Document:

Change in Control Severance Plan

 Exhibit 10.1 
  
 FREESCALE SEMICONDUCTOR, INC. OFFICER 
 CHANGE IN CONTROL SEVERANCE PLAN 
  
 INTRODUCTION  
  
 The Board of Directors of
Freescale Semiconductor, Inc. considers the maintenance of a sound management to be essential to protecting and enhancing the best interests of the Company (as hereinafter defined) and its stockholders. In this connection, the Company recognizes
that the possibility of a Change in Control (as hereinafter defined) may exist from time to time, and that this possibility, and the uncertainty and questions it may raise among management, may result in the departure or distraction of management
personnel to the detriment of the Company and its stockholders. Accordingly, the Board (as hereinafter defined) has determined that appropriate steps should be taken to encourage the continued attention and dedication of members of the
Company’s management to their assigned duties without the distraction which may arise from the possibility of a Change in Control of the Company. 
  
 This Plan does not alter the status of Participants (as hereinafter defined) as at-will employees of the Company. Just as Participants remain free to
leave the employ of the Company at any time, so too does the Company retain its right to terminate the employment of Participants without notice, at any time, for any reason. However, the Company believes that, both prior to and at the time a Change
in Control is anticipated or occurring, it is necessary to have the continued attention and dedication of Participants to their assigned duties without distraction, and this Plan is intended as an inducement for Participants’ willingness to
continue to serve as employees of the Company (subject, however, to either party’s right to terminate such employment at any time). Therefore, should a Participant still be an employee of the Company at such time, the Company agrees that such
Participant shall receive the severance benefits hereinafter set forth in the event the Participant’s employment with the Company terminates subsequent to a Change in Control under the circumstances described below. 
  
 Notwithstanding the foregoing and Section 4.2(d), however, in the event that
the Participant is terminated by the Company (other than for Good Cause (as hereinafter defined)) prior to a Change in Control, but subsequent to such time as negotiations or discussions which ultimately lead to a Change in Control have commenced,
then such termination shall be deemed to be a termination which entitles such Participant to the Separation Benefits hereinafter set forth. 
  
 ARTICLE I 
 ESTABLISHMENT OF PLAN

  
 As of the Effective Date (as hereinafter defined), the Company
hereby establishes a separation compensation plan known as the Freescale Semiconductor, Inc. Officer Change in Control Severance Plan, as set forth in this document. 

 ARTICLE II 
 DEFINITIONS 
  
 As used
herein the following words and phrases shall have the following respective meanings unless the context clearly indicates otherwise. 
  
 (a) Affiliate. Any entity which controls, is controlled by or is under common control with the Company, including Motorola, Inc.
(“Motorola”) so long as Motorola owns securities representing a majority of the combined voting power of the Company’s outstanding securities. 
  

(b) Board. The Board of Directors of the Company. 
  
 (c) Change in Control. The occurrence of any of the following events: (i) any “person” or “group” (as such terms are used in
Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of the Company’s securities representing 20% or more of the combined voting
power of the Company’s then outstanding securities (other than (1) a Permitted Holder (as defined below) or (2) in an acquisition directly from the Company), (ii) there shall be consummated (A) any consolidation, merger or reorganization of the
Company in which the Company is not the surviving or continuing corporation or pursuant to which shares of common stock of the Company would be converted into or exchanged for cash, securities or other property, other than a consolidation, merger,
or reorganization of the Company in which the holders of common stock of the Company immediately prior to the merger have, directly or indirectly, an ownership interest in securities representing a majority of the combined voting power of the
outstanding voting securities of the surviving corporation immediately after the transaction, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of
the Company other than any such transaction with entities in which the holders of the Company’s common stock, directly or indirectly, have an ownership interest in securities representing a majority of the combined voting power of the
outstanding voting securities of such entities immediately after the transaction, (iii) the stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company, (iv) as the result of, or in connection with, any
cash tender offer, exchange offer, merger or other business combination, sale of assets, proxy or consent solicitation (other than by the Board), contested election or substantial stock accumulation (a “Control Transaction”), the members
of the Board immediately prior to the first public announcement relating to such Control Transaction shall thereafter cease to constitute a majority of the Board, or (v) during such time as Motorola continues to own securities representing a
majority of the combined voting power of the Company’s then outstanding securities, a “Change in Control” (within the meaning of this Plan) of Motorola shall occur. The distribution of the Company’s securities by Motorola to its
stockholders or any other disposition of such securities to a third party by Motorola, whether through a sale, merger, consolidation or otherwise, will not constitute a Change in Control. 
  
 (d) Code. The Internal Revenue Code of 1986, as amended from time to
time. 
  
 (e) Company. Freescale Semiconductor, Inc. and
any successor thereto. 
  

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 (f) Date of Termination. The effective date specified in the Notice of Termination as of which the
Participant’s employment terminates (which shall be not less than thirty (30) days nor more than sixty (60) days after the date such Notice of Termination is given). 
  
 (g) Disability. A condition such that the Participant by reason of physical or mental disability becomes unable to
perform his normal duties for more than one-hundred eighty (180) days in the aggregate (excluding infrequent or temporary absence due to ordinary transitory illness) during any twelve-month period. 
  
 (h) Effective Date. The