Document:

exv10w2

Exhibit 10.2

On July 22, 2008, the Board of Directors of the Company approved the below Change of Control
Severance Plan (As Amended and Restated Effective July 22, 2008) in order to make amendments
relating to compliance with Section 409A of the Internal Revenue Code, a change in the Company’s
employee classification system and other non-material changes.

NII HOLDINGS, INC.

CHANGE OF CONTROL SEVERANCE PLAN

(As Amended and Restated Effective July 22, 2008)

     1. General Statement of Purpose. The Board of Directors (the “Board”) of NII Holdings, Inc.
(the “Company”) has considered the effect a change of control of the Company may have on key
management employees of the Company and its subsidiaries. Given the level of acquisition and change
of control activity in today’s business environment, the Board recognizes and understands the
concerns such employees have for their careers. The possible occurrence of a change of control
transaction may cause key management employees to consider major career changes in an effort to
assure financial security for themselves and their families. The Board believes it is imperative to
diminish the inevitable distraction of key management employees by virtue of the personal
uncertainties and risks created by pending or threatened change of control and to encourage the
full attention and dedication of those employees to the Company currently and in the event of any
threatened or pending change of control, and to provide the Company’s key management employees with
compensation and benefit arrangements upon a change of control which ensure that the compensation
and benefit expectations of those employees will be satisfied and which are competitive with those
of comparable companies.

     The Board recognizes that the possibility of a change of control exists and desires to assure
itself of both the present and future continuity of management, desires to establish certain
severance benefits for certain of its employees applicable in a change of control, and wishes to
ensure that such employees are not practically disabled from discharging their duties in respect of
a proposed or actual transaction involving a change of control.

     2. Effective and Termination Dates. The Plan was originally effective as of July 23, 2003.
This Amendment and Restatement is effective July 22, 2008 (the “Effective Date”). The Plan will
automatically terminate when all benefits payable hereunder have been paid.

     3. Definitions. Where the following words and phrases appear in the Plan, they shall have the
respective meanings set forth below:

          (a) “Accrued Benefits” means Base Salary, Equity Compensation and other cash or non-cash
benefits earned, vested, or accrued prior to a Covered Employee’s termination under Section 4(b),
as well as reimbursement for reasonable and necessary business expenses incurred by a Covered
Employee prior to termination under Section 4(b) and in accordance with the Company’s applicable
expense reimbursement policies.

          (b) “Base Salary” means, with respect to each Covered Employee, the annual base salary,
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 Covered Employee
under any qualified or non-qualified deferred compensation plan of an Employer, in effect (i) on
the date immediately preceding the date of the relevant Change of Control or (ii) on the date of
the Covered Employee’s termination of employment with his or her Employer, whichever is the
highest.

          (c) “Cause” shall mean with respect to any Covered Employee:

     (i) conviction of a felony involving an intentional act of fraud, embezzlement or
theft in connection with his employment with an Employer;

 

 

     (ii) intentional wrongful damage to property, contractual interests or business
relationships of an Employer; or

     (iii) intentional wrongful disclosure of secret processes or confidential information
of an Employer in violation of any agreement with or policy of the Employer.

For purposes of the Plan, no act or failure to act on the part of the Covered Employee shall be
deemed “intentional” if it was due primarily to an error in judgment or negligence, but shall be
deemed “intentional” only if done or omitted to be done by the Covered Employee not in good faith
and without reasonable belief that his action or omission was in the best interest of his or her
Employer. Nothing herein will limit the right of the Covered Employee or his beneficiaries to
contest the validity or propriety of any such determination.

          (d) “Change of Control” means the occurrence of any of the following events:

     (i) 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

     (ii) The Company sells or otherwise transfers all or substantially all of its assets
to another company or other legal entity, and as a result of such sale or other transfer of
assets, less than a majority of the combined voting power of the then outstanding
securities of such company or other entity immediately after such sale or transfer 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

     (iii) Individuals who, as of the Effective Date, 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 shareholders, was approved by a vote
of at least two thirds 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; or

     (iv) Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company; or

     (v) An acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (“Exchange Act”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 50% or more of either the then outstanding shares (“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 following: (x) 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, (y) any acquisition by
the Company or any of its subsidiaries, or (z) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any of its subsidiaries; or

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     (vi) Approval by the Board of Directors of the Company of a resolution that a Change
of Control has occurred.

          (e) “Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto.

          (f) “Covered Employee” means any individual to whom the Plan applies pursuant to Section 4(a)
below.

          (g) “Employee Benefits” means benefits provided to all employees in similarly situated
positions to a Covered Employee under the Company’s pension (qualified and nonqualified), welfare
and fringe benefit plans, programs, policies and agreements.

          (h) “Employer” means the Company, each of its wholly owned subsidiaries, and any other
subsidiary of the Company to which the Plan has been extended by the Board (or by the Compensation
Committee of the Board) and which has adopted the Plan with the consent of the Company.

          (i) “Equity Compensation” means stock options, restricted stock, performance shares and other
equity incentive awards.

          (j) “Good Reason” means, with respect to any Covered Employee:

     (i) any material and adverse change in or reduction of the Covered Employee’s duties,
responsibilities and authority, as compared in each case to the corresponding circumstances
in place on the date immediately preceding the first occurrence of a Change of Control
after the Effective Date (the “Reference Date”); or

     (ii) a relocation of the principal work location at which the Covered Employee is
based on the Reference Date to a location more than 40 miles away from such location or a
requirement by the Company that the Covered Employee travel on Company business to a
substantially greater extent than as compared in each case to the corresponding
circumstances prior to the Reference Date which results in a material adverse change in
employment conditions for such Covered Employee; or

     (iii) a material reduction in Base Salary, Target Bonus or bonus potential not agreed
to by the Covered Employee, or any other significant adverse financial consequences
associated with the Covered Employee’s employment in comparison to the corresponding
circumstances in place on the Reference Date; or

     (iv) a discontinuance of Employee Benefits following a Change in Control that, in the
aggregate, materially reduces in the aggregate the actuarial equivalent value of Employee
Benefits available to the Covered Employee prior to the Change in Control; or

     (v) a failure by the Company to comply with any material provisions of this Plan,
other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the
Covered Employee; or

     (vi) a failure by any successor after a Change of Control has occurred to assume and
agree to perform the obligations under the Plan (unless the successor has a legal
obligation to assume the Plan and perform the obligations hereunder by operation of law or
otherwise).

Any reasonable, good faith determination by the Covered Employee that “Good Reason” exists will be
presumptively correct for purposes of this Plan.

          (k) “Plan” means the NII Holdings, Inc. Change of Control Severance Plan.

          (l) “Severance Compensation” means Severance Pay and other benefits provided by Sections 5(a)
and (b).

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          (m) “Severance Pay” means the amounts payable as set forth in Sections 5(a) and (b).

          (n) “Severance Period” means the period of time commencing on the date of the first occurrence
of a Change of Control and continuing until the earlier of (i) eighteen (18) months after such date
or (ii) the Covered Employee’s death.

