or other rules under Code Section 409A.

 

12.4        The
following defined terms shall apply for purposes of Sections 12.1 through 12.4:

 

(a)          “Base
Salary” means with respect to each Participant, the annual base salary or retainer, exclusive of any bonus, special pay (including
any retention pay) or other benefits he or she may receive, but without giving effect to any salary reductions authorized by the
Participant under any qualified or non-qualified deferred compensation plan of the Company or an Affiliate, in effect (i) on
the date immediately preceding the date of the relevant Change in Control or (ii) on the date of the Participant’s termination
of employment or services with the Company or an Affiliate, whichever is the highest.

 

(b)          “Good
Reason” shall mean Good Reason as such term is defined in any employment agreement between the Participant and the Company
or its Subsidiaries or Affiliates, or, if there is no such agreement that defines Good Reason, in an Award Agreement. If no such
definition exists, “Good Reason” shall mean, with respect to any Participant (i) any material and adverse change
in or reduction of the Participant’s duties and responsibilities, as compared in each case to the corresponding circumstances
in place on the date immediately preceding the first occurrence of a Change in Control (the “Reference Date”); (ii)
a relocation of the principal work location at which the Participant is based on the Reference Date that would increase such Participant’s
one way travel by more than forty (40) miles; or (iii) a material reduction in Base Salary or Target Bonus not agreed
to by the Participant.

 

    	-27-

    	 

    

  

(c)          “Target
Bonus” means the amount obtained by multiplying the Participant’s target bonus percentage as established and in effect
for the Participant (i) on the Reference Date, or (ii) on the date of the Participant’s termination of employment or services
with the Company or an Affiliate, whichever is higher, by the Participant’s Base Salary.

 

13.          Effective
Date, Termination and Amendment

 

13.1         The
Plan has been authorized for adoption and implementation by the Board on or promptly after the Chapter 11 Plan Effective Date
pursuant to the Chapter 11 Plan and the Confirmation Order and shall become effective upon the Chapter 11 Plan Effective Date.
The Plan shall remain in full force and effect until the earlier of June 25, 2025 (ten years following the effective date
of the Plan), or the date it is terminated by the Board. The Plan shall be deemed to have satisfied the stockholder approval requirements
in accordance with Section 16 of the Securities Exchange Act of 1934 and Code Section 162(m).

 

13.2         The
Committee shall have the power to amend, suspend or terminate the Plan at any time, provided that any such termination of the Plan
shall not affect Awards outstanding under the Plan at the time of termination. Notwithstanding the foregoing, an amendment will
be contingent on approval of the Company’s stockholders, to the extent required by law or by the rules of any stock exchange
on which the Company’s securities are traded.

 

13.3         Subject
to the limitations set forth in this Plan, including in Section 15.2, the Committee may amend any outstanding Award in whole or
in part from time to time. Any such amendment which the Committee determines, in its sole discretion, to be necessary or appropriate
to conform the Award to, or otherwise satisfy, any legal requirement (including without limitation the provisions of Code Sections
162(m) or 409A or the regulations or rulings promulgated thereunder), may be made retroactively or prospectively and without the
approval or consent of the Participant. Additionally, the Committee may, without the approval or consent

 

    	-28-

    	 

    

  

of the Participant, make adjustments in
the terms and conditions of an Award in recognition of unusual or nonrecurring events affecting the Company or the financial statements
of the Company in order to prevent the dilution or enlargement of the benefits intended to be made available pursuant to the Award.
Other amendments or adjustments to Awards not expressly contemplated in the two preceding sentences may be made by the Committee
with the consent of the affected Participant(s).

 

14.          Transferability

 

Awards may not be pledged,
assigned or transferred for any reason during the Participant's lifetime, and any attempt to do so shall be void. Notwithstanding
the generality of the foregoing, if the Award Agreement provides, an Award (other than Incentive Stock Options) may be transferred
by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family
members or a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under
Securities Exchange Commission Rule 16b-3 as in effect from time to time. Any transferee of a Participant shall, in all cases,
be subject to the Plan and the provisions of the Award Agreement between the Company and the Participant; provided, however, that
such transferee may not transfer the Award except by will or the laws of descent and distribution.

