UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment

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¨  Definitive Additional Materials

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¨  Soliciting Material Pursuant to § 240.14a-12

¨Soliciting Material pursuant to § 240.14a-12

T-Mobile US, Inc.

(Name of Registrant as Specified inIn Its Charter)

N/A

(Name of Person(s) Filing Proxy Statement, if Other Thanother than the Registrant)

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LOGO

May 17, 2013LOGO

LOGO


LOGO

April 22, 2015

Dear Stockholder,

I am pleased to invite you to the 20132015 Annual Meeting of Stockholders of T-Mobile US, Inc., a Delaware corporation (the “Company”), to be held on Tuesday, June 4, 2013,2, 2015, at 9:0030 a.m. EasternPacific Daylight Time, at The Charlesthe Hotel Harvard Square, 1 BennettBellevue, 11200 Southeast 6th Street, Cambridge, Massachusetts 02138Bellevue, Washington 98004 (the “Annual Meeting”). This will be

On April 22, 2015, we first mailed to our firststockholders the attached Notice of 2015 Annual Meeting of Stockholders since the consummation of the business combination on April 30, 2013 between MetroPCS Communications, Inc. (“MetroPCS”), and T-Mobile USA, Inc. (“T-Mobile USA”), the U.S. wireless operation of Deutsche Telekom AG. In connection with the transaction, MetroPCS’s and T-Mobile USA’s businesses were combined, our name was changed from MetroPCS Communications, Inc. to “T-Mobile US, Inc.” and Deutsche Telekom AG became the beneficial owner of approximately 74% of our outstanding shares on a fully-diluted basis. As a result of these transactions, we have made significant changes to our Board of Directors, Board committees, management team and corporate governance policies.

At this year’s Annual Meeting, you will be asked to:

Elect eleven directors named in the enclosed Proxy Statement to our Board of Directors;

Ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2013;

Approve the T-Mobile US, Inc. 2013 Omnibus Incentive Plan; and

Consider any other business that is properly brought before the Annual Meeting or any continuation, adjournment or postponement of the Annual Meeting.

Attached you will find a Notice of Annual Meeting and Proxy Statement, thatwhich contain further information about the Annual Meeting, including the date, time and location of the Annual Meeting, a description of the matters to be voted on at the Annual Meeting, the different methods that you may use to vote, and how to obtain an admission ticket if you plan to attend the Annual Meeting in person. As required under the Securities and Exchange Commission’s proxy rules, the proxy materials include the 2012 Annual Report to Stockholders, which contains information about legacy MetroPCS and its financial performance in 2012.Meeting.

Your vote is important.important and we appreciate the time and attention you invest in making thoughtful decisions. Whether or not you plan to attend the Annual Meeting, please read the Proxy Statement and then cast your vote as instructed, as promptly as possible. We encourage you to vote before the applicable voting cut-off date so that your shares will be represented and voted at the Annual Meeting even if you cannot attend in person. Since the voting cut-off varies by voting method, I encourage you to review the Proxy Statement (and the voting instructions form provided to you by your broker or other registered holder, if applicable) for information regarding when you must cast your vote in order for it to be counted at the Annual Meeting. In any event, we encourageIf you to vote before the applicable voting cut-off date so that your shares will be represented and voted atattend the Annual Meeting, you will be able to vote in person even if you cannot attendhave previously submitted your proxy. Information on how to obtain an admission ticket to the Annual Meeting is included in person. We encourage you to cast your vote by using the telephone or Internet as it is easier and more efficient and will help us reduce our impact on the environment.Proxy Statement.

Thank you for your continued interest in and support of the Company.T-Mobile.

Sincerely yours,

 

LOGOLOGO

John J. Legere

President, Chief Executive Officer and Director


LOGO

Important Notice Regarding the Availability of Proxy MaterialsLOGO

for

Date:

June 2, 2015

Time:

9:30 a.m. Pacific Daylight Time

Place:

Hotel Bellevue

11200 Southeast 6th Street

Bellevue, Washington 98004

At the T-Mobile US, Inc. 2015 Annual Meeting of Stockholders To Be Held on June 4, 2013

Your Participation and Vote Are Important

ALL STOCKHOLDERS ARE CORDIALLY INVITED TO ATTEND THE ANNUAL MEETING.

Voting your shares is important to ensure that you have a say in the governance of the Company. Your vote is important to us. Please review the proxy materials and follow the instructions detailed on the proxy card or the voting instructions you receive from your broker, bank or other registered holder to vote your shares. We hope you will exercise your rights and fully participate as a stockholder in the Company.

Whether or not you expect or plan to attend the Annual Meeting in person, we encourage you to please promptly mark, date and return your proxy card as instructed, or vote by telephone or using the Internet as instructed, so that a quorum at the Annual Meeting may be reached, the business before the Annual Meeting can be conducted, and your shares may be voted.

Available Information

We are providing you access to our proxy materials both by sending you this full set of proxy materials, including the 2012 Annual Report to Stockholders and a proxy card, and by notifying you of the availability of this Proxy Statement, along with the other proxy materials, on the Internet at: http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=18263. These documents can also be located on the Company’s website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then “SEC Filings and Reports.”

Broker Voting Information

If you hold your shares of the Company’s common stock in “street name” through a broker, bank or other financial institution, your broker or other registered holder is not permitted to vote on your behalf in the election of directors or on the proposal to approve the T-Mobile US, Inc. 2013 Omnibus Incentive Planunless you provide specific instructions by completing and returning (or providing voting directions by one of the other methods described in) the voting instructions form provided to you by your broker or other registered holder. For your vote to be counted, you will need to communicate your voting instructions to your broker, bank or other financial institution before the voting cut-off date specified in the voting instructions form you receive from your broker or other registered holder.

Attendance at Annual Meeting

In accordance with our security procedures, all stockholders attending the Annual Meeting will be required to show a valid, government-issued picture identification that must match the name on the admission ticket or legal proxy or confirming documentation from your broker, bank or other financial institution before being admitted to the Annual Meeting. Seating is limited and will be available on a first-come, first-served basis.


LOGO

Notice of 2013 Annual Meeting of Stockholders

Date:      June 4, 2013

Time:     9:00 a.m. Eastern Daylight Time

Place:     The Charles Hotel

Harvard Square, 1 Bennett Street

Cambridge, Massachusetts 02138

At the T-Mobile US, Inc. 2013 Annual Meeting of Stockholders, or Annual Meeting, you will be asked to:

 

1.

Elect eleven directors named in the Proxy Statement to the Company’s Board of Directors;

 

2.

Ratify the appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2013;
2015;

 

3.

Approve the T-Mobile US, Inc. 2013 Omnibus Incentive2014 Employee Stock Purchase Plan; and

 

4.

     Vote on two stockholder proposals, if properly presented at the Annual Meeting; and

5.     Consider any other business that is properly brought before the Annual Meeting or any continuation, adjournment or postponement of the Annual Meeting.

The Board of Directors has established the close of business on May 10, 2013 as the record date for the determination of holders of T-Mobile US, Inc.‘s common stock, par value $0.00001 per share, or common stock, entitled to notice of, and to vote at, the Annual Meeting, and any continuation, adjournment or postponement thereof.

Your vote is very important to us. You may vote on the items to be considered at the Annual Meeting in person, by mailing a proxy card, by voting over the Internet or by toll-free telephone as described in the proxy card, or if you hold your shares in “street name,” by completing and returning (or providing voting directions by one of the other methods described in) the voting instructions form provided by your bank, broker or other financial institution. Please carefully review the instructions for the various voting options available to you detailed on the proxy card or in the voting instructions form provided by your broker or other registered holder. If you have questions, please review our questions and answers about the Annual Meeting and the voting options for additional information, including when you must vote, how to revoke your proxy or change your voting instructions and how to vote your shares in person.

You also are cordially invited to attend the Annual Meeting in person. Only stockholders with an admission ticket and valid, government-issued picture identification that matches the admission ticket will be admitted to the Annual Meeting. If your shares are registered in your name, an admission ticket is attached to your proxy card. If your shares are not registered in your name, you should ask the broker, bank or other institution that holds your shares to provide you with a legal proxy authorizing you to vote your shares of the Company’s common stock as of our record date, whether in person, via the Internet or by telephone. You also can obtain an admission ticket to the Annual Meeting by presenting this legal proxy, or confirming documentation of your account from your broker, bank or other institution, at the Annual Meeting. All stockholders will be required to show a valid, government-issued picture identification that must match the name on the admission ticket or legal proxy or confirming documentation from your broker before being admitted to the Annual Meeting.

Your vote matters and you are encouraged to vote. Whether or not you attend the Annual Meeting in person, you are urged to mark, date and sign the enclosed proxy card and return it to the Company or use an alternate voting option described in the Proxy Statement before the Annual Meeting to ensure your shares are voted. We encourage you to vote electronically by using the Internet or to vote by telephone as it is easy and efficient and will help us reduce our impact on the environment.

By Order of the Board of Directors,

LOGO

Only stockholders of record as of the close of business on April 10, 2015 are entitled to receive notice of, to attend and to vote at the Annual Meeting.

Your vote is very important to us. Whether or not you attend the Annual Meeting in person, you are urged to mark, date and sign the enclosed proxy card and return it to the Company or use an alternate voting option described in the Proxy Statement before the Annual Meeting to ensure that your shares are voted. We encourage you to vote electronically by using the Internet or to vote by telephone because it is easy and efficient and will help us reduce our impact on the environment.

By Order of the Board of Directors,

LOGO

Timotheus Höttges

Chairman of the Board of Directors

Bellevue, Washington

April 22, 2015

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to Be Held on June 2, 2015

The Proxy Statement and Annual Report to Stockholders are available athttps://www.proxyvote.com

Bellevue, Washington

May 17, 2013


PROXY STATEMENT

We are furnishing proxy materials to our stockholders by mailing paper copies of the materials (including this Proxy Statement, a proxy card and the 2012 Annual Report to Stockholders containing financial and other information regarding legacy MetroPCS Communications, Inc.) to each stockholder at the address we, or your bank, broker or other financial institution holding your shares, may have. We began mailing this Proxy Statement and other proxy materials via the United States Postal Service on or about May 17, 2013 to stockholders of record as of the close of business on May 10, 2013, which we refer to as the record date, to solicit proxies in connection with the election of eleven directors to the Company’s Board of Directors, to ratify the appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for the 2013 fiscal year, to approve the T-Mobile US, Inc. 2013 Omnibus Incentive Plan, and to vote on any other business properly brought before the 2013 Annual Meeting of Stockholders, which we refer to as the Annual Meeting, and at any continuation, adjournment or postponement of the Annual Meeting. The Annual Meeting will be held on June 4, 2013 at The Charles Hotel, Harvard Square, 1 Bennett Street, Cambridge, Massachusetts 02138, commencing at 9:00 a.m. Eastern Daylight Time, or EDT. We refer to T-Mobile US, Inc., a Delaware corporation, and its subsidiaries herein as the “Company,” “our Company,” “T-Mobile,” “we,” “our,” and “us.”

Each holder of record of the Company’s common stock, par value $0.00001, or common stock, at the close of business on the record date for the Annual Meeting is entitled to notice of, to attend, and to vote at the Annual Meeting, or at any continuation, adjournment or postponement of the Annual Meeting. Each holder of record on the record date is entitled to one vote for each share of common stock held by such holder. As of May 10, 2013, there were 724,979,321 shares of our common stock outstanding. We need a majority of the shares of our common stock outstanding on the record date and entitled to vote at the Annual Meeting present, in person or by proxy, to constitute a quorum and transact business at the Annual Meeting.

The Board of Directors encourages you to read this Proxy Statement and to vote on the matters to be considered at the Annual Meeting. The 2012 Annual Report to Stockholders, which contains the consolidated audited financial statements of legacy MetroPCS Communications, Inc. for the fiscal year ended December 31, 2012, accompanies this Proxy Statement. You may also obtain, without charge, a copy of the legacy MetroPCS Annual Report on Form 10-K for the fiscal year ended December 31, 2012 that was filed with the Securities and Exchange Commission, or the SEC, on March 1, 2013, by writing to T-Mobile US, Inc., Attention: Investor Relations, 1 Park Avenue, 14th floor, New York, NY 10016 or by telephoning our Investor Relations department at (212) 424-2959. This Proxy Statement, the 2012 Annual Report to Stockholders, and Annual Report on Form 10-K also are available, without charge, on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “SEC Filings and Reports.”LOGO

 

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TABLE OF CONTENTS

Item

  Page 

20132015 Proxy Statement Summary Information

   1  
Corporate Governance5

Questions and Answers About the Annual Meeting and VotingBoard of Directors

   5  

Proposal 1: Election of Directors

11

Executive ManagementBoard Committees and Related Matters

   197  

Corporate Governance

22

Controlled Company Exemption

22

Corporate Governance Guidelines and Code of Business Conduct

22

Board’s Role in Risk Management

   2310  

Board Leadership StructureDirector Compensation

   2310  

Executive Sessions of Directors

25

Board Composition and Deutsche Telekom Board Designation Rights

25

Nomination Process, Director CandidateNomination, Selection and Qualifications

   2612  
Proposal 1 — Election of Directors13
Executive Officers19
Proposal 2 — Ratification of the Appointment of PricewaterhouseCoopers LLP as Our Independent Registered Public Accounting Firm for Fiscal Year 201521

Director IndependenceRequired Vote

   2721  

Board and Board Committees

28

Audit Committee

29

Audit Committee Pre-Approval Policy

   3021  

Audit Committee Report

30

Nominating and Corporate Governance Committee

31

Compensation Committee

32

Compensation Committee Interlocks and Insider Participation

34

Compensation Committee Report

34

Executive Committee

34

Compensation of Directors

35

2012 Director Compensation Table

36

2013 Director Compensation

37

Compensation Discussion and Analysis

38

Overview

38

Fiscal 2012 Compensation

38

Our Compensation Highlights for 2012

38

2012 Total Compensation Mix Analysis

45

Our Executive Compensation Program

46

Base Salary

48

Annual Cash Performance Awards

49

Annual Cash Performance Award Criteria

50

Long Term Equity Incentive Compensation

53

Stock Ownership Guidelines

56

Securities Trading Policy

56

Tax Deductibility of Executive Compensation

57

Employment Agreements

57

Executive Compensation

58

2012 Summary Compensation Table

58

2012 Grants of Plan-Based Awards

59

Outstanding Equity Awards at 2012 Fiscal Year-End

60

Option Exercises and Stock Vested for Fiscal Year 2012

62

Pension Benefits

62

Non-Qualified Deferred Compensation

62

Potential Payments upon Termination or Change in Control

62

Security Ownership of Principal Stockholders

72

Transactions with Related Persons and Approval

73

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Item

Page

Transactions with Deutsche Telekom

74

Financing Arrangements

80

Guarantees

83

Procedures for Approval of Related Person Transactions

87

Prior to the Business Combination

88

Indemnification

89

Registration Rights Agreement

89

Proposal 2: Ratification of the Appointment of PricewaterhouseCoopers LLP As Our Independent Registered Public Accounting Firm for Fiscal Year 2013

90

Audit and All Other Fees

   9121  

Audit Committee Pre-Approval of the Independent Registered Public Accounting Firm ServicesReport

   9122


2013 PROXY STATEMENT SUMMARY INFORMATIONLOGO

Annual Meeting Information

 

Annual Meeting of Stockholders
Time and Date:  9:0030 a.m., EDT, Pacific Daylight Time, Tuesday, June 4, 20132, 2015
Place:  The Charles

Hotel Harvard Square, 1 BennettBellevue

11200 Southeast 6th Street Cambridge, Massachusetts 02138

Bellevue, Washington 98004

Record Date:  Close of business on MayApril 10, 20132015
Voting:  Stockholders of record as of the record date are entitled to vote. Each share of common stock is entitled to one vote for each director nominee and one vote for each of the other proposals to be voted on.
Attendance:  If you plan to attend the Annual Meeting in person, you must bring the Notice of Internet Availability of Proxy Materials or the admission ticket (which is attached toenclosed with the paper copy of the proxy card) or ifmaterials. If your shares are not registered in your name, you will need a legal proxy, account statement or other documentation confirming your T-Mobile stock holdings from the broker, bank or other institution that holds your shares. You will also need a valid, government-issued picture identification that matches your Notice of Internet Availability of Proxy Materials, admission ticket, legal proxy or legal proxy.other confirming documentation.

Background of

Agenda and Voting Recommendations 
Proposal  Description  Board Recommendation  Page 
1  Election of Eleven Directors  FOR” each nominee   13  
2  Ratification of Appointment of Independent Registered Public Accounting Firm  FOR   21  
3  Approval of T-Mobile US, Inc. 2014 Employee Stock Purchase Plan  FOR   44  
4  Stockholder Proposal: Human Rights Risk Assessment  AGAINST   48  
5  Stockholder Proposal: Proxy Access  AGAINST   50  

REVIEW YOUR PROXY STATEMENT AND VOTE IN ONE OF FOUR WAYS:

LOGO

VIA THE INTERNET

Visit the website listed on your proxy card

LOGO

BY MAIL

Sign, date and return your proxy card in the enclosed envelope

LOGO

BY TELEPHONE

Call the telephone number on your proxy card

LOGO

IN PERSON

Attend the Annual Meeting in Bellevue

In this Proxy Statement, “we,” “our,” “us,” “T-Mobile” and the Business Combination

On April 30, 2013, the transactions contemplated by the Business Combination Agreement dated October 3, 2012, by and among Deutsche Telekom AG (which we“Company” refer to as Deutsche Telekom), T-Mobile Global Zwischenholding GmbH, a direct wholly-owned subsidiary of Deutsche Telekom (which we refer to as Global), T-Mobile Global Holding GmbH, a direct wholly-owned subsidiary of Global (which we refer to as Holding), T-Mobile USA, Inc., a direct wholly-owned subsidiary of Holding (which we refer to as T-Mobile USA), and MetroPCS Communications, Inc. (which we refer to as MetroPCS) were consummated. Pursuant to the terms of the Business Combination Agreement, among other things:

our certificate of incorporation was amended and restated to, among other things, effect a recapitalization that included a reverse stock split pursuant to which each share of common stock outstanding as of the effective time of the reverse stock split, now represents one-half of a share of our common stock;

as part of the recapitalization, MetroPCS made a payment in cash, which we refer to as the cash payment, in the aggregate amount of $1.5 billion, without interest (or approximately $4.049 per share pre-reverse stock split of MetroPCS common stock), to the record holders of our common stock immediately following the effective time of the reverse stock split;

immediately following the cash payment, Deutsche Telekom’s subsidiary, Holding, transferred to us all of the shares of capital stock of T-Mobile USA in consideration for newly-issued shares of common stock representing approximately 74% of our outstanding common stock on a fully-diluted basis;

our name was changed from “MetroPCS Communications, Inc.” to “T-Mobile US, Inc.”; and

we and Deutsche Telekom entered into a Stockholder’s Agreement, which we refer to as the Stockholder’s Agreement, which sets forth certain governance and other rights of Deutsche Telekom.

In addition, following the closing of the transactions summarized above, the successor to MetroPCS, Inc., a direct wholly-owned subsidiary of MetroPCS, merged with and into its direct wholly-owned subsidiary MetroPCS Wireless, Inc., with MetroPCS Wireless, Inc. continuing as the surviving entity and, immediately thereafter, MetroPCS Wireless, Inc. merged with and into T-Mobile USA, with T-Mobile USA continuing as the surviving entity and our wholly-owned subsidiary. We refer to these transactions collectively as the Business Combination.

Although MetroPCS Communications, Inc. (which is now called T-Mobile US, Inc.) was and the legal acquirer of T-Mobile USA, Inc. in the Business Combination, for accounting purposes, the Business Combination is treated as a “reverse acquisition,” and T-Mobile USA is treated as the accounting acquirer. As a result of reverse

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acquisition accounting, beginning after the consummation of the Business Combination, T-Mobile USA’s financial statements will become our historical financial statements for financial reporting purposes. However, because the Business Combination occurred after December 31, 2012, the accompanying 2012 Annual Report to Stockholders is comprised primarily of financial, business and other information regarding MetroPCS Communications, Inc., which we sometimes refer to as legacy MetroPCS (including its Annual Report on Form 10-K for the year ended December 31, 2012), together with information regarding the members of our Board of Directors and senior management team and certain corporate matters updated to give effect“Annual Meeting” refers to the Business Combination. Additionally, although this Proxy Statement contains information regarding the Company’s current Board2015 Annual Meeting of Directors, committees of the Board and other governance structures and policies in effect after the consummation of the Business Combination, we are the same SEC registrant as legacy MetroPCS. As a consequence, much of the information contained in this Proxy Statement relating to executive and director compensation and compensation discussion and analysis (which was also provided in Part III of legacy MetroPCS’s Annual Report on Form 10-K for the year ended December 31, 2012) represents historical information regarding legacy MetroPCS.Stockholders.

Our Governance Practices

Due to Deutsche Telekom’s ownership of a majority of our outstanding shares of common stock, we are a “controlled company” under the rules of the New York Stock Exchange, or NYSE, and are therefore exempt from certain NYSE corporate governance requirements. Pursuant to NYSE rules, we have less than a majority of independent directors on our Board of Directors and our nominating/corporate governance and compensation committees are not composed entirely of independent directors. Our Board recognizes the importance of good corporate governance practices, which it believes enhance corporate performance, accountability and long-term stockholder value. We have adopted a number of corporate governance practices to enhance our governance, including:

 

•    We have declassified our Board, so that allT-Mobile      Notice of our directors are elected annually to one-year terms;2015 Annual Meeting and Proxy Statement

1


2015 PROXY STATEMENT SUMMARY INFORMATION

Commitment to Good Corporate Governance

We have structured our corporate governance program to promote the long-term interest of stockholders, strengthen Board and management accountability and help build public trust in the Company. Highlights include:

Unclassified Board, with all directors elected annually

Separation of Chairman and Chief Executive Officer roles

Appointment of a lead independent director

Independent directors serve as chairs of our Audit, Nominating and Corporate Governance and Compensation Committees

Regular executive sessions of independent directors

Annual Board and committee self-evaluations

Stock ownership guidelines for directors and executives

Cash and equity awards with clawback provisions

T-Mobile Achieved a Record Year of Growth in 2014 and Delivered Strong Financial and Operational Performance 

T-Mobile had an extraordinary year in 2014. We delivered a record year of growth in 2014 as our Un-carrier initiatives continued to resonate with consumers. Since launching Un-carrier in 2013,T-Mobile has transformed the wireless industry with consumer-friendly offers that resolve customer pain points and differentiateT-Mobile from the competition. We continued to deliver strong customer growth in 2014 and ended the year with more than 55 million total customers, reflecting total net customer additions of 8.3 million in 2014, an 89% increase from the prior year, makingT-Mobile America’s fastest growing wireless company. The strong performance is underpinned by the Company’s network, which continued to expand at a breakneck pace. At the end of 2014,T-Mobile’s 4G LTE network covered 265 million people, exceeding our original year-end target of 250 million.

In addition to strong customer growth, T-Mobile delivered outstanding financial results. Service revenues in 2014 increased by 9.0% year-over-year, and total revenues increased by 13.1% year-over-year. Adjusted EBITDA amounted to $5.636 billion in 2014, up 6.0% year-over-year. Since the Business Combination1, we have significantly grown total stockholder return (“TSR”). From May 1, 2013 through March 31, 2015, T-Mobile TSR outpaced 17 of our19 peer companies. Our stock price has increased by 92% from May 1, 2013 through March 31, 2015.

Our executive compensation program emphasizes pay for performance. As a result, our 2014 Named Executive Officer compensation reflects T-Mobile’s strong 2014 operational and financial performance.

LOGO

 

1

•    FiveThe first day of our eleven directors are independent under NYSE rules;

•    An independent director has been appointed as chair of each of our Nominating and Corporate Governance Committee and our Compensation Committee;

•    The Chairmantrading after consummation of the Board and Chief Executive Officer roles have been separated, andbusiness combination of T-Mobile USA, Inc. (“T-Mobile USA”), formerly a non-management director (who is an employeewholly owned subsidiary of Deutsche Telekom) servesTelekom AG (“Deutsche Telekom”), and MetroPCS Communications, Inc. (the “Business Combination”) pursuant to the Business Combination Agreement dated October 3, 2012, as Chairmanamended, among Deutsche Telekom, Metro PCS Communications, Inc. and T-Mobile USA. We use the term “legacy MetroPCS” to refer to the legacy business of MetroPCS Communications, Inc. prior to the consummation of the Board;

•    Our Board of Directors has appointed a lead independent director to serve as a liaison between the independent directors and the Chairman of the Board and preside at meetings of our independent directors;

•    The charter of the Executive Committee of the Board requires that at least one member of the committee be the lead independent director or another director who is not affiliated with Deutsche Telekom;

•    Pursuant to the terms of our Stockholder’s Agreement, transactions between us and Deutsche Telekom or its affiliates must be approved by our Board of Directors, including a majority of the directors who are not affiliated with Deutsche Telekom, and our related person transaction policy requires that before the Board of Directors votes on any proposed transaction between us and Deutsche Telekom or its affiliates, such transaction must be reviewed by our Audit Committee; and

•    We mitigate undue risk in our executive compensation programs through the use of an independent compensation consultant, a clawback policy for annual and long-term incentive compensation awards, stringent stock ownership and holding requirements, and prohibition of hedging and pledging of Company securities.Business Combination.

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2012 Board and Committee Meetings*

 

Board/Committee

 Number of Meetings2

Board

   22

Audit Committee

13

Compensation Committee

7

Nominating and Corporate Governance Committee

2

Finance and Planning Committee**

3
*Represents information regarding legacy MetroPCS Board and Board Committee meetings in 2012.

**The Finance and Planning Committee was dissolved by the Board following the closing of the Business Combination.

Highlights of Requested Stockholder Actions at the Annual Meeting

Agenda and Voting Recommendations 
Proposal Description  Board Recommendation Page 
1 Election of Directors  FOR” each nominee  11  
2 Ratification of the Appointment of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for 2013  FOR  90  
3 Approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan  FOR  92  

Elect eleven directors (Proposal No. 1 begins on page 11 of this Proxy Statement)2015 PROXY STATEMENT SUMMARY INFORMATION

Since the consummation of the Business Combination,Executive Compensation Highlights – Paying for Performance

Our executive compensation program is aligned with our Board of Directors has consisted of eleven directors, including two directors, W. Michael Barnesbusiness strategy and James N. Perry, Jr., who served as directors prior to the Business Combination, and nine other directors who were appointed to our Board effective immediately after the consummation of the Business Combination. All of our current directors are standing for re-election at the Annual Meeting. Each of the director nominees standing for re-election, of whom eight were designated for nomination by Deutsche Telekom pursuant to its rights under our restated certificate of incorporation and the Stockholder’s Agreement, was unanimously nominated by our Board based on his or her expertise, qualifications, attributes and skills. Information regarding each of our directors is set forth on pages 12-17 of this Proxy Statement. The Board recommends that you vote “FOR” the election of each of the director nominees.

Ratify the appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for fiscal year 2013 (Proposal No. 2 begins on page 90 of this Proxy Statement)

After the consummation of the Business Combination, the Audit Committee of our Board of Directors appointed PricewaterhouseCoopers LLP to serve as our independent registered public accounting firm for the fiscal year ending December 31, 2013. We are seeking ratification by our stockholders of the appointment of PricewaterhouseCoopers LLP. The Board recommends that you vote “FOR” the ratification of PricewaterhouseCoopers LLP to serve as our independent registered public accounting firm for the fiscal year ending December 31, 2013.

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Approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan (Proposal No. 3 begins on page 92 of this Proxy Statement)

After the consummation of the Business Combination, the Board of Directors approved, subject to stockholder approval, the T-Mobile US, Inc. 2013 Omnibus Incentive Plan, which we refer to as the 2013 Omnibus Incentive Plan. The purpose of the 2013 Omnibus Incentive Plan is to enhance our abilitydesigned to attract and retain highly-qualified persons to serve as officers, non-employee directors, key employeestop talent, reward business results and consultantsexceptional individual performance, and advisors of the Company and to promote greater ownershipmost importantly, maximize stockholder value. Our executive compensation program is competitive in the marketplace and highly incentive-based, with Company by such individuals in order to align their interests more closely with the interestsperformance determining a significant portion of our stockholders. If the 2013 Omnibus Incentive Plan is approved by our stockholders, it will authorize the issuance of up to 63,275,000 shares of common stock pursuant to awards to the persons who are eligible to receive awards under the 2013 Omnibus Incentive Plan, including officers and non-employee directors. The Board recommends that you vote “FOR” the proposal to approve the 2013 Omnibus Incentive Plan.

Frequency of Non-Binding, Advisory Executive Compensation Vote

At our 2011 Annual Meeting of Stockholders, we submitted a non-binding, advisory proposal on the frequency of the non-binding, advisory vote of stockholders to approve executive compensation, or the say-on-pay vote. Our Board of Directors recommended a triennial, or once every three years, say-on-pay vote. At the 2011 Annual Meeting of Stockholders, a majority of the votes cast (excluding abstentions) were in favor of holding the non-binding, advisory vote on executive compensation once every three years. After taking into consideration, among other factors, the resulting vote of the stockholders at our 2011 Annual Meeting of Stockholders, our Board determined to hold the non-binding, advisory vote to approve executive compensation once every three years. As a result, our next vote on a non-binding, advisory proposal to approve executive compensation will be at the 2014 Annual Meeting of Stockholders. The next frequency vote will be held on or before the Company’s 2017 Annual Meeting of Stockholders.

2014 Annual Meeting
Deadline for stockholder proposals under Exchange Act Rule 14a-8January 17, 2014
Deadline for business proposals and nominations under our bylawsNo earlier than February 4, 2014
and no later than March 6, 2014

Other

Frequency of advisory, non-binding vote to approve executive compensation

3 years

Next non-binding, advisory vote to approve executive compensation

2014

Next non-binding, advisory vote on the frequency of the vote to approve

executive compensation

2017

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Questions and Answers About the Annual Meeting and Voting

Why did I receive these materials?

As a holder of common stock of the Company at the close of business on May 10, 2013, the record date, you are entitled to vote at the Company’s Annual Meeting to be held at The Charles Hotel, Harvard Square, 1 Bennett Street, Cambridge, Massachusetts 02138, on June 4, 2013 at 9:00 a.m. EDT. This Proxy Statement provides notice of the Annual Meeting, describes the proposals to be voted on at the Annual Meeting by the holders of record of our common stock on the record date, and includes information required to be disclosed to all of our stockholders.

What is the purpose of the Annual Meeting?

The purpose of the Annual Meeting is to vote upon:

The election of eleven directors for terms expiring at the 2014 Annual Meeting of Stockholders;

The ratification of the Audit Committee’s appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for the 2013 fiscal year;

The approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan; and

The consideration of any other business that may be properly brought before the Annual Meeting or any continuation, adjournment or postponement thereof.

Who may vote at the Annual Meeting?

If you are a holder of record of our common stock as of the record date – that is, as of May 10, 2013 you hold shares of common stock registered in the Company’s records in your own name – you may vote your shares of the Company’s common stock on the matters to be voted on at the Annual Meeting. You will receive only one proxy card for all the shares of common stock you hold in certificate and book-entry form.

If, as of the record date, you hold shares of our common stock in “street name” – that is, through an account with a bank, broker or similar institution, where the institution is shown on the Company’s records as the “registered holder” of your shares – you may direct the registered holder how to vote your shares at the Annual Meeting by following the instructions that you will receive from the registered holder. When a bank, broker or other similar institution (the registered holder) holds shares for someone else, it informs us how many clients it has who are beneficial owners of our common stock and the Company then provides the registered holder, or its agent, with the number of copies of the proxy materials as the registered holder requested. Each registered holder or its agent must then forward the proxy materials to you to obtain your direction on how to vote your shares. When you receive proxy materials from the registered holder, you will receive directions on how to instruct the registered holder how to vote your shares. The bank, broker or other institution will then total the votes it receives and submit a proxy card reflecting the aggregate votes of all the beneficial owners for which it serves as the registered holder. See “How are the votes recorded? And, what is the effect if I do not vote?” below for further explanation regarding voting through the registered holder.

How do proxies work?

While we encourage all holders of our common stock to attend the Annual Meeting using the admission ticket included in the proxy materials, we have included a proxy card, which provides the record holders of our common stock with a means to vote on the proposals to be considered at the Annual Meeting without having to attend the Annual Meeting in person. (If you own your shares in street name, you can only vote them by instructing the registered holder how to vote your shares or by obtaining a legal proxy from the registered holder, attending the Annual Meeting in person and voting the shares at the Annual Meeting pursuant to the legal proxy.)

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Our Board of Directors is asking for your proxy to be voted at the Annual Meeting. This means you may vote by authorizing the persons selected by us as your proxy to vote your shares at the Annual Meeting according to your instructions on the matters set forth in this Proxy Statement, and according to their discretion on any other business that may properly come before the Annual Meeting. We have designated two of our executive officers as proxies for the Annual Meeting: John J. Legere, our President and Chief Executive Officer, and J. Braxton Carter, our Executive Vice President and Chief Financial Officer.

How do I vote?

If you are a holder of record of our common stock as of the record date, you may vote in the following ways:

By Internet. Go to www.voteproxy.com 24 hours a day, 7 days a week, and follow the on-screen instructions. You will need to have your proxy card available and use the Company number and account number shown on your proxy card to cast your vote. This method of voting will be available until 11:59 p.m. Eastern Daylight Time, or EDT, on June 3, 2013, or the date immediately before any date to which the Annual Meeting may be continued, postponed or adjourned. The Company is incorporated under Delaware law, which specifically permits electronically transmitted proxies, provided that each such proxy contains or is submitted with information from which the inspector of elections can determine that such proxy was authorized by the stockholder. The Company’s Internet voting procedures are designed to authenticate holders’ identities, to allow holders to vote their shares, and to confirm that their voting instructions have been properly recorded.

By Mail. You may vote by mail through direct submission to the Company of your executed proxy card. You should sign your proxy card exactly in the same name as it appears on the card, date your proxy card and indicate your voting preference on each proposal. You should mail your proxy card in plenty of time to allow delivery prior to the Annual Meeting. Proxy cards received by the Company after June 4, 2013 at 9:00 a.m. EDT may not be considered unless the Annual Meeting is continued, or adjourned or postponed and then only if received before the date and time the continued, adjourned or postponed Annual Meeting is held.

By Phone. You also may vote by touchtone phone from the U.S. and Canada, using the toll-free number on the proxy card and the procedures and instructions described on the proxy card. Note that the telephone voting procedures are designed to authenticate holders’ identities, to allow holders to vote their shares and to confirm that their voting instructions have been properly recorded. Telephone voting will be considered at the Annual Meeting if completed prior to 11:59 p.m. EDT on June 3, 2013, or the date immediately before any date to which the Annual Meeting may be continued, adjourned or postponed.

In Person. You also may vote in person at the Annual Meeting. See “What do I need in order to attend the Annual Meeting?” below.

If you hold shares of our common stock in “street name” as of the record date, please see the voting instructions form provided to you by your broker or other registered holder for instructions on how to vote by Internet, by mail and by phone. You also may vote in person at the Annual Meeting. See “What do I need in order to attend the Annual Meeting?” below.

How are the votes recorded? And, what is the effect if I do not vote?

If the Company receives a valid proxy card from you by mail (e.g., signed by the holder of record or registered holder and dated) or receives your vote by phone or Internet, your shares will be voted by the named proxy holders as indicated in your voting preference selection. As a holder of record, if you return your signed and dated proxy card without indicating your voting preference on one or more of the proposals to be considered at the Annual Meeting, or you otherwise do not indicate your voting preference via phone or Internet on one or more of the proposals to be considered at the Annual Meeting, those shares on which you did not indicate your voting preference will be voted in accordance with the recommendations of the Board of Directors.

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If you hold your shares in street name (through a registered holder) and do not provide voting instructions to the registered holder prior to the Annual Meeting, the registered holder will not be permitted to vote your shares in the election of directors or on the proposal to approve the 2013 Omnibus Incentive Plan.If you want your shares to be voted, you must instruct your broker how to vote such shares. Absent your specific instructions, the New York Stock Exchange (NYSE) rules do not permit brokers and banks to vote your shares on a discretionary basis for non-routine corporate governance matters, such as the election of directors and the approval of the 2013 Omnibus Incentive Plan, but your shares can be voted without your instructions on the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm, as this is considered a routine matter. See “How many votes are required to approve each Proposal?” below.

If you indicate that you wish to withhold authority or abstain from voting on a proposal, your shares will not be voted on that proposal and will have no direct effect on the outcome of the election of directors, the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm or the approval of the 2013 Omnibus Incentive Plan. Your vote, however, will count toward the quorum necessary to hold the Annual Meeting.

If you are a registered holder of our common stock and do not send in your proxy card, vote via phone or Internet, or vote in person at the Annual Meeting, your vote will not be counted toward the proposals or for the purpose of establishing the quorum at the Annual Meeting.

Can I change my vote or revoke my proxy?

Yes. If you are a holder of record of our common stock, you may revoke your proxy card at any time prior to the voting deadlines referred to in “How do I vote?” above by (1) delivering to the Company’s Corporate Secretary at our principal executive office located at 12920 SE 38th Street, Bellevue, Washington 98006, a written revocation that must be received by the Company prior to the date and time of the Annual Meeting, or, if the Annual Meeting is continued, adjourned or postponed, the date and time of such continued, adjourned or postponed meeting, (2) submitting another valid proxy card with a later date by mail, (3) voting by phone or Internet, or (4) by attending the Annual Meeting in person and giving the Company’s Inspector of Elections notice of your intent to vote your shares in person. Attendance at the Annual Meeting will not, by itself, revoke a proxy. If your shares are held in street name, you must contact your broker or other registered holder in order to revoke your previously submitted voting instructions. Any such revocation should be sufficiently in advance of the Annual Meeting to ensure that the revocation of the proxy card submitted by your registered holder is received by the Company’s Corporate Secretary prior to the date and time of the Annual Meeting, or by the date and time at which the Annual Meeting may be continued, adjourned or postponed, or it may not be effective.

What is required for a quorum at the Annual Meeting?

In order to transact business at the Annual Meeting, a majority of the shares of the Company’s common stock outstanding on the record date and entitled to vote at the Annual Meeting must be present, in person or by proxy, at the Annual Meeting. We refer to this as a quorum. If a quorum is not present at the Annual Meeting, no business can be transacted at that time, and the meeting will be continued, adjourned or postponed to a later date.

A stockholder’s instruction to “withhold authority,” “abstentions,” and “broker non-votes” will be counted as present and entitled to vote at the Annual Meeting for purposes of determining quorum. “Withhold authority” is a stockholder’s instruction to withhold authority to cast a vote “for” the election of one or more director nominees. An “abstention” represents an affirmative choice to decline to vote on a proposal other than the election of directors, including the proposals to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm and to approve the 2013 Omnibus Incentive Plan. A “broker non-vote” occurs when a bank, broker or other registered holder holding shares for a beneficial owner does not vote on a proposal because the registered holder has not received voting instructions on the proposal from the

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beneficial owner, and the subject matter of the proposal is one upon which such registered holder is not permitted under NYSE rules to vote uninstructed shares in its discretion. See “Discretionary voting” in “How many votes are required to approve each Proposal?” below.

How many votes are required to approve each Proposal?

Holders of record as of the record date will be entitled to one vote per share of common stock held by such holder on all matters to be voted on.compensation.

 

Key Features of our Executive Compensation Program
What we doWhat we don’t do
ProposalVote
Required
Withhold
Votes/Abstentions
Counted as a
“No” Vote
Discretionary
Vote
Allowed?

1. Election of DirectorsLOGO

 PluralityNoNo

2. Ratification of independent registered public accounting firmEmphasis on pay for performance

 MajorityNoYes

3. Approval of the 2013 Omnibus Incentive PlanLOGO

 

No short-selling, hedging or pledging of Company’s securities

Majority (1) 

LOGO

 No

Independent compensation consultant

 

LOGO

 

No excise tax gross ups

LOGO

 

Minimum stock ownership guidelines

LOGO

No special executive retirement program

(1)In addition, NYSE rules require approval by

LOGO

Clawback policy to recapture incentive payments

LOGO

No acceleration of compensation upon retirement

LOGO

Use of multiple performance measures and caps on potential incentive payments

LOGO

No single-trigger vesting of equity awards upon a change in control

LOGO

Substantial majority of votes cast on Proposal 3, provided that thetarget total votes cast on that proposal must represent over 50% in interestcompensation is variable

LOGO

No excessive perquisites

LOGO

Use of all securities entitled to vote on the proposal.executive compensation statements (“tally sheets”)

For the electionWhat We Pay and Why: Goals and Elements of directors, a “plurality” means that the director nominees receiving the highest number of “FOR” votes from our holders entitled to vote will be elected. Under our bylaws, our directors are elected by a plurality of the votes cast on each such director’s election by stockholders entitled to vote on the election of directors at the Annual Meeting. Withheld votes and broker non-votes will have no direct effect on the outcome of the election of directors.Compensation

A “majority” means, in most cases, for any matter or proposal presented, that such matter or proposal will be approved if it receives a number of “FOR” votes that is a majority of the votes cast by the holders of our shares of common stock entitled to vote thereon. Neither an abstention nor a broker non-vote will count as a vote cast “FOR” or “AGAINST” the proposal. Therefore, abstentions and broker non-votes will have no direct effect on the outcome of the proposal. Under our bylaws, the ratification of our independent registered public accounting firm and approval of our 2013 Omnibus Incentive Plan are decided by the vote of a majority of the votes cast in person or by proxy at the Annual Meeting by the holders of our shares of common stock entitled to vote thereon.

“Discretionary voting” occurs when a bank, broker or other registered holder does not receive voting instructions from the beneficial owner and votes those shares in its discretion on any proposal on which the NYSE rules permit such bank, broker or other registered holder to vote. As noted above, when banks, brokers and other registered holders are not permitted under the NYSE rules to vote without specific instructions from the beneficial owners, they are referred to as “broker non-votes.” The proposal to ratify PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, 2013 is the only proposal on which “discretionary voting” is allowed.LOGO

How does the Board recommend I vote on the Proposals?

The Board of Directors recommends you vote as follows:

 

ProposalT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement Recommended Vote3


2015 PROXY STATEMENT SUMMARY INFORMATION

To promote a performance-based culture that further aligns the interests of management and stockholders, in 2014 the executive compensation program focused extensively on variable, performance-based compensation. As illustrated in the charts below, the substantial majority of our Named Executive Officers’ total compensation as reported in the 2014 Summary Compensation Table was in the form of variable compensation (short-term and long-term).

LOGO

4


LOGO

The Company is committed to good corporate governance, which promotes the long-term interests of stockholders, strengthens Board and management accountability and helps build public trust. Our Board of Directors has established a boardroom dynamic that encourages meaningful and robust discussions based on each director’s unique and diverse background, resulting in informed decision-making that seeks to maximize stockholder value and

promotes stockholder interests. Directors exercise thorough oversight of decisions regarding the Company’s strategy and outlook. The Board regularly reviews developments in corporate governance and updates its practices and governance materials as it deems necessary and appropriate. The dashboard below highlights key aspects of the Company’s corporate governance program.

Governance Dashboard

Key Governance Materials

 LOGO

1.Certificate of Incorporation

 LOGO

By-Laws

 LOGO

Corporate Governance Guidelines

 LOGO

Stockholder’s Agreement

 LOGO

Charter for Each Board Committee

 LOGO

Code of Business Conduct

 LOGO

Code of Ethics for Senior Financial Officers

You can access the key governance materials on the Investor Relations section of our website athttp://investor.t-mobile.com by selecting “Governance Documents” under the “Corporate Governance” tab. Instructions on how to obtain copies of the Company’s corporate governance materials can also be found on page 55. Certain of the key governance materials are also available viawww.sec.gov.

Governance Highlights

 LOGO

Unclassified Board and Annual Election of Directors

 LOGO

“FOR”

the election of each of the director nominees11 Director Nominees

 LOGO

Separation of Chairman and Chief Executive Officer Roles

 LOGO

Lead Independent Director

 LOGO

Independent Audit, Compensation and Nominating and Corporate Governance Committee Chairs

 LOGO

Regular Executive Sessions of Independent Directors

 LOGO

Risk Oversight

 LOGO

Regular Board and Committee Self-Evaluations

 LOGO

Stockholder Right to Call Special Meeting

 LOGO

Anti-Hedging, Anti-Short Sale and Anti-Pledging Policies

 LOGO

Executive Compensation Driven by Pay For Performance Philosophy

 LOGO

Share Ownership Guidelines for Executives and Directors

 LOGO

Cash and Equity Awards with Clawback Provisions

About the Board of Directors

Corporate Governance Guidelines and Code of Business Conduct

 

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Our Board of Directors established our corporate governance guidelines, which, together with our certificate of incorporation, our bylaws and the Stockholder’s Agreement with Deutsche Telekom, set forth the framework within which the Board and its committees direct the affairs of the Company. See “Transactions with Related Persons and Approval — Transactions with Deutsche Telekom — Stockholder’s Agreement” for more information regarding the

Stockholder’s Agreement. The Board also adopted our Code of Business Conduct, which establishes the standards of ethical conduct applicable to all of our directors, officers and employees. In addition, we have a Code of Ethics for Senior Financial Officers. In the event of a waiver of any Code of Business Conduct or Code of Ethics provisions applicable to directors or executive officers, we will promptly disclose the Board’s actions on our website.


ProposalT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement Recommended Vote5

2. Ratification of independent registered public accounting firm

“FOR”

the ratification of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the 2013 fiscal year

3. Approval of the 2013 Omnibus Incentive Plan

“FOR”

the approval of our 2013 Omnibus Incentive Plan


CORPORATE GOVERNANCE

What do I need in order to attend the Annual Meeting?Board Composition

If you are a record holder of shares

The size of our common stock, an admission ticket is attachedBoard of Directors has been fixed at eleven. The size of our Board may be changed pursuant to your proxy card. However, if you hold yourour bylaws, subject to the provisions of our certificate of incorporation and the Stockholder’s Agreement between the Company and Deutsche Telekom, which beneficially owns a majority of our outstanding shares of common stock (approximately 65.95% as of March 31, 2015).

Pursuant to our certificate of incorporation and the Stockholder’s Agreement, Deutsche Telekom has certain rights to designate director nominees and to have such designees serve on the committees of the Board. See “Transactions with Related Persons and Approval — Transactions with Deutsche Telekom — Stockholder’s Agreement” for more information.

Director Independence

The Board of Directors evaluates the independence of each director, including nominees for election to the Board, in street name, you should askaccordance with applicable laws and regulations, New York Stock Exchange (“NYSE”) rules and our corporate governance guidelines. As a “controlled company” under NYSE rules, we are exempt from the broker, bankrequirement to have a majority of independent directors on our Board. However, pursuant to our certificate of incorporation, the Stockholder’s Agreement and our corporate governance guidelines, the Board is required to have at least three directors, including all the members of the Audit Committee, who meet the director independence standards under NYSE rules. We have five directors who our Board has determined are independent. The Board considers all relevant facts and circumstances in determining independence, including, among other things, making an affirmative determination that the

director has no material relationship with the Company directly or as an officer, stockholder, or partner of an organization that has a material relationship with the Company. For certain types of relationships, NYSE rules require us to consider a director’s relationship with the Company, and also with any parent or subsidiary in a consolidated group with the Company, which includes Deutsche Telekom and its affiliates.

The Board of Directors has determined that Messrs. Barnes, Datar, Guffey and Westbrook and Ms. Taylor are independent under NYSE rules and our corporate governance guidelines. In addition, the Board has determined that each member of the Audit Committee meets the heightened independence criteria applicable to audit committee members under NYSE rules.

Separate Chairman and Chief Executive Officer Roles

Our Board of Directors has chosen to separate the roles of Chairman of the Board and Chief Executive Officer, and it has appointed Timotheus Höttges, Deutsche Telekom’s Chief Executive Officer, as the Chairman of the Board.

We believe that separating the roles of Chief Executive Officer and Chairman of the Board is appropriate for the Company and in the best interests of the Company and its stockholders at this time. Our Chairman manages the overall Board function, and his current responsibilities include chairing all regular sessions of the Board; establishing the agenda for each Board meeting in consultation with the lead independent director, our Chief Executive Officer and other

senior management as appropriate; and helping to establish, coordinate and review the criteria and methods for evaluating, at least annually, the effectiveness of the Board and its committees. The separation of the offices allows Mr. Höttges to focus on management of Board matters and allows our Chief Executive Officer to focus on managing our business. Additionally, we believe the separation of the roles ensures the objectivity of the Board in its management oversight role, specifically with respect to reviewing and assessing our Chief Executive Officer’s performance. The Board believes that its role in risk oversight did not impact the leadership structure chosen by the Board.

Lead Independent Director

The lead independent director, a position currently held by Teresa A. Taylor, coordinates the activities of our independent directors, calls and presides over the executive sessions of the independent directors and functions as a liaison between such independent

directors and the Chairman of the Board and/or the Chief Executive Officer. The lead independent director provides input on the flow of information to the Board, including the Board’s agenda and schedule.

Controlled Company Exemptions

We qualify as a “controlled company” under the NYSE listing standards because Deutsche Telekom beneficially owns a majority of our outstanding shares of common stock (approximately 65.95% as of March 31, 2015). As a controlled company, we are eligible for certain exemptions from the NYSE rules. Specifically, we are not required to have:

A majority of independent directors;

A nominating and corporate governance committee composed entirely of independent directors; or

A compensation committee composed entirely of independent directors.

In addition, we are exempt from the rules adopted by the Securities and Exchange Commission (the “SEC”) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and related NYSE rules relating to compensation committee member independence and compensation committee consultants.

We have availed ourselves of all of the above exemptions.

6


CORPORATE GOVERNANCE

Board Meetings and Director Attendance

Directors are expected to attend all meetings of the Board of Directors and each committee on which they serve, as well as our Annual Meeting of Stockholders. In 2014, our Board, as then constituted, met nine times. During 2014, each director attended at least 75% of the total number of meetings of the Board and Board committees on which he or she served, during the period that he or she served. All of our continuing directors other than Mr. Dannenfeldt attended our 2014 Annual Meeting of Stockholders. Mr. Dannenfeldt joined our Board in November 2013 and had a pre-existing conflict that prevented him from attending the 2014 Annual Meeting of Stockholders.

Executive sessions, or meetings of outside (non-management) directors without management present, are held at each regularly

scheduled Board meeting or more frequently if necessary. Our Chairman or the lead independent director presides over these executive sessions. The executive sessions provide an opportunity for outside directors to review any matters of interest raised by the Chairman of the Board, the lead independent director or the other non-management members of the Board, including strategic, operational, or financial issues and management performance and succession.

In addition, our corporate governance guidelines require the independent directors to meet at least once each year in executive session, with the lead independent director presiding at such executive session.

Communications with Directors

Interested persons may contact the Chairman of the Board, the Board as a whole, the lead independent director, or any individual director as follows:

T-Mobile US, Inc.

The Board of Directors

c/o Corporate Secretary

12920 SE 38th Street

Bellevue, Washington 98006

After receipt, communications will generally be forwarded to the Chairman of the Board, the whole Board, the lead independent director or specific directors as the Corporate Secretary deems appropriate based on the facts and circumstances outlined in the communication. Communications that are unrelated to the duties and responsibilities of the Board or are unduly hostile, threatening, potentially illegal or similarly unsuitable will not be forwarded. Responses to letters and any communications that are excluded are maintained by the Company and are available to any director upon request.

Board Committees and Related Matters

The Board of Directors has four standing committees: Audit, Compensation, Executive and Nominating and Corporate Governance. The Board makes committee and committee chair assignments annually at its meeting immediately following the Annual Meeting of Stockholders, although further changes may be made from time to time as deemed appropriate by the Board.

Each committee has a Board-approved charter, which is reviewed annually by the respective committee. Recommended changes, if

any, are submitted to the Board for approval. Each committee may retain and compensate consultants or other institution (registered holder)advisors as necessary for it to carry out its duties, without consulting with or obtaining the approval of the Board or the Company. A copy of the charters for each standing committee can be found on the Investor Relations section of our website athttp://investor.t-mobile.com by selecting “Governance Documents” under the “Corporate Governance” tab.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement7


CORPORATE GOVERNANCE

Audit Committee

Chair: Srikant M. Datar

Additional Members: W. Michael Barnes, Kelvin R. Westbrook*

Meetings Held in 2014: 8

Independence: Each member of the Audit Committee is independent under applicable SEC regulations and NYSE rules.

Audit Committee Financial Literacy and Expertise: Our Board has determined that all of the members are financially literate under applicable NYSE rules and are “audit committee financial experts” as defined in applicable SEC rules.

*

James N. Perry, Jr., whose term expired as of the date of our 2014 Annual Meeting of Stockholders, served on the Audit Committee from May 1, 2013 to June 5, 2014, at which time Mr. Westbrook was appointed to the Audit Committee.

The Audit Committee represents and assists the Board in its oversight responsibility relating to the integrity of the Company’s financial statements and the financial reporting process, disclosure controls and procedures and internal audit functions. The Audit Committee also oversees the appointment, compensation and retention of our independent registered public accounting firm, including the performance by the independent registered public accounting firm of permissible audit, audit-related, and non-audit services, and the associated fees. The Audit Committee periodically

reviews the Company’s risk assessment and risk management policies, as well as our compliance and ethics programs. The Audit Committee develops and oversees compliance with the code of ethics for senior financial officers and the code of business conduct for all employees, officers and directors. The Committee is also responsible for establishing procedures for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. In addition, the Committee reviews and approves all related person transactions.

CompensationCommittee

Chair: Teresa A. Taylor

Additional Members: W. Michael Barnes*, Thomas Dannenfeldt, Lawrence H. Guffey, Raphael Kübler

Meetings Held in 2014: 7

Section 16 Subcommittee Members: Teresa A. Taylor, Lawrence H. Guffey

Independence: Ms. Taylor and Messrs. Barnes and Guffey are independent under applicable NYSE rules.

Compensation Committee Interlock and Insider Participation: No members of the Compensation Committee who served during 2014 were officers or employees of the Company or any of its subsidiaries during the year, were formerly Company officers or had any relationship otherwise requiring disclosure as a compensation committee interlock.

*

Mr. Westbrook served on the Compensation Committee from May 1, 2013 to June 5, 2014, at which time Mr. Barnes was appointed to the Committee.

The Compensation Committee has overall responsibility for evaluating and approving compensation plans, policies and programs applicable primarily to the Company’s executive officers, including executive compensation philosophy, and Chief Executive Officer compensation. The Compensation Committee is also responsible for certain compensation programs affecting the Company’s employees generally, such as equity compensation plans, and annually reviews with management risks arising from such programs. In addition, the Committee reviews and oversees the independent director compensation policies. A significant focus area of the Compensation Committee is succession plan development for senior management.

The Compensation Committee has established the Section 16 Subcommittee, which has sole authority to approve all awards granted to the Company’s officers who are subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (“Section 16 officers”) that holds yourare intended to qualify as performance-based compensation for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and unless otherwise determined by the Compensation Committee, authority to approve all equity or equity-based awards to the Company’s Section 16 officers. The Compensation Committee has delegated authority to the Company’s Executive Vice President, Human Resources, to make awards to employees who are not Section 16 officers.

Compensation Consultant.    The Committee has retained Mercer (a wholly owned subsidiary of Marsh & McLennan Companies, Inc.), a well-recognized employee benefits and compensation consulting firm, as its independent compensation consultant to advise the Compensation Committee in its evaluation of the compensation and benefits provided to the Chief Executive Officer and the other executive officers. At the request of the Committee, a consultant from Mercer generally attends the Committee meetings at which executive officer compensation is discussed and provides information, research and analysis pertaining to executive compensation as requested by the Committee. Mercer also updates the Committee on market trends.

In connection with its engagement of Mercer, the Compensation Committee considered various factors bearing upon Mercer’s independence including, but not limited to, the amount of fees received by Mercer from the Company, Mercer’s policies and procedures designed to prevent conflicts of interest, and the existence of any business or personal relationship that could impact Mercer’s independence. After reviewing these and other factors, the Compensation Committee determined that Mercer was independent and that its engagement did not present any conflicts of interest. Mercer also determined that it was independent from management and confirmed this in a written statement delivered to the Compensation Committee. During 2014, Mercer provided executive compensation services to the

8


CORPORATE GOVERNANCE

Company. The aggregate fees for such services were approximately $190,000. In addition, Mercer provided services to the Company for investment and benefits consulting and retirement plan consulting. The aggregate fees for such services were approximately $113,000.

The Compensation Committee sets compensation levels based on the skills, experience and achievements of each executive officer,

taking into account market analysis and input provided by its compensation consultant and the compensation recommendations of our Chief Executive Officer, except with respect to his own position. The Compensation Committee believes that input from both its consultant and our Chief Executive Officer provides useful information and points of view to assist the Compensation Committee in determining the appropriate compensation.

Executive Committee

Chair: Timotheus Höttges

Additional Members*: John J. Legere, Thomas Dannenfeldt, Lawrence H. Guffey, Bruno Jacobfeuerborn, Raphael Kübler, Thorsten Langheim

Meetings Held in 2014: 2

Independence: Mr. Guffey is independent in accordance with NYSE rules.

*

James N. Perry, Jr., whose term expired as of the date of our 2014 Annual Meeting of Stockholders, served on the Executive Committee from May 1, 2013 to June 5, 2014, at which time Messrs. Guffey and Jacobfeuerborn were appointed to the Committee.

The Executive Committee has been established by our Board of Directors to review and provide guidance to our senior management regarding our strategy, operating plans and operating performance.

Nominating and Corporate Governance Committee

Chair: Kelvin R. Westbrook

Additional Members: Lawrence H. Guffey, Thorsten Langheim

Meetings Held in 2014: 4

Independence: Messrs. Guffey and Westbrook are independent in accordance with NYSE rules.

The Nominating and Corporate Governance Committee has primary responsibility for oversight of the Company’s corporate governance needs and assists the Board with the process of identifying, recruiting, evaluating, and nominating candidates for membership to

our Board. In addition, the Committee oversees the functions and needs of the Board and its committees, including leading the annual Board and committee performance review.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement9


CORPORATE GOVERNANCE

Board’s Role in Risk Management

Management of the Company, including our Chief Executive Officer and other executive officers, is primarily responsible for managing the risks associated with our business, operations, and financial and disclosure controls. Financial, strategic, IT, technology, operational, compliance, legal/regulatory and reputational risks to the Company are considered by management when it conducts its quarterly enterprise-wide risk assessment and are reviewed and updated regularly in connection with the operational, financial and business activities of the Company.

Management of the Company has established an Enterprise Risk and Compliance Committee to oversee activities in the areas of risk management and compliance as a means of bringing risk issues to the attention of senior management. Responsibilities for risk management and compliance are distributed throughout various functional areas of the business, and the Enterprise Risk and Compliance Committee regularly reviews the Company’s activities in these areas.

Our Board of Directors assesses Company risks and strategies for risk mitigation, and it manages its risk oversight function primarily, but not exclusively, through the Audit Committee of the Board. As such, the Audit Committee has primary responsibility for overseeing the Company’s various risk assessment and risk management policies. In performing this function, the Audit Committee considers and discusses policies with respect to risk assessment and risk management, including the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures. To assist the Audit Committee with its risk assessment function, the Vice President, Internal Audit & Risk Management, who serves as the Chief Audit Executive, and the Vice President, Chief Compliance Officer report to the Audit Committee, and have regular meetings with the Audit Committee and/or its members. They provide a quarterly enterprise-wide risk assessment and annual fraud and compliance risk assessments to the Audit Committee and update the Audit Committee on significant issues raised by the Enterprise Risk and Compliance Committee. The Audit Committee reviews all risk assessments, provides feedback to executive management and shares the risk assessments with the Board. The Audit Committee also has other responsibilities with respect to provide youthe Company’s internal audit, compliance and ethics programs, as more fully set out in its charter. The Compensation Committee has certain responsibilities with respect to the assessment of risk in connection with our compensation programs. The Executive Committee of the Board of Directors, charged with reviewing and providing guidance to senior management of the Company regarding the Company’s strategy, operating plans and operating performance, also plays a key role in helping the Board

perform its risk oversight function by considering strategic operating goals, opportunities and risks. In addition, the Nominating and Corporate Governance Committee of the Board of Directors oversees Board process and corporate governance-related risks. Finally, a report of all committee meetings are presented to the Board on a regular basis.

Risk Assessment of Compensation Programs. The Compensation Committee of the Board of Directors designs our compensation programs to encourage appropriate risk taking while discouraging behavior that may result in unnecessary or excessive risk. In this regard, the following elements have been incorporated in our compensation programs for executive officers:

Use of multiple metrics in annual incentive plan and use of two long-term incentive vehicles for executive officers

Each annual incentive award metric capped at 200%

Performance-based share awards capped at 200%

Emphasis on long-term and performance-based compensation

Compensation Committee has discretion to reduce incentive awards, as appropriate

Long-term incentive awards vest ratably over three years or performance vest at end of performance period

Formal clawback policies applicable to both cash and equity compensation

Alignment of interests of our executive officers with the long-term interests of our stockholders through stock ownership guidelines that call for significant share ownership

Generally no supplemental benefits or perquisites for executive officers

The Compensation Committee periodically reviews with management an assessment of whether risks arising from the Company’s compensation policies and practices for all employees are reasonably likely to have a material adverse effect on the Company, as well as the means by which any potential risks may be mitigated, such as through governance and oversight policies. Based on an assessment conducted by management consultant Towers Watson, which was presented to and discussed with the Compensation Committee, management concluded that our compensation policies and practices for all employees do not create risks that are reasonably likely to have a material adverse effect on the Company.

Director Compensation

Non-Employee Director Compensation Program

Each director who is not an employee of the Company or an officer or employee of Deutsche Telekom (a “non-employee director”) is eligible to participate in the non-employee director compensation program. Elements of the non-employee director compensation program are outlined in the table below. Fees are subject to proration for any person who becomes a non-employee director and/or committee chair at any time of the year other than the date of the Company’s Annual Meeting

of Stockholders. Directors also receive reimbursement of expenses incurred in connection with their Board service.

Immediately after each Annual Meeting of Stockholders, each non-employee director automatically receives an award of time-based restricted stock units (“RSUs”) with a legal proxy, a copyvalue of your account statement, or a letter from$150,000 (rounded up to the registered holder confirming that you beneficially own or holdnearest share number), with pro rata awards for non-employee

10


CORPORATE GOVERNANCE

directors joining the Company’s common stock as ofBoard at any time other than the close of business on May 10, 2013. You can obtain an admission ticket by presenting this confirming documentation from your broker, bank or other institution at the Annual Meeting.

All attendeesdate of the Annual Meeting will be requiredof Stockholders. The time-based RSUs vest on the one-year anniversary of the grant date or on the date of the next Annual Meeting of Stockholders for directors not standing for re-election. In the event of a director’s termination of service prior to show valid government-issued, picture identification which matches their admission ticket and/or account documentation to gain admissionvesting, all RSUs are automatically forfeited to the Annual Meeting. Seating is limited and will be available on a first-come, first-served basis.Company. The

For safety and security purposes, we do not permit any stockholder to bring cameras, video or audio recording equipment, large bags, briefcases or packages into the meeting room or to otherwise record or photograph the Annual Meeting. We also ask that all stockholders attending the Annual Meeting turn off all cell phones, pagers, and other electronic devices during the Annual Meeting. We reserve the right to inspect any bags, purses or briefcases brought into the Annual Meeting.

