Document:

exv10w2

Exhibit 10.2

Explanatory Note: This letter agreement restates and consolidates compensation
arrangements with Mr. Peter Foyo provided for in a letter agreement dated February 21, 2007 and subsequent modifications made prior to him
becoming a named executive officer.

April 29, 2011

Peter Foyo

c/o Nextel de Mexico S.A. de C.V.

Paseo Tamarindos No.-Piso 29

Colonia Bosques de las Lomas

Delegacion Cuajimalpa

Mexico, D.F.

C.P. 05120

Dear Peter:

We are delighted you will be continuing your assignment with NII Holdings, Inc. (“NII” or the
“Company”) as the President of Nextel de Mexico, S.A. de C.V. (“Nextel Mexico”).

The following information provides detail and establishes the basis for mutual expectation
regarding the terms and conditions of employment, benefits, provision, and
expatriation/repatriation assistance applying to your employment and NII. The terms and conditions
outlined in this Agreement will be in effect only for the period of this assignment. This
Agreement supersedes any and all prior written or oral agreements or understandings concerning your
employment, compensation, expatriation, relocation or other fees the Company agreed to pay to you
or on your behalf, with the exception of the NII Holdings, Inc. Non-Competition and Confidentiality
agreement, which you signed on March 29, 2006.

Outlined below are the specific terms and conditions regarding your employment relationship with
the Company during the period of expatriation:

	 	 	 

	1. Title/Grade:

	 	President, Nextel Mexico
	 
	 	 
	2. Reporting To:

	 	NII Chief Executive Officer
	 
	 	 
	3. Effective Date:

	 	Effective as of April 29,
2011, except as otherwise stated herein
	 
	 	 
	4. Location

	 	Mexico City, Mexico

 

 

	 	 	 

	5. Term of Assignment

	 	Your employment with the Company will be of indefinite duration,
terminable at will by either party, without cause. This means that you
may elect to terminate your employment with the Company at any time
after such date, and the Company retains the same rights. This
“employment at-will” paragraph operates notwithstanding any other
provision of this letter, and no officer or employee of the Company is
authorized to offer any employment relationship other than the
“at-will” relationship provided for in this paragraph. If either party
terminates this Agreement, except for COBRA benefits and repatriation,
all rights and liabilities hereunder will cease. You and the Company
agree that the terms of your employment will be governed by the laws of
the State of Virginia, not the laws of any other state or foreign
country.
	 
	 	 
	6. Base Salary:

	 	$510,313.20 per year, effective as of April 1, 2011, paid bi-monthly in
the United States and subject to U.S taxes. You will be eligible for a
base pay increase in 2012 subject to approval of the Company’s Board of
Directors.
	 
	 	 
	7. Foreign
Assignment
Differential:

	 	A foreign assignment differential will be paid to compensate you for
the higher costs of goods and services in the assignment location as
compared to the United States. The differential, affected by inflation
in the assignment location and in the United States, and by exchange
rates, will be reviewed periodically. Your foreign assignment
differential will be $23,882.36 per year payable bi-monthly by Nextel
Mexico net of taxes.
	 
	 	 
	8. Hardship
Allowance:

	 	A hardship allowance will be paid to compensate you in the assignment
location. We have agreed to pay you 10% of your base salary, which will
be paid bi-monthly by Nextel Mexico net of taxes.
	 
	 	 
	9. Performance
Review:

	 	Your performance and your position with the Company will be reviewed on
an annual basis by the Chief Executive Officer who shall report the
results of such review to the Board of Directors, at which time you
will be eligible for a merit increase in your base annual compensation.
Any such increase shall be based on a positive review of your
performance and commensurate with your duties and responsibilities.
Your next scheduled merit review will be conducted by April 1, 2012.
	 
	 	 
	10. Incentive Bonus:

	 	You will be eligible to receive an annual bonus of 60% of your annual
base salary based upon the Company’s bonus plan. The annual bonus is
normally paid during the first quarter of the following year.