 

15.          General
Provisions

 

15.1         The
Committee may postpone any grant, exercise, vesting or payment of an Award for such time as the Committee in its sole discretion
may deem necessary in order to permit the Company: (i) to effect, amend or maintain any necessary registration of the Plan or the
shares of Common Stock issuable pursuant to the Award under applicable securities laws; (ii) to take any action in order to (A)
list such shares of Common Stock or other shares of stock of the Company on a stock exchange if shares of Common Stock or other
shares

 

    	-29-

    	 

    

  

of stock of the Company are not then listed
on such exchange, or (B) comply with restrictions or regulations incident to the maintenance of a public market for its shares
of Common Stock or other shares of stock of the Company, including any rules or regulations of any stock exchange on which the
shares of Common Stock or other shares of stock of the Company are listed; (iii) to determine that such shares of Common Stock
in the Plan are exempt from such registration or that no action of the kind referred to in (ii)(B) above needs to be taken; (iv)
to comply with any other applicable law, including without limitation, securities and tax laws; or (v) to otherwise comply with
any prohibition on such acts or payments during any applicable blackout period. Additionally, the granting, exercise, vesting or
payment of an Award shall be postponed during any period that the Company or any Affiliate is prohibited from doing or permitting
any of such acts under applicable law, including without limitation, during the course of an investigation of the Company or any
Affiliate, or under any contract, loan agreement or covenant or other agreement to which the Company or any Affiliate is a party.
The Company shall not be obligated by virtue of any terms and conditions of any Award Agreement or any provision of the Plan to
recognize the grant, exercise, vesting or payment of an Award or to grant, sell or issue shares of Common Stock or make any such
payments in violation of any law, including any securities or tax laws, or the laws of any government having jurisdiction thereof
or any of the provisions hereof. Any such postponement shall not extend the term of the Award, and neither the Company nor its
directors and officers nor the members of the Committee or the Board or any delegate thereof shall have any obligation or liability
to any Participant or to any other person with respect to shares of Common Stock or payments as to which the Award shall lapse
because of such postponement.

 

    	-30-

    	 

    

  

15.2         Except
as provided in connection with a Material Business Event as described in Section 10 or Section 12.2, without the approval of the
Company’s stockholders, neither the Board nor the Committee shall take any action to change or amend the terms of outstanding
Awards to reduce the Exercise Price of outstanding Options or cancel Options in exchange for cash or other Awards or Options with
an Exercise Price that is less than the Exercise Price of the original Options.

 

15.3         Nothing
contained in this Plan, nor any Award granted pursuant to this Plan nor any Award Agreement, shall constitute or create any employment
or other relationship, or confer upon any Participant any right to continued employment or service with the Company or any Subsidiary
or Affiliate, nor interfere in any way with the right of the Company, a Subsidiary or an Affiliate to terminate the employment
or service of any Participant at any time.

 

15.4         Nothing
contained in this Plan, and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create
a trust of any kind, or a fiduciary relationship between the Committee, the Company or its Subsidiaries or Affiliates, or their
officers or other representatives or the Board, on the one hand, and the Participant, the Company, its Subsidiaries or Affiliates
or any other person or entity, on the other. The Plan shall be unfunded, and the Company shall not be required to segregate any
assets that may at any time be represented by grants under this Plan. Any liability of the Company to any person with respect to
any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan.

 

15.5         For
purposes of this Plan, a transfer of employment between the Company, its Subsidiaries and its Affiliates shall not be deemed a
termination of employment.

 

    	-31-

    	 

    

 

 

15.6         The
Company shall indemnify and hold harmless the members of the Committee, the Board, and any delegate thereof, from and against any
and all liabilities, costs and expenses incurred by such persons as a result of any act or omission to act in connection with the
performance of such person’s duties, responsibilities and obligations under the Plan, to the maximum extent permitted by
applicable law.

 

15.7         Participants
shall be responsible to make appropriate provision for all taxes required to be withheld in connection with any Award or the transfer
of shares of Common Stock pursuant to this Plan. Such responsibility shall extend to all applicable Federal, state, local or foreign
withholding taxes. The Company shall have the right to retain from the payment under an Award the number of shares of Common Stock
or a portion of the value of such Award equal in value to the amount of any required withholdings.

 

15.8         In
order to facilitate the making of any grant of an Award under this Plan, the Committee may provide for such special terms for Awards
to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of
America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom, which
special terms may be contained in an Appendix attached hereto. Moreover, the Committee may approve such supplements to or amendments,
restatements or alternative versions of this Plan as it may consider necessary or appropriate for such purposes, without thereby
affecting the terms of this Plan as in effect for any other purpose, and the Secretary or other appropriate officer of the Company
may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements,
amendments or restatements, however, shall include any provisions that are inconsistent with the terms of this Plan as then in
effect unless this Plan could have been

 

    	-32-

    	 

    

 

 

amended to eliminate such inconsistency
without further approval by the stockholders of the Company.