Directions to The Charles Hotel, where you will be able to attend the Annual Meeting and vote in person, can be found by clicking on “Map & Directions”RSUs immediately vest on the website of The Charles Hotel at http://charleshotel.com/, or at http://charleshotel.com/map-directions/index.cfm.

Are the votes confidential?

Yes, all votes remain confidential except as necessary (1) to tabulate the votes and allow an independent inspector to certify the results of the vote, (2) to meet applicable legal requirements, (3) to assert or defend claims for or against the Company, (4) in the casedate of a contested proxy solicitation, and (5) if a stockholder makes a written comment or requests on the proxy card that such vote be communicated to managementchange in control of the Company.

Non-employee directors are eligible to receive up to two handsets per year and up to ten lines of U.S. service pursuant to our Board of Directors Phone Perquisite Program.

The following table summarizes the compensation payable to the Company’s non-employee directors:

Elements of Non-Employee Director CompensationAmount
($)
Annual cash retainer100,000
Additional annual cash retainer for:

Lead Independent Director

25,000

Audit Committee Chair

50,000

Compensation Committee Chair

25,000

Nominating and Corporate Governance Committee Chair

10,000
Annual award of time-based RSUs150,000
Additional cash amounts for each Board and committee meeting in excess of ten meetings per year:

In person

2,000

By telephone

1,000

2014 Non-Employee Director Compensation Table

During fiscal year 2014, the Company’s non-employee directors received the following compensation for their services.

Name  Fees Earned or
Paid in Cash
($)
   Stock
Awards
($)  (1)
   All Other
Compensation
($) (2)
   

Total

($)

 
W. Michael Barnes   102,000     150,002     16,180     268,182  
Srikant M. Datar   150,000     150,002     2,916     302,918  
Lawrence H. Guffey   108,000     150,002     2,422     260,424  
James N. Perry, Jr. (3)   42,857               42,857  
Teresa A. Taylor   150,000     150,002     10,098     310,100  
Kelvin R. Westbrook   120,000     150,002     15,272     285,274  

(1)

The value of stock awards is determined using the aggregate grant date fair value computed in accordance with FASB Accounting Standards Codification Topic 718, “Compensation–Stock Compensation,” or ASC 718, excluding the effect of any estimated forfeitures. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be realized by the directors. See Note 10 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for a summary of the assumptions we apply in calculating these amounts. As of December 31, 2014, each director held 4,479 unvested time-based RSUs.

(2)

Includes (i) phone perquisites under the Board of Directors Phone Perquisite Program, (ii) personal and spousal travel expenses in connection with a Board meeting for Mr. Barnes, Ms. Taylor and Mr. Westbrook and (iii) reimbursement of taxes associated with the personal and spousal travel expenses in the amounts of $7,074, $3,765 and $4,963 for Mr. Barnes, Ms. Taylor and Mr. Westbrook, respectively.

(3)

Mr. Perry served on our Board from January 1, 2014 to June 5, 2014.

Non-Employee Director Stock Ownership Guidelines

Under our stock ownership guidelines, each non-employee director is expected to acquire and maintain ownership of shares of common stock equal in value to five times his or her annual retainer measured as of May 1, 2013 for non-employee directors serving on that date or as of the date Board service commences for any non-employee director joining the Board after May 1, 2013. Each non-employee

director is expected to meet the ownership guidelines within five years from the applicable measurement date, and is expected to retain at least 50% of the net shares of common stock acquired through the Company’s equity compensation plans until the ownership threshold is met.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement11


CORPORATE GOVERNANCE

Who will tabulateDirector Nomination, Selection and count the votes?Qualifications

Votes will be countedQualifications and certified byDiversity

Subject to Deutsche Telekom’s board designation rights, the Inspector of Elections, whoNominating and Corporate Governance Committee is an employee of American Stock Transfer & Trust Company, LLC, or AST, the Company’s transfer agent.

Who bears the cost of the proxy solicitation?

The Company bears all of the cost of the solicitation of proxies, including the preparation, assembly, printingresponsible for identifying and mailing of all proxy materials. The Company also reimburses brokers, banks, fiduciaries, custodiansevaluating director nominees and other institutions for their costs in forwarding the proxy materialsrecommending to the beneficial owners Board a slate of nominees for election at each Annual Meeting of Stockholders. The Board has adopted director selection guidelines, which the Nominating and Corporate Governance Committee considers in evaluating each director candidate. The Committee considers, among others, the following factors:

Professional experience, industry knowledge, skills and expertise;

Leadership qualities, public company board and committee experience and non-business-related activities and experience;

High standard of personal and professional ethics, integrity and values;

Training, experience and ability at making and overseeing policy in business, government and/or holderseducation sectors;

Willingness and ability to keep an open mind when considering matters affecting interests of our common stock. Thethe Company and its directors, officers,constituents;

Willingness and regular employees alsoability to devote the required time and effort to effectively fulfill the duties and responsibilities related to Board and committee membership;

Willingness and ability to serve on the Board for multiple terms, if nominated and elected, to enable development of a deeper understanding of the Company’s business affairs;

Willingness not to engage in activities or interests that may solicit proxies by mail, personally, by telephone or by other appropriate means. No additional compensation will be paidcreate a conflict of interest with a director’s responsibilities and duties to directors, officers or other regular employees for such services.the Company and its constituents; and

 

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Where can I find the voting results for each Proposal?

We intendWillingness to file a Current Report on Form 8-K within four (4) business days after the Annual Meeting, announcing the official results of voting. If the official results are not available at that time, we intend to provide preliminary voting resultsact in the Form 8-K and will provide the final voting results in an amendment to the Form 8-K as soon as they become available.

Can I access the proxy materials and the Company’s Annual Report on the Internet?

Yes, this Proxy Statement and the 2012 Annual Report to Stockholders are available free of charge on the Internet at http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=18263 for viewing and on the Company’s website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footerbest interests of the Home page,Company and then selecting “SEC Filingits constituents and Reports.”

What is householdingto objectively assess Board, committee and how does it affect me?management performances.

The SEC rules permit us to send a single set of the proxy materials, including this Proxy Statement and the 2012 Annual Report to Stockholders, to any household at which two or more holders reside, unless we have received contrary instructions from the affected holders prior to the mailing date. This procedure, referred to as householding, reduces the volume of duplicate mailings and information you receive and helps us reduce our impact on the environment and our costs and expenses.

In order to take advantage of this cost saving opportunity, we have delivered only one set of proxy materials to holders of our common stock who share an address, unless we have received contrary instructions from the affected holders prior to the mailing date. If you would like to request additional copies or otherwise request that a reduced number of copies be sent, please see “Duplicate Mailings (Householding)” in “Other Information and Business” at the back of this Proxy Statement.

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Proposal 1

Election of Directors

Board of Directors

Our Fourth Amended and Restated Certification of Incorporation, which we refer to as our certificate of incorporation, provides that the number of directors that constitute the entire Board of Directors shall be fixeddoes not have a formal policy with respect to diversity on the Board. Rather, diversity is one of many factors under our director selection guidelines that the Nominating and Corporate Governance Committee considers when evaluating potential director candidates. Our director selection guidelines do not narrowly define diversity by reference to gender and race; rather, diversity is broadly interpreted to include other factors such as age, geographic and professional diversity. In connection with its general responsibility to monitor and advise the Board on the size, role, function and composition of the Board, the Nominating and Corporate Governance Committee will periodically consider whether the Board represents the overall mix of skills and characteristics described in the manner provideddirector selection guidelines, including diversity and the other factors described above. Subject to Deutsche Telekom’s board designation rights, the selection process for director candidates is intended to be flexible, and the Nominating and Corporate Governance Committee, in the exercise of its discretion, may deviate from the selection process when particular circumstances warrant a different approach.

Nomination Process

In addition to candidates designated by our Fifth AmendedDeutsche Telekom, the Nominating and Restated Bylaws, which we refer to as our bylaws. Under our bylaws, the Board sets theCorporate Governance Committee may consider possible director candidates from a number of sources, including those recommended by stockholders, directors, constitutingor officers. In addition, the Nominating and Corporate Governance Committee may engage the services of outside consultants and search firms to identify potential director candidates.

A stockholder who wishes to suggest a director candidate for consideration by the Nominating and Corporate Governance

Committee should submit the suggestion to the Chair of the Nominating and Corporate Governance Committee, care of our Corporate Secretary, and include the candidate’s name, biographical data, relationship to the stockholder and other relevant information. The Nominating and Corporate Governance Committee may request additional information about the suggested candidate and the proposing stockholder. Subject to Deutsche Telekom’s board designation rights, the full Board by resolutionwill approve all final nominations after considering the recommendations of the Board. Currently, our Board consistsNominating and Corporate Governance Committee.

12


LOGO

The following persons, each of eleven members whose terms expire at the next annual meetingwhom is currently a director of stockholders.

Each nominee hasT-Mobile, have been nominated by ourthe Board of Directors on the recommendation of the Nominating and Corporate Governance Committee for election at the Annual Meeting to serve as a director for a term that would end at the 20142016 Annual Meeting of Stockholders andStockholders. The Board has found by the Boardeach nominee to be qualified based on his or her qualifications, experience, attributes, skills and skills. Messrs. Höttges, Kübler, Langheim, Obermann, Guffey, Dataroverall service during the director’s term, including the number of meetings attended, his or her level of participation, the quality of his or her performance and Westbrook and Ms. Taylor were designated for nomination by Deutsche Telekom pursuant to its rights under our certificate of incorporation andwhether he or she meets the Stockholder’s Agreement.

applicable independence standards. Each of the nominees has consented to stand for re-electionelection and has indicated that, if elected, he or she plans to serve and will hold office until the later of the 20142016 Annual Meeting of Stockholders or until his or her successor is elected and qualified, unless the nominee earlier resigns, retires, passes away or otherwise no longer serves as a director.

Required Vote

Under our bylaws, directors are elected by a plurality of the votes cast on each such director’s election by stockholders entitled to vote on the election of directors at the Annual Meeting. Shares represented by executed proxies received by the Company will be voted, unless otherwise marked withheld,“FOR” the election of each of the nominees. In the event that any of the nominees should be unavailable for election as a result of an unexpected

occurrence, such shares may be voted for the election of such substitute nominee as the Board of Directors may nominate. In the alternative, if a vacancy remains, the Board may fill such vacancy at a later date or reduce the size of the Board, subject to certain requirements in our certificate of incorporation. EachThe Board knows of the nominees has agreed to be named in this Proxy Statement and to serve if elected, and we have no reason to believe thatwhy any of the nominees would be unavailable or unable to serve.

Messrs. Dannenfeldt, Höttges, Jacobfeuerborn, Kübler, Langheim and Westbrook and Ms. Taylor were designated for nomination by Deutsche Telekom pursuant to its rights under our certificate of incorporation and the Stockholder’s Agreement.

Under our bylaws, directors are elected by a plurality of the votes cast by stockholders entitled to vote on the election of directors at the Annual Meeting. Shares represented by executed proxies received by the Company will be unable or unwilling to serve if elected.voted, unless otherwise marked withheld, “FOR” the election of each of the nominees.

 

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The following biographies provide certain information on each nominee’s occupation and business experience, age and other directorships held in public companies as of May 1, 2013.

W. Michael BarnesNominees

 

LOGO

W. Michael Barnes, age 70, has served

LOGO

Age: 72

Director since: 2004

Board committees: Audit, Compensation

Other public company directorships:

   Advanced Micro Devices, Inc. (2003 to 2015)

Qualifications and skills to serve as a director:

  Complex financial management experience

   Extensive knowledge of technology industry

  Experience as public company chief financial officer, director of our Company since May 2004 and is acommittee member of the Audit Committee of the Board of Directors. Until the Business Combination was consummated on April 30, 2013, Dr. Barnes served as the chair of the Audit Committee of the Board and also served on the Compensation Committee. Dr.

Mr. Barnes held several positions at Rockwell International Corporation, a multi-industry company in high technology businesses including aerospace, commercial and defense electronics, telecommunication equipment, industrial automation systems and semi-conductorsemiconductor products manufacturing, between 1968 and 2001, including Senior Vice President, Finance & Planning, and Chief Financial Officer from 1991 through 2001. Dr. Barnes has served as a director of Advanced Micro Devices, Inc. since 2003 where he serves as Chairman of the Audit and Finance Committee and is a member of the Nominating and Corporate Governance Committee. Dr.Mr. Barnes holds a Ph.D. in operations research from Texas A&M University. He also holds Bachelor’s and Master’s degrees in industrial engineering from Texas A&M University. Dr. Barnes’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive financial management and strong understanding of high technology related business.

Srikant Datar

 

LOGOT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement 13


PROPOSAL 1 – ELECTION OF DIRECTORS

Srikant DatarThomas Dannenfeldt, age 59,

LOGO

Age: 48

Director since: 2013

Board committees: Compensation, Executive

Qualifications and skills to serve as a director:

  Expertise in global telecommunications industry

   Expertise in strategy, business and finance

  Experience in accounting and internal controls

Mr. Dannenfeldt has served as the Chief Financial Officer of Deutsche Telekom, our majority stockholder and a directorleading integrated telecommunications company, since January 2014. He was Finance Director of our Company sinceTelekom Deutschland from April 30, 2013 and is2010 to December 2013. From July 2009 to April 2010, he was the CFO of T-Mobile Deutschland. From January 2010 to April 2010 he was also responsible for the fixed line part of Deutsche Telekom as a member and chair of the T-Home Board of Management. Prior to that, he was on the T-Home Board of Management responsible for the Market and Quality Management since January 2007. Mr. Dannenfeldt started his career at Deutsche Telekom in 1992 and has gained more than 20 years of experience in various leadership roles in sales, marketing and finance in national and international mobile and fixed line telecommunications business. He also served on the Board of Directors of Virgin Mobile in the UK in 2003 and 2004.

Srikant M. Datar

LOGO

Age: 61

Director since: 2013

Board committee:Audit Committee of our Board. Dr.(Chair)

Other public company directorships:

  Novartis AG

   ICF International Inc.

  Stryker Corporation

   HCL Technologies (2012 to 2014)

  KPIT Technologies (2007 to 2012)

Qualifications and skills to serve as a director:

  Expertise in accounting, governance and risk management

   Public company director and committee experience

  Academic and commercial perspective on complex issues

Mr. Datar is the Arthur Lowes Dickinson Professor at the Graduate School of Business Administration at Harvard University. Dr.Mr. Datar is a Chartered Accountant and planner in industry, and has been a professor of accounting and business administration at Harvard since July 1996, and1996; he previously served as a professor at Stanford University and Carnegie Mellon University. Dr. Datar currently serves on the board of directors of Novartis AG, where he is also the Chairman of the Audit and Compliance Committee, and a member of the Chairman’s Committee, the Risk Committee and the Compensation Committee. Dr. Datar is also a member of the boards of directors of ICF International Inc., where he is a member of the Corporate Governance and Nominating Committee; Stryker Corporation, where he is a member of the Audit and Finance Committees; and HCL Technologies, where he is a member of the Compensation Committee. Dr.Mr. Datar received gold medals upon his graduation from the Indian Institute of Management, Ahmedabad, and the Institute of Cost and Works Accountants of India. Dr.Mr. Datar received a Masters in Statistics and Economics and a Ph.D. in Business from Stanford University. Dr. Datar’s individual qualifications and skills that led to the conclusion that he should serve as a director include his service on boards of international companies, his substantial teaching and practical experience in accounting, governance and risk management, and his academic and broad-based knowledge and experience of strategy, business and finance.

 

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Lawrence H. Guffey

 

LOGO14  


PROPOSAL 1 – ELECTION OF DIRECTORS

Lawrence H. Guffey, age 45, has served as a director of the Company since April 30,

LOGO

Age: 47

Director since: 2013 and is a member of the

Board committees: Compensation, Committee andExecutive, Nominating and Corporate Governance Committee of the Board of Directors. Since September of 1991,

Qualifications and skills to serve as a director:

  Core financial and business skills

   Experience overseeing investments in media and communications industries

  Public company director and committee experience

Mr. Guffey has beenis Chief Executive Officer of LG Capital Investors LLC, a single-family investment office formed in 2014. From 1991 to 2014, Mr. Guffey was with The Blackstone Group, presently serving as Senior Managing Director, Private Equity Group. The Blackstone Group is an asset management and financial services company.company, most recently serving as Senior Managing Director (Partner) in the Private Equity Group. Mr. Guffey has led many of The Blackstone Group’s media and communications investment activities and managesmanaged Blackstone Communications Advisors. Mr. Guffey has beenwas a Membermember of the Supervisory Board at Deutsche Telekom, AG sinceour majority stockholder, from June 2006.2006 until October 2013. He was a directorDirector of New Skies Satellites Holdings Ltd. from January 2005 to December 2007, Axtel SA de CV since October 2000, FiberNet L.L.C. from 2001 until 2003, iPCS Inc. from August 2000 to September 2002, PAETEC Holding Corp. from February 2000 to 2002, and Commnet Cellular Inc. from February 1998 to December 2001. HeMr. Guffey also served as a directorDirector of TDC A/S from February 2006 to March 2013. He holds a Bachelor of Arts magna cum laude degree from Rice University, where he was elected to Phi Beta Kappa. Mr. Guffey’s individual qualifications

Timotheus Höttges

LOGO

Age: 52

Director since: 2013

Board committee: Executive (Chair)

Qualifications and skills that led to the conclusion that he should serve as a director include his extensive experience on otherdirector:

  Chief executive officer of major global communications company boards, particularly those

   Core finance, business and leadership skills

Since January 2014, Mr. Höttges has served as Chief Executive Officer of other companies in the telecommunications industry including Deutsche Telekom, AG, our controllingmajority stockholder and a leading integrated telecommunications company.

Timotheus Höttges

LOGOTimotheus Höttges, age 50, has From March 2009 to December 2013, he served as Deutsche Telekom’s Chief Financial Officer (CFO) and a director of the Company and Chairmanmember of the Board since April 30, 2013, and is a member and chair of the Executive Committee of our Board of Directors. Mr. Höttges also serves as the Deputy Chief Executive Officer (since January 2013) and as Chief Financial Officer (sinceManagement. From December 2006 to March 2009) of Deutsche Telekom AG, our controlling stockholder and a leading integrated telecommunications company, and has been2009, he was a member of the Board of Management of Deutsche Telekom responsible for Finance and Controlling since March 2009. From December 2006, when he was first appointed to the board, until his appointment as Chief Financial Officer of Deutsche Telekom, he was the Group Board of Management member responsible for the T-Home Unit.Unit (fixed-network and broadband business, as well as integrated sales and service in Germany). From January 2003 to December 2006, Mr. Höttges headed European operations as a member of the Board of Management of T-Mobile International. Mr. Höttges studied Business Administration at the University of Cologne. Mr. Höttges’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive and broad experience in the telecommunications industry gained through his positions of increasing responsibility in operations, corporate planning, mergers and acquisitions and finance.

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Raphael Kübler

 

LOGOT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement 15


PROPOSAL 1 – ELECTION OF DIRECTORS

Bruno Jacobfeuerborn

LOGO

Age: 54

Director since: 2014

Board committee: Executive

Qualifications and skills to serve as a director:

  Expertise in global telecommunications industry

   Wireless network and technology expertise

  Core business, management and leadership skills

Mr. Jacobfeuerborn has served as Director of Technology Telekom Deutschland since April 2010. In addition, he has been the Chief Technology Officer (CTO) of Deutsche Telekom, our majority stockholder and a leading integrated telecommunications company, since February 2012. Previously, Mr. Jacobfeuerborn was Director of Technology of T-Mobile Deutschland and T-Home in Germany. In this double role, he was responsible for the technology business (both mobile and fixed network) in Germany from July 2009 to March 2010. From April 2007 to July 2009, he was Managing Director of Technology, IT and Procurement at Polska Telefonica Cyfrowa. Mr. Jacobfeuerborn joined what is now Deutsche Telekom AG in 1989 and has held several positions with increasing responsibility within the group.

Raphael Kübler, age 50, has served

LOGO

Age: 52

Director since: 2013

Board committees: Compensation, Executive

Other public company directorships:

   Hellenic Telecommunications Organization

Qualifications and skills to serve as a directordirector:

  Expertise in global telecommunications industry

   Core business, management and leadership skills

  Complex financial management experience

In January 2014, Mr. Kübler assumed the position of our Company since April 30, 2013, and is a memberSenior Vice President of the Compensation CommitteeCorporate Operating Office of Deutsche Telekom, our majority stockholder and a leading integrated telecommunications company, and reports directly to the Chief Executive CommitteeOfficer of our Board of Directors.Deutsche Telekom. From July 2009 to December 2013, Mr. Kübler also servesserved as a Senior Vice President Group Controlling at Deutsche Telekom AG, our controlling stockholder and a leading integrated telecommunications company, whereTelekom. In this position, he iswas responsible for the financial planning, analysis and steering of the overall Deutsche Telekom Group as well as the financial management of central headquarters and shared services of the Deutsche Telekom Group, a position he has held since July 2009.services. From November 2003 to June 2009, Mr. Kübler served as Chief Financial Officer of T-Mobile Deutschland GmbH, the mobile operations of Deutsche Telekom AG in Germany now known as Telekom Deutschland GmbH (a wholly-owned subsidiary of Deutsche Telekom). Mr. Kübler presently serves on the boards of T-Systems International, where he is a member of the Supervisory Board and Chairman of the Audit Committee; and Deutsche Telekom Kundenservices GmbH, the customer services subsidiary of Deutsche Telekom AG, where he is a member of the Supervisory Board. Mr. Kübler studied Business Administration at H.E.C. in Paris and the Universities of Bonn and Cologne. He holds a doctoral degree from the University of Cologne. Mr. Kübler’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive experience in the telecommunications industry, financial and accounting expertise and specific knowledge of our Company gained through his position as an executive officer of Deutsche Telekom AG, our controlling stockholder, and his service on the Audit Committee of the Board of Directors of T-Mobile USA prior to the consummation of the Business Combination.

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Thorsten Langheim

 

LOGO16  


PROPOSAL 1 – ELECTION OF DIRECTORS

Thorsten Langheim, age 47, has served as a director of our Company since April 30,

LOGO

Age: 49

Director since: 2013 and is a member of the

Board committees: Executive, Nominating and Corporate Governance Committee

Qualifications and Executive Committee of our Board of Directors. skills to serve as a director:

  Expertise in global telecommunications industry

   Experience overseeing telecommunications and technology investments

  Corporate strategy and M&A experience

Mr. Langheim also serves as Senior Vice President Group Corporate Development of Deutsche Telekom, our controllingmajority stockholder and a leading integrated telecommunications company, a position he has held since November 2009. In his current role, he manages Deutsche Telekom’s Corporate Strategy and Group M&A activities. Prior to his position at Deutsche Telekom, Mr. Langheim was Managing Director at the Private Equity Group of The Blackstone Group, an asset management and financial services company, from May 2004 to June 2009, primarily focusing on private equity investments in Germany. Mr. Langheim is a member of the Supervisory Board of Scout24. Previously, Mr. Langheim served on the boards of STRATO AG and T-Venture Holding GmbH. Mr. Langheim holds a Master of Science degree in International Securities, Investment and Banking from the ISMA Centre for Education and Research at the University of Reading. Mr. Langheim holds a Bachelor’s degree in European Finance and Accounting from the University in Bremen (Germany) and Leeds Business School (United Kingdom). Mr. Langheim’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive experience in strategic development and mergers and acquisitions, private equity and investment banking and in-depth knowledge of the telecommunications industry.

John J. Legere

 

LOGO

John J. Legere, age 54, has served

LOGO

Age: 56

Director since: 2013

Board committee: Executive

Qualifications and skills to serve as a directordirector:

  Chief Executive Officer of our Company since April 30, 2013T-Mobile

   Expertise in telecommunications and is a member of the Executive Committee of our Board of Directors. technology industries

Mr. Legere joined T-Mobile USA in September 2012 as President and Chief Executive Officer and became our President and Chief Executive Officer on April 30, 2013 upon the consummation of the Business Combination. Mr. Legere has over 3233 years’ experience in the U.S. and global telecommunications and technology industries. Prior to joining T-Mobile USA, Mr. Legere served as Chief Executive Officer of Global Crossing Limited, a telecommunications company, from October 2001 to October 2011. Before joining Global Crossing, he served as Chief Executive Officer of Asia Global Crossing; as president of Dell Computer Corporation’s operations in Europe, the Middle East, and Africa; as president Asia-Pacific for Dell; as president of AT&T Asia Pacific; as head of AT&T’s outsourcing program and as head of AT&T global strategy and business development. Mr. Legere serves on the CTIA Board of Directors. Mr. Legere received a Bachelor’s degree in Business Administration from the University of Massachusetts, a Master of Science degree as an Alfred P. Sloan Fellow at the Massachusetts Institute of Technology, and a Master of Business Administration degree from Fairleigh Dickinson University, and he completed Harvard Business School’s Program for Management Development (PMD). Mr. Legere’s individual qualifications and skills that led to the conclusion that he should serve as a director include his position as Chief Executive Officer of our Company and his extensive experience in the global telecommunications and technology industries.Development.

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René Obermann

 

LOGOT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement 17


PROPOSAL 1 – ELECTION OF DIRECTORS

René ObermannTeresa A. Taylor, age 50, has served as a director of our Company since April 30,

LOGO

Age: 51

Director since: 2013 and is a member of the

Board committee: Compensation Committee and Executive Committee of our Board of Directors. Since November 2006, Mr. Obermann has been the Chief Executive Officer and Chairman of the Management Board of Deutsche Telekom AG, our controlling stockholder and a leading integrated telecommunications company. He joined the Deutsche Telekom Group in 1998 as Director of Sales and Member of the Board of Management of T-Mobile Deutschland GmbH. Since then, Mr. Obermann has held several positions with increasing responsibility within the group and became CEO of T-Mobile International AG & Co. KG and Member of the Board of Management of Deutsche Telekom AG in 2002. He further serves as a Chairman of the Supervisory Board of T-Systems International GmbH, Frankfurt, a subsidiary of Deutsche Telekom AG. In May 2011, he was appointed to the Supervisory Board of the Düsseldorf-based E.ON AG. Mr. Obermann’s individual qualifications(Chair)

Other public company directorships:

  First Interstate BancSystem, Inc.

   NiSource, Inc.

Qualifications and skills that led to the conclusion that he should serve as a director:

  Expertise in technology, media and telecommunications industries

   Expertise in strategic planning and execution, technology development, human resources, labor relations and corporate communications

   Public company director include his extensiveand committee experience in the telecommunications industry and specific knowledge of our Company gained through his position

Since April 2011, Ms. Taylor has served as Chief Executive Officer of Deutsche Telekom AG, our controlling stockholder.

James N. Perry, Jr.

LOGOJames N. Perry, Jr., age 52, has been a director of our Company since November 2005 and is a member of the Audit Committee and Executive Committee of our Board of Directors. Prior to the consummation of the Business Combination, he also served as a member of the Nominating and Corporate Governance Committee, the Audit Committee and the Finance & Planning Committee of the Board until it was dissolved following the consummation of the Business Combination. Mr. Perry is a Managing Director of Madison Dearborn Partners,Blue Valley Advisors, LLC, a Chicago-based private equity investing firm that he co-founded in 1992, where he specializes in investing in companies in the telecommunications, media and technology services industries. A private equity fund managed by Madison Dearborn Partners, LLC is an investor in our Company. Mr. Perry also presently serves as a director of Univision Communications, Inc. Mr. Perry previously served on the board of directors of Nextel Partners from July 2003 to June 2006 and the board of directors of Cbeyond, Inc. from March 2000 until July 2010. Mr. Perry received a Bachelor’s degree from the University of Pennsylvania and an MBA from the University of Chicago. Mr. Perry’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive experience in private equity, and in particular his experience investing in companies in the telecommunications industry.

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Teresa A. Taylor

LOGOTeresa A. Taylor, age 49, has served as a director of our Company since April 30, 2013 and is a member of and chair of the Compensation Committee of our Board of Directors.advisory firm. Ms. Taylor served as Chief Operating Officer of Qwest Communications, Inc., a telecommunications carrier, from August 2009 to April 2011. She served as Qwest’s Executive Vice President, Business Markets Group, from January 2008 to April 2009 and served as its Executive Vice President and Chief Administrative Officer from December 2005 to January 2008. Ms. Taylor served in various positions with Qwest and the former US West beginning in 1987. During her 24-year tenure with Qwest and US West, she held various leadership positions and was responsible for strategic planning and execution, sales, marketing, product, development,network, information technology, human resources and corporate communications and social responsibility. Ms. Taylor also is a director of First Interstate BancSystem, Inc. and NiSource, Inc. She also serves as an executive advisor to Governor Hickenlooper of Colorado, assisting the Office of Economic Development and International Trade.communications. Ms. Taylor received a Bachelor of Science degree from the University of Wisconsin-LaCrosse. Ms. Taylor’s individual qualifications and skills that led to the conclusion that she should serve as a director include her extensive experience in the technology, media and the telecommunications sectors, including her knowledge regarding strategic planning and execution, technology development, human resources, labor relations and corporate communications.

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Kelvin R. Westbrook

 

LOGO

Kelvin R. Westbrook, age 57, has served as a director of our Company since April 30,

LOGO

Age: 59

Director since: 2013 is a member and chair of the

Board committees: Audit, Nominating and Corporate Governance Committee of our Board of Directors,(Chair)

Other public company directorships:

   Archer-Daniels-Midland Company

  Stifel Financial Corp.

   Camden Property Trust

Qualifications and isskills to serve as a member ofdirector:

  Expertise in the Compensation Committee of our Board. telecommunications industry

   Core legal, media, marketing and risk analysis skills

  Public company director and committee experience

Mr. Westbrook is President and Chief Executive Officer of KRW Advisors, LLC, a consulting and advisory firm, a position he has held since October 2007. Since 2003, Mr. Westbrook has also been a Director of Archer-Daniels-Midland Company (“ADM”). Mr. Westbrook currently serves as the Chairman of ADM’s Compensation/Succession Committee. Mr. Westbrook also served as Chairman and Chief Strategic Officer of Millennium Digital Media Systems, L.L.C. (“MDM”), a broadband services company that later changed its name to Broadstripe LLC, from September 2006 until October 2007. Mr. Westbrook was also President and Chief Executive Officer of MDM from May 1997 until October 2006. Broadstripe LLC (formerly MDM) and certain of its affiliates filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in January 2009, approximately fifteen months after Mr. Westbrook resigned. Mr. Westbrook has also served as a director and member of the Audit Committee of Stifel Financial Corp. since August 2007, as a director of Angelica Corporation from February 2001 to August 2008 and as Trust Manager since May 2008, and chair of the Audit Committee since March 2012, of Camden Property Trust. Mr. Westbrook received an undergraduate degree in Business Administration from the University of Washington and a Juris Doctor degree from Harvard Law School. Mr. Westbrook’s individual qualifications and skills that led to the conclusion that he should serve as a director include his extensive experience on other public company boards, knowledge of the telecommunications industry, and legal, media, marketing and risk analysis expertise.

The Board of Directors recommends that you vote

“FOR”

the election of each of the above named nominees.

 

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18


Executive ManagementLOGO

Set

The following sets forth below is information concerningregarding the executive officers of the Company who are not also directors, including their ages, as of May 1, 2013. ForCompany. Biographical information aboutpertaining to Mr. Legere, our President and Chief Executive Officerwho is both an executive officer and a memberdirector of our Board of Directors, see page 15, above.

James (Jim) C. Alling, age 52, serves as our Executive Vice President and Chief Operating Officer T-Mobile Business. In this role, Mr. Alling is in charge of customer-facing activities for a subscription base of over 33 million users. Mr. Alling has also served as the Chief Operating Officer of T-Mobile USA since August 2009. Before joining T-Mobile USA, Mr. Alling worked as a President of Starbucks Coffee Company, a global coffee company and coffeehouse chain, for eleven years, until July 2008. Mr. Alling began his career in 1985 at Nestle S.A., where he held various senior management positionscan be found in the packaged goods marketing sector before eventually becoming a VP/General Manager for Nestle USA. Mr. Alling received a BachelorSection entitled “Proposal 1—Election of Arts degree from DePauw University in Greencastle, Indiana with a double major in Economics and Spanish; he then obtained a Master of International Management degree from the Thunderbird School of International Management.Directors”.

 Name

AgePosition

 David R. Carey

61Executive Vice President, Corporate Services

 J. Braxton Carter

56Executive Vice President and Chief Financial Officer

 Peter A. Ewens

52Executive Vice President, Corporate Strategy

 Thomas C. Keys

56President, T-Mobile Indirect Channels

 Gary A. King

57Executive Vice President, Chief Information Officer

 David A. Miller

54Executive Vice President, General Counsel and Secretary

 Larry L. Myers

60Executive Vice President, Human Resources
 Neville R. Ray52Executive Vice President and Chief Technology Officer

 G. Michael (Mike) Sievert

45Chief Operating Officer

David R. Carey, age 59, serves as our as Executive Vice President, Corporate Services, responsible for leading the Enterprise Program Office, Corporate Communications, Corporate Real Estate, Corporate Responsibility and the CEOChief Executive Officer Staff. Mr. Carey has also served in the same role with T-Mobile USA since FebruaryMarch 2013. Before joining T-Mobile USA, from October 2011 to March 2013, Mr. Carey served as the CEOChief Executive Officer and Founder of TeleScope Advisors, LLC, an advisory firm specializing in telecommunications. Mr. Carey served as Executive Vice President at Global Crossing Limited, a telecommunications company, from September 1999 to October 2011. Mr. Carey’s career spans 35 years in the telecom and energy services industries. His experience in telecom includes leadership positions at AT&T, LG&E Energy, Frontier Communications and Global Crossing. He currently serves on the advisory board of Hewlett-Packard Corporation. Mr. Carey holds a Master of Science in Management Science from the Massachusetts Institute of Technology, where he was appointed to a Sloan Fellowship, and received his Bachelor of Science degree at Clarkson University.

J. Braxton Carter, age 54, serves as our Executive Vice President and Chief Financial Officer, and Treasurer, and is responsible for leading the financial functions of the Company. Mr. Carter served as MetroPCS’s Chief Financial Officer from February 2008March 2005 until the consummation of the Business Combination. Mr. Carter also served as MetroPCS’s Vice Chairman from May 2011 until the consummation of the Business Combination. From March 2005 to February 2008, he was Senior Vice President and Chief Financial Officer and from February 2001 to March 2005 he was Vice President, Corporate Operations of MetroPCS. Mr. Carter also has extensive senior management experience in the wireless and retail industry and spent ten years in public accounting. Mr. Carter is a certified public accountant. Mr. Carter presently serves on the Board of Directors of, and as Chairman of the Audit Committee of e-Rewards, Inc.,Research Now, and serves on the Board of AdvisorsAlumni for the Leeds School of Amdocs Limited.Business of the University of Colorado. Mr. Carter received a Bachelor of Science degree from Thethe University of Colorado with a major in accounting.

Peter A. Ewens, age 50, serves as our Executive Vice President, Corporate Strategy. He leads the Company’s corporate strategy, business development and M&A activities, which include spectrum strategy and acquisitions, co-brand partnerships, and T-Mobile’s participation as a founding partner in the Isis mobile commerce joint venture with AT&T and Verizon Wireless. Mr. Ewens has also served as Executive Vice President and Chief Strategy Officer of T-Mobile USA since July 2010. From April 2008 until July 2010, Mr. Ewens was Senior Vice President, Corporate Strategy at T-Mobile USA. Before joining T-Mobile USA, Mr. Ewens was Vice President of OEM Business at Sun Microsystems, a computer software and information technology services company, from June 2006 through March 2008. Before that, Mr. Ewens was a partner at McKinsey & Company, a global management consulting firm. Mr. Ewens received a Master of Science in Management from the Sloan School at Massachusetts Institute of Technology, and Master’s and Bachelor’s degrees in Electrical Engineering from the University of Toronto.

Alexander Andrew (Drew) KeltonThomas C. Keys, age 54, serves as our Executive Vice President, Business-to-Business (B2B),T-Mobile Indirect Channels, responsible for leading the B2B organization, helping to redefine the B2B wireless experienceour partner relationships, including dealers, for the

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Company’s business customers, T-Mobile and growing market share in this important segment. Mr. Kelton has also served as T-Mobile USA’s Executive Vice President of B2B since April 2013.MetroPCS brands. Previously, Mr. KeltonKeys served as President of Bharti Airtel Business, a leading Indian global telecommunications company, from June 2010 to April 2013. Before that, he served as the Managing Director for Telstra Corporation Limited, an Australian telecommunications and media company, responsible for international operations, from May 2002 to June 2010. Previously, Mr. Kelton held executive posts with Asia Global Crossing Limited, a telecommunications company, and Saturn Global Network Services Holdings Limited, an international provider of end-to-end managed voice and data services. Mr. Kelton has also held a variety of international sales, marketing, product and engineering roles with Timeplex, LLC, a provider of networking systems and support services, and The Plessey Co. plc., a British-based international electronics, defense and telecommunications company. Mr. Kelton serves on the board of directors of Mobile Active (Australia), a mobile advertising, design and development company, and the board of directors of Limas StockWatch (Indonesia), a financial services information company. Mr. Kelton received a Bachelor of Science degree in electronics and electrical engineering from the University of Western Scotland.

Thomas C. Keys, age 54, serves as our Executive Vice President and Chief Operating Officer, MetroPCS Business responsible for leading the operations of the MetroPCS business unit including all customer-facing activities relatedfrom April 2013 to the MetroPCS brands.February 2015. Mr. Keys served as MetroPCS’s President from May 2011 until the consummation of the Business Combination, and as Chief Operating Officer since June 2007. Mr. Keys also served as MetroPCS’s President from June 2007 to December 2007, Senior Vice President, Market Operations, West, from January 2007 until June 2007, and as Vice President and General Manager, Dallas, from April 2005 until January 2007. Mr. Keys received a Bachelor of Arts degree from State University of New York at Oswego, and a Master of Arts from Syracuse University.

Gary A. King serves as our Executive Vice President, Chief Information Officer, and is responsible for managing the development of information technology systems. Prior to joining T-Mobile, Mr. King served as Executive Vice President and Chief Information Officer of Chico’s FAS, Inc. from October 2004 to April 2013. Previously, he was the Chief Information officer of Barnes & Noble Inc. from May 2002 to October 2004 and also served as its Vice President. Prior to that, Mr. King served as Executive Vice President-Operations of Barnesandnoble.com since December 31, 2001 and its Chief Technology Officer from January 1999 to May 2002. Prior to that, he spent ten years from 1988 to 1999 with Avon Products, Inc., and served as its Vice President, Global Information Technology from 1996 to 1999. He also held various systems management positions with Unisys Corporation and Burroughs Corporation from 1982 to 1987. Mr. King serves on the Advisory Board of Center for the Supply Chain Management at the University of Florida. Mr. King received a Bachelor of Science degree from the University of Florida with a major in computer science.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement19


EXECUTIVE OFFICERS

David A. Miller, age 52, serves as our Executive Vice President, General Counsel and Secretary. Mr. Miller oversees all legal affairs and government affairs functions of the Company. Mr. Miller has also served as T-Mobile USA’s Chief Legal Officer, Executive Vice President, General Counsel and Secretary. Mr. Miller was appointed Senior Vice President and General Counsel of T-Mobile USA in April 2002 and Executive Vice President in January 2011. Previously, Mr. Miller served as Director of Legal Affairs for Western Wireless (a predecessor to T-Mobile USA) from March 1995 to May 1999, and he became Vice President of Legal Affairs of VoiceStream Wireless Corporation in May 1999 following its spin-off from Western Wireless. VoiceStream Wireless was acquired by Deutsche Telekom in May 2002,2001, when it became T-Mobile USA. Prior to joining Western Wireless, Mr. Miller was an attorney with the law firm of Lane Powell and began his law career as an attorney with the firm McCutchen, Doyle, Brown and Enersen (now Bingham McCutchen).Enersen. Mr. Miller serves on the Board of Directors of the Competitive Carriers Association and is a member of its Executive Committee. Mr. Miller received a Bachelor’s degree in Economics from the University of Washington and a Juris Doctor from Harvard Law School.

Larry L. Myers, age 58, serves as our Executive Vice President, Human Resources. Mr. Myers is responsible for leading the human resources function that supports 38,000our employees across the country. Mr. Myers has also served as Executive Vice President of Human Resources and Chief People Officer of T-Mobile USA since June 2008. From January 2001 to May 2008, Mr. Myers served as senior vice president of human resources for Washington Group International, a corporation which provided integrated engineering, construction, and management services to businesses and governments around the world. Mr. Myers has more than 35 years of experience in human resources management. Mr. Myers received degrees in sociology and business administration from Idaho State University.

Neville R. Ray, age 50, serves as our Executive Vice President and Chief Technology Officer. Mr. Ray joined T-Mobile USA, (then VoiceStream)then VoiceStream, in April 2000 and since December 2010 has served as its Chief Technology Officer, responsible for the national management and development of the T-Mobile USA wireless network and the company’s IT services and operations. Prior to joining T-Mobile USA, from September 1996 to September 1999, Mr. Ray served as Network Vice President for Pacific Bell Mobile Services. He iscurrently serves as Chairperson

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of 4G Americas, which promotes and facilitates the seamless deployment throughout the Americas of the 3GPP family of technologies, including HSPA, HSPA+, and LTE. He has also served as a member of the National Telecommunications and Information Administration’s Commerce Spectrum Management Advisory Committee (CSMAC) and the Federal Communications Commission’s Communications Security, Reliability and Interoperability Council (CSRIC).Council. Mr. Ray is an honors graduate of The City University of London and a member of the Institution of Electrical and Electronic Engineers and the Institution of Civil Engineers.

G. Michael (Mike) Sievert, age 44, serves as our Chief Operating Officer. Mr. Sievert is responsible for guiding all customer-facing operations across the business, including marketing, sales and customer care for all of our direct and indirect channels and each of our brands. Mr. Sievert served as our Executive Vice President and Chief Marketing Officer.Officer from April 2013 to February 2015 and from November 2012 to April 2013, Mr. Sievert is responsible for strategic development and execution of all marketing, product development, and pricing programs and activities for the Company. Mr. Sievert has also served aswas Executive Vice President and Chief Marketing Officer of T-Mobile USA since November 2012.USA. Prior to joining T-Mobile USA, Mr. Sievert was an entrepreneur and investor involved with several Seattle-areaSeattle area start-up companies, most recently serving as CEOChief Executive Officer of Discovery Bay Games, a maker of accessories and add-ons for tablet computers, from April 2012 to November 2012. From April 2009 to June 2011, he was Chief Commercial Officer at Clearwire Corporation, a broadband communications provider, responsible for all customer-facing operations. From February 2008 to January 2009, Mr. Sievert was co-founder and CEOChief Executive Officer of Switchbox Labs, Inc., a consumer technologies developer, leading up to its sale to Lenovo. He also served from January 2005 to February 2008 as Corporate Vice President of the worldwide Windows group at Microsoft Corporation, responsible for global product management and P&L performance for that unit. Prior to Microsoft, he served as Executive Vice President and Chief Marketing Officer at AT&T Wireless for three years. He also served as Chief Sales and Marketing officerOfficer at E*TRADE Financial and began his career with management positions at Procter & Gamble and IBM. He has served on the boards of Rogers Wireless in Canada, Switch & Data Corporation, and a number of technology start-ups. Mr. Sievert received a Bachelor’s degree in Economics from the Wharton School at the University of Pennsylvania.

 

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Corporate Governance

The Board of Directors is elected by our stockholders to exercise its business judgment to oversee and monitor the strategy, management and business of the Company. To assist the Board in carrying out its duties and responsibilities, the Board, among other things, has adopted corporate governance guidelines and a code of business conduct, appointed a lead independent director, and created and delegated certain authority to several committees of the Board.

Controlled Company Exemption

As a result of the consummation of the Business Combination, Deutsche Telekom beneficially owns approximately 74% of our common stock on a fully-diluted basis. Accordingly, we qualify as a “controlled company” under Section 303A.00 of the NYSE Listed Company Manual. As a controlled company, we are exempt from the requirements to have:

A majority of independent directors as defined by Section 303A.02 of the NYSE Listed Company Manual;

A nominating/corporate governance committee composed entirely of independent directors; and

A compensation committee composed entirely of independent directors.

In addition, as a controlled company, we are exempt from the requirements under SEC final Rule 10C-1, which implements Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or the Dodd-Frank Act, and related NYSE rules, relating to compensation committee member independence and compensation committee consultants.

We have chosen to take advantage of the controlled company exemptions described above. Our Board of Directors does not have a majority of independent directors. Although our Board has established a Nominating and Corporate Governance Committee and a Compensation Committee, neither of these committees is composed entirely of independent directors. In the event we cease to be a controlled company, we will be required to comply with all of the corporate governance standards under the NYSE’s rules, subject to applicable transition periods.

Corporate Governance Guidelines and Code of Business Conduct

After the consummation of the Business Combination, our Board of Directors updated our corporate governance guidelines, which, together with our certificate of incorporation, bylaws and the Stockholder’s Agreement, set forth the framework within which the Board, together with its committees, directs the affairs of the Company. The corporate governance guidelines provide for, among other things, the role and function of the Board, director qualifications, and director independence and compensation. The Board also updated our code of business conduct, which establishes the standards of ethical conduct applicable to all of our directors, officers and employees. In addition, the Company has a code of ethics for senior financial officers. The code of business conduct addresses, among other things, ethical conduct, competition and fair dealing, financial reporting, protection of Company assets, confidentiality, corporate opportunities, insider trading, employee misconduct, conflicts of interest, compliance with laws and the process for reporting suspected violations of the code of business conduct. Our code of ethics for senior financial officers addresses ethical conduct, full, fair and accurate disclosure in documents we file with the SEC and other regulatory agencies, compliance with laws, and the process for reporting suspected violations of the code of ethics. Our corporate governance guidelines, the code of business conduct and the code of ethics for senior financial officers are publicly available on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “Corporate Governance”. Any waiver of our code of business conduct with respect to any of our directors or executive officers and any waiver of our code of ethics for senior financial officers with respect to our Chief Executive Officer, Chief Financial Officer, treasurer, principal accounting officer, or controller or persons performing similar functions may be authorized only by our Board or a committee thereof and will be disclosed on our website in the manner and to the extent required by applicable SEC and NYSE rules.

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Pursuant to the corporate governance guidelines, our Board of Directors adopted stock ownership guidelines for non-employee directors and executive officers. Each non-employee director who participates in the Company’s non-employee director compensation program is expected to acquire and maintain ownership of shares of common stock equal in value to five times the annual retainer for Board service. Each executive officer is expected to acquire and maintain ownership of shares of common stock equal in value to a specified multiple of base salary (five times for the Chief Executive Officer and three times for the other executive officers). These individuals are expected to meet the ownership guidelines within five years from the date of adoption of the guidelines or, if later, five years from the commencement of service or employment, and are expected to retain at least 50% of the shares of common stock acquired through the Company’s equity compensation plans until the ownership thresholds are met.

Board’s Role in Risk Management

Management of the Company, including the Chief Executive Officer and the other executive officers of the Company, is primarily responsible for managing the risks associated with the operation, financial and disclosure controls, and business of the Company. The financial, strategic, operational, compliance, legal/regulatory, and reputational risks to the Company are considered by management when it conducts its enterprise-wide risk assessment, and are reviewed and updated regularly in connection with the operational, financial, and business activities of the Company.

The Board of Directors assesses Company risks and strategies for risk mitigation, and it manages its risk oversight function primarily through the Audit Committee of the Board. As such, the Audit Committee has primary responsibility for overseeing the Company’s enterprise risk assessment and risk management policies. In performing this function, the Audit Committee discusses policies with respect to risk assessment and risk management, including the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures. To assist the Audit Committee with its risk assessment function, the senior internal audit officer of the Company reports to the Audit Committee, has regular meetings with the Audit Committee without the participation of management of the Company, and provides an enterprise-wide risk assessment to the Audit Committee, which reviews and provides feedback to the Company and also shares the enterprise-wide risk assessment with the Board. The Audit Committee also has certain responsibilities with respect to the Company’s compliance and ethics programs.

The Executive Committee of the Board of Directors, charged with reviewing and providing guidance to senior management of the Company regarding the Company’s strategy, operating plans and operating performance, is also key in helping the Board perform its risk oversight function by considering strategic operating goals, opportunities and risks. In addition, the Compensation Committee of the Board designs our compensation program to encourage appropriate risk-taking while discouraging behavior that may result in unnecessary or excessive risk, and it periodically reviews with management the Company’s compensation programs for all employees, including management’s assessment as to whether risks arising from such programs are reasonably likely to have a material adverse effect on the Company. Finally, a report of all committee meetings, including those of the Audit Committee, Compensation Committee, and Executive Committee, are presented to the Board on a regular basis.

Board Leadership Structure

Separate Chairman and Chief Executive Officer Roles. Our Board of Directors has chosen to separate the roles of Chairman of the Board and Chief Executive Officer, and has appointed Timotheus Höttges, Deutsche Telekom’s Deputy Chief Executive Officer and Chief Financial Officer, as the Chairman of the Board. The Board has also appointed Teresa A. Taylor as the Company’s lead independent director.

The Company believes that separating the roles of Chief Executive Officer and Chairman of the Board of Directors is appropriate for the Company and in the best interests of the Company and its stockholders at this

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time. Over the past several years, demands made on boards of directors have been ever increasing, in large part due to increased regulation under the federal securities laws, national stock exchange rules and other federal and state regulatory changes and, more recently, challenging economic circumstances. The non-executive Chairman manages the overall Board function and his current responsibilities include chairing all regular sessions of the Board, establishing the agenda for each Board meeting in consultation with the lead independent director, the Chief Executive Officer and other senior management as appropriate, and helping to establish, coordinate and review the criteria and methods for at least annually evaluating the effectiveness of the Board and its committees. The separation of the offices allows Mr. Höttges to focus on management of Board matters and allows our Chief Executive Officer to focus his talents and attention on managing our business. Additionally, we believe the separation of the offices ensures the objectivity of the Board in its management oversight role, specifically with respect to reviewing and assessing the Chief Executive Officer’s performance. The Board believes that its role in risk oversight did not impact the leadership structure chosen by the Board.

Lead Independent Director. The lead independent director, a position currently held by Teresa A. Taylor, coordinates the activities of the Company’s independent directors, calling and presiding over the executive sessions of the independent members of the Board of Directors and functioning as a liaison between such independent directors and the Chairman of the Board and/or the Chief Executive Officer. As noted above, the lead independent director assists the Chairman of the Board in setting the Board’s agenda, and also provides input on the flow of information to the Board and Board meeting schedules. These responsibilities allow the lead independent director to have meaningful input into the agenda of the Board and in leading the Company.

Communications with Chairman, Presiding Director and Directors. The Company has procedures to facilitate communications among the directors, employees, stockholders and other interested third parties. Any person wishing to contact the Chairman of the Board, the Board as a whole, the lead independent director, or any individual director may do so in writing addressed to the Company as follows:

T-Mobile US, Inc.

The Board of Directors c/o Corporate Secretary

12920 SE 38th Street

Bellevue, Washington 98006-1350

Upon receipt, the communication will be distributed to the Chairman of the Board, the lead independent director, or any director, in each case depending on the facts and circumstances outlined in the communication. Letters directed to the Board of Directors or any director are reviewed by the Company to determine whether a response on behalf of the Board is appropriate. While the Board oversees management, it does not participate in day-to-day management functions or business operations and is not normally in the best position to respond to inquiries related to those matters. Accordingly, we will direct those types of inquiries to an appropriate officer or employee of the Company for a response. In addition, the Board has requested that certain items that are unrelated to the duties and responsibilities of the Board should be excluded or redirected, as appropriate, such as: business solicitations or advertisements, junk mail and mass mailings, new product suggestions, product complaints, product inquiries, resumes and other forms of job inquiries, spam, and surveys. In addition, material that is unduly hostile, threatening, potentially illegal or similarly unsuitable will be excluded. Responses to letters, or any communication that is excluded, is maintained by the Company and is available to any director upon request.

If a response on behalf of the Board of Directors, the lead independent director, the directors, or any director is appropriate, the Company gathers any information and documentation necessary for answering the inquiry and provides the information and documentation, as well as the proposed response, to the appropriate director or directors. The Company may also attempt to communicate with the stockholder or interested party for any necessary clarification. Of course, certain circumstances may require that the Board depart from the procedures outlined above.

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Executive Sessions of Directors

Executive sessions, or meetings of outside (non-management) directors without management present, are held at each regularly scheduled Board of Directors meeting, or more frequently, if necessary. The Chairman of the Board presides at such executive sessions as long as he is a non-management director. If the Chairman of the Board is not present at a non-management executive session, the lead independent director presides. If neither the Chairman of the Board nor the lead independent director is present or available at a non-management executive session, the non-management directors present elect among their members a director to chair such executive session. At these executive sessions, the outside directors review such matters as the Chairman of the Board (as long as he is a non-management director) or lead independent director or the other members of the Board may raise, including strategic, operational, or financial issues and management performance and succession.

In addition, our corporate governance guidelines require the independent directors of the Board of Directors to meet at least once each year in executive session, and the lead independent director presides at such executive session.

Board Composition and Deutsche Telekom Board Designation Rights

Pursuant to the terms of the Business Combination Agreement, the size of our Board of Directors was fixed at eleven upon consummation of the Business Combination. Subject to the provisions of our certificate of incorporation and the Stockholder’s Agreement, the size of our Board may be changed in the manner prescribed by our bylaws.

Pursuant to our certificate of incorporation and the Stockholder’s Agreement, Deutsche Telekom generally has the right to designate as nominees for election to our Board of Directors a number of individuals, each of which we refer to as a Deutsche Telekom designee, equal to the percentage of our common stock and other capital stock entitled to vote generally in the election of directors beneficially owned by Deutsche Telekom, or stock ownership percentage, multiplied by the number of directors on our Board, rounded to the nearest whole number. Pursuant to the Stockholder’s Agreement, each Deutsche Telekom designee must not be prohibited or disqualified from serving as a director on the Company’s Board pursuant to any rule or regulation of the SEC, the NYSE or any other or additional exchange on which securities of the Company are listed or by applicable law. Pursuant to the Stockholder’s Agreement, we and Deutsche Telekom have agreed to use our reasonable best efforts to cause the Deutsche Telekom designees to be elected to our Board. In addition, our certificate of incorporation and the Stockholder’s Agreement provide that each committee of the Board shall include in its membership a number of Deutsche Telekom designees in proportion to its stock ownership percentage, rounded to the nearest whole number, except to the extent such membership would violate applicable securities laws or stock exchange rules. However, no committee of the Board may consist solely of directors who are also officers, employees, directors or affiliates of Deutsche Telekom. Deutsche Telekom will have these board designation rights as long as Deutsche Telekom’s stock ownership percentage is 10% or more of the outstanding shares of our common stock.

If at any time the number of Deutsche Telekom designees then serving as directors on our Board of Directors or as members of any committee of our Board exceeds the number of Deutsche Telekom designees that Deutsche Telekom is entitled to designate, Deutsche Telekom will be required to cause the number of Deutsche Telekom designees then serving as directors on our Board or as members of such committee of our Board representing such excess to resign immediately as directors or committee members, as applicable.

Under our certificate of incorporation and the Stockholder’s Agreement, we and Deutsche Telekom have agreed to use our reasonable best efforts to cause at least three members of our Board of Directors to be considered “independent” under SEC and NYSE rules, including for purposes of Rule 10A-3 promulgated under the Securities Exchange Act of 1934, or the Exchange Act. We currently have five directors that our Board has determined are independent under NYSE rules.

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The Board of Directors has unanimously nominated the eleven nominees listed in this Proxy Statement to stand for election at the Annual Meeting to serve a one-year term ending at the 2014 Annual Meeting of Stockholders. Each of the nominees is an incumbent director and has consented to stand for re-election. Messrs. Höttges, Kübler, Langheim, Obermann, Guffey, Datar and Westbrook and Ms. Taylor were designated for nomination by Deutsche Telekom pursuant to its rights under our certificate of incorporation and the Stockholder’s Agreement.

Nomination Process, Director Candidate Selection and Qualifications

Subject to Deutsche Telekom’s board designation rights under our certificate of incorporation and the Stockholder’s Agreement, which are described above, the Nominating and Corporate Governance Committee is responsible for identifying, evaluating and recommending candidates to the Board of Directors for nomination to the Board. The Committee may consider proposed director candidates from numerous sources, including stockholders, directors and officers. Subject to Deutsche Telekom’s board designation rights, the Board is responsible for nominating directors for election by the stockholders and filling any vacancies on the Board that may occur.

Qualifications and Diversity. Subject to Deutsche Telekom’s board designation rights, our Nominating and Corporate Governance Committee is responsible for reviewing and approving potential director candidates and recommending them for consideration by our Board of Directors. The Chair of the Nominating and Corporate Governance Committee is an independent director. The Committee considers certain director selection guidelines adopted by our Board in evaluating candidates for election to the Board and making recommendations to the Board regarding director nominations. Under these director selection guidelines, the Committee considers the following qualifications, among others, of each director candidate:

Professional experience, industry knowledge, skills and expertise;

Leadership qualities, public company board and committee experience and non-business related activities and experience;

High standard of personal and professional ethics, integrity and values;

Training, experience and ability at making and overseeing policy in business, government and/or education sectors;

Willingness and ability to keep an open mind when considering matters affecting interests of the Company and its constituents;

Willingness and ability to devote the required time and effort to effectively fulfill the duties and responsibilities related to Board and committee membership;

Willingness and ability to serve on the Board for multiple terms, if nominated and elected, to enable development of a deeper understanding of the Company’s business affairs;

Willingness not to engage in activities or interests that may create a conflict of interest with a director’s responsibilities and duties to the Company and its constituents; and

Willingness to act in the best interests of the Company and its constituents, and objectively assess Board, committee and management performances.

Our Board of Directors does not have a formal policy with respect to diversity on the Board. Rather, diversity is one of many factors under our director selection guidelines that the Nominating and Corporate Governance Committee considers when evaluating potential director candidates. Our director selection guidelines do not narrowly define diversity by reference to gender and race; rather, diversity is broadly interpreted to include other factors such as age, geographic and professional diversity. In connection with its general responsibility to monitor and advise the Board on the size, role, function and composition of the Board, the Nominating and Corporate Governance Committee will periodically consider whether the Board represents the overall mix of skills and

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characteristics described in the director selection guidelines, including diversity and the other factors described above. Subject to Deutsche Telekom’s board designation rights, the selection process for director candidates is intended to be flexible, and the Nominating and Corporate Governance Committee, in the exercise of its discretion, may deviate from the selection process when particular circumstances warrant a different approach.

Nomination Process. In addition to candidates designated by Deutsche Telekom pursuant to its rights under our certificate of incorporation and the Stockholder’s Agreement, the Nominating and Corporate Governance Committee considers possible director candidates from a number of sources, including those recommended by stockholders, directors, or officers. In addition, the Committee may engage the services of outside consultants and search firms to identify potential director candidates. One or more members of the Nominating and Corporate Governance Committee interview all new director candidates that the Committee determines to consider as a potential nominee. If a candidate is recommended by the Nominating and Corporate Governance Committee, he or she may then be interviewed by other current members of the Board of Directors. If appropriate, a candidate may also be interviewed by other members of the Company’s executive management. Subject to Deutsche Telekom’s board designation rights, the full Board will approve all final nominations after considering the recommendations of the Nominating and Corporate Governance Committee.

With regard to the eleven incumbent directors whose terms are set to expire at the Annual Meeting and are being nominated for re-election to the Board of Directors, our Board considered each director’s expertise, qualifications, attributes and skills, his or her overall service during the director’s term, including the number of meetings attended, his or her level of participation, the quality of his or her performance and whether he or she meets the independence standards set forth under applicable laws, regulations and NYSE rules. Each nominee for re-election as a director must consent to stand for re-election, and each of the Company’s nominees for directors named in this Proxy Statement consented to stand for re-election and indicated he or she would serve if elected.

Stockholder Nomination ProceduresIn addition to nominations approved by the Board of Directors as described above, stockholders may nominate candidates for election to the Board to the extent permitted under our bylaws. To be eligible to nominate a candidate for election to the Board, the stockholder must be a holder of record as of the record date for the annual or special meeting at which directors are being elected and as of the time the stockholder submits its nomination in accordance with the bylaws. The stockholder must provide prior written notice of a candidate to be considered as a nominee to our secretary at our executive offices prior to the deadline before our annual meeting or special meeting at which directors are to be elected, as described in our bylaws. The stockholder must also provide the information set forth in our bylaws for each such proposed nominee of the stockholder, including the name, age, citizenship, residence and addresses of the proposed nominee, the principal occupation of each proposed nominee with the name, type of business and address of the corporation or other organization in which such occupation is carried on, the qualifications of such proposed nominee to serve as a director, the class and number of shares of the Company’s common stock beneficially held, either directly or indirectly, by the proposed nominee, a description of any arrangement between the proposed nominee and the person making the nomination regarding future employment or any future transaction to which the Company may be a party, and all information required by the director questionnaire then in use by the Company. The stockholder making the nomination (individually and on behalf of those with whom such nomination is made) must also provide the name and address of such stockholder as they appear on the Company’s books and records, the class and number of shares of capital stock of the Company that are owned by such stockholder(s), the voting rights of such stockholder(s), and the hedging and derivative positions of such stockholder(s), if any, in the Company’s capital stock.

Director Independence

The Board of Directors evaluates the independence of each director in accordance with applicable laws and regulations, NYSE rules and our corporate governance guidelines, and based upon the recommendation, advice, and information of the Nominating and Corporate Governance Committee. As a “controlled company” under NYSE rules, we are exempt from the requirement to have a majority of directors on our Board be independent. However, pursuant to our certificate of incorporation, the Stockholder’s Agreement and our corporate

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governance guidelines, the Board is required to have at least three directors (including all the members of the Audit Committee) who meet the director independence standards included in NYSE rules, and we currently have five directors who our Board has determined to be independent. At such time as we no longer meet the definition of a “controlled company” under NYSE rules, our Board will be required to have a majority of directors who meet such independence standards, subject to any applicable transition period. The Board considers all relevant facts and circumstances in making an independence determination, including among other things, making an affirmative determination that the director has no material relationship with the Company directly or as an officer, stockholder, or partner of an organization that has a material relationship with the Company. With respect to certain types of relationships, NYSE rules require us to consider a director’s relationship with the Company, and also with any parent or subsidiary in a consolidated group with the Company, which includes Deutsche Telekom and its affiliates.

The Board of Directors has determined that Messrs. Barnes, Datar, Perry and Westbrook and Ms. Taylor are independent under NYSE rules and our corporate governance guidelines. In addition, the Board has determined that each member of the Audit Committee meets the heightened independence criteria applicable to audit committee members under NYSE rules. Prior to the consummation of the Business Combination, our then-current Board of Directors had previously determined that Messrs. Callahan, Landry and Patterson, who were members of our Board until the consummation of the Business Combination, and Messrs. Barnes and Perry, were independent under NYSE rules and the Company’s corporate governance guidelines then in effect.

In making its director independence determinations with respect to the current members of the Board of Directors, our Board considered, among other things, the following relationships and concluded that they are not material and therefore, do not preclude a finding of independence:

Mr. Perry is a managing director of Madison Dearborn Partners, LLC, a private equity firm, or Madison Dearborn, which has a fund that holds approximately 2.17% of our common stock (approximately 8.3% prior to the Business Combination). As disclosed in “Transactions with Related Persons and Approval – Fiscal 2012 Transactions,” a fund advised by Madison Dearborn has ownership interests in certain companies with whom we have commercial relationships.