          (o) “Target Bonus” means the amount obtained by multiplying the Covered Employee’s target
bonus percentage as established and in effect for the Covered Employee (i) on the Reference Date,
or (ii) on the date of the Covered Employee’s termination of employment with his or her Employer,
whichever is the highest, by the Covered Employee’s Base Salary.

     4. Eligibility; Termination Following a Change of Control.

          (a) Subject to the limitations described below, the Plan applies to all individuals who are
recognized by an Employer as regular full-time salaried employees in any of the position levels (as
determined on the Effective Date, and adjusting as appropriate for any changes to the Company’s
system of classifying employees by position level implemented subsequent to such date) or as
otherwise designated in Exhibit A, who are a select group of highly compensated or management
employees and either (i) employed by an Employer on or after the date that (x) the Company enters
into a definitive agreement providing for a Change of Control, (y) a third party publicly announces
a bona fide intention to commence a tender offer for outstanding voting securities of the Company
or otherwise to take actions that are reasonably designed and expected to result in a Change of
Control or (z) a Change of Control otherwise occurs (the date described in the foregoing clauses
(x), (y) or (z) and (ii) below, as appropriate, the “Trigger Date”) or (ii) terminated prior to the
date on which a Change of Control occurs, and if it is reasonably demonstrated by the Covered
Employee that such termination of employment was at the request of a third party who has taken
steps reasonably calculated to effect a Change of Control or otherwise arose in connection with or
anticipation of a Change of Control, then for purposes of this Agreement the Trigger Date shall
mean the date immediately prior to the date of such termination of employment.

          (b) A Covered Employee will be entitled to the Severance Compensation described in Section 5
if (i) the Covered Employee’s employment is terminated by an Employer during the Severance Period
or prior thereto as provided in Section 4(a)(ii) and such termination is without Cause and is not
described in Subsection (d) of this Section, or (ii) the Covered Employee voluntarily terminates
his employment with his Employer during the Severance Period for Good Reason.

          (c) A termination of employment described in Subsection (b) of this Section will not affect
any rights that the Covered Employee may have pursuant to any agreement, policy, plan, program or
arrangement of the Company or any other Employer providing Employee Benefits, which rights shall be
governed by the terms thereof. Any Covered Employee entitled to Severance Compensation pursuant to
this Plan shall not be entitled to cash severance under any other Company severance plan or
program; provided, that, if necessary to comply with Section 409A of the Code (or any regulations
thereunder), the Severance Compensation of any affected Covered Employee hereunder shall be paid at
the same time and in the same form as provided under the other severance plan or program.

          (d) Notwithstanding the preceding provisions of this Section, a Covered Employee will not be
entitled to Severance Compensation if his employment with an Employer is terminated during the
Severance Period for Cause or because:

     (i) of the Covered Employee’s retirement or voluntary withdrawal from employment,
other than as described in Subsection (b)(ii) of this Section;

     (ii) of the Covered Employee’s death;

     (iii) the Covered Employee 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 Covered Employee;

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     (iv) of the Covered Employee’s failure to return to work after a temporary lay-off; or

     (v) of the Covered Employee’s withdrawal or loss of employment due to personal leave,
other than as described in Subsection (b)(ii) of this Section.

     5. Severance Compensation.

          (a) If a Covered Employee’s employment is terminated in circumstances that entitle the Covered
Employee to Severance Compensation pursuant to Section 4(b), the Company will: (i) pay to the
Covered Employee as Severance Pay in a single lump sum payment the amounts set forth in Exhibit A
within thirty (30) days after the termination date, (ii) for certain of the Covered Employees
designated in Exhibit A, pay COBRA continuation coverage premiums (as provided in Section 5(b)
below) pursuant to COBRA, (iii) provide the Covered Employee with outplacement assistance (as
defined in Section 5(c) below), and (iv) provide reimbursement of legal, accounting and other fees
and expenses (as defined in Section 5(h) below).

          (b) The Company shall pay the full premium cost of continued group health care coverage
(except that the Company shall not pay for continued coverage under any Company health care
flexible spending account) for the Covered Employee identified in Exhibit A and any of his or her
dependents participating in the Company’s group health care plans under the federal law known as
“COBRA” for up to and the lesser of (i) eighteen months or (ii) the time in which the Covered
Employee becomes reemployed by another employer and is eligible to receive group health coverage
benefits under another employer provided plan; provided, however, that such payments are contingent
on the Covered Employee’s timely election of COBRA continuation coverage and shall terminate early
for any reason permitted under COBRA. In the event the group health care coverage is provided by
the Company on a self-insured basis, any premiums paid by the Company for such coverage shall be
treated as paid by the Covered Employee on an after-tax basis. Except with respect to the
foregoing premium payment provisions, this Plan does not otherwise modify the Company’s standard
COBRA procedures and administration, including, without limitation, the Covered Employee’s
obligation to notify the Company promptly if the Covered Employee or any of his or her dependents
become eligible for benefits under the group health plan of another employer or entitled to
Medicare benefits.

          (c) For six (6) months after a Covered Employee is entitled to Severance Compensation pursuant
to Section 4(b), the Company shall provide outplacement assistance to the Covered Employee through
an outside management consulting firm selected by the Company and at the sole cost of the Company.

          (d) Without limiting the rights of a Covered Employee at law or in equity, if the Company
fails to make any payment or provide any benefit required to be made or provided hereunder on a
timely basis, the Company will pay interest on the amount or value thereof at an annualized rate of
interest equal to the so-called composite “prime rate” as quoted from time to time during the
relevant period in the Eastern Edition of The Wall Street Journal plus the lesser of 5% or the
maximum rate of interest allowed by law. Such interest will be payable quarterly. Any change in
such prime rate or maximum rate will be effective on and as of the date of such change.

          (e) Notwithstanding any provision of the Plan to the contrary, the rights and obligations
under this Section 5 will survive any termination or expiration of the Plan.

          (f) Anything in this Plan to the contrary notwithstanding, in the event that it shall be
determined that any payment or distribution of cash or other compensation or benefit by the Company
or any of its affiliates to or for the benefit of any Covered Employee, whether paid or payable or
distributed or distributable pursuant to the terms of this Plan or otherwise pursuant to or by
reason of any other agreement, policy, plan, program or arrangement (a “Payment”), would be subject
to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto), by
reason of being considered “contingent on a change in ownership or control” of the Company, within
the meaning of Section 280G of the Code (or any successor provision thereto) or to any similar tax
imposed by state or local law, or any interest or penalties with respect to such tax (such tax or
taxes, together with any such interest and penalties, being hereafter collectively referred to as
the “Excise Tax”), then the Covered Employee will be entitled to receive from

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the Company an additional payment or payments (collectively, a “Gross-Up Payment”). The Gross-Up
Payment will be in an amount such that, after payment by the Covered Employee of all taxes
(including any interest or penalties imposed with respect to such taxes), including any Excise Tax
imposed upon the Gross-Up Payment, the Covered Employee retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed on the Payment. The Gross-Up Payment shall be paid to the Covered
Employee prior to the date on which any Payment part or all of which is subject to the Excise Tax
is made to the Covered Employee. The Covered Employee shall cooperate in all reasonable respects
with the Company (but at the Company’s sole cost and expense) to attempt to minimize any such tax
liability (such cooperation not to include foregoing or deferring any payments or benefits to which
he or she is otherwise entitled), and if the Covered Employee later receives a refund of any part
of the Excise Tax, such Covered Employee shall promptly after receipt of such refund pay back to
the Company so much of the Gross-Up Payment as is required to avoid a windfall. Any Gross-Up
Payment subject Section 409A of the Code shall not exceed the amount permitted, and shall be paid
within the timeframe required, under Treas. Reg. section 1.409A-3(i)(1)(v).

