exv10w3



 





Exhibit 10.3




RESTRICTED STOCK UNIT AWARD AGREEMENT 




     This Restricted Stock Unit Award (“Award”) is awarded on «Grant_date» (“Date of
Grant”), by Motorola, Inc. (the “Company” or “Motorola”) to «First_Name»
«Last_Name» (the “Grantee”).



     WHEREAS, Grantee is receiving the Award under the Motorola Omnibus Incentive Plan of 2006, as
amended (the “2006 Incentive Plan”);



     WHEREAS, the Award is being made as a special grant of Motorola restricted stock units
authorized by the Board of Directors and the Board’s Compensation and Leadership Committee (the
“Compensation Committee”); and



     WHEREAS, it is a condition to Grantee receiving the Award that Grantee electronically accept
the terms, conditions and Restrictions applicable to the restricted stock units as set forth in
this agreement.



     NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good
and valuable consideration, the Company hereby awards restricted stock units to Grantee on the
following terms and conditions:




	1.	 	Award of Restricted Stock Units. The Company hereby grants to Grantee a total of
«Txt_Nbr_of_Shares» («Whole_Nbr_of_Shares») Motorola restricted stock units (the
“Units”) subject to the terms and conditions set forth below. All Awards shall be
paid in whole shares of Motorola Common Stock (“Common Stock”); no fractional shares shall
be credited of delivered to Grantee.
	 
	2.	 	Restrictions. The Units are being awarded to Grantee subject to the transfer and
forfeiture conditions set forth below (the “Restrictions”) which shall lapse, if
at all, as described in Section 3 below. For purposes of this Award, the term Units
includes any additional Units granted to the Grantee with respect to Units, still subject
to the Restrictions.






	 	a.	 	Grantee may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge
or otherwise transfer any of the Units still subject to Restrictions. The Units
shall be forfeited if Grantee violates or attempts to violate these transfer
Restrictions. Motorola shall have the right to assign this Agreement, which
shall not affect the validity or enforceability of this Agreement. This
Agreement shall inure to the benefit of assigns and successors of Motorola.
	 
	 	b.	 	Any Units still subject to the Restrictions shall be (x) automatically
forfeited upon the Grantee’s termination of employment with Motorola or a
Subsidiary for any reason other than death, Total and Permanent Disability, or
Involuntary Termination due to (i) a Divestiture or (ii) for a reason other
than for Serious Misconduct, and (y) at the discretion of the Compensation
Committee forfeited, if the Grantee is not an appointed vice president or
officer of Motorola at the end of the “Restriction Period” as defined below.
For purposes of this Agreement, a “Subsidiary” is any corporation or other
entity in which a 50 percent or greater interest is held directly or indirectly
by Motorola and which is consolidated for





 









 







	 	 	 	financial reporting purposes. Total and Permanent Disability is defined in
Section 3(a).
	 
	 	c.	 	If Grantee is a vice president or elected officer on the date of the
Award, or has been approved to become a vice president or elected officer on
the date of the Award, and Grantee engages in any of the following conduct, in
addition to all remedies in law and/or equity available to the Company or any
Subsidiary, Grantee shall forfeit all restricted stock units under the Award
whose Restrictions have not lapsed, and, for all restricted stock units under
the Award whose Restrictions have lapsed, Grantee shall immediately pay to the
Company the Fair Market Value (as defined in paragraph 7 below) of Motorola
Common Stock (“Common Stock”) on the date(s) such Restrictions lapsed, without
regard to any taxes that may have been deducted from such amount. For purposes
of subparagraphs (i) through and including (iii) below, “Company” or “Motorola”
shall mean Motorola Inc. and/or any of its Subsidiaries:






	 	(i)	 	During the course of Grantee’s employment and
thereafter, Grantee uses or discloses, except on behalf of the
Company and pursuant to the Company’s directions, any Company
Confidential Information. “Confidential Information” means
information concerning the Company and its business that is not
generally known outside the Company, and includes (A) trade
secrets; (B) intellectual property; (C) the Company’s methods of
operation and Company processes; (D) information regarding the
Company’s present and/or future products, developments, processes
and systems, including invention disclosures and patent
applications; (E) information on customers or potential customers,
including customers’ names, sales records, prices, and other terms
of sales and Company cost information; (F) Company personnel data;
(G) Company business plans, marketing plans, financial data and
projections; and (H) information received in confidence by the
Company from third parties. Information regarding products,
services or technological innovations in development, in test
marketing or being marketed or promoted in a discrete geographic
region, which information the Company or one of its affiliates is
considering for broader use, shall be deemed not generally known
until such broader use is actually commercially implemented; and/or
	 