Board and Board Committees

Directors are expected to attend all meetings of our Board of Directors and each committee on which they serve, as well as our Annual Meeting of Stockholders. In 2012, our Board (as then constituted) met 22 times. During 2012, each then-director attended at least 86% of the total number of Board meetings and at least 77% of all meetings of committees on which such director served. Roger D. Linquist, a member of our Board until the consummation of the Business Combination, attended our Annual Meeting of Stockholders in 2012.

After the consummation of the Business Combination, the standing committees of our Board of Directors consist of an Audit Committee, a Nominating and Corporate Governance Committee, a Compensation Committee (including a Section 16 Subcommittee) and an Executive Committee. The Board also, from time to time, can create ad hoc committees of the Board that have a specific purpose.

The current members of each committee of the Board of Directors are listed below:

Audit Committee20

  

Compensation Committee

Nominating and Corporate
Governance Committee

Executive Committee

Srikant Datar, Chair

Teresa A. Taylor, Chair*Kelvin R. Westbrook, ChairTimotheus Höttges, Chair

W. Michael Barnes

Raphael KüblerThorsten LangheimRaphael Kübler

James N. Perry, Jr.

Lawrence H. GuffeyLawrence H. GuffeyThorsten Langheim
René Obermann René Obermann
Kelvin R. Westbrook*John J. Legere
James N. Perry, Jr.

*Ms. Taylor and Mr. Westbrook are also members of the Section 16 Subcommittee of the Compensation Committee.

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Prior to the consummation of the Business Combination, the committees of our Board of Directors consisted of an Audit Committee, a Nominating and Corporate Governance Committee, a Compensation Committee and Finance and Planning Committee. In 2012, our Board (as then constituted) created a Special Committee to consider the Business Combination and alternatives to the Business Combination. All of our then-directors, except Mr. Linquist, each of whom was independent, served on the Special Committee. Upon consummation of the Business Combination, the Board dissolved the Finance and Planning Committee. The members of each committee of the Board of Directors prior to the consummation of the Business Combination are listed below:

Audit Committee

Compensation Committee

Nominating and Corporate
Governance Committee

Finance and Planning Committee

W. Michael Barnes, Chair

C. Kevin Landry, ChairJames N. Perry, Jr., ChairArthur C. Patterson, Chair

John (Jack) F. Callahan, Jr.

W. Michael BarnesC. Kevin LandryC. Kevin Landry

James N. Perry, Jr.

Arthur C. PattersonArthur C. PattersonJames N. Perry, Jr.

Effective upon the consummation of the Business Combination, Messrs. Callahan, Landry, and Patterson, as well as Roger D. Linquist, who previously served as our Chairman of the Board of Directors and Chief Executive Officer, resigned from the Board. In addition, Dr. Barnes ceased to serve on our Compensation Committee.

Audit Committee. The current members of our Audit Committee, who were appointed effective immediately after the consummation of the Business Combination, are Srikant Datar, who serves as Chair, W. Michael Barnes and James N. Perry, Jr. Each of the members of the Audit Committee has been affirmatively determined by our Board of Directors to be independent in accordance with applicable laws and regulations and NYSE rules. Each member of the Audit Committee also has been found by our Board to be financially literate within the meaning of NYSE rules. No member of the Committee is, or has been, associated with the Company’s auditors or accountants, or has performed “field work,” and no member of the Audit Committee is, or has been, a full-time or part-time employee of the Company. Our Board has determined that Srikant Datar and W. Michael Barnes are “audit committee financial experts,” as such term is defined in Item 407(d)(5) of Regulation S-K, and have accounting or related financial management expertise, as required under NYSE rules, because of Dr. Datar’s extensive experience as a professor of accounting and business administration and because Dr. Barnes previously served as the Chief Financial Officer of Rockwell International Corporation. The applicable securities laws and regulations provide that an Audit Committee member who is designated as an Audit Committee financial expert will not be deemed to be an “expert” for any purpose as a result of being identified as an “audit committee financial expert” pursuant to Item 407 of Regulation S-K. Pursuant to the Audit Committee’s charter, no member of the Audit Committee may serve on more than two audit committees of publicly traded companies other than the Company at the same time such member serves on the Audit Committee, unless the Board determines that such simultaneous service would not impair the ability of such member to effectively serve on the Company’s Audit Committee.

The responsibilities of the Audit Committee include, among other responsibilities:

LOGO

overseeing, reviewing and evaluating our financial statements, the audits of our financial statements, our accounting and financial reporting processes, the integrity of our financial statements, our disclosure controls and procedures and our internal audit functions;

appointing, compensating, retaining and overseeing our independent registered public accounting firm;

pre-approving the retention of the independent registered public accounting firm to perform permissible audit, audit-related, and non-audit services, and the fees to be paid in connection therewith, other than de minimis non-audit services allowed by applicable law;

providing oversight of the Company’s risk assessment and risk management policies;

reviewing all related party transactions involving Deutsche Telekom or any of its affiliates and, after considering the information provided to the Audit Committee by Deutsche Telekom in

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connection with such review and such other information as the Audit Committee determines appropriate, making recommendations to the Board for the Board’s review and approval in accordance with the requirements of the Stockholder’s Agreement;

reviewing and approving all other related party transactions including transactions between the Company and its officers or directors or the affiliates of its officers or directors;

developing and overseeing compliance with a code of ethics for senior financial officers and a code of business conduct for all Company employees, officers and directors pursuant to and to the extent required by regulations applicable to the Company;

establishing procedures for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters;

evaluating periodically the Company’s compliance and ethics program;

evaluating periodically the charter for the Audit Committee and recommending changes to the Board; and

conducting an annual self-evaluation.

The Audit Committee is authorized by its written charterhas appointed PricewaterhouseCoopers LLP to retain, compensate and evaluate consultants and outside counselserve as necessary for it to carry out its duties without consulting with or obtaining the approval of the Board of Directors or any officer of the Company. In 2012, the Audit Committee (as then constituted) did not retain any consultants or outside counsel. The Audit Committee relies on the information provided by management and the independent registered public accounting firm. The Audit Committee does not have the duty to plan or conduct audits or to determine whether the Company’s financial statements and disclosures are complete and accurate or in accordance with generally accepted accounting principles.

In fiscal year 2012, the Audit Committee (as then constituted) met 13 times. A copy of the Audit Committee Charter adopted by our Board of Directors after the consummation of the Business Combination can be found on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “Corporate Governance.”

Audit Committee Pre-Approval Policy. To provide for the independence of our independent registered public accounting firm andfor the fiscal year ending December 31, 2015. Although ratification of the appointment of PricewaterhouseCoopers LLP by our stockholders is not required, the Board of Directors is submitting the selection of PricewaterhouseCoopers LLP to comply with applicable securities laws, NYSE rules, and our stockholders for ratification as a matter of good corporate governance. If the selection is not ratified,

the Audit Committee charter,will consider whether it is appropriate to select another independent registered public accounting firm.

We expect representatives of PricewaterhouseCoopers LLP to be present at the Annual Meeting. They will have an opportunity to make a statement if they so desire and are expected to be available to respond to appropriate questions by stockholders.

Required Vote

Approval of the proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal year 2015 requires that the number of votes cast “FOR” the proposal represents a majority of the total

votes cast on the proposal. If the stockholders do not ratify the appointment of PricewaterhouseCoopers LLP, the Audit Committee will reconsider the appointment but is under no obligation to appoint a different independent registered public accounting firm.

Audit Committee Pre-Approval Policy

The Audit Committee is responsible for reviewing deliberating and, if appropriate, pre-approving all audit, audit-related and non-audit services to be performed by our independent registered public accounting firm. For that purpose,The Audit Committee charter authorizes the Audit Committee Charter authorizes the Committee to establish a policy and related procedures regarding the pre-approval of all audit, audit-related and non-audit services to be performed by our Company’s independent registered public accounting firm.

As contemplated by its charter, the The Audit Committee has delegated its pre-approval authority to the Chair of the Audit Committee, who is authorized to pre-approve services to be

performed by the Company’sour independent auditorregistered public accounting firm and the compensation to be paid for such services if it is impracticable to delay the review and approval of such services and compensation until the next regularly scheduled meeting of the Audit Committee, provided that in such case the Chair shall provide a report to the Audit Committee at its next regularly scheduled meeting of any services and compensation approved by the Chair pursuant to the delegated authority.

Audit and All Other Fees

PricewaterhouseCoopers LLP was paid the following fees for services rendered during fiscal years 2014 and 2013:

    

2014

($)

   

2013

($)

 
Audit Fees(1)   6,993,000     6,499,000  
Audit-Related Fees(2)   47,000     254,000  
Tax Fees(3)   361,000     95,000  
All Other Fees(4)   355,000     190,000  
    Total Fees   7,756,000     7,038,000  

(1)

Audit fees relate to professional services rendered in connection with the audit of the Company’s annual financial statements and internal control over financial reporting, quarterly review of financial statements included in the Company’s Quarterly Reports on Form 10-Q and audit services provided in connection with other statutory and regulatory filings.

(2)

Audit-Related Fees consist of fees for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under Audit Fees. This category includes fees related to audit and attest services not required by statute or regulations, and consultations concerning financial accounting and reporting standards.

(3)

Tax Fees consist of fees for professional services for tax compliance, tax advice and tax planning. These services include assistance regarding federal, state and international tax compliance.

(4)

All Other Fees consist of fees for permitted services other than those that meet the criteria above and include fees to assess mobile advertising for a joint venture and research subscriptions.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement21


PROPOSAL 2 – RATIFICATION OF THE APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP

AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR FISCAL YEAR 2015

Audit Committee Report

Explanatory Note to Audit Committee Report. The Audit Committee Report below was rendered based upon the procedures described in the Audit Committee Report, with the Audit Committee as then constituted recommending the inclusion of the audited financial statements for the fiscal year ended December 31, 2012 in legacy MetroPCS’s Annual Report on Form 10-K. The Audit Committee Report below appears above the names of the members of the Audit Committee who served at the time such recommendation was made.

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Audit Committee Report.In the performance of its oversight responsibilities, the Audit Committee (1) reviewed and discussed with management and the independent registered public accounting firm the Company’s audited financial statements for the fiscal year ended December 31, 2012;2014; (2) discussed with the Company’s independent registered public accounting firm the matters required to be discussed by the auditing standards of the Public Company Accounting Oversight Board or PCAOB, including those required by PCAOB AU 380, (PCAOB) Auditing Standard No. 16,Communications with Audit Committees;Committees; (3) received the written disclosures and the letter from the Company’s independent registered public accounting firm required by the applicable requirements of the PCAOB Ethics and Independence Rule 3526, Communicationsregarding the independent accountant’s communications with the Audit Committee Concerning Independence;concerning independence; and (4) discussed with the Company’s independent registered public accounting firm any relationships that may impact theirits objectivity and independence and satisfied itself as to the firm’s independence.

Company management is responsible for the assessment and determination of risks associated with the Company’s business, financials, operations and contractual obligations. The Committee, together with the Board, areis responsible for oversight of the Company’s management of risks. As part of its responsibilities for oversight of the Company’s management of risk, the Committee has reviewed and discussed the Company’s enterprise-wide risk assessment and the Company’s policies with respect to risk assessment and risk management, including discussions of individual risk areas as well as an annual summary of the overall process.

The Committee has discussed with the Company’s Internal Audit Department and its independent registered public accounting firm the overall scope of and plans for their respective audits. The Committee regularly meets with the head of the Company’s Internal Audit Department and representatives of the independent registered public accounting firm, in regular and executive sessions, to discuss the results of their examinations, the evaluations of the Company’s internal controls, and the overall quality of the Company’s financial reporting and compliance programs.

Management is responsible for the Company’s financial reporting process, including establishing and maintaining adequate internal financial controls and the preparation of the Company’s financial statements. The Company’s independent registered public accounting firm is responsible for performing an independent audit of the Company’s consolidated financial statements and expressing an opinion on the conformity of the Company’s audited financial statements with U.S. generally accepted accounting principles. The Company’s independent registered public accounting firm also is responsible for performing an independent audit of the effectiveness of the Company’s internal controls over financial reporting and issuing a report thereon. We rely,The Committee relies, without independent verification, on the information provided to usit and on the representations made by management and the Company’s independent registered public accounting firm. Based on the review and discussion and the representations made by management and the Company’s independent registered public accounting firm, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements for the fiscal year ended December 31, 20122014 be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012.2014.

The Audit Committee:

Srikant M. Datar, Chair

W. Michael Barnes Ph.D., Chairman

John (Jack) F. Callahan, Jr.

James N. Perry, Jr.Kelvin R. Westbrook

The material contained in this Audit Committee Report does not constitute soliciting material, is not deemed filed with the SEC, and is not incorporated by reference into any other Company filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act, whether made on, before, or after the date of this Proxy Statement and irrespective of any general incorporation language in such filing, except to the extent that the Company specifically incorporates the Audit Committee Report by reference therein.

Nominating and Corporate Governance Committee. The current members of our Nominating and Corporate Governance Committee, who were appointed effective immediately after the consummation of the

 

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Business Combination, are Kelvin R. Westbrook, who serves as Chair, and Thorsten Langheim and Lawrence H. Guffey. Mr. Westbrook has been affirmatively determined by our Board of Directors to be independent in accordance with NYSE rules. The responsibilities of the Nominating and Corporate Governance Committee include, among other responsibilities:

subject to our certificate of incorporation and the Stockholder’s Agreement, assisting in the process of identifying, recruiting, evaluating, and nominating candidates for membership on our Board and the committees thereof consistent with criteria in the director selection guidelines;

annually presenting to the Board a list of nominees recommended for election to the Board at the annual meeting of stockholders;

periodically reviewing, approving and recommending to the Board appropriate revisions to the director selection guidelines;

developing processes regarding the review, approval, recommendation and consideration of director candidates;

subject to our certificate of incorporation and the Stockholder’s Agreement, recommending to the Board director membership on Board committees and advising the Board and/or committees with regard to selection of Chairpersons of committees;

conducting an annual self-evaluation and developing and overseeing a process for an annual evaluation of the Board, and establishing and coordinating with applicable committee Chairpersons the criteria and methods for evaluating the effectiveness of the Board’s committees; and

reviewing and recommending to the Board appropriate revisions to the corporate governance guidelines.

The Nominating and Corporate Governance Committee is authorized by its charter to retain, compensate, evaluate and terminate consultants, including search firms retained to identify candidates for the Board of Directors and outside counsel necessary for it to carry out its duties, without consulting with or obtaining the approval of the Board or any officer of the Company. It may also form and delegate authority to subcommittees of the Nominating and Corporate Governance Committee.

In fiscal year 2012, the Nominating and Corporate Governance Committee (as then constituted) met two times. A copy of the Nominating and Corporate Governance Committee Charter adopted by our Board of Directors after the consummation of the Business Combination can be found on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “Corporate Governance.”

Compensation Committee. The current members of our Compensation Committee, who were appointed effective immediately after the consummation of the Business Combination, are Teresa A. Taylor, who serves as Chair, and Lawrence H. Guffey, Raphael Kübler, René Obermann and Kelvin R. Westbrook. The Board of Directors has affirmatively determinedrecommends that Ms. Taylor and Mr. Westbrook are independent in accordance with NYSE rules. The responsibilitiesyou vote

“FOR”

the ratification of the appointment of PricewaterhouseCoopers LLP

as our independent registered public accounting firm for fiscal year 2015.

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Compensation Committee include, among other responsibilities:Discussion and Analysis

This Compensation Discussion and Analysis (“CD&A”) describes our executive compensation program for the following 2014 executive officers (collectively, the “Named Executive Officers”):

 

periodically reviewingJohn J. Legere, President and approving the Company’s overall executive compensation philosophy and its programs, policies and practices;Chief Executive Officer

 

reviewingJ. Braxton Carter, Executive Vice President and approving corporate goals and objectives relevant to the Chief Executive Officer’s compensation, evaluating the Chief Executive Officer’s performance and determining the Chief Executive Officer’s compensation;Financial Officer

 

G. Michael Sievert, Chief Operating Officer(1)

James C. Alling, former Executive Vice President and Chief Operating Officer, T-Mobile Business(2)

reviewingGary A. King, Executive Vice President and approving annual compensation forChief Information Officer

(1)

Effective February 13, 2015, Mr. Sievert assumed the role of Chief Operating Officer. Previously, Mr. Sievert was the Company’s Executive Vice President and Chief Marketing Officer.

(2)

Mr. Alling resigned from the Company effective March 13, 2015.

T-Mobile Achieved a Record Year of Growth in 2014 and Delivered Strong Financial and Operational Performance

T-Mobile had an extraordinary year in 2014. We delivered a record year of growth in 2014 as our Un-carrier initiatives continued to resonate with consumers. Since launching Un-carrier in 2013,T-Mobile has transformed the wireless industry with consumer-friendly offers that resolve customer pain points and differentiateT-Mobile from the competition. We continued to deliver strong customer growth in 2014 and ended the year with more than 55 million total customers, reflecting total net customer additions of 8.3 million in 2014, an 89% increase from the prior year, makingT-Mobile America’s fastest growing wireless company. The strong performance is underpinned by the Company’s other executive officers;

reviewing and approving annual and long-term incentive compensation plans for executive officers;

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reviewing and recommendingnetwork, which continued to the Board for its approval all Company equity compensation plans and overseeing the administration of those plans;

reviewing and recommending to the Board with respect to compensation for non-employee members of the Board (directors who are not employees of the Company or officers or employees of Deutsche Telekom), and periodically reviewing the status of Board compensation policies and discussing the results of such review with the Board;

determining officer and director stock ownership guidelines and monitoring compliance with such guidelines;

periodically reviewing with management the compensation programs for all employees, including management’s assessment of risks arising from such programs;

preparing an executive compensation report for publication in our annual Proxy Statement;

deciding whether to retainexpand at a compensation consultant and establishing and administering a policy to ensure that compensation consultants and other advisors are independent;

conducting an annual self-evaluation;

reviewing annually plans for succession of senior management; and

reviewing and recommending submission of executive compensation matters to the Company’s stockholders, including advisory votes on executive pay.

The Compensation Committee has established a Section 16 Subcommittee, which has sole authority to approve all awards granted to the Company’s Section 16 executive officers that are intended to qualify as performance-based compensation for purposes of section 162(m) of the Internal Revenue Code of 1986, as amended, or Code, and unless otherwise determined by the Compensation Committee, authority to approve all equity or equity-based awards to the Company’s Section 16 executive officers.

The Compensation Committee is authorized by its charter to retain, compensate, evaluate and terminate consultants, including compensation consultants, and outside counsel as necessary for it to carry out its duties without consulting with or obtaining the approval of the Board of Directors or any officer of the Company. In 2012, the Compensation Committee (as then constituted) employed Mercer (a wholly owned subsidiary of Marsh & McLennan Companies, Inc.), a well-recognized employee benefits and compensation consulting firm, to assist the Committee in evaluating executive compensation and benefits.breakneck pace. At the requestend of the Compensation Committee, a consultant from Mercer attended the Compensation Committee meetings at which executive officer compensation was discussed and provided information, research and analysis pertaining to executive compensation and benefits as requested by the Compensation Committee. Mercer also updated the Compensation Committee on market trends and made recommendations for establishing the market values2014,T-Mobile’s 4G LTE network covered 265 million people, exceeding our original year-end target of compensation for the executives of our Company. Mercer was the compensation consultant used by the Compensation Committee to evaluate and recommend the compensation and benefits provided to the Chairman and Chief Executive Officer and the Named Executive Officers for fiscal year 2012. During 2012, Mercer provided exclusively executive compensation services to MetroPCS. The aggregate fees for such services were $89,179. 250 million.

In addition Mercer provided services to strong customer growth, T-Mobile USAdelivered outstanding financial results. Service revenues in 2012 for investment2014 increased by 9.0% year-over-year, and benefits consulting and retirement plan consulting. The aggregate fees for such services were $131,244.total revenues increased by 13.1% year-over-year. Adjusted EBITDA amounted to $5.636 billion in 2014, up 6.0% year-over-year. Since Mercer provided the services to T-Mobile USA before the Business Combination, we have significantly grown TSR. From May 1, 2013 through March 31, 2015,T-Mobile TSR outpaced 17 of our19 peer companies. Our stock price has increased by 92% from May 1, 2013 through March 31, 2015.

Our executive compensation program emphasizes pay-for-performance. As a result, our 2014 Named Executive Officer compensation reflects T-Mobile’s strong 2014 operational and financial performance.

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T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement23


EXECUTIVE COMPENSATION

Executive Compensation Program

Our executive compensation program is aligned with Metro PCS, MetroPCSour business strategy and is designed to attract and retain top talent, reward business results and exceptional individual performance, and most importantly, maximize stockholder value. Our executive compensation program is competitive in the marketplace and highly incentive-based, with Company performance determining a significant portion of total compensation.

Key Features of our Executive Compensation Program

What we doWhat we don’t do

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Emphasis on pay for performance

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No short-selling, hedging or pledging of Company securities

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Independent compensation consultant

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No excise tax gross ups

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Minimum stock ownership guidelines

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No special executive retirement program

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Clawback policy to recapture incentive payments

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No acceleration of compensation upon retirement

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Use of multiple performance measures and caps on potential incentive payments

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No single-trigger vesting of equity awards upon a change in control

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Substantial majority of target total compensation is variable

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No excessive perquisites

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Use of executive compensation statements (“tally sheets”)

What We Pay and Why: Goals and Elements of Compensation

LOGO

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EXECUTIVE COMPENSATION

To promote a performance-based culture that further aligns the interests of management and stockholders, in 2014 the MetroPCSexecutive compensation committeeprogram focused extensively on variable, performance-based compensation. As illustrated in 2012 had no rolethe charts below, the substantial majority of our Named Executive Officers’ total compensation as reported in recommending or approving the services provided to T-Mobile USA.2014 Summary Compensation Table was in the form of variable compensation (short-term and long-term).

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Factors Considered in Determining Executive Compensation

Compensation Consultant and Management

The Compensation Committee sets compensation levels based on the skills, experience and achievements of each executive officer, taking into account the market rates recommendedanalysis, input by its compensation consultant and the compensation recommendations by theof our Chief Executive Officer, except with respect to his own position. The Compensation Committee believes that input from both managementits independent consultant and its consultantour Chief Executive Officer provides useful information and points of view to assist the Compensation Committee in determining the appropriate compensation.

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In fiscal year 2012, the Compensation Committee (as then constituted) met seven times. A copy of the Compensation Committee Charter adopted by the Board after the consummation of the Business Combination can be found on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “Corporate Governance.”

Compensation Committee Interlocks and Insider Participation

During the fiscal year ended December 31, 2012, the Compensation Committee was composed of C. Kevin Landry, who served as Chairman, W. Michael Barnes, and Arthur C. Patterson. During 2012, there were no compensation committee interlocking relationships or interlocking directorships.

Compensation Committee Report

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with Company management. Based on such review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in the Company’s proxy statement and such other filings with the Securities and Exchange Commission as may be appropriate.

Submitted by the Compensation Committee of the Board of Directors:

Teresa A. Taylor, as Chair

Lawrence H. Guffey

Raphael Kübler

René Obermann

Kelvin R. Westbrook

Ms. Taylor and Messrs. Guffey, Kübler, Obermann and Westbrook were first appointed to the Compensation Committee on May 1, 2013 upon consummation of the Business Combination, and did not take part in decisions made by the Compensation Committee prior to that date, including the review and discussion with management and recommendation to the Board of the Compensation Discussion and Analysis that was included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 which was filed with the SEC prior to the consummation of the Business Combination.

The material contained in this Compensation Committee Report does not constitute soliciting material, is not to be deemed filed with the SEC, and is not incorporated by reference in any of our filings under the Securities Act or the Exchange Act, whether made on, before, or after the date of this Proxy Statement and irrespective of any general incorporation language in such filing.

Executive Committee. Our Board of Directors established an Executive Committee following the consummation of the Business Combination. The current members of our Executive Committee are Mr. Timotheus Höttges, who serves as Chairman, and Messrs. Raphael Kübler, Thorsten Langheim, John J. Legere, René Obermann and James N. Perry, Jr. The Executive Committee has been established by our Board of Directors to review and provide guidance to senior management of the Company regarding the Company’s strategy, operating plans and operating performance, and under certain circumstances, to exercise the powers and duties of the Board between Board meetings; provided that the matter is not such that is not permitted under applicable law or the Company’s certificate of incorporation or bylaws to be delegated by the Board to a committee of the Board. In addition, before exercising the powers and authority of the Board with respect to any particular matter, the Chairperson and the Independent Member (as defined below) shall have concurred that, under the circumstances, it would be neither advisable to delay consideration of that matter to the next regularly scheduled meeting of the Board nor practicable to schedule a special meeting of the Board to consider that matter on a timely basis.

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Subject to the Company’s certificate of incorporation and the Stockholder’s Agreement, the members of the Executive Committee shall be appointed by the Board of Directors; provided, that at least one of the members of the Executive Committee shall be the lead independent director of the Board or another Non-Affiliated Director (as defined in the Stockholder’s Agreement) (the “Independent Member”) and at least one member of the Committee shall be the Company’s Chief Executive Officer.

The Executive Committee is authorized by its charter to retain, compensate, evaluate and terminate consultants, including outside counsel, as necessary for it to carry out its duties, without consulting with or obtaining the approval of the Board of Directors or any officer of the Company. A copy of the Executive Committee Charter adopted by the Board can be found on our website at www.t-mobile.com by clicking the “Investor Relations” hyperlink located in the footer of the Home page, and then selecting “Corporate Governance.”

Compensation of Directors

In fiscal year 2012 and until April 30, 2013, when the Business Combination was consummated, non-employee independent members of our Board of Directors were eligible to participate in the MetroPCS Communications, Inc. Third Amended and Restated Non-employee Director Remuneration Plan, or non-employee director remuneration plan, under which such directors received compensation for serving on our Board. Under the non-employee director remuneration plan, directors who were employees did not receive any additional compensation in respect of their services as directors. The objectives for our non-employee director remuneration plan were to remain competitive with the compensation paid to directors of comparable publicly held and traded companies while adhering to corporate governance best practices with respect to such compensation, and to reinforce our practice of encouraging stock ownership.

The Company’s non-employee director remuneration plan provided:

an annual retainer of $40,000, plus $10,000 if such member serves as Chairman of the Finance and Planning Committee, the Compensation Committee or the Nominating and Corporate Governance Committee of the Board, and $30,000 if such member serves as the Chairman of the Audit Committee of the Board, which amounts shall be paid in cash;

an initial grant of 33,600 options to purchase our common stock upon becoming a member of the Board, with an exercise price equal to the common stock’s closing price on the NYSE on the date of grant, which vests over three years in a series of 36 successive equal monthly installments beginning after the date of grant;

an annual grant of 16,800 options to purchase our common stock, with an exercise price equal to the common stock’s closing price on the NYSE on the date of grant, which vests over three years in a series of 36 successive equal monthly installments beginning after the date of grant;

an annual grant of 6,000 shares of restricted stock that vests over three years with such restricted stock award vesting upon completion of each quarter of service, in a series of 12 successive equal quarterly installments beginning three months after the grant date; and

$2,000 for each Board meeting and committee meeting attended in-person and $1,000 for each telephonic meeting of the Board and committee meeting attended telephonically.

The following table sets forth certain information with respect to our non-employee director compensation during the fiscal year ended December 31, 2012. The numbers in the footnotes to the table do not reflect the reverse stock split or the cash payment in connection with the Business Combination.

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2012 Director Compensation Table

Name

  Fees Earned
or Paid in
Cash
   Stock
Awards (2)
   Option
Awards (1)(2)
   Total 

W. Michael Barnes

  $123,500    $57,300    $81,490    $262,290  

John (Jack) F. Callahan, Jr.

  $84,500    $57,300    $81,490    $223,290  

C. Kevin Landry

  $91,500    $57,300    $81,490    $230,290  

Arthur C. Patterson

  $93,500    $57,300    $81,490    $232,290  

James N. Perry, Jr.

  $112,500    $57,300    $81,490    $251,290  

(1)The value of the option awards is determined using the aggregate grant date fair value computed in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 718 (Topic 718, “Compensation – Stock Compensation”). These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be realized by the directors. See Note 13 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 regarding assumptions underlying valuation of equity awards.

(2)The following summarizes the grant date fair value of each award granted during 2012, computed in accordance with ASC 718, as well as the aggregate shares under stock awards, and the aggregate shares underlying option awards held by each non-employee director as of December 31, 2012:

Name

  Grant Date   Number of
Shares of
Stock or
Units (#)
   Number of
Securities
Underlying
Options (#)
   Exercise or
Base Price of
Option
Awards
($/Share)
   Grant Date
Fair Value
($)
 

W. Michael Barnes (a)

   2/7/2012       16,800    $9.55    $81,490  
   2/7/2012     6,000           $57,300  

John (Jack) F. Callahan, Jr. (b)

   2/7/2012       16,800    $9.55    $81,490  
   2/7/2012     6,000           $57,300  

C. Kevin Landry (c)

   2/7/2012       16,800    $9.55    $81,490  
   2/7/2012     6,000           $57,300  

Arthur C. Patterson (d)

   2/7/2012       16,800    $9.55    $81,490  
   2/7/2012     6,000           $57,300  

James N. Perry, Jr. (e)

   2/7/2012       16,800    $9.55    $81,490  
   2/7/2012     6,000           $57,300  

(a)Dr. Barnes held options to purchase 326,487 shares of Common Stock and 7,500 shares of restricted stock subject to vesting as granted under our Equity Plans.

(b)Mr. Callahan held options to purchase 100,800 shares of Common Stock and 7,500 shares of restricted stock subject to vesting as granted under our Equity Plans.

(c)Mr. Landry held options to purchase 48,068 shares of Common Stock and 7,500 shares of restricted stock subject to vesting as granted under our Equity Plans.

(d)Mr. Patterson held options to purchase 99,934 shares of Common Stock and 7,500 shares of restricted stock subject to vesting as granted under our Equity Plans.

(e)Mr. Perry held options to purchase 279,000 shares of Common Stock and 7,500 shares of restricted stock subject to vesting as granted under our Equity Plans.

In connection with the consummation of the Business Combination, all outstanding equity awards under the Company’s equity plans, including each outstanding stock option and each share of restricted stock held by

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directors, automatically vested and, in the case of stock options, became exercisable. Holders of stock options could elect to receive cash in lieu of their vested stock options during the five days following the consummation of the Business Combination in accordance with the terms of the Business Combination. Any stock options that were not cashed out were adjusted for the reverse stock split and the cash payment and remain outstanding in accordance their terms.

2013 Director CompensationMarket Analysis

In 2013, our Board of Directors undertook a review of compensation for non-employee directors. It was assisted in this review by management’s compensation consultant, Towers Watson, which provided advice and perspective regarding peer group practices and broader market trends. As a result of this review, our Board adopted the T-Mobile US, Inc. Director Compensation Program, effective as of April 30, 2013 (the “2013 Program”) described below, which with respect to equity awards is subject to stockholder approval of the 2013 Omnibus Incentive Plan.

Each director who is not an employee of the Company or an officer or employee of Deutsche Telekom, which we refer to as a non-employee director, is eligible to participate in the 2013 Program. Each non-employee director will receive an annual retainer of $100,000 paid in equal quarterly installments at the end of the quarter in which earned. Fees are subject to pro-ration for any person who becomes a non-employee director and/or committee chair at any time of the year other than the date of the Company’s annual meeting of stockholders. The Chairs of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee each will receive an additional retainer of $50,000, $25,000 and $10,000, respectively, and the lead independent director will receive an additional retainer of $25,000. Non-employee directors will receive $2,000 per meeting for in-person Board and committee meetings in excess of ten board meetings and ten committee meetings per calendar year, and an additional $1,000 for telephonic Board and committee meetings in excess of ten board meetings and ten committee meetings per calendar year. Directors will also receive reimbursement of expenses incurred in connection with their Board service.

Immediately after each annual meeting of stockholders beginning with the 2013 Annual Meeting, each non-employee director will automatically be granted restricted stock units (“RSUs”) with a value equal to $100,000 based on the closing price of our common stock on the grant date, with pro-rata awards for non-employee directors joining the Board at any time other than the date of the annual meeting of stockholders. The RSUs will vest on the one-year anniversary of the grant date. In the event of a director’s termination of service prior to vesting, all RSUs are automatically forfeited to the Company. The RSUs will immediately vest on the date of a change in control of the Company.

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COMPENSATION DISCUSSION AND ANALYSIS

Overview

This Compensation Discussion and Analysis, or CD&A, describes our executive compensation program for 2012. We use this program to attract, motivate, and retain the executives who lead our business. In particular, this CD&A explains how the Compensation Committee of the Board of Directors, or the Committee, made its compensation decisions for our executives, including our named executive officers, or Named Executive Officers or NEOs, for 2012. Our NEOs for 2012 were Roger D. Linquist, Chairman and Chief Executive Officer; Thomas C. Keys, President and Chief Operating Officer; J. Braxton Carter, Vice Chairman and Chief Financial Officer; Mark A. Stachiw, Vice Chairman, General Counsel and Secretary; and Dennis T. Currier, Senior Vice President of Human Resources. Effective upon consummation of the Business Combination, there have been changes to our executive management team. Mr. Linquist resigned as our Chief Executive Officer. Mr. John J. Legere became our President and Chief Executive Officer. Mr. Keys resigned as our President and Chief Operations Officer and was appointed Executive Vice President and Chief Operating Officer MetroPCS Business. Mr. Carter continued as Chief Financial Officer and was appointed Executive Vice President and Treasurer. Mr. Stachiw ceased serving as Vice Chairman, General Counsel and Secretary. Mr. Currier ceased serving as Senior Vice President of Human Resources. See pages 19-21 for a description of our current executive management team.

The composition of our Compensation Committee has also changed as a result of the Business Combination. For 2012 and until the consummation of the Business Combination, the members of the Committee were C. Kevin Landry, as Chair, W. Michael Barnes and Arthur C. Patterson. Effective upon consummation of the Business Combination, the members of the Committee are Teresa A. Taylor, as Chair, Lawrence H. Guffey, Raphael Kübler, René Obermann and Kelvin R. Westbrook.

After consummation of the Business Combination, the newly constituted Compensation Committee engaged Mercer to continue as its independent, outside compensation consultant. The Committee is in the process of working with Mercer with input from management to determine the specific direction, emphasis and components of an executive compensation program for the Company that will be competitive and performance-based and will align the interests of our executive officers with those of our stockholders.

Fiscal 2012 Compensation

This section of the CD&A describes our historical fiscal 2012 executive compensation program, as also described in legacy MetroPCS’s Annual Report on Form 10-K for the year ended December 31, 2012. The amounts presented in the CD&A and the following tables under “Executive Compensation” do not reflect the reverse stock split or the cash payment effected in connection with the Business Combination. References to the Compensation Committee in the remainder of this CD&A refer to the Compensation Committee as constituted in fiscal 2012.

Our Compensation Highlights for 2012

In 2012, we realigned the short-term incentive targets for several of the named executive officers based on our annual market analysis to maintain our desired compensation philosophy. The Company did not change its executive compensation philosophy of paying for performance; we retained the same group of peer companies as a guide in establishing our executive compensation programs; the Compensation Committee used the same compensation consultant as in 2011; the Compensation Committee used the same annual cash performance award criteria in 2012 as 2011; and we retained the same Company/Team and individual component breakdown for our annual cash performance awards. The same percentage of base salary for our annual cash performance awards targets was maintained in 2012 as 2011, except that with respect to our President & Chief Operating Officer and Chief Financial Officer and Vice Chairman we increased the percentage of base salary by 5%. In

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addition, we made long-term equity grants based on the same criteria for the Named Executive Officers in 2012 as 2011. In 2012, we increased the base salary of our CEO by 8.6% and the three next highest NEOs by 5.4%, effective February 11, 2012.

The following table shows the percentage of change of each element of our compensation mix for each of our Named Executive Officers from 2011 to 2012. See more detailed discussion below regarding the basis for these changes and the 2012 Summary Compensation Table below for the corresponding amounts attributable to each element for each of the Named Executive Officers.

Percentage Change in Compensation from 2011 to 2012

Element

  CEO  President &
COO
  Vice Chairman/
CFO
  Vice Chairman/
General Counsel
and Secretary
  SVP/HR 

Salary (1)

   8.6  5.4  5.4  5.4  7.4

Stock Awards (2)

   (33.7)%   (33.7)%   (30.0)%   (33.7)%   (33.7)% 

Option Awards (2)

   (25.8)%   (25.8)%   (24.1)%   (25.8)%   (44.1)% 

Non-equity Incentive Plan Compensation (3)

   (4.7)%   (2.3)%   (1.6)%   (7.7)%   7.0

All Other Compensation (4)

   2.0  2.0  2.0  2.0  0.0
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total Compensation

   (21.6)%   (20.9)%   (19.1)%   (20.1)%   (24.6)% 
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

(1)The merit based increase to base salary for 2012 was effective February 11, 2012.

(2)The percentages are reflective of the Company’s stock price being significantly lower on the grant date in 2012 versus the grant date in 2011. See “2012 Total Compensation Mix Analysis” below.

(3)The Company/Team performance criteria payout percentage used in calculating non-equity incentive plan compensation was lower for 2012 at 84.0% versus 106.0% for 2011. See “Annual Cash Performance Awards” below.

(4)Consists of the MetroPCS’s 401(k) matching contribution for each NEO that elects to participate in the 401(k) Plan.

At our 2011 Annual Meeting of Stockholders, we submitted two non-binding, advisory proposals to our stockholders. The first was a proposal seeking approval of our executive compensation, or the Non-Binding Resolution on Executive Compensation. Over 94% of our stockholders voted in favor of a Non-Binding Resolution on Executive Compensation. After taking into consideration, among other things, the vote in favor of the Non-Binding Resolution on Executive Compensation, our Compensation Committee continued its objectives in the same manner as 2011 and did not make any material changes to the compensation program or the executive compensation program for 2012. The second non-binding, advisory proposal was on the frequency of the non-binding, advisory vote on executive compensation, or Frequency Vote. At our 2011 Annual Meeting of Stockholders, our Board recommended to our stockholders that they vote to hold the non-binding, advisory vote to approve executive compensation once every three years. A majority of the votes cast (excluding abstentions) for the Frequency Vote were in favor of holding the non-binding, advisory vote on executive compensation once every three years. After taking into consideration, among other factors, the resulting vote of the stockholders, the Board, consistent with the recommendation to stockholders, determined to hold the non-binding, advisory vote to approve executive compensation once every three years. Accordingly, the next non-binding advisory vote to approve executive compensation for the Company’s named executive officers will be held at the Company’s 2014 Annual Meeting of Stockholders. The next Frequency Vote will be held on or before the Company’s 2017 Annual Meeting of Stockholders.

The Objectives of Our Executive Compensation Program

Our compensation program is designed to attract and retain highly skilled executives with an emphasis on pay for performance that is aligned with our stockholders’ interests. Our Compensation Committee is responsible

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for establishing and administering our policies governing the compensation for our executive officers, including our Named Executive Officers. Our Compensation Committee for 2012 was composed entirely of non-employee independent and outside directors.

Our executive compensation programs are designed to achieve the following objectives:

Emphasize pay for performance;

Attract, retain and motivate talented and experienced executives in the highly competitive and dynamic wireless telecommunications industry;

Recognize, compensate and reward executives whose knowledge, skills and performance are critical to our success;

Align the interests of our executive officers with our stockholders by motivating executive officers to increase stockholder value and reward such executive officers when specific, measurable milestones are achieved;

Provide a competitive compensation package which is weighted heavily towards pay for performance, and in which total compensation is primarily determined by the achievement of specific, measurable Company/Team goals and individual goals, and the creation of stockholder value;

Ensure fairness among the executive officers by recognizing the contribution eachcomparative executive officer makes to our success;

Encourage appropriate risk taking while discouraging behavior that may result in unnecessary or excessive risk;

Foster a shared commitment among executive officerscompensation data publicly disclosed by coordinating their Company/Team and individual performance goals in a meaningful and collaborative manner; and

Appropriately compensate our executives to manage our business to meet or exceed our long-range objectives and business goals.

Our Compensation Principles and Practices

Use of Competitive Data

The primary principle and objective of our compensation program is to align strategic goals of management and stockholders by motivating and rewarding executive officers on a pay for performance basis through a market-competitive pay package, which is derived from short and long term targeted performance measurements and objectives of the Company. Our Compensation Committee is responsible for developing and reviewing our compensation policies and program and in doing so utilizes external resources as well as a compensation consultant. For benchmarking purposes, our Compensation Committee has established a peer group of public companies in addition to compensation survey data to evaluate the competitiveness of our executive officer compensation and to guide the Company’s compensation for its executive officers and to be used as a guide in setting compensation for

newly hired executive officers. As a check against, and to supplement the peer group data, the Company also reviews each executive officer position with respect to the compensation databases of telecommunications companies and for comparable positions in comparably sized organizations, as well as the relationship, duties, and importance of each officer to the Company. We believe a competitive total compensation package is necessary to attract and retain an executive management team with the appropriate abilities and experience required to lead us.

the Company and execute on our strategic business plan. In analyzing this information, we compare the executive compensation program as a whole and compare the pay of individual executives if we believe the positions are sufficiently similar to make meaningful comparisons. We do not target a specific percentile in the range of comparative data for each individual or for each component of compensation. In determining the amount of base salary, target incentive award and level of equity compensation for each Named Executive Officer, we review the comparative compensation data and consider each executive’s level of responsibility, prior experience, past job performance, contribution to the Company’s success and results achieved. The Compensation Committee uses the market data derived from the peer groupexercises its business judgment and the compensation databases as a guide in establishing the total compensation for each executive officer. However, we use the market data only as a checkdiscretion and guide and we independently view the total compensation of each executive officer against other officers and the relative duties and importance of the executive officer to the Company. We compare the total compensation for each of our executive officers, which consists of base salary, annual cash

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performance awards and long-term equity incentive awards, as well as our performance results, in relation to other companies in our industry of similar size in terms of revenue and market capitalization. The management of the Company, the Company’s compensation consultant and the Compensation Committee’s independent compensation consultant reviewed the total compensation of both our peer group and a select database of additional representative companies to establish the market compensation for our executive officers. Mercer provided consultation services solely to and for the Compensation Committee in 2012.

We used the following market data as a guide in establishing our total compensation program for 2012. The market data was derived from the available Proxy Statement filings as of October 2011 from the listed public wireless telecommunications companies, representing our 2012 peer group, which we believe are comparable to us based on an estimated median full year gross revenue of $3.8 billion for 2011 and a median market capitalization of $3.5 billion as of October 27, 2011:

CenturyLink, Inc., formerly CenturyTel;does not apply formulas or assign these factors specific mathematical weights.

Charter Communications, Inc.;

Clearwire Corporation;

Frontier Communications Corporation;

Leap Wireless International Inc.;

Liberty Global, Inc.;

NII Holdings, Inc.;

NTELOS Holdings Corporation;

TW Telecom Inc.;

United States Cellular Corporation; and

Windstream Corporation.

We believe that it is important to compare to a peer group of companies that are in the same industry as the Company and have revenue, three year revenue and Adjusted Earnings Before Interest, Depreciation and Amortization, or EBITDA, and Compounded Annual Growth Rate, or CAGR, comparable to the Company and to maintain it year over year to retain comparability. The industry, however, has been consolidating so there are fewer companies each year to use as a comparison and many of the companies in the industry have significantly larger revenues than the Company, are not publicly traded, or are not growing. For example, we previously have used Centennial Communications Corporation in our study, but it was acquired in 2009. We believe that the companies we use in establishing our total compensation for our executive officers are appropriate for the following reasons:

These companies are in the telecommunications and media industry;

The Company had revenues of $4.1 billion for 2010 and each company in the group represents a blend of revenues for the most recent fiscal year as of October 27, 2011;

The Company has three year revenue CAGR of 22% and almost all of the companies have positive three year revenue CAGR and several have a revenue CAGR ranging from 18-37% for the most recent fiscal year as of October 27, 2011; and

The Company has a three year EBITDA CAGR of 21% and almost all of the companies have positive three year EBITDA CAGR and a number have a three year CAGR of EBITDA between 11-37%.

Based on this peer group, the Company had annual revenues of 57% of the peer group, and was in the 83rd percentile for the three year revenue CAGR and the 90th percentile for the three year EBITDA CAGR.

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Company versus Peer Group Metric Comparison (1)

   

Revenue for the FYE as of 10/27/2011

  

Market Cap Value as of 10/27/2011

   ($ in millions)  ($ in millions)

Peer Group Median

  $3,798  $3,548

Company

  $4,069  $3,522

Peer Group Percentile Positioning

  Between 50th - 75th percentile  Approximately 50th percentile

(1)Information included in Mercer’s report “Review of Executive Compensation” dated November 1, 2011.

One of the goals of the Compensation Committee is to retain a consistent peer group from year to year. Maintaining a consistent peer group (excluding companies which no longer report) assists the Compensation Committee in making comparable analysis from year to year and avoiding anomalies which are introduced through changing peer groups. For 2011, the peer group was substantially the same as the peer group for the last three years. As Centennial Communications Corporation was acquired by AT&T in 2009, it was removed for the 2012 peer group.

We believe using a public peer group along with the select databases of other companies to evaluate the competitiveness of the Company’s total compensation for executive officers provides the best approach in making sure that our compensation is competitive in the wireless telecommunications industry and is a best practice for setting incentive compensation. We believe that the public peer group of companies provides an appropriate reference point because they consist of similar organizations with similar revenues and enterprise valuations against which we compete for executive talent and from which we are most likely to draw new executives. Further, since the Company believes that the NEOs’ total compensation is linked to Company revenue, having a peer group where the Company is at or near the median is important. We do not attempt to quantify or otherwise assign any relative weightings to any of our peer companies when benchmarking against them. We annually review the companies in our peer group and add or remove companies as necessary to ensure that our peer group comparisons are meaningful.

Published survey data include surveys focused on the communications industry, including Mercer Benchmark Survey and Mercer Telecom Industry Survey, and was used primarily for those executive officer positions with insufficient peer proxy data. A sample list of telecommunications companies in such surveys include:

 

ALLTEL WirelessT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement Intelsat Global Service Corp.
Applied Signal TechnologyLevel 3 Communications
AsurionnTELOS
AT&T, Inc.Qualcomm
Brightstar CorporationQwest Communications International
Broadview Networks, Inc.Radio One
CableVision Systems Corp.Samsung Telecommunications America
CACI International, Inc.Singapore Telecom USA
CenturyLinkSirius XM Radio
Charter CommunicationsSprint Nextel
Comcast CorporationTDS Telecom
Cox Enterprises Inc.Tellabs
Crown Castle International CorpTime Warner Cable
DirectTVT-Mobile USA
Dish NetworkUnited States Cellular Corporation
Echostar CorporationVerizon Communications
FPL FibernetVerizon Wireless
Integra TelecomVonage Holdings Corporation25


EXECUTIVE COMPENSATION

 

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For 2012, in order to properly analyze the industry data, the Company analyzed for each executive the compensation data gathered by the Company and the compensation consultants. Market comparisons for the NEOs focused onOur 19 company peer group comparisons that were supplemented with published survey data only when therefor 2014 was insufficient peer group comparison data.

We believe our executive compensation program is appropriate when considering our business strategy, our compensation philosophy, the competitiveselected based on similarity to us in terms of relative size based on revenue and market pay data, the competitiveness of the wirelesscapitalization, industry and the significant growth that we have achieved year over year. Further, manyability to compete with us for talent at the executive officer level.

LOGO

Analysis of our executive officers have a number of years of experience in both the communications industry and in senior management, which requires us to ensure that our executive compensation program is competitive with other companies that may try to recruit our executive officers.Executive Officer Compensation

The Decision Making ProcessBase Salary

For each executive officer, we consider the following factors when establishing the executive’s total compensation:

 

The natureCompensation Committee reviewed the base salaries of our business, the regulatory, legal and financial environment in which we operate and our business need for the executive officer’s skills, as well as the business need for the executive by our peer group of companies;

The value of the overall experience and professional expertise that the executive officer affords to the broader goals and long-term objectives of our business;

The contributions that the executive officer has made relative to our success;

The relationship and contributions of our executive officers working together as a team to execute our overall business strategy;

The relationship of our executive officers’ pay to the median pay for their position with a view toward having executives reach the median for their pay within several years of being in the position commensurate with individual performance;

The transferability of the executive officer’s experience and managerial skills to other potential employers, particularly in the communications industry; and

The readiness of the executive officer to assume a more significant role with our Company or another potential employer.

We believe these factors are appropriate because they allow the Company to balance the experience, talent and skills of the executive with other factors in order to attract and retain the executives needed to be successful. While we consider each of these factors, no factor is given greater importance than any other factor.

The Company used a performance evaluation system established at the beginning of the fiscal year to determine the executive officer’s performance against established target performance goals and criteria, which was used to determine an executive’s total compensation for the year. The Company performance goals and criteria are based on the Company’s strategic and operational business plan. Our compensation program places significant emphasis on pay for performance against these annually established performance goals. Further, the Board established for the CEO, and the CEO established for each executive officer, other than himself, individual goals and objectives throughout the year as business needs dictated which the Compensation Committee then reviewed. Based on the executive’s individual performance for the year against these individual performance goals, his supervisor or the Board determined an appropriate base salary within a base salary range designated for such executive’s positionNamed Executive Officers based on a numbermarket analysis prepared by management and reviewed by the Committee’s independent compensation consultant, and determined that no adjustments

would be made for 2014. Base salaries for Messrs. Legere, Carter and Sievert were established prior to the Business Combination through negotiated employment agreements or term sheet and Mr. King’s base salary was set at the time of factors outlined in “Base Salary” below, which salary range was targeted to be centered around the market median for base salary. An executive’s individual performance rating also was used to determine the amount paid in connection with the individual component of his annual cashhire.

 

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performance award. If an executive officer exceeded his individual goals, he could be compensated up to twiceThe following table shows the target payment amount for the individual component, and for performance which met his individual goals, he could be paid an amount in a range centered on the target payment amount for the individual component, and for performance under his individual goals, he could be paid nothing. Along with various other factors noted in “Long-term Equity Incentive Compensation” below, an executive’s individual performance rating for the prior year also was used to determine the amount of an executive’s annual long-term equity incentive award. Such annual long-term equity incentive award was targeted at median of market for performance that met an executive’s individual goals and up to an award at the 90th percentile level for exceptional performance. Although in all established programs setting forth compensation philosophy, objectives and guidelines, the actual resulting compensation realized by an executive from year to year remains subject to varying factors that could result in a shift, either up or down, in the resulting compensation to such employees, including the NEOs. In addition to other relevant factors that the Compensation Committee reviews in its assessment and approval of compensation each year, such as seeking to balance executive compensation among all the executive management team based on the resulting compensation for the year, some of these factors, such as current market fluctuations, economic conditions, industry trends, increased competition and future regulatory rulings or changes in regulation, are outside the control of the Company and our executives. Since 2009 the Company has utilized at the Compensation Committee’s request a Shareholder Value Transfer methodology, or SVT, whereby the Company reserves approximately 1.5% of average outstanding shares (the “equity pool”) for annual equity grants, new hire and promotion equity grants and any off-cycle equity grants approved by the Board for all employees, including all officers (including the NEO’s), directors, employees and new hires. Further, the Compensation Committee established a goal of granting the equity pool of the Company to all employees with only up to 30% being awarded to the four highest compensated NEOs. While the Compensation Committee can depart from these targets, and has done so in some instances, these targets can cause the total compensation to vary widely from year to year based on the price of the Company’s common stock. We believe that our pay philosophy provides the necessary balance and focus for the Company and its executives and incentivizes and rewards the executives if the Company grows and succeeds as measured against its strategic, operational and financial plans, while at the same time providing a balanced competitive compensation package.

Based in part on this process and the recommendations from our Chief Executive Officer and other considerations discussed below, the Compensation Committee reviews and recommends to the Board the annual total compensation package of our executive officers. The Compensation Committee evaluates our Chief Executive Officer’s performance in light of the compensation goals and objectives established for the Chief Executive Officer. The Compensation Committee also reviews the annual performance of each officer related to the Chief Executive Officer and considers the recommendations of the related person’s direct supervisor with respect to their individual performance rating, their base salary, targets for and payments under our annual cash performance awards, and grants of long-term equity incentive awards. The Compensation Committee reviews and approves these recommendations with modifications as deemed appropriate by the Compensation Committee. Based on its evaluation, the Compensation Committee recommends to our Board the performance rating for such executive officer’s base salary, annual cash performance and long-term equity incentive awards for each executive officer and the amount of the individual performance component for the prior year’s annual cash performance award based on its assessment of their performance of such executives individual performance goals with input from the Compensation Committee’s consultants.

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2012 Total Compensation Mix Analysis

As a result of our corporate philosophy that our compensation program be aligned with stockholders’ interest, a significant portion of our executives’ total compensation is in the form of long-term equity incentive awards. The 2012 compensation mix for the CEO and the other named executive officers is as follows:

LOGO

*Target pay is defined as the midpoint of each executive’s base salary range plus each executive’s target annual cash performance award plus the market 50th percentile long-term incentive award.

For 2012, our Chief Executive Officer received total compensation of approximately $7.04 million, which consisted of a2014 base salary of $0.95 million, long-term equity incentive compensation with a value of approximately $4.60 million, including stock option awards valued as of the grant date using a Black Scholes valuation model, and an annual cash performance award payout of approximately $1.49 million. This is a decrease of $1.90 million, or 22%, from total compensation of approximately $8.94 million from 2011. This decrease reflects a significant decrease in the value of long-term incentive equity awards of 30% over 2011, based on a decline in the per share price from $14.40 per share on the grant date of February 28, 2011 to $9.55 per share on the 2012 grant date, February 7, 2012. Because the number of shares in the equity pool is capped at approximately 1.5% of average shares outstanding each year the value of each individual’s equity grant is highly dependent on the Company’s stock price on the date of grant. Based on our market analysis, the base salary paid to our Chief Executive Officer for 2012 was in line with the market median base salary level for other communications companies of comparable size, total cash compensation was on par with the market median, and the long-term equity incentive award for our Chief Executive Officer for 2012 was on par with the market median percentile.

For 2012, our other four Named Executive Officers, as a group, received total compensation of approximately $9.33 million, which consisted of base pay of $1.87 million, long-term equity incentive compensation with a value of approximately $5.80 million, including stock option awards valued as of the grant date using a Black Scholes valuation model, and annual cash performance compensation of approximately

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$1.66 million. This reflects a decrease of $2.44 million, or 21%, from total compensation of approximately $11.77 million for 2011, which consisted of base salaries of $1.77 million, long-term equity incentive compensation with a value of approximately $8.30 million, and annual cash performance awards of approximately $1.70 million. Just like the CEO, the value of the equity of the other NEOs was lower in 2012 than 2011 because of the decline in the per share price of our common stock between the 2011 grant date and the 2012 grant date. The total compensation and elements thereof paid to each of our other Named Executive Officers during 2012 is set forth below in the 2012 Summary Compensation Table and the table entitled “2012 Grants of Plan-Based Awards.” See “Summary of Compensation – 2012 Summary Compensation Table and 2012 Grants of Plan-Based Awards.”

In addition, the base salary of the Chief Executive Officer was approximately 1.6 times the next highest paid named executive officer and the total cash compensation was approximately 2.1 times.

We also believe that our executive compensation meets our compensation philosophy of having a market-competitive pay package which is targeted at market median and pays out up to the 90th percentile for exceptional performance. Based against our peer group of companies, our 2012 executive compensation is as follows:

   Target Compensation compared against Market 50th Percentile  (Median) 
   Peer Group Median
Base Salary
  Peer Group Median
Total Annual Cash Compensation (1)
  Peer Group Median
Total Direct Compensation (2)
 

CEO

     (4)%   (0.8)% 

Other 4 NEO’s

   (2.3)%   (1)%   1

(1)Base Salary plus payouts of annual cash performance awards.

(2)Total Cash Compensation plus Black Scholes value of options granted in 2012 plus market value of restricted stock granted in 2012.

Our Executive Compensation Program

Overview of Elements of Our Executive Compensation Program

The elements of our executive compensation program are summarized in the table below, followed by a more detailed discussion of each element of our executive compensation program.Officer.

 

OfficerBase Salary ($)

ElementJohn J. Legere

  1,250,000

CharacteristicsJ. Braxton Carter

  

Purpose

650,000
Base salary

G. Michael Sievert

  Fixed annual cash compensation; all executives are eligible for periodic increases in base salary based on individual performance; targeted at the median market pay level of companies of comparable size in the communications industry.550,000

James C. Alling

  Attract and retain executives by keeping our annual compensation competitive with the market for the skills and experience necessary to meet the requirements of the executive’s role with us.600,000

Gary A. King

500,000

 

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Element26

  

Characteristics

Purpose

Annual cash performance awardsPerformance-based annual cash compensation earned based on Company/Team performance criteria against target performance levels based on the Company’s annual business plan and individual performance goals; targeted at median market pay levels with the potential for paying above the market median to a maximum of 200% of target for outstanding achievement and 0% of target for failure to meet the target objectives.Motivate and reward for the achievement and over-performance of our critical financial, operational and strategic goals as well as individual performance goals. Amounts earned for achievement of target Company performance levels based on our annual budget approved by the Board is designed to provide a market-competitive pay package at market median pay levels and at above market median for outstanding performance achievement; potential for lesser or greater amounts are intended to motivate participants to achieve or exceed our financial and other performance goals with no reward earned if performance goals are not met.
Long-term equity incentive awards (stock options and restricted stock)Long-term equity awards are generally granted with time based vesting with one-half of the value of such award in stock options which have value to the extent that the price of our common stock increases over time and one-half of the value in restricted stock granted at the full value; and targeted pay levels are awarded at the 50th percentile with the potential for above market grant up to the 90th percentile of market for exceptional performance.Align interest of management with stockholders; motivate and reward management to increase the value of the Company stock over the long-term; attract and retain employees through the grant of full value restricted stock. Time-based vesting of stock options and restricted stock based on continued employment facilitates retention; amount realized from exercise of stock options awards and restricted stock ownership increased stockholder value of the Company. Reward employees for Company and individual performance.
Retirement savings opportunityTax-deferred plan in which all employees can choose to defer compensation for retirement. Beginning January 1, 2009, we provided a 25% match on the first 4% of eligible compensation. Beginning on January 1, 2013, we began providing a 50% match on the first 4% of eligible compensation. We do not allow employees to invest these savings in our common stock.Provide employees the opportunity and the incentive to save for their retirement. Account balances are affected by contributions and investment decisions made by the employee.
Health & welfare benefitsFixed component. The same/comparable health & welfare benefits (medical, dental, vision, disability insurance and life insurance) are available to all full-time employees.Provides benefits to meet the health and welfare needs of employees and their families.


EXECUTIVE COMPENSATION

Annual Short-Term Incentives

 

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Base Salary

Our executive officers are eligible for annual cash-based short-term incentives under the 2013 Omnibus Incentive Plan. The Compensation Committee sets the values of the short-term incentive award opportunities as a percentage of an executive’s base salary. These award opportunities are established at threshold, target and maximum levels. The maximum level for each metric is capped at 200% of target. The 2014 short-term incentive plan (the “2014 STIP”) awards for executive officers, including the Named Executive Officers, were based entirely on Company performance, which was measured by: Total Service Revenue, Branded Net Adds, Adjusted

EBITDA, and Operating Free Cash Flow. Adjusted EBITDA and Operating Free Cash Flow are assigned to pay grades determined by comparing position-specific duties and responsibilitiesnon-GAAP measures. Please see Appendix B for more information. These measures were aligned with the market pay data and the Company’s internal structure. Each pay grade has a salary range with corresponding annual cash performance award and long-term equity incentive award opportunities, which is based on market pay and other factors. When establishing the base salary of any executive officer, we also consider business requirements for certain skills, individual experience and contributions, the roles and responsibilities of the executive, the pay of other executive officers, and other factors. We believe this is a reasonable and flexible approach to achieving theoperational objectives of the executive compensation programCompany’s business. A minimum threshold had to be achieved on at least one of appropriately determining the paymetrics to generate awards. If none of our executives based on their skills, experience, and performance.

Based on its review of competitive market data, including peer group data, internal comparators among the officer positions, and other information management recommendsminimum performance thresholds had been achieved, no awards would have been paid. If the minimum threshold for any metric was achieved, then the results were applied to the Compensation Committee a salaryparticipants’ target centered aroundawards.

Metric Weight  

Minimum
Performance

(In millions)

  

Target
Performance

(In millions)

  

Maximum
Performance

(In millions)

  

Actual
Performance

(In millions)

 
Total Service Revenue  30%   $21,003   $21,866   $22,441   $22,375  
Branded Net Adds  30%    1.02    2.64    3.66    6.13  
Adjusted EBITDA  20%   $5,520   $6,000   $6,320   $5,636  
Operating Free Cash Flow  20%   $926   $1,226   $1,376   $1,298  

Overall performance under the median market amount. 2014 STIP was achieved at 155% of target. The following table shows the payouts under the 2014 STIP of each Named Executive Officer.

Officer Base Salary ($)  Target 2014
STIP Percent
(as a % of Base
Salary)
  Target 2014
STIP Value ($)
  

Company

Attainment

  

Total 2014 STIP

Payout Value ($)

 
John J. Legere  1,250,000    120%    1,500,000    155%    2,325,000  
J. Braxton Carter  650,000    100%    650,000    155%    1,007,500  
G. Michael Sievert  550,000    85%    467,500    155%    724,625  
James C. Alling  600,000    100%    600,000    155%    930,000  
Gary A. King(1)  488,462    75%    366,346    155%    567,837  
(1)

Reflects actual earnings for 2014. Mr. King’s annualized 2014 base salary was $500,000.

Long-Term Incentives

We believe it is important that we target paying our executives at the minimum of the target base salary range for the given position and, based on the executive’s performance rating, skills and experience in his role, accelerate or increase his base salary to the median of the range over time. Once the median of his base salary is reached, increases in the base salary will moderate depending on his individual performance through to the maximum of the range amount. The annual performance reviews ofgrant our executive officers are considered bylong-term incentive compensation in the Compensation Committee when making decisions on setting base salary. As noted we considerform of performance-based RSUs and time-based RSUs under the executive officer’s current base salary in relation to midpoint pay levels so that for the same individual performance, an executive officer2013 Omnibus Incentive Plan.

In connection with the same performance generally will receive larger increases when below market medianBusiness Combination, the Company granted a one-time “Founders Grant” designed to give executives and smaller increases whenemployees at or aboveall levels an ownership stake in the market median. In determining appropriate compensation levels for our executive officers, including our Named Executive Officers, we annually review, among other things, changes (if any) in market pay levels, the contributions made orCompany and to be made by the executive officer, the performance of the executive officer, the increases or decreases in responsibilities and roles of the executive officer, the business needs for the executive officer, the marketability of managerial skills, the relevance of the executive officer’s experience to other potential employers, the executive’s salary in relationship to the minimum of his salary range and the pay of other executive officers, and the readiness of the executive officer to assume a more significant rolealign their interests with another organization.

Our Compensation Committee meets outside the presence of allthose of our executive officers, includingstockholders. For retention and incentive purposes, the Founders Grant made in June 2013 to the Named Executive Officers had longer vesting periods for time-based RSUs and a higher target value than were anticipated for future annual equity grants and was in lieu of the 2014 annual grant. It was contemplated at the time, however, that targeted interim supplemental equity awards may be made in 2014 to consider appropriate compensation for our Chief Executive Officer. For all otherretain high-performing leaders, reward exceptional performance or recognize expanded responsibility.