          (g) Notwithstanding anything to the contrary contained in this Plan, on termination of
employment of any Covered Employee pursuant to Section 4(b), the Company shall (i) pay to the
Covered Employee all Accrued Benefits and (ii) pay or provide to the Covered Employee any others
amounts or benefits required to be paid or provided or which the Covered Employee is eligible to
receive under any plan, program, policy, practice, contract or agreement of the Company or its
subsidiaries.

          (h) If a Covered Employee incurs legal, accounting or other fees and expenses in a good faith
effort to obtain benefits under this Plan, the Company shall reimburse the Covered Employee upon
written request and submission of invoices for reasonable legal, accounting or other fees and
expenses, regardless of whether the Covered Employee prevails; provided, however that such
reimbursement shall apply only with respect to a termination of employment of any Covered Employee
pursuant to Section 4(b) or a successor’s failure to assume this Plan after a Change in Control.
The existence of any controlling case or regulatory law which is directly inconsistent with the
position taken by the Covered Employee shall be evidence that the Covered Employee did not act in
good faith. The amount of expenses eligible for reimbursement hereunder during one year shall not
be reduced or otherwise affected by the amount of expenses eligible for reimbursement in any other
year. The Company shall reimburse any such expenses subject Section 409A of the Code within the
timeframe required under Treas. Reg. section 1.409A-3(i)(1)(iv) or other applicable regulation
under Section 409A.

          (i) For purposes of any payment under this Plan to which Section 409A of the Code applies, an
employee’s termination of employment shall have the same meaning as “separation from service” under
Section 409A (and any related regulations). In the event that an employee is a “specified
employee” within the meaning of Section 409A (as determined by the Company or its delegate), any
payment under this Section which is subject to Section 409A shall not be made or begin until the
expiration of the 6-month period following Employee’s termination of employment. Such delay in
payment shall not apply, however, if, at the time of the employee’s termination, no equity
securities of the Company (or any of its affiliates) is publicly traded (with the meaning of
Section 409A) on an established securities market or otherwise. To the extent applicable, this
Plan is intended to comply with the distribution and other requirements of Section 409A. For any
Plan payments or reimbursements subject to Section 409A, the Plan shall be interpreted and applied
to the maximum extent possible consistent with Section 409A.

     6. No Mitigation Obligation. The Company hereby acknowledges that it will be difficult for a
Covered Employee to find reasonably comparable employment following his termination of employment
with his Employer. Accordingly, the provision of Severance Compensation by the Company to a Covered
Employee in accordance with the terms of the Plan is hereby acknowledged by the Company to be
reasonable, and a Covered Employee will not be required to mitigate the amount of any payment
provided for in the Plan by seeking other employment or otherwise, nor will any profits, income,
earnings or other benefits from any source whatsoever create any mitigation, offset, reduction or
any other obligation on the part of a Covered Employee hereunder or otherwise.

     7. Certain Payments Not Considered for Other Benefits, etc. Payments of Severance Pay will not
be included as earnings for the purpose of calculating contributions or benefits under any Employee
Benefit

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plan of the Company or of any other Employer. Such payments and payments of Severance Pay will not
be made from any benefit plan funds, and shall constitute an unfunded, unsecured obligation of the
Company.

     8. Employment Rights. Nothing expressed or implied in the Plan shall create any right or duty
on the part of an Employer or a Covered Employee to have the Covered Employee remain in the
employment of an Employer at any time prior to or following a Change of Control.

     9. Withholding of Taxes. The Company shall withhold from any amounts payable under the Plan
all federal, state, city or other taxes as shall be required pursuant to any law or government
regulation or ruling.

     10. Successors and Binding Effect.

          (a) The Company shall require any successor (including without limitation any persons
acquiring directly or indirectly all or substantially all of the business and/or assets of the
Company whether by purchase, merger, consolidation, reorganization or otherwise, and such successor
shall be deemed the Company for the purposes of the Plan) to assume and agree to perform the
obligations under the Plan in the same manner and to the same extent the Company would be required
to perform if no such succession had taken place. The Plan shall be binding upon and inure to the
benefit of the Company and any successor to the Company, but shall not otherwise be assignable,
transferable or delegable by the Company.

          (b) The rights under the Plan shall inure to the benefit of and be enforceable by each Covered
Employee’s personal or legal representatives, executors, administrators, successors, heirs,
distributees and/or legatees.

          (c) The rights under the Plan are personal in nature and neither the Company nor any Covered
Employee shall, without the consent of the other, assign, transfer or delegate the Plan or any
rights or obligations hereunder except as expressly provided in this Section 10. Without limiting
the generality of the foregoing, a Covered Employee’s right to receive payments hereunder shall not
be assignable, transferable or delegable, whether by pledge, creation of a security interest or
otherwise, other than by a transfer by his or her will or by the laws of descent and distribution
and, in the event of any attempted assignment or transfer contrary to this Section 10, the Company
shall have no liability to pay any amount so attempted to be assigned, transferred or delegated.

          (d) The obligation of the Company to make payments and/or provide benefits hereunder shall
represent an unsecured obligation of the Company.

     11. Governing Law. The validity, interpretation, construction and performance of the Plan
shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflict of laws of such State.

     12. Validity. If any provisions of the Plan or the application of any provision hereof to any
person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of the
Plan and the application of such provision to any other person or circumstances shall not be
affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent (and only to the extent) necessary to make it enforceable, valid and legal.

     13. Captions. The captions in the Plan are for convenience of reference only and do not
define, limit or describe the scope or intent of the Plan or any part hereof and shall not be
considered in any construction hereof.

     14. Construction. The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender and the singular shall be deemed to include the plural, unless the
context clearly indicates to the contrary.

     15. Type of Plan. This Plan is intended to be, and shall be interpreted as, an unfunded
employee welfare benefit plan (within the meaning of Section 3(1) of ERISA) for a select group of
management or highly

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compensated employees (within the meaning of Section 2520.104-24 of Department of Labor
Regulations). The Plan is a “top hat” employee benefit plan subject to ERISA’s enforcement
provisions, and it shall be interpreted, administered and enforced in accordance with law.