	 	(ii)	 	During Grantee’s employment and for a period of one
year following the termination of Grantee’s employment for any
reason, Grantee hires, recruits, solicits or induces, or causes,
allows, permits or aids others to hire, recruit, solicit or induce,
or to communicate in support of those activities, any employee of
the Company who possesses Confidential Information of the Company
to terminate his/her employment with the Company and/or to seek
employment with Grantee’s new or prospective employer, or any other
company; and/or




 









 













	 	(iii)	 	During Grantee’s employment and for a period of one year
following the termination of Grantee’s employment for any reason Grantee,
directly or indirectly, on behalf of Grantee or any other person, company or
entity, solicits or participates in soliciting, products or services
competitive with or similar to products or services offered by, manufactured
by, designed by or distributed by the Company to any person, company or entity
which was a customer or potential customer for such products or services and
with which Grantee had direct or indirect contact regarding those products or
services or about which Grantee learned Confidential Information at any time
during the two years prior to Grantee’s termination of employment with the
Company.






	 	(d)	 	If Grantee is not a vice president or elected officer on the date
of the Award, or has not been approved to become a vice president or
elected officer on the date of the Award, and Grantee engages in any of the
conduct outlined in paragraph 2(c)(i) or (ii) above, in addition, to all
remedies in law and/or equity available to the Company or any Subsidiary,
Grantee shall forfeit all restricted stock units under the Award whose
Restrictions have not lapsed, and, for all restricted stock units under the
Award whose Restrictions have lapsed, Grantee shall immediately pay to the
Company the Fair Market Value (as defined in paragraph 7 below) of Motorola
Common Stock (“Common Stock”) on the date(s) such Restrictions lapsed,
without regard to any taxes that may have been deducted from such amount.
For purposes of paragraphs 2(c)(i) and (ii) above, “Company” or “Motorola”
shall mean Motorola, Inc. and/or any of its Subsidiaries.




The Company will not be obligated to pay Grantee any consideration whatsoever for forfeited Units.





	3.	 	Lapse of Restrictions.






	 	a.	 	Except as set forth in Section 3(b) below, the Restrictions applicable
to the Units shall lapse, as long as the Units have not been forfeited as
described in Section 2 above, as follows:






	 	(i)	 	«Vesting_Schedule» (the “Restriction Period”);
	 
	 	(ii)	 	If a Change in Control of the Company occurs and the
successor corporation (or parent thereof) does not assume this
Award or replace it with a comparable award; provided, further,
that with respect to any Award that is assumed or replaced, such
assumed or replaced awards shall provide that the Restrictions
shall lapse for any Participant that is involuntarily terminated
(for a reason other than “Cause”) or quits for “Good Reason” within
24 months of the Change in Control. For purposes of this
paragraph, the terms “Change in Control”, “Cause” and “Good Reason”
are defined in the 2006 Incentive Plan;
	 
	 	(iii)	 	Upon termination of Grantee’s employment by Motorola or
a Subsidiary by Total and Permanent Disability. “Total and
Permanent




 









 













	 	 	 	Disability” means for (x) U.S. employees, entitlement to long
term disability benefits under the Motorola Disability Income
Plan, as amended and any successor plan or a determination of a
permanent and total disability under a state workers
compensation statute and (y) non-U.S. employees, as established
by applicable Motorola policy or as required by local
regulations; or
	 
	 	(iv)	 	If the Grantee dies.






	 	b.	 	In the case of Involuntary Termination due to a Divestiture or for a
reason other than for Serious Misconduct before the expiration of the
Restriction Period, if the Units have not been forfeited as described in
Section 2 above, then the Restrictions shall lapse on a pro rata basis
determined by dividing (i) the number of completed full years of service by the
Grantee from the Award Date to the employee’s date of termination by (ii) the
total length of the Restriction Period.
	 
	 	c.	 	“Termination due to a Divestiture” for purposes of this Agreement means
if Grantee accepts employment with another company in direct connection with
the sale, lease, outsourcing arrangement or any other type of asset transfer or
transfer of any portion of a facility or any portion of a discrete
organizational unit of Motorola or a Subsidiary, or if Grantee remains employed
by a Subsidiary that is sold or whose shares are distributed to the Motorola
stockholders in a spin-off or similar transaction (a “Divestiture”).
	 
	 	d.	 	“Serious Misconduct” for purposes of this Agreement means any
misconduct identified as a ground for termination in the Motorola Code of
Business Conduct, or the human resources policies, or other written policies or
procedures.
	 
	 	e.	 	If, during the Restriction Period, the Grantee takes a Leave of Absence
from Motorola or a Subsidiary, the Units will continue to be subject to this
Agreement. If the Restriction Period expires while the Grantee is on a Leave
of Absence the Grantee will be entitled to the Units even if the Grantee has
not returned to active employment. “Leave of Absence” means an approved leave
of absence from Motorola or a Subsidiary that is not a termination of
employment, as determined by Motorola.
	 
	 	f.	 	To the extent the Restrictions lapse under this Section 3 with respect
to the Units, they will be free of the terms and conditions of this Award
(other than Section 2(c)).