The following supplemental equity awards were granted to Named Executive Officers thein 2014.

Mr. Legere.     To reward exceptional performance and incentivize continued strong performance, Mr. Legere received a performance-based RSU award in December 2014 with a target value of $12

million, of which $4 million is based on achievement of an operating free cash flow goal (the “OFCF RSUs”) and $8 million is based on Relative TSR (the “RTSR RSUs”).

The OFCF RSUs may be earned based on achievement of an operating free cash flow goal over a measurement period from January 1, 2015 through December 31, 2015, and may be earned from 0% to 200% of target based on attainment of threshold, target and maximum performance. Any earned RSUs will be subject to time-vesting based on continued service through December 31, 2016. The Compensation Committee meets outsideselected operating free cash flow because it provides a direct correlation between potential payouts and the presence of all executive officers except our Chief Executive Officer, Senior Vice President of Human Resources and Vice Chairman, General Counsel and Secretary, each of whom recuses himself when the Compensation Committee discusses his compensation.Company’s 2015 focus on balancing growth with profitability.

The base salaries paid to our Named Executive Officers are set forth in the 2012 Summary Compensation Table. For the fiscal year ended December 31, 2012, cumulative base salary paid in cash compensation to our Named Executive Officers was approximately $2.82 million, with our Chief Executive Officer receiving approximately $0.95 million, or approximately 33.6%, of that amount. The base salary of our CEO increased 8.6% over 2011 and the other three most highly compensated NEO’s increased 5.4% effective as of February 11, 2012. We believe these increases are warranted given our performance. The base salaries for our NEO’s which have been in their current position for several years is near the mid-point of the salary range and near the market median. We believe that the base salaries paid to our executive officers during 2012 achieve our executive compensation objectives, compare favorably to market pay levels and are within our target of providing a base salary near the market median, and achieving the objective of having a significant portion of each Named Executive Officer’s salary based on Company and individual performance.

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Annual Cash Performance Awards

Our executive compensation program emphasizes pay for performance. We believe that a substantial portion of each executive officer’s compensation shouldRTSR RSUs may be in performance-based pay. Annual cash performance awards are granted and earned under the MetroPCS Communications, Inc. 2010 Equity Incentive Compensation Plan, or 2010 Plan. Awards earned under the 2010 Plan are based on performance criteria that are aligned with our business strategy, operational goals, and financial plan and are recommended by the Compensation Committee and approved by the Board near the beginning of each year. We believe the annual cash performance awards granted under our 2010 Plan to our Named Executive Officers help focus their efforts on the Company’s objectives and goals and reward the Named Executive Officers for annual operating results that help create value for our stockholders.

Performance is measured based on the relative performance of the Company’s TSR compared to the TSR of companies that constitute our peer group over a measurement period from January 1, 2015 through December 31, 2016. The Compensation Committee selected relative TSR because it provides a direct correlation between potential payouts and future stock performance, delivering strong objective alignment between Mr. Legere and our stockholders.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement27


EXECUTIVE COMPENSATION

RTSR RSU achievement can range from 0% to 200% of specific, measurable Company/Team criteriatarget based on relative performance and goals establishedis determined by our Boardmultiplying the target number of performance-based RSUs by an adjustment percentage based on the TSR percentile performance of the Company relative to our Board approved annual business plan, operational and strategic goals and individual performance goals set by an executive’s supervisor or, in the case of our Chief Executive Officer, the Board. The Company/Team performance goals and individual performance goals are established near the beginning of each fiscal year so that target attainment is not assured. The executive’s supervisor, or the Board for our Chief Executive Officer, determines the individual performance component of the annual cash performance award within the guidelines established by the Company’s review process and performance rating system. The attainment of payment for performance at the target level or above is not assured, will require strong company performance and significant effort on the part of our executive officers. In order to emphasize the importance of our annual cash performance award plan, we provide the opportunity for individual executive officers who exceed targeted performance levels to receive total cash compensation above the median of market pay levels.

Specifically, target incentive opportunitiespeer group, as a percentage of base compensation for the annual cash performance award are set to achieve payments near the market median, assuming our target business objectives are achieved. If the target level for the performance goals is exceeded, executives have an opportunity to earn maximum cash payment up to twice (or 200%) of the target amount. If the target values for the performance criteria are not achieved, executives may earn less or no award payments under the annual cash performance award program. The target values for the Company/Team performance criteria used in our annual cash performance awards are determined through our annual planning process, which generally begins in October before the beginning of our fiscal year and the individual performance measures for the individual component are set by the Board for the CEO and by the CEO for the other four NEOs. The minimum and maximum values for the Company performance metrics used to pay annual cash performance awards are based on a range centered on the budgeted value. If performance is less than the bottom of the range, no payments are made with respect to that performance metric and if performance is at or greater than the top of the range, the payout on such metric is capped at 200%. Payouts against the metrics are calculated on a straight line between the bottom of the range and the top of the range. The Compensation Committee believes that having a range centered on the budgeted value and capping the payout at the top of the range prevents the Named Executive Officers from engaging in behavior which would be against the Company’s financial, operational and strategic goals because over performance on a metric is capped at 200%. Having no payout for results below the bottom of the range ensures a minimum level of performance has been met before there is any award on that metric. A business plan which contains annual financial, operational and strategic objectives is developed each year by management, reviewed and recommended by our Finance and Planning Committee, presented to our Board with such changes that are deemed appropriate by the Finance and Planning Committee, and is ultimately reviewed and approved by the independent directors on our Board with such changes that are deemed appropriate by the Board. The business plan objectives include our budgeted results for the annual cash performance award measures and include all of our performance criteria. The structure of the annual cash performance award program along with the weighting of each performance metric and the ratio of the Company/Team performance versus individual performance is reviewed by the Compensation Committee during the first quarter of the plan year to ensure that incentive opportunities are properly aligned with the overall business plan, operational objectives and the strategy of the Company and are presented to the independent directors on our Board for their approval.

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Payment under the annual cash performance awards are determined at year-end based on our performance against the previously Board approved annual cash performance award performance criteria. The Compensation Committee also exercises discretion in adjusting awards based on its consideration of each executive officer’s individual performance against his established individual performance goals and, for each executive officer other than the Chief Executive Officer, based on the annual performance review of such executive as communicated to the Compensation Committee by the Chief Executive Officer, and our overall performance during the year. The payments under the annual cash performance award for all executive officers, including the Named Executive Officers, are reviewed and recommended by our Compensation Committee for approval and ultimately are approved by the independent directors of our Board before being paid.

An executive officer’s annual cash performance award payout is calculated based on the following formula:follows:

 

RTSR Percentile Ranking Company/Team payout portionAdjustment
Percentage
Below 25th percentile  +0%
25th percentile  Individual payout  portion25%

Annual Cash Performance Award Payout =

Base Salary x set performance award target % x Company’s performance against its goals x 70%50th percentile  +100%
75th percentile  Base Salary x set performance award target % x executive’s achievement of individual performance goals x 30%125%
100th percentile200%

Example:

 

Executive’s base salary was $500,000The Adjustment Percentage will be interpolated on a linear basis, except that the Adjustment Percentage will equal 0% for a ranking below the 25th percentile.

Mr. Sievert.     To recognize his role and he wasimpact in transforming the Company under the Un-carrier initiatives, and to bring his position forlong-term incentive value to a level consistent with our other comparable executive officers, Mr. Sievert received a time-based RSU award in June 2014 with a target value of $1 million, which vests in three equal annual installments beginning on June 5, 2015.

Mr. King.    Mr. King joined the entireCompany in December 2013 as Executive Vice President and Chief Information Officer. As part of his new hire compensation package, Mr. King received (i) a 2014 time-based RSU award with a target value of $546,875, which vests over a three year period beginning on February 25, 2015 and (ii) a 2014 performance-based RSU award with a target value of $546,875, which has the same performance periods and measures as the Founders Grant.

 

Performance target award %Perquisites

We generally do not have perquisites for his level of employment is set at 75%

Company performance goal results are 110%

Individual executive’s performance rating of excellent results in a corresponding 125% individual payout

Company/Team Performance Payout Portion =$500,000 x 75% = $375,000 x 110% = $412,500 x 70% = $288,750
Individual Payout Portion =$500,000 x 75% = $375,000 x 125% = $468,750 x 30% = $140,625
Total Payout =$288,750 + $140,625 = $429,375

Annual Cash Performance Award Criteria

The following table describes the weighting of the individual measures as well as the financial measures used to determine payments toany executive officer, including the Named Executive Officers, for the fiscal year ending December 31, 2012 shown as a percentage of the total payment opportunity:

2012 Performance Award Criteria and Basis

All NEOs

Company/Team performance criteria

70%

Gross Margin

Adjusted EBITDA per average monthly subscriber

Net Subscriber Additions

Capital Expenditures per ending subscriber

Discretionary Component

Individual performance

30%

The criteria above and percentage mix between individual and Company/Team performance criteria have remained the same since at least fiscal year 2009. The Compensation Committee believes that keeping the metrics and the percentage of Company/Team versus individual component the same from year to year fosters predictability and comparisons between fiscal years. Further, keeping the metrics and the percentages the same year over year allows for the Compensation Committee to determine whether the metrics and the percentages are

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appropriate based on analysis from year to year and whether such metrics are achieving the desired results. For example, in 2011, the Company/Team payout percentage was 106.0%, performance slightly above the Company/Team performance metrics. In 2012, however, the same metrics paid out at 84.0%, or significantly less than target, reflecting performance that was below target performance of the Company against the Company/Team metrics. This demonstrates that different levels of Company performance yield different payouts and that the payments under the annual cash performance awards are performance based.

The Company/Team component of the performance criteria above for the annual cash performance award for the executive officers is determined based on the Company’s consolidated results against the performance goals recommended by the Compensation Committee from the Company’s business plan and approved by the independent directors on the Board. For purposes of the annual cash performance award under the 2010 Plan, the following terms are defined or determined as follows:

Gross margin is defined as the Company’s gross revenues less Enhanced 911 revenues, Federal Universal Service Fund revenues and the total cost of equipment;

Adjusted EBITDA per average monthly subscriber is determined by dividing the Company’s Adjusted EBITDA by the sum of the average monthly number of customers during the year;

Net subscriber additions are determined by subtracting the number of customers on our networks at the beginning of the year from the number of customers on our networks at the end of the year;

Capital expenditures per ending subscriber is determined by dividing the total balance of property and equipment and microwave relocation costs at the end of the year by the total number of customers at the end of the year; and

Individual performance goals, such as achievement of strategic objectives and individual goals are set by an individual’s supervisor and demonstration of compliance with our core values.

The performance criteria are designed to create incentives for the executive officers of our Company to grow the Company’s subscribers and revenue while at the same time ensuring that the Company maintains strict cost control and that the Company’s growth is profitable. The measures are also designed to give executive management of the Company the flexibility to respond to changes in market conditions. The measures also are designed to provide checks and balances so that any over-achievement on one performance measurebeyond what all other employees may reduce the level of achievement on another performance measure. The gross margin measure is designed to reflect our strategy of developing new markets, growing top line revenue, and expanding our market share in existing markets. To ensure we efficiently develop and expand our markets, the Adjusted EBITDA per average monthly subscriber measure motivates our executives to manage our costs and to take into account the appropriate level of expenses expected with our growth in number of subscribers. The net subscriber additions measure is designed to incentivize our executives to continue to grow the total number of subscribers of the Company. The capital expenditures per ending subscriber measure is designed to ensure that the appropriate level of investment is being made in our networks consistent with our growth.

As noted above, the Company/Team performance criteria also have a discretionary component which is recommended by the Compensation Committee and approved by the Board at the end of the fiscal year. This component provides the Board with flexibility to consider factorsbe eligible for, other than financial, operational or strategic performance. The discretionary component provides recognition for contributions made to the overall growth or health of the business or other strategic initiatives and is intended to capture how the Company has performed in areas that are not quantified in the major metrics. Historically, the discretionary performance portion of the annual cash performance award has been set at the overall performance of the Company against the other financial/operational measures. For 2012, the discretionary performance portion was set at the overall Company performance level for the named executive officers.

The Compensation Committee and the Board have concluded that the actual targets and the relative weighting of the Company/Team component are confidential and proprietary and that a disclosure of such actual

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targets and relative weightings would cause the Company competitive harm by disclosing confidential and/or proprietary information about the Company’s business, strategies, and operations and would signal the Company’s strategic direction and focus.relocation benefits.

Annual Cash Performance Award Opportunities Under the 2010 Plan

We have developed goals for our performance measures that would result in varying levels of annual cash performance award payments. If these goals are exceeded by a certain percentage, our executive officers have the opportunity to receive a maximum award equal to two times their target award, and if the goals are not achieved, our executive officers receive no payment. The target and maximum award opportunities for 2012 under the 2010 Plan are set based on competitive market pay levels and are shown as a percentage of annual base salary at corresponding levels of performance against our goals as shown in the following table:

2012 Annual Cash Performance Award Payment Level Based on Goal  Achievement

Officer

Minimum Payment

At 100% (Target)

Maximum Payment

Chief Executive Officer

0% of base salary140% of base salary280% of base salary

President and Chief Operating Officer

0% of base salary90% of base salary180% of base salary

Vice Chairman and CFO

0% of base salary80% of base salary160% of base salary

Vice Chairman, General Counsel and Secretary

0% of base salary75% of base salary150% of base salary

Senior Vice President of Human Resources

0% of base salary65% of base salary130% of base salary

The annual cash performance award payments at target as percentage of a NEOs base salary remained the same from 2008 through 2011; however, based on market comparisons, the target percentage amounts approved by the Board for the President and Chief Operating Officer and the Vice Chairman and Chief Financial Officer were each increased by 5% to 90% and 80% of base salary, respectively. This increase was driven by an increase in the percentage of base salary of the peer group and the other market data used by the Company.

2012 Performance

We believe that attainment of payments under our annual cash performance award plan requires strong Company performance. For example, for 2012, in order to achieve a minimum payment under the 2010 Plan on each metric, the Company needed to substantially grow units in service, gross margin, and Adjusted EBITDA, and to manage capital expenditures.

Performance  Year  Company/Team Performance  Criteria Payout
Percentage

2009

  58.7%

2010

  192.9%

2011

  106.0%

2012

  84.0%

The actual payments under our annual cash performance awards made to our Named Executive Officers for the fiscal year ended December 31, 2012 are set forth in the 2012 Summary Compensation Table. The total payouts of the annual cash performance awards as a percentage of the total cash compensation for 2012 for each Named Executive Officer were approximately:

Officer

Annual Cash Performance

Award Payout as a Percentage

(%) of Total Cash Compensation

Chief Executive Officer

61%

President and Chief Operating Officer

50%

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Officer

Annual Cash Performance

Award Payout as a Percentage

(%) of Total Cash Compensation

Vice Chairman and Chief Financial Officer

47%

Vice Chairman, General Counsel and Secretary

46%

Senior Vice President of Human Resources

42%

We believe that the payments under our annual cash performance awards made to our Named Executive Officers for the fiscal year ended December 31, 2012 were appropriately aligned with, and met, our executive compensation objectives.

For 2011, the Company/Team portion of the annual performance award was paid at 106.0% of target whereas with the performance in 2012, the same Company/Team portion was paid at 84.0%. We believe this demonstrates that our annual cash performance awards reflects our pay for performance philosophy as the payments for the 2012 annual cash performance awards for our executive officers were less than those paid in 2011 based on the Company’s lower performance against the Company/Team performance criteria in 2012.

Clawback.    We have a policy for the adjustment or recovery of annual cash performance awards if performance measures upon which they are based are materially restated or otherwise adjusted in a manner that will reduce the size of an award or payment. This policy includes the return by any executive officer of any compensation based upon performance measures that require material restatement which are caused by such executive’s intentional misconduct or misrepresentation.

Long Term Equity Incentive Compensation

Our long-term equity incentive program for 2012 provides for an award consisting of one-half of the value of the award in stock options to acquire our common stock, which requires growth in our common stock price in order for our executive officers to realize any value, and one-half of the value of the award in restricted stock, which will appreciate or decrease in value based on our stock price. This allocation is consistent with the approach we took in 2011. Other types of long-term equity incentive compensation may be considered in the future as our business strategy evolves.

We believe our long-term equity incentive awards align the interests of our executive officers to the interests of the stockholders. We select the amount of the award based on the long-term component of the competitive market data established through the peer group and selected other survey data. Equity incentive awards make up the long-term component of an executive’s total compensation. Annual long-term equity incentive awards are targeted at the median level of market pay practices, with those individual executive officers who exceed targeted performance levels having the opportunity to receive grants above the market median up to, and in certain circumstances, in excess of the 90th percentile level.

An executive’s individual performance determines what level of long-term equity incentive award he will receive. Based on an executive’s individual performance and contributions to our overall performance, the 2012 annual long-term equity incentive awards granted to the Named Executive Officers ranged between just below the median and the 90th percentile. The President and Chief Operating Officer received an award just below the market median based on the Compensation Committee’s recommendation to the Board. See the table entitled “2012 Grants of Plan-Based Awards” for the long-term equity incentive awards granted to the Named Executive Officers for 2012.

The Company utilizes a SVT methodology whereby approximately 1.5% of average outstanding shares are reserved for equity grants for all employees each year (including all officers, employees and new hires). This approach limits the number of shares available for grant to a set number each year and can vary in grant date

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value significantly depending upon the Company stock price on date of grant. For example, our annual awards 2012 grant price was $9.55 versus our annual awards 2011 grant price of $14.40. This 34% decrease was a key driver in the decrease of 2012 long-term equity incentive grant values being lower than 2011 levels.

The Compensation Committee also takes into consideration, among other things, the percentage of equity being awarded to the top four Named Executive Officers in comparison to the aggregate long-term equity incentive award made to all employees, the total dilution as a result of the long-term equity incentive award, and the retention value of existing long-term equity incentive awards.

Like our other pay components, long-term equity incentive awards are determined based on an analysis of competitive market levels. Each year the Compensation Committee works with its compensation consultant to evaluate the competitiveness of the long-term equity incentive structure to ensure that the program remains competitive in the market. Recommendations are reviewed by our Compensation Committee designated consultant, the Compensation Committee, and presented to our Board for approval. In addition, the Compensation Committee evaluates the retention value of existing long-term equity incentive awards and the awards realized by executive officers in prior long-term equity incentive awards. The long-term equity incentive amount is divided by the value of the stock equity award based on a Black Scholes valuation model at the time of grant for stock options and the grant date fair market value for restricted stock.

Long-term equity incentive awards were previously made pursuant to the Second Amended and Restated 1995 Stock Option Plan of MetroPCS, Inc., as amended, or the 1995 Plan. Since late 2005 and thereafter, long-term equity incentive awards were made under the Amended and Restated MetroPCS Communications, Inc. 2004 Equity Compensation Plan, or 2004 Plan, and since May 2011, such awards were made predominately under our 2010 Plan. The 1995 Plan terminated in November 2005 and no further awards can be made under the 1995 Plan, but all unexercised options granted before November 2005 remained outstanding in accordance with their terms. Under the 2004 Plan and 2010 Plan, repricing of awards is only allowable with stockholder approval. During 2011 and 2012, we did not reprice any awards.

Stock options granted under our 2004 Plan and our 2010 Plan have an expiration period of 10 years while options granted under the 1995 Plan have a term of between 10 and 15 years. Long-term equity incentive awards in the form of options are earned on the basis of continued service to us and generally vest over a period of one to four years, and for multi-year awards, generally beginning with one-fourth of the award vesting one year after the date of grant, and the balance pro-rata vesting monthly thereafter. See “Potential Payments upon Termination or Change in Control” below for a discussion of the change in control provisions related to stock options. The exercise price of each stock option granted in 2012 was based on the closing price of our common stock on the NYSE on the date of the grant. Long-term equity incentive awards in the form of restricted stock are valued based on the Company’s closing stock price on the date of grant. The restricted stock generally vests over four years with one quarter vesting on the first anniversary of the grant date of the award of restricted stock and the balance vesting pro-rata monthly or quarterly thereafter. The long-term equity incentive awards vesting schedule is based solely upon continued service by the employee. We believe time based vesting is appropriate since our long-term equity incentive awards vest over a substantial period of time with no vesting occurring in the first year after grant. We believe this approximately links stockholders interests and executive interests without the need for performance-based vesting. See “Potential Payments upon Termination or Change in Control” below for a discussion of the change in control provisions related to restricted stock.

Historically the Board has granted annual long-term equity incentive awards at its regularly scheduled meeting in February or, if no meeting occurs during an open window in February, the date that is two business days following the release of financial and operational results for the fourth quarter of the year. In fiscal year 2012, the Board decided to modify our grant procedure to be more aligned with general market grant practices. Starting in fiscal year 2012 the Board has determined the appropriate practice for our Board is to make our annual long-term equity incentive award grant during their first meeting in February, which occurred on February 7, 2012.

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While the vast majority of equity incentive awards granted to our executive officers have been made pursuant to our annual long-term equity incentive award program or in connection with their hiring or a promotion, the Compensation Committee retains discretion to make long-term equity incentive awards to executive officers at other times, including rewarding executive officers for exceptional performance, for retention purposes or for other circumstances recommended by management or the Compensation Committee.

For accounting purposes, we apply the guidance in ASC 718 (Topic 718, “Compensation – Stock Compensation”), or ASC 718, to record compensation expense for our grants of long-term equity incentive awards. ASC 718 is used to develop the assumptions necessary and the model appropriate to value the awards, as well as the timing of the expense recognition over the requisite service period, generally the vesting period, of the award. See Note 13 of the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012 for a more detailed discussion of these assumptions.

Executive officers recognize taxable income from long-term equity incentive awards in the form of stock options when a vested option is exercised. We generally receive a corresponding tax deduction for compensation expense in the year of exercise subject to any limitation under section 162(m) of the Internal Revenue Code, as amended (the “Code”). For a more detailed discussion of section 162(m) limitations, see “Tax Deductibility of Executive Compensation” below. The amount included in the executive officer’s wages and the amount we may deduct is equal to the common stock price when the stock options from a long-term equity incentive award are exercised, less the exercise price, multiplied by the number of stock options exercised. We do not pay or reimburse any executive officer for any taxes due upon exercise of a stock option or for the taxes due on vesting of restricted stock; however, we do allow all employees and executives to elect to have any taxes due on vesting of restricted stock be paid by the Company withholding restricted stock shares equal to the amount of taxes owed.

Comprehensive Benefits Package

We provide a competitive benefits package to all full-time employees, including the executive officers,Named Executive Officers, that includes health and welfare benefits, such as medical, dental, vision care, disability insurance, life insurance benefits and a 401(k) savings plan.

Perquisites

We have no structured executive perquisite benefits (e.g., club memberships or company vehicles) for any executive officer, including the Named Executive Officers,provide a non-qualified deferred compensation plan under which

eligible participants may defer up to 75% of their base salary and we currently100% of their short-term incentive and long-term cash incentive as well as RSUs. We do not provide any employer matching or discretionary allocations under the non-qualified deferred compensation programs or supplemental pensions to any executive officer, including the Named Executive Officers, except the Company’s 401(k) program and match which are available to all full-time employees. As part of its sponsorship arrangements and otherwise, the Company occasionally is provided tickets to sporting, cultural and other events for use in connection with its business. On occasion, these tickets are provided to employees, including the Named Executive Officers, for personal use. There is no incremental cost associated with such use.plan.

Retirement Savings Opportunity

All full-time employees with at least three months of service may participate in our 401(k) Retirement Savings Plan, or 401(k) Plan. Each employee may make before-tax contributions up to the current Internal Revenue Service limit of $16,500 for 2012. We provide this plan to help our employees save some amount of their cash compensation for retirement in a tax-efficient manner. Beginning as of January 1, 2009, we began providing a 25% match each year of the first 4% of eligible compensation contributed by our employees, including our Named Executive Officers, to a 401(k) account. Beginning January 1, 2013, we increased the amountSeverance and began providing a 50% match each year of the first 4% of eligible compensation contributed by our employees, including our Named Executive Officers, to a 401(k) account. In addition, the 90-day eligibility

-55-


waiting period was eliminated and employees are now eligible to participate in the 401(k) Plan immediately. The plan has a four-year vesting schedule based on years of service with the Company, with 25% vesting each year. For fiscal year ended December 31, 2012, we made an aggregate $1,404,175 discretionary matching contribution to the 401(k) Plan for all employees, including the Named Executive Officers. We do not provide an option for our employees to invest in our Common Stock in the 401(k) Plan and we do not have an employee stock purchase program. Historically, the Company has had to return a portion of contributions made by certain highly paid employees, including certain executive officers and more specifically, Named Executive Officers, to our 401(k) Plan because we did not pass the non-discrimination test, or more specifically, the Average Deferral Percentage test, required by the Internal Revenue Service.

Health and WelfareChange-in-Control Benefits

All full-time employees, including our Named Executive Officers, may participate in our health

We provide severance pay and welfare benefit programs, including medical, dental and vision care coverage, disability insurance and life insurance.

Relocation Benefits

Newly hired or promoted executives may be provided with relocationother benefits if the work location of the executive is more than 50 miles from their current residence or, if currently employed by the Company, their current work location. The executive is not required to return any relocation benefit received if he leaves the Company. For non-executive officers, if the employee leaves during the first year of employment, the employee is obligated to repay the relocation benefits. In 2012, we did not pay any relocation benefits to the Named Executive Officers.

Stock Ownership Guidelines

Prior to the consummation of the Business Combination, we did not require stock ownership for our executive officers or directors nor did the Compensation Committee adopt stock ownership guidelines for our executive officers or directors. A significant portion of the compensation of each executive officer and director is based on long-term equity incentive awards in the form of stock options and restricted stock which vest over a period of four years, which we believe aligns the interests of our executive officers and directors with those of our stockholders and reduces the need for stock ownership requirements or guidelines. The Compensation Committee, however, does review the amount of previous equity awards and the amounts realized from previous equity awards in considering the amount of new equity grants. However, as part of our annual review of our compensation program, we may re-evaluate our position with respect to stock ownership guidelines in the future. Subsequent to the consummation of the Business Combination, the Company adopted stock ownership guidelines for non-employee directors and executive officers. See “Corporate Governance Guidelines and Code of Business Conduct.”

Securities Trading Policy

Our securities trading policy states that executive officers, including the Named Executive Officers, whose employment is terminated, including through involuntary termination by us without cause or due to corporate restructuring, and, employees may not purchase or sell puts or callsin some cases, voluntary termination by the executive for good reason. These arrangements provide security of transition income and benefit replacement that allow such executives to sell or buyfocus on our stock, engage in short salesprospective business priorities that create value for stockholders. We believe the level of severance and benefits provided by these arrangements is consistent with respectthe practices of our peer group and is necessary to

attract and retain key employees. These benefits are provided pursuant to our stock, buy our securities on margin. In addition,Severance Guidelines, Executive Continuity Plan and 2013 Omnibus Incentive Plan and award agreements and, for Messrs. Legere, Carter and Sievert, pursuant to such policy, no employeewritten agreements. These arrangements do not include any gross up for excise taxes imposed as a result of severance or officer, including the NEOs, may engageother payments deemed made in hedging transactions. In addition, our executive officersconnection with a change in control. The potential payments and directorsbenefits available under these arrangements are covered by our insider trading policy and our Code of Ethics, both of which prohibit tradingdiscussed further under “— Potential Payments upon Termination or in our securities whileConnection with a Change in possession of material inside information or outside designated trading windows and the disclosure of material inside information to others that may buy or sell our securities. Our insider trading policy permits employees, including officers, and directors to establish 10b5-1 trading plans.Control.”

Other Matters

 

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Tax Deductibility of Executive CompensationConsiderations

Limitations on deductibility of executive compensation may occur under section

Section 162(m) of the Code which generally limitsdisallows an income tax deduction to public companies for annual compensation in excess of $1 million paid to the tax deductibility of compensation paid by a public company to its principalchief executive officer and the three other most highly compensated named executive officers other than(excluding the principalchief financial officer). Compensation that qualifies as “performance-based” or satisfies another exception is excluded for purposes of calculating the amount of compensation subject to the $1 million

limit. While the Compensation Committee considers tax and accounting consequences in developing and implementing our executive compensation program, the Committee believes it should retain flexibility in awarding compensation to our Named Executive Officers and thus has not adopted a policy that all compensation must be deductible for federal income tax purposes.

28


EXECUTIVE COMPENSATION

Securities Trading Policy

Our insider trading policy prohibits our directors and employees from trading in our securities during certain designated blackout periods and otherwise while they are aware of material non-public information, and from engaging in hedging transactions or

short sales and trading in puts and calls with respect to our securities. The policy also prohibits holding our securities in a margin account or pledging our securities as collateral for a loan.

Clawback Provisions

In 2014, the Compensation Committee adopted a policy of recoupment of compensation in certain circumstances. The policy provides that in the event the Company issues a restatement of its financial statements due to its material noncompliance with financial reporting requirements under U.S. securities laws, the Company will, to the extent permitted by governing law, require reimbursement from current and former executive officers for incentive compensation received at any time during the three-year period preceding the date on which the Company is required to prepare the accounting restatement if a lower payment would have occurred based on the restated results, regardless of whether the executive officer andengaged in misconduct or otherwise caused or contributed to the principal financial officer, to $1 millionrequirement for the restatement. The policy is administered by the

Section 16 Subcommittee, which may consider whether seeking recovery would be in the yearbest interests of the compensation becomes deductible toCompany, including the Company. There is an exception tocosts and benefits of seeking recovery and whether doing so may prejudice the limit on deductibility for performance-based compensation if such compensation meets certain requirements.

A portioninterests of our long-term equity incentivethe Company, including in any related proceeding or investigation. All awards is ingranted under the form of restricted stock that2013 Omnibus Incentive Plan are subject to time-based vestingthe requirements and would not be considered performance-based compensation. We believe this is appropriate since our long-term equity incentive awards vest over a substantial period of time. We believe this appropriately links stockholder interests and our executive officer interests withoutSection 954 of the need for performance-based vesting.

Although deductibilityDodd-Frank Act regarding the recovery of erroneously awarded compensation, is preferred, tax deductibility is not a primary objective of our compensation programs. We believe that achieving our compensation objectives set forth above is more important than the benefit of tax deductibility and we reserve the right to maintain flexibility in how we compensate our executive officers that may result in limiting the deductibility of amounts of compensation from time to time. Further, we also believe on balance the benefits of using time-based vesting outweigh the tax benefits of performance-based vesting. However, as part of our annual review of our compensation programs, we may re-evaluate our position in the relative benefit of tax deductibility and how we compensate our executive officers.

Thewell as any implementing rules and regulations promulgated under Section 162(m) are complicated, however,the Dodd-Frank Act, any policies adopted by the Company to implement such requirements, and subject to changeany other compensation recovery policies that may be adopted from time to time sometimesby the Company.

Stock Ownership Guidelines and Broad-based Stock Ownership

Under our stock ownership guidelines for executive officers, each executive officer is expected to acquire and maintain ownership of our common stock equal in value to a specified multiple of the executive officer’s base salary measured as of May 1, 2013, for executives in office on that date, and as of the date the executive takes office for executives hired after that date. The multiple for our Chief Executive Officer is five times base salary and the multiple for our other executive officers is three times base salary. Each executive officer is expected to meet the ownership guidelines within the later of five years from the date we adopted the policy and the date on which

he or she became an executive officer, and is expected to retain at least 50% of the net shares of common stock acquired through equity awards granted after the Business Combination until the ownership thresholds are met.

We believe that all employees should have a stake in the Company’s performance. Therefore, we implemented a Company-wide annual equity award program. Our Board also approved an Employee Stock Purchase Plan (“ESPP”) to provide employees with retroactive effect.a cost-effective vehicle to purchase stock and we are asking stockholders to approve the ESPP as further described in Proposal 3.

Equity Granting Practices

The Compensation Committee has adopted an equity grant policy pursuant to which the Compensation Committee (or a subcommittee) approves annual grants to executive officers and other members of the executive leadership team at a specified time. In addition to the annual grants, equity awards may be granted on a number of requirements must be met in order for particular compensationquarterly basis to so qualify. As such, there can be no assurance that any compensation awardednew hires. We may also grant supplemental equity

awards from time to time to retain high-performing leaders, reward exceptional performance or paidrecognize expanded responsibility. The Compensation Committee has delegated authority to the Company’s Executive Vice President, Human Resources, subject to certain terms and limitations as established by the Company will be fully deductible under all circumstances.Committee, to make awards to employees who are not Section 16 officers.

Employment Agreements

The Company has historically not entered into employment agreements with its officers, including itsResults of Stockholder Advisory Approval of Named Executive Officers, except for change in control agreements. See “Potential Payments Upon Termination or Change in Control – Change in Control Agreements.”

Officer Compensation

 

-57-At the 2014 Annual Meeting of Stockholders, stockholders were asked to approve, on an advisory basis, the Named Executive Officer compensation for 2013 as reported in the proxy statement. This say-on-pay proposal was approved by over 97% of the shares present and entitled to vote.


EXECUTIVE COMPENSATION

Our 2012 executiveThe Compensation Committee considered the results of the 2014 advisory vote along with stockholder input and other factors discussed in this CD&A and concluded that no changes to our compensation policies and practices pursuantwere warranted in response to which the compensation set forth below instockholder advisory vote.

Compensation Committee Report

The Compensation Committee has reviewed and discussed the 2012 Summary Compensation Table and the 2012 Grants of Plan-Based Awards Table was paid or awarded, are described above under “Compensation Discussion and Analysis.” Information regarding our Compensation Committee InterlocksAnalysis with Company management. Based on such review and Insider Participation as well asdiscussion, the Compensation Committee Report is describedrecommended to the Board of Directors that the Compensation Discussion and Analysis be included under “Boardin the Company’s Proxy Statement and Board Committees.” incorporated by reference into the 2014 Form 10-K.

The Compensation Committee:

Teresa A. Taylor, Chair

W. Michael Barnes

Thomas Dannenfeldt

Lawrence H. Guffey

Raphael Kübler

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement29


EXECUTIVE COMPENSATION

Executive Compensation Tables

2014 Summary Compensation Table

The following table sets forth certain information with respect to compensation for the years ended December 31, 2012, 20112014, 2013 and 20102012 earned by or paid to our Chief Executive Officer, our Chief Financial Officer and our three other most highly compensatedhighly-compensated executive officers who were serving as executive officers at the end of 2012, who are referred to as the Named Executive Officers. The amounts presented in this table and the tables that follow do not reflect the reverse stock split or cash payments effected in accordance with the Business Combination.

2012 Summary Compensation Table2014.

 

Name and Principal Position Year  

Salary

($)

  

Bonus

($)

  

Stock
Awards (1)

($)

  

Option
Awards 

($)

  

Non-Equity
Incentive Plan
Compensation (2)

($)

  

All Other
Compensation

($)

  

Total

($)

 
John J. Legere  2014    1,250,000        10,658,668        6,658,333        18,567,001  

President and Chief

Executive Officer

  2013    1,250,000    525,000    22,500,050        4,833,333    137,325    29,245,708  
        
J. Braxton Carter  2014    650,000                1,424,167    10,400(3)   2,084,567  

Executive Vice President and

Chief Financial Officer

  2013    605,426        9,493,794    931,855    1,701,747    99,997    12,832,819  
  2012    538,000        907,250    1,042,879    481,700    2,500    2,972,329  
G. Michael Sievert(4)  2014    550,000        1,022,919        1,063,792    10,400(3)   2,647,111  

Chief Operating Officer

        
James C. Alling (5)  2014    600,000                2,056,667    10,400(3)   2,667,067  

Former Executive Vice President and

Chief Operating Officer, T-Mobile Business

  2013    630,769    1,400,000    6,323,980        2,604,871    10,423    10,970,043  
Gary A. King (6)  2014    488,462    300,000(7)   1,432,725        567,837    23,623(8)   2,812,647  

Executive Vice President and Chief Information Officer

        
                                
(1)

Name & Principal Position

YearSalaryStock Awards
(6)
Option
Awards
(6)
Non-Equity
Incentive Plan
Compensation
(7)
All Other
Compensation
(8)
Total

Roger D. Linquist (1) CEO


2012

2011

2010


$

$

$

 946,346

871,608

804,470


$

$

$

 2,101,000

3,168,000

1,560,650


$

$

$

 2,473,806

3,336,216

1,816,676


$

$

$

 1,488,100

1,560,900

2,119,400


$

$

$

 2,500

2,450

2,975


$

$

$

 7,011,752

8,939,174

6,304,171


Thomas C. Keys (2)
President and COO


2012

2011

2010


$

$

$

584,746

554,688

513,711


$

$

$

955,000

1,440,000

1,401,400


$

$

$

1,115,638

1,504,568

798,711


$

$

$

589,000

602,900

821,700


$

$

$

2,500

2,450

2,450


$

$

$

3,246,884

4,104,606

3,537,972


J. Braxton Carter (3)
Vice Chairman/CFO


2012

2011

2010


$

$

$

538,000

510,299

472,615


$

$

$

907,250

1,296,000

700,700


$

$

$

1,042,879

1,373,736

422,847


$

$

$

481,700

489,400

667,000


$

$

$

2,500

2,450

2,184


$

$

$

2,972,329

3,671,885

2,265,346


Mark A. Stachiw (4)
Vice Chairman/General Counsel and Secretary


2012

2011

2010


$

$

$

438,565

416,061

385,288


$

$

$

525,250

792,000

445,900


$

$

$

630,578

850,408

266,237


$

$

$

368,100

399,000

543,800


$

$

$

2,500

2,450

2,450


$

$

$

1,964,993

2,459,919

1,643,675


Dennis T. Currier (5)
SVP of Human Resources


2012

2011

2010


$

$

$

308,269

287,043

256,856


$

$

$

286,500

432,000

95,550


$

$

$

339,542

607,802


$

$

$

224,300

209,600

193,300


$

$

$



$

$

$

1,158,611

1,536,445

545,706


(1)Roger D. Linquist resigned as our President in May 2011 and served as our Chief Executive Officer through April 30, 2013, when the Business Combination was consummated.

(2)Thomas C. Keys was appointed as our President in May 2011 and served as our President and Chief Operating Officer through April 30, 2013, when the Business Combination was consummated. Upon consummation of the Business Combination, Mr. Keys was appointed as our Executive Vice President and Chief Operating Officer MetroPCS Business.

(3)J. Braxton Carter was appointed Vice Chairman in May 2011 and served in that role and as our Chief Financial Officer through April 30, 2013, when the Business Combination was consummated. Upon consummation of the Business Combination, Mr. Carter was appointed as our Executive Vice President and continued as our Chief Financial Officer.

(4)Mark A. Stachiw was appointed Vice Chairman in May 2011 and served as our General Counsel and Secretary through April 30, 2013, when the Business Combination was consummated.

(5)Dennis T. Currier was hired in April 2009 and was promoted to Senior Vice President of Human Resources in May 2011. He continued to serve in that position through April 30, 2013, when the Business Combination was consummated.

(6)The value of stock awards and option awards for 2012, 2011 and 2010 is determined using the aggregate grant date fair value computed in accordance with ASC 718.718, excluding the effect of any estimated forfeitures. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be realized by the Named Executive Officer. SeeFor stock awards granted after the Business Combination, see Note 1310 to the Consolidated Financial Statements included in the legacy MetroPCSCompany’s Annual Report on Form 10-K for the year ended December 31, 2012 regarding2014 for a summary of the assumptions underlying valuationwe apply in calculating these amounts. The aggregate grant date fair value includes the probable value of equity awards.

-58-


(7)For 2012, the Companyperformance-based RSUs granted annual cashto Messrs. Legere and King in 2014. The aggregate grant date fair value assuming maximum performance awards to executive officers pursuant to our 2010 Plan. The 2010 Plan provides annual cash performance awards based upon pre-established targetswould be as follows: Mr. Legere, $21,317,336 and maximum payouts approved by the Board at the beginning of each fiscal year. See “Compensation Discussion and Analysis – Our Executive Compensation Program – Annual Cash Performance Awards.” These amounts reflect the actual amount paid to each Named Executive Officer pursuant to annual cash performance awards under the 2010 Plan for the fiscal year ended December 31, 2012.Mr. King, $1,796,258.

 

(8)(2)

Consists of (a) payouts of annual short-term incentive awards and (b) payouts of long-term incentive awards granted under the legacy T-Mobile USA LTIP* (before taking into account any elective deferrals of such compensation). The 2014 payouts are as follows:

Name    T-Mobile 2014 STIP ($)     Legacy T-Mobile USA LTIP ($) 

John J. Legere

     2,325,000       4,333,333  

J. Braxton Carter

     1,007,500       416,667  

G. Michael Sievert

     724,625       339,167  

James C. Alling

     930,000       1,126,667  

Gary A. King

     567,837         
*

The legacy T-Mobile USA Long-Term Incentive Plan (the “legacy T-Mobile USA LTIP”) consisted of cash awards because T-Mobile USA was a wholly-owned subsidiary of Deutsche Telekom at the time the legacy T-Mobile USA LTIP was adopted. Executives received performance awards (with a three-year performance period) based on Company goals. To the extent earned, half of each performance award vested in three equal annual tranches beginning with the end of the first year of the performance period, with the other half of the award cliff vesting at the end of the three-year performance period. In 2014, two cycles of legacy T-Mobile USA LTIP awards were outstanding. As a result of the Business Combination, outstanding awards continue to vest as scheduled with both tranche and cliff portions paying at the end of the respective performance periods, subject to continued employment, with the amount of payment fixed at 100% of target. Final payout of the legacy T-Mobile USA LTIP will occur in February 2016. Non-Equity Incentive Plan Compensation includes amounts deferred at the Named Executive Officer’s election.

(3)

Includes $10,400 in matching contributions to the Company’s 401(k) matching contribution for each NEO that opts to participate.plan.

(4)

Effective February 13, 2015, Mr. Sievert assumed the role of Chief Operating Officer. Previously, Mr. Sievert was the Company’s Executive Vice President and Chief Marketing Officer.

(5)

Mr. Alling resigned from the Company effective March 13, 2015.

(6)

Mr. King became our Executive Vice President and Chief Information Officer in December 2013.

(7)

Consists of a sign-on bonus for Mr. King.

(8)

Includes $14,873 in relocation assistance and $8,750 in matching contributions to the Company’s 401(k) plan.

30


2012EXECUTIVE COMPENSATION

2014 Grants of Plan-Based Awards Table

The following table sets forth certain information with respect to grants of plan-based awards for the year ended December 31, 20122014 to the Named Executive Officers.

 

      Estimated Future Payouts Under
Non-Equity Incentive Plan Awards (2)
  All Other
Stock
Awards:
Number of
Shares of
Stock  or
Units (#)*
  All Other
Option
Awards:
Number  of
Securities
Underlying
Options
(#)*
  Exercise
or Base
Price  of
Option
Awards
($/Share)*
  Grant Date
Fair Value (3)
 

Name

 Grant
Date (1)
  Threshold  Target  Maximum     

Roger D. Linquist

  $    —   $ 1,337,000   $ 2,674,000      
  2/7/2012        510,000   $ 9.55   $ 2,473,806  
  2/7/2012       220,000    $   $2,101,000  

Thomas C. Keys

  $   $529,200   $1,058,400      
  2/7/2012        230,000   $9.55   $1,115,638  
  2/7/2012       100,000    $   $955,000  

J. Braxton Carter

  $   $432,800   $865,600      
  2/7/2012        215,000   $9.55   $1,042,879  
  2/7/2012       95,000    $   $907,250  

Mark A. Stachiw

  $   $330,750   $661,500      
  2/7/2012        130,000   $9.55   $630,578  
  2/7/2012       55,000    $   $525,250  

Dennis T. Currier

  $   $201,500   $403,000      
  2/7/2012        70,000   $9.55   $339,542  
  2/7/2012       30,000    $   $286,500  

Name Type of
Award
 

Grant

Date

  Approval
Date
  

 

Estimated Future Payouts

Under Non-Equity Incentive

Plan Awards

  

 

Estimated Future Payouts

Under Equity Incentive

Plan Awards

  

All

Other
Stock
Awards:
Number

of

Shares

of

Stock

or Units

(#)

  

Grant

Date

Fair

Value

of

Stock

Awards  (3)

($)

 
    

Threshold

($)

  

Target (1)

($)

  Maximum (1)
($)
  

Threshold

(#)

  

Target (2)

(#)

  

Maximum (2)

(#)

   
John J. Legere STIP              1,500,000    3,000,000                      
 PRSU  12/16/2014    12/16/2014                    424,479    848,958        10,658,668  
J. Braxton Carter STIP        650,000    1,300,000                      
G. Michael Sievert STIP        467,500    935,000                      
 RSU  6/5/2014    6/5/2014                            30,544    1,022,919  
James C. Alling STIP        600,000    1,200,000                      
Gary A. King STIP        366,346    732,692                      
 PRSU  2/25/2014    2/12/2014                    17,545    35,090        898,129  
  RSU  2/25/2014    2/12/2014                            17,545    534,596  
(1)The grants dated as

Represents the target and maximum amounts of February 7, 2012 reflect the annual long-term equity incentive awards in the form of stock option grants and restricted stock awards to each Named Executive Officer.

(2)The Company grants annual cash performance awards to executive officers pursuant to our 2010 Plan. The 2010 Plan provides annual cash performance awards based upon pre-established targets and maximum award payouts approved by the Board at the beginning of each fiscal year. Amounts shown are possible payouts under the 2010 Plan for the fiscal year ended December 31, 2012. See “Compensation Discussion and Analysis – Our Executive Compensation Program – Annual Cash Performance Award Opportunities under the 2010 Plan.” The actual amountincentive compensation that might have been paid to each Named Executive Officer pursuant to annual cashfor performance awards under the 2010 Plan2014 STIP. The actual amounts paid for the fiscal year ended December 31, 2012 is set forth2014 are shown in footnote (2) to the 2012 Summary Compensation Table under the column titled “Non-Equity Incentive Plan Compensation.”Compensation” column of the Summary Compensation Table.

 

(3)(2)

Represents the target and maximum number of shares that might be paid to Messrs. Legere and King pursuant to performance-based RSU awards.

(3)

The value of stock awards is determined using the aggregate grant date fair value computed in accordance with ASC 718, excluding the effect of the restricted stock awards and the stock option awards for 2012 is determined using the fair value recognition provisions of ASC 718.any estimated forfeitures. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be realized by the Named Executive Officer. SeeFor stock awards granted after the Business Combination, see Note 1310 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 regarding2014 for a summary of the assumptions underlying valuationwe apply in calculating these amounts.

Employment Arrangements

Employment Agreement with Mr. Legere.    The Company entered into an employment agreement with Mr. Legere effective September 22, 2012 (which was amended on October 23, 2013 and February 25, 2015) providing for his employment as Chief Executive Officer and his appointment to the Board of Directors. The initial term of the agreement ends on September 22, 2017 and automatically extends for successive one-year terms. Either the Company or Mr. Legere may give notice that the term will not be extended. Pursuant to the amendment entered into on February 25, 2015, Mr. Legere is entitled (effective January 1, 2015) to a minimum (i) annual base salary of $1,500,000 (ii) annual incentive plan target award of $3,000,000 (with a maximum award equal to 200% of target) and (iii) annual long-term incentive plan target award of $12,000,000. Previously, Mr. Legere’s employment agreement provided that he would receive a minimum (i) annual base salary of $1,250,000 (ii) annual incentive plan target award of $1,500,000 (with a maximum award equal to 200% of target) and (iii) annual long-term incentive plan target award of $6,000,000.

Term Sheet with Mr. Carter.    Effective May 1, 2013, Mr. Carter entered into a term sheet with the Company that provides

for an annual base salary of $650,000 and eligibility to receive an annual bonus for 2014 equal to 100% of base salary and a long-term incentive award for 2014 with a target value of 250% of total target cash compensation.

Term Sheet with Mr. Sievert.    Effective January 1, 2015, the Company entered into a term sheet pursuant to which Mr. Sievert will receive an (i) annual base salary of $800,000, (ii) annual incentive plan target of 100% of his base salary and (iii) an annual long-term incentive plan target of 250% of his total target cash compensation. Previously, Mr. Sievert had a term sheet stating that he would receive an (i) annual base salary of $550,000, (ii) annual incentive plan target of 85% of his base salary and (iii) an annual long-term incentive plan target of 200% of his total target cash compensation.

See “— Potential Payments upon Termination or in Connection with a Change in Control.” for information regarding payments payable upon termination of employment of the Named Executive Officers.

Cash and Incentive Compensation

Non-Equity Incentive Plan Awards.    The Summary Compensation Table includes payments received under the 2014 STIP, as well as payments under the legacy T-Mobile USA LTIP that were paid at 100% of target with respect to performance periods ended in 2013 and 2014. For Mr. Carter, the Summary Compensation Table also includes payments under the legacy MetroPCS short-term incentive plan for 2013. The 2014 Grants of Plan-Based Awards Table includes awards granted under the 2014 STIP.

Equity Incentive Plan Awards.    Mr. Legere received a performance-based RSU award in 2014 that vests one-third based

on achievement of an Operating Free Cash Flow goal over a measurement period ending December 31, 2015 and further time vesting based on continued service through December 31, 2016, and two-thirds based on the relative performance of the Company’s TSR compared to that of the peer group over a measurement period ending on December 31, 2016. Mr. Sievert received an RSU award in 2014 that vests in three annual installments beginning one year after the date of grant. See “— Long-Term Incentives” above.

T-Mobile      Notice of equity awards.2015 Annual Meeting and Proxy Statement31


EXECUTIVE COMPENSATION

 

-59-


Outstanding Equity Awards at 20122014 Fiscal Year-End Table

The following table sets forth certain information with respect to all outstanding equity awards held by the Named Executive Officers as of December 31, 2012.2014.

 

   Option Awards   Stock Awards 

Name

 Number of
Securities
Underlying
Unexercised
Options (#)
     Exercisable (1)    
   Number of
Securities
Underlying
Unexercised
Options (#)
   Unexercisable (1)  
  Option
Exercise
Price
   Option
Expiration
Date
   Number of
Shares or
Units of Stock
That Have Not
Vested (#)
   Market Value
of Shares or
Units of Stock
That Have  Not
Vested ($)(2)
 

Roger D. Linquist

  445,955 (3)       —    $7.13     8/3/2015     15,313 (14)    $152,211  
  2,418 (4)       —    $7.15     12/30/2015     76,563 (18)    $761,036  
  513,900 (7)       —    $7.15     3/14/2016     123,750 (20)    $1,230,075  
  2,250,000 (8)       —    $11.33     12/22/2016     220,000 (23)    $2,186,800  
  1,149,000 (10)     —    $23.00     4/18/2017         $  
  1,245,000 (12)     —    $16.20     3/7/2018         $  
  534,375 (13)     35,625 (13)  $14.43     3/4/2019         $  
  398,750 (17)     181,250 (17)  $6.37     3/4/2020         $  
  233,750 (19)     276,250 (19)  $14.40     2/28/2021         $  
      —     510,000 (22)  $9.55     2/7/2022         $  

Thomas C. Keys

  177,750 (10)     —    $23.00     4/18/2017     7,813 (14)    $77,661  
  400,000 (11)     —    $31.76     8/8/2017     68,750 (18)    $683,375  
  565,120 (12)     —    $16.20     3/7/2018     56,250 (20)    $559,125  
  276,562 (13)     18,438 (13)  $14.43     3/4/2019     100,000 (23)    $994,000  
  111,562 (17)     79,688 (17)  $6.37     3/4/2020         $  
  105,416 (19)     124,584 (19)  $14.40     2/28/2021         $  
      —     230,000 (22)  $9.55     2/7/2022         $  

J. Braxton Carter

  94,600 (9)       —    $11.33     12/22/2016     4,688 (14)    $46,599  
  291,000 (10)     —    $23.00     4/18/2017     34,375 (18)    $341,688  
  250,000 (12)     —    $16.20     3/7/2018     50,625 (20)    $503,213  
  168,750 (13)     11,250 (13)  $14.43     3/4/2019     95,000 (23)    $944,300  
  50,812 (17)     42,188 (17)  $6.37     3/4/2020         $  
  96,250 (19)     113,750 (19)  $14.40     2/28/2021         $  
      —     215,000 (22)  $9.55     2/7/2022         $  

Mark A. Stachiw

  120,000 (5)       —    $5.47     12/28/2015     3,125 (14)    $31,063  
  87,216 (6)       —    $7.15     9/21/2015     21,875 (18)    $217,438  
  60,000 (7)       —    $7.15     3/14/2016     30,938 (20)    $307,524  
  18,900 (7)       —    $7.15     3/14/2016     55,000 (23)    $546,700  
  89,225 (9)       —    $11.33     12/22/2016         $  
  207,000 (10)     —    $23.00     4/18/2017         $  
  42,396 (12)     —    $16.20     3/7/2018         $  
  45,521 (13)     7,188 (13)  $14.43     3/4/2019         $  
  58,437 (17)     26,563 (17)  $6.37     3/4/2020         $  
  59,583 (19)     70,417 (19)  $14.40     2/28/2021         $  
      —     130,000 (22)  $9.55     2/7/2022         $  

Dennis T. Currier

  44,791 (15)     5,209 (15)  $17.13     5/12/2019     2,084 (16)    $20,715  
  32,083 (19)     37,917 (19)  $14.40     2/28/2021     4,688 (18)    $46,599  
  7,916 (21)     12,084 (21)  $18.10     5/12/2021     16,875 (20)    $167,738  
      —     70,000 (22)  $9.55     2/7/2022     30,000 (23)    $298,200  
       Option Awards  Stock Awards 
Name Type    Number of
Securities
Underlying
Unexercised
Options
  

Number of
Securities
Underlying

Unexercised
Options

  Option
Exercise
  Option  Value of
Unexercised
In-the-
Money
Options/
SARs at
Fiscal
  

Number

of

Shares

or Units

of Stock

That

Have
Not

  Market
Value of
Shares or
Units of
Stock That
Have Not
  

Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other

Rights

That Have

Not

  

Equity
Incentive
Plan Awards:
Market or
Payout Value

of Unearned
Shares,
Units or
Other Rights

That Have

 
 of
Award
 

Grant

Date

  

Exercisable

 (#)

  

Unexercisable

 (#)

  

Price

 ($)

  Expiration
Date
  

Year-End

 ($) (6)

  

Vested

 (#)

  

Vested

 ($) (7)

  

Vested

 (#)

  

Not Vested

 ($) (7)

 
John J. Legere PRSU  12/16/2014 (1)                                282,986    7,623,643  
 PRSU  12/16/2014 (2)                                141,493    3,811,821  
 PRSU  6/10/2013 (3)                                453,996    12,230,652  
 RSU  6/10/2013 (4)                        272,398    7,338,402          
J. Braxton Carter PRSU  6/10/2013 (3)                                147,549    3,974,970  
 RSU  6/10/2013 (4)                        147,549    3,974,970          
 Option  2/5/2013 (5)    95,000        11.49    2/5/2023    1,467,750                  
 Option  2/7/2012 (5)    54,000        11.01    2/7/2022    860,220                  
 Option  2/28/2011 (5)    105,000        20.71    2/28/2021    654,150                  
 Option  3/4/2009 (5)    90,000        20.77    3/4/2019    555,300                  
 Option  3/7/2008 (5)    125,000        24.31    3/7/2018    328,750                  
 Option  4/18/2007 (5)    145,500        37.91    4/18/2017                      
 Option  12/22/2006 (5)    47,300        14.57    12/22/2016    585,101                  
G. Michael Sievert RSU  6/5/2014 (4)                        30,544    822,855          
 PRSU  6/10/2013 (3)                                92,389    2,488,960  
 RSU  6/10/2013 (4)                        92,389    2,488,960          
James C. Alling PRSU  6/10/2013 (3)                                108,959    2,935,355  
 RSU  6/10/2013 (4)                        108,959    2,935,355          
Gary A. King PRSU  2/25/2014 (3)                                17,545    472,662  
  RSU  2/25/2014 (4)                        17,545    472,662          
 (1)

Performance-based RSUs (“PRSU” in the table above) vest based on the relative performance of the Company’s TSR compared to that of the peer group over a measurement period from January 1, 2015 to December 31, 2016.

 

(1) (2)Unless otherwise noted, options vest over a period of four years as follows: 25% of the option vests on the first anniversary of the grant date. The remainder vests in 36 successive, equal monthly installments beginning with the end of the month after the first anniversary of the grant date.

-60-


(2)Represents aggregate market value of restricted shares

PRSUs may be earned based on the operating free cash flow for the period from January 1, 2015 through December 31, 2015 and earned PRSUs are then subject to time-based vesting on continued service through December 31, 2016.

 (3)

PRSUs vest based on the relative performance of the Company’s TSR compared to that of the peer group over a measurement period from May 1, 2013 to December 31, 2015.

 (4)

RSUs vest in annual installments with respect to 1/3 of the shares on February 25 of each of the three calendar years following the calendar year in which the grant occurred.

 (5)

In connection with the consummation of the Business Combination, all outstanding stock options held by Mr. Carter automatically vested and became exercisable effective April 30, 2013.

 (6)

Calculated based on the difference between the applicable stock option exercise price and the closing price of a share of our common stock on December 31, 20122014 of $9.94.$26.94 per share.

 

(3)(7)Options granted

Calculated based on August 3, 2005.the number of PRSUs that may be earned upon achievement of target performance or number of RSUs, as applicable, multiplied by the closing price of our common stock on December 31, 2014 of $26.94 per share.

(4)Options granted on December 30, 2005 and vested over a one-year period as follows: 50% of the underlying shares vested on January 1, 2006 and the remaining 50% of the shares vested on January 1, 2007.

(5)Options granted on October 12, 2004. Options repriced from $3.97 to $5.47 on December 28, 2005.

(6)Options granted on September 21, 2005.

(7)Options granted on March 14, 2006.

(8)Options granted on December 22, 2006 and vested over a period of three years.

(9)Options granted on December 22, 2006.

(10)Options granted on April 18, 2007.

(11)Options granted on August 8, 2007.

(12)Options granted on March 7, 2008.

(13)Options granted on March 4, 2009.

(14)Restricted stock awards granted on March 4, 2009 and vest over a period of four years as follows: 25% of the awards vests on the first anniversary of the grant date and the remainder vests in a series of 36 successive, equal monthly installments beginning with the first anniversary of the grant date.

(15)Options granted on May 12, 2009.

(16)Restricted stock awards granted on May 12, 2009 and vest over a period of four years as follows: 25% of the awards vests on the first anniversary of service and the remainder vests upon the awardees’ completion of each additional month of service, in a series of 36 successive, equal monthly installments beginning with the end of the month after the first anniversary of the grant date.

(17)Options granted on March 4, 2010.

(18)Restricted stock awards granted on March 4, 2010 and vest over a period of four years as follows: 25% of the awards vests on the first anniversary of service and the remainder vests upon the awardees’ completion of each three month of service, in a series of 12 successive, equal quarterly installments beginning with the end of the month after the first anniversary of the grant date.

(19)Options granted on February 28, 2011.

(20)Restricted stock awards granted on February 28, 2011 and vest over a period of four years as follows: 25% of the awards vests on the first anniversary of service and the remainder vests upon the awardees’ completion of each three month of service, in a series of 12 successive, equal quarterly installments beginning with the end of the month after the first anniversary of the grant date.

(21)Options granted on May 12, 2011.

(22)Options granted on February 7, 2012.

(23)Restricted stock awards granted on February 7, 2012 and vest over a period of four years as follows: 25% of the awards vests on the first anniversary of service and the remainder vests upon the awardees’ completion of each three month of service, in a series of 12 successive, equal quarterly installments beginning with the end of the month after the first anniversary of the grant date.

In connection with the consummation of the Business Combination, all outstanding equity awards under the Company’s equity plans, including each outstanding stock option and each share of restricted stock held by the Named Executive Officers, automatically vested and, in the case of stock options, became exercisable. Holders of stock options could elect to receive cash in lieu of their vested stock options during the five days following the consummation of the Business Combination in accordance with the terms of the Business Combination. Any stock options that were not cashed out were adjusted for the reverse stock split and the cash payment and remain outstanding in accordance with their terms.

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Option Exercises and Stock Vested for Fiscal Year 20122014 Table

The following table sets forth certain information with respect to option exercises and restricted stock vesting during the fiscal year ended December 31, 20122014 with respect to the Named Executive Officers.

   Option Awards   Stock Awards 
Name  Number of Shares
Acquired on
Exercise (#)
   

Value Realized on

Exercise ($)

   Number of Shares
Acquired on
Vesting (#)
   Value Realized on
Vesting ($)
 

John J. Legere

                    

J. Braxton Carter

   46,400     892,206            

G. Michael Sievert

                    

James C. Alling

                    

Gary A. King

                    

32


Option Exercises and Stock Vested for 2012EXECUTIVE COMPENSATION

2014 Non-Qualified Deferred Compensation

 

   Option Awards   Stock Awards 

Name

  Number of
Shares Acquired
    on Exercise (#)     
   Value Realized
    on Exercise ($)    
   Number of
Shares Acquired
    on Vesting (#)     
   Value Realized
    on Vesting ($)    
 

Roger D. Linquist

             218,750    $2,084,304  

Thomas C. Keys

             130,000    $1,226,129  

J. Braxton Carter

             85,625    $817,942  

Mark A. Stachiw

             54,062    $515,607  

Dennis T. Currier

             21,875    $211,328  

Pension Benefits

All of the Named Executive Officers are eligible to participate in the Company’s non-qualified deferred compensation plan (the “Deferred Compensation Plan”). However, only Mr. Carter has elected to do so. Under the terms of the Deferred Compensation Plan, participants are eligible to defer up to 75% of their base salary, 100% of their annual incentive compensation and 100% of RSU awards (beginning in 2015). All amounts attributable to participant deferrals under the Deferred Compensation Plan are fully vested at all times. We did not provide any employer matching or discretionary allocations under the Deferred Compensation Plan for 2014.

We doParticipants choose how their deferrals (and their account balances) will be allocated among the national investment funds available under the Deferred Compensation Plan. For 2014 there were 16 funds for deferral of base salary and incentive compensation, which did not include a Company stock fund. Any deferred RSUs would be credited to a Company stock fund.

A participant’s account balances under the Deferred Compensation Plan will be distributed in a lump-sum distribution when the participant terminates employment, unless termination is due to retirement or disability, in which case the participant can elect annual installments over two to fifteen years. For this purpose, “retirement” means termination of employment on or after either (i) the date on which the sum of the participant’s age and years of service equals 65 or (ii) the date on which the participant completes ten years of service. Participants may also elect to have any plan that providedamounts attributable to their deferrals for payments or other benefits at, following,a particular year distributed (or commence to be distributed) as of a specified date in a lump sum or in connection with, retirement, otherannual installments over two to five years, even if they are still employed by the Company on that date. Generally, the specified date for base

salary and incentive compensation distribution may not be earlier than under our Equity Plans. Under our 2010 Plan,the first day of the second year beginning after the year in which such amounts are deferred and for RSUs may not be earlier than the first day of the fourth year beginning after the year in which such amounts are deferred.

If a Participant who is an employee will be deemed to have retired if such Participant’s age plus total number of years of cumulative serviceparticipant’s employment with the Company terminates prior to the in-service distribution date specified by the participant, then any portions of the participant’s account balances that are subject to specified distribution date elections will be distributed upon termination of employment, as described above. If a participant dies before his or her entire interest under the Deferred Compensation Plan has been distributed, his or her remaining interest will be distributed in a lump sum to his or her beneficiary.