     16. Administration of the Plan.

          (a) In General: The Plan shall be administered by the Company, which shall be the named
fiduciary under the Plan. The Company has all power and authority necessary or convenient to
administer this Plan, including, but not limited to, the exclusive authority and discretion: (i) to
construe and interpret this Plan; (ii) to decide all questions of eligibility for and amount of
benefits under this Plan; (iii) to prescribe procedures to be followed and the forms to be used by
the Covered Employees pursuant to this Plan; and (iv) to request and receive from all Covered
Employees such information as the Company determines is necessary for the proper administration of
this Plan.

          (b) Delegation of Duties: The Company may delegate any of its administrative duties,
including, without limitation, duties with respect to the processing, review, investigation,
approval and payment of any Severance Pay to a named administrator or administrators.

          (c) Regulations: The Company shall promulgate any rules and regulations it deems necessary in
order to carry out the purposes of the Plan or to interpret the terms and conditions of the Plan;
provided, however, that no rule, regulation or interpretation shall be contrary to the provisions
of the Plan.

          (d) Claims Procedure: Except as otherwise provided in the Plan (including, without limitation,
in the final sentence of the definition of the term “Good Reason”), the Company shall determine the
rights of any employee of the Company to any Severance Compensation hereunder. Claims for benefits
under the Plan may be filed in writing with the Company. Written notice of the disposition of a
claim shall be furnished to the employee within 90 days after the claim is filed. Up to an
additional 90 days may be taken to render an initial benefit determination if the Company concludes
that such an extension is necessary for reasons beyond the control of the Plan. If an extension is
necessary, the Company must notify the employee, within the initial determination period, of the
special circumstances requiring the extension and the date by which the Plan expects to make a
determination. In the event the claim is denied, the reasons for the denial shall be specifically
set forth in the notice in language calculated to be understood by the employee, pertinent
provisions of the Plan shall be cited, and, where appropriate, an explanation as to how the
employee can perfect the claim will be provided. In addition, the employee shall be furnished with
an explanation of the Plan’s appeal procedure, including a statement of the employee’s right to
bring a civil action following an adverse benefit determination on review. If the Company fails to
follow the claims procedures set forth in the Plan, or otherwise required by Department of Labor
regulations, while making the initial benefit determination, the employee will be deemed to have
exhausted his administrative remedies under the Plan and may chose either to proceed under the
Plan’s Appeal Procedure, described in paragraph (e) below, or pursue civil litigation under ERISA §
502(a).

          (e) Appeals Procedure: Any employee who has been denied a benefit by a decision of the Company
pursuant to paragraph (d) above shall be entitled to request the Company to give further
consideration to his claim by filing with the Company a written appeal of the claim denial. Such
appeal request, together with a written statement of the reasons why the employee believes his
claim should be allowed, shall be filed with the Company no later than 60 days after receipt of the
written notification provided for in paragraph (d) above. The Company shall then conduct a review
of the appeal request within the next 60 days, during which the employee may be represented by an
attorney or any other representative of his choosing and during which the employee shall have an
opportunity to submit written comments, documents, records and other information relating to the
claim which the Company will take into consideration regardless of whether such information was
submitted or considered in the initial benefit determination. During such review, as well as in the
event of an adverse benefit determination on review, the employee or his representative shall have
an opportunity to review all documents, records, and other information that are pertinent to the
specific claim at issue. A final decision on the claim shall be made by the Company within 60 days
of receipt of the written appeal (unless there has been an extension of 60 days due to special
circumstances, provided the delay and the special circumstances occasioning it are communicated to
the employee within the initial appeal period). Such decision shall be written in a manner
calculated to be

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understood by the employee and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is based. Notwithstanding the
foregoing, to the extent any of the time periods specified in this Section are amended by law or
Department of Labor Regulation, then the time frames specified herein shall automatically be
changed in accordance with such law or Regulation.

          (f) Requirement of Receipt: Upon receipt of any Severance Compensation hereunder, the Company
reserves the right to require any Covered Employee to execute a receipt evidencing the amount and
payment of such Severance Compensation.

     17. Amendment and Termination. The Company reserves the right, except as hereinafter provided,
at any time and from time to time, to amend, modify, change or terminate the Plan, including any
Exhibit hereto; provided, however, after the Effective Date, any such amendment, modification,
change or termination that adversely affects the rights of any Covered Employee under the Plan will
not take effect and be applicable to any Covered Employee if either (A) (1) a Trigger Date (as
defined in Section 4(a) of this Plan) occurs within six months after the date on which such
amendment, modification, change or termination is made and (2) a Change of Control related to or
growing out of the specific event causing the occurrence of the Trigger Date occurs thereafter or
(B) such amendment, modification, change or termination is made at any time (1) during the period
between the occurrence of a relevant Trigger Date and the occurrence of the a Change of Control
related to or growing out of the specific event causing the occurrence of the Trigger Date or (2)
at or after the occurrence of a Change of Control (and before all payments and benefits hereunder
associated with such Change of Control are paid or made available as contemplated herein), without
(in each of the circumstances described in the foregoing clauses (A) and (B)) the written consent
of such Covered Employee.

     18. Other Plans, etc. If the terms of this Plan are inconsistent with the provisions of any
other plan, program, contract or arrangement of an Employer with respect to any of the Covered
Employees, to the extent such plan, program, contract or arrangement may be amended by the
Employer, the terms of the Plan (insofar as they may be applicable to any such Covered Employee)
will be deemed to so amend such plan, program, contract or arrangement, and the terms of the Plan
will govern.

9

 

NII HOLDINGS, INC.

CHANGE OF CONTROL SEVERANCE PLAN

EXHIBIT A

Eligible Employees under Section 4(a):

	 	(1)	 	The Executive Chairman, Chief Executive Officer, President and Chief
Operating Officer, General Counsel and Chief Financial Officer
	 
	 	(2)	 	Vice Presidents Level II and Country Presidents
	 
	 	(3)	 	Vice Presidents Level I and direct reports to Country Presidents.

	 	 	 
	POSITION	 	SEVERANCE PAY
	Top Management (1)

	 	250% of Base Salary and Target Bonus
	 
	 	 
	Senior Management (2)

	 	200% of Base Salary and Target Bonus
	 
	 	 
	Management (3)

	 	100% of Base Salary and Target Bonus
	 
	 

	 	The above amounts shall, to the
extent permitted under (or such
amounts are not subject to) Section
409A of the Code, be reduced by any
severance pay or allowance mandated
by statute or other law or other
arrangement of or with the Company.

Exhibit A-1exv10w3

Exhibit 10.3

On July 22, 2008, the Board of Directors of the Company approved the below Severance Plan, as
Amended and Restated Effective July 22, 2008, in order to make amendments relating to compliance
with Section 409A of the Internal Revenue Code, a change in the Company’s employee classification
system and other non-material changes.