 

15.9         To
the extent applicable to the type of Award, each Participant may designate a person or persons to receive in the event of his or
her death, any Award or any amount payable pursuant thereto, to which he or she would then be entitled under the terms of the Plan.
Such designation will be made upon forms supplied by and delivered to the Company and may be revoked in writing.

 

15.10         The
adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive
arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem
desirable, including, without limitation, the granting of stock options otherwise than under the Plan, to the extent permitted
by the rules of the exchange on which the shares are listed or applicable law, and such arrangements may be either applicable generally
or only in specific cases.

 

15.11         To
the extent that Federal laws (such as the 1934 Act, the Code or the Employee Retirement Income Security Act of 1974) do not otherwise
control, this Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of
Delaware and shall be construed accordingly.

 

15.12         The
duties and obligations of the Company, the Board, the Committee and each member thereof shall be determined only with reference
to the Plan, and no implied duties or obligations shall be read into the Plan or any Award Agreement on the part of the Company,
the Board, the Committee or any member thereof.

 

    	-33-

    	 

    

 

 

15.13         Notwithstanding
anything to the contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant
Awards and administer the Plan with respect to such Awards. Any such actions by the Board shall be subject to the applicable rules
of the principal securities market on which shares of Common Stock are traded. In any such case, the Board shall have all the authority
granted to the Committee under the Plan.

 

16.          Compliance
with Section 409A of the Code. 

 

16.1         To
the extent applicable, it is intended that this Plan and any Awards made hereunder comply with the provisions of Code Section 409A,
so that the income inclusion provisions of Code Section 409A(a)(1) do not apply to the Participants. This Plan and any Awards
made hereunder will be administered in a manner consistent with this intent. Any reference in this Plan to Code Section 409A
will also include any regulations or any other formal guidance promulgated with respect to such Section by the U.S. Department
of the Treasury or the Internal Revenue Service.

 

16.2         Neither
a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation
(within the meaning of Code Section 409A) payable under this Plan and Awards hereunder to any anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Code Section 409A, any deferred
compensation (within the meaning of Code Section 409A) payable to a Participant or for a Participant’s benefit under
this Plan and Awards hereunder may not be reduced by, or offset against, any amount owing by a Participant to the Company or any
of its Subsidiaries.

 

16.3         If,
at the time of a Participant’s separation from service (within the meaning of Code Section 409A), (i) the Participant
will be a specified employee (within the meaning of Code Section 409A and using the identification methodology selected by
the

 

    	-34-

    	 

    

  

Company from time to time) and (ii) the Company makes a
good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Code Section 409A)
the payment of which is required to be delayed pursuant to the six (6) month delay rule set forth in Code Section 409A in
order to avoid taxes or penalties under Code Section 409A, then the Company will not pay such amount on the otherwise scheduled
payment date but will instead pay it, without interest, on the fifth (5th) business day of the seventh (7th)
month after such separation from service.

 

16.4         Notwithstanding
any provision of this Plan and the Award Agreements hereunder to the contrary, in light of the uncertainty with respect to the
proper application of Code Section 409A, the Company reserves the right to make amendments to this Plan and Awards hereunder
as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Code Section 409A. In any
case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on
a Participant or for a Participant’s account in connection with this Plan and Awards hereunder (including any taxes and penalties
under Code Section 409A), and neither the Company nor any of its Affiliates will have any obligation to indemnify or otherwise
hold a Participant harmless from any or all of such taxes or penalties.

 

    	-35-

    	 

    

 

appendix
a

 

GOAL CRITERIA

 

	Performance
    Measure	 	General
    Definition
	AATP Margin	 	AATP divided by Sales
	 	 	 
	Adjusted After-Tax Profit (AATP)	 	APTP minus book income taxes (reported tax rate applied to APTP).  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Adjusted Earnings Before Interest and Taxes (AEBIT)	 	EBIT excluding gain on asset sales
	 	 	 
	Adjusted Pre-Tax Profit (APTP)	 	Income before provision for income taxes plus interest expense plus implied interest on capitalized operating leases.  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Average Revenue Per User (ARPU)	 	Subscriber revenues divided by the weighted average number of handsets in commercial service 
	 	 	 
	Capitalized Economic Profit	 	Economic Profit divided by a predetermined rate reflecting the cost of capital
	 	 	 
	Capitalized Entity Value	 	Sum of average invested capital in the business and the Capitalized Economic Profit
	 	 	 
	Capitalized Equity Value	 	Capitalized Entity Value minus total debt
	 	 	 
	Cashflow	 	Net cash provided by operating activities less net cash used for investing activities
	 	 	 