 

 

	 	 	 

	11. Tax Equalization:

	 	It is the Company’s policy that personnel stationed abroad will not
suffer financially from an excessive tax liability as consequence of
having to pay more income taxes that they would not have paid in the
United States. In order to implement this policy, an expatriate will be
reimbursed for U.S. and foreign taxes incurred on the total
compensation in excess of the U.S. tax that would have been incurred on
the base salary had the expatriate remained in the United States. You
agree to restructure the relationship with the Company in a manner that
will minimize your overall tax liability so long as you are not
adversely impacted.
	 
	 	 
	 

	 	In the event the Company overpays tax with respect to Company- earned
income, a refund may be received payable to you. You agree to reimburse
the Company the amount relating to Company-earned income and benefits.
	 
	 	 
	12. Tax Counseling:

	 	To ensure that tax is paid as and when required, the Company has
retained international tax consultants to assist in the preparation and
filing of U.S. federal and state (if applicable) income tax returns.
They will also provide assistance for your income tax return in your
foreign assignment location. Only the consultants designated may be
used. The extent of this tax consultant service to you is as follows:
	 
	 

	 	   •    Consultation with tax consultant service while in your foreign
assignment location to assist you in the preparation of annual returns;

	 
	 

	 	   •    Up to two consultations upon final return, if appropriate.

	 
	 	 
	 

	 	Penalties and interest owing or preparation of amended returns,
together with incremental consultant’s fees that result from failure to
comply with the established procedure, may result in the Company
charging you with these amounts.
	 
	 	 
	 

	 	Similarly, the Company will take measures as are required to ensure you
do not suffer, if upon final return and through no fault of your own,
you find you have been charged with double taxation on your
Company-earned income and benefits while assigned to the foreign
assignment location.
	 
	 	 
	13. Cash
Allowance:

	 	The Company will pay $7,909.83 net of taxes on a monthly basis directly
to you. This cash allowance will be paid by Nextel Mexico, and this
cash allowance replaces all prior housing benefits.
	 
	 	 
	14. Schooling
Allowance:

	 	The Company will pay up to $500 per month cost for monthly tuition for
each of your children. The schooling allowance will be paid by Nextel
Mexico.
	 
	 	 
	15. Company Car:

	 	In your expatriate assignment, Nextel Mexico will provide you with use
of a Company car and driver commensurate with your position.

 

 

	 	 	 

	16. Home leave travel:

	 	You and your partner are entitled to six home visits per year to be
used during the duration of the assignment. Additionally, your
children are entitled to three home visits per year during the duration
of the assignment. In case of an emergency with your immediate family,
you will be entitled to travel at the Company’s expense as well. All
home leave travel includes airfare and local transport to and from the
airport only. In all cases, the class of service will be based on the
current NII policy.
	 
	 	 
	17. Vacation:

	 	You are entitled to four weeks vacation per calendar year prorated for
any partial years of employment in accordance with NII’s vacation
policy.
	 
	 	 
	18. Holidays:

	 	The observation of holidays will be determined by local customs and
traditions in your foreign assignment location.
	 
	 	 
	19. Insurance &
Benefits:

	 	You will be eligible for the NII standard insurance and benefit plans
commensurate with your position. In addition, the Company will pay
emergency medical transportation and lodging costs to offset costs that
the medical insurance does not cover.
	 
	 	 
	20. Security:

	 	Nextel Mexico will coordinate, facilitate, and fund all ordinary
security provisions to adequately provide you and your family with
protection.
	 
	 	 
	21. Expenses:

	 	Any expenses that you incur on behalf of the Company, which are
directly related to your work, will be reimbursed based on properly
completed documentation and prior approvals.
	 
	 	 
	22. Repatriation:

	 	NII will provide repatriation relocation assistance at the end of your
expatriation assignment or upon termination of your employment by NII
(in the event of termination, NII will provide repatriation relocation
assistance only if the termination is a decision of the Company). The
Company will pay the cost of transporting you and your family from your
foreign assignment location to your place of residence in the United
States in compliance with the Company’s current travel policy.