NII HOLDINGS, INC. SEVERANCE PLAN

Plan Document and Summary Plan Description

As Amended and Restated Effective July 22, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE	 	 	 	PAGE	 
	 
	 	 	 	 	 	 
	ARTICLE I
	 	ADOPTION 	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	ELIGIBILITY 	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	INVOLUNTARY TERMINATION 	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	CONDITIONS OF AWARD 	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	CALCULATION OF SEVERANCE PAY 	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	PAYMENT OF SEVERANCE BENEFITS 	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	OTHER BENEFITS 	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	DECISION FINAL AND BINDING 	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	ADMINISTRATION 	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	CLAIMS PROCEDURE 	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	FUNDING 	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE XII
	 	AMENDMENT AND TERMINATION 	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE XIII
	 	GENERAL PLAN INFORMATION AND ERISA RIGHTS 	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE XIV
	 	MISCELLANEOUS 	 	 	19	 
	 
	 	 	 	 	 	 
	SCHEDULE I
	 	PARTICIPATING AFFILIATED COMPANIES 	 	 	S-I	 

i

 

NII HOLDINGS, INC. SEVERANCE PLAN

ARTICLE I

ADOPTION

     NII Holdings, Inc. originally established the NII Holdings, Inc. Severance Plan (the “Plan”),
effective February 11, 2003 in order to provide severance pay to certain eligible employees of NII
Holdings, Inc. and certain subsidiaries in the event of an involuntary termination of employment.
This Plan and summary plan description reflects the terms and conditions of the Plan, as amended
and restated, effective July 22, 2008. The Plan is intended to constitute an employee welfare
benefit plan and not a pension plan under the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), and shall be interpreted and administered accordingly.

     This Plan shall provide severance pay benefits to eligible employees of NII Holdings, Inc. and
certain affiliated companies of NII Holdings, Inc. which shall adopt this Plan with the consent of
NII Holdings, Inc. NII Holdings, Inc. and each participating affiliated company shall be referred
to collectively as the “Company”; provided, however, that each participating affiliated company
shall be considered the “Company” with respect to its own employees only. The establishment of this
Plan is not to be considered an express or implied contract of employment for any term or a
restriction of the right of the Company to terminate the employment relationship of any employee.

1

 

ARTICLE II

ELIGIBILITY

     2.01 Eligibility Employees: An employee of the Company is eligible for severance pay
under the Plan only if the employee is a full-time employee of the Company, meaning the employee is
regularly scheduled to work at least 30 hours per week; and

	 	(i)	 	the employee is employed by the Company in the United States;
or
	 
	 	(ii)	 	the employee receives U.S. source earned income (within the
meaning of Internal Revenue Code Sections 911(d)(2) and 861(a)(3)); or
	 
	 	(iii)	 	the employee is a foreign division president of the Company;
or
	 
	 	(iv)	 	the employee reports directly to a foreign division president
of the Company and is classified as a Vice President Level I.

     2.02 Ineligible Individuals: Notwithstanding the provisions of Section 2.01, the
following individuals shall not be eligible for severance pay under the Plan:

	 	(i)	 	part time employees (employees who are regularly scheduled to
work less than 30 hours per week)
	 
	 	(ii)	 	temporary employees
	 
	 	(iii)	 	casual employees
	 
	 	(iv)	 	independent contractors
	 
	 	(v)	 	consultants
	 
	 	(vi)	 	contract personnel assigned to work at the Company by an
outside employment agency
	 
	 	(vii)	 	employees employed by the Company pursuant to a collective
bargaining agreement
	 
	 	(viii)	 	employees covered by an employment or separation agreement with the Company,
unless such agreement expressly provides that such employee may be considered
for an award of severance pay under the Plan.

2

 

ARTICLE III

INVOLUNTARY TERMINATION

     3.01 Involuntary Termination: Severance pay shall be awarded to an eligible employee
only if employment with the Company is involuntarily terminated, through no fault of his or her
own, due to a lack of work, job elimination, work force reduction, a determination by management
that, due to business reasons, the employee’s performance or contribution to the business (although
satisfactory) does not meet the needs of the business, or for any other reason determined by the
Company to form the basis for an award of severance pay under this Plan, subject to the
restrictions in Section 3.02. The employee’s termination of employment must be intended to be
permanent.

     3.02 Exclusions: An employee shall not be eligible for severance pay under the Plan
if his or her termination is for any reason other than those referred to in Section 3.01. The
Company, in its sole discretion, shall determine in all cases whether a termination is involuntary
for purposes of being considered for a possible award of severance pay under the Plan. In no
event, however, shall a termination of employment be deemed involuntary for purposes of the Plan if
the employee:

	 	(i)	 	is terminated for cause, including but not limited to, failure to meet the
performance requirements of the position, policy violation, theft, gross
misconduct, etc.; or
	 
	 	(ii)	 	fails or refuses to return all Company property in the employee’s
possession, and/or fails to clear all expenses and other financial accounts,
as of the Separation Date, as defined in Section 5.01(iii). (Examples of
Company property include, without limitation: Company security badge, office
keys, and all Company documents, files and computer disks. Examples of
accounts to be cleared include, without limitation: the completion and
reconciliation of expense accounts and the pay-off of loans and other
financial obligations owing by the employee to the Company); or
	 
	 	(iii)	 	resigns or otherwise voluntarily terminates his or her employment; or
	 
	 	(iv)	 	is terminated by temporary layoff or furlough, except that if
the Company elects to convert the temporary layoff or furlough into a permanent
layoff, severance benefits may then be payable as of the effective date of
permanent layoff if the employee is otherwise eligible for benefits under the
Plan; or
	 
	 	(v)	 	is classified by the Company as a senior manager or below and
is offered a position within the Company (not involving relocation to an office
or location that is more than 50 miles away from the employee’s current place
of employment) and providing the same or greater Annual Earnings, as defined in
Section 5.01(i)) in lieu of termination, but fails or refuses to

3

 

	 	 	 	accept it; or is classified as a director or above and is offered a position
within the Company (not involving relocation to an office or location that
is more than 50 miles away from the employee’s current place of employment
and providing the same or greater Annual Earnings, as defined in Section
5.01(i), and that is classified at an equivalent or greater position level)
in lieu of termination, but fails or refuses to accept it; or

	 	(vi)	 	is terminated because of the Company’s sale or transfer of all or part of its
assets and he or she is offered employment with the buyer or transferee
company at the same or greater Annual Earnings, as defined in Section
5.01(i), which does not require relocation to an office or location that is
more than 50 miles away from the employee’s current place of employment; or
	 
	 	(vii)	 	is terminated in connection with the “outsourcing” of operational
functions, and he or she is offered employment by the outsourcing vendor at
the same or greater Annual Earnings, as defined in Section 5.01(i), which
does not require relocation to an office or location that is more than 50
miles away from the employee’s current place of employment; or
	 
	 	(viii)	 	is terminated for failure to return to work following a leave of absence; or
	 
	 	(ix)	 	retires; or
	 
	 	(x)	 	dies, at which time eligibility for severance benefits will end and all such
benefit payments will cease; or
	 
	 	(xi)	 	is separated from the Company because he or she is no longer able to
perform the essential functions of his or her job (with or without
reasonable accommodation) because of a disability; or
	 
	 	(xii)	 	accepts a position which requires relocation to an office or
location that is more than 50 miles away from the employee’s current place of
employment, but later declines to relocate when such relocation
becomes mandatory; or
	 
	 	(xiii)	 	is terminated for any reason (including those referred to in Section 3.01),
but thereafter (and prior to receipt of any severance pay hereunder) receives
an offer of reemployment or other position with the Company or, any such
purchaser or affiliate, whether or not he or she accepts such offer.