If a participant’s employment terminates within 24 months following a change in control (as defined in the Company’s 2013 Omnibus Incentive Plan), then all amounts credited to his accounts under the Deferred Compensation Plan will be paid to the participant in a lump sum within 90 days after such termination. Similarly, if a change in control occurs after a participant retires or becomes disabled, any undistributed amounts remaining in such participant’s accounts under the Deferred Compensation Plan will be distributed in a lump sum within 90 days after the change in control. Notwithstanding the foregoing, if a participant is 55 and such Participant hasa “specified employee” for purposes of Section 409A of the Code at least 10 years of servicethe time his or her employment with the Company. The Compensation Committee approvedCompany terminates, then distributions on account of termination of employment will not be made (or commence to be made) prior to the adoptionearlier of the definitionparticipant’s death or the six-month anniversary of retirement under the 2010 Plan to serveparticipant’s termination of employment. Each of the Named Executive Officers is a specified employee for this purpose. Distributions are made in cash or stock, as an event of separation of employment underapplicable.

The following table shows the 1995 Plancontributions, earnings and the 2004 Plan. Under our 1995 Plan and 2004 Plan, upon retirement, which is deemed a cessationaggregate balance of employment, the affected officer, director or employee would have one year to exercise all options vested on the datetotal deferrals as of retirement. Under our 2010 Plan, an affected officer, director, or employee which retires would have one year to exercise all options vested on the date of such retirement.December 31, 2014.

Non-Qualified Deferred Compensation

We do not have any plan that provides for the deferral of compensation on a basis that is not tax-qualified.
Name  

Executive
Contributions in

Last Fiscal Year (1)($)

   

Aggregate

Earnings in Last

Fiscal Year ($)

   

Aggregate Balance
at Last Fiscal

Year-End ($)

 

John J. Legere

               

J. Braxton Carter

   467,500     12,007     479,507  

G. Michael Sievert

               

James C. Alling

               

Gary A. King

               
(1)

The amounts listed in this column are also included in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table for 2014. Amounts included in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table for Mr. Carter in 2013 were $467,500.

Potential Payments upon Termination or in Connection with a Change in Control

The actualfollowing describes and quantifies the estimated amount of potential incremental amounts payablepayments and benefits that would be provided to theeach of our current Named Executive Officers under the Company’s compensation plans and agreements in the event of a termination of employment or change in control of the Company. The amounts shown assume that the termination was effective as of December 31, 2014 and arrangementsthat the price of our common stock as of termination was the closing price of $26.94 on December 31, 2014. The actual amounts can be determined only following the officer’s termination and the conclusion of all relevant incentive plan performance periods. If an executive officer voluntarily leaves the Company, the executive officer is not entitled to any severance compensation.

Mr. Legere’s Employment Agreement.    Mr. Legere’s employment agreement provides for the following termination benefits.

Upon termination by us without “cause” or by Mr. Legere for “good reason” not in connection with a change in control, he will receive: (i) a lump-sum cash payment equal to two times the Business Combination are set forth below under “Effectsum of his annual base salary and then-current target annual incentive award; (ii) his annual incentive award from the preceding fiscal year that remains unpaid; (iii) a prorated portion of his annual performance bonus for the current fiscal year, based on the Company’s actual performance results; (iv) any unpaid, but earned, tranche or cliff vesting legacyT-Mobile USA LTIP awards; (v) the portion of any outstanding legacy T-Mobile USA LTIP awards that vest in annual tranches, at target and prorated over the one-year vesting period; and (vi) the portion of any outstanding legacy T-Mobile USA LTIP awards that cliff vest at the end of the Business Combinationthree-year vesting period, at target for the current year and prorated over the three-year vesting period.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement33


EXECUTIVE COMPENSATION

Upon termination by the Company without cause or by Mr. Legere for good reason within a period beginning three months prior to the entering into of an agreement that leads to a change in control and ending on page 71. This section sets forth certain information aboutthe second anniversary of the change in control, Mr. Legere would receive, in addition to the benefits described in the preceding paragraph, the difference between the full amount, at target, of any outstanding legacy T-Mobile USA LTIP awards that he has not yet earned, and the amounts described in subsections (v) and (vi) of the preceding paragraph. See “— 2013 Omnibus Incentive Plan” below for the treatment of Mr. Legere’s RSUs.

“Good reason” is defined as any of the following:

a material diminution in base compensation, annual performance bonus target, or long-term incentive target or in the maximum potential amount payable with respect to any annual bonus or long-term incentive bonus award provided for under his employment agreement;

a material diminution in authority, duties or responsibilities, including, without limitation, any change in title or the appointment of any person as a result of which Mr. Legere ceases to be the Company’s plans, agreementssole Chief Executive Officer, provided that it will not be good reason if, in connection with a change in control, Mr. Legere reports to the Board of Directors rather than the Chairman of the Board;

a material diminution in the authority, duties or responsibilities of the supervisor to whom Mr. Legere is required to report (including a requirement that he report to a corporate officer or employee instead of reporting directly to the Chairman of the Board);

a change of 50 miles or greater in the principal geographic location at which he must perform services; or

any other action or inaction that constitutes a material breach by the Company or the successor company, as applicable, of any agreement under which Mr. Legere provides services to the Company or the successor company, as applicable.

“Cause” has generally the same definition as in the Executive Continuity Plan, discussed below, except that the employment agreement’s definition also includes breach of a nonsolicitation covenant as well as unlawful discrimination, harassment, or retaliation, assault or other violent act toward any employee or third party, or other act or omission that, in each case, in the view of the Board of Directors constitutes a material breach of the Company’s written policies or code of business conduct.

“Change in control” has the same definition as in the 2013 Omnibus Incentive Plan, discussed below.

Mr. Sievert’s Term Sheet.    Mr. Sievert’s term sheet provides that he is entitled to two times the sum of his base salary and arrangementsannual incentive plan target in the event he is terminated without cause or constructively discharged.

“Cause” generally has the same definition as in the Executive Continuity Plan, discussed below.

“Constructive discharge” has generally the same definition as “constructive termination” in the Executive Continuity Plan, discussed below, except that providethe definition of “constructive discharge” in the term sheet also includes a change in reporting relationship such that Mr. Sievert reports to anyone below the CEO level as an additional condition.

Executive Severance Benefit Guidelines.    Under the Company’s 2014 Executive Severance Benefit Guidelines (“Severance Guidelines”), if as a result of a corporate restructuring or business

combination in which an executive is terminated or resigns after being offered a new position that would:

result in a greater than 5% reduction in total compensation, or

require a move to a work location more than 50 miles from the executive’s current work location

the executive may be considered for potentialthe following benefits: (i) a cash payment of two times total target cash (composed of annual salary and target annual bonus); (ii) a prorated portion of the annual short-term incentive for the current fiscal year, based on the Company’s actual performance results; (iii) COBRA benefit payments for up to 12 months; (iv) 12 months of executive outplacement services valued at $7,750; (v) an amount equal to the tranche of each legacy T-Mobile USA LTIP award that would have vested at the end of the year in which the separation occurs, prorated at target by the ratio of the number of days in the tranche year preceding the date of the separation to the number of days in the tranche year; and (vi) an amount equal to the cliff-vesting portion of each legacy T-Mobile USA LTIP award prorated at target by the ratio of the number of days in the performance period preceding the date of the separation to the total number of days in the entire performance period.

Executive Continuity Plan. The Company’s Executive Continuity Plan provides that our Named Executive Officers who are terminated within the period of 24 months following a change in control by the Company without cause or by the participant as the result of a constructive termination or for good reason are entitled to receive two times the sum of the executive’s base salary plus the greater of the executive’s target annual bonus percentage (i) at the time of termination or (ii) immediately prior to the change in control.

“Cause” is defined in the Executive Continuity Plan as any one of the following:

the participant’s gross neglect or willful material breach of participant’s principal employment responsibilities or duties;

a final judicial adjudication that the participant is guilty of any felony (other than a law, rule or regulation relating to a traffic violation or other similar offense that has no material adverse effect on the Company or any of its affiliates);

the participant’s breach of any non-competition or confidentiality covenant between the participant and the Company or any affiliate of the Company;

fraudulent conduct, as determined by a court of competent jurisdiction, in the course of the participant’s employment with the Company or any of its affiliates; and

the material breach by the participant of any other obligation which continues uncured for a period of 30 days after notice thereof by the Company or any of its affiliates and which is demonstrably injurious to the Company or its affiliates.

For the Named Executive Officers, at, followingother than Mr. Legere, “constructive termination” or in connection with certain terminations of employment,“good reason” means the occurrence, after a change in control, of any of the following conditions:

a material diminution in the participant’s duties, authority or responsibilities;

a material reduction in the participant’s base salary, target short-term incentive opportunity, or target long-term incentive opportunity as in effect immediately prior to the change in control, except for across-the-board salary reductions based on the Company’s and its subsidiaries’ financial performance similarly affecting all or substantially all management employees of the Company or certain changes in the executive’s responsibilities, which we refer to as triggering events. The table captioned “Potential Payments upon Change in Control or Termination of Employment” on pages 70-71 sets forth the estimated amount of incremental compensation payable to each of the Named Executive Officers under such Company plans, agreements and arrangements assuming a triggering event occurred on December 31, 2012 based where applicable on the closing price of our common stock on that date.its subsidiaries;

Severance Pay Plan

The MetroPCS Communications, Inc. Severance Pay Plan and Summary Plan, or the Severance Plan, provides for severance benefits to all of the Company’s officers, including the Company’s Named Executive Officers. Under the Severance Plan, if an eligible officer’s employment is terminated (1) by the Company

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without Cause (as defined below) or (2) by the eligible officer for Good Reason (as defined below), such two events a Qualifying Termination Event, the eligible officer would be entitled to a severance payment as follows:

 

34


EXECUTIVE COMPENSATION

a material reduction in the kind or level of qualified retirement and welfare employee benefits from the like kind benefits to which the participant was entitled immediately prior to a change in control with the result that the participant’s overall benefits package is materially reduced without similar action occurring to other eligible comparably situated employees;

the relocation of the office at which the participant was principally employed immediately prior to a change in control to a location more than 50 miles from the location of such office, or the participant being required to be based anywhere other than such office, except to the extent the participant was not previously assigned to a principal location and except for required travel on business to an extent substantially consistent with the participant’s business travel obligations at the time of the change in control; or

such other event, if any, as is set forth in the participant’s agreement regarding executive continuity benefits.

For Mr. Legere, “good reason” has the same definition as in his employment agreement described above.

“Change in control” in the Executive Continuity Plan has the same definition as in the 2013 Omnibus Incentive Plan.

The cash severance payments pursuant to the above-described severance plans or agreements will be reduced by any cash severance payments otherwise required to be provided to a participant pursuant to any other severance plans or agreements, except that any rights or payments pursuant to the 2013 Omnibus Incentive Plan or any other long-term incentive plan or bonus plan will not reduce any such cash severance payments.

2013  Omnibus Incentive Plan.    Under the terms of the 2013 Omnibus Incentive Plan and the award agreements applicable to our Named Executive Officers, in the event of a change in control in which outstanding awards are assumed, converted or replaced by the resulting entity, all time-based RSUs will become fully vested, and all performance-based RSUs will be deemed to be satisfied and paid at the greater of target or actual performance determined as of the last trading day prior to the change in control (without proration) if, on or after the change in control and within one year after the change in control, the participant’s employment or service is terminated by the Company other than for cause or by the participant for good reason. In the event of a change in control in which outstanding awards are not assumed, converted or replaced by the resulting entity, all time-based RSUs will become vested, and all performance-based RSUs will be deemed to be satisfied and paid at the greater of target or actual performance as of the last trading day prior to the change in control prorated up to and including the date of the change in control.

The award agreements under the 2013 Omnibus Incentive Plan also provide that, in the case of death or total and permanent disability, any unearned time-based RSUs become immediately earned and vested and any performance-based RSUs will be paid at target as of the date of the executive’s separation from service.

For our Named Executive Officers, other than Mr. Legere, under the terms of the 2013 Omnibus Incentive Plan and the applicable award agreements, in the event of a termination of employment in connection with a workforce reduction or divestiture, time-based RSUs that are scheduled to vest at the next scheduled vesting date will become earned and vested immediately. For performance-based RSUs, the number of performance adjusted units would be determined after the end of the performance period and multiplied by the pro rata fraction (as defined below).

“Pro rata fraction” is defined as a fraction, the numerator of which is the number of days from the grant date of the award to the date of separation from service and the denominator of which is the number of days from the grant date through the end of the performance period.

“Divestiture” is defined as a separation from service as the result of a divestiture or sale of a business unit.

“Workforce reduction” is defined as the executive’s separation from service as a result of a reduction in force, realignment or similar measure.

Mr. Legere’s award agreements also provide that if he is terminated by the Company other than for cause, or if he leaves for good reason, he would be entitled to any unearned time-based RSUs scheduled to vest on the next vesting date. The number of performance-based RSUs will be determined following the end of the performance period and multiplied by the pro rata fraction, as defined above.

Mr. Legere’s award agreements provide that, from the period following a change in control but before the first anniversary of the change in control, upon termination other than for cause or for separation for good reason, any unearned time-based RSUs will become immediately earned and vested and any performance-based RSUs will become immediately earned and vested as of the date of such separation from service at the greater of target or actual performance immediately prior to the change in control.

Beginning with the 2015 performance-based RSU awards (and Mr. Legere’s 2014 performance-based RSU award), under the 2013 Omnibus Incentive Plan, the award agreements provide that in the event of a change in control and continuation of service by an executive, the performance cycles outstanding upon a change in control under performance-based RSU will be paid at the greater of target or actual performance as of the end of the performance period.

Potential Payments upon Death or Disability.    Under the terms of the 2014 STIP, in the case of death or disability, a Named Executive Officer (or his/her dependent) would be eligible for an incentive payout for the performance period in which the executive died or was disabled. Any such incentive payout would be pro-rated at 100% achievement and calculated using the executive’s target incentive payout percentage and annual salary prorated for the number of weeks employed during the performance period.

Under the legacy T-Mobile USA LTIP, a Named Executive Officer who dies or becomes disabled is entitled to the payment for tranche-vesting and cliff-vesting of the award for the calendar year in which the executive dies or becomes disabled as if the executive were employed through the date of payment.

Estimated Payments

The following table presents estimated incremental compensation payable to each of the Company’s Named Executive Officers if a termination of employment had occurred as of December 31, 2014 under the circumstances described above. The estimated incremental compensation is presented in the following benefit categories:

Cash Severance:    reflects cash severance (i) in the case of termination in connection with a corporate restructuring or a termination without cause or for good reason before a change in control under the Severance Guidelines, pursuant to Mr. Legere’s employment agreement or pursuant to Mr. Sievert’s term sheet, and (ii) in the case of termination without cause or for good reason in connection with or after a change in control under our Executive Continuity Plan;

TierT-Mobile      Notice of 2015 Annual Meeting and Proxy Statement Position35


EXECUTIVE COMPENSATION

 

Severance PaymentTime-Based RSUs:    market value, as of December 31, 2014, of unvested time-based RSUs that would vest pursuant to the 2013 Omnibus Incentive Plan and related award agreements;

 

Severance
PeriodPerformance-Based RSUs
:    market value, as of December 31, 2014, of unvested performance-based RSUs that would vest pursuant to the 2013 Omnibus Incentive Plan and related award agreements (assuming performance at target);

 

2014 STIP:    prorated portion of short-term cash incentives that would be paid (i) pursuant to the 2014 STIP or (ii) under Mr. Legere’s employment agreement;

Tier 1

 Chief Executive Officer

Legacy T-Mobile USA LTIP:    prorated portion of long-term cash incentives that would be paid pursuant to (i) the Severance Guidelines or (ii) under Mr. Legere’s employment agreement;

 2.0 times Annual Compensation + Pro-Rata Additional Payment

Medical Coverage:    estimated value of payment for continued medical coverage under COBRA pursuant to the terms of (i) our Severance Guidelines, or (ii) under Messrs. Legere’s and Carter’s employment agreements; and

 

Outplacement Services:    estimated potential value of this service.

    Termination in
Connection with
Restructuring
Before a Change
in Control ($)(1)
   Termination
Without Cause or
for Good Reason in
Connection with or
After a Change
in Control ($)
   

Death or

Disability ($)

 
John J. Legere      

Cash Severance

   5,500,000     5,500,000       

Time-Based RSUs

   2,446,125     7,338,402     7,338,402  

Performance-Based RSUs

   7,701,068     23,666,117     23,666,117  

2014 STIP

   2,325,000     2,325,000     2,325,000  

Legacy T-Mobile USA LTIP

   9,191,667     11,191,667     9,191,667  

Medical Coverage

   10,994     10,994       

Outplacement Services

   7,750     7,750       

Total Estimated Incremental Value

   27,182,604     50,039,930     42,521,186  
J. Braxton Carter      

Cash Severance

   2,600,000     2,600,000       

Time-Based RSUs

   1,324,990     3,974,970     3,974,970  

Performance-Based RSUs

   2,423,253     3,974,970     3,974,970  

2014 STIP

   1,007,500     1,007,500     1,007,500  

Legacy T-Mobile USA LTIP

   1,250,000     1,250,000     416,667  

Medical Coverage

   11,706     11,706       

Outplacement Services

   7,750     7,750       

Total Estimated Incremental Value

   8,625,199     12,826,896     9,374,107  
G. Michael Sievert      

Cash Severance

   2,035,000     2,035,000       

Time-Based RSUs

   1,103,920     3,311,815     3,311,815  

Performance-Based RSUs

   1,517,342     2,488,960     2,488,960  

2014 STIP

   724,625     724,625     724,625  

Legacy T-Mobile USA LTIP

   1,017,500     1,017,500     339,167  

Medical Coverage

   19,148     19,148       

Outplacement Services

   7,750     7,750       

Total Estimated Incremental Value

   6,425,285     9,604,798     6,864,567  
Gary A. King      

Cash Severance

   1,750,000     1,750,000       

Time-Based RSUs

   157,545     472,662     472,662  

Performance-Based RSUs

   217,083     472,662     472,662  

2014 STIP

   567,837     567,837     567,837  

Legacy T-Mobile USA LTIP

               

Medical Coverage

   19,265     19,265       

Outplacement Services

   7,750     7,750       

Total Estimated Incremental Value

   2,719,480     3,290,176     1,513,161  
(1)24 months

Tier 2

President & COO, all Vice Chairmen, all Executive Vice Presidents, all Sr. Vice Presidents, all Vice Presidents who are direct reportsReflects cash severance amounts in connection with termination without cause or for good reason to the CEO1.5 times Annual Compensation + Pro-Rata Additional Payment18 months

Tier 3

Vice Presidents who are officers of the Company,Mr. Legere pursuant to his employment agreement and Mr. Sievert pursuant to his term sheet and reflects incentive amounts in connection with the exception of those reporting directlytermination without cause or for good reason to the CEO0.75 times Annual Compensation + Pro-Rata Additional Payment9 monthsMr. Legere. Also reflects RSU amounts payable to Mr. Legere in connection with termination without cause or for good reason pursuant to outstanding award agreements.

A Termination

In addition to the items described above, the Named Executive Officers are entitled to receive amounts earned during the term of Employment (as defined below) resulting from an eligible employee’s death, Disability (as definedemployment. These amounts, which are not included in the Severance Plan) or Normal Retirement (as defined intable, include earned base salary, vested awards under our long-term incentive awards, any vested entitlements under our applicable employee benefit plans, including vested 401(k) plan balances, and rights to continuation of coverage under our group medical plans. In addition, if Mr. Carter had voluntarily terminated his employment before January 31, 2015 (within 21 months after the Severance Plan) shall not be deemed a Qualifying Termination Event.

For purposesBusiness Combination), he would have been entitled to (i) payment of the calculation of the severance payments, “Annual Compensation” is an amount equal to two times the annualized basesum of his legacy MetroPCS salary

and target annual bonus effective immediately prior to the Business Combination, (ii) payment at target for the eligible officer, plus the eligible officer’s “Pro-Rata Additional Payment,” which is the product, pro-rated forhis 2013 legacy MetroPCS short-term incentive award, prorated by the number of days in 2013 prior to the eligible officer was employed by MetroPCS or an affiliate of MetroPCS during the calendar year in which his or her employment was severed,closing of the percentage set forth belowbusiness combination and (iii) a 24-month continuation of medical and dental insurance for him and his dependents. If Mr. Carter had voluntarily terminated on December 31, 2014, such amounts would have been approximately $2,025,360, $147,972 and $36,122, respectively. Mr. Alling is not included in the eligible officer multiplied bytable above because he voluntarily left the eligible officer’s annualized base salary. Additionally, the eligible officer would receive a one-time payment equal to the eligible officer’s Pro-Rata Additional Payment attributable to the year in which the termination of employment occurs.Company effective March 13, 2015.

 

Tier Position36

Additional Payment

(percentage of
annualized base salary)

Tier 1

Chief Executive Officer   140

Tier 2

President and Chief Operating Officer90
Vice Chairman, Chief Financial Officer80
Vice Chairman, General Counsel & Secretary75
Senior Vice Presidents65
Vice Presidents who report directly to the Chief Executive Officer40
Vice President, Regional General Manager50

Tier 3

Vice Presidents other than Regional General Managers and Vice Presidents who report directly to the Chief Executive Officer40

For a Tier 1, Tier 2 or Tier 3 officer to be deemed an eligible officer and receive the benefits described above in full, the officer must have been continuously employed by the Company or an affiliate of the Company for a period of two or more years following the officer’s hire date. In certain circumstances, new officers and other officers who have not been in continuous service with the Company for a period of two years will be entitled to a pro-rata portion of the severance payments described above based upon the officer’s length of service with the Company.

In addition to the severance payments described above, upon a Qualifying Termination Event the Company also will pay the eligible officer an amount equal to the sum of all accrued and unpaid salary as of the date of termination, plus reimbursement of any business expenses incurred prior to termination, plus any accrued

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vacation pay not paid, plus any vested and unpaid annual cash performance awards, plus payment for any vested or accrued other benefits and shall also reimburse the eligible officer for continued health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA, during the eligible officer’s applicable severance period.

Under the terms of the Severance Plan, the severance payments and the COBRA reimbursements will be paid monthly in substantially equal increments in accordance with the Company’s normal payroll practices during the eligible officer’s applicable severance period as set forth in the chart above. The first such monthly payment will be made on the 60th day following the eligible officer’s termination of employment. The payment of the severance payments and the COBRA reimbursements is conditioned upon the eligible officer’s execution and delivery of a customary release agreement in favor of the Company. In addition to customary release language, the release agreement includes a non-compete provision applicable for a period equal to the eligible officer’s applicable severance period. If the eligible officer elects to accept employment with a Company competitor or breaches the non-compete provisions of the release agreement, the Company may stop making severance payments and reimbursing for COBRA coverage.

Upon a Qualifying Termination Event, an eligible officer’s outstanding awards under the Company’s equity incentive plans will receive the following treatment:

LOGO

All unvested stock option awards granted pursuant to the 1995 Plan, the 2004 Plan and the 2010 Plan, collectively with the 1995 Plan, the 2004 Plan, the 2010 Plan and any other equity incentive compensation plan adopted by the Company after the effective date of the Severance Plan, the Equity Plans, will be immediately forfeited without any further payment;

All vested but unexercised stock option awards granted pursuant to the 1995 Plan shall remain exercisable by the eligible officer for a period of three months following an eligible officer’s “Termination of Employment;”

All vested but unexercised stock option awards granted pursuant to the 2004 Plan or the 2010 Plan shall remain exercisable by the eligible officer for a period of six months following Termination of Employment;

All unvested restricted stock awards granted pursuant to the Equity Plans shall be immediately forfeited without further payment;

Any unvested annual performance awards granted pursuant to the Equity Plans shall be immediately forfeited without further payment subject to payment of a pro-rated portion based on the number of days during the year the severed officer was employed by the Company; and

All other awards under the Equity Plans shall be immediately forfeited without further payment.

For purposes of the Severance Plan, the following terms have the following meanings:

“Cause” has the same meaning as in any effective employment agreement the officer has entered into with the Company; provided, however, that in the event that the officer does not have an employment agreement or any employment agreement does not define “Cause,” then “Cause” shall mean the officer’s (a) engagement in any act of gross negligence, recklessness, or willful misconduct on a matter that is not inconsequential, as reasonably determined by the administrator of the Severance Plan in good faith or material violation of any duty of loyalty to the Company or its affiliates, (b) conviction by, or a plea of guilty or nolo contendere in, a court of competent and final jurisdiction for (i) any felony, or (ii) any crime of moral turpitude, or (c) commission of an act of fraud, embezzlement or dishonesty. For purposes hereof, no act or failure to act, on the officer’s part, shall be deemed “Cause” if the administrator of the Severance Plan, in its sole discretion, believes such acts or omissions were in the best interests of the Company.

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“Good Reason” means, without the express written consent of the officer, the occurrence of any of the following: (a) the material reduction or diminution in the officer’s authority, duties or responsibilities with the Company (or any affiliate of Company or any successor thereof); (b) a material reduction in employee’s annualized cash and benefits compensation opportunity, which shall include officer’s base compensation, officer’s annual target bonus opportunity and officer’s aggregate employee benefits, as in effect immediately prior to a Termination of Employment; or (c) the relocation of the officer to an office or location which would increase his daily commute distance by more than 50 miles (one-way) from the location at which the officer normally performed employee’s services immediately prior to the Termination of Employment, except for travel reasonably required in the performance of the officer’s responsibilities or the officer being required to travel away from the his office in the course of discharging the his responsibilities or duties hereunder significantly more (in terms of either consecutive days or aggregate days in any calendar year) than was required of the officer prior to the Termination of Employment. Notwithstanding the foregoing, in the case of the officer’s allegation that his Termination of Employment was due to a Good Reason termination: (i) officer shall provide notice to the Company of the event alleged to constitute a Good Reason termination within 90 days of the occurrence of such event, and (ii) the Company shall be given the opportunity to remedy the alleged Good Reason termination event within 10 calendar days from receipt of notice of such allegation.

“Termination of Employment” means a separation from service within the meaning of Treasury regulation Section 1.409A-1(h).

The preceding description of the Severance Plan is a summary and should be read in conjunction with, and is qualified in its entirety by reference to, the full text of the Severance Plan, which was filed with the SEC as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on August 9, 2010.

Change in Control Agreements

On May 4, 2010, the Board approved, and the Company entered into, Change in Control Agreements with the Company’s officers, including all of the Named Executive Officers. Under the Change in Control Agreement, if an officer, including a Named Executive Officer, suffers a Termination Event (as defined below) during the 18 month period following a Change in Control (as defined below), or the Protection Period, the officer, including a Named Executive Officer, is entitled to, among other things, the following:

PositionLump Sum Severance PaymentSeverance
Benefit Period

Chief Executive Officer

2.5 times annual base salary + Bonus (as defined in the Change in Control Agreement)30 months

Direct Officer Reports to the Chief Executive

Officer and Senior Vice Presidents

2 times annual base salary + Bonus24 months

Vice Presidents

1 times annual base salary + Bonus12 months

In addition to the Severance Benefits, consisting of the Lump Sum Severance Payment noted above, together with health and dental benefits coverage for the stated Severance Benefit Period for the Named Executive Officer and their dependents following termination, the officer, including a Named Executive Officer, would be paid for all amounts owed to him as of the date of termination, including among other things, accrued and unpaid salary, reimbursement of business expenses, accrued vacation pay, plus any vested and unpaid annual cash performance award, plus any pro-rata portion of his annual cash incentive award for the year in which he was terminated. Further, all outstanding equity awards and incentive compensation awards held by the officer, including a Named Executive Officer, under any of the Equity Plans would become immediately vested and exercisable upon the occurrence of a Change in Control.

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The Severance Benefits are payable on the 60th day following the officer’s termination and are conditioned upon the officer’s execution and delivery of a customary release agreement in favor of the Company and certain affiliated parties. In addition to customary release language, the release agreement includes a non-compete provision applicable for a certain period following termination. If the officer elects to accept employment with a Company competitor listed in the Change in Control Agreement or otherwise breaches the non-compete provisions, the officer will be required to re-pay certain of the Severance Benefits payable under the Change in Control Agreement and the Company shall be entitled to cease providing any health and dental benefit coverage on a prospective basis.

In addition to the cash payment and benefits describe above, any outstanding equity awards and incentive compensation awards held by the officer under any MetroPCS equity incentive compensation plans will immediately vest and become exercisable upon the closing of a transaction in which a Change in Control occurs (without regard to any termination of employment). In addition, any annual cash performance awards attributable to each officer will immediately vest and be deemed earned in full at the target level as of the date of the completion of a transaction in which a Change in Control occurs without regard to any applicable performance cycle, restriction or condition being completed or satisfied or without regard to any termination of employment. Such vesting and payment is not conditioned on a termination of employment after the completion of such transaction.

The benefits payable to the officer under the Change in Control Agreements are in lieu of any other payments or benefits payable under any other severance plan, policy or arrangement maintained by the Company, including the Severance Plan.

For the purposes of the Change in Control Agreements, the following terms have the following meanings:

“Change in Control” means the occurrence of one of the following: (i) A “change in the ownership of the Company” which shall occur on the date that any or group acquires more than 50% of our common stock, other than transactions by us or by one of our affiliates, our employee benefit plans, acquisitions by current investors or by an underwriter; (ii) a “merger of the Company” which shall occur on the date a merger, reorganization, or other similar business combination results in our current equity holders owning less than 50% of the combined voting power of our equity securities following the transaction; (iii) A “change in the effective control of the Company” which shall occur on the date that either (a) any person or group acquires ownership of the common stock possessing more than 35% of the total voting power of our common stock, unless such an acquisition was conducted by one of our employee benefit plans, our investors for financing purposes, any merger or acquisition with a company-controlled entity, or an underwriter, or (b) the majority of the members of our Board of Directors are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of directors prior to such appointment or election; or (iv) A “change in the ownership of a substantial portion of the Company’s assets” which shall occur on the date that any person or group acquires 40% or more of the fair market value of our assets.

“Cause” has the same meaning as set forth above with respect to the Severance Plan.

“Disability” means an inability to perform the officer’s material services for the Company for a period of 90 consecutive days or a total of 180 days, during any 365 day period, in either case as a result of incapacity due to mental or physical illness, which is determined to be total and permanent.

“Good Reason” has the same meaning as set forth above with respect to the Severance Plan.

“Termination Event” means the employee’s “separation from service” with the Company within the meaning of Treas. Reg Section 1.409A-1(h)(1)(ii) either: (i) by the Company or its successor without Cause, excluding terminations due to the employees death or Disability; (ii) by the Company or its successor as a condition to the consummation of (or entry into, provided the transaction is consummated) the Change in Control transaction; or (iii) by the employee for Good Reason.

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The preceding description is a summary of the Change in Control Agreements and should be read in conjunction with and is qualified in its entirety by reference to, the full text of the form of Change in Control Agreement which was filed with the SEC as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed on August 9, 2010.

Change in Control Provision within the Equity Plans

The Equity Plans also contain certain change in control provisions. We have change in control provisions in our Equity Plans to ensure that if our Company experiences a change in control our executives and other key employees who have received awards under such Equity Plans will remain with the Company through any change in control event.

The 1995 Plan

Under our 1995 Plan, in the event of a “Corporate Transaction,” defined as a stockholder-approved merger or consolidation transferring greater than 50% of the voting power of our outstanding securities to a person(s) different from the persons holding those securities immediately prior to such transaction, or a stockholder approved disposition of all or substantially all of our assets in complete liquidation or dissolution, the following occurs with respect to stock options granted under the 1995 Plan:

Each outstanding option automatically accelerates so that each option becomes fully exercisable for all of the shares of common stock at the time subject to such option immediately prior to the corporation transaction;

All outstanding repurchase rights automatically terminate and the shares of common stock subject to those terminated rights immediately vest in full;

Immediately following a corporate transaction, all outstanding options terminate and cease to be outstanding, except to the extent assumed by the successor corporation and thereafter adjusted in accordance with the 1995 Plan; and

In the event of an “involuntary termination” of an optionee’s “service” with us within 18 months following a corporate transaction, any fully-vested options issued to such holder remain exercisable until the earlier of (i) the expiration of the option term, or (ii) the expiration of one year from the effective date of the involuntary termination.

On May 4, 2010, the Board adopted and approved amendments to all outstanding stock option award agreements under our 1995 Plan to modify the definition of “Corporate Transaction” as defined in the 1995 Plan to include the following:

Any “person” (as defined in Section 3(a)(9) of the Exchange Act, and as modified in Section 13(d) and 14(d) of the Exchange Act) other than (A) the Company or any of its subsidiaries, (B) any employee benefit plan of the Company or any of its subsidiaries, (C) or any Affiliate, (D) a company owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company, or (E) an underwriter temporarily holding securities pursuant to an offering of such securities (a “Person”), becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the shares of voting stock of the Company then outstanding;

A merger or consolidation transferring greater than 50% of the voting power of our outstanding securities to a person or persons different from the persons holding those securities immediately prior to such transaction;

The disposition of all or substantially all of our assets, other than to the current holders of 50% or more of the voting power of our voting securities; or

The disposition of all or substantially all of our assets in a complete liquidation or dissolution.

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Individuals who, as of the effective date, constitute 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 by the Board, was approved by a vote of at least a majority of the directors then comprising the incumbent Board shall be considered as though such individual were a member of the incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an election contest with respect to the election or removal of directors or other solicitation of proxies or consents by or on behalf of a person other than the Board.

The 2004 Plan

Under our 2004 Plan, unless otherwise provided in an award or the award agreement, if certain events in the definition of a “Change of Control,” including consummation of any merger, organization, business combination or consolidation of us or one of our subsidiaries transferring greater than 50% of the voting power of our outstanding securities to a person(s) different from the persons holding those securities immediately prior to such transaction, the disposition of all or substantially all of our assets, other than to current holders of 50% or more of the voting power of our voting securities, and the approval by the stockholders of a plan of complete liquidation or dissolution occurred, then the following would result:

All options and stock appreciation rights then outstanding become immediately vested and fully exercisable;

All restrictions and conditions of all restricted stock and phantom stock then outstanding are deemed satisfied, and the restriction period or other limitations on payment in full with respect thereto are deemed to have expired, as of the date of the Change of Control; and

All outstanding performance awards and any other stock or performance-based awards, which would include our annual cash performance awards, become fully vested, deemed earned in full and are to be promptly paid to the participants as of the date of the Change of Control.

On May 4, 2010, the Board adopted and approved new award agreements and amendments to all outstanding stock option and restricted stock award agreements under the 2004 Plan. The events which would cause a Change of Control to occur for all awards outstanding under the 2004 Plan were modified to include the following as follows:

Any “person” (as defined in Section 3(a)(9) of the Exchange Act, and as modified in Section 13(d) and 14(d) of the Exchange Act) other than (A) the Company or any of its subsidiaries, (B) any employee benefit plan of the Company or any of its subsidiaries, (C) or any Affiliate, (D) a company owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company, or (E) an underwriter temporarily holding securities pursuant to an offering of such securities, becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the shares of voting stock of the Company then outstanding;

A merger, organization, business combination or consolidation of us or one of our subsidiaries transferring greater than 50% of the voting power of our outstanding securities to a person or persons different from the persons holding those securities immediately prior to such transaction;

The disposition of all or substantially all of our assets, other than to the current holders of 50% or more of the voting power of our voting securities; or

The approval by the stockholders of a plan for the complete liquidation or dissolution.

Individuals who, as of the effective date of the 2004 Plan, constitute 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 by the Board, was approved by a vote of at least a majority of the

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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 election contest with respect to the election or removal of directors or other solicitation of proxies or consents by or on behalf of a person other than the Board.

Additionally, under the 2004 Plan, if approved by our Board prior to or within 30 days after such a Change of Control, the Board has the right for a 45-day period immediately following the Change of Control to require all, but not less than all, participants to transfer and deliver to us all awards previously granted to the participants in exchange for an amount equal to the cash value of the awards.

The 2010 Plan

The 2010 Plan was adopted by the Board on March 4, 2010 subject to stockholder approval and was approved by the majority of our stockholders at the 2010 Annual Meeting of Stockholders. Under our 2010 Plan, unless otherwise provided by the Committee, upon an event of a Change of Control (as defined below):

All outstanding options, stock appreciation rights and restricted stock units shall immediately become fully vested and exercisable in full;

The restriction period of any restricted stock or phantom stock then outstanding shall immediately be deemed satisfied and the restrictions shall expire; and

The performance goals established under any Performance Award will be deemed to have been met in full for all performance periods.

The 2010 Plan defines a change of control to include:

A “change in the ownership of the Company,” which shall occur on the date that any person or group acquires more than 50% of our common stock, other than transactions by us or by one of our affiliates, our employee benefit plans, acquisitions by current investors or by an underwriter;

A “merger of the Company,” which shall occur on the date a merger, reorganization, or other similar business combination results in our current equity holders owning less than 50% of the combined voting power of our equity securities following the transaction;

The “change in the effective control of the Company,” which shall occur on the date that either (a) any person or group acquires ownership of the common stock possessing more than 35% of the total voting power of our common stock, unless such an acquisition was conducted by one of our employee benefit plans, our investors for financing purposes, any merger or acquisition with a company-controlled entity, or an underwriter, or (b) the majority of the members of our Board of Directors are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of directors prior to such appointment or election; or

A “change in the ownership of a substantial portion of the Company’s assets,” which shall occur on the date that any person or group acquires 40% or more of the fair market value of our assets.

Payment of an award needs to comply with Section 409A of the Code in order to prevent a 20% excise tax from being imposed on such an award. A “Change of Control” above shall be defined as an event specifically noted within Section 409A of the Code or the regulations thereto.

Under the 2010 Plan, the Compensation Committee also has the authority and the discretion to cash out awards in the forty-five day period following a change of control; the 2010 Plan provides for various methods of calculating the fair market value of an award prior to cash out depending on the type of change of control that has occurred.

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The table below describes and quantifies the incremental compensation that would be payable by the Company to each Named Executive Officer in the event of a change in control or a termination of employment. For the purposes of the following table, the change in control or termination of employment is assumed to have occurred on December 31, 2012, the last business day of fiscal year 2012. Payments for change in control or termination of employment arise out of the Company’s Equity Plans, Severance Plan, and Change in Control agreements. For more information on these plans and agreements and the specific events that result in payments in connection with a change in control or termination of employment, see above under “Severance Pay Plan,” “Change in Control Agreements,” and “Change in Control Provision within the Equity Plans.” The Severance Plan and the Change in Control Agreements are mutually exclusive and upon a qualifying event that would trigger a termination of employment under both the Severance Plan and the Change in Control Agreements, the officer shall not be entitled to receive payment under both the Severance Plan and the Change in Control Agreement. In such an event, the Change in Control Agreements would govern and no payments would be payable under the Severance Plan.

The analysis contained in this section does not consider or include payments made to the Named Executive Officer with respect to contracts, agreements, plans or arrangements to the extent that they do not discriminate in scope, term or operation, in favor of the Named Executive Officers and that they are generally available to all full-time salaried employees, including any rights or payments under our Equity Plans, health and welfare benefits and group insurance coverage.

Potential Payments upon Change in Control or Termination of Employment

Name

  Type of Payment  Severance Plan:
Qualifying
Termination Event
   Change in Control: No
Termination Event (1)
   Change in Control:
Termination Event (2)
 

Roger D. Linquist

  Cash Severance  $6,067,923    $1,337,000    $5,730,000  
  Benefits  $17,265      $17,265  
  Equity Incentives    $5,176,085    $5,176,085  
  Total  $6,085,188    $6,513,085    $10,923,350  

Thomas C. Keys

  Cash Severance  $2,263,181    $529,200    $2,234,000  
  Benefits  $25,660      $25,660  
  Equity Incentives    $2,688,347    $2,688,347  
  Total  $2,288,841    $3,217,547    $4,948,007  

J. Braxton Carter

  Cash Severance  $1,972,088    $432,800    $1,947,600  
  Benefits  $25,330      $25,330  
  Equity Incentives    $2,070,260    $2,070,260  
  Total  $1,997,418    $2,503,060    $4,043,190  

Mark A. Stachiw

  Cash Severance  $1,551,133    $330,750    $1,543,500  
  Benefits  $25,660      $25,660  
  Equity Incentives    $1,248,254    $1,248,254  
  Total  $1,576,793    $1,579,004    $2,817,414  

Dennis T. Currier

  Cash Severance  $1,002,592    $201,500    $1,023,000  
  Benefits  $25,660      $25,660  
  Equity Incentives    $560,551    $560,551  
  Total  $1,028,252    $762,051    $1,609,211  

(1)

Upon a Change in Control, all outstanding unvested stock options and restricted stock attributable to the NEO would immediately vest and any annual cash performance awards attributable to each Named Executive Officer would immediately vest and be deemed earned in full at the target level as of the date of the Change in Control without regard to any applicable performance cycle, restriction or condition being completed or satisfied. Such vesting and payment is not conditioned on a termination of employment. These

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amounts reflect the value of the unvested outstanding awards of each Named Executive Officer upon an occurrence of a Change in Control. The closing price per share of the Company’s common stock on December 31, 2012, $9.94, was used for the purpose of the valuations. For an example of the nature and amounts of the annual cash performance awards granted to our Named Executive Officers in 2012, see the column entitled “Non-Equity Incentive Plan Compensation” in the “2012 Summary Compensation Table.”

(2)Upon a Change in Control, in addition to all the awards attributable to the NEO immediately vesting as noted in (1) above, if a resulting termination of employment also occurs, the Named Executive Officer would be entitled to receive the Cash Severance consisting of the Lump Sum Severance Payment described in more detail in “Change in Control Agreements” above, together with the Benefits consisting of certain health and dental benefits. Additionally, if a resulting termination event occurred, each Named Executive Officer would be paid any amounts owed to him as of the date of termination, including among other things, accrued and unpaid salary, reimbursement of business expenses, accrued vacation pay, plus any vested and unpaid annual cash performance award, plus any pro-rata portion of his annual cash incentive award for the year in which he was terminated, which payments are not included in this table.

Effect of the Business Combination

The “Potential Payments upon Change in Control or Termination of Employment” table above represents the estimated benefits the Named Executive Officers would have received pursuant to their change in control agreements had a Change in Control occurred on December 31, 2012. The following paragraphs describe the actual benefits the Named Executive Officers became entitled to receive in connection with the consummation of the Business Combination.

When Messrs. Linquist and Stachiw left the Company upon consummation of the Business Combination, they became entitled to receive the following benefits. Mr. Linquist became entitled to receive: (i) $6,784,830, which represents the value of his outstanding stock options and restricted stock that automatically vested upon consummation of the Business Combination; (ii) $1,390,480, which represents the value of his annual cash performance award that became vested and deemed earned in full at the target level; and (iii) $6,569,190, which represents the value of his Lump Sum Severance Payment and Benefits described above. Mr. Stachiw became entitled to receive: (i) $1,642,158, which represents the value of his outstanding stock options and restricted stock that automatically vested upon consummation of the Business Combination; (ii) $343,950, which represents the value of his annual cash performance award that became vested and deemed earned in full at the target level; and (iii) $1,788,748, which represents the value of his Lump Sum Severance Payment and Benefits described above.

Messrs. Keys, Carter and Currier, whose employment continued after the consummation of the Business Combination, became entitled to receive the following benefits. Mr. Keys became entitled to receive: (i) $3,281,827, which represents the value of his stock options and restricted stock that automatically vested upon consummation of the Business Combination and (ii) $550,350, which represents the value of his annual cash performance award that became vested and deemed earned in full at the target level. Mr. Carter became entitled to receive: (i) $2,765,476, which represents the value of his stock options and restricted stock that automatically vested upon consummation of the Business Combination and (ii) $450,080, which represents the value of his annual cash performance award that became vested and deemed earned in full at the target level. Mr. Currier became entitled to receive: (i) $794,278, which represents the value of his stock options and restricted stock that automatically vested upon consummation of the Business Combination and (ii) $209,560, which represents the value of his annual cash performance award that became vested and deemed earned in full at the target level.

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Security Ownership of Principal Stockholders

The following table sets forth information as of May 8, 2013March 31, 2015 regarding the beneficial ownership of each class of T-Mobile US, Inc. outstanding capitalcommon stock by:

 

each of our directors;

 

each of our Named Executive Officer;Officers;

 

all of our directors and executive officers as a group; and

 

each person known by us to beneficially own more than 5% of the outstanding shares of our common stock.

The beneficial ownership information has been presented in accordance with SEC rules and is not necessarily indicative of

beneficial ownership for any other purpose. Unless otherwise indicated below and except to the extent authority is shared by spouses under applicable law, to our knowledge, each of the persons set forth below has sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them.him or her. The number of shares of common stock used to calculate each listed person’s percentage ownership of each such class includes the shares of common stock underlying options or other convertible securities held by such person that are exercisable or vest within 60 days after May 8, 2013.March 31, 2015. None of our directors or executive officers owns any of our outstanding shares of 5.50% Mandatory Convertible Preferred Stock, Series A, as of March 31, 2015.

 

           Common Stock Beneficially Owned          
   Number  Percentage 

Directors and Named Executive Officers (1):

   

W. Michael Barnes (2)

   195,915    *  

J. Braxton Carter (3)

   896,111    *  

Srikant Datar

   -   

Lawrence H. Guffey

   -   

Timotheus Höttges

   -   

Raphael Kübler

   -   

Thorsten Langheim

   -   

John J. Legere

   -   

René Obermann

   -   

James N. Perry Jr. (4)(5)

   15,450,556    2.13

Teresa A. Taylor

   -   

Kelvin R. Westbrook

   -   

Roger D. Linquist (6)

   3,399,362    *  

Thomas C. Keys (7)

   873,779    *  

Mark A. Stachiw (8)

   216,052    *  

Dennis T. Currier (9)

   70,000    *  

All directors and executive officers as a group (21 persons) (10)

   17,416,361    2.40

Beneficial Owners of More Than 5%:

   

Deutsche Telekom AG

Friedrich-Ebert-Alle 140

53113 Bonn, Germany

   535,286,077    73.84

   Common Stock Beneficially Owned 
        Number       Percentage 
Directors, Nominees and Named Executive Officers (1)    
James C. Alling   21,083    
W. Michael Barnes(2)   200,719     *  
J. Braxton Carter(3)   585,364     *  
Thomas Dannenfeldt   —       *  
Srikant M. Datar(4)   12,804     *  
Lawrence H. Guffey   4,804     *  
Timotheus Höttges   —       *  
Bruno Jacobfeuerborn   —       *  
Gary A. King   4,248    
Raphael Kübler   —       *  
Thorsten Langheim   —       *  
John J. Legere   52,708     *  
G. Michael Sievert   8,938    
Teresa A. Taylor   4,804     *  
Kelvin R. Westbrook   4,804     *  
All directors and executive officers as a group (21 persons)   1,471,577     *  
Beneficial Owners of More Than 5%:    

Deutsche Telekom AG(5)

    Friedrich-Ebert-Alle 140

    53113 Bonn, Germany

   535,286,077     65.95
*

Represents less than 1%

 

(1)

Unless otherwise indicated, the address of each person is c/o T-Mobile US, Inc., 12920 SE 38th Street, Bellevue, Washington 98006.

 

(2)

Includes 171,643122,743 shares of common stock issuable upon exercise of options.

 

(3)

Includes 761,800512,800 shares of common stock issuable upon exercise of options.

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(4)Includes 147,900 shares of common stock issuable upon exercise of options and 12,000 shares of common stock held directly by Mr. Perry. All other shares attributed to Mr. Perry are owned directly by Madison Dearborn Capital Partners IV, L.P. (“MDCP IV”) and Madison Dearborn Partners IV, L.P. (“MDP IV”). Mr. Perry is a Managing Director of the general partner of MDP IV and a limited partner of MDP IV, and therefore may be deemed to share voting and investment power over such shares and therefore to beneficially own such shares. Mr. Perry disclaims any beneficial ownership of such shares, except to the extent of his pecuniary interest in such shares arising from his interests in MDP IV.

 

(5)(4)MDCP IV and MDP IV may be deemed to be a “group” under Section 13d-3 of the Exchange Act and the shares held by MDCP IV may be deemed to be beneficially owned by MDP IV, the sole general partner of MDCP IV. As the sole members of a limited partner committee of MDP IV that has the power, acting by majority vote, to vote or dispose of the shares held directly by MDCP IV, Paul J. Finnegan and Samuel M. Mencoff have shared voting and investment power over such shares. Messrs. Finnegan and Mencoff, and MDP IV each disclaims any beneficial ownership of any shares held by MDCP IV, except to the extent of their respective pecuniary interests therein.

(6)

Includes 1,737,000 shares of common stock issuable upon exercise of options, 1,272,362 shares of common stock held directly by Mr. Linquist, and 390,0008,000 shares of common stock held by THCT Partners, LTD, a partnership with which Mr. Linquist is affiliated, may be deemed to be a member of a “group” under Section 13d-3 of the Exchange Act, and may be deemed to share voting and/or investment power with respect to the shares owned by such entities. Mr. Linquist disclaims beneficial ownership of such shares, except to the extent of his interest in such shares arising from his interests in THCT Partners, LTD. Mr. Linquist has dispositive power with respect to the common stock held by THCT Partners, LTD.Datar Investment LLC.

 

(7)(5)Includes 873,779

According to the Schedule 13D/A filed by Deutsche Telekom on January 15, 2014, reflecting ownership of 535,286,077 shares of common stock issuable upon exerciseas of options.December 31, 2013.

 

(8)Includes 216,052 shares
T-Mobile      Notice of common stock issuable upon exercise of options.2015 Annual Meeting and Proxy Statement37


LOGO

(9)Includes 70,000 shares of common stock issuable upon exercise of options.

(10)Includes shares beneficially owned by our directors and current executive officers.

TRANSACTIONS WITH RELATED PERSONS AND APPROVALRelated Person Transaction Policy

We have adopted a written policy on the review and approval of transactions with related persons (the “Related Person Transaction Policy”). Under SEC rules, we must disclose certain transactions, since the beginningRelated Person Transaction Policy, any proposed or existing transaction, arrangement or relationship involving a director, director nominee, executive officer, or a member of the last fiscal year or currently proposed transactions, in which (a) the Company is a participant (b) the amount involved exceeds $120,000 and (c) a director, executive officer, director nominee (or an immediate family member of any of the foregoing)foregoing, or a holder of greater than 5% owner of our common stock (a “related person”) must be reviewed by our General Counsel to determine whether such transaction is a related person transaction. A “related person transaction” is any transaction, arrangement or relationship or any series of transactions, arrangements or relationships in which:

the Company, or any of its subsidiaries, is, was or will be a participant;

the aggregate amount involved exceeds, or may be expected to exceed, $120,000; and

any related person has, had or will have a direct or indirect material interest.

Fiscal 2012 Transactions

Corey A. Linquist co-foundedA transaction, arrangement or relationship that is determined to be a related person transaction must be submitted to our Audit Committee for review, approval or ratification based on certain factors, including the Company and is the son of Roger D. Linquist, who served as our Chief Executive Officer and Chairman of our Board prior to the consummation of the Business Combination. From January 2001 until the consummation of the Business Combination, Mr. Corey Linquist served as our Vice President and General Manager, Sacramento. In 2012, we paid Mr. Corey Linquist $302,483 in base salary and an annual cash performance award payment for 2012 of $140,200, and we granted him options (with a ten-year term) to purchase up to 30,000 shares of our common stock at an exercise price of $9.55 per share (which exercise price has not been adjusted to give effect to the reverse stock split effected in connection with the Business Combination). Additionally, we awarded Mr. Linquist 15,000 shares of restricted stock in 2012.

Phillip R. Terry is the son-in-law of Roger D. Linquist, who served as our Chief Executive Officer and Chairman of our Board prior to the consummation of the Business Combination. From March 2009 until the consummation of the Business Combination, Mr. Terry served as our Senior Vice President, Corporate Marketing. Mr. Terry previously served as our Vice President of Corporate Marketing from December 2003 to February 2009. In 2012, we paid Mr. Terry $289,536 in base salary, and an annual cash performance award payment for 2012 of $211,300, and we granted him options (with a ten-year term) to purchase 45,000 shares to

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acquire our common stock at an exercise price of $9.55 per share (which exercise price has not been adjusted to give effect to the reverse stock split effected in connection with the Business Combination). Additionally, we awarded Mr. Terry 15,000 shares of restricted stock in 2012.

A private equity fund advised by Madison Dearborn Partners LLC, was one of our greater than 5% stockholders in 2012. Investment funds advised by Madison Dearborn Partners, LLC own:following:

 

Less than 20%the nature and terms of the related person transaction and the terms of the related person transaction;

the extent of the related person’s interest in New Asurion, or Asurion, a company that provides services to our customers, including handset insurance programs. Pursuant to our agreement with Asurion, we bill our customers directly for these services and we remit the fees collected from our customers for these services to Asurion. As compensation for providing this billing and collection service, Asurion paid the Company approximately $11.9 million in fiscal year 2012. Asurion also purchased replacement handsets through our third-party distributor for approximately $32.0 million since January 1, 2012.transaction;

 

Less than 20% equity interest in Univision Communications, which we paid approximately $7.8 million in fiscal year 2012the business reasons for advertising services.the Company to enter into the related person transaction;

 

Less than 60% interestwhether the transaction involves the provision of goods or services to the Company that are available from unaffiliated third-parties;

whether the terms are comparable to those generally available in NextG Networks, or NextG, through April 2012. The Company paid NextG approximately $15.9 million for DAS services between January 1, 2012 and April 10, 2012.arms’-length transactions with unaffiliated third parties;

Each of these agreements

whether the related person transaction is consistent with the best interests of the Company; and

in the case of any related person transaction involving an outside director of the Company, was negotiated at arms-length,the potential impact of such related person transaction on such outside director’s independence and we believe each represents market terms.the Company’s continued compliance with the requirements under the Exchange Act, the listing rules of the NYSE or any other exchange on which the Company’s securities are traded, or other applicable laws and regulations.

If the proposed related person transaction is with Deutsche Telekom or any of its affiliates while the Stockholder’s Agreement is in effect, the Audit Committee must unanimously approve such transaction or must submit such transaction to the full Board of Directors for approval.

Transactions with Deutsche Telekom

The

Certain of the related person transactions with Deutsche Telekom or its affiliates described below were not required to be approved in accordance with our current Related Person Transaction Policy because they were entered into prior to or in connection with the consummation of the Business Combination, at which time Deutsche Telekom became a “related person” and our current

Related Person Transaction Policy became effective. Each of the related person transactions with Deutsche Telekom or its affiliates described below that were entered into from and after the consummation of the Business Combination were reviewed and approved in accordance with our current Related Person Transaction Policy.

Stockholder’s Agreement

On

Pursuant to the Stockholder’s Agreement we entered into with Deutsche Telekom on April 30, 2013 the transactions contemplated byin connection with the Business Combination, Agreement by and among Deutsche Telekom, Global, Holding, T-Mobile USA, and MetroPCS were consummated. Pursuant to the terms of Business Combination Agreement:

our certificate of incorporation was amended and restated to, among other things, effect a recapitalization that included a reverse stock split pursuant to which each share of common stock outstanding as of the effective time of the reverse stock split, now represents one-half of a share of our common stock;

as part of the recapitalization, MetroPCS made a payment in cash, which we refer to as the cash payment, in the aggregate amount of $1.5 billion, without interest (or approximately $4.049 per share pre-reverse stock split of MetroPCS common stock), to the record holders of our common stock immediately following the effective time of the reverse stock split;

immediately following the cash payment, Deutsche Telekom’s subsidiary, Holding, transferred to us all of the shares of capital stock of T-Mobile USA in consideration for newly-issued shares of common stock representing approximately 74% of our outstanding common stock on a fully-diluted basis;

our name was changed from “MetroPCS Communications, Inc.” to “T-Mobile US, Inc.”; and

we and Deutsche Telekom entered into a Stockholder’s Agreement, which we refer to as the Stockholder’s Agreement, which sets forthgranted certain governance and other rights ofto Deutsche Telecom, as well as certain limits on Deutsche Telekom’s ability to transfer our shares of common stock and engage in certain competitive activities.

In addition, following the closing of the transactions summarized above, the successor to MetroPCS, Inc., a direct wholly-owned subsidiary of MetroPCS, merged with and into its direct wholly-owned subsidiary MetroPCS Wireless, Inc., with MetroPCS Wireless, Inc. continuing as the surviving entity and, immediately thereafter, MetroPCS Wireless, Inc. merged with and into T-Mobile USA, with T-Mobile USA continuing as the surviving entity and our wholly-owned subsidiary. We refer to these transactions collectively as the Business Combination.

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Stockholder’s Agreement

Pursuant to the Business Combination Agreement, the CompanyTelekom and Deutsche Telekom entered into a Stockholder’s Agreementagreed to certain restrictions, as outlined below:

So long as Deutsche Telekom’s stock ownership percentage is at the completion of the transaction. The summary in this section and elsewhere in this Proxy Statement is qualified in its entirety by reference to the Stockholder’s Agreement.

Board Representation

Pursuant to the Stockholder’s Agreement,least 10%, Deutsche Telekom generally has the right to designate as nominees for election to our Board of Directors a number of individuals each of which we referin proportion to as a Deutsche Telekom designee, equal to the percentage of the our common stock and other capital stock entitled to vote generally in the election of directors beneficially owned by Deutsche Telekom, orits stock ownership percentage, multiplied by the number of directors on our Board if there were no vacancies, rounded to the nearest whole number. Pursuant to the Stockholder’s Agreement, each Deutsche Telekom designee must not be prohibited or disqualified from serving as a director on the Company’s Board pursuant to any rule or regulation of the SEC, the NYSE or any other or additional exchange on which securities of the Company are listed or by applicable law. Pursuant to the Stockholder’s Agreement, weWe and Deutsche Telekom have agreed to use our reasonable best efforts to cause the Deutsche Telekom designees to be elected to our Board. In addition, the Stockholder’s Agreement provides that each

Each committee of the Board shall include in its membership a number of Deutsche Telekom designees in proportion to its stock ownership percentage, rounded to the nearest whole number, except to the extent such membership would violate applicable securities laws or stock exchange rules. However, no committee of the Board may consist solely of directors who are also officers, employees, directors or affiliates of Deutsche Telekom. Deutsche Telekom will have these board designation rights as long as Deutsche Telekom’s stock ownership percentage is 10% or more of the outstanding shares of our common stock.

ownership percentage, rounded to the nearest whole number, except to the extent such membership would violate applicable securities laws or stock exchange rules. No committee of the Board may consist solely of directors who are also officers, employees, directors or affiliates of Deutsche Telekom. We and Deutsche Telekom have agreed to use our reasonable best efforts to cause at least three members of our Board to be considered “independent” under SEC and NYSE rules, including for purposes of Rule 10A-3 promulgated under the Exchange Act.

If at any time the number of Deutsche Telekom designees then serving as directors on our Board or as members of any committee of our Board exceeds the number of Deutsche Telekom designees that Deutsche Telekom is entitled to designate, the Stockholder’s Agreement requires Deutsche Telekom to cause the number of Deutsche Telekom designees then serving as directors on our Board or as members of such committee of the our Board representing such excess to resign immediately as directors or committee members, as applicable.

Under the Stockholder’s Agreement, we and Deutsche Telekom have agreed to use our reasonable best efforts to cause at least three members of our Board to be considered “independent” under SEC and NYSE rules, including for purposes of Rule 10A-3 promulgated under the Exchange Act.

Specified Actions

Pursuant to the Stockholder’s Agreement, asSo long as Deutsche Telekom beneficially owns 30% or more of the outstanding shares of our common stock, we will not take the following actions without Deutsche Telekom’s prior written consent which consent Deutsche Telekom may withhold in its sole discretion:

create, incur, issue, assume or otherwise become liable for (including through a merger, acquisition or otherwise) or refinance or guarantee any indebtedness (excluding any permitted debt, as defined in the Stockholder’s Agreement) that would result in us and our subsidiaries, on a consolidated basis, having or being liable for indebtedness in an aggregate principal amount that would result in the debt to cash flow ratio, as defined in the Deutsche Telekom notes indenture governing the $11.2 billion notes described in “Financing Arrangements” below, for our most recently ended four full fiscal quarters for which financial statements are available to be greater than 5.25 to 1.0 on a pro forma basis as if the additional indebtedness had been incurred at the beginning of such four-quarter period;

take any action or enter into any transaction that would reasonably be expected to result in a breach of or default under any credit agreement, indenture, note or similar instrument or security to which Deutsche Telekom or any of its affiliates is a party or is bound;

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acquire (including by way of merger, recapitalization, reorganization, liquidation or dissolution) any business, debt or equity interests, operations or assets of any person, or make any investment in or loan to any person, in any single transaction or series of related transactions (excluding the acquisition of products and equipment in the ordinary course of business), for consideration in excess of $1 billion;

sell, lease, transfer, encumber (other than permitted liens, as defined in the Stockholder’s Agreement) or otherwise dispose of (including by way of merger, recapitalization, reorganization, liquidation or dissolution) any division, business, or operations of the Company or any of our subsidiaries, or any equity interests of the Company or any of our subsidiaries, in any single transaction or series of related transactions, for consideration in excess of $1 billion;

change the size of our Board of Directors;

issue any equity or equity-linked securities or other voting securities of the Company or any of our subsidiaries, in any single transaction or series of related transactions, (a) constituting 10% or more of our then outstanding shares of common stock (other than grants of incentive awards to officers or employees of the Company or our subsidiaries that are approved by our board or the applicable committee thereof or issuances of securities to us or any of our wholly-owned subsidiaries) or (b) for the purpose of redeeming or purchasing any indebtedness of the Company held by Deutsche Telekom or its affiliates;

except as required in our governing documents, repurchase or redeem any of our equity (or equity-based) securities or any of our non-wholly-owned subsidiaries, or make any extraordinary or in-kind dividend with respect to any of our equity (or equity-based) securities or any such securities of any of our subsidiaries, other than a dividend on a pro rata basis with respect to all of our stockholders, or a dividend to us or any of our wholly-owned subsidiaries; or

hire, or terminate without cause, our Chief Executive Officer, or agree to do so.

In addition, we are not permitted to amendtake certain actions, including the incurrence of debt (excluding certain permitted debt) if our governing documents in any manner that could limit, restrict or adversely affect Deutsche Telekom or its rights underconsolidated ratio of debt to cash flow for the Stockholder’s Agreement as long Deutsche Telekom beneficially owns 5% or more of the outstanding shares of the Company’s common stock.most recently

38


Debt DefaultsTRANSACTIONS WITH RELATED PERSONS AND APPROVAL

ended four full fiscal quarters for which financial statements are available would exceed 5.25 to 1.0 on a pro forma basis, the acquisition of any business, debt or equity interests, operations or assets of any person for consideration in excess of $1 billion, the sale of any of the Company’s or its subsidiaries’ divisions, businesses, operations or equity interests for consideration in excess of $1 billion, any change in the size of our Board of Directors, the issuances of equity securities in excess of 10% of our outstanding shares or to repurchase debt held by Deutsche Telekom, the repurchase or redemption of equity securities or the declaration of extraordinary or in-kind dividends or distributions other than on a pro rata basis, or the termination or hiring of our Chief Executive Officer.

Pursuant to the Stockholder’s Agreement, we are required to

We must notify Deutsche Telekom any time it is reasonably likely that we will default on any indebtedness with a principal amount greater than $75 million which we refer to as a potential default. Thereupon,and Deutsche Telekom will have the right, but not the obligation, to provide us new debt financing up to the amount of the indebtedness that is the subject of the potential default plus any applicable prepayment or other penalties, on the same terms and conditions as such indebtedness (together with any waiver of the potential default). If Deutsche Telekom elects to provide us with the new debt financing, we must take any actions reasonably requested by Deutsche Telekom (a) to prepare documentation reflecting the terms and conditions of the new debt financing; (b) to repay the indebtedness that is the subject of the potential default; and (c) to take any other action necessary or desirable to avert the potential default.