NII will pay for costs of packing, transporting, insuring and unpacking
those personal effects and household goods you have designated for
relocation, provided such items can be shipped in one twenty foot by
forty foot (20x40 foot) sea-going shipping container.
	 
	 	 
	23. Financial
Responsibilities:

	 	Except as specifically provided in this Agreement, you will be
responsible for all financial obligations incurred by you during the
term of the assignment.
	 
	 	 
	24. Non-competition and
Confidentiality:

	 	The Non-Competition and Confidentiality Agreement signed on March 29,
2006 between you and the Company remains in full force and effect.

 

 

If you have any questions or require additional information, please do not hesitate to contact me
at (703) 390-7199. Please sign below where indicated and return two signed copies to me to evidence
your agreement as to the above terms. A copy is for your records.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Alfonso Martinez
 	 
	 	Alfonso Martinez 	 
	 	Executive Vice President Human Resources

NII Holdings, Inc. 	 
	 

I have read and understand the terms and conditions contained in this Agreement and hereby accept
and agree to them as partial conditions of my employment with NII Holdings, Inc.

	 	 	 	 	 	 	 

	 

	 	Peter Foyo:

Date:
	 	/s/ Peter Foyo
 

April 29, 2011exv10w1

Exhibit 10.1

The Annual Incentive Plan

For Year 2011

 

 

	 	 	 
	Contents	 	Page
	At a Glance
	 	1
	What is the Annual Incentive Plan?
	 	1
	Who is Eligible for This Plan?
	 	1
	How Does the Annual Incentive Plan Work?
	 	1
	 
	 	 
	Calculation of the Annual Incentive Plan Award
	 	2
	Target Bonus Percentage
	 	2
	Performance Goals and the Target Bonus Percentage
	 	2
	2011 Performance Goals
	 	3
	 
	 	 
	How the AIP Incentive Award is Calculated When All Goals
	 	4
	Are 100% Achieved
	 	 
	 
	 	 
	How the AIP Incentive Award is Calculated for Other Achievement Levels
	 	5
	Maximums and Minimums
	 	5
	 
	 	 
	Additional Guidelines for the Annual Incentive Plan
	 	6
	Discretionary Adjustments
	 	6
	Some Special Circumstances
	 	6
	Making Payments
	 	6
	 
	 	 
	Administration Details
	 	7

 

 

At a Glance

What is the Annual Incentive Plan?

The Annual Incentive Plan (the “AIP” or the “Plan”) provides participants of Allegheny Technologies
Incorporated (“Allegheny Technologies” or the “Company”) and its operating companies with the
opportunity to earn an incentive award when certain pre-established goals are met at the corporate
and operating company levels.

Who is Eligible for This Plan?

Generally, participants who have a significant impact on the Company’s operations will be eligible
to participate in the Plan. Individuals eligible for participation are determined annually, based
on recommendations of the operating company presidents, if applicable, and the Company’s chief
executive officer and the Company’s executive vice president-human resources, with the approval of
the Personnel and Compensation Committee of the Company’s Board of Directors.

How Does the Annual Incentive Plan Work?

Under the Plan, participants may earn an incentive award based on a percentage of their base
salary, depending on the extent to which pre-established operating company and/or corporate
performance goals have been achieved.

	•	 	For purposes of the Plan, base salary is generally the participant’s annual base salary
rate as of the end of the year, excluding any commission or other incentive pay. For some
special circumstances affecting the amount of base salary used in the Plan, see page 6.
	 
	•	 	A target bonus percentage for each participant is used in calculating the incentive award
and is explained on the next page.
	 
	•	 	The target bonus percentage will be adjusted (upward or downward) based on the extent to
which various performance goals are achieved.

Incentive award payments will be distributed in cash after the year-end audit is complete and the
awards have been approved by the Personnel and Compensation Committee.

Page 1

 

Calculation of the Annual Incentive Plan Award

Target Bonus Percentage

The Plan establishes an incentive opportunity for each Plan participant, calculated as a percentage
of the participant’s base salary. Each participant will be provided with an initial percentage,
referred to as a “target bonus percentage.”