     For purposes of Section 3.02, a company shall be considered an affiliate of the Company or a
purchaser if it is considered to be under common control with the Company or such purchaser for
purposes of Internal Revenue Code Section 414(b) and 414(c), as modified by Internal Revenue Code
Section 415(h), or Internal Revenue Code Section 414(m).

4

 

ARTICLE IV

CONDITIONS OF AWARD

     4.01 Conditions of Award: As a condition of receiving an award of severance pay, the
Company shall require the employee to execute a release agreement:

	 	(i)	 	acknowledging that the severance pay he or she is receiving
under the Plan represents the full amount payable to him or her under the Plan;
	 
	 	(ii)	 	releasing all known and unknown claims the employee has or may
have against the Company (not to include claims for benefits payable under the
terms of any other employee benefit plans of the Company); and
	 
	 	(iii)	 	in an appropriate case as determined by the Company, agreeing
that he or she will not provide services to a competitor during a specified
period.

The release agreement shall also contain an agreement of confidentiality, non-disparagement and
non-solicitation and the Company’s obligation to make or continue severance payments to the
employee shall cease if the employee violates any such limitations. The release agreement shall be
irrevocable in accordance with applicable law. Except as otherwise required to comply with Section
409A of the Internal Revenue Code (or associated regulations), no severance payment shall be due
and the Company shall have no obligation under this Plan to make any payments unless and until the
Employee has executed the release agreement and any revocation period has lapsed without
revocation.

     The Company also retains the right to condition payment of severance pay upon the employee’s
faithful performance of any remaining obligations he or she may owe to the Company. Any awarded but
unpaid severance pay shall be terminated if, following the employee’s termination of employment,
such employee engages in behavior which is determined in the sole judgment of the Company to be
detrimental to the reputation or operation of the Company or if the employee otherwise fails to
comply with any terms of the release agreement.

5

 

ARTICLE V

CALCULATION OF SEVERANCE PAY

     5.01 Calculation of Severance Pay: The amount of severance pay to be paid to an
eligible terminated employee shall be determined as provided below. For purposes of determining
severance pay, relevant terms are defined as follows:

	 	(i)	 	“Annual Earnings” means the annualized base salary of the
employee at the time of separation, without regard to overtime, bonus,
incentive payments or commission payments.
	 
	 	(ii)	 	“Service” means all periods of employment with the Company. It also
may include periods of employment with a company that was acquired by the
Company, if the employee was an active employee or on disability, military,
or other leave of absence at the time of the acquisition. Service does not
include any period of employment for which the employee has received
severance pay under the Plan or under any similar plan of the Company, or
any other predecessor company, or service before retirement from a
predecessor company.
	 
	 	(iii)	 	“Separation Date” means the last date of employment with the Company.

     5.02 Senior Managers and Below: Severance pay for eligible employees who are
classified by the Company as a senior manager or below will be equal to:

	 	(i)	 	four (4) weeks of Annual Earnings, plus
	 
	 	(ii)	 	one (1) week of Annual Earnings for each full or partial year
of Service, plus
	 
	 	(iii)	 	additional weeks of Annual Earnings for each $10,000 of Annual Earnings
at or above $50,000 in accordance with the following schedule:

	 	 	 	 	 
	Annual Earnings	 	Additional Weeks Pay
	$50,000 to $69,999

	 	 	2	 
	$70,000 to $79,999

	 	 	4	 
	$80,000 to $89,999

	 	 	6	 
	$90,000 to $99,999

	 	 	8	 
	$100,000 and over

	 	Continue schedule at 2 weeks per $10,000.

The maximum benefit payable for employees who are classified by the Company as senior managers and
below is 26 weeks of severance pay. The minimum benefit payable for employees classified by the
Company as senior managers and below is 6 weeks of severance pay.

     5.03 Directors and Senior Directors: For eligible employees who are classified by the
Company as either a director or senior director, severance pay will be equal to six (6) months of

6

 

the employee’s Annual Earnings plus one month for each full or partial year of Service up to a
maximum of nine (9) months of Annual Earnings (i.e., an eligible employee with more than two (2)
years of Service would receive nine (9) months of Annual Earnings). Employees at this level will
also receive a payment equal to any annual bonus payment that is unpaid for the previous fiscal
year and an additional payment equal to a prorated portion of the annual bonus payment for the
period ending on the Separation Date. These payments will be made when, and if, annual bonuses are
paid to employees at the same position level as the terminated employee for the applicable plan
year in the following year and will be calculated based on the bonus goal achievement level for the
employee’s business unit for the applicable year.

     5.04 Vice Presidents and Above: For eligible employees who are classified by the
Company as a vice president or above, severance pay will be equal to nine (9) months of the
employee’s Annual Earnings plus one month of Annual Earnings for each full or partial year of
Service up to a maximum of 12 months of Annual Earnings (i.e., an eligible employee with more than
two (2) years of Service would receive a maximum of 12 months of Annual Earnings). Employees at
this level will also receive a payment equal to any annual bonus payment that is unpaid for the
previous fiscal year and an additional payment equal to a prorated portion of the annual bonus
payment for the period ending on the Separation Date. These payments will be made when, and if,
annual bonuses are paid to employees at the same position level as the terminated employee for the
applicable plan year in the following year and will be calculated based on the bonus goal
achievement level for the employee’s business unit for the applicable year.

     5.05 Other Severance Agreements. The Company may, in its sole discretion, authorize
severance benefits on terms or in an amount different from that set out elsewhere in the Plan. The
Company also may, in its sole discretion, waive or modify, for individual employees or one or more
classes of employees, the eligibility requirements for severance benefits or modify the method of
calculating their severance benefits.

7

 

ARTICLE VI

PAYMENT OF SEVERANCE BENEFITS

     6.01 Method of Payment: Although severance pay normally will be made to an employee
in a single lump sum cash payment, the Company reserves the right to distribute severance pay
through periodic payments. In no event, however, shall any award of severance under the Plan be
paid over a period of more than 24 months. The amount of severance pay awarded, as well as any
other terms and conditions governing receipt of the severance pay will be communicated to the
employee and set out in the release agreement. The form in which payment will be made (and the
time at which it will be made or begin) must be set out in the release agreement or otherwise
established before the release agreement is signed. Except as otherwise provided in the release
agreement or required below, payment shall be made or begin within 60 days of the date of
termination. Any payment shall be subject to withholding for federal, state and local income,
employment and other taxes.

