exv10w43



 






	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	

	 	 	 	 	 	Exhibit 10.43	 	 






Motorola Long Range Incentive Plan (LRIP) of 2005



As amended through May 2, 2005


ELIGIBILITY

Corporate, Senior and Executive Vice Presidents and other officers of Motorola, Inc. (“Motorola”)
or a Subsidiary, as recommended by the Chief Executive Officer and approved by the Compensation and
Leadership Committee of the Board of Directors (“Committee”), are eligible to participate in the
Motorola Long Range Incentive Plan (LRIP) of 2005 (the “Plan”). The Chief Executive Officer and the
Chief Operating Officer (if any) are also eligible to participate as approved by the Committee.



PARTICIPATION

Generally, officers who become eligible to participate during the first quarter of a performance
cycle will participate in a full multi-year performance cycle. The participation of officers who
are promoted, newly hired or demoted after the first quarter of a performance cycle shall be at the
discretion of the Chief Executive Officer.



OVERVIEW

The Plan is being implemented pursuant to the terms and conditions of the Omnibus Incentive Plan of
2003 (“Omnibus Plan”). Here is an overview of the Plan:





	»	 Performance Cycle
	   	The Plan is based upon multi-year performance cycles selected by the Committee with an initial
three-year performance cycle beginning on January 1, 2005.
	 
	»	Performance Measures
	   	Performance measures for each cycle will be determined by the Committee based on improvement in
economic profit and growth in sales of Motorola during each multi-year performance cycle.
Performance measures may apply to performance in each year in the performance cycle, to
cumulative performance during the entire performance cycle, or a combination of both. If
performance measures are applied to performance in each year in the performance cycle,
performance to target for each year shall be divided by the number of years in the performance
cycle and added together to determine the award for the entire performance cycle. Awards may
be subject to partial forfeiture if Motorola’s total shareholder return for the entire
performance cycle does not exceed the median total shareholder return for the performance cycle
for a defined comparator group.
	 
	   	Economic profit is defined as net operating profit after tax minus a capital charge.





 









 











	   	Net operating profit after tax and sales for each year during a performance cycle shall be
determined in accordance with generally accepted accounting principles but shall exclude the
effect of all acquisitions with a purchase price of $250 million or more, all gains or losses
on the sale of a business, any asset impairment equal to $100 million or more, and any other
special items designated by the Committee.
	 
	»	Maximum Earned Award

A participant’s maximum earned award will be two times his/her target award. A participant’s
target award is established at the commencement of a performance cycle based on a percentage of
the participant’s base pay rate in effect at that time. The target award of any participant
(other than a participant who is a “covered employee” within the meaning of Section 162(m) of
the Internal Revenue Code (a “Covered Employee”)), will be adjusted at the time of promotion,
demotion or other change of status and the award earned by the participant will be determined
using a blended target award reflecting the period of time before and after the change of
status and, if any, the target award applicable to each period. If performance measures are
applied to performance in each year in the performance cycle, the target award for a Covered
Employee for any succeeding year will be adjusted at the commencement of the next year in the
performance cycle.
	 
	»	The Payout Process




	 	•  	All earned awards will be paid in stock.
	 
	 	•  	The number of shares of stock earned by a participant shall be determined by
dividing the amount of the award earned during the performance cycle by the
closing price of one share of Motorola common stock on the New York Stock
Exchange on the day before the date on which the Committee certifies the amount
of the award earned (the “Certification Date Value”). The Motorola shares will
be issued under, and subject to the limitations of, the Omnibus Plan or such
other shareholder-approved Motorola equity-based incentive plan as designated by
the Committee.
	 
	 	•  	The Company shall have the right to satisfy all federal, state and local
withholding tax requirements with respect to the award earned by reducing the
number of earned shares by the number of shares determined by dividing the amount
of withholding required by the Certification Date Value.
	 
	 	•  	Payments will be made as soon as administratively practicable following the
close of a performance cycle. A participant has no right to any award until that
award is paid.
	 
	 	•  	The Committee may reduce the amount of the payment to be made pursuant to this
Plan to any participant who is or may be a “covered employee” within the meaning
of Section 162(m) of the Internal Revenue Code at any time prior to payment as a
result of the participant’s performance during the performance cycle. The Chief
Executive Officer may adjust the amount of the payment to be made pursuant to
this Plan to any other participant at any time prior to payment as a result of
the




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	 	   	participant’s performance during the performance cycle; provided, however,
that any such adjustment may not result in a payment to the participant in excess
of the participant’s maximum award under the Plan and any such adjustment to a
payment to a member of the Senior Leadership Team will be subject to the approval
of the Committee.
	 
	 	•  	If the Committee determines, in its sole discretion, that a participant has
willfully engaged in any activity at any time, prior to the payment of an award,
that the Committee determines was, is, or will be harmful to the Company, the
participant will forfeit any unpaid award.





SITUATIONS AFFECTING THE PLAN





	»	Change in Employment




	 	•  	Generally, a participant will be eligible for payment of an earned award only
if employment as a Corporate, Senior or Executive Vice President continues
through the last day of the performance cycle.
	 
	 	•  	Pro rata awards may be possible, however, depending upon the type of
employment termination. The table below summarizes how earned awards will
generally be prorated in accordance with the type of employment termination:
	 	   





	 	 	 
	

	If employment terminates due to...	 	The earned award will be...
	

	 
	Death

	 	Pro rated based on the number
of completed months of
employment within the
performance cycle.
	 
	Total and Permanent Disability

	 	Pro rated based on the number
of completed months of
employment within the
performance cycle.
	 