Generally, the target bonus percentage is the percentage of base salary that can be earned as an
award under the Plan if 100% of the various performance goals are achieved. For 2011, if 100% of
the performance goals are achieved, 100% of the target bonus percentage can be earned.

Generally, if there is a change in a participant’s target bonus percentage during the year, the
newly adjusted target bonus percentage will be used to calculate the individual’s award for the
full year. If an individual becomes a participant in AIP during the year, the individual’s award
for the year will be based on a pro rata calculation.

Performance Goals and the Target Bonus Percentage

For 2011, AIP awards will be based on the extent to which the participant’s company, division or
area of responsibility achieves specified levels of achievement as to:

	•	 	Operating Earnings
	 
	•	 	Operating Cash Flow
	 
	•	 	Manufacturing Improvements
	 
	•	 	Safety and Environmental Compliance
	 
	•	 	Customer Responsiveness

For business unit presidents, 65% of the goals’ overall weight will be based on the performance of
the president’s operating company, and 35% of the goals’ overall weight will be based on
corporate-wide performance.

For executive officers and certain other senior employees, performance will be measured completely
on a corporate-wide basis.

Page 2

 

At the end of the year, the Company will measure actual performance against each of the
pre-established objectives.

The achievements attributable to each performance goal as noted above, then will be added together,
and that sum will be multiplied by: (1) the individual’s target bonus percentage, times (2) the
individual’s annual base salary, to produce the amount, if any, of the incentive award for 2011.

Note that potential adjustments are described on page 6.

2011 Performance Goals

	 	 	 	 	 

	The performance goals for 2011 generally consist of:
	 	 	 	 
	• Operating Earnings
	 	 	40	%
	• Operating Cash Flow
	 	 	30	%
	• Manufacturing Improvements
	 	 	10	%
	• Safety and Environmental Compliance
	 	 	10	%
	• Customer Responsiveness
	 	 	10	%

Targeted achievements as to each performance goal above have been established for each operating
company and for corporate participants. Together the above goals comprise 100% of the target bonus
percentage.

No annual incentive will be paid if the achievement of Operating Earnings is less than the
established applicable minimum of Operating Earnings, notwithstanding the achievements as to the
other applicable performance goals for 2011.

The AIP program allows the Personnel and Compensation Committee of the Board of Directors to
exercise negative discretion to reduce payments if actual performance does not exceed performance
targets.

A prerequisite to any AIP award is compliance with Allegheny Technologies’ Corporate Guidelines for
Business Conduct and Ethics.

Page 3

 

How the AIP Incentive Award is Calculated When All Goals are 100% Achieved

For the Year 2011, if 100% of the performance goals are achieved, then 100% of the target bonus
percentage will be credited to the participant:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Goals	 	Goal % Target	 	Goal % Achieved	 	Earned % of Target *
	Operating Earnings
	 	 	40	%	 	 	100	%	 	 	40	%
	Operating Cash Flow
	 	 	30	%	 	 	100	%	 	 	30	%
	Manufacturing Improvements
	 	 	10	%	 	 	100	%	 	 	10	%
	Safety and Environmental
	 	 	10	%	 	 	100	%	 	 	10	%
	Compliance
	 	 	 	 	 	 	 	 	 	 	 	 
	Customer Responsiveness
	 	 	10	%	 	 	100	%	 	 	10	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	100	%	 	 	 	 	 	 	100	%

 

			
	*	 	Earned % of Target = Goal % of Target X Goal Achieved %

In this example, assume that the participant’s target bonus percentage is 15%.

The target bonus percentage of 15% is then multiplied by 100% to produce a bonus award equal to 15%
of base salary:

	 	 	 	 	 

	Earned Percentage of Target
	 	 	100	%
	X Target Bonus Percent
	 	 	15	%
	 
	 	 	 	 
	Equals Percentage of
Salary for Incentive Award
	 	 	15	%

The sections below discuss the impact of achieving more or less than 100% of various goals,
and they also discuss the impact of other potential adjustments.