For purposes of any payment under this Plan to which Section 409A of the Internal Revenue Code
applies, an employee’s termination of employment shall have the same meaning as “separation from
service” under Section 409A (and any related regulations). In the event that an employee is a
“specified employee” within the meaning of Section 409A (as determined by the Company or its
delegate), any payment under this Section which is subject to Section 409A shall not be made or
begin until the expiration of the 6-month period following Employee’s termination of employment.
Such delay in payment shall not apply, however, if, at the time of the employee’s termination, no
equity securities of the Company (or any of its affiliates) is publicly traded (with the meaning of
Section 409A) on an established securities market or otherwise.

     6.02 Termination of Severance Payments: If a former employee who has received (or is
entitled to receive) severance benefits under this Plan does any of the following, any severance
pay due hereunder will be forfeited and any amounts previously paid shall be forfeited and repaid
to the Company upon such terms and conditions as the Company may establish in its sole discretion:
(a) Fails to return all Company property, (b) discloses to or uses confidential information about
the Company for the benefit of a third party, (c) engages in unfair competition with the Company,
(d) defames the Company, (e) entices or attempts to entice other employees of the Company to work
for a competitor or (e) otherwise fails to comply with any terms of his or her release agreement.
If a former employee dies before all severance payments have been made under this Plan, severance
pay benefits will cease immediately. No benefits will continue to a beneficiary.

     6.03 Employees Who Return to Work: If an employee terminates employment and receives
severance pay, and that employee later returns to work at the Company before receiving all payments
under the Plan, further severance pay benefits shall cease effective as of the rehire date. If a
former employee who received severance pay is rehired by the Company, he or she shall be required
to repay a portion of the severance pay benefit. The amount that must be repaid shall be
determined by converting the total amount of severance paid to the employee into weeks of pay
(calculated using the employee’s weekly pay rate prior to his or her initial termination of
employment) and then subtracting from the total amount of severance paid an amount equal to

8

 

the weekly pay rate multiplied by the number of weeks that the employee was not employed by
the Company. The employee shall be required to repay the value of the weeks of severance pay that
exceed the number of weeks the employee was not employed by the Company. Although a lump sum
repayment is preferred, the Company, in it sole discretion, may allow an employee to repay the
severance benefits under another arrangement, including voluntary payroll deductions.

9

 

ARTICLE VII

OTHER BENEFITS

     7.01 Other Benefits: A terminated employee shall receive other benefits in accordance
with the provisions of the other benefit plans and policies sponsored by the Company in which the
employee participates (or under which he or she is eligible) at termination.

10

 

ARTICLE VIII

DECISIONS FINAL AND BINDING

     8.01 Decisions Final and Binding; The Company, in its sole discretion, shall
determine in all cases whether an involuntary termination of employment has occurred, whether in
the circumstances of any particular employee’s termination an award of basic severance pay should
be made under the Plan, the amount of such award and the method of payment. All decisions of the
Company and/or the Plan Administrator shall be final and binding on all employees and other
interested parties.

11

 

ARTICLE IX

ADMINISTRATION

     9.01 Administration: NII Holdings, Inc. shall be the named fiduciary of the Plan and
the Plan Administrator for purposes of ERISA. NII Holdings, Inc. shall be responsible for the
overall operation of the Plan and shall have the fiduciary responsibility for the general operation
of the Plan, although each participating affiliated company shall be solely responsible for
decisions under the Plan with respect to its terminated employees. Accordingly, each participating
affiliated company shall also be a fiduciary under the Plan, but only with respect to its
terminated employees. NII Holdings, Inc. and each participating affiliated company may appoint or
employ such persons as they deem necessary to render advice with respect to any of their respective
responsibilities under the Plan. NII Holdings, Inc. and each participating affiliated company may
designate any one or more of its employees or any other persons to carry out any of their
respective responsibilities under the Plan and, except as and to the extent determined by the
Company, none of such employees or other persons shall receive any compensation from the Plan for
his or her services in such capacity (other than expense reimbursements).

12

 

ARTICLE X

CLAIMS PROCEDURE

     10.01 Claims Procedure:

     (a) The Company shall notify each employee whom the Company determines is to be awarded a
severance pay allowance of such determination and shall provide any forms required in connection
with payment of such benefits. Any employee who disagrees with the Company’s determination with
respect to the awarding of severance pay, if any, under the Plan may submit a written statement to
the Human Resources Department of his or her participating affiliated company describing the basis
of his or her claim for benefits, together with any forms required by the Company in this
connection.

     (b) If the claim of an employee is wholly or partially denied after he or she has completed
the required documents as described above, he or she shall be notified by registered mail within
ninety (90) days after the written claims statement is submitted, or within ninety (90) days after
any required forms are filed, if later (except that in special circumstances the Company may take
an additional ninety (90) days to consider its decision, in which case the employee will be
notified of the extension and the date by which the Plan expects to make a determination on the
claim). If the claim is denied, notification shall set forth:

	 	(i)	 	the specific reasons for the denial (including references to
any pertinent Plan provisions on which the denial is based);
	 
	 	(ii)	 	if applicable, a description of any additional material or
information necessary for the claimant to perfect the claim, and an explanation
of why such material or information is necessary; and
	 
	 	(iii)	 	the claims review procedure, (including a statement of the
employee’s right to bring a civil action following a denial on review).

     (c) The Company will review the appeal of any such claim denials. Any employee who has filed
a claim for benefits may make a written appeal request to the Company, within sixty (60) days after
denial of his or her claim, for a review of such claim. Any such request may include a statement
by the employee of any relevant issues and comments and may include a request for an opportunity to
review the Plan and any other pertinent documents (which will be made available to him or her
within thirty (30) days after such request is received, at a convenient Company office during
business hours). The Company will review any materials submitted by the claimant on review
regardless of whether the materials were submitted or considered during the initial benefit
determination. The employee claiming benefits shall be notified of the final decision of the
Company within sixty (60) days after his or her request for a review is received. However, if the
Company finds it necessary due to special circumstances to extend this period and so notifies the
claimant in writing, the decision shall be rendered as soon as practicable, but in no event later
than one hundred twenty (120) days after the claimant’s request for review. The decision shall be
in writing and shall set forth specific reasons for denial (including reference to any pertinent
Plan provisions on which the denial is based). The written

13

 

notice will inform the claimant of his or her right to bring a civil suit under federal law and a
statement that he or she is entitled to receive, upon request and without charge, reasonable access
to or copies of all documents, records or other information relevant to his claim determination.
Notice of determination may also be provided in an electronic form that complies with any
applicable legal requirements. All interpretations, determinations and decisions of the Company as
to any Plan claim shall be final and conclusive and binding on all interested parties.

Unless there are special circumstances, this administrative appeal process must be completed before
the claimant may begin any legal action regarding his claim.

14

 

ARTICLE XI

FUNDING

     11.01 Funding: The Plan shall not be funded through a trust, an insurance contract or
otherwise, and all benefit payments from the Plan shall be made from the general assets of the
Company. Accordingly, an employee shall not have any claim against specific assets of the Company,
and shall be only a general creditor with respect to any severance pay awarded to him or her under
the Plan.