	4.	 	Adjustments. If the number of outstanding shares of Common Stock is changed as a
result of a stock split or the like without additional consideration to the Company, the
number of Units subject to this Award shall be adjusted to correspond to the change in the
outstanding shares of Common Stock.
	 
	5.	 	Dividends. No dividends (or dividend equivalents) shall be paid with respect to
Units credited to the Grantee’s account.




 









 







	6.	 	Delivery of Certificates or Equivalent. Upon the lapse of Restrictions
applicable to the Units, the Company shall, at its election, either (i) deliver to the
Grantee a certificate representing a number of shares of Common Stock equal to the number
of Units upon which such Restrictions have lapsed, or (ii) establish a brokerage account
for the Grantee and credit to that account the number of shares of Common Stock of the
Company equal to the number of Units upon which such Restrictions have lapsed plus.
	 
	7.	 	Withholding Taxes. The Company is entitled to withhold applicable taxes for the
respective tax jurisdiction attributable to this Award or any payment made in connection
with the Units. Grantee may satisfy any minimum withholding obligation by electing to
have the plan administrator retain shares of Common Stock deliverable in connection with
the Units having a Fair Market Value on the date the Restrictions applicable to the Units
lapse equal to the amount to be withheld. “Fair Market Value” for this purpose shall be
the closing price for a share of Common Stock on the day the Restrictions applicable to
the Units lapse as reported for the New York Stock Exchange- Composite Transactions in the
Wall Street Journal, Midwest edition.
	 
	8.	 	Voting and Other Rights.






	 	a.	 	Grantee shall have no rights as a stockholder of the Company in
respect of the Units, including the right to vote and to receive cash
dividends and other distributions until delivery of certificates
representing shares of Common Stock in satisfaction of the Units.
	 
	 	b.	 	The grant of Units does not confer upon Grantee any right to
continue in the employ of the Company or a Subsidiary or to interfere with
the right of the Company or a Subsidiary, to terminate Grantee’s employment
at any time.






	9.	 	Agreement Following Termination of Employment. Grantee agrees that upon termination
of employment with Motorola or a Subsidiary, Grantee will immediately inform Motorola of (a)
the identity of any new employer (or the nature of any start-up business or self-employment),
(b) Grantee’s new title, and (c) Grantee’s job duties and responsibilities. Grantee hereby
authorizes Motorola or a Subsidiary to provide a copy of this Award Document to Grantee’s new
employer. Grantee further agrees to provide information to Motorola or a Subsidiary as may
from time to time be requested in order to determine his/her compliance with the terms hereof.
	 
	10.	 	Consent to Transfer Personal Data. By accepting this award, Grantee voluntarily
acknowledges and consents to the collection, use, processing and transfer of personal data
as described in this paragraph. Grantee is not obliged to consent to such collection,
use, processing and transfer of personal data. However, failure to provide the consent
may affect Grantee’s ability to participate in the Plan. Motorola, its Subsidiaries and
Grantee’s employer hold certain personal information about the Grantee, that may include
his/her name, home address and telephone number, date of birth, social security number or
other employee identification number, salary grade, hire data, salary, nationality, job
title, any shares of stock held in Motorola, or details of all restricted stock units or
any other entitlement to shares of stock awarded, canceled, purchased, vested, or
unvested, for the purpose of managing and administering the Plan (“Data”). Motorola
and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose
of implementation, administration and management




 









 













of Grantee’s participation in the Plan, and Motorola and/or any of its Subsidiaries may
each further transfer Data to any third parties assisting Motorola in the
implementation, administration and management of the Plan. These recipients may be
located throughout the world, including the United States. Grantee’s authorizes them to
receive, possess, use, retain and transfer the Data, in electronic or other form, for
the purposes of implementing, administering and managing Grantee’s participation in the
Plan, including any requisite transfer of such Data as may be required for the
administration of the Plan and/or the subsequent holding of shares of stock on the
Grantee’s behalf to a broker or other third party with whom the Grantee may elect to
deposit any shares of stock acquired pursuant to the Plan. Grantee may, at any time,
review Data, require any necessary amendments to it or withdraw the consents herein in
writing by contacting Motorola; however, withdrawing consent may affect the Grantee’s
ability to participate in the Plan.