Information

As long as Deutsche Telekom beneficially owns 10% or more of the outstanding shares of our common stock, we must provide Deutsche Telekom with the followingcertain information and consultation rights: (a) Deutsche Telekom will be entitled to consult with our officers with respect to our business and financial matters, including management’s proposed annual operating plans, and upon request, members of management will meet with representatives of Deutsche Telekom at mutually agreeable times and places for such consultation, including to review progress in achieving said plans; (b) we will furnish Deutsche Telekom with such available financial and operating data and other information with respect to our business and properties and the business and properties of our subsidiaries as Deutsche Telekom may reasonably request; and (c) Deutsche Telekom will be entitled to inspect all of our books and records and facilities and properties at reasonable times and intervals.

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Subject to the requirements of applicable law, regulations and rules, Deutsche Telekom generally has agreed to, and to cause its representatives and its Deutsche Telekom designees to, keep confidential all of our information and that of our affiliates obtained by Deutsche Telekom and its Deutsche Telekom designees,rights, subject to certain exceptions. Deutsche Telekom also has agreed to cause its controlled affiliates, representatives, and directors on our Board of Directors that are its affiliates to, comply with applicable law regarding insider trading in our securities to the extent any of them is in possession of information of the Company and its affiliates.confidentiality restrictions.

Director Consent Rights

During the term of the Stockholder’s Agreement, Deutsche Telekom is not permitted to, and is required to cause the Deutsche Telekom designees then serving as directors on our Board of Directors not to, support, enter into or vote in favor of any controlling stockholder transaction, between, or involving both (a) the Company and (b) Deutsche Telekom or an affiliate of Deutsche Telekom, unless such transaction is approved by a majority of the directors on our Board, which majority includes a majority of the directors on our Board that are not affiliates of Deutsche Telekom. In addition, Deutsche Telekom has agreed thatAugust 2013, the Company (upon the approval of a majority of the directors on our Board, that arewhich included a majority of directors not affiliates ofaffiliated with Deutsche Telekom) and Deutsche Telekom will direct and make any determinationsagreed to waive the approval requirement described above with respect to (i) any controlling stockholder transaction in which the Company’s post-closing actions relatingamount involved does not exceed, or is not expected to exceed, $120,000; or (ii) any controlling stockholder transaction in which the adjustment of consideration underamount involved exceeds, or is expected to exceed, $120,000 that has been unanimously approved by the Business Combination Agreement.Audit Committee.

Acquisitions of the Company’s Common Stock

Pursuant to the Stockholder’s Agreement, Deutsche Telekom and its affiliates are generally prohibited from acquiring more than 80.1% of the outstanding shares of our common stock unless it makes an offer to acquire all of the then remaining outstanding shares of our common stock at the same price and on the same terms and conditions as the proposed acquisition from all other stockholders of the Company, which is either (a)(i) accepted or approved by the majority of the directors, which majority includes a majority of the directors that are not affiliates of Deutsche Telekom, or (b)(ii) accepted or approved by holders of a majority of our common stock held by stockholders other than Deutsche Telekom or its affiliates.

Lock-Up Period

Subject to certain exceptions, Deutsche Telekom is prohibited from transferring any shares of the Company’s common stock during the 18-month period after the closing of the Business Combination.

Transfers of the Company’s Common Stock

Subject to the lock-up period, Deutsche Telekom and its affiliates may freely transfer any shares of our common stock, subject to applicable law, provided that Deutsche Telekom is prohibited from transferring any shares of the Company’s common stock in any other transaction that would result in the transferee’s owning more than 30% of the outstanding shares of the Company’s common stock unless such transferee offers to acquire all of the then outstanding shares of the Company’s common stock at the same price and on the same terms and conditions as the proposed transfer.

Registration Rights

The Stockholder’s Agreement includesWe have granted Deutsche Telekom certain demand and piggyback registration rights for shares of our common stock and debt securities of the Company and its subsidiaries beneficially owned by Deutsche Telekom and acquired in connection with the Business Combination or in the future, which we refer to, collectively, as registrable securities. We must file a shelf registration statement covering all registrable securities within 30 days after the closing, and Deutsche Telekom generally will have the right to request that we file, from time to time, a registration statement or prospectus supplement to a registration statement (a) with respect to equity securities so long as it owns 5% or more of our common stock and (b) with respect to debt securities so long as it holds any debt securities issued by the Company.

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Notwithstanding the foregoing, Deutsche Telekom is subject to the following limitations with respect to its registration rights:

the expected proceeds from the sale of registrable securities to be included in any requested registration statement or prospectus supplement must be $100 million or greater;future.

 

with respect to equity securities, Deutsche Telekom must wait 90 days between requests; and

we are entitled to postpone and delay, for reasonable periods of time not in excess of 60 days, and in no event more than twice in any 12-month period, the filing or effectiveness of any such requested registration statement or prospectus supplement, if one or more executive officers of the Company determines in good faith that any such filing or the offering or sale of any equity securities thereunder would (a) impede, delay or otherwise interfere with any pending or contemplated material acquisition, disposition, corporate reorganization or other similar material transaction involving the Company, (b) based upon advice from the Company’s investment banker or financial advisor, materially and adversely impede, delay or otherwise interfere with any pending or contemplated financing, offering or sale of any class of securities by the Company, (c) require disclosure of material non-public information which, if disclosed at such time, would not be in the best interests of the Company and its stockholders, or (d) have a material adverse effect on the Company.

In addition, Deutsche Telekom has piggyback registration rights with respect to any offering initiated by the Company or any of our other stockholders. These piggyback registration rights are subject to cutback procedures in the event the piggyback offering is oversubscribed.

Any transferee of Deutsche Telekom who acquires at least 5% of either the registrable equity securities or the registrable debt securities pursuant to a transaction that is not registered under the Securities Act is entitled to enjoy the same registration rights as Deutsche Telekom as long as the registrable securities held by such transferee may not be sold or disposed of pursuant to Rule 144 under the Securities Act without volume limitations at the time when such transferee seeks to exercise its registration rights.

Non-Competition

The Stockholder’s Agreement restricts Deutsche Telekom’s ability to compete with the Company in the United States, Puerto Rico and the territories and protectorates of the United States is subject to certain restrictions during the period beginning on the date of the closing of the Business Combination and ending on the date that is two years after the date on which Deutsche Telekom beneficially owns less than 10% of the outstanding shares of the Company’s common stock. Specifically, during such period, neither Deutsche Telekom nor any of its controlled affiliates is permitted to engage in providing wireless telecommunications services through a facilities-based network in the United States, Puerto Rico and the territories and protectorates of the United States, hold licenses from the Federal Communications Commission, or the FCC, related to or necessary to provide such services, act as a reseller, dealer or distributor of such services in the United States, Puerto Rico and the territories and protectorates of the United States, or act as a mobile virtual network operator in the United States, Puerto Rico and the territories and protectorates of the United States. In addition, for the period that commenced at the closing of the Business Combination and expiringexpires on the first anniversary of the termination of the trademark license in accordance with its terms, Deutsche Telekom may not manufacture, market or distribute any products or services under, or use in any way, the trademark T-MOBILET-Mobile in connection with any of thecertain specified activities, described in the previous sentence, other than by the Company and its affiliates in accordance with the terms of the trademark license. The trademark license is more fully described below.

Trademark License

In connection with the completion of the Business Combination, the Companywe and Deutsche Telekom entered into a trademark license, pursuant to which we refer to as the trademark license. The summary in this section and elsewhere in this Proxy Statement is qualified in its entirety by reference to the trademark license.

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Pursuant to the trademark license, the Company received (a) a limited, exclusive, non-revocable and royalty-bearing license to certain T-Mobile trademarks (including Internet domains) for use in connection with telecommunications and broadband products and services in the United States, Puerto Rico and the territories and protectorates of the United States, (b) a limited, non-exclusive, non-revocable and royalty-bearing license to use certain other trademarks for use in connection with telecommunications and broadband products and services in the United States, Puerto Rico and the territories and protectorates of the United States, and (c) free of charge, the right to use the trademark “T-Mobile” as a name for the Company.

Term

The initial term of the trademark license ends on December 31, 2018. The trademark license automatically renews2018, subject to automatic renewal for an additional five year termsuccessive five-year terms unless the Company provides

we provide notice of itsour intent not to renew the trademark license.license prior to the expiration of the then-current term. Thereafter, the trademark license automatically renews for subsequent five yearfive-year periods unless the Company provideswe provide 12 months’ notice prior to the expiration of the then-current term. Additionally, the CompanyWe may terminate the trademark license at any time upon one year’s prior notice, and Deutsche Telekom can terminate the trademark license if the Company abandonswe abandon the trademarks licensed thereunder or if the Company commitswe commit a material breach. Moreover, Deutsche Telekom may terminate the trademark license under certain conditions if Deutsche Telekom’s ownership in the Company falls below 50% or if there is otherwise a change of control regarding the Company; provided, however, that in such case the parties shall first negotiate in good faith the terms of a new license agreement.

Royalty

The Company is obligated to pay Deutsche Telekom a royalty in an amount equal to 0.25%, which we refer to as the royalty rate, of the net revenue generated by products and services sold by the Company under the licensed trademarks. “Net revenues” includes all revenues generated by the Company in connection with the sale of products and services using the licensed trademarks, including inbound roaming revenue earned by the Company, but products and services sold by the Company under the MetroPCS brand or trademarks owned by the Company are excluded from the net revenue so long as licensed trademarks are not used in conjunction therewith, other than to non-prominently refer to the name of the Company. On the fifth anniversary of the trademark license, the Company and Deutsche Telekom have agreed to adjust the royalty rate to the royalty rate found under similar licenses for trademarks in the field of wireless telecommunication, broadband and information products and services in the territory through a binding benchmarking process.

Quality Control Requirements

The trademark license contains certain quality control requirements, branding guidelines and approval processes that the Company is obligated to maintain. For instance, the Company is obligated to use the licensed trademarks in accordance with the Deutsche Telekom trademark standards and guidelines and Deutsche Telekom has the right to review representative samples of products that use the licensed trademarks. Further, Deutsche Telekom must approve each advertising campaign that uses the licensed trademarks, whether in print, online or on television. Additionally, the trademark license established a brand advisory committee comprising two representatives from the Company and two representatives from Deutsche Telekom. The brand advisory committee’s purpose is to implement the trademarks standards and guidelines and establish procedures for approving advertising campaigns.

Renegotiation

The CompanyWe and Deutsche Telekom are obligated to negotiate a new trademark license in any of the following events:when (a) Deutsche Telekom has 50% or less of the voting power of the outstanding shares of capital stock of the Company or (b) any third partythird-party owns or controls, directly or indirectly, 50% or more of the voting power of the outstanding shares of capital stock of the Company, or otherwise has the power to direct or cause

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the direction of the management and policies of the Company. If the Company we

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement39


TRANSACTIONS WITH RELATED PERSONS AND APPROVAL

and Deutsche Telekom fail to agree on a new trademark license, either we or Deutsche Telekom may terminate the trademark license and such termination shall be effective, in the case of clause (a) above, on the third anniversary after notice of termination and, in the case of clause (b) above, on the second anniversary after notice of termination.

Wind Down

We have the right to continue to sell products under the licensed trademarks for a period of one year after termination or expiration of the trademark license. Additionally, MetroPCS haswe have the right to continue to use advertising materials bearing the licensed trademarks for a period of up to six months after termination or expiration of the trademark license.

IndemnificationWe are obligated to pay Deutsche Telekom a royalty in an amount equal to 0.25%, which we refer to as the royalty rate, of the net revenue (as defined in the trademark license) generated by products and Liability Limitsservices sold by the Company under the licensed trademarks. In 2014, we paid Deutsche Telekom royalties totaling approximately $57.8 million under the terms of the trademark license. On the fifth anniversary of the trademark license, the Company and Deutsche Telekom have agreed to adjust the royalty rate to the royalty rate

found under similar licenses for trademarks in the field of wireless telecommunication, broadband and information products and services in the territory through a binding benchmarking process.

The trademark license contains certain quality control requirements, branding guidelines and approval processes that the Company is obligated to maintain.

Deutsche Telekom is obligated to indemnify the Companyus against trademark infringement claims with respect to certain licensed T-Mobile trademarksmarks and has the right (but not the obligation) to indemnify us against trademark infringement claims with respect to certain other licensed trademarks. If Deutsche Telekom chooses not to defend the Companyus against trademark infringement claims with respect to certain other licensed trademarks, the Company haswe have the right to defend itselfourself against such claim. The Company isWe are obligated to indemnify Deutsche Telekom against third partythird-party claims due to the Company’s advertising or anti-competitive use by the Company of the licensed trademarks. Except for indemnification obligations and intentional misconduct, the liability of the Company and Deutsche Telekom is limited to EUR 1 million per calendar year.

Financing Arrangements

The

Senior Unsecured Notes

In connection with the Business Combination, was financed in part by the issuance ofon April 28, 2013,T-Mobile USA issued senior unsecured notes in an aggregate principal amount of $14.7 billion, as follows:

$11.2 billion of senior unsecured notes, which we refer to as the Deutsche Telekom notes, issued by T-Mobile USA (which as a result of the Business Combination became our wholly-owned subsidiary) to Deutsche Telekom to refinance certain intercompany indebtedness owed by T-Mobile USA and its subsidiaries to Deutsche Telekom and its subsidiaries (excluding T-Mobile USA and its subsidiaries); and

$3.5 billion of senior unsecured notes, which we refer to as the $3.5 billion notes, issued by MetroPCS Wireless, Inc. (which in connection with the Business Combination was merged with and into T-Mobile USA) to third-party investors.

In addition to the notes issued to finance the Business Combination, Deutsche Telekom made available for the benefit of T-Mobile USA, on the closing date of the transaction, a revolving unsecured credit facility with a maximum principal amount of $500 million, which we refer to as the working capital facility.

The $3.5 Billion Notes

On March 8, 2013, MetroPCS Wireless, Inc. agreed to sell in an unregistered private offering $1.75 billion in aggregate principal amount of its 6.250% Senior Notes due 2021 and $1.75 billion in aggregate principal amount of its 6.625% Senior Notes due 2023, which together constitute the $3.5 billion notes referred to above. The $3.5 billion notes were purchased by third party investors on March 19, 2013. A portion of the net proceeds from the sale of the $3.5 billion notes was used to repay the amount outstanding under MetroPCS Wireless, Inc.’s existing senior credit facility, to pay liabilities under related interest rate protection agreements, and to pay other related fees and expenses. The remaining proceeds from the sale of the $3.5 billion notes were available for general corporate purposes. Under the terms of the Business Combination Agreement, Deutsche Telekom agreed to backstop the sale of the $3.5 billion notes to third party investors. Because these notes were sold to third party

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investors prior to the closing of the Business Combination, Deutsche Telekom’s backstop obligation was relieved. As contemplated by the Business Combination Agreement, T-Mobile USA paid Deutsche Telekom a commitment fee equal to 50 basis points on its $3.5 billion backstop commitment in connection with the consummation of the Business Combination.

The foregoing summary of the $3.5 billion notes does not purport to be complete and is subject to, and qualified in its entirety by, the Indenture, dated as of March 19, 2013 among MetroPCS Wireless Inc., MetroPCS, Inc., the guarantors party thereto, and Deutsche Bank Trust Company Americas, as trustee, as supplemented by the First through Second Supplemental Indentures, which are filed as Exhibits 4.1, 4.2 and 4.4 to our Current Report on Form 8-K filed March 22, 2013.

The Deutsche Telekom Notes

On April 28, 2013, T-Mobile USA (which became our wholly-owned subsidiary as a result of the Business Combination) issued $11.2 billion in aggregate principal amount of senior unsecured notes, which together constitute the Deutsche Telekom notes referred to above, to Deutsche Telekom pursuant to an indenture between T-Mobile USA, the guarantors party thereto, and Deutsche Bank Trust Company Americas, as trustee. TheThese notes were issued as part of a recapitalization of T-Mobile USA pursuant to which, among other things, certain previously outstanding notes payable to Deutsche Telekom were retired. The new notes are unsecured but are guaranteed by the Company and by all of T-Mobile USA’s wholly-ownedwholly owned domestic restricted subsidiaries (other than certain designated special purpose entities, a certain reinsurance subsidiary and immaterial subsidiaries), all of T-Mobile USA’s restricted subsidiaries that guarantee certain of T-Mobile USA’s indebtedness, and any future subsidiary of the Company that directly or indirectly owns any of T-Mobile USA’s equity interests.

The notes originally issued to Deutsche Telekom notes have tenors ranging from six to ten years. In addition, the Deutsche Telekom notes are divided into (i)were comprised of five series of senior unsecured notes with interest rates that remain constant through maturity which we refer to as the non-reset notes,(the “non-reset notes”) and (ii) five series of senior unsecured notes with interest rates that will be reset two years (inat various intervals (the “reset notes”), having tenors ranging from six to ten years. In October 2013, Deutsche Telekom sold the case of the six and seven year tenor series), two and a half years (in the case of the eight and nine year tenor series) or three years (in the case of the ten year tenor series) after the issue date thereof. The no-call period with respect to each series of non-reset notes ranges from two to five years after the issuance thereof. third parties in a secondary public offering.

The no-call period with respect to each series of reset notes ranges from four to six years after the issuance thereof, which is two or three years after the applicable interest reset date of such series. Each series of Deutsche Telekomthe reset notes has an initial aggregate principal amount of $1.25 billion, except that each of the two series of Deutsche Telekomreset notes with a tenor of ten years has an initial aggregate principal amount of $600 million.

The interest rates applicable to the reset notes and the non-reset notes were determined at the closing of the Business Combination. The interest rate applicable to the reset notes will be reset at the applicable time, according to a formula the first component of which is a reference yield which is based upon (i) three indices of high-yield bonds issued by telecommunications companies (50% weight (or 2/3s weight, if qualifying securities of the type described in either (but not both) of the following clauses (ii) and (iii) are not available at the time of calculation, or 100% weight, if qualifying securities of the type described in both of the following clauses (ii) and (iii) are not available at the time of calculation)), (ii) the prices of comparable bonds issued by Sprint Nextel Corporation or any successor or assign thereof (25% weight (or 1/3 weight, if qualifying securities of the type describedspecified in the following clause (iii) are not available atindenture governing the time of calculation or zero weight if qualifying securities of the type described in this clause (ii) are not available at the time of calculation)) and (iii) the prices of T-Mobile USA’s debt securities (25% weight (or 1/3 weight, if qualifying securities of the type described in the previous clause (ii) are not available at the time of calculation or zero weight if qualifying securities of the type described in this clause (iii) are not available at the time of calculation)), all as of the applicable time (and provided that the yield of each index, bond or other qualifying security shall be increased (or decreased) for purposes of this calculation by 12.5 basis points per year, calculated to the day, by which the effective tenor of such index, bond or security (calculated as the tenor resulting in the yield to worst) is less than (or greater than) eight years. The reference yield will then be adjusted as follows: (1) plus 50 basis points, (2) plusorminus12.5 basis points per year, calculated to the day, by which the remaining tenor of the series of notes being repriced is longer or shorter than eight years;reset notes.

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(3) plus39.7 basis points (in the case of the six-year tenor series), 35.0 basis points (in the case of the seven-year tenor series), 31.6 basis points (in the case of the eight-year tenor series), 28.9 basis points (in the case of the nine-year tenor series), or 26.9 basis points (in the case of the ten-year tenor series).

The indenture governing the Deutsche Telekomreset notes contains customary events of default, covenants and other terms, including, among other things, covenants that restrict the ability of the issuer and its subsidiaries to,inter alia, among other things, pay dividends and make certain other restricted payments, incur indebtedness and issue preferred stock, create liens on assets, sell or otherwise dispose of assets, enter into transactions with affiliates and enter new lines of business. These covenants include certain customary baskets, exceptions and incurrence-based ratio tests. The Deutsche Telekom notes indenture does not contain any financial maintenance covenants.

The foregoing summary of the Deutsche Telekom notes does not purport to be complete and is subject to, and qualified in its entirety by, the Indenture, dated as of April 28, 2013 among T-Mobile USA, the guarantors party thereto, and Deutsche Bank Trust Company Americas, as trustee, as supplemented by the First through Eleventh Supplemental Indentures, which are filed as Exhibits 4.1 through 4.12 to our Current Report on Form 8-K filed May 2, 2013.

Pursuant to a Noteholder Agreement entered into by T-Mobile USA and Deutsche Telekom upon the closing of the Business Combination, Deutsche Telekom as holder of the Deutsche Telekom notes, has certain special rights, and is subject to certain special restrictions, that do not apply to other persons who may become holders of thosethe reset notes, including among other things (i) a more broadly defined change in control put right, (ii) restrictions on its ability to tender Deutsche Telekomthe notes into a change in controlchange-in-control offer following a change in control resulting from a transfer of common stock of the Company by Deutsche Telekom unless all holders of common stock are required or entitled to participate on the same terms, (iii) a right to consent to equity issuances the proceeds of which would be used to redeem reset notes held by Deutsche Telekom, and (iv) a right to consent to any redemption of the Deutsche Telekomreset notes held by Deutsche Telekom with the proceeds of any equity issuance by T-Mobile USA or the combined company.Company.

The foregoing summary of the Noteholder Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the Noteholder Agreement, dated as of April 28, 2013, by and amongDuring 2014, we paid Deutsche Telekom and T-Mobile USA, Inc., which is filed as Exhibit 4.13 to our Current Reportapproximately $321.0 million in interest on Form 8-K filed May 2, 2013.the reset notes.

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TRANSACTIONS WITH RELATED PERSONS AND APPROVAL

The Deutsche Telekom CreditWorking Capital Facility

Upon the closing of the Business Combination, T-Mobile USA and Deutsche Telekom entered into a credit agreement pursuant to which Deutsche Telekom has made available to T-Mobile USA a revolving credit facility with a maximum principal amount of $500 million, to be used for working capital and other general corporate purposes which we refer to as the working(the “working capital facility. facility”).

T-Mobile USA’s obligations under the credit agreement are unsecured but are guaranteed by the Company and each ofT-Mobile USA’s wholly-ownedwholly owned domestic restricted subsidiaries (other than certain designated special purpose entities, a certain reinsurance subsidiary and immaterial subsidiaries). The term of the working capital facility is five years after the closing date of the Business Combination.

T-Mobile USA may borrow from time to time under the working capital facility during the term. Outstanding borrowings under the facility bear interest at a variable rate based on the prime rate or eurodollar rate plus a margin ranging from 2.5% to 3.0% (for eurodollar rate loans) or 1.5% to 2.0% (for base rate loans) (depending on T-Mobile USA’s debt to cashdebt-to-cash flow ratio). At the end of the 5-yearfive-year term, all amounts outstanding under the working capital facility will be due and payable. Loans under the working capital facility may be prepaid without penalty or premium (other than customary eurodollar breakage costs) at any time.

As contemplated by the Business Combination Agreement, Deutsche Telekom was paid on May 1, 2013 an upfront commitment fee equal to $2,500,000 (0.50% of the amount of the commitment). In addition, theThe working

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capital facility requires the payment of additional commitment fees ranging from 0.25% to 0.50% (depending onT-Mobile USA’s debt to cashdebt-to-cash flow ratio) of the amount of the undrawn commitment, payable quarterly in arrears. In 2014, we paid Deutsche Telekom commitment fees of approximately $2.5 million.

The credit agreement governing the working capital facility contains customary events of default, covenants and other terms, including, among other things, restrictions on payment of dividends and the making of certain other restricted payments, incurrence of indebtedness and issuance of preferred stock, creation of liens on assets, sales or other dispositions of assets, and entry into transactions with affiliates and entry into new lines of business. If Loansloans are outstanding under the working capital facility, then T-Mobile USA will beis required to maintain a debt to cashdebt-to-cash flow ratio, oftested quarterly, as set forth in the credit agreement.

On September 3, 2014, T-Mobile and T-Mobile USA entered into Amendment No. 2 to the credit agreement with Deutsche Telekom and JP Morgan Chase Bank, N.A. (the “Amendment”). The Amendment sets the maximum debt-to-cash flow ratio at 5.00 to 1.00 for fiscal periods ending on or prior to December 31, 2014, 4.50 to 1.00 for fiscal periods ending after December 31, 2014 and on or prior to June 30, 2015 and 4.00 to 1.00 tested quarterly.for fiscal periods ending after June 30, 2015. We had no borrowings under the working capital facility in 2014.

The foregoing summaryGuarantees

Guarantee in Favor of the Credit Facility does not purportLiberty Mutual Insurance Company

In June 2011, Deutsche Telekom mandated Deutsche Bank Cologne to be complete and is subject to, and qualified in its entirety by, the Credit Agreement, dated as of May 1, 2013, amongprovide T-Mobile USA as Borrower, Deutsche Telekom, as Lender, the other lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as Administrative Agent, which is filed as Exhibit 4.14 to our Current Report on Form 8-K filed May 2, 2013.

MetroPCS Wireless Existing Notes

On December 5, 2012, MetroPCS Wireless, Inc. commencedwith a consent solicitation, which we refer to as the consent solicitation, seeking to amend the indentures governing its outstanding 7 7/8% Senior Notes due 2018 and 6 5/8% Senior Notes due 2020, which we refer to as the Wireless existing notes, so that, among other things, the consummation of the Business Combination would not be considered a change in control under these indentures. On December 14, 2012, following the receipt of the requisite consents in the consent solicitation, MetroPCS Wireless, Inc., the guarantors named therein and the trustee entered into revised supplemental indentures that govern the Wireless existing notes. Among other things, the revised supplemental indentures modified the definition of “Change in Control” so that the consummation of the Business Combination would not constitute a change in control under the indentures governing the Wireless existing notes.

Under the Business Combination Agreement, Deutsche Telekom had agreed to purchase additional notes from T-Mobile USA in an amount sufficient to satisfy any put obligations with respect to the MetroPCS existing notes in the event that the consent solicitation was not successful. As a result of the consummation of the consent solicitation and the entry into the revised supplemental indentures relating to the Wireless existing notes, Deutsche Telekom’s commitment, pursuant to the Business Combination Agreement, to purchase additional notes in an amount sufficient to satisfy such change of control obligations, was terminated. As contemplated by the Business Combination Agreement, T-Mobile USA paid Deutsche Telekom a commitment fee equal to 50 basis points on its $2.0 billion commitment in connection with the consummation of the Business Combination.

Guarantees

Deutsche Telekom’s Guarantee of Certain T-Mobile USA Obligations to Apple Inc.

Under the Deed of Guarantee, dated March 19, 2013 by Deutsche Telekomguarantee in favor of Apple Inc., Deutsche Telekom has agreed to guaranteeLiberty Mutual Insurance Company in the amount of $58 million. T-Mobile USA’s obligations to Apple Inc. under certain agreements. Deutsche Telekom’s maximum liability under the guarantee is limited to $300 million, and the guarantee will expire on June 30, 2013. In connection with the guarantee, T-Mobile USA Inc. agreed to pay Deutsche Telekom certaina guarantee fee of 0.16% of the guarantee commitment per year, payable on June 30 and

December 31 of each year. The original term of the guarantee expired on December 31, 2011, but it was subject to automatic renewals of one-year terms. We terminated the agreement in October 2014. In 2014, we paid Deutsche Telekom guarantee fees which are expected to amount to, in the aggregate approximately $800,000.

Deutsche Telekom’s Letter of Credit in Support of T-Mobile USA’s Letter of Credit Facility with US Bank N.A.

On March 29, 2013, Deutsche Telekom agreed to obtain from Deutsche Bank a standby letter of credit for the benefit of U.S. Bank National Association, or US Bank, in the amount of $60 million as support for the obligations of T-Mobile USA under a Credit Agreement between T-Mobile USA and US Bank dated as of March 29, 2013. Under the Credit Agreement, US Bank has made available to T-Mobile USA and its subsidiaries$0.5 million.

 

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a $100 million letter of credit facility. After May 31, 2013 the standby letter of credit may be increased to $80 million upon written request by T-Mobile USA. Pursuant to the agreement with Deutsche Telekom relating to the standby letter of credit, T-Mobile USA has agreed to indemnify or reimburse Deutsche Telekom for all payments or losses incurred by Deutsche Telekom in relation to any obligation it may assume in obtaining the standby letter of credit. In addition, T-Mobile USA has agreed to pay Deutsche Telekom an annual fee quarterly in arrears of 0.65% of the amount of the standby letter of credit through the term of the standby letter of credit. The standby letter of credit will expire on the earlier of US Bank discharging Deutsche Bank’s obligations to maintain the standby letter of credit, T-Mobile USA’s request of Deutsche Telekom to cancel the standby letter of credit with Deutsche Bank or December 31, 2013.

Other Agreements

The Related Person Transactionsrelated person transactions described below consist of ongoing arrangements under which the execution of transactions or the provision of services, and the payments related thereto, may vary

from period to period or may only occur from time to time, depending on the circumstances of the parties involved and the terms of the applicable arrangements.

Management Agreement, between Deutsche Telekom AG and T-Mobile USA Inc.

The Management Agreement covers certain international multinational corporation (MNC)(“MNC”) services that Deutsche Telekom provides to T-Mobile USA in the MNC segment. These services include sales, business development and account management services, marketing and bid management services, business strategy and IT services, and business solicitation services aimed towardstoward multinational enterprises. The term ofIn March 2015, the parties entered

into an amendment to the Management Agreement, expires on December 31, 2014, butwhich updated the commissions payable to Deutsche Telekom. The Management Agreement may be terminated by either party on 12 months’ notice. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $942,000$3.3 million in expenses for Deutsche Telekom’s services under this agreement.the Management Agreement.

Agreement

Discount Agreements on Inter-operator Tariffs

T-Mobile USA has entered into Discount Agreements on Discounts for Inter-OperatorInter-operator Tariffs betweenwith certain Deutsche Telekom AG and T-Mobile USA, Inc.

This agreement establishesaffiliates. The Discount Agreements establish a reciprocal discount scheme for roaming charges between T-Mobile USA and affiliates of Deutsche Telekom (except Croatian Telekom Inc.) based on inter-operator tariffs to be paid by the Home Public Mobile Network operator to the Visited Public Mobile Network operator according to their respective international roaming

agreements. The agreement willDiscount Agreements expire on June 30,December 31, 2014 unless earlier terminated in accordanceor December 31, 2015 with theyearly renewal terms of the agreement.thereafter. During the first quarter of 2013,2014, T-Mobile USA received approximately $2.9$3.7 million in net revenue and incurred approximately $1.0$2.1 million in net expenses under this agreement.these agreements.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement41


Discount Agreement between Croatian Telecom Inc. and T-Mobile USA, Inc.TRANSACTIONS WITH RELATED PERSONS AND APPROVAL

The Discount Agreement establishes a reciprocal discount scheme between T-Mobile USA and Croatian Telecom Inc., a majority-owned subsidiary of Deutsche Telekom, for roaming charges based on inter-operator tariffs to be paid by the Home Public Mobile Network operator to the Visited Public Mobile Network operator under an international roaming agreement between T-Mobile USA and Croatian Telecom Inc. The agreement will expire on June 30, 2014, but may be terminated earlier by either party upon six months’ prior written notice. During the first quarter of 2013, T-Mobile USA received approximately $14,000 in net revenue and incurred approximately $2,000 in net expenses under this agreement.

Agreement on Commercial Roaming Broker Services between Deutsche Telekom AG and T-Mobile USA Inc.

Under this agreement Deutsche Telekom and T-Mobile USA provide services to each other to fulfill the obligations of group discount contracts that Deutsche Telekom enters into from time to time with GSM network/service operatorsnegotiates, for the benefit of certain of its wireless affiliates, including T-Mobile USA.USA, referred to as “NatCos,” the terms of group roaming discount agreements with third-party network/service operators, or roaming partners. This agreement has an indefinite term, but a decision is made

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by September 30th30 of each year, whetherT-Mobile USA has the right to elect to participate inor decline to participate under the broker relationshiparrangement for the following calendar year, and the parties negotiate the scope of roaming partners inwith which Deutsche Telekom is entitled to negotiate for T-Mobile USA’s benefit. During the first quarter of 2013,If T-Mobile USA agrees to be a participating NatCo in a given calendar year, T-Mobile USA will receive and/or provide roaming services according to the terms of the group roaming discount agreements during such calendar year, and at the end of a specified settlement period, Deutsche Telekom will receive from, or make payments to, the roaming partners for T-Mobile USA and the other participating NatCos, pursuant to the payment terms of the roaming

agreements. Intercompany payments are made between Deutsche Telekom and T-Mobile USA to settle any amounts due to, or owed by, T-Mobile for roaming services under the roaming agreements.

Deutsche Telekom may realize volume discounts for roaming services based on the NatCos’ participation in the group roaming discount agreements. Deutsche Telekom also allocates its commercial roaming costs, which consist of certain strategic and financial planning costs associated with roaming transactions, to the NatCos, including T-Mobile USA. During 2014, T-Mobile USA experienced an approximately $7.0 million reduction in roaming revenues and received approximately $11.0$60.8 million in net revenue and incurred approximately $5.0 million in net expensesof expense discounts for roaming usage provided to, or delivered by, or provided to, third-party operators under this agreement. In September 2014, T-Mobile USA elected to participate in the roaming broker arrangement for calendar year 2015.

Frame Agreement for the Provision and Marketing of “Mobile Device Management” between Deutsche Telekom AG and T-Mobile USA Inc.

Pursuant to the Frame Agreement for the Provision and Marketing of “Mobile Device Management,” Deutsche Telekom grantsgranted toT-Mobile USA the right to market, resell, and license certain mobile device management services and agreesagreed to provide support related

to these services. The initial term of the agreement will expireexpired on January 7, 2015 and will automatically renew for additional one-year terms, unless earlier terminated in accordance with the terms of the agreement.2015. During the first quarter of 2013,2014, T-Mobile USA did not incur any expenses for Deutsche Telekom’s services under this agreement.

Framework Agreement for the Provision and Marketing of “Global Corporate Access” between Deutsche Telekom AG and T-Mobile USA Inc.

Pursuant to the Framework Agreement for the Provision and Marketing of “Global Corporate Access,” Deutsche Telekom provides a specific global corporate access service, based on products offered by iPass Inc., and WiFi network access services to T-Mobile USA for the purpose of resale to T-Mobile USA’s business customers in the U.S.United States. The initial termsterm of the agreement will expire

expired on February 28, 2015 and will automatically renewrenews for additional one-year terms, unless earlier terminated in accordance with the terms of the agreement. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $32,700$130,800 in expenses for Deutsche Telekom’s services under this agreement.

Addendum Number 1 to the Frame Agreement for the Supply of Software and Associated Services, among Deutsche Telekom AG, Origo Networks Corp. (d/b/a AppDirect Inc.), and T-Mobile USA, Inc.Framework Agreement.

The Addendum Number 1 (the “Addendum”) to the Frame Agreement for the Supply of Software and Associated Services (the “Frame Agreement”) constitutes a purchase order under the Frame Agreement for the implementation by AppDirect of a business services application platform for certain of T-Mobile USA’s business customers, which will be hosted and maintained by Deutsche Telekom. Among other obligations, Deutsche Telekom is responsible for the payment to AppDirect of a one-time implementation fee of $150,000 on behalf of T-Mobile USA. The initial term of the Addendum expires on April 30, 2016 and will automatically renew for two successive periods of one year each, unless earlier terminated in accordance with the terms of the Addendum.

Joint Marketing Agreement, among Deutsche Telekom AG, Choochee, Inc., and T-Mobile USA

Under the Joint Marketing Agreement, Deutsche Telekom has agreed to fund, and T-Mobile USA has agreed to develop and implement with Choochee, Inc., a wholly-owned subsidiary of Deutsche Telekom, joint marketing initiatives to market and sell T-Mobile branded Choochee products, consisting mainly of cloud based services such as VOIP, to T-Mobile USA’s B2B small business customers. Pursuant to the agreement, T-Mobile USA also grants Choochee a limited, non-exclusive, revocable, royalty-free sub-license to use and reproduce marks licensed by T-Mobile USA. The agreement expires on March 13, 2015, unless earlier terminated in accordance with the terms of the agreement.

Telecom Master Services Agreement between Deutsche Telekom North America, Inc. and T-Mobile USA Inc.

Pursuant to the Master Services Agreement, Deutsche Telekom North America, a wholly-ownedwholly owned subsidiary of Deutsche Telekom, provides international long distancelong-distance and IP transit (internet connectivity) services to

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T-Mobile USA. The Master Services

Agreement will remain in effect for so long as there remain statements of work pending. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $16.2$1.9 million in expenses for Deutsche Telekom North America’s services under this agreement.the Master Services Agreement.

Amended and Restated Application Service Provider Agreement between T-Systems North America Inc. and T-Mobile USA Inc.

T-Systems North America, Inc. (“T-Systems”), is a wholly-ownedwholly owned subsidiary of Deutsche Telekom. Pursuant to the Service Provider Agreement, T-Mobile USA is permitted to use certain e-bidding tools for construction bids on certain facilities. The initial term of the Services Agreement with T-Systems ended in 2006, but

automatically renews for successive one yearone-year terms, unless either party gives 30 days’ notice prior to the end of the term. During the first quarter of 2013,2014, T-Mobile USA did not incur any expenses for T-System’sT-Systems’ services under this agreement.the Services Agreement.

Services Agreement, between T-Systems North America, Inc. and T-Mobile USA Inc.

The

T-Mobile USA and T-Systems entered into a Services Agreement relates toon January 4, 2008, which governs the terms of certain IT support services provided by T-Systems to T-Mobile USA. In general, specific services to be provided under the Services Agreement are governed by statements of work entered into by the parties from time to time. The Services Agreement will remain in effect for so long as there remain statements of work pending, butpending. The statements of work currently pending under the Services Agreement have varying expiration terms, but they may generally be terminated upon 30 days’

notice, except for certain scopes of work in which the parties agree to limit that right. One of the statements of work pertains to providing certain operational support to a T-Mobile USA data center and is set to expire in the first quarter of 2014. In anticipation of negotiating changes to that scope of work in the second quarter of 2013 T-Mobile USA provided T-Systems with an agreement that expires in 2013 which enables T-Systems to negotiate with third parties involved with data center operations. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $15.7$20.9 million in aggregate expenses under the agreement.

In December 2014, the parties renewed the Services Agreement pursuant to a statement of work for T-System’s services under this agreement.a term terminating on January 31, 2017 unless extended by mutual written agreement by the parties.

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TRANSACTIONS WITH RELATED PERSONS AND APPROVAL

Master Agreement, between Detecon, Inc. and T-Mobile USA Inc.

Under the Master Agreement, Detecon, Inc., a wholly-ownedwholly owned subsidiary of Deutsche Telekom, provides management consulting services, primarily with regard to customer relationship and channel

management. Renewal of this agreement is currently under negotiation.The Master Agreement term ends on April 30, 2015. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $1.1 million$145,700 in expenses for Detecon’s services under this agreement.the Master Agreement.

Agreement for TIBCO Software Sub-License and Support Services between T-Systems International GmbH and T-Mobile USA Inc.

T-Systems International GmbH (“T-Systems International”) is a wholly-ownedwholly owned subsidiary of Deutsche Telekom. Pursuant to this agreement, T-Systems International grants to T-Mobile USA a sublicense to use IT network middleware software licensed by T-Systems International

from TIBCO Software B.V. and provides certain support services related thereto. The agreement expires on November 24, 2015. During the first quarter of 2013,2014, T-Mobile USA incurred approximately $3.1$1.8 million in expenses under the agreement, which amount constitutes a one-time payment for the sublicense and support services to be provided by T-Systems International during the term of the agreement.

Supply Contracts in connection with the Procurement Joint Venture of Deutsche Telekom AG and France Telecom SA

Deutsche Telekom and France Telecom SA (“FT”) are partners in a procurement joint venture called BuyIn (“BuyIn”), which enters into agreements with unaffiliated, third-party vendors that set forth certain procurement terms. Affiliates of each of Deutsche Telekom and FT may establish a relationship with BuyIn to participate in joint procurement activities. By letter agreement dated January 29, 2012, BuyIn and T-Mobile USA agreed to terms under which T-Mobile USA would have the option to participate in certain joint procurement activities. Through at least July 31, 2013, T-Mobile USA may continue to participate in such joint procurement activities.

 

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T-Mobile USA currently participates in BuyIn’s procurement arrangements with respect to two supply contracts, each of which were entered into between T-Mobile USA and an unaffiliated, third-party vendor. Pursuant to the terms of the applicable supply contract, certain purchases made by T-Mobile USA thereunder require the vendor to provide to T-Mobile USA and BuyIn “purchase vouchers” (which may be used to discount amounts owed for future purchases from the vendor). BuyIn allocates its purchase vouchers to Deutsche Telekom and FT, who may use such vouchers for their own purchases from the vendor. During the first quarter of 2013, T Mobile USA’s aggregate purchases under these supply contracts totaled approximately $600 million.

Insurance Brokerage Services providedProvided by DeTeAssekuranz-Deutsche Telekom Assekuranz-Vermittlungsgesellschaft mbH (DeTeAssekuranz)

DeTeAssekuranz, a wholly-ownedwholly owned subsidiary of Deutsche Telekom, provides certain insurance brokerage services for T-Mobile USA.

During the first quarter of 2013,2014, T-Mobile USA incurred approximately $240,000$1.0 million in expenses for DeTeAssekuranz’s services under this arrangement.

Procedures for Approval of Related Person Transactions

Current Related Person Transaction PolicySOX Tool Provided by Deutsche Telekom

Upon the consummation of the Business Combination, we modified our Related Person Transaction Policy, which we refer to as our Related Person Transaction Policy. The Related Person Transaction Policy requires that each of our directors and executive officers and persons (including entities and groups under Section 13(d) of the Exchange Act) who own, or are affiliated with an entity which owns, more than 5% of the Company’s common stock (“5% beneficial owners”), which we refer to as related persons, are expected to disclose the material facts of any proposed or existing transaction, arrangement or relationship that could potentially be considered a related person transaction (as described below) to our General Counsel (or another employee of the Company designated by the General Counsel). In addition, the Company’s accounting department, in consultation with the Company’s legal department, is required to develop and maintain controls and procedures to help identify potential related person transactions, and report any such transactions identified by the controls and procedures to our General Counsel. A related person transaction is any transaction, arrangement or relationship or any series of transactions, arrangements or relationships in which:

 

In November 2013, the Company or any our subsidiaries, is, was or will be a participant;

the aggregate amount involved exceeds, or may be expected to exceed, $120,000; and

any related person has, had or will have a direct or indirect material interest.

Under our Related Person Transaction Policy, review and approval of the potential related person transaction is carried out in three steps.

Step one is the review by our General Counsel, or the General Counsel’s designee, of the transaction,entered into an arrangement or relationship to determine whether it is a related person transaction. If after this review it is determined that the transaction, arrangement or relationship is a related person transaction, the related person transaction will be submitted to the Audit Committee of our Board of Directors. If the proposed transaction, arrangement or relationship involves our General Counsel, our Chief Financial Officer will undertake the review in step one.

Step two is the review by our Audit Committee, which will review and determine whether to approve or ratify any other related person transaction that is submitted to the Committee under step one. However, if the proposed related person transaction is with Deutsche Telekom or any ofwhereby Deutsche Telekom modified its affiliates whileICCS tool to enable the Stockholder’s Agreement isCompany to use it for its Sarbanes-Oxley Act

compliance. During 2014, the Company incurred approximately $53,000 in effect, which we refer to as a controlling stockholder transaction,expenses under the Audit Committee, rather than approving or ratifying the controlling stockholder transaction, will determine whether or not to recommendarrangement.

 

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the controlling stockholder transaction for approval by our Board of Directors under step three. In the case of a controlling stockholder transaction, representatives ofData Reseller Agreement between Deutsche Telekom shall be afforded the opportunity to present to the Audit Committee the background of the controlling stockholder transaction, its rationale, the manner of arm’s length negotiation of the transaction, and such other information as the Deutsche Telekom representatives deem relevant.

Step three involves the review of a controlling stockholder transaction by our Board after receiving the recommendation, and if requested, reasoning of our Audit Committee. As required under the Stockholder’s Agreement, a controlling stockholder transaction is approved only if approved by a majority of the directors of the Company, including a majority of the Non-Affiliated Directors (as defined in the Stockholder’s Agreement).

Under our Related Person Transaction Policy, when considering actual or potential related person transactions, including controlling stockholder transactions, for review, approval, ratification or recommendation to our Board of Directors, our Audit Committee will review all relevant facts regarding the related person transaction in determining whether to approve or ratify the transaction, including, without limitation:T-Mobile USA

 

In April 2014, T-Mobile USA and Deutsche Telekom entered into a Data Reseller Agreement, pursuant to which Deutsche Telekom may purchase data services from T-Mobile USA for resale to its enterprise

customers in the nature of the related person transactionU.S. The Data Reseller Agreement terminates in April 2019 and theautomatically renews on monthly terms of the related person transaction, including the amount of consideration payableunless terminated upon sixty (60) days’ prior written notice by or to the related person;either party.

Services Agreement between Deutsche Telekom and T-Mobile

 

the extentIn February 2015, T-Mobile entered into a services agreement effective as of the related person’s interest in the transaction;

the business reasons for the Company to enter into the related person transaction;

whether the transaction involves the provision of goods or services to the Company that are available from unaffiliated third parties;

whether the terms are comparable to those generally available in arms’ length transactions with unaffiliated third parties;

whether the related person transaction is consistent with the best interests of the Company; and

in the case of any related person transaction involving an outside director of the Company, the potential impact of such related person transaction on such outside director’s independence and the Company’s continued compliance with the requirements under the Exchange Act, the listing rules of the NYSE or any other exchange on which the Company’s securities are traded, or other applicable laws and regulations.

None of the related person transactionsJanuary 1, 2014 with Deutsche Telekom or its affiliates described above was required to be approved in accordance with our current Related Person Transactions Policy because they were entered into prior to or in connection with the consummation of the Business Combination.

Priorpertaining to the Business Combination

Priorprovision by T-Mobile of certain financial, tax and accounting- related services to consummation of the Business Combination, our written Related Person Transaction Policy, which we refer to as the MetroPCS Related Person Transaction Policy, required that each director, officer and employee involved in a related person transaction notify the Company’s legal departmentDeutsche Telekom and the Audit Committee,payment by Deutsche

Telekom for such services. The services relate to certain operating and financial data and other information that each such transaction be approved or ratified by the Audit Committee, except with respect to any “Material Related Person Transaction” (as defined below) that was to be recommended for approval or disapproval by the Audit CommitteeDeutsche Telekom may request from T-Mobile. Pursuant to the Board. Additionally, all Material Related Person Transactions involving a director would be reviewed and recommended by the Nominating and Corporate Governance Committee to the Board as to whetherservices agreement, T-Mobile has billed Deutsche Telekom $1.15 million for such transaction would have caused such director to cease being independent under applicable law and regulations, the Company’s corporate governance guidelines thenservices in effect, and NYSE rules, or the special independence requirements to serve on the Audit Committee or the Compensation Committee. A “Material Related Person Transaction” was defined as a related person transaction determined by the Audit Committee to be potentially or actually material to the Company or to any director or officer of the Company, including whether such transaction would have impacted the independence of any outside director.2014.

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Under the MetroPCS Related Person Transaction Policy, in determining whether to approve a related person transaction, the Audit Committee was to have considered the following factors, among others, to the extent relevant to the related person transaction:

whether the terms of the related person transaction were fair to the Company and on the same basis as would apply if the transaction did not involve a related person;

 

whether there were business reasons and benefits for the Company to enter into the related person transaction;

whether the related person transaction would have impaired the independence of an outside director, and whether such transaction was with immediate family members or an entity which was owned or controlled in substantial part by a director; and

whether the related person transaction would have presented an improper conflict of interest for any of our directors or executive officers, taking into account the size of the transaction, the overall financial position of the director, executive officer or other related person, the direct or indirect nature of the director’s, executive officer’s or other related person’s interest in the transaction and the ongoing nature of any proposed relationship, and any other factors the Audit Committee deems relevant.

The compensation arrangements for Corey A. Linquist and Phillip R. Terry described under “Fiscal 2012 Transactions” above were not reviewed and approved under the MetroPCS Related Person Transaction Policy, as these arrangements were considered standing pre-approved transactions under such policy and were reviewed and approved in accordance with MetroPCS processes and procedures related to executive and employee compensation by the legacy MetroPCS Compensation Committee and Board of Directors.

Indemnification

We indemnify our directors and our officers to the fullest extent permitted by law so that they will be free from undue concern about personal liability in connection with their service to the Company. This is required under our certificate of incorporation, and we have also entered into agreements with our directors and executive officers which require us to indemnify and advance expenses to such directors and executive officers to the fullest extent permitted by applicable law if the person is or is threatened to be made a party to any threatened, pending or completed action, suit, hearing,

arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding, whether formal or informal, governmental or non-governmental, or civil, criminal, administrative or investigative, provided such director or executive officer acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interestinterests of the Company or in a manner otherwise expressly permitted under our certificate of incorporation, bylaws or the Stockholder’s Agreement.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement43


LOGO

On October 30, 2014, the Board of Directors approved the T-Mobile US, Inc. 2014 Employee Stock Purchase Plan (the “ESPP”) upon recommendation of the Compensation Committee. The Board is now seeking stockholder approval of the ESPP in accordance with the requirements of Section 423 of the Code. The Board recommends that stockholders approve the ESPP, which allows employees to purchase shares of our common stock at a discount using payroll deductions, subject to limits set by the Code and the ESPP. Sales of shares under the ESPP are generally made pursuant

to a series of six-month offerings. On April 1, 2015, an offering commenced subject to stockholder approval of the ESPP. If stockholder approval is not obtained, the offering will be cancelled and the ESPP will be terminated.

A copy of the ESPP is attached to this Proxy Statement as Appendix A. The description below is a summary and not intended to be a complete description of the ESPP. Please read the ESPP for more detailed information.

Registration Rights AgreementDescription of the ESPP

In connection

The purpose of the ESPP is to provide employees with an opportunity to acquire an equity ownership interest in the Company and to encourage employees to remain in the employ of the Company.

The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the ESPP,

accordingly, will be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

Administration

The ESPP will be administered by the Compensation Committee of our Board of Directors or any other committee appointed by the Board to administer the ESPP (the “Committee”). The Committee has the full and exclusive discretionary authority to construe and interpret the ESPP and the rights granted under it, to establish rules and regulations for the administration of the ESPP, to establish offering

and purchase periods under the ESPP, to designate from time-to-time which of our subsidiaries will participate in the ESPP, and to amend the ESPP to satisfy applicable laws, to obtain any exemption under such laws or to reduce or eliminate any unfavorable legal, accounting or other consequences.

Shares Authorized

Subject to adjustment for changes in capitalization, the number of shares of common stock reserved for sale and authorized for issuance under the ESPP will be 10 million shares, plus an annual increase commencing in 2016 of the lesser of 5 million shares or an amount as determined by the Committee. If an offering terminates for

any reason without shares having been purchased, the shares of common stock not purchased under the offering will again become available for the ESPP. The authorized share amounts were determined in consultation with our initial publicexternal management consultant and counsel.

Eligibility

Generally, all employees are eligible to participate in the ESPP, although the Committee may impose additional eligibility requirements consistent with the Code. However, any employee who would own or have the right to acquire 5% or more of the total

combined voting power or value of all classes of stock of the Company or any subsidiary is excluded from participating in the ESPP. As of March 31, 2015, there were approximately 45,000 employees eligible to participate in the ESPP.

Offerings

The ESPP provides for separate six-month offerings, commencing on April 1 and October 1 of each year. Each offering has a single co-terminus six-month purchase period. The Committee may establish

different offering periods, and purchase periods within offering periods, consistent with the Code.

Payroll Deductions, Purchase Price, and Shares Purchased

Pursuant to procedures established by the Committee, eligible employees may elect to have a portion of their compensation used to purchase shares of common stock. ESPP participants may authorize

payroll deductions from 1% to 15% of all base gross earnings, cash bonuses, commissions and overtime to be applied toward the purchase of the Company’s common stock.

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PROPOSAL 3 — APPROVAL OF THE T-MOBILE 2014 EMPLOYEE STOCK PURCHASE PLAN

Purchases of shares of common stock are made on the last trading day of the offering period with compensation amounts withheld from employees during the purchase period.

On each purchase date, the last trading day of each offering period, any amounts withheld from an employee’s compensation during the applicable offering period for purposes of the ESPP will be used to purchase the greatest number of whole shares of common stock that can be purchased with such amounts. The purchase price for a share of common stock will be set, unless the Committee determines higher percentages for future offerings, at the lesser of (i) 85% of the fair market value of a share of common stock on the first trading day of the offering period and (ii) 85% of the fair market value of a share of common stock on the last trading day of the offering period. For purposes of the ESPP, “fair market value” generally means the closing sales price of a share of common stock for the day. As of March 31, 2015, the closing sales price of a share of our common stock as reported on the NYSE was $31.69 per share.

Subject to adjustment for changes in April 2007,capitalization, no employee may purchase more than 4,000 shares of common stock during a single

offering period, although the Committee may determine other limits for future offerings. In addition, the Code limits the aggregate fair market value of the shares of common stock (determined as of the beginning of a purchase period) that any employee may purchase under the ESPP during any calendar year to $25,000, subject to carryover for offering periods that span calendar years. We will be notified if shares of common stock are disposed of in a disposition that does not satisfy the holding period requirements of Section 423 of the Code (generally, as discussed below, two years from the beginning of the applicable offering period).

We will pay the administrative costs associated with the operation of the ESPP. The employees will pay any brokerage commissions that result from their sales of shares of common stock.

We may deduct or withhold or require employees to pay to us any federal, state, local and other taxes we amended and restated our existing stockholder agreement and renamed it as a registration rights agreement. The stockholder partiesare required to the registration rights agreement are entitled to certain rightswithhold with respect to the registrationany event arising as a result of the sale of such shares under the Securities Act. Under the terms of the registration rights agreement, if we propose to register any of our securities under the Securities Act, either for our own account or for the account of other security holders exercising registration rights, holders who cannot otherwise sell our common stock without restriction are entitled to notice of such registration and are entitled to include shares in the registration. Stockholders benefiting from these rightsESPP. We may also require usdeduct those amounts from the employees’ wages or compensation.

Withdrawal and Termination of Employment

Pursuant to file a registration statement underprocedures established by the Securities Act at our expenseCommittee, employees may withdraw with respect to an offering period by submitting a withdrawal notice within a designated period prior to the purchase date or from a future offering. If an employee withdraws from a future offering, the employee may not recommence withholding of compensation for the purchase of shares of common stock until the following offering period. Upon termination of employment for any reason, the employee’s participation in the ESPP will immediately terminate and the payroll deductions credited to the employee’s account will be returned to him or her and such employee’s right to purchase will automatically terminate.

The ESPP provides for adjustment of the number of shares of common stock that may be granted under the ESPP as well as the purchase price per share of common stock and the number of shares of common stock covered by each right to purchase for any increase or decrease in the number of shares of common stock resulting from a stock split, reverse stock split, stock dividend, extraordinary cash dividend, combination or reclassification of the common stock or recapitalization, reorganization, consolidation,

split-up, spin-off or any other increase or decrease in the number of shares of common stock effected without receipt of consideration by us.

In the event of any merger, consolidation or similar corporate transaction, the Committee may make such adjustment it deems appropriate to prevent dilution or enlargement of rights in the ESPP, in the number, class of or price of shares of common stock available for purchase under the ESPP and in the number of shares of common stock that an employee is entitled to purchase and any other adjustments it deems appropriate. In the event of any such transaction, the Committee may elect to have the rights to purchase under the ESPP assumed or such rights to purchase substituted by a successor entity, to set an earlier purchase date, prior to the consummation of such corporate transaction, to terminate all outstanding rights to purchase either prior to their expiration or upon completion of the purchase of shares of common stock on the next purchase date, or to take such other action deemed appropriate by the Committee.

Amendment or Termination

The Board of Directors may amend the ESPP at any time, provided such amendment does not cause rights to purchase issued under the ESPP to fail to meet the requirements of Section 423 of the Code. Moreover, any amendment for which stockholder approval is required under Section 423 of the Code or any securities exchange

on which the shares are traded must be submitted to the stockholders for approval. The Board may suspend or terminate the ESPP any time. Unless sooner terminated by the Board of Directors, the ESPP shall terminate on October 30, 2024.

U.S. Federal Income Tax Consequences

The following discussion is only a brief summary of the U.S. federal income tax consequences to us and our employees under the ESPP. It is based on the Code as in effect as of the date of this Proxy Statement. The discussion relates only to United States federal income tax treatment; state, local, foreign, estate, gift and other tax consequences are not discussed. The summary is not intended to be a complete analysis or discussion of all potential tax consequences.

The amounts deducted from an employee’s pay pursuant to the ESPP will be included in the employee’s compensation and be

subject to federal income and employment tax. Generally, no additional income will be recognized by the employee either at the beginning of the offering period when rights to purchase are granted pursuant to the ESPP or at the time the employee purchases shares of common stock pursuant to the ESPP.

If the shares of common stock are disposed of at least two years after the first day of the offering period to which the shares of common stock relate and at least one year after the shares of common stock were acquired under the ESPP (the “holding period”), or if the

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement45


PROPOSAL 3 — APPROVAL OF THE T-MOBILE 2014 EMPLOYEE STOCK PURCHASE PLAN

employee dies while holding the shares of common stock, the employee (or in the case of the employee’s death, the employee’s estate) will recognize ordinary income in the year of disposition or death in an amount equal to the lesser of (a) the excess of the fair market value of the shares of common stock on the first trading day of the offering period over the purchase price of the shares of common stock, or (b) the excess of the fair market value of the shares of common stock at the time of such disposition over the purchase price of the shares of common stock.

If the shares of common stock are sold or disposed of, including by way of most gifts, before the expiration of the holding period, the employee will recognize ordinary income in the year of sale or disposition in an amount equal to the excess of the sales price over the purchase price. Even if the shares of common stock are sold for less than their fair market value on the purchase date, the same amount of ordinary income is included in income.

In addition, the employee generally will recognize capital gain or loss in an amount equal to the difference between the amount realized

upon the sale of shares of common stock and the employee’s tax basis in the shares of common stock, which is generally the amount the employee paid for the shares of common stock plus the amount, if any, taxed as ordinary income. Capital gain or loss recognized on a disposition of shares of common stock will be long-term capital gain or loss if the employee’s holding period for the shares of common stock exceeds one year. The purchase date begins the holding period for determining whether the gain or loss realized is short or long term.

If the employee disposes of shares of common stock purchased pursuant to the ESPP after the holding period, we will not be requiredentitled to use our best effortsany federal income tax deduction with respect to effectthe shares of common stock issued under the ESPP. If the employee disposes of such registration. Further, these stockholdersshares of common stock prior to the expiration of the holding period, we generally will be entitled to a federal income tax deduction in an amount equal to the amount of ordinary income recognized by the employee as a result of such disposition.

New Plan Benefits

Participation in the ESPP is entirely within the discretion of the eligible employees. Because we cannot presently determine the participation levels by employees, the rate of contributions by employees and the eventual purchase price under the ESPP, it is not possible to

determine the value of benefits which may require usbe obtained by executive officers and other employees under the ESPP. Non-employee directors are not eligible to file additional registration statements on Form S-3 at our expense. These rights are subjectparticipate in the ESPP.

Required Vote

Approval of the proposal relating to certain conditions and limitations, among them the rights of underwriters to limitESPP requires that the number of shares included in such registration. The registration rights agreement shall terminate when allvotes cast “FOR” the parties thereto no longer hold any registrable securities or all the parties mutually agree to terminate.

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Proposal 2

Ratification of the Appointment of PricewaterhouseCoopers LLP

As Our Independent Registered Public Accounting Firm for Fiscal Year 2013

The Audit Committee has appointed PricewaterhouseCoopers LLP to serve as our independent registered public accounting firm for the fiscal year ending December 31, 2013, subject to ratification by the stockholders of the Company at the 2013 Annual Meeting. Although ratification is not required, the Board is submitting the selection of PricewaterhouseCoopers LLP to our stockholders for ratification as a matter of good corporate governance. If the selection is not ratified, the Audit Committee will consider whether it is appropriate to select another independent registered public accounting firm. PricewaterhouseCoopers LLP is considered by management to be well qualified.

Deloitte & Touche LLP audited the legacy MetroPCS financial statements for the fiscal years ended December 31, 2012 and 2011. PricewaterhouseCoopers LLP audited the financial statements of T-Mobile USA, Inc. for its fiscal years ended December 31, 2012 and 2011. The Business Combination was treated as a reverse acquisition for accounting purposes and, as such, the historical financial statements of the accounting acquirer, T-Mobile USA, have become our historical financial statements. The SEC has released guidance that, unless the same accountant reported on the most recent financial statements of both the accounting acquirer and the acquired company, a reverse acquisition results in a change of accountants. Consequently, upon the consummation of the Business Combination, Deloitte & Touche LLP was dismissed as our independent registered public accounting firm and PricewaterhouseCoopers LLP was engaged to be our independent registered public accounting firm for the fiscal year ending December 31, 2013.

Deloitte & Touche LLP’s reports on MetroPCS Communications, Inc.’s financial statements for the fiscal years ended December 31, 2012 and 2011 did not contain an adverse opinion or disclaimer of opinion, or qualification or modification as to uncertainty, audit scope, or accounting principles. In addition, during the Company’s two most recent fiscal years and through the date of this report, there were no disagreements with Deloitte & Touche LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of Deloitte & Touche LLP, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its report.

We have provided Deloitte & Touche LLP with a copy of the foregoing disclosures as contained in Item 4.01 of our Current Report on Form 8-K filed with the SEC on May 2, 2013 and the amendment thereto dated May 8, 2013, and requested that Deloitte & Touche LLP furnish a letter addressed to the SEC stating whether it agreed with the above statements made by the Company. A copy of such letter, dated May 1, 2013, is filed as Exhibit 16.1 to that Current Report on Form 8-K and the amendment thereto, respectively.

As noted above, on May 1, 2013, the Audit Committee of the Company’s Board of Directors formally engaged PricewaterhouseCoopers LLP to be the independent registered public accounting firm for the Company for the fiscal year ending December 31, 2013. PricewaterhouseCoopers LLP was the independent registered public accounting firm that audited T-Mobile USA’s financial statements for the fiscal years ended December 31, 2012 and 2011. During the fiscal years ended December 31, 2012 and 2011, and during the interim period from January 1, 2013 to May 1, 2013, the Company did not consult with PricewaterhouseCoopers LLP in regards to MetroPCS Communication, Inc.’s financial statements, which were audited by Deloitte & Touche LLP, with respect to any of (i) the application of accounting principles to a specified transaction, either completed or proposed; (ii) the type of audit opinion that might be rendered on the Company’s financial statements; or (iii) any other matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) or a reportable event of the type described in Item 304(a)(1)(v) of Regulation S-K. Additionally, during the fiscal years ended December 31, 2012 and 2011, and during the interim period from January 1, 2013 to May 1, 2013, no written report or oral advice was provided to the Company by PricewaterhouseCoopers LLP that was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue.

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We do not expect representatives of PricewaterhouseCoopers LLP or Deloitte & Touche LLP to be present at the Annual Meeting, to make a statement or to be available to respond to questions.