15

 

ARTICLE XII

AMENDMENT AND TERMINATION

     12.01 Amendment and Termination: The Plan may be amended, suspended or terminated, in
whole or in part, at any time and from time to time by a written instrument signed by the Board of
Directors of NII Holdings, Inc. or by an officer of NII Holdings, Inc. who has been authorized to
do so by the Board of Directors of NII Holdings, Inc. Any such amendment, suspension or
termination may apply to any or all employees. Any provisions of the Plan may be modified for any
employees or group of employees by an appendix, which shall be attached hereto. Upon termination
of the Plan, the Company shall have no further liability hereunder, and all Plan benefits (except
any amounts payable to employees who separated from service before the date of Plan termination and
are otherwise entitled to benefits hereunder) shall cease.

16

 

ARTICLE XIII

GENERAL PLAN INFORMATION

     13.01 General Plan Information:

     NII Holdings, Inc. Severance Plan is the name of the Plan.

     The provisions of the Plan were effective on February 11, 2003 which is called the Effective
Date of the Plan.

     The Plan is funded through the general assets of the Company.

     The Plan’s records are maintained on a twelve-month period of time. This is known as the Plan
Year. The Plan Year begins on January 1st and ends on December 31st.

     13.02 Plan Sponsor:

     NII Holdings, Inc. is the official Plan Sponsor. In addition, certain affiliated companies of
NII Holdings, Inc. have adopted the Plan with the consent of NII Holdings, Inc. A complete list of
participating affiliated companies adopting the Plan can be found at Schedule I.

     13.03 Plan Administrator Information:

     NII Holdings, Inc. shall have the exclusive discretion and authority to administer the Plan,
including (but not limited to) the power to interpret the provisions of the Plan in order to
determine the rights of eligible employees; to pay or cause to be paid severance pay benefits under
the Plan; to administer the claims procedure of the Plan; and to determine all questions concerning
eligibility, participation, benefits and the rights of all persons under the Plan and all other
questions arising in the administration of the Plan. When appropriate, NII Holdings, Inc. may
delegate its duties as Plan Administrator to any entity or person(s).

     The address and business telephone number of NII Holdings, Inc. is:

1875 Explorer Street

10th Floor

Reston, VA 20190

(703) 390-5108

     NII Holdings, Inc. keeps the records for the Plan and is responsible for the administration of
the Plan. NII Holdings, Inc. will also answer any questions you may have about the Plan.

     13.04 Identification Numbers:

17

 

     In any formal correspondence about the Plan, the following numbers should be referenced:

	 	 	 	 	 	 	 
	Employer Identification Number:

	 	EIN
	 	 	91-1671412	 
	Plan Identification Number:

	 	PIN
	 	 	502	 

     13.05 Service of Legal Process:

     The name and address of the Plan’s agent for service of legal process is:

Gary D. Begeman, General Counsel

NII Holdings, Inc.

1875 Explorer Street

10th Floor

Reston, VA 20190

     Service of process may also be made on the Plan Administrator.

     13.06 Rights Under ERISA:

     Each eligible employee in this Plan is entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA provides that all employees
covered under this Plan shall be entitled to:

     (i) Examine, without charge, at NII Holdings, Inc., all Plan documents, including
insurance contracts, collective bargaining agreements and copies of all documents filed by
the Plan with the U.S. Department of Labor, such as annual reports and plan description;

     (ii) Obtain copies of all Plan documents and other Plan information upon written
request to NII Holdings, Inc. NII Holdings, Inc. may make a reasonable charge for the
copies;

     (iii) Receive a summary of the Plan’s annual financial report, as applicable. NII
Holdings, Inc. is required by law to furnish each Participant with a copy of any summary
annual report;

     (iv) File suit in a federal court if any materials requested are not received within
thirty (30) days of the date of the Participant’s request, unless the materials were not
sent because of matters beyond the control of NII Holdings, Inc.. The court may require NII
Holdings, Inc. to pay up to $110.00 for each day’s delay until the materials are received.

     In addition to creating rights for employees covered under this Plan, ERISA imposes
obligations upon the persons who are responsible for the operation of an employee benefit plan.
These persons are referred to as “fiduciaries” in the law. Fiduciaries must act solely in the
interest of the employees covered under this Plan, and they must exercise prudence in the
performance of

18

 

their Plan duties. Fiduciaries who violate ERISA may be removed and required to make good any
losses they have caused the Plan.

     NII Holdings, Inc. or your employer may not fire you or discriminate against you to prevent
you from obtaining a welfare benefit or exercising your rights under ERISA.

     If you are improperly denied a welfare benefit in full or in part, you have a right to file
suit in a federal court. If Plan fiduciaries are misusing the Plan’s money, you have a right to
file suit in a federal court or request assistance from the U.S. Department of Labor. If you are
successful in your lawsuit, the court, if it so decides, may require the other party to pay your
legal costs, including attorney’s fees. If you lose your lawsuit, the court may order you to pay
these costs and fees if, for example, it finds your claims are frivolous.

     If you have any questions about this statement or your rights under ERISA, you should contact
NII Holdings, Inc. or the nearest office of the Pension and Welfare Benefits Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of Technical Assistance and
Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution
Avenue, N.W., Washington, D.C. 20210.

19

 

ARTICLE XIV

MISCELLANEOUS

     14.01 Miscellaneous:

     (a) The award of severance pay under the Plan shall not be taken into account to increase any
benefits provided (or to continue participation in or coverage) under any other plan or policy of
the Company or an affiliate, except as otherwise specifically provided in such other plan or
policy.

     (b) Awards payable under this Plan shall not be assigned, transferred, pledged as a security
for indebtedness or otherwise encumbered or subjected to any legal process for the payment of any
claim against an employee, except for amounts due to the Company and to the extent required by law;
provided, that for any payment subject to Section 409A of the Internal Revenue Code, offsets shall
be allowed only to the extent permitted under Section 409A and any related regulations.

     (c) Whenever appropriate in the Plan, words used in the singular may be read in the plural;
words used in the plural may be read in the singular; and words importing the masculine gender
shall be deemed equally to refer to the feminine. Any reference to a Section shall refer to a
Section of this Plan, unless otherwise indicated.

     (d) The headings of sections are included solely for convenience of reference, and if there be
any conflict between such headings and the text of the Plan, the text shall control.

     (e) Except to the extent preempted by federal law, the Plan shall be construed, administered
and enforced according to the law of the Commonwealth of Virginia without reference to principles
of conflict of laws.

     (f) To the extent applicable, this Plan is intended to comply with the distribution and other
requirements of Section 409A of the Internal Revenue Code. For any Plan payments subject to
Section 409A, the Plan shall be interpreted and applied to the maximum extent possible consistent
with Section 409A.

20

 

SCHEDULE I

List of Participating Affiliated Companies of NII Holdings, Inc.

Nextel International Services, Ltd. 91-1726566

S-1

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