Page 4

 

How the AIP Incentive Award is Calculated for Other Achievement Levels

The percentage of a goal achieved will determine the earned percentage of target for that
particular goal. The earned percentage of target will be extrapolated for achievement between the
established minimum level and the established target level for a particular goal. Similarly, the
earned percentage of target will be extrapolated for achievement between the established target
level and the established maximum level for a particular goal.

Maximums and Minimums

	•	 	Generally, the maximum percentage calculated as an earned percentage of target for any goal
is 200%, and the overall maximum incentive award that a participant can earn under the
weighting formula is 200% of the participant’s target bonus percentage.
	 
	•	 	Where the established minimum of a performance goal is achieved, only 50% of that goal’s
share will be allocated to the participant’s target bonus percentage.
	 
	•	 	Where less than the established minimum of a performance goal is achieved, no amount of
that goal will be allocated to the participant’s target bonus percentage.

No annual incentive will be paid if the achievement of Operating Earnings is less than the
established applicable minimum of Operating Earnings, notwithstanding the achievements as to the
other applicable performance goals for 2011.

Page 5

 

Additional Guidelines for the Annual Incentive Plan

Discretionary Adjustments

The Plan
allows for discretionary adjustments of up to +20% or –20% of an individual’s calculated
award. However, generally, the sum of discretionary adjustments for all eligible participants
cannot exceed +5% of the aggregate calculated awards.

Some Special Circumstances

The above formulas generally determine the amount of the incentive award for the year. Other
factors that may affect the actual award follow:

	•	 	If a participant leaves the Company due to retirement, death, or disability, an award will
be calculated based on the actual base salary earned during the year in which the manager
left—so long as the participant worked at least six months of that year.
	 
	•	 	If a participant leaves the Company before the end of the plan year for any other reason,
the manager will not receive a bonus award for that year.
	 
	•	 	If a participant voluntarily leaves the Company after the end of the year but before the
award is paid, the participant would receive any bonus due unless the employment is terminated
for cause. If employment is terminated for cause, the participant would not be entitled to
receive an award under the Plan.
	 
	•	 	Participant’s who are hired mid-year may earn a pro-rated award for that year, based on the
salary earned during that year. However, managers with less than two months service in a plan
year (i.e. hired after October 31) would not be eligible for an award for that year.
	 
	•	 	A prerequisite to any AIP award is compliance with Allegheny Technologies’ Corporate
Guidelines for Business Conduct and Ethics.

Making Payments

All incentive award payments will be paid in cash, less applicable withholding taxes, after the
year-end audit is complete and payment has been considered and approved by the Personnel and
Compensation Committee.

Page 6

 

Administration Details

This summary relates to the Annual Incentive Plan (AIP) of Allegheny Technologies Incorporated
and its subsidiaries. The Plan is administered by the Personnel and Compensation Committee, which
has full authority to:

	•	 	Interpret the Plan;
	 
	•	 	Designate eligible participants and categories of eligible participants;
	 
	•	 	Set the terms and conditions of incentive awards; and
	 
	•	 	Establish and modify administrative rules for the Plan.

Plan participants may obtain additional information about the plan and the Committee from:

	 	 	 

	Jon D. Walton

	or 	Mary Beth Moore
	Executive Vice President,

	 	Vice President, Human Resources
	Human Resources, Chief Legal and

	 	Allegheny Technologies Incorporated
	Compliance Officer and Secretary

	 	1000 Six PPG Place
	Allegheny Technologies Incorporated

	 	Pittsburgh, PA 15222-5479
	1000 Six PPG Place

	 	Phone: 412-394-2935
	Pittsburgh PA 15222-5479

	 	Fax: 412-394-3017
	Phone: 412-394-2836
	 	 
	Fax: 412-394-2837
	 	 

The Plan will remain in effect until terminated by the Personnel and Compensation Committee. The
Personnel and Compensation Committee may also amend the Plan at its sole discretion.

The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA) and is not “qualified” under Section 401(a) of the Internal Revenue Code.

Page 7

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