Audit and All Other Fees

Fees for services provided to legacy MetroPCS by Deloitte & Touche LLP for the fiscal years ended December 31, 2012 and 2011 were as follows (dollars in thousands):

       2012             2011     

Audit Fees (1)

  $3,675      $3,600  

Audit-Related Fees (2)

   222       55  

Tax Fees (3)

   64       551  

All Other Fees (4)

   5       7  
  

 

 

     

 

 

 

Total Fees

  $    3,966      $    4,213  
  

 

 

     

 

 

 

(1)Consists of fees for the audits of the legacy MetroPCS consolidated financial statements for the years ended December 31, 2012 and 2011, reviews of the legacy MetroPCS interim financial statements, and auditing the legacy MetroPCS assessment of its compliance with Section 404 of the Sarbanes-Oxley Act as it relates to internal controls over financial reporting.

(2)Consists of fees for assurance and related services, other than those included in Audit Fees and includes fees in 2012 and 2011 for procedures performed related to legacy MetroPCS’s Business Combination related activities. Fees billed in 2011 also include XBRL agreed upon procedures.

(3)Consists of fees billed in 2012 and 2011 related to state tax policy analysis, tax credit studies and tax advice.

(4)Consists of subscription fees billed for the Deloitte Accounting Research Tool and seminar registration fees in 2012 and 2011.

Audit Committee Pre-Approval of Independent Registered Public Accounting Firm Services

In order to assure continued independence of our independent registered public accounting firm, our Audit Committee adopted a policy requiring pre-approval of audit, audit related, and non-audit services performed by our independent registered public accounting firm. The Audit Committee (as then constituted) pre-approved all engagements and fees of Deloitte & Touche LLP presented above.

Required Vote

Ratification of the appointment of our independent registered public accounting firm requires a number of “FOR” votes that isproposal represents a majority of the total votes cast by the holders of our shares of common stock entitled to vote on the proposal at the Annual Meeting. If the stockholders do not ratify the appointment of PricewaterhouseCoopers LLP, the Audit Committee will reconsider the appointment but is under no obligation to appoint a different independent registered public accounting firm.proposal.

The Board of Directors recommends that you vote

“FOR”

the ratification of the appointment of PricewaterhouseCoopers LLP

as our independent registered public accounting firm for 2013.

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Proposal 3

Approval ofto Approve the T-Mobile US, Inc.

2013 Omnibus Incentive Plan

On May 1, the Board of Directors approved, subject to stockholder approval, the T-Mobile US, Inc. 2013 Omnibus Incentive Plan, or the 2013 Omnibus Incentive Plan. If the 2013 Omnibus Incentive Plan is approved by our stockholders, it will authorize the issuance of 63,275,000 shares of common stock. The 2013 Omnibus Incentive Plan will replace the 2004 Plan and the 2010 Plan (together, the “Predecessor Plans”), and no new awards will be granted under the Predecessor Plans. Any awards outstanding under the Predecessor Plans on the date of stockholder approval of the 2013 Omnibus Incentive Plan will remain subject to and be paid under the Predecessor Plans, and any shares subject to outstanding awards under the Predecessor Plans that subsequently cease to be subject to such awards (other than by reason of exercise or settlement of the awards in shares) will automatically become available for issuance under the 2013 Omnibus Incentive Plan.

The Board of Directors recommends that stockholders approve the 2013 Omnibus Incentive Plan. The purpose of the 2013 Omnibus Incentive Plan is to enhance the Company’s ability to attract and retain highly-qualified persons to serve as officers, non-employee directors, key employees and consultants and advisors of the Company and to promote greater ownership in the Company by such individuals in order to align their interests more closely with the interests of the Company’s stockholders. Stockholder approval of the 2013 Omnibus Incentive Plan will also enable the Company to grant awards under the 2013 Omnibus Incentive Plan that are designed to qualify for special tax treatment under Section 422 of the Code, and to enable the Company to receive a federal income tax deduction for certain compensation paid under the 2013 Omnibus Incentive Plan under Code Section 162(m).

Under Code Section 162(m), we are generally prohibited from deducting compensation paid to “covered employees” in excess of $1 million per person in any year. “Covered employees” are defined as the principal executive officer and the three other most highly compensated Named Executive Officers (excluding the principal financial officer). Compensation that qualifies as “performance-based” is excluded for purposes of calculating the amount of compensation subject to the $1 million limit. In general, one of the requirements that must be satisfied to qualify as “performance-based” compensation is that the material terms of the performance goals under which the compensation may be paid must be disclosed to and approved by a majority vote of our stockholders, generally at least once every five years. For purposes of Code Section 162(m), the material terms of the performance goals generally include (a) the individuals eligible to receive compensation upon achievement of performance goals, (b) a description of the business criteria on which the performance goals may be based, and (c) the maximum amount that can be paid to an individual upon attainment of the performance goals. By approving the 2013 Omnibus Incentive Plan, stockholders also will be approving the material terms of the performance goals under the 2013 Omnibus Incentive Plan. The material terms of the performance goals for the 2013 Omnibus Incentive Plan are disclosed below under “Summary of the 2013 Omnibus Incentive Plan.” Although stockholder approval of the 2013 Omnibus Incentive Plan will provide flexibility to grant awards under the 2013 Omnibus Incentive Plan that qualify as “performance-based” compensation under Code Section 162(m), we retain the ability to grant awards under the 2013 Omnibus Incentive Plan that do not qualify as “performance-based” compensation under Code Section 162(m).

The following features of the 2013 Omnibus Incentive Plan will continue to protect the interests of our stockholders:

Limitation on terms of stock options and stock appreciation rights.  The maximum term of each stock option and stock appreciation right, or SARs, is ten years.

Limitation on share counting.  Shares surrendered for the payment of the exercise price or withholding taxes under stock options or stock appreciation rights may not again be made available for issuance under the 2013 Omnibus Incentive 2014 Employee Stock Purchase Plan.

 

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No repricing or grant of discounted stock options.  The 2013 Omnibus Incentive Plan does not permit the repricing of options or stock appreciation rights either by amending an existing award or by substituting a new award at a lower price. The 2013 Omnibus Incentive Plan prohibits the granting of stock options or stock appreciation rights with an exercise price less than the fair market value of the common stock on the date of grant.

Clawback.  Awards granted under the 2013 Omnibus Incentive Plan are subject to any then current compensation recovery or clawback policy of the Company that applies to awards under the 2013 Omnibus Incentive Plan.

Double-trigger acceleration.  Under the 2013 Omnibus Incentive Plan we do not accelerate vesting of awards that are assumed or replaced by the resulting entity after a change in control unless an employee’s employment is also terminated by the Company without cause or by the employee with good reason within one year of the change in control.

Code Section 162(m) Eligibility.  Provides flexibility to grant awards under the 2013 Omnibus Incentive Plan that qualify as “performance-based” compensation under Code Section 162(m).

Dividends.  We do not pay dividends or dividend equivalents on stock options, stock appreciation rights or unearned performance shares.

Summary of the 2013 Omnibus Incentive Plan

The principal features of the 2013 Omnibus Incentive Plan are summarized below. The following summary of the 2013 Omnibus Incentive Plan does not purport to be a complete description of all of the provisions of the 2013 Omnibus Incentive Plan. It is qualified in its entirety by reference to the complete text of the 2013 Omnibus Incentive Plan, which is attached to this proxy statement as Annex A.

Eligibility

Awards may be granted under the 2013 Omnibus Incentive Plan to officers, employees, consultants and advisors of the Company and its affiliates and to non-employee directors of the Company. Incentive stock options may be granted only to employees of the Company or its subsidiaries. As of May 8, 2013, approximately 37,000 employees (including 12 executive officers), 6 non-employee directors and approximately 1,800 consultants and advisors would be eligible to receive grants under the 2013 Omnibus Incentive Plan. However, under the Company’s equity award granting practices, grants would be limited to approximately 650 employees (including executive officers) and non-employee directors.

Administration

The 2013 Omnibus Incentive Plan may be administered by the Board of Directors, or by a committee appointed by the Board or its delegate (each referred to as the “Committee”). The Committee, in its discretion, selects the individuals to whom awards may be granted, the time or times at which such awards are granted, and the terms of such awards.

Number of Authorized Shares

The number of shares of common stock authorized for issuance under the 2013 Omnibus Incentive Plan is 63,275,000 shares. In addition, as of the date of stockholder approval of the 2013 Omnibus Incentive Plan, any awards then outstanding under the Predecessor Plans will remain subject to and be paid under the Predecessor Plans and any shares then subject to outstanding awards under the Predecessor Plans that subsequently cease to be subject to such awards (other than by reason of exercise or settlement of the awards in shares) will

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automatically become available for issuance under the 2013 Omnibus Incentive Plan. As of May 8, 2013, 11,471,996 shares of common stock were subject to outstanding awards under the Predecessor Plans. A total of approximately 724,912,508 shares of the common stock were outstanding as of May 8, 2013. The shares of common stock issuable under the 2013 Omnibus Incentive Plan will consist of authorized and unissued shares or shares now held or subsequently acquired by the Company as treasury shares.

If any award is canceled, terminates, expires or lapses for any reason prior to the issuance of shares or if shares are issued under the 2013 Omnibus Incentive Plan and thereafter are forfeited to the Company, the shares subject to such awards and the forfeited shares will not count against the aggregate number of shares of common stock available for grant under the 2013 Omnibus Incentive Plan. In addition, the following items will not count against the aggregate number of shares of common stock available for grant under the 2013 Omnibus Incentive Plan: (a) the payment in cash of dividends or dividend equivalents under any outstanding award, (b) any award that is settled in cash rather than by issuance of shares of Common stock, or (c) awards granted in assumption of or in substitution for awards previously granted by an acquired company. Shares tendered or withheld to pay the option exercise price or tax withholding will continue to count against the aggregate number of shares of common stock available for grant under the 2013 Omnibus Incentive Plan.

Limits on Awards to Non-employee Directors

No more than $400,000 may be granted in equity-based awards during any one year to a non-employee member of the Board of Directors, based on the grant date fair value for accounting purposes in the case of stock options or stock appreciation rights and based on the fair market value of the common stock underlying the award on the grant date for other equity-based awards.

Adjustments

If certain changes in the common stock occur by reason of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in stock, or other increase or decrease in the common stock without receipt of consideration by the Company, or if there occurs any spin-off, split-up, extraordinary cash dividend or other distribution of assets by the Company, the number and kind of securities for which stock options and other stock-based awards may be made under the 2013 Omnibus Incentive Plan, including the individual award limits for “performance-based” compensation under Code Section 162(m), shall be equitably adjusted by the Company. In addition, if there occurs any spin-off, split-up, extraordinary cash dividend or other distribution of assets by the Company, the number and kind of securities subject to any outstanding awards and the exercise price of any outstanding stock options or SARs shall be equitably adjusted by the Company.

Types of Awards

The 2013 Omnibus Incentive Plan permits the granting of any or all of the following types of awards:

Stock Options.  Stock options entitle the holder to purchase a specified number of shares of common stock at a specified price (the exercise price), subject to the terms and conditions of the stock option grant. The Committee may grant either incentive stock options, which must comply with Code Section 422, or nonqualified stock options. The Committee sets exercise prices and terms, except that stock options must be granted with an exercise price not less than 100% of the fair market value of the common stock on the date of grant (excluding stock options granted in connection with assuming or substituting stock options in acquisition transactions). As of May 8, 2013, the closing sales prices of the common stock on the New York Stock Exchange was $17.77 per share. Unless the Committee determines otherwise, fair market value means, as of a given date, the closing price of the common stock. At the time of grant, the Committee determines the terms and conditions of stock options, including the quantity, exercise price, vesting periods, term (which cannot exceed ten years) and other conditions on exercise.

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Stock Appreciation Rights.  The Committee may grant SARs, as a right in tandem with the number of shares underlying stock options granted under the 2013 Omnibus Incentive Plan or as a freestanding award. Upon exercise, SARs entitle the holder to receive payment per share in stock or cash, or in a combination of stock and cash, equal to the excess of the share’s fair market value on the date of exercise over the grant price of the SAR. The grant price of a tandem SAR is equal to the exercise price of the related stock option and the grant price for a freestanding SAR is determined by the Committee in accordance with the procedures described above for stock options. Exercise of an SAR issued in tandem with a stock option will reduce the number of shares underlying the related stock option to the extent of the SAR exercised. The term of a freestanding SAR cannot exceed ten years, and the term of a tandem SAR cannot exceed the term of the related stock option.

Restricted Stock, Restricted Stock Units and Other Stock-Based Awards.  The Committee may grant awards of restricted stock, which are shares of common stock subject to specified restrictions, and restricted stock units, which represent the right to receive shares of the common stock in the future. These awards may be made subject to repurchase, forfeiture or vesting restrictions at the Committee’s discretion. The restrictions may be based on continuous service with the Company or the attainment of specified performance goals, as determined by the Committee. Stock units may be paid in stock or cash or a combination of stock and cash, as determined by the Committee. The Committee may also grant other types of equity or equity-based awards subject to the terms of the 2013 Omnibus Incentive Plan and any other terms and conditions determined by the Committee.

Performance Awards.  The Committee may grant performance awards, which entitle participants to receive a payment from the Company, the amount of which is based on the attainment of performance goals established by the Committee over a specified award period of not less than one year. Performance awards may be denominated in shares of common stock or in cash, and may be paid in stock or cash or a combination of stock and cash, as determined by the Committee. Performance awards include annual incentive awards.

No Repricing

Without stockholder approval, the Committee is not authorized to (a) lower the exercise or grant price of a stock option or SAR after it is granted, except in connection with certain adjustments to our corporate or capital structure permitted by the 2013 Omnibus Incentive Plan, such as stock splits, (b) take any other action that is treated as a repricing under generally accepted accounting principles or (c) cancel a stock option or SAR at a time when its exercise or grant price exceeds the fair market value of the underlying stock, in exchange for cash, another stock option or SAR, restricted stock, restricted stock units or other equity award, unless the cancellation and exchange occur in connection with a change in capitalization or other similar change.

Clawback

All cash and equity awards granted under the 2013 Omnibus Incentive Plan will be subject to the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the recovery of erroneously awarded compensation, any implementing rules and regulations under such act, any policies adopted by the Company to implement such requirements, and any other compensation recovery policies as may be adopted from time to time by the Company.

Performance-Based Compensation under Section 162(m)

Performance Goals and Criteria.  Under Code Section 162(m), we generally are prohibited from deducting compensation paid to our principal executive officer and our three other most highly compensated executive officers (other than our principal financial officer) in excess of $1 million per person in any year. However, compensation that qualifies as “performance-based” is excluded for purposes of calculating the amount of compensation subject to the $1 million limit.

If the Committee intends to qualify an award under the 2013 Omnibus Incentive Plan as “performance-based” compensation under Code Section 162(m), the performance goals selected by the Committee may be

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based on the attainment of specified levels of one, or any combination, of the following performance criteria for the Company on a consolidated basis, and/or specified subsidiaries or business units, as reported or calculated by the Company (except with respect to the total stockholder return and earnings per share criteria): (a) cash flow; (b) earnings per share, as adjusted for any stock split, stock dividend or other recapitalization; (c) earnings measures; (d) return on equity; (e) total shareholder return; (f) share price performance, as adjusted for any stock split, stock dividend or other recapitalization; (g) return on capital; (h) revenue; (i) income; (j) profit margin; (k) return on operating revenue; (l) brand recognition/acceptance; (m) customer satisfaction; (n) productivity; (o) expense targets; (p) market share; (q) cost control measures; (r) balance sheet metrics; (s) strategic initiatives; (t) implementation, completion or attainment of measurable objectives with respect to recruitment or retention of personnel or employee satisfaction; or (u) and any other business criteria established by the Committee, except that such business criteria shall include any derivations of business criteria listed above (e.g., income shall include pre-tax income, net income, operating income, etc.).

Performance goals may, in the discretion of the Committee, be established on a Company-wide basis, or with respect to one or more business units, divisions, subsidiaries or business segments, as applicable. Performance goals may be absolute or relative to the performance of one or more comparable companies or indices.

The Committee may determine prospectively at the time that the performance goals are established the extent to which measurement of performance goals may exclude the impact of charges for restructuring, discontinued operations, extraordinary items, and other unusual non-recurring items, and the cumulative effects of tax or accounting changes (each as defined by generally accepted accounting principles and as identified in the Company’s financial statements or other SEC filings).

Limitations.  Subject to certain adjustments for changes in our corporate or capital structure described above, participants who are granted awards intended to qualify as “performance-based” compensation under Code Section 162(m) may not be granted stock options or stock appreciation rights for more than 5,000,000 shares in any calendar year or more than 2,000,000 shares for all share-based awards that are performance awards in any calendar year. The maximum dollar value granted to any participant pursuant to that portion of a cash award granted under the 2013 Omnibus Incentive Plan for any calendar year to any employee that is intended to satisfy the requirements for “performance-based compensation” under Code Section 162(m) may not exceed $10 million for an annual incentive award and $10 million for all other cash-based awards.

Transferability

Awards are not transferable other than by will or the laws of descent and distribution, except that in certain instances transfers may be made to or for the benefit of designated family members of the participant for no value.

Change in Control

Effect of Change in Control.  Under the 2013 Omnibus Incentive Plan, in the event of a change in control in which outstanding awards are not assumed, converted or replaced by the resulting entity, then upon the change in control all outstanding awards other than performance awards will become fully exercisable, all restrictions will lapse, and such awards will become vested and nonforfeitable, and all performance awards will be deemed to be satisfied and paid at target prorated up to and including the date of the change in control. In the event of a change in control in which outstanding awards are assumed, converted or replaced by the resulting entity, then, to the extent provided in the applicable award agreement, all outstanding awards other than performance awards will become fully exercisable, all restrictions will lapse, and such awards will become vested and nonforfeitable, and all performance awards will be deemed to be satisfied and paid at target (without proration) if, within one year after the change in control the participant’s employment or service is terminated by the Company other than for cause or by the participant for good reason. Notwithstanding the foregoing, in the event of a change in control, all outstanding awards held by non-employee directors will become fully exercisable, all restrictions will lapse, and such awards will become vested and nonforfeitable, and any specified performance goals will be deemed to be satisfied at target.

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Definition of Change in Control.  A change in control of the Company generally means the occurrence of any of the following events:

 (i)46an acquisition by any individual, entity or group other than Deutsche Telekom and its affiliates of beneficial ownership of 30% or more of either (a) the then outstanding shares of common stock or (b) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (generally excluding any acquisition directly from the Company, any acquisition by the Company, any acquisition by any employee benefit plan of the Company or a related company, or an acquisition pursuant to certain transactions described in paragraph (iii) below);

(ii)a change in the composition of the Board of Directors such that the incumbent members of the Board of Directors cease to constitute at least a majority of the Board (not including directors whose election, or nomination for election by stockholders, was approved by at least a majority of the incumbent Board); or

(iii)consummation of a reorganization, merger or consolidation, a sale of all or substantially all of the Company’s outstanding assets or the acquisition of assets or stock of another entity by the Company, unless after such transaction (a) the beneficial owners of common stock and voting securities of the Company immediately prior to the transaction retain at least 50% of such common stock and voting securities of the company resulting from such transaction, (b) no person beneficially owns 30% or more of the then outstanding common stock or voting securities of the company resulting from such transaction except to the extent such ownership existed prior to the transaction, and (c) at least a majority of the members of the board of directors of the company resulting from such transaction were incumbent directors of the Company prior to such transaction;

(iv)provided, that a change in control will not be deemed to have occurred so long as Deutsche Telekom holds certain governance rights under the Stockholder’s Agreement.

Term, Termination and Amendment of the 2013 Omnibus Incentive Plan

Unless earlier terminated by the Board of Directors, the 2013 Omnibus Incentive Plan will terminate, and no further awards may be granted, ten years after the date on which it is approved by stockholders. The Board may amend, suspend or terminate the 2013 Omnibus Incentive Plan at any time, except that, if required by applicable law, regulation or stock exchange rule, stockholder approval will be required for any amendment. The amendment, suspension or termination of the 2013 Omnibus Incentive Plan or the amendment of an outstanding award generally may not, without a participant’s consent, materially impair the participant’s rights under an outstanding award.

New Plan Benefits

A new plan benefits table for the 2013 Omnibus Incentive Plan and the benefits or amounts that would have been received by or allocated to participants for the last completed fiscal year under the 2013 Omnibus Incentive Plan if the 2013 Omnibus Incentive Plan was then in effect, as described in the federal proxy rules, are not provided because all awards made under the 2013 Omnibus Incentive Plan will be made at the Committee’s discretion, subject to the terms of the 2013 Omnibus Incentive Plan. Therefore, the benefits and amounts that will be received or allocated under the 2013 Omnibus Incentive Plan are not determinable at this time. The equity grant program for our non-employee directors is described under the Director Compensation section in this Proxy Statement.

Federal Income Tax Information

The following is a brief summary of the U.S. federal income tax consequences of the 2013 Omnibus Incentive Plan generally applicable to the Company and to participants in the 2013 Omnibus Incentive Plan who

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are subject to U.S. federal taxes. The summary is based on the Code, applicable Treasury Regulations and administrative and judicial interpretations thereof, each as in effect on the date of this Proxy Statement, and is, therefore, subject to future changes in the law, possibly with retroactive effect. The summary is general in nature and does not purport to be legal or tax advice. Furthermore, the summary does not address issues relating to any U.S. gift or estate tax consequences or the consequences of any state, local or foreign tax laws.

Nonqualified Stock Options.  A participant generally will not recognize taxable income upon the grant or vesting of a nonqualified stock option with an exercise price at least equal to the fair market value of our common stock on the date of grant and no additional deferral feature. Upon the exercise of a nonqualified stock option, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the difference between the fair market value of the shares underlying the stock option on the date of exercise and the exercise price of the stock option. When a participant sells the shares, the participant will have short-term or long-term capital gain or loss, as the case may be, equal to the difference between the amount the participant received from the sale and the tax basis of the shares sold. The tax basis of the shares generally will be equal to the greater of the fair market value of the shares on the exercise date or the exercise price of the stock option.

Incentive Stock Options.  A participant generally will not recognize taxable income upon the grant of an incentive stock option. If a participant exercises an incentive stock option during employment or within three months after employment ends (12 months in the case of permanent and total disability), the participant will not recognize taxable income at the time of exercise for regular U.S. federal income tax purposes (although the participant generally will have taxable income for alternative minimum tax purposes at that time as if the stock option were a nonqualified stock option). If a participant sells or otherwise disposes of the shares acquired upon exercise of an incentive stock option after the later of (a) one year from the date the participant exercised the option and (b) two years from the grant date of the stock option, the participant generally will recognize long-term capital gain or loss equal to the difference between the amount the participant received in the disposition and the exercise price of the stock option. If a participant sells or otherwise disposes of shares acquired upon exercise of an incentive stock option before these holding period requirements are satisfied, the disposition will constitute a “disqualifying disposition,” and the participant generally will recognize taxable ordinary income in the year of disposition equal to the excess of the fair market value of the shares on the date of exercise over the exercise price of the stock option (or, if less, the excess of the amount realized on the disposition of the shares over the exercise price of the stock option). The balance of the participant’s gain on a disqualifying disposition, if any, will be taxed as short-term or long-term capital gain, as the case may be.

With respect to both nonqualified stock options and incentive stock options, special rules apply if a participant uses shares of common stock already held by the participant to pay the exercise price or if the shares received upon exercise of the stock option are subject to a substantial risk of forfeiture by the participant.

Stock Appreciation Rights.  A participant generally will not recognize taxable income upon the grant or vesting of an SAR with a grant price at least equal to the fair market value of our common stock on the date of grant and no additional deferral feature. Upon the exercise of an SAR, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the difference between the fair market value of the shares underlying the SAR on the date of exercise and the grant price of the SAR.

Restricted Stock Awards, Restricted Stock Units, and Performance Awards.  A participant generally will not have taxable income upon the grant of restricted stock, restricted stock units or performance awards. Instead, the participant will recognize ordinary income at the time of vesting or payout equal to the fair market value (on the vesting or payout date) of the shares or cash received minus any amount paid. For restricted stock only, a participant may instead elect to be taxed at the time of grant.

Unrestricted Stock Awards.  Upon receipt of an unrestricted stock award, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the excess of the fair market value of the shares at such time over the amount, if any, paid by the participant with respect to the shares.

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Other Stock or Cash-Based Awards.  The U.S. federal income tax consequences of other stock or cash-based awards will depend upon the specific terms of each award.

Tax Consequences to the Company.  In the foregoing cases, we generally will be entitled to a deduction at the same time, and in the same amount, as a participant recognizes ordinary income, subject to certain limitations imposed under the Code.

Code Section 409A.  We intend that awards granted under the 2013 Omnibus Incentive Plan comply with, or otherwise be exempt from, Code Section 409A, but make no representation or warranty to that effect.

Tax Withholding.  We are authorized to deduct or withhold from any award granted or payment due under the 2013 Omnibus Incentive Plan, or require a participant to remit to us, the amount of any withholding taxes due in respect of the award or payment and to take such other action as may be necessary to satisfy all obligations for the payment of applicable withholding taxes. We are not required to issue any shares of common stock or otherwise settle an award under the 2013 Omnibus Incentive Plan until all tax withholding obligations are satisfied.

Vote Required

Approval of the 2013 Omnibus Incentive Plan requires a number of “FOR” votes that is a majority of the votes cast by the holders of our shares of common stock entitled to vote on the proposal, provided that the total votes cast on the proposal represent more than 50% of all shares entitled to vote on the proposal.

The Board of Directors recommends that you vote

“FOR”

the approval of the T-Mobile US, Inc.

2013 Omnibus Incentive PlanPROPOSAL 3 — APPROVAL OF THE T-MOBILE 2014 EMPLOYEE STOCK PURCHASE PLAN

Equity Compensation Plan Information

The following table provides information as of May 8, 2013December 31, 2014 with respect to outstanding equity awards and shares available for future issuance under our equity compensation plans, (without taking into accountnot including the 2013 Omnibus Incentive Plan,ESPP which is the subject of Proposal No. 3).stockholders are being asked to approve.

 

Plan Category

  Number of Securities to
Be Issued Upon Exercise
of Outstanding Options,
Warrants and Rights
   Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
   Number of Securities
Remaining Available
for Future Issuance
Under Equity
Compensation Plans (1)
 

Equity Compensation Plans Approved by Stockholders

   11,471,996    $23.85     3,249,216  

Equity Compensation Plans Not Approved by Stockholders

               
  

 

 

   

 

 

   

 

 

 

Total

   11,471,996    $23.85     3,249,216  

Plan Category  

Number of
Securities to Be

Issued upon

Exercise of
Outstanding Options,
Warrants and Rights (a)(#)

  

Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and

Rights ($)

  Number of Securities
Remaining Available for
Future Issuance
Under Equity
Compensation Plans
(excluding securities
reflected in Column (a))(#)
 
Equity Compensation Plans Approved by Stockholders:    
    Stock Options   4,348,912 (1)  $24.96      
    RSUs   19,952,089 (2)(3)    (4)     
Equity Compensation Plans Not Approved by Stockholders             
Total   24,301,001   $24.96    36,938,364 (5) 
(1)Number of securities remaining available for future issuance

Granted under the Second Amended and Restated 1995 Stock Option Plan of MetroPCS, Inc., the Amended and Restated MetroPCS Communications, Inc. 2004 Equity Incentive Compensation Plan (the “2004 Plan”) and the MetroPCS Communications, Inc. 2010 Equity Incentive Compensation Plan (the “2010 Plan”“MetroPCS Plans”) include all forms.

(2)

Granted under the 2013 Omnibus Incentive Plan.

(3)

Includes performance-vested awards assuming target performance.

(4)

RSUs do not have an exercise price.

(5)

Number of awardssecurities remaining available for future issuance under the 2013 Omnibus Incentive Plan. In addition to RSUs, the 2013 Omnibus Incentive Plan authorizes the award of stock options, stock appreciation rights, restricted stock and other stock-based awards.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement47


LOGO

Ms. Heather Slavkin Corzo, on behalf of the AFL-CIO Reserve Fund, 815 Sixteenth St. N.W., Washington, D.C. 20006, a beneficial owner

of 200 shares of the Company’s common stock, has advised us that she intends to submit the following proposal at the Annual Meeting.

Proposal

RESOLVED, that stockholders of T-Mobile US, Inc. (“T-Mobile”) urge the Board of Directors to report to stockholders, at reasonable cost and omitting proprietary information, on T-Mobile’s process for identifying and analyzing potential and actual human rights risks ofT-Mobile’s services, operations and supply chain (referred to herein as a “human rights risk assessment”) addressing the following:

Human rights principles used to frame the assessment

Frequency of assessment

Methodology used to track and measure performance

Nature and extent of consultation with relevant stakeholders in connection with the assessment

How the results of the assessment are incorporated into company policies and decision making

The report should be made available on T-Mobile’s website no later than the 2016 annual meeting of stockholders.

Supporting Statement

As long-term stockholders, we favor policies and practices that protect and enhance the value of our investments. There is increasing recognition that company risks related to human rights violations, such as litigation, reputational damage, and production disruptions, can adversely affect shareholder value. To manage such risks effectively, we believe companies must assess the risks posed by human rights practices in their operations and supply chain, as well as by the use of their products.

The importance of human rights risk assessment is reflected in the United Nations Guiding Principles on Business and Human Rights (the “UN Guiding Principles”) approved by the UN Human Rights Council in 2011 and informally known as the Ruggie Principles. The UN Guiding Principles urge that “business enterprises should carry out human rights due diligence assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed.”(http://www.business-humanrights.org/media/documents/ruggie/ruggie-guiding-principles-21-mar-2011.pdf.)

A 2012 report titled “Unacceptable: We Expect Better,” by the unions ver.di and Communications Workers of America have shown evidence of suspected labor rights violations at T-Mobile’s

predecessor T-Mobile USA since 2001. T-Mobile has been criticized for violating its employees’ freedom of association rights to organize and bargain collectively in at least two other reports:

A 2009 report by the American Rights at Work Education Fund, “Lowering The Bar or Setting The Standard?” stated “T-Mobile USA has conducted a systematic campaign to prevent employees from exercising their right to form a union.”

A 2010 report by Human Rights Watch, “A Strange Case,” found that “T-Mobile USA’s harsh opposition to workers’ freedom of association in the United States betrays Deutsche Telekom’ s purported commitment to social responsibility, impedes constructive dialogue with employee representatives, and in several cases, has violated ILO and OECD labor and human rights standards.”

We are also concerned that human rights violations may occur inT-Mobile’s operations outside the United States and in the vendors it uses internationally. A human rights assessment of T-Mobile’s operations and supply chain could reveal serious existing risks to shareholder value, risks that could be ameliorated before they materialize.

48


PROPOSAL 4 — STOCKHOLDER PROPOSAL RELATED TO HUMAN RIGHTS RISK ASSESSMENT

Board of Directors’ Response to Proposal 4

The Board recommends a vote “AGAINST” Proposal 4.

The Company is committed to supporting and maintaining the highest standards of ethical conduct and respect for human rights. Our Code of Business Conduct (our “Code”) articulates our standards for integrity and respect for our customers, our co-workers and third-parties alike. Our Code requires, among other things, that our employees and officers:

Comply with all applicable federal, state and local laws and regulations.

Provide a safe workplace by preventing or eliminating health and safety risks and providing employees with appropriate safety training.

Ensure that neither the Company nor any officer, employee, contractor, subcontractor, or agent of the Company retaliates against or takes any action harmful to the person reporting violations of the law or our Code.

Moreover, the Company believes it fully complies with U.S. employment and labor laws, including the right of its employees to support, organize and join a labor union. The Company does not prevent any of its employees from supporting, organizing or joining a union, and it prohibits discrimination and retaliation against such individuals. We believe that the three union-sponsored reports that are the source of the criticism at the core of the stockholder proposal are inaccurate and without merit and do not justify the cost and effort of the proposed human rights risk assessment.

In addition to our Code, we also maintain a Supplier Code of Conduct (our “Supplier Code”) that reinforces our expectation that our vendors, dealers, and other business partners share our commitment to full legal compliance and uncompromised ethics in how they do

business. We require our suppliers to fully comply with our Supplier Code and ensure that their employees and subcontractors comply with the requirements.

Our Supplier Code requires suppliers to share the Company’s commitment to human rights and equal opportunity in the work place and to conduct their employment practices in full compliance with all applicable laws and regulations. Our Supplier Code prohibits involuntary or child labor and non-compliance with applicable wage and hour laws.

The Company’s demonstrated commitment to high human rights standards and ethical conduct has been recognized repeatedly by others. For example, the Company was recently recognized as one of the 2015 World’s Most Ethical Companies by Ethisphere Institute, an independent center of research, best practices and thought leadership that promotes best practices in corporate ethics. This was the seventh straight year we received this award, which validates our constant focus on integrity and our values.

In addition to our recognized commitment to the highest ethical and human rights standards, the Company also maintains a robust risk assessment program. As more fully discussed in “Corporate Governance – Board’s Role in Risk Management”, our management regularly conducts enterprise-wide risk assessments, where risks, including legal, compliance, regulatory and reputational risks, are considered by management. These assessments are regularly reviewed with the Audit Committee of the Board of Directors.

The proposed human rights risk assessment is unnecessary in light of the Company’s demonstrated and independently verified commitment to human rights and ethical conduct. The proposal represents a diversion of resources and a duplication of effort with no corresponding benefit to the Company or its stockholders, employees or customers.

Required Vote

Approval of the stockholder proposal related to human rights risk assessment requires that the number of votes cast “FOR” the proposal represents a majority of the total votes cast on the proposal.

The Board of Directors recommends that you vote

“AGAINST”

the proposal related to human rights risk assessment.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement49


LOGO

Mr. Greg A. Kinczewski, on behalf of Marco Consulting Group Trust I, 550 W. Washington Blvd., Suite 900, Chicago, Illinois 60661, a

beneficial owner of 5,546 shares of the Company’s common stock, has advised us that he intends to submit the following proposal at the Annual Meeting.

Proposal

RESOLVED: Shareholders of T-Mobile US, Inc. (the “Company”) ask the board of directors (the “Board”) to adopt, and present for shareholder approval, a “proxy access” bylaw. Such bylaw shall require the Company to include in proxy materials prepared for a shareholder meeting at which directors are to be elected the name, Disclosure and Statement (as defined herein) of any person nominated for election to the board by a sharehodler [sic] or group (the “Nominator”) that meets the criteria established below. The Company shall allow shareholders to vote on such nominee on the Company’s proxy card.

The number of shareholder-nomined [sic] candidates appearing in proxy materials shall not exceed one quarter of the directors then serving. This bylaw, which shall supplement existing rights under Company bylaws, should provide that a Nominator must:

a)

have beneficially owned 3% or more of the Company’s outstanding common stock continuously for at least three years before submitting the nomination;

b)

given the Company, within the time period identified in its bylaws, written notice of the information required by the bylaws and any Securities and Exchange Commission rules about (i) the nominee, including

consent to being named in the 2004 Planproxy materials and 2010 Plan,to serving as director if elected; and (ii) the Nominator, including amongproof it owns the required shares (the “Disclosure”); and

c)

certify that (i) it will assume liability stemming from any legal or regulatory violation arising out of the Nominator’s communications with the Company shareholders, including the Disclosure and Statement; (ii) it will comply with all applicable laws and regulations if it uses soliciting material other things, stock optionsthan the Company’s proxy materials; and restricted stock unit awards. The approximate 169,980(c) to the best of its knowledge, the required shares available for grant underwere acquired in the 2004 Planordinary course of business and not to change or influence control at the approximate 3,079,236Company.

The Nominator may submit with the Disclosure a statement not exceeding 500 words in support of the nominee (the “Statement”). The Board shall adopt procedures for promptly resolving disputes over whether notice of a nomination was timely, whether the Disclosure and Statement satisfy the bylaw and applicable federal regulations, and the priority to be given to multiple nominations exceeding the one-quarter limit.

Supporting Statement

We believe proxy access is a fundamental shareholder right that will make directors more accountable and contribute to increased shareholder value. The CFA Institute’s 2014 assessment of pertinent academic studies and the use of proxy access in other markets similarly concluded that proxy access:

Would “benefit both the markets and corporate boardrooms, with little cost of disruption.”

Has the potential to raise overall US market capitalization by up to $140.3 billion if adopted market-wide. (http://www.cfapubs.org/dio/pdf/10.2469/ccb.v2014.n9.1)

The proposed bylaw terms enjoy strong investor support – votes for similar shareholder proposals averaged 55% from 2012 through September 2014 – and similar bylaws have been adopted by companies of various sizes across industries, including Chesapeake Energy, Hewlett-Packard, Western Union and Verizon. We urge shareholders to vote FOR this proposal.

50


PROPOSAL 5 – STOCKHOLDER PROPOSAL RELATED TO PROXY ACCESS

Board of Directors’ Response to Proposal 5

The Board recommends a vote “AGAINST” Proposal 5.

Our Nominating and Corporate Governance Committee and Board of Directors have fostered a diverse and experienced Board. Under the Board’s oversight, the Company has created significant stockholder value since the completion of our Business Combination on May 1, 2013. Specifically, our stock price has increased by 92% from the Business Combination to March 31, 2015. Stockholders have supported the Company’s performance and corporate governance structure, including our director recruitment and nomination policies, as evidenced by the significant support our director nominees received at the 2014 Annual Meeting of Stockholders.

This proposal does not articulate any specific concerns regarding our governance or performance and does not include an explanation as to why implementation of the requested additional board nomination procedures is necessary at the Company. Outside of this proposal by this single stockholder, no stockholder has expressed concern to the Company regarding the director nomination process

generally or the Nominating and Corporate Governance Committee’s consideration of any specific nominee.

The Board has adopted criteria and a process for identifying candidates for election to the Board, as described in “Corporate Governance – Director Nomination, Selection and Qualifications”. As part of this process, the Nominating and Corporate Governance Committee is able to consider prospective director candidates recommended by our stockholders. The Nominating and Corporate Governance Committee and the Board are in the best position to assess the characteristics and qualifications of potential director nominees and determine whether they will contribute to a well-rounded and effectively functioning Board that can operate freely and collaboratively, while providing effective oversight over management and representing the interest of all stockholders.

We believe implementation of this proposal will not create tangible benefits for the Company’s stockholders and instead could undermine important corporate governance protections and require the Company to incur costs for a process for which there is no demonstrated need.

Required Vote

Approval of the stockholder proposal related to proxy access requires that the number of votes cast “FOR” the proposal represents a majority of the total votes cast on the proposal.

The Board of Directors recommends that you vote

“AGAINST”

the proposal related to proxy access.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement51


LOGO

Why did I receive these materials?

As a holder of common stock of T-Mobile US, Inc. at the close of business on April 10, 2015, the record date, you are entitled to vote at the Annual Meeting. We are providing you with these proxy materials in connection with the solicitation of proxies by our Board of Directors to be used at the Annual Meeting. These proxy materials

will be made available to our stockholders on or about April 22, 2015. This Proxy Statement describes the proposals to be voted on at the Annual Meeting by the holders of record of our common stock on the record date and includes information required to be disclosed to our stockholders.

Who may vote at the Annual Meeting?

If you are a holder of record of our common stock as of the record date (April 10, 2015), you may vote your shares on the matters to be voted on at the Annual Meeting. You will receive only one proxy card for all the shares of common stock you hold in certificate and book-entry form.

If, as of the record date, you hold shares of our common stock in “street name” – that is, through an account with a bank, broker or other institution – you may direct the registered holder how to vote your shares at the Annual Meeting by following the instructions that you will receive from the registered holder.

How do proxies work?

You may vote by authorizing the persons selected by us as your proxy to vote your shares at the Annual Meeting according to your instructions on the matters discussed in this Proxy Statement, and according to their discretion on any other business that may properly

come before the Annual Meeting. We have designated two of our executive officers as proxies for the Annual Meeting: John J. Legere, our President and Chief Executive Officer, and J. Braxton Carter, our Executive Vice President and Chief Financial Officer.

How do I vote?

By Internet.    Go towww.proxyvote.com 24 hours a day, seven days a week, and follow the on-screen instructions to submit your proxy. You will need to have your proxy card available and use the Company number and account number shown on your proxy card to cast your vote. This method of voting will be available until 11:59 p.m. Eastern Daylight Time, or EDT, on June 1, 2015, or the date immediately before any date to which the Annual Meeting may be continued, adjourned or postponed.

By Mail.    You may submit your proxy by mail by returning your executed proxy card. You should sign your proxy card using exactly the same name as appears on the card, date your proxy card and indicate your voting preference on each proposal. You should mail your proxy card in plenty of time to allow delivery prior to the Annual Meeting. Proxy cards received after 9:30 a.m. PDT on June 2, 2015

may not be considered unless the Annual Meeting is continued, adjourned or postponed and then only if such proxy cards are received before the date and time the continued, adjourned or postponed Annual Meeting is held.

By Phone.    You also may submit your proxy by phone from the United States and Canada, using the toll-free number on the proxy card and the procedures and instructions described on the proxy card. Telephone voting will be considered at the Annual Meeting if completed prior to 11:59 p.m. EDT on June 1, 2015, or the date immediately before any date to which the Annual Meeting may be continued, adjourned or postponed.

In Person.    You also may vote in person at the Annual Meeting. See “What do I need in order to attend the Annual Meeting?” below.

How are the votes recorded? What is the effect if I do not vote?

If you are a registered holder and we receive a valid proxy card from you by mail or receive your vote by phone or Internet, your shares will be voted by the named proxy holders as indicated in your voting preference selection.

If you return your signed and dated proxy card without indicating your voting preference on one or more of the proposals to be considered at the Annual Meeting, or you otherwise do not indicate your voting preference via phone or Internet on one or more of the proposals to be considered at the Annual Meeting, your shares will be voted on the proposals for which you did not

indicate your voting preference in accordance with the recommendations of the Board of Directors.

If you hold your shares in street name and want your shares to be voted, you must instruct your broker, bank or other institution how to vote such shares. Absent your specific instructions, NYSE rules do not permit brokers and banks to vote your shares on a discretionary basis for non-routine corporate governance matters, such as the election of directors, the approval of the 2014 Employee Stock Purchase Plan and the stockholder proposals, but your shares can be voted without your instructions on the

52


QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING

ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm because this is considered a routine matter.

If you indicate that you wish to withhold authority or abstain from voting on a proposal, your shares will not be voted and will have no

direct effect on the outcome of that proposal. Your shares, available for grant underhowever, will count toward the 2010 Plan will be retired upon stockholder approvalquorum necessary to hold the Annual Meeting.

ProposalRecommended
Vote

Vote

Required

Withhold Votes/
Abstentions
Uninstructed
Shares
1. Election of Directors“FOR”PluralityNoNot voted
2. Ratification of Appointment of Independent Registered Public Accounting Firm“FOR”Majority*NoDiscretionary
vote
3. Approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan.2014 Employee Stock Purchase Plan“FOR”Majority*NoNot voted
4. Stockholder Proposal regarding Human Rights Risk Assessment“AGAINST”Majority*NoNot voted
5. Stockholder Proposal regarding Proxy Access“AGAINST”Majority*NoNot voted
*

Under our bylaws, the ratification of the appointment of our independent registered public accounting firm, the approval of the 2014 Employee Stock Purchase Plan and the stockholder proposals are decided by the vote of a majority of the votes cast in person or by proxy at the Annual Meeting by the holders of our shares of common stock entitled to vote thereon. Under this voting standard, any matter or proposal for which the vote required is a “majority” will, if presented, be approved if a majority of the votes cast “FOR” such proposal exceed the number of votes cast “AGAINST” such proposal. Neither abstentions nor broker non-votes will count as votes cast “FOR” or “AGAINST” the proposal. Therefore, abstentions and broker non-votes will have no direct effect on the outcome of the proposal.

Can I change my vote or revoke my proxy?

Yes. If you are a holder of record of our common stock, you may revoke your proxy at any time prior to the voting deadlines referred to in “How do I vote?” above by:

delivering to our Corporate Secretary at our principal executive office located at 12920 SE 38th Street, Bellevue, Washington 98006, a written revocation prior to the date and time of the Annual Meeting;

submitting another valid proxy card with a later date by mail;

submitting another proxy by phone or Internet; or

attending the Annual Meeting in person and giving the Company’s Inspector of Elections notice of your intent to vote your shares in person.

Attendance at the Annual Meeting will not, by itself, revoke a proxy.

If your shares are held in street name, you must contact your broker or other registered holder in order to revoke your previously submitted voting instructions. Such revocation should be made sufficiently in advance of the Annual Meeting to ensure that the revocation of the proxy card submitted by your registered holder is received by our Corporate Secretary prior to the date and time of the Annual Meeting.

What is required for a quorum at the Annual Meeting?

 

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To transact business at the Annual Meeting, a majority of the shares of our common stock outstanding on the record date and entitled to vote at the Annual Meeting must be present, in person or by proxy, at the Annual Meeting. If a quorum is not present at the Annual Meeting, no business can be transacted at that time, and the meeting will be continued, adjourned or postponed to a later date. On the record

date there were 811,674,813 shares of our common stock outstanding and entitled to vote at the Annual Meeting.

A stockholder’s instruction to “withhold authority,” abstentions, and broker non-votes will be counted as present and entitled to vote at the Annual Meeting for purposes of determining quorum.

What do I need in order to attend the Annual Meeting?

If you are a record holder of shares of our common stock, you must bring either the Notice of Internet Availability of Proxy Materials or the admission ticket enclosed with the paper copy of the proxy materials. However, if you hold your shares of common stock in street name, you must ask the broker, bank or other institution (registered holder) that holds your shares to provide you with a legal proxy, a copy of your account statement, or a letter from the registered holder confirming that you beneficially own or hold shares of our common stock as of the close of business on April 10, 2015. You can obtain an admission ticket by presenting this confirming documentation from your broker, bank or other institution at the Annual Meeting.

Every attendee of the Annual Meeting will be required to show a valid, government-issued picture identification that matches his or her

Notice of Internet Availability of Proxy Materials, admission ticket, legal proxy and/or confirming documentation to gain admission to the Annual Meeting. Seating is limited and will be available on a first-come, first-served basis.

For safety and security purposes, we do not permit any stockholder to bring cameras, video or audio recording equipment, large bags, briefcases or packages into the meeting room or to otherwise record or photograph the Annual Meeting. We also ask that all stockholders attending the Annual Meeting turn off all cell phones, pagers, and other electronic devices during the Annual Meeting. We reserve the right to inspect any bags, purses or briefcases brought into the Annual Meeting.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement53


Other Information and BusinessQUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING

Who will tabulate and count the votes?

Representatives of Broadridge Financial Solutions will tabulate the votes and act as the Company’s Inspector of Elections.

Where can I find the voting results for each proposal?

We will file a Current Report on Form 8-K within four business days after the Annual Meeting to announce the preliminary results of voting.

Whobears the cost of the proxy solicitation?

We will bear all of the costs of soliciting proxies, including the preparation, assembly, printing and distribution of all proxy materials. We also reimburse brokers, banks, fiduciaries, custodians and other institutions for their costs in forwarding the proxy materials to the beneficial owners or holders of our common stock. Our directors,

officers and employees also may solicit proxies by mail, personally, by telephone, by email or by other appropriate means. No additional compensation will be paid to directors, officers or other employees for such services.

54


LOGO

Company Information

Our website contains the Company’s current corporate governance guidelines, committee charters, the code of business conduct, code of ethics for senior financial officers and SEC filings. You may view or download any of these documents free of charge on the Investor Relations section of our website at www.t-mobile.com http://investor.t-mobile.comby clickingselecting “Governance Documents” under the “Investor Relations” hyperlink located in the footer of the Home page, then selecting “Corporate Governance” and finallytab. By selecting “SEC Filings & Reports.” YouFilings” under the “Financial Performance” tab, you will also find a copy of this Proxy Statement, a copy of the 20122014 Annual Report to Stockholders, a copy of the

Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012,2014, and a copycopies of the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. You may obtain a copy of any of the above-listed documents, including the Company’s Annual Report on Form 10-K, upon request, free of charge, by sending a request in writing to the Company’s Investor Relations department at T-Mobile US, Inc., 1 Park Avenue, 14th floor,Floor, New York, NY 10016.

Duplicate Mailings (Householding)

The Company is required to provide

We have adopted a procedure called “householding,” which has been approved by the 2012SEC. Under this procedure, we will deliver only one copy of our Notice of Internet Availability of Proxy Materials, and for those stockholders that received a paper copy of proxy materials in the mail, one copy of this Proxy Statement and our 2014 Annual Report to Stockholders, and this Proxy Statement to allmultiple stockholders of record on May 10, 2013, the record date. If you have more than one account in your name or another person atwho share the same address has(if they appear to be members of the same family) unless we have received contrary instructions from an account, the Company or your broker may deliveraffected stockholder.

If you received only one copy of this Proxy Statement and the 20122014 Annual Report to Stockholders as permitted by SEC rules, unless you notify the Companyor Notice of your desireInternet Availability of

Proxy Materials and wish to receive multiple copies.

The Company will promptly deliver, upon orala separate copy for each stockholder at your household, or written request,if you wish to participate in householding, please contact Broadridge Financial Solutions, Inc. either by calling toll free at no charge, additional copies of this Proxy Statement and the 2012 Annual Report(800) 542-1061 or by writing to Stockholders to any stockholder residing at the same address to which only one copy was mailed. Requests for additional copies for the current year or future years should be directed to the Investor Relations department at T-Mobile US,Broadridge Financial Solutions, Inc., 1 Park Avenue, 14th floor,Householding Department, 51 Mercedes Way, Edgewood, New York, NY 10016,11717.

A number of brokerage firms have instituted householding. If you hold your shares in street name, please contact your bank, broker or by calling the Investor Relations department at (212) 424-2959.

Stockholdersother holder of record residing at the same address and currently receiving multiple copies of the Proxy Statement and Annual Report to Stockholders may contact our Investor Relations department at the address and phone above or our transfer agent, AST, to request that only a single copy of the Proxy Statement and the Annual Report be mailed in the future. You may contact AST at 800-937-5449 or by mail at American Stock Transfer & Trust Co., 6201 15th Avenue, Brooklyn, New York 11219.information on householding.

Stockholder Proposals for the 20142016 Annual MeetingsMeeting of Stockholders

Proposals Pursuant to Rule 14a-814a-8..    Pursuant to Rule 14a-8 under the Exchange Act, stockholders may present proper proposals for inclusion in our Proxy Statement and for consideration at our 20142016 Annual Meeting of Stockholders. To be eligible for inclusion in our 20142016 Proxy Statement under Rule 14a-8, your proposal must be received by us no later than the close of business on January 17, 2014,December 24, 2015, and must otherwise comply with Rule 14a-8. While the Board of Directors will consider stockholder proposals, we reserve the right to omit from our proxy statement stockholder proposals that we are not required to include under the Exchange Act, includingRule 14a-8. In 2011, the Company received a proposal from a stockholder for inclusion in our Proxy Statement for the Annual Meeting to eliminate our classified board, which was subsequently withdrawn after we committed to seek stockholder approval at the 2013 Annual Meeting of Stockholders of an amendment to our certificate of incorporation to declassify our Board. Our Board was declassified in connection with the consummation of the Business Combination.

Business Proposals and Nominations Pursuant to Our BylawsBylaws..    Under our bylaws, in order to nominate a director or bring any other business before the stockholders at the 20142016 Annual Meeting of Stockholders that will not be included in our Proxy Statement pursuant to Rule 14a-8, you must comply with the

procedures and timing

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specifically described in our bylaws. In addition, assuming the date of the 20142016 Annual Meeting of Stockholders is not more than 30 days before and not more than 60 days after the anniversary date of the 20132015 Annual Meeting, you must notify us in writing, and such written notice must be delivered to our secretary no earlier than February 4, 2014,3, 2016, and no later than March 6, 2014.4, 2016.

A copy of our bylaws setting forth the requirements for the nomination of director candidates by stockholders and the requirements for proposals by stockholders may be obtained free of charge from the Company’s secretaryour Corporate Secretary at the address indicated on the first page of this Proxy Statement.12920 SE 38th Street, Bellevue, Washington 98006. A nomination or proposal that does not comply with the above procedures will be disregarded. Compliance with the above procedures does not require the Company to include the proposed nominee or proposal in the Company’s proxy solicitation material.

T-Mobile      Notice of 2015 Annual Meeting and Proxy Statement55


OTHER INFORMATION AND BUSINESS

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires the Company’s directors, executive officers and holders of 10% or more of the Company’sour outstanding common stock to file reports concerning their ownership (Form 3) and changes in ownership (Form 4 and Form 5) of Company equity

securities with the SEC. Based solely upon our review of such reports, the Company believes that all persons filed on a timely basis all reports required by Section 16(a), except that a late report was filed for Mr. Linquist reporting gifts totaling 25,000 shares in a prior year, a late report was filed for each of Messrs. Barnes, Callahan, Landry, Patterson and Perry reporting their annual non-employee director grant of stock options and restricted stock, and two late reports were filed for Mr. Currier each to report a sale pursuant to his Rule 10b5-1 plan..

Other Business

Management does not know of any other items or business, other than those in the accompanying Notice of Annual Meeting of Stockholders, that may properly come before the Annual Meeting or other matters incident to the conduct of the Annual Meeting.

As to any other item or proposal that may properly come before the Annual Meeting, including voting on a proposal omitted from this Proxy Statement pursuant to the rules of the SEC, it is intended that proxies will be voted in accordance with the discretion of the proxy holders.

 

By Order of the Board of Directors,

LOGO

LOGO

David A. Miller

Executive Vice President, General Counsel and Secretary

 

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56


Annex ALOGO

T-MOBILE US, INC.

2013 OMNIBUS INCENTIVE2014 EMPLOYEE STOCK PURCHASE PLAN

T-Mobile US, Inc.,SECTION 1. PURPOSE

The purposes of the Plan are to provide employees of the Company and its Designated Companies with an opportunity to acquire an equity ownership interest in the Company and to encourage employees to remain in the employ of the Company and its Designated Companies.

The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code, but it makes no representation of such status, nor does it undertake to maintain such status. The provisions of the Plan will be construed so as to extend and limit Plan participation in a Delaware corporation (the “Company”), setsuniform and nondiscriminatory basis consistent with the requirements of Section 423 of the Code.

SECTION 2. DEFINITIONS

Certain capitalized terms used in the Plan have the meanings set forth herein the terms of its 2013 Omnibus Incentive Plan (the “Plan”), as follows:inAppendix A.

SECTION 3. ADMINISTRATION

 

1.3.1PURPOSEAdministration by Committee

The Plan is intended to enhance the Company’s and its Affiliates’ (as defined herein) ability to attract and retain highly qualified officers, non-employee members of the Board, key employees, consultants and advisors, and to motivate such officers, non-employee members of the Board, key employees, consultants and advisors to serve the Company and its Affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, other stock-based awards and cash awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein.

2.DEFINITIONS

For purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply:

2.1.       “Affiliate” means any company or other trade or business that “controls,” is “controlled by” or is “under common control” with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary.

2.2.       “Annual Incentive Award” means a cash-based Performance Award with a performance period that is the Company’s fiscal year or other 12-month performance period as specified under the terms of the Award as approved by the Committee.

2.3.       “Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Stock-based Award or cash award under the Plan.

2.4.       “Award Agreement” means a written agreement between the Company and a Grantee, or notice from the Company or an Affiliate to a Grantee that evidences and sets out the terms and conditions of an Award.

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

2.6.       “Change in Control” shall have the meaning set forth inSection 15.3.2.

2.7.       “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. References to the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder.

2.8.       “Committee” means one or more committees or subcommittees of the Board. The Board will cause the Committee to satisfy the applicable requirements of any stock exchange on which the Common Stock may then be listed. For purposes of Awards to Covered Employees intended to constitute Performance Awards, to the extent required by Code Section 162(m), Committee means all of the members of the


Committee who are “outside directors” within the meaning of Section 162(m) of the Code. For purposes of Awards to Grantees who are subject to Section 16 of the Exchange Act, Committee means all of the members of the Committee who are “non-employee directors” within the meaning of Rule 16b-3 adopted under the Exchange Act. All references in the Plan to the Board shall mean such Committee or the Board.

2.9.       “Company” means T-Mobile US, Inc., a Delaware corporation, or any successor corporation.

2.10.     “Common Stock” or “Stock” means a share of common stock of the Company, par value $0.00001 per share.

2.11.     “Covered Employee” means a Grantee who is a “covered employee” within the meaning of Section 162(m)(3) of the Code as qualified bySection 12.4 herein.

2.12.     “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. Notwithstanding the foregoing, for any Awards that constitute nonqualified deferred compensation within the meaning of Section 409A and provide for an accelerated payment in connection with any Disability, Disability shall have the same meaning as defined under Section 409A.

2.13.     “Effective Date” means [], the date the Plan was approved by the Company’s stockholders.

2.14.     “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

2.15.     “Fair Market Value” of a share of Common Stock as of a particular date shall mean (i) if the Common Stock is listed on a national securities exchange, the closing or last price of the Common Stock on the composite tape or other comparable reporting system for the applicable date, or if the applicable date is not a trading day, the trading day immediately preceding the applicable date, or (ii) if the shares of Common Stock are not then listed on a national securities exchange, the closing or last price of the Common Stock quoted by an established quotation service for over-the-counter securities, or (iii) if the shares of Common Stock are not then listed on a national securities exchange or quoted by an established quotation service for over-the-counter securities, or the value of such shares is not otherwise determinable, such value as determined by the Board in good faith in its sole discretion.

2.16.     “Family Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the applicable individual, any person sharing the applicable individual’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial interest, a foundation in which any one or more of these persons (or the applicable individual) control the management of assets, and any other entity in which one or more of these persons (or the applicable individual) own more than fifty percent of the voting interests

2.17.     “Grant Date” means, as determined by the Board, the latest to occur of (i) the date as of which the Board approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award underSection 6 hereof, or (iii) such other date as may be specified by the Board in the Award Agreement.

2.18.     “Grantee” means a person who receives or holds an Award under the Plan.

2.19.     “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time.

2.20.     “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option.

2.21.     “Option” means an option to purchase one or more shares of Stock pursuant to the Plan.

2.22.     “Option Price”means the exercise price for each share of Stock subject to an Option.

2.23.     “Other Stock-based Awards”means Awards consisting of Stock units, or other Awards, valued in whole or in part by reference to, or otherwise based on, Common Stock.

2.24.     “Performance Award”means an Award made subject to the attainment of performance goals (as described inSection 12) over a performance period of at least one (1) year, and includes an Annual Incentive Award.

2.25.     “Plan”means this T-Mobile US, Inc. 2013 Omnibus Incentive Plan, as amended from time to time.

2.26.     “Predecessor Plans”means the MetroPCS Communications, Inc. 2004 Equity Incentive Compensation Plan and the MetroPCS Communications, Inc. 2010 Equity Incentive Compensation Plan.

2.27.     “Purchase Price” means the purchase price for each share of Stock pursuant to a grant of Restricted Stock.

2.28.     “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant toSection 10 hereof.

2.29.     “Restricted Stock Unit” means a bookkeeping entry representing the equivalent of shares of Stock, awarded to a Grantee pursuant toSection 10 hereof.

2.30.     “SAR Exercise Price” means the per share exercise price of a SAR granted to a Grantee underSection 9 hereof.

2.31.     “SEC” means the United States Securities and Exchange Commission.

2.32.     “Section 409A” means Section 409A of the Code.

2.33.     “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended.

2.34.     “Separation from Service” means a termination of Service by a Service Provider, as determined by the Board, which determination shall be final, binding and conclusive; provided if any Award governed by Section 409A is to be distributed on a Separation from Service, then the definition of Separation from Service for such purposes shall comply with the definition provided in Section 409A.

2.35.     “Service” means service as a Service Provider to the Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or an Affiliate.

2.36.     “Service Provider” means an employee, officer, non-employee member of the Board, consultant or advisor of the Company or an Affiliate.

2.37.     “Stock Appreciation Right” or “SAR” means a right granted to a Grantee underSection 9 hereof.

2.38.     “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code.

2.39.     “Substitute Award” means any Award granted in assumption of or in substitution for an award of a company or business acquired by the Company or a Subsidiary or with which the Company or an Affiliate combines.

2.40.     “Ten Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied.

2.41.     “Termination Date” means the date that is ten (10) years after the Effective Date, unless the Plan is earlier terminated by the Board underSection 5.2 hereof.

2.42.     “Transaction” shall have the meaning set forth inSection 15.2.

3.ADMINISTRATION OF THE PLAN

3.1.     General.

The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s certificate of incorporation and bylaws and applicable law. The Board shall have the power and authority to delegate its responsibilities hereunder to the Committee, which shall have full authority to act in accordance with its charter, and with respect to the authority of the Board to act hereunder, all references to the Board shall be deemed to include a reference to the Committee, to the extent such power or responsibilities have been delegated. Except as specifically provided inSection 14 or as otherwise may be required by applicable law, regulatory requirement or the certificate of incorporation or the bylaws of the Company, the Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan. The Committee shall administer the Plan; provided that, the Board shall retain the right to exercise the authority of the Committee to the extent consistent with applicable law and the applicable requirements of any securities exchange on which the Common Stock may then be listed. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. Without limitation, the Board shall have full and final authority, subject to the other terms and conditions of the Plan, to:

(i) designate Grantees;

(ii) determine the type or types of Awards to be made to a Grantee;

(iii) determine the number of shares of Stock to be subject to an Award;

(iv) establish the terms and conditions of each Award (including, but not limited to, the Option Price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options);

(v) prescribe the form of each Award Agreement; and

(vi) amend, modify, or supplement the terms of any outstanding Award including the authority, in order to effectuate the purposes of the Plan, to modify Awards to foreign nationals or individuals who are employed outside the United States to recognize differences in local law, tax policy, or custom.

To the extent permitted by applicable law, the Board may delegate its authority as identified herein to any individual or committee of individuals (who need not be directors), including without limitation the authority to make Awards to Grantees who are not subject to Section 16 of the Exchange Act or who are not Covered Employees. To the extent that the Board delegates its authority to make Awards as provided by this Section, all references in the Plan to the Board’s authority to make Awards and determinations with respect thereto shall be deemed to include the Board’s delegate. Any such delegate shall serve at the pleasure of, and may be removed at any time by the Board.

3.2.     Restrictions; No Repricing.

Notwithstanding the foregoing, no amendment or modification may be made to an outstanding Option or SAR that causes the Option or SAR to become subject to Section 409A, without the Grantee’s written prior approval. Notwithstanding any provision herein to the contrary, the repricing of Options or SARs is prohibited without prior approval of the Company’s stockholders. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option or SAR to lower its Option Price or SAR Exercise Price; (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or canceling an Option or SAR at a time when its Option Price or SAR Exercise Price is greater than the Fair Market Value of the underlying shares in exchange for another Award, unless the cancellation and exchange occurs in connection with a change in capitalization or similar change underSection 15. A cancellation and exchange under clause (iii) would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Grantee.

3.3.     Award Agreements; Clawbacks.

The grant of any Award may be contingent upon the Grantee executing the appropriate Award Agreement. The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in competition with the Company or any Affiliate thereof, to the extent specified in such Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is terminated for “cause” as defined in the applicable Award Agreement.

Awards shall be subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (ii) similar rules under the laws of any other jurisdiction, (iii) any compensation recovery policies adopted by the Company to implement any such requirements or (iv) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to a Grantee.

3.4.     Deferral Arrangement.

The Board may permit or require the deferral of any Award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish and in accordance with Section 409A, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such credits into deferred Stock units.

3.5.     No Liability.

No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan, any Award or Award Agreement.

3.6.     Book Entry.

Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of stock certificates through the use of book-entry.