	Retirement

	 	Pro rated based on the number
of completed months of
employment within the
performance cycle.
	 
	Termination of Employment Because of
Serious Misconduct

	 	Forfeited.
	 
	Change
in Employment in Connection with a Divestiture

	 	Forfeited.
	 
	Termination of Employment for any Other
Reason than Described Above

	 	Forfeited.






For purposes of determining a prorated payout, completed months of employment

will include only those months in which the participant is actually working

and is a Corporate, Senior or Executive

Vice President









	 	•  	In the event a participant remains on payroll as an active Corporate,
Senior or Executive Vice President at the end of a performance cycle, but is not
actually working and is not on a leave of absence at that time, the participant
will be entitled to a pro rata award based on the number of completed months of
employment within the performance cycle in which




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	 	   	the participant was actually
working as a Corporate, Senior or Executive Vice President, provided that the
participant is otherwise eligible for an award. A participant who remains on
payroll as an active Corporate, Senior or Executive Vice President at the end of
a performance cycle, but is not actually working and is on a leave of absence
which carries a right to return to work, will be entitled to a full award for the
performance period, provided the participant actually worked for some portion of
the performance cycle.
	 
	 	•  	A prorated payout will be based on final performance results and paid as soon
as administratively practicable after the end of a performance cycle.
	 
	 	   	For purposes of the Plan, “Total and Permanent Disability” and Retirement” will be defined
as set forth below:
	 
	 	•  	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 and (y) non-U.S. employees, as established by
applicable Motorola policy or as required by local regulations.
	 
	 	•  	Retirement means retirement from Motorola or a Subsidiary as follows:






(i) Retiring at or after age 55 with 20 years of service;




(ii) Retiring at or after age 60 with 10 years of service;




(iii) Retiring at or after age 65, without regard to years of service;




(iv) Retiring with any other combination of age and service, at the discretion of
the Committee.




Years of service will be based on the participant’s Service Club Date.




	»	Change in Control

If Motorola undergoes a Change in Control as defined in the Omnibus Plan:







	 	•  	If performance measures are applied to performance in the entire performance
cycle, the sales growth and economic profit improvement for the performance cycle
will be determined as of the effective date of the Change in Control and pro rata
award payments will be made based on the number of completed months of the cycle
as of the effective date of the Change in Control.
	 
	 	•  	If performance measures are applied to performance in each year in the
performance cycle, the sales growth and economic profit improvement for any
partial year will be determined as of the date of the Change in Control and
performance to target as of that date will be divided by the number of years in
the performance cycle and added to the amounts earned in any completed years.






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	 	•  	Awards will not be subject to any partial forfeiture based on total
shareholder return.
	 
	 	•  	Awards will be paid in stock as soon as administratively practicable following
the effective date of the Change in Control, but no later than 90 days after that
date.




DEFINITION OF
TERMS



“Subsidiary” means an entity of which Motorola owns directly or indirectly at least 50% and that
Motorola consolidates for financial reporting purposes.


“Serious Misconduct” means any misconduct that is a ground for termination under the Motorola Code
of Business Conduct, or human resources policies, or other written policies or procedures.



If a term is used but not defined, it has the meaning given such term in the Omnibus Plan.



RESERVATION AND
RETENTION OF COMPANY RIGHTS


	 	•  	The selection of any employee for participation in the Plan will not give that
participant any right to be retained in the employ of the Company.
	 
	 	•  	Participation in the Plan is completely at the discretion of Motorola, and
Motorola’s decision to make an award in no way implies that similar awards may be
granted in the future.
	 
	 	•  	Anyone claiming a benefit under the Plan will not have any right to or
interest in any awards unless and until all terms, conditions, and provisions of
Plan that affect that person have been fulfilled as specified herein.
	 
	 	•  	No employee will at any time have a right to be selected for participation in
a future performance period for any fiscal year, despite having been selected for
participation in a previous performance period.




GOVERNANCE

It is expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan, all of which will be
binding upon the participant.



AMENDMENT, MODIFICATION, and TERMINATION

The Committee may amend, modify, or terminate the Plan and the terms applicable to any performance
cycle at any time; provided, however, that no such action may adversely affect a participant’s
rights under the Plan subsequent to such time as negotiations or discussions which ultimately lead
to a Change in Control have commenced.



MISCELLANEOUS PROVISIONS




	 	•  	Award opportunities may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution.




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	 	•  	To the extent permitted by law, amounts paid under the Plan will not be
considered to be compensation for purposes of any benefit plan or program
maintained by the Company.
	 
	 	•  	All obligations of the Company under the Plan with respect to payout of
awards, and the corresponding rights granted thereunder, will be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or other acquisition of
all or substantially all of the business and/or assets of the Company.
	 
	 	•  	In the event that any provision of the Plan will be held illegal or invalid
for any reason, the illegality or invalidity will not affect the remaining parts
of the plan, and the Plan will be construed and enforced as if the illegal or
invalid provision had not been included.
	 
	 	•  	No participant or beneficiary will have any interest whatsoever in any
specific asset of the Company. To the extent that any person acquires a right to
receive payments under the Plan, such right will be no greater than the right of
any unsecured general creditor of the Company.
	 
	 	•  	To the extent not preempted by federal law, the Plan, and all agreements
hereunder, will be construed in accordance with and governed by the laws of the
state of Illinois without giving effect to the principles of conflicts of laws.
	 
	 	•  	This Plan constitutes a legal document which governs all matters involved with
its interpretation and administration and supersedes any writing or
representation inconsistent with its terms.






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