	Cashflow Return on Capital	 	Cashflow divided by average invested capital
	 	 	 
	Cashflow Return on Capitalized Entity/Equity Value	 	Cashflow divided by Capitalized Entity/Equity Value
	 	 	 
	Cashflow Return on Investment	 	The amount comprised of net income plus depreciation and amortization minus working capital expenditures, divided by the amount comprised of gross fixed assets plus net working capital excluding cash and debt

 

    	1

    	 

    

  

	Performance Measure	 	General Definition
	Change in Capital	 	Capital expenditures plus/minus change in operating working capital plus net proceeds from asset sales
	 	 	 
	Change in Operating Working Capital	 	GAAP cash flow of accounts receivable (including allowance for doubtful accounts), inventory, and accounts payable
	 	 	 
	Change in Price of Shares	 	Percentage increase in per-share price.  This measure may be adjusted for change in capitalization (as described in the Plan).
	 	 	 
	Change in Working Capital	 	Increase or decrease in working capital
	 	 	 
	Churn 	 	Measure of subscribers who leave during a given time period
	 	 	 
	Customer Satisfaction	 	Measure of subscriber perception of performance
	 	 	 
	Debt	 	Third-party debt recorded on the balance sheet.  The measure may include or exclude lease obligations, accounts payable, and current or long-term accrued liabilities
	 	 	 
	Debt Leverage	 	Change in company’s debt leverage rates
	 	 	 
	Debt Reduction	 	Decrease in total debt from one period to another
	 	 	 
	Earnings Before Interest and Taxes (EBIT)	 	Earnings minus interest and taxes.  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	 	Earnings minus interest, taxes, depreciation, and amortization.  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Earnings Per Share	 	Primary or fully diluted earnings per share.  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Economic Profit	 	AATP minus a charge for capital
	 	 	 
	Economic Value Added (EVA)	 	Net operating results with reduction for capital costs

 

    	-2-

    	 

    

  

	Performance Measure	 	General Definition
	Employee Engagement	 	Measure of employees’ satisfaction, commitment and engagement
	 	 	 
	Free Cash Flow	 	Cashflow available for distribution among securities holders
	 	 	 
	Market Capitalization	 	Value of the tradable shares of the Company
	 	 	 
	Market Share	 	Increase in percentage share of target market
	 	 	 
	Net income	 	Net income as reported in NII Holdings, Inc.’s annual financial statements or the books and records of its segments.  The measure may include or exclude income from discontinued operations, extraordinary items, changes in accounting principles, and restructuring expense
	 	 	 
	Net Income Return on Capital	 	Net Income divided by average invested capital
	 	 	 
	Net Subscriber Additions	 	Number of new subscribers in a given period and/or market
	 	 	 
	OIBDA	 	Operating income before depreciation and amortization
	 	 	 
	OIBDA Margin	 	OIBDA divided by total operating revenues
	 	 	 
	Operating Expenses	 	Change in operational expenses
	 	 	 
	Operating Margin	 	Operating Profit divided by revenues
	 	 	 
	Operating Profit	 	Revenues less operating expenses (with or without reduction for taxes)
	 	 	 
	Operating Working Capital	 	Net accounts receivable plus inventory minus accounts payable
	 	 	 
	Personal Performance	 	Individualized measure of Participant’s performance
	 	 	 
	Return on Assets (ROA)	 	Net Income divided by average total assets
	 	 	 
	Return on Equity (ROE)	 	Net Income divided by average stockholders’ equity
	 	 	 
	Return on Gross Investment	 	Sum of Net Income plus depreciation divided by sum of average invested capital plus accumulated depreciation
	 	 	 
	Return on Invested Capital	 	Net Income of AATP divided by average invested capital

 

    	-3-

    	 

    

  

	Performance Measure	 	General Definition
	Return on Net Assets (RONA)	 	Net Income, APTP, or income before taxes, divided by average net assets
	 	 	 
	Sales	 	Net sales of products and service revenues
	 	 	 
	Sales Growth	 	Percentage change in Sales from year to year
	 	 	 
	Subscriber to Employee Ratio	 	Ratio of number of customers to number of employees
	 	 	 
	Subscriber Growth	 	Increase in number or ratio of subscribers on a gross or net basis
	 	 	 
	Total Enterprise Value	 	Market Capitalization plus debt
	 	 	 
	Total Return to Stockholders	 	Percentage change in stockholder value (stock price plus reinvested dividends)
	 	 	 
	Working Capital	 	Current assets minus current liabilities

 

    	-4-

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