4.STOCK SUBJECT TO THE PLAN

4.1.     Authorized Number of Shares

Subject to adjustment underSection 15, the aggregate number of shares of Common Stock that may be initially issued pursuant to the Plan is 63,275,000 shares. In addition, Shares of Common Stock underlying any outstanding stock option or other award granted under either of the Predecessor Plans that is canceled, terminates, expires, or lapses for any reason without issuance of such shares shall be available for the grant of new Awards under this Plan. No new awards shall be granted under the Predecessor Plans following theEffective Date. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares, treasury shares, or shares purchased on the open market or otherwise, all as determined by the Company from time to time.

4.2.     Share Counting

If any Award is canceled, terminates, expires, or lapses for any reason, any shares of Common Stock subject to such Award shall not count against the aggregate number of Shares available for grants under the Plan set forth inSection 4.1 above. In addition, the following items shall not count against the aggregate number of shares of Common Stock available for grants under the Plan set forth inSection 4.1 above: (i) the payment in cash of dividends or dividend equivalents under any outstanding Award; (ii) any Award that is settled in cash rather than by issuance of Shares; or (iii) Substitute Awards. The full number of shares of Common Stock with respect to which an Option or SAR is granted shall count against the aggregate number of shares available for grant under the Plan. Accordingly, if in accordance with the terms of the Plan, a Participant pays the Option Price for an Option by either tendering previously owned shares or having the Company withhold shares, then such shares surrendered to pay the Option Price shall continue to count against the aggregate number of shares available for grant under the Plan set forth inSection 4.1 above. In addition, if in accordance with the terms of the Plan, a Participant satisfies any tax withholding requirement with respect to any taxable event arising as a result of this Plan by either tendering previously owned shares or having the Company withhold shares, then such shares surrendered to satisfy such tax withholding requirements shall continue to count against the aggregate number of shares available for grant under the Plan set forth inSection 4.1 above.

4.3.     Award Limits

4.3.1.     Incentive Stock Options.

Subject to adjustment underSection 15, all 63,275,000 of such shares of Common Stock available for issuance under the Plan shall be available for issuance under Incentive Stock Options.

4.3.2.     Individual Award Limits for Section 162(m) – Share-Based Awards.

Subject to adjustment underSection 15, the maximum number of each type of Award (other than cash-based Performance Awards) intended to constitute “performance-based compensation” under Code Section 162(m) granted to any Grantee in any calendar shall not exceed the following: (i) Options and SARs: 5,000,000 shares; and (ii) all share-based Performance Awards (including Restricted Stock, Restricted Stock Units and Other Stock-based Awards that are Performance Awards): 2,000,000 shares.

4.3.3.     Individual Award Limits for Section 162(m) – Cash-Based Awards.

The maximum amount of cash-based Performance Awards intended to constitute “performance-based compensation” under Code Section 162(m) granted to any Grantee in any calendar year shall not exceed the following: (i) Annual Incentive Award: $10,000,000; and (ii) all other cash-based Performance Awards: $10,000,000.

4.3.4.     Limits on Awards to Non-Employee Directors.

No more than $400,000 may be granted in equity-based Awards under the Plan during any one year to a Grantee who is a non-employee member of the Board (based on the Fair Market Value of the shares of Common Stock underlying the Award as of the applicable Grant Date in the case of Restricted Stock, Restricted Stock Units or Other Stock-based Awards, and based on the applicable grant date fair value for accounting purposes in the case of Options or SARs).

5.EFFECTIVE DATE, DURATION AND AMENDMENTS

5.1.     Term.

The Plan shall be effective as of the Effective Date, provided that it has been approved by the Company’s stockholders. The Plan shall terminate automatically on the ten (10) year anniversary of the Effective Date and may be terminated on any earlier date as provided inSection 5.2.

5.2.     Amendment and Termination of the Plan.

The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Awards which have not been made. An amendment shall be contingent on approval of the Company’s stockholders to the extent stated by the Board, required by applicable law or required by applicable stock exchange listing requirements. Notwithstanding the foregoing, any amendment toSection 3.2shall be contingent upon the approval of the Company’s stockholders. No Awards shall be made after the Termination Date. The applicable terms of the Plan, and any terms and conditions applicable to Awards granted prior to the Termination Date shall survive the termination of the Plan and continue to apply to such Awards. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, materially impair rights or obligations under any Award theretofore awarded.

6.AWARD ELIGIBILITY AND LIMITATIONS

6.1.     Service Providers.

Subject to this Section, Awards may be made to any Service Provider, including any Service Provider who is an officer, non-employee member of the Board, consultant or advisor of the Company or of any Affiliate, as the Board shall determine and designate from time to time in its discretion.

6.2.     Successive Awards.

An eligible person may receive more than one Award, subject to such restrictions as are provided herein.

6.3.     Stand-Alone, Additional, Tandem, and Substitute Awards.

Awards may, in the discretion of the Board, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right of a Grantee to

receive payment from the Company or any Affiliate. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall have the right to require the surrender of such other Award in consideration for the grant of the new Award. Subject toSection 3.2, the Board shall have the right, in its discretion, to make Awards in substitution or exchange for any other award under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any Affiliate, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for example, Restricted Stock Units or Restricted Stock).

7.AWARD AGREEMENT

Each Award shall be evidenced by an Award Agreement, in such form or forms as the Board shall from time to time determine. Without limiting the foregoing, an Award Agreement may be provided in the form of a notice which provides that acceptance of the Award constitutes acceptance of all terms of the Plan and the notice. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed Non-qualified Stock Options.

8.TERMS AND CONDITIONS OF OPTIONS

8.1.     Option Price.

The Option Price of each Option shall be fixed by the Board and stated in the related Award Agreement. The Option Price of each Option (except those that constitute Substitute Awards) shall be at least the Fair Market Value on the Grant Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten Percent Stockholder as of the Grant Date, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock.

8.2.     Vesting.

Subject toSection 8.3hereof, each Option shall become exercisable at such times and under such conditions (including, without limitation, performance requirements) as shall be determined by the Board and stated in the Award Agreement.

8.3.     Term.

Each Option shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years from the Grant Date, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the related Award Agreement; provided, however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option at the Grant Date shall not be exercisable after the expiration of five (5) years from its Grant Date.

8.4.     Limitations on Exercise of Option.

Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, (i) prior to the date the Plan is approved by the stockholders of the Company as provided herein or (ii) after the occurrence of an event which results in termination of the Option.

8.5.     Method of Exercise.

An Option that is exercisable may be exercised by the Grantee’s delivery of a notice of exercise to the Company, setting forth the number of shares of Stock with respect to which the Option is to be exercised, accompanied by full payment for the shares. To be effective, notice of exercise must be made in accordance with procedures established by the Company from time to time.

8.6.     Rights of Holders of Options.

Unless otherwise stated in the related Award Agreement, an individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided inSection 15 hereof or the related Award Agreement, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such issuance.

8.7.     Delivery of Stock Certificates.

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option.

8.8.     Limitations on Incentive Stock Options.

An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted.

9.TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

9.1.     Right to Payment.

A SAR shall confer on the Grantee a right to receive, upon exercise thereof, the excess of (i) the Fair Market Value of one share of Stock on the date of exercise over (ii) the SAR Exercise Price, as determined by the Board. The Award Agreement for an SAR shall specify the SAR Exercise Price, which shall be fixed on the Grant Date as not less than the Fair Market Value of a share of Stock on that date. SARs may be granted alone or in conjunction with all or part of an Option or at any subsequent time during the term of such Option or in conjunction with all or part of any other Award. A SAR granted in tandem with an outstanding Option following the Grant Date of such Option shall have a grant price that is equal to the Option Price; provided, however, that the SAR’s grant price may not be less than the Fair Market Value of a share of Stock on the Grant Date of the SAR to the extent required by Section 409A.

9.2.     Other Terms.

The Board shall determine at the Grant Date or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following Separation from Service or upon other conditions, the method of exercise, whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR.

9.3.     Term of SARs.

The term of a SAR granted under the Plan shall be determined by the Board, in its sole discretion; provided, however, that such term shall not exceed ten (10) years.

9.4.     Payment of SAR Amount.

Upon exercise of a SAR, a Grantee shall be entitled to receive payment from the Company (in cash or Stock, as determined by the Board) in an amount determined by multiplying:

(i)the difference between the Fair Market Value of a share of Stock on the date of exercise over the SAR Exercise Price; by

(ii)the number of shares of Stock with respect to which the SAR is exercised.

10.TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS

10.1.     Restrictions.

At the time of grant, the Board may, in its sole discretion, establish a period of time (a “restricted period”) and any additional restrictions including the satisfaction of corporate or individual performance objectives applicable to an Award of Restricted Stock or Restricted Stock Units in accordance withSection 12.1 and12.2. Each Award of Restricted Stock or Restricted Stock Units may be subject to a different restricted period and additional restrictions. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted period or prior to the satisfaction of any other applicable restrictions.

10.2.     Restricted Stock Certificates.

The Company shall issue stock, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates or other evidence of ownership representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee; provided, however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and regulations and make appropriate reference to the restrictions imposed under the Plan and the Award Agreement.

10.3.     Rights of Holders of Restricted Stock.

Unless the Board otherwise provides in an Award Agreement, holders of Restricted Stock shall have rights as stockholders of the Company, including voting and dividend rights.

10.4.     Rights of Holders of Restricted Stock Units.

10.4.1.     Settlement of Restricted Stock Units.

Restricted Stock Units may be settled in cash or Stock, as determined by the Board and set forth in the Award Agreement. The Award Agreement shall also set forth whether the Restricted Stock Units shall be settled (i) within the time period specified for “short term deferrals” under Section 409A or (ii) otherwise within the requirements of Section 409A, in which case the Award Agreement shall specify upon which events such Restricted Stock Units shall be settled.

10.4.2.     Voting and Dividend Rights.

Unless otherwise stated in the applicable Award Agreement, holders of Restricted Stock Units shall not have rights as stockholders of the Company, including no voting or dividend or dividend equivalents rights.

10.4.3.     Creditor’s Rights.

A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement.

10.5.     Purchase of Restricted Stock.

The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock from the Company at a Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the related Award Agreement. If specified in the Award Agreement, the Purchase Price may be deemed paid by Services already rendered. The Purchase Price shall be payable in a form described inSection 11or, in the discretion of the Board, in consideration for past Services rendered.

10.6.     Delivery of Stock.

Upon the expiration or termination of any restricted period and the satisfaction of any other conditions prescribed by the Board, the restrictions applicable to shares of Restricted Stock or Restricted Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be.

11.FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

11.1.     General Rule.

Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company, except as provided in thisSection 11.

11.2.     Surrender of Stock.

To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock may be made all or in part through the tender to the Company of shares of Stock, which shares shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price for Restricted Stock has been paid thereby, at their Fair Market Value on the date of exercise or surrender. Notwithstanding the foregoing, in the case of an Incentive Stock Option, the right to make payment in the form of already owned shares of Stock may be authorized only at the time of grant.

11.3.     Cashless Exercise.

With respect to an Option only (and not with respect to Restricted Stock), to the extent permitted by law and to the extent the Award Agreement so provides, payment of the Option Price may be made all or in part by delivery (on a form acceptable to the Company) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described inSection 17.3.

11.4.     Other Forms of Payment.

To the extent the Award Agreement so provides, payment of the Option Price or the Purchase Price for Restricted Stock may be made in any other form that is consistent with applicable laws, regulations and rules, including, but not limited to, the Company’s withholding of shares of Stock otherwise due to the exercising Grantee.

12.TERMS AND CONDITIONS OF PERFORMANCE AWARDS

12.1.     Performance Conditions.

The right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specifiedadministered by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.

12.2.     Performance Awards Grantedshall have the authority to Designated Covered Employees.

If anddelegate duties to the extent that the Committee determines that a Performance Award to be granted to a Grantee who is designated by the Committee as having the potential to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/officers, directors or settlement of such Performance Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in thisSection 12.2. Notwithstanding anything herein to the contrary, the Committee in its discretion may provide for Performance Awards to Covered Employees that are not intended qualify as “performance-based compensation” for purposes of Code Section 162(m).

12.2.1.     Performance Goals Generally.

The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with thisSection 12.2. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may, in the discretion of the Committee, be established on a Company-wide basis, or with respect to one or more business units, divisions, subsidiaries or business segments, as applicable. Performance goals may be absolute or relative (to the performance of one or more comparable companies or indices). To the extent consistent with the requirements of Code Section 162(m), the Committee may determine prospectively at the time that goals under thisSection 12are established, the extent to which measurement of performance goals may exclude the impact of charges for restructuring, discontinued operations, extraordinary items, and other unusual non-recurring items, and the cumulative effects of tax or accounting changes (each as defined by generally accepted accounting principles and as identified in the Company’s financial statements or other SEC filings). Performance goals may differ for Performance Awards granted to any one Grantee or to different Grantees.

12.2.2.     Business Criteria.

One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business unitsemployees of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used exclusively by the Committee in establishing performance goals for such Performance Awards: (i) cash flow; (ii) earnings per share, as adjusted for any stock split, stock dividend or other

recapitalization; (iii) earnings measures; (iv) return on equity; (v) total shareholder return; (vi) share price performance, as adjusted for any stock split, stock dividend or other recapitalization; (vii) return on capital; (viii) revenue; (ix) income; (x) profit margin; (xi) return on operating revenue; (xii) brand recognition/acceptance; (xiii) customer satisfaction; (xiv) productivity; (xv) expense targets; (xvi) market share; (xvii) cost control measures; (xviii) balance sheet metrics; (xix) strategic initiatives; (xx) implementation, completion or attainment of measurable objectives with respect to recruitment or retention of personnel or employee satisfaction; (xxi) churn or other metrics related to subscriptions/subscribers, or (xxii) and any other business criteria established by the Committee; provided, however, that such business criteria shall include any derivations of business criteria listed above (e.g., income shall include pre-tax income, net income, operating income, etc.).

12.2.3.     Timing for Establishing Performance Goals.

Performance goals shall be established not later than 90 days after the beginning of any performance period applicable to such Performance Awards, or at such other date as may be required or permitted for “performance-based compensation” under Code Section 162(m).

12.2.4.     Settlement of Performance Awards; Other Terms.

Settlement of Performance Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance Awards.

12.3.     Written Determinations.

All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential individual Performance Awards and as to the achievement of performance goals relating to Performance Awards, shall be made in writing in the case of any Award intended to qualify under Code Section 162(m) to the extent required by Code Section 162(m). To the extent permitted by Code Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards.

12.4.     Status of Section 12.2 Awards under Code Section 162(m).

It is the intent of the Company that Performance Awards underSection 12.2 hereof granted to persons who are designated by the Committee as having the potential to be Covered Employees within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Code Section 162(m) and regulations thereunder. Accordingly, the terms ofSection 12.2, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards, as having the potential to be a Covered Employee with respect to that fiscal year or any subsequent fiscal year. If any provision of the Plan or any agreement relating to such Performance Awards does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements.it deems advisable.

 

13.3.2OTHER STOCK-BASED AWARDSAuthority of Committee

13.1.     Grant of Other Stock-based Awards.

Other Stock-based Awards may be granted either alone or in addition to or in conjunction with other Awards under the Plan. Other Stock-based Awards may be granted in lieu of other cash or other compensation to

which a Service Provider is entitled from the Company or may be used in the settlement of amounts payable in shares of Common Stock under any other compensation plan or arrangement of the Company. Subject to the provisions of the Plan, the Committee shall have the solefull and completeexclusive discretionary authority to determineconstrue and interpret the personsPlan and options granted under it; to whomestablish, amend, and revoke rules and regulations for administration and operation of the Plan (including, without limitation, the determination and change of Offering Periods, Purchase Periods and payment procedures, and the requirement that shares of Common Stock be held by a specified broker); to determine all questions of eligibility, disputed claims and policy that may arise in the administration of the Plan; and, generally, to exercise such powers, perform such acts and make such determinations as the Committee deems necessary or expedient to administer and operate the Plan, including, but not limited to, designating from time or times atto time which such AwardsSubsidiaries of the Company shall be made,Designated Companies. The Committee’s determinations as to the interpretation and operation of the Plan shall be final and conclusive, and each action of the Committee shall be binding on all persons.

3.3Administrative Modifications

The Plan provisions relating to the administration of the Plan may be modified by the Committee from time to time as may be desirable to satisfy any requirements of or under the

securities and/or other applicable laws of the United States or other jurisdiction, to obtain any exemption under such laws, to reduce or eliminate any unfavorable legal, accounting or other consequences or to achieve any other purpose deemed appropriate by the Committee.

SECTION 4. NUMBER OF SHARES

Subject to adjustment from time to time as provided in Section 10, the number of shares of Common Stock reserved for sale and authorized for issuance pursuant to the Plan is:

(a) 10,000,000 shares; plus

(b) an annual increase to be added as of the first day of the Company’s fiscal year beginning in 2016 equal to the lesser of (i) 5,000,000 shares, and (ii) an amount determined by the Committee; provided that any shares from any such increases in previous years that are not actually issued shall continue to be available for issuance under the Plan.

If any option granted under the Plan shall for any reason terminate without having been exercised, the shares of Common Stock not purchased under such option shall again be available for issuance under the Plan. The shares of Common Stock purchased under the Plan may be authorized but unissued shares or shares now held or subsequently acquired by the Company as treasury shares.

SECTION 5. OFFERINGS

5.1Offering Periods

(a) Except as otherwise set forth below, the Plan shall be implemented by a series of Offerings (each, an “Offering”) during which shares of Common Stock may be purchased by Participants. The first Offering Period shall begin on April 1, 2015 and shall end on September 30, 2015. Subsequent Offering Periods shall run from October 1 through March 31 and April 1 through September 30 of each year.

(b) Notwithstanding the foregoing, the Committee may establish (i) a different term for one or more Offerings and (ii) different commencing and ending dates for such Offerings; provided, however, that an Offering Period may not exceed five (5) years; and provided, further, that if the Purchase Price may be less than eighty-five percent (85%) of the Fair Market Value of the Common Stock on the Purchase Date, the Offering Period may not exceed twenty-seven (27) months.

(c) The Committee may further designate separate Offerings under the Plan (the terms of which need not be identical and which may be overlapping or consecutive) in which Eligible Employees of one or more Employers may participate, and the provisions of the Plan will separately apply to each Offering, including the limitations set forth in Section 5.1(b) regarding the maximum length of Offering Periods.

(d) In the event that the first or the last day of an Offering Period is not a regular business day, then the first day of the Offering Period shall be deemed to be the next regular business day and the last day of the Offering Period shall be deemed to be the last preceding regular business day.

5.2Purchase Periods

(a) Each Offering Period shall consist of one or more consecutive purchase periods (each, a “Purchase Period”). The last day of each Purchase Period shall be the purchase date (a “Purchase Date”) for such Purchase Period. Except as otherwise set forth below, the first Purchase Period shall begin on April 1, 2015 and shall end on September 30, 2015. Subsequent Purchase Periods shall run from October 1 through March 31 and April 1 through September 30 of each year.

(b) Notwithstanding the foregoing, the Committee may establish (i) a different term for one or more Purchase Periods within an Offering Period and (ii) different commencing and ending dates for any such Purchase Period.

(c) In the event that the first or last day of a Purchase Period is not a regular business day, then the first day of the Purchase Period shall be deemed to be the next regular business day and the last day of the Purchase Period shall be deemed to be the last preceding regular business day.

SECTION 6. ENROLLMENT

6.1Initial Enrollment

An Eligible Employee may enroll in the Plan for an Offering Period by completing and signing an enrollment election form or by such other means as the Committee shall prescribe and submitting such enrollment election to the Company (or completing such other established enrollment procedure) in accordance with procedures established by the Committee on or before the Cut-Off Date with respect to such Offering Period.

6.2Continuing Effectiveness of Enrollment Election

Unless otherwise determined by the Committee, the enrollment election and the designated rate of payroll deduction or contribution by a Participant shall continue for future Offering Periods unless the Participant changes or cancels, in accordance with procedures established by the Committee, the enrollment election or designated rate of payroll deduction or contribution prior to the Cut-Off Date with respect to a future Offering Period or elects to withdraw from the Plan in accordance with Section 9.1.

6.3Initial Eligibility During Offering Period; Participation in Multiple Offering Periods

An employee who becomes eligible to participate in the Plan after an Offering Period has begun shall not be eligible to participate in such Offering Period but may participate in any subsequent Offering Period, provided that such employee is still an Eligible Employee as of the commencement of any such subsequent Offering Period and completes the enrollment procedures set forth in this Section 6. Eligible Employees may not participate in more than one Offering at a time.

SECTION 7. GRANT OF OPTIONS ON ENROLLMENT

7.1Option Grant

(a) Enrollment by an Eligible Employee in the Plan as of an Enrollment Date will constitute the grant by the Company to such Participant of an option on such Enrollment Date to purchase shares of Common Stock from the Company pursuant to the Plan.

(b) Notwithstanding any other provision of the Plan to the contrary, no Eligible Employee shall be granted an option under the Plan to the extent that, immediately after the grant, such Eligible Employee would own, directly or indirectly, an aggregate of five percent (5%) or more of the total combined voting power or value of all outstanding shares of all classes of stock of the Company or any Parent or Subsidiary (and for purposes of this Section 7.1(b), the rules of Section 424(d) of the Code shall apply, and stock that the employee may purchase under outstanding options shall be treated as stock owned by the employee).

7.2Share Purchase Limits

(a) Notwithstanding any other provision of the Plan to the contrary, unless the Committee determines otherwise for a future Offering Period or Purchase Period, no Participant may purchase during a single Offering Period more than 4,000 shares of Common Stock, subject to adjustment as provided in the Plan.

(b) Notwithstanding any other provision of the Plan to the contrary, no Participant shall purchase Common Stock with a Fair Market Value in excess of the following applicable limit:

(i) In the case of Common Stock purchased during an Offering Period that commenced in the current calendar year, the limit shall be equal to (A) $25,000 minus (B) the Fair Market Value of the Common Stock that the Participant previously purchased in the current calendar year (under the Plan and all other employee stock purchase plans of the Company or any Parent or Subsidiary of the Company);

(ii) In the case of Common Stock purchased during an Offering Period that commenced in the immediately preceding calendar year, the limit shall be equal to (A) $50,000 minus (B) the Fair Market Value of the Common Stock that the Participant previously purchased in the preceding year (under the Plan and all other employee stock purchase plans of the Company or any Parent or Subsidiary of the Company); or

(iii) In the case of Common Stock purchased during an Offering Period that commenced two (2) calendar years prior, the limit shall be equal to (A) $75,000 minus (B) the Fair Market Value of the Common Stock that the Participant

previously purchased in such preceding years (under the Plan and all other employee stock purchase plans of the Company or any Parent or Subsidiary of the Company).

For purposes of this Section 7.2(b), the Fair Market Value of Common Stock shall be determined in each case as of the beginning of the Offering Period in which such Common Stock is purchased.

(c) The Company shall have the authority to take all necessary action, including but not limited to suspending the payroll deductions or contributions of any Participant, in order to ensure compliance with this Section 7.2. Any payments made by a Participant in excess of the limitations of this Section 7.2 shall be returned to the Participant in accordance with procedures established by the Committee, without interest, except as otherwise required by local law. Any payroll deductions or contributions suspended as a result of the limits of this Section 7.2 shall automatically resume at the beginning of the earliest Purchase Period for which the foregoing limits will not be exceeded, which for purposes of Section 7.2(b) will end in the next calendar year (if the individual is then an Eligible Employee and has not otherwise terminated participation in the Plan), provided that when the Company automatically resumes such payroll deductions or contributions, the Company shall apply the rate in effect immediately prior to such suspension.

7.3Governmental Approval

Notwithstanding any other provision of the Plan to the contrary, an option granted pursuant to such Awards,the Plan shall be subject to obtaining all necessary governmental approvals and qualifications of the Plan and the issuance of options and sale of Common Stock pursuant to the Plan.

7.4Stockholder Approval

Notwithstanding any other provision of the Plan to the contrary, the Plan and the exercisability of options granted under the Plan will be subject to stockholder approval of the Plan within twelve (12) months before or after the date the Plan is adopted by the Board.

SECTION 8. PURCHASE PRICE; PAYMENT

8.1Purchase Price

The purchase price (“Purchase Price”) at which shares of Common Stock may be acquired in an Offering pursuant to the exercise of all other conditionsor any portion of an option granted under the Plan shall be eighty-five percent (85%) of the lesser of:

(a) the Fair Market Value of the Common Stock on the first day of such Awards.Offering; and

(b) the Fair Market Value of the Common Stock on the Purchase Date;

provided, however, that the Committee may change the Purchase Price to be anywhere from eighty-five percent (85%) to one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the first day of an Offering or the Purchase Date for a future Offering Period, subject to compliance with Section 423 of the Code, as applicable.

8.2Purchase of Shares

(a) An option held by a Participant that was granted under the Plan and that remains outstanding as of a Purchase Date shall be deemed to have been exercised on such Purchase Date for the number of whole shares that the funds accumulated in the Participant’s Account as of the Purchase Date will purchase at the applicable Purchase Price (but not in excess of the number of shares for which options have been granted to the Participant pursuant to Section 7.2).

(b) During the Purchase Period, shares of Common Stock that are to be acquired pursuant to the exercise of all or any portion of an option shall be paid for by means of payroll deductions from Participants’ Eligible Compensation. Unless the Committee determines otherwise for a future Purchase Period, any such Awardpayroll deductions must be in one percent (1%) increments constituting not less than one percent (1%) and not more than fifteen percent (15%) of a Participant’s Eligible Compensation received on each payday during the Purchase Period. Payment amounts shall be confirmedcredited on a bookkeeping basis to a Participant’s Account under the Plan. All payroll deductions or contributions received or held by the Company may be used by the Company for any purpose and the Company shall have no obligation to segregate such funds. No interest accrues on payroll deductions or contributions by a Participant.

(c) Any payroll deductions for a Participant shall commence on the first payday following the Enrollment Date and shall end on the last payday prior to the Purchase Date.

(d) Notwithstanding any provision in the Plan to the contrary, the Committee may allow Eligible Employees to participate in the Plan via cash contributions instead of payroll deductions if the Committee determines that cash contributions are permissible under Section 423 of the Code.

8.3Refund of Excess Amount

If, after a Participant’s exercise of an Award Agreement,option under Section 8.2, an amount remains credited to the Participant’s Account as of a Purchase Date (including after return of any amount pursuant to Section 7.2), then the remaining amount shall be returned to the Participant, except that any amounts that are not sufficient to purchase a full share of Common Stock will be retained in the Participant’s Account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the Participant as provided in Section 9.1.

8.4Pro Rata Allocation

If the total number of shares for which options are or could be exercised on any Purchase Date in accordance with this Section 8, when aggregated with all shares for which options have been previously exercised under the Plan, exceeds the maximum number of shares reserved in Section 4, the Company may allocate the shares available for delivery and distribution in the ratio that the balance in each Participant’s Account bears to the aggregate balances of all Participants’ Accounts, and the remaining balance of the amount credited to the Account of each Participant under the Plan shall containbe returned to him or her as promptly as possible.

8.5Notice of Disposition

If a Participant or former Participant who is subject to United States federal income tax sells, transfers, or otherwise makes a disposition of shares of Common Stock purchased pursuant to an option granted under the Plan, then such provisionsParticipant or former Participant shall notify the Company or the Employer in writing of such sale, transfer or other disposition within ten (10) days of the consummation of such sale, transfer or other disposition. Without limitation on the Participant or former Participant’s ability to sell, transfer or otherwise make a disposition of shares and without limitation on Section 3.2, Participants and former Participants must maintain any shares purchased pursuant to an option granted under the Plan within two (2) years after the date such option is granted or within one (1) year after the date such shares were transferred to the Participant at the broker designated by the Committee, unless the Committee determines otherwise.

SECTION 9. WITHDRAWAL FROM THE PLAN, TERMINATION

OF EMPLOYMENT, AND LEAVE OF ABSENCE

9.1Withdrawal From the Plan

A Participant may withdraw all funds accumulated in the Participant’s Account from the Plan during any Purchase Period by delivering a notice of withdrawal to the Company or the Employer (in a manner prescribed by the Committee) at such time in advance of the Purchase Date as the Committee determinesmay require. If notice of complete withdrawal from the Plan as described in the preceding sentence is timely received, the Company or the Employer will cease the Participant’s payroll withholding, or other contributions to the Plan, and in accordance with procedures established by the Committee, either all funds then accumulated in the Participant’s Account shall be necessaryused to purchase shares on the Purchase Date for such Purchase Period or appropriateall funds then accumulated in the Participant’s Account shall not be used to carry outpurchase shares but shall instead be distributed to the intentParticipant as soon as administratively feasible. An employee who has withdrawn from a Purchase Period may not contribute additional funds to the Company or the Employer during that Purchase Period and require the Company or the Employer to apply those funds to the purchase of thisshares. Any Eligible Employee who has withdrawn from the Plan in accordance with respect to such Award.

13.2.     Terms of Other Stock-based Awards.

Any Common Stock subject to Awards made under this Section 139.1 may, not be sold, assigned, transferred, pledged or otherwise encumbered prior tohowever, reenroll in the Plan by the next subsequent Enrollment Date, if any, in accordance with Section 6.1.

9.2Termination of Participation

Participation in the Plan terminates immediately on the date on which a Participant ceases to be employed by the Company or the Employer for any reason whatsoever or otherwise ceases to be an Eligible Employee, and all funds then accumulated in the Participant’s Account shall not be used to purchase shares are issued,of Common Stock but shall instead be distributed to the Participant (or in case of the Participant’s death, to his or if later, the date on which any applicable restriction, performanceher estate, beneficiary or deferral period lapses.heirs, as applicable) as soon as administratively feasible, without interest.

 

14.9.3REQUIREMENTS OF LAWLeave of Absence

14.1.     General.

The CompanyIf a Participant takes a leave of absence, such Participant shall not be required to sell or issue any shares of Stock under any Award ifhave the sale or issuance of such shares would constitute a violationright, in accordance with procedures prescribed by the Grantee, any other individual exercising an Option,Committee, to elect to withdraw from the Plan in accordance with Section 9.1. To the extent determined by the Committee or required by Section 423 of the CompanyCode, certain leaves of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stockabsence may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or approval shall have been effected or obtained freetreated as cessations of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of terminationemployment for purposes of the Award. Specifically, in connection with the Securities Act, upon the exercise ofPlan.

SECTION 10. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION,

DISSOLUTION, LIQUIDATION, MERGER OR ASSET SALE

10.1Adjustments Upon Changes in Capitalization

Subject to any Option or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connectionaction by the Board shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

14.2.     Rule 16b-3.

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intentstockholders of the Company, that Awards and the exercise of Options grantedright to officers and directors hereunder will qualify for the exemption providedpurchase shares covered by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Board or Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement.

15.EFFECT OF CHANGES IN CAPITALIZATION

15.1.     Changes in Stock.

If (i)a current Offering Period, the number of outstandingshares that have been authorized for issuance under the Plan for any future Offering Period, the maximum number of shares each Participant may purchase in each Offering Period or Purchase Period (pursuant to Section 7.2(a)), as well as the price per share and the number of shares covered by each right under the Plan that have not yet been purchased, shall be proportionately adjusted in the sole discretion of the Committee for any increase or decrease in the number of issued shares of Common Stock is increased or decreased or the shares of Stock are changed into or exchanged forresulting from a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse stock split, combination of shares, exchange of shares, stock dividend, extraordinary cash dividend, combination or other distribution payable in capital stock,reclassification of the Common Stock, or recapitalization, reorganization, consolidation, split-up, spin-off, or any other increase or decrease in suchthe number of shares effected without receipt of consideration by the Company occurring afterCompany. Except as expressly provided otherwise by the Effective Date or (ii) there occurs any spin-off, split-up, extraordinary cash dividend or other distribution of assetsCommittee, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number and kindsor price of shares for which grants of Options and Other Stock-based Awards may be made underCommon Stock.

10.2Adjustment Upon Dissolution, Liquidation, Merger or Asset Sale

Without limitation on the Plan (including the per-Grantee maximums set forth inSection 4) shall be equitably adjusted by the Company; provided that any such adjustment shall comply with Section 409A. In addition,preceding provisions, in the event of any such increasedissolution, liquidation, merger, consolidation, sale of all or decease in the number of outstanding shares or other transaction described in clause (ii) above, the number and kind of shares for which Awards are outstanding and the Option Price per share of outstanding Options and SAR Exercise Price per share of outstanding SARs shall be equitably adjusted; provided that any such adjustment shall comply with Section 409A.

15.2.     Effect of Certain Transactions.

Except as otherwise provided in an Award Agreement and subject to the provisions ofSection 15.3, in the event of (a) the liquidation or dissolution of the Company or (b) a reorganization, merger, exchange or consolidation of the Company or involving the shares of Common Stock (a “Transaction”), the Plan and the Awards issued hereunder shall continue in effect in accordance with their respective terms, except that following a Transaction either (i) each outstanding Award shall be treated as provided for in the agreement entered into in connection with the Transaction or (ii) if not so provided in such agreement, each Grantee shall be entitled to receive in respect of each share of Common Stock subject to any outstanding Awards, upon exercise or payment or transfer in respect of any Award, the same number and kind of stock, securities, cash, property or other consideration that each holder of a share of Common Stock was entitled to receive in the Transaction in respect of a share of Common stock; provided, however, that, unless otherwise determined by the Committee, such stock, securities, cash, property or other consideration shall remain subject tosubstantially all of the conditions, restrictions and performance criteria which were applicable to the Awards prior to such Transaction. Without limiting the generalityCompany’s outstanding voting securities, sale, lease, exchange or other transfer of all or substantially all of the foregoing, the treatment of outstanding Options and SARs pursuant to thisSection 15.2 in connection with a Transaction in which the consideration paidCompany’s assets, or distributed to the Company’s stockholders is not entirely shares of common stock of the acquiring or resulting corporation may include the cancellation of outstanding Options and SARs upon consummation of the Transactionany similar transaction as long as, at the election of the Committee, (i) the holders of affected Options and SARs have been given a period of at least fifteen days prior to the date of the consummation of the Transaction to exercise the Options or SARs (to the extent otherwise exercisable) or (ii) the holders of the affected Options and SARs are paid (in cash or cash equivalents) in respect of each Share covered by the Option or SAR being canceled an amount equal to the excess, if any, of the per share price paid or distributed to stockholders in the transaction (the value of any non-cash consideration to be determined by the Committee in its sole discretion) overdiscretion, the Option PriceCommittee may make such adjustment it deems appropriate to prevent dilution or SAR Exercise Price, as applicable. For avoidanceenlargement of doubt, (1)rights in the cancellationnumber and class of Options and SARs pursuant to clause (ii) of the preceding sentence may be effected notwithstanding anything to the contrary contained in this Plan or any Award Agreement and (2) if the amount determined pursuant to clause (ii) of the preceding sentence is zero or less, the affected Option or SAR may be cancelled without any payment therefore. The treatment of any Award as provided in thisSection 15.2 shall be conclusively presumed to be appropriate for purposes ofSection 15.1.

15.3.     Change in Control

15.3.1.     Consequences of a Change in Control

For Awards granted to non-employee members of the Board, upon a Change in Control all outstanding Awardsshares that may be exercised shall become fully exercisable, all restrictions with respectdelivered under

Section 4, in the number, class or price of shares available for purchase under the Plan and in the number of shares that a Participant is entitled to outstanding Awards shall lapse and become vested and non-forfeitable,purchase and any specified performance goals with respectother adjustments it deems appropriate. Without limiting the Committee’s authority under the Plan, in the event of any such transaction, the Committee may elect to have the options hereunder assumed or such options converted or substituted by a successor entity (or its Parent), to terminate all outstanding Awardsoptions either prior to their expiration or upon completion of the purchase of shares on the next Purchase Date, to shorten the Offering Period by setting a new Purchase Date, or to take such other action deemed appropriate by the Committee.

SECTION 11. DESIGNATION OF BENEFICIARY

Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom the amount in his or her Account is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be deemedin a form prescribed by the Committee, and shall be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, any Account balance remaining unpaid at the Participant’s death shall be paid to be satisfied at target.

For Awards granted to any other Service Providers, eitherthe executor or administrator of the following provisions shall apply, depending on whether, and the extent to which, Awards are assumed, converted or replaced by the resulting entity in a Change in Control:Participant’s estate.

SECTION 12. MISCELLANEOUS

 

12.1(i)To the extent such Awards are not assumed, converted or replaced by the resulting entity in the Change in Control, then upon the Change in Control such outstanding Awards that may be exercised shall become fully exercisable, all restrictions with respect to such outstanding Awards, other than for Performance Awards, shall lapse and become vested and non-forfeitable, and for any outstanding Performance Awards any specified performance goals with respect to such outstanding Awards shall be deemed to be satisfied at target and the Award shall become vested pro rata basedRestrictions on the portion of the applicable performance period completed through the date of the Change in Control.Transfer

(ii)To the extent such Awards are assumed, converted or replaced by the resulting entity in the Change in Control, then the Awards shall become fully exercisable, all restrictions with respect to such outstanding Awards shall lapse and become vested and non-forfeitable, and any specified performance goals with respect to such outstanding Awards shall be deemed to be satisfied at target if, within one year after the date of the Change in Control, the Service Provider has a Separation from Service either (1) by the Company other than for “cause” or (2) by the Service Provider for “good reason” (each as defined in the applicable Award Agreement).

15.3.2.     Change in Control Defined

“Change in Control” means:

(i)Any 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 (the “Exchange Act”)) (a “Person”), other than Deutsche Telekom, AG (“DT”) and its Affiliates, becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section, the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, or (iv) any acquisition pursuant to a transaction that complies with clauses (A), (B) or (C) in paragraph (3) of this definition; or

(ii)

Individuals who, as of the Effective Date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was 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 other than the Board; or

(iii)Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the caseOptions granted under the Plan to a Participant may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

(iv)Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, if it is determined that an Award hereunder is subject to the requirements of Section 409A and the Change in Control is a “payment event” under Section 409A for such Award, the Company will not be deemedexercised during the Participant’s lifetime other than by the Participant. Neither amounts credited to have undergone a Change in Control unless the Company is deemed to have undergone a “change in control event” pursuant to the definition of such term in Section 409A.

In addition, notwithstandingParticipant’s Account nor any provision herein to the contrary, in no event shall a Change in Control be deemed to have occurred so long as DT holds Governing Rights. For purposes hereof, “Governing Rights” means DT’s rights with respect to the governanceexercise of the Company that are substantially similaran option or to or greater than the rights that DT possesses while it holds a “Voting Percentage”receive shares of at least 30%Common Stock under the Stockholders’ Agreement between DT and MetroPCS Communications, Inc. dated April 30, 2013, as in effect asPlan may be assigned, transferred, pledged, or otherwise disposed of the Effective Date.

15.4.     Adjustments

Adjustments under thisSection 15 related to shares of Stock or securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.

16.NO LIMITATIONS ON COMPANY

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets.

17.TERMS APPLICABLE GENERALLY TO AWARDS GRANTED UNDER THE PLAN

17.1.     Disclaimer of Rights.

No provision in the Plan or in any Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to be a Service Provider. The obligation of the Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan.

17.2.     Nonexclusivity of the Plan.

Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals), including, without limitation, the granting of stock options as the Board in its discretion determines desirable.

17.3.     Withholding Taxes.

The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld (i) with respect to the vesting of or other lapse of restrictions applicable to an Award, (ii) upon the issuance of any shares of Stock upon the exercise of an Option or SAR, or (iii) otherwise due in connection with an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the Affiliate to withhold the minimum required number of shares of Stock otherwise issuable to the Grantee as may be necessary to satisfy such withholding obligation or (ii) by delivering to the Company or the Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to thisSection 17.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

17.4.     Captions.

The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or any Award Agreement.

17.5.     Other Provisions.

Each Award Agreement may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board, in its sole discretion. In the event of any conflict between the terms of an employment agreement and the Plan, the terms of the employment agreement govern.

17.6.     Number and Gender.

With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context requires.

17.7.     Severability.

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

17.8.     Governing Law.

The Plan shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of law, and applicable Federal law.

17.9.     Section 409A.

The Plan is intended to comply with Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Grantee’s Separation from Service shall instead be paid on the first payroll date after the six-month anniversary of the Grantee’s Separation from Service (or the Grantee’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Grantee under Section 409A and neither the Company nor the Committee will have any liability to any Grantee for such tax or penalty.

17.10.     Separation from Service.

The Board shall determine the effect of a Separation from Service upon Awards, and such effect shall be set forth in the appropriate Award Agreement. Without limiting the foregoing, the Board may provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the Grantee, the actions that will be taken upon the occurrence of a Separation from Service, including, but not limited to, accelerated vesting or termination, depending upon the circumstances surrounding the Separation from Service.

17.11.     Transferability of Awards.

17.11.1.     Transfers in General.

Except as provided inSection 17.11.2, no Award shall be assignable or transferable by the Grantee to whom it is granted,Participant other than by will or the laws of descent and distribution and, duringor by a beneficiary designation as permitted by Section 11. Any such attempted assignment, transfer, pledge, or other disposition shall be without effect, except that the lifetimeCompany may treat such act as an election to withdraw from the Plan in accordance with Section 9.1.

12.2Administrative Assistance

If the Committee in its discretion so elects, it may retain a brokerage firm, bank, or other financial institution to assist in the purchase of shares, delivery of reports, or other administrative aspects of the Grantee,Plan. If the Committee so elects, each Participant shall (unless prohibited by applicable law) be deemed upon enrollment in the Plan to have authorized the establishment of an account on his or her behalf at such institution. Shares purchased by a Participant under the Plan shall be held in such account in the Participant’s name, or if the Participant so indicates in the enrollment form, in the Participant’s name together with the name of his or her spouse in joint tenancy with right of survivorship or spousal community property, or in certain forms of trust approved by the Committee. The Company may require that shares be retained with a broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares.

12.3Death of Participant

In the event of a Participant’s death prior to the delivery to him or her of any shares or cash held by the Company for the account of the Participant, and to the extent permitted by local law, the Company shall deliver such shares or cash to the Participant’s estate, beneficiary or heirs, as applicable.

12.4Tax Withholding

The Company or any Employer shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company or any member of the Employer, an amount sufficient to satisfy federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of the Plan.

12.5Equal Rights and Privileges

All Eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Notwithstanding the express terms of the Plan, any provision of the Plan that is intended to comply with Section 423 that is inconsistent with Section 423 or any successor provision of the Code shall without further act or amendment by the Company or the Committee be reformed to comply with the requirements of Section 423 of the Code. This Section 12.5 shall take precedence over all other provisions in the Plan.

12.6Applicable Law

The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

12.7Amendment, Suspension and Termination

The Board may amend, suspend or terminate the Plan at any time; provided, however, that (a) the Plan may not be amended in a way that will cause rights issued under the Plan to fail to meet the requirements of Section 423 of the Code; and (b) no amendment that would amend or modify the Plan in a manner requiring stockholder approval under Section 423 of the Code or the requirements of any securities exchange on which the shares are traded shall be effective unless such stockholder approval is obtained. No options may be granted during any period of suspension of the Plan.

If the Plan is terminated, the Committee may elect to terminate all outstanding options either prior to their expiration or upon completion of the purchase of shares on the next Purchase Date, or may elect to permit options to expire in accordance with their terms (and participation to continue through such expiration dates). If the options are terminated prior to expiration, all funds accumulated in Participants’ Accounts as of the date the options are terminated shall be returned to the Participants as soon as administratively feasible.

12.8No Right of Employment

Neither the grant nor the exercise of any rights to purchase shares under the Plan nor anything in the Plan shall impose upon the Company or any member of the Employer any obligation to employ or continue to employ any employee or Participant. The right of the Company or a member of the Employer to terminate any employee shall not be diminished or affected because any rights to purchase shares of Common Stock have been granted to such employee. The grant of an option hereunder during any Offering Period shall not give a Participant any right to similar grants hereunder.

12.9Rights as Stockholder

No Participant shall have any rights as a stockholder with respect to shares of Common Stock acquired under the Plan unless and until such shares of Common Stock have been issued to him or her (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). Until such shares are issued, a Participant will only have the Grantee personally (orrights of an unsecured creditor with respect to such shares.

12.10Other Jurisdictions

Without amending the Grantee’s personal representative)Plan, the Committee may establish procedures to grant options or otherwise provide benefits to Eligible Employees of Designated Companies on such terms and conditions different from those specified in this Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes of the Plan and shall have the authority to adopt such modifications, procedures, separate Offerings, subplans and the like as may be necessary or desirable (a) to comply with provisions of the laws or regulations or conform to the requirements to operate the Plan in a qualified or tax or accounting advantageous manner in other jurisdictions in which the Company or any Designated Companies may operate or have employees, (b) to ensure the viability of the benefits from the Plan to Eligible Employees employed in such jurisdictions and (c) to meet the objectives of the Plan. Notwithstanding anything to the contrary herein, any such actions taken by the Committee with respect to Eligible Employees of any Designated Companies may be treated as a separate Offering under Section 423 of the Code or a subplan outside of an “employee stock purchase plan” under Section 423 of the Code and not subject to the requirements of Section 423 set forth in the Code and this Plan.

12.11Governmental Regulation

The Company’s obligation to sell and deliver shares of Common Stock under the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance, or sale of such shares. The Company shall not be required to issue shares of Common Stock with respect to an option unless the exercise rightsof such option and the issuance and delivery of such shares pursuant thereto shall comply with all the applicable provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated

thereunder, and the requirements of any stock exchange upon which the shares may then be listed.

12.12Code Section 409A

The Plan is exempt from the application of Section 409A of the Code, and any ambiguities herein will be interpreted to so be exempt from Section 409A of the Code. In furtherance of the foregoing and notwithstanding any other provision in the Plan to the contrary, if the Committee determines that an option granted under the Plan may be subject to Section 409A of the Code or that any provision of the Plan would cause an option under the Plan to be subject to Section 409A of the Code, the Committee may amend the terms of the Plan and/or of an outstanding option granted under the Plan, or take such other action that the Committee determines is necessary or appropriate, in each case, without the Participant’s consent, to exempt any outstanding option or future option that may be granted under the Plan from or to allow any such options to comply with, Section 409A of the Code. Notwithstanding the foregoing, the Company shall have no liability to a Participant or any other party if the option to purchase Common Stock under the Plan that is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee with respect thereto. The Company makes no representation that any option to purchase Common Stock under the Plan is compliant with Section 409A of the Code.

12.13Condition for Participation

As a condition to participation in the Plan, Eligible Employees agree to be bound by the terms of the Plan (including, without limitation, the notification and holding requirements of Section 8.5) and the determinations of the Committee.

12.14Term of Plan

Unless sooner terminated by the Board, the Plan shall automatically terminate on the tenth anniversary of the date the Board adopts the Plan. After the Plan terminates in accordance with the foregoing sentence, no future options may be granted under the Plan, but options previously granted shall remain outstanding in accordance with their terms and conditions and the Plan’s terms and conditions.

12.15Effective Date

The Plan is effective as of the Effective Date.

APPENDIX A

DEFINITIONS

As used in the Plan,

“Account” means a recordkeeping account maintained for a Participant to which Participant payroll deductions or contributions, if applicable, shall be credited. No interest shall be paid on any contributions credited to such Account, unless required by local law.

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

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

“Committee” means the Board or the Compensation Committee or any other committee (which committee need not be composed of members of the Board) appointed by the Board to administer the Plan.

17.11.2.     Family Transfers.“Common Stock” means the Common Stock, $0.00001 par value, of the Company.

If authorized“Company” means T-Mobile US, Inc., a Delaware corporation.

“Cut-Off Date”means the date established by the Committee from time to time by which enrollment forms must be received prior to an Enrollment Date.

“Designated Company” means any Subsidiary or Parent of the Company that has been designated by the Committee from time to time in its sole discretion as eligible to participate in the applicable Award Agreement,Plan and which has adopted the Plan with the approval of the Committee in its sole discretion. A Designated Company shall cease to be a Grantee may transfer, notDesignated Company on the earlier of (a) the date the Committee determines that such entity is no longer a Designated Company and (b) the date such Designated Company ceases for value,any reason to be a “parent corporation” or “subsidiary corporation” as defined in Sections 424(e) and 424(f), respectively, of the Code.

“Effective Date”means the date on which the Plan is approved by the Board.

“Eligible Compensation” means all or partbase gross earnings, cash bonuses, commissions and overtime, including such amounts of gross earnings as are deferred by an Award (other than Incentive Stock Options) to any Family Member. For the purpose of thisSection 17.11.2, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transferEligible Employee (a) under a domestic relations orderqualified cash or deferred arrangement described in settlementSection 401(k) of marital property rights;the Code or (iii)(b) to a transferplan qualified under Section 125 of the Code. Eligible Compensation does not include severance pay, hiring and relocation bonuses, pay in lieu of vacation, sick leave, gain from stock option exercises and other equity compensation income, imputed income arising under any Company group insurance or benefit program or any other special payments. The Committee, in its discretion, may establish a different definition of Eligible Compensation for a subsequent Offering Period.

“Eligible Employee” means an employee providing services to the Company or a Designated Company.

The Committee, in its discretion, may determine from time to time, prior to an entityEnrollment Date for all options to be granted on such Enrollment Date in which more than fifty percentan Offering (on a uniform and nondiscriminatory basis or as otherwise permitted by Treasury Regulation Section 1.423-2), that the definition of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under thisSection 17.11.2, any such AwardEligible Employee shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Awards are prohibited except to Family Membersadditional eligibility requirements, consistent with Section 423 of the original Grantee in accordance with thisCode.

Section 17.11.2“Employer” means the Company or any Designated Company by will or the laws of descent and distribution.which an employee is employed.

17.12.     Dividends and Dividend Equivalent Rights.

If specified in“Enrollment Date” means the Award Agreement, the recipientfirst day of an Award under this Plan may be entitled to receive, currently or on a deferred basis, dividends or dividend equivalentsOffering Period.

“Fair Market Value” means, with respect to the Common Stock, as of any date, unless the Committee determines otherwise with respect to a future Offering:

(a) if the principal market for the Common Stock (as determined by the Committee if the Common Stock is listed or otheradmitted to trading on more than one exchange or market) is a national securities coveredexchange or an established securities market, the official closing price per share of Common Stock for the regular market session on that date on the principal exchange or market on which the Common Stock is then listed or admitted to trading or, if no sale is reported for that date, on the last preceding day for which a sale was reported;

(b) if the principal market for the Common Stock is not a national securities exchange or an established securities market, the average of the highest bid and lowest asked prices for the Common Stock on that date as reported on a national quotation system or, if no prices are reported for that date, on the last preceding day for which prices were reported; or

(c) if the Common Stock is neither listed or admitted to trading on a national securities exchange or an established securities market, nor quoted by an Award. The terms and conditionsa national quotation system, the value determined by the Committee in good faith by the reasonable application of a dividend equivalent rightreasonable valuation method.

“Offering”means an offer under the Plan of an option that may be exercised during an Offering Period as further described in Section 5.

“Offering Period” means each period designated by the Committee, as further described in Section 5.

“Parent”means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

“Participant” means an Eligible Employee who has enrolled in the Plan pursuant to Section 6.

“Plan” means this T-Mobile US, Inc. 2014 Employee Stock Purchase Plan.

“Purchase Date” means the last day of each Purchase Period.

“Purchase Period” means each period designated by the Committee, as further described in Section 5.

“Purchase Price” has the meaning set forth in the Award Agreement. Dividend equivalents credited toSection 8.1.

“Subsidiary” means a Grantee may be paid currentlycorporation, domestic or may be deemed to be reinvestedforeign, whether now or hereafter existing, as defined in additional shares of Stock or other securitiesSection 424(f) of the Company atCode.

LOGO

Reconciliation of Non-GAAP Financial Measures

Certain of the financial metrics applicable to the 2014 short-term incentive plan described under “Executive Compensation – Analysis of Executive Officer Compensation” are non-GAAP financial measures. Below is a price per unitdescription of these non-GAAP financial measures.

Adjusted EBITDA”: Earnings before interest expense (net of interest income), tax, depreciation, amortization, stock-based compensation and expenses not reflective of T-Mobile’s ongoing operating performance.

Adjusted EBITDA is reconciled to net income (loss) as follows:

(in millions)  Q1 2014  Q2 2014  Q3 2014  Q4 2014  Year Ended
December 31,
2014
 
Net income (loss)  $(151 $391   $(94 $101   $247  
Adjustments:      
Interest expense to affiliates   18    85    83    92    278  

Interest expense

   276    271    260    266    1,073  

Interest income

   (75  (83  (97  (104  (359

Other expense (income), net

   6    12    14    (21  11  

Income tax expense (benefit)

   (102  286    (117  99    166  
Operating income (loss)   (28  962    49    433    1,416  

Depreciation and amortization

   1,055    1,129    1,138    1,090    4,412  

Cost of MetroPCS business combination

   12    22    97    168    299  

Stock-based compensation(1)

   49    63    45    54    211  

Gains on disposal of spectrum licenses(1)

       (731  11        (720

Other, net(1)

       6    6    6    18  
  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Adjusted EBITDA

  $1,088   $1,451   $1,346   $1,751   $5,636  

(1)

Stock-based compensation includes tax impacts and may not agree to stock based compensation expense in the consolidated financial statements. Gains on disposal of spectrum licenses and Other, net transactions may not agree in total to the Gains on disposal of spectrum licenses and Other, net in the Consolidated Statements of Comprehensive Income (Loss) primarily due to certain routine operating activities, such as insignificant or routine spectrum license exchanges that would be expected to reoccur, and are therefore included in Adjusted EBITDA.

Operating Free Cash Flow”: Operating free cash flow is a non-GAAP financial measure used under the 2014 STIP. It is generally equal to Adjusted EBITDA, as defined above, further adjusted for the Fair Market Valuechange in working capital assets and liabilities (other than those with Deutsche Telekom AG and its affiliates) and non-cash items included in Adjusted EBITDA, less cash paid for capital expenditures (other than spectrum licenses) and other non-recurring cash items that are not representative of a sharenormal ongoing operations.

B-1


LOGO

T-MOBILE US, INC.

ATTN: MARC ROME

12920 SE 38TH STREET

BELLEVUE, WA 98006

VOTE BY INTERNET - www.proxyvote.com

Use the Internet to transmit your voting instructions and for electronic delivery of Stockinformation up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge,

51 Mercedes Way, Edgewood, NY 11717.

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:

M88848-P60033 KEEP THIS PORTION FOR YOUR RECORDS

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

DETACH AND RETURN THIS PORTION ONLY

T-MOBILE US, INC.

To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the date that such dividend was paid to shareholders, as determined in the sole discretion of the Committee. Notwithstanding the foregoing, in no event will dividends or dividend equivalents on any Performance Award be payable before the Performance Award has become earned and payable.line below.

For All Withhold All For All Except

The Plan was adopted by the Board of Directors on May 1, 2013recommends you vote FOR the following:

1. Election of Directors

Nominees:

01) W. Michael Barnes 07) Raphael Kübler 02) Thomas Dannenfeldt 08) Thorsten Langheim 03) Srikant M. Datar 09) John J. Legere 04) Lawrence H. Guffey 10) Teresa A. Taylor 05) Timotheus Höttges 11) Kelvin R. Westbrook 06) Bruno Jacobfeuerborn

The Board of Directors recommends you vote FOR proposals 2 and was approved by the3. For Against Abstain

stockholders2. Ratification of the Company on [].appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for fiscal year 2015.

3. Proposal to Approve the T-Mobile US, Inc. 2014 Employee Stock Purchase Plan.

The Board of Directors recommends you vote AGAINST proposals 4 and 5. For Against Abstain

4. Stockholder Proposal Related to Human Rights Risk Assessment.

5. Stockholder Proposal Related to Proxy Access.

NOTE: Consider any other business that is properly brought before the Annual Meeting or any continuation, adjournment or postponement of the Annual Meeting.

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

Signature [PLEASE SIGN WITHIN BOX] Date

Signature (Joint Owners) Date


LOGO

20132015 ANNUAL MEETING ADMISSION TICKET

ANNUAL MEETING OF STOCKHOLDERS OF

T-MOBILE US, INC.

Tuesday, June 4, 20132, 2015

9:0030 a.m. Eastern, Pacific Daylight Time

The Charles Hotel Bellevue

Harvard Square

1 Bennett11200 Southeast 6th Street

Cambridge, Massachusetts 02138Bellevue, Washington 98004

At the Annual Meeting, stockholders will vote upon the proposals outlined in the Notice of 20132015 Annual Meeting of Stockholders of T-Mobile US, Inc. and any other business as may properly come before the Annual Meeting. We look forward to your participation.

Upon arrival please present this Admission Ticket, together with a valid government-issued picture identification to enter the Annual Meeting. This Admission Ticket only admits the stockholder identified on the reverse side and is non-transferable.

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

¨¢

The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.

M88849-P60033

T-MOBILE US, INC.

2013 Annual Meeting of Stockholders

June 2, 2015 9:30 AM, Pacific Daylight Time

This Proxyproxy is Solicited on Behalf ofsolicited by the Board of Directors

You are encouraged to specify your choices by marking the appropriate boxes ON THE REVERSE SIDE. If the proxy card is signed, dated and returned with no specific direction, your shares will be voted in accordance with the Board of Directors’ recommendations as stated in the Proxy Statement. The proxies cannot vote your shares unless you sign and date and return this card.

The undersigned stockholder of T-Mobile US, Inc. (“T-Mobile”) acknowledges receipt of a Notice of Annual Meeting of Stockholders, the accompanying Proxy Statement and the Annual Report for the fiscal year ended December 31, 2012. The undersignedstockholder(s) hereby revokes any proxy heretofore given with respect to such Annual Meeting and hereby appoints Messrs.appoint(s) John J. Legere T-Mobile’s President and CEO, and J. Braxton Carter, T-Mobile’s Executive Vice President and CFO,or either of them, as proxies, each with full authority andthe power to act, which may be exercised by either one or both of them, with power of substitution, as proxies and attorneys-in factappoint his substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of common stock of T-Mobile (the “Common Stock”) whichT-MOBILE US, INC. that the undersigned isstockholder(s) is/are entitled to vote at the 2013 Annual Meeting of Stockholders to be held at 9:30 AM, PDT, on Tuesday, June 2, 2015, at the Hotel Bellevue, 11200 Southeast 6th Street, Bellevue, WA 98004.

This proxy, when properly executed, will be voted in the manner directed herein and, in the proxyholders’ discretion, upon any other business that properly comes before the meeting. If no direction is made, this proxy will be voted in accordance with the recommendation of the Board of Directors, FOR the election of the nominees to the Board, FOR Proposal 2 and FOR Proposal 3, all of which are proposals of T-Mobile, and any adjournment(s) or postponement(s) thereof, as indicated on the reverse side,AGAINST Proposal 4 and in their discretion on all other matters as may properly come before the Annual Meeting, which shall be held in The Charles Hotel, Harvard Square, 1 Bennett Street, Cambridge, Massachusetts 02138, on June 4, 2013 at 9:00 a.m. EDT (the “Annual Meeting”).AGAINST Proposal 5.

(Continued and to be signed on the reverse side)side

¢14475¢


ANNUAL MEETING OF STOCKHOLDERS OF

T-MOBILE US, INC.

June 4, 2013

PROXY VOTING INSTRUCTIONS

INTERNET-Access “www.voteproxy.com”and follow the on-screen instructions. Have your proxy card available when you access the web page, and use the Company Number and Account Number shown on your proxy card.

TELEPHONE - Call toll-free1-800-PROXIES(1-800-776-9437) in the United States or1-718-921-8500from foreign countries from any touch-tone telephone and follow the instructions. Have your proxy card available when you call, and use the Company Number and Account Number shown on your proxy card.

Vote online/phone until 11:59 PM EDT the day before the meeting.

MAIL - Sign, date and mail your proxy card in the envelope provided as soon as possible.

COMPANY NUMBER

ACCOUNT NUMBER

IN PERSON- You may vote your shares in person by attending the Annual Meeting.

GO GREEN - e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.amstock.com to enjoy online access.

The Notice of Meeting, Proxy Statement, Proxy Card and the 2012 Annual Report are available at

http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=18263

i  Please detach along perforated line and mail in the envelope providedIF you are not voting via telephone or the Internet.  i

n    21130300000000001000    2060413

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE ELECTION OF DIRECTORS

AND “FOR” PROPOSALS 2 AND 3, ALL OF WHICH ARE PROPOSALS OF T-MOBILE.

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HEREx

FOR

AGAINSTABSTAIN

1.   Election of Directors:

NOMINEES:

2.   Ratification of appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal year 2013.

¨

¨¨
¨FOR ALL NOMINEES

O    W. Michael Barnes

O    Srikant Datar

O    Lawrence H. Guffey

O    Timotheus Höttges

3.   Approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan.

¨

¨

¨

¨

WITHHOLD AUTHORITY

FOR ALL NOMINEES

O    Raphael Kübler

O    Thorsten Langheim

O    John J. Legere

O    René Obermann

O    James N. Perry, Jr.

O    Teresa A. Taylor

O    Kelvin R. Westbrook

The shares will be voted as recommended by the Board of DirectorsUNLESS otherwise indicated in which case they will be voted as marked.
¨

FOR ALL EXCEPT

(See instructions below)

INSTRUCTIONS: To withhold authority to vote for any individual nominee(s), mark“FOR ALL EXCEPT” and fill in the circle next to each nominee you wish to withhold, as shown here:   l

MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING.  ¨

To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method.

¨

Please see our Proxy Statement for procedures relating to attending our Annual Meeting in person.

Signature of Stockholder  Date:  Signature of Stockholder  Date:  

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Note:     Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.

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ANNUAL MEETING OF STOCKHOLDERS OF

T-MOBILE US, INC.

June 4, 2013

GO GREEN

e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy

material, statements and other eligible documents online, while reducing costs, clutter and

paper waste. Enroll today via www.amstock.com to enjoy online access.

NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS:

The Notice of Meeting, Proxy Statement, Proxy Card and the 2012 Annual Report are available at

http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=18263

Please sign, date and mail your

proxy card in the envelope

provided as soon as possible.

i  Please detach along perforated line and mail in the envelope provided.  i

¢    21130300000000001000    2

060413                                     

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE ELECTION OF DIRECTORS

AND “FOR” PROPOSALS 2 AND 3, ALL OF WHICH ARE PROPOSALS OF T-MOBILE.

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HEREx

1.   Election of Directors:

FOR

AGAINST

ABSTAIN

NOMINEES:2.Ratification of appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal year 2013.¨¨¨

¨   FOR ALL NOMINEES

¨  WITHHOLD AUTHORITY

  FOR ALL NOMINEES

¨FOR ALL EXCEPT

  (See instructions below)

O    W. Michael Barnes            

O    Srikant Datar

O    Lawrence H. Guffey

O    Timotheus Höttges

O    Raphael Kübler

O    Thorsten Langheim

O    John J. Legere

O    René Obermann

O    James N. Perry, Jr.

O    Teresa A. Taylor

O    Kelvin R. Westbrook

3. 

Approval of the T-Mobile US, Inc. 2013 Omnibus Incentive Plan.

¨

¨

¨


The shares will be voted as recommended by the Board of Directors
UNLESS otherwise indicated in which case they will be voted as marked.

INSTRUCTIONS:  To withhold authority to vote for any individual nominee(s),mark“FORALL EXCEPT”and fill in the circle next to each nominee you wish to withhold, as shown here:   l

MARK “X” HERE IF YOU PLAN TO ATTEND THE MEETING.  ¨

To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method.¨
Please see our Proxy Statement for procedures relating to attending our
Annual Meeting in person.

Signature of Stockholder  Date:  Signature of Stockholder  Date:  

        Note:

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Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.

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