	11.	 	Nature of Award. By accepting this Award Agreement, the Grantee acknowledges his
or her understanding that the grant of Units under this Award Agreement is completely at
the discretion of Motorola, and that Motorola’s decision to make this Award in no way
implies that similar awards may be granted in the future or that Grantee has any guarantee
of future employment. Nor shall this or any such grant interfere with Grantee’s right or
the Company’s right to terminate such employment relationship at any time, with or without
cause, to the extent permitted by applicable laws and any enforceable agreement between
Grantee and the Company. In addition, the Grantee hereby acknowledges that he or she has
entered into employment with Motorola or a Subsidiary upon terms that did not include this
Award or similar awards, that his or her decision to continue employment is not dependent
on an expectation of this Award or similar awards, and that any amount received under this
Award is considered an amount in addition to that which the Grantee expects to be paid for
the performance of his or her services. Grantee’s acceptance of this Award is voluntary.
The Award is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses, long-service awards,
pension, or retirement benefits or similar payments, notwithstanding any provision of any
compensation, insurance agreement or benefit plan to the contrary.
	 
	12.	 	Remedies for Breach. Grantee hereby acknowledges that the harm caused to the
Company by the breach or anticipated breach of paragraphs 2(c)(i), (ii) and/or (iii) of
this Agreement will be irreparable and further agrees the Company may obtain injunctive
relief against the Grantee in addition to and cumulative with any other legal or equitable
rights and remedies the Company may have pursuant to this Agreement, any other agreements
between the Grantee and the Company for the protection of the Company’s Confidential
Information, or law, including the recovery of liquidated damages. Grantee agrees that
any interim or final equitable relief entered by a court of competent jurisdiction, as
specified in paragraph 15 below, will, at the request of the Company, be entered on
consent and enforced by any such court having jurisdiction over the Grantee. This relief
would occur without prejudice to any rights either party may have to appeal from the
proceedings that resulted in any grant of such relief.
	 
	13.	 	Acknowledgements. With respect to the subject matter of paragraphs 2(c)(i),
(ii), and (iii), and paragraphs 12 and 15 hereof, this Agreement is the entire agreement
with the Company. No waiver of any breach of any provision of this Agreement by the
Company shall be construed to be a waiver of any succeeding breach or as a modification of
such provision.




 









 







	 	 	The provisions of this Agreement shall be severable and in the event that any provision
of this Agreement shall be found by any court as specified in paragraph 15 below to be
unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless
be enforceable and binding on the parties. Grantee hereby agrees that the court may
modify any invalid, overbroad or unenforceable term of this Agreement so that such term,
as modified, is valid and enforceable under applicable law. Further, by accepting any
Award under this Agreement, Grantee affirmatively states that (s)he has not, will not
and cannot rely on any representations not expressly made herein.
	 
	14.	 	Funding. No assets or shares of Common Stock shall be segregated or earmarked by
the Company in respect of any Units awarded hereunder. The grant of Units hereunder shall
not constitute a trust and shall be solely for the purpose of recording an unsecured
contractual obligation of the Company.
	 
	15.	 	Governing Law. All questions concerning the construction, validity and
interpretation of this Award shall be governed by and construed according to the law of
the State of Illinois without regard to any state’s conflicts of law principles. Any
disputes regarding this Award or Agreement shall be brought only in the state or federal
courts of Illinois.
	 
	16.	 	Waiver. The failure of the Company to enforce at any time any provision of this
Award shall in no way be construed to be a waiver of such provision or any other provision
hereof.
	 
	17.	 	Actions by the Compensation Committee. The Committee may delegate its authority
to administer this Agreement. The actions and determinations of the Compensation
Committee or its delegate shall be binding upon the parties.
	 
	18.	 	Acceptance of Terms and Conditions. By electronically accepting this Award
within 30 days after the date of the electronic mail notification by the Company to
Grantee of the grant of this Award (“Email Notification Date”), Grantee agrees to be bound
by the foregoing terms and conditions, the 2006 Incentive Plan and any and all rules and
regulations established by Motorola in connection with awards issued under the 2006
Incentive Plan. If Grantee does not electronically accept this Award within 30 days of
the Email Notification Date, Grantee will not be entitled to the Units.
	 
	19.	 	Plan Documents. The 2006 Incentive Plan and the Prospectus for the 2006
Incentive Plan are available at http://myhr.mot.com/pay_finances/awards_incentives/
stock_options/plan_documents.jsp or from Global Rewards, 1303 East Algonquin Road,
Schaumburg, IL 60196 (847) 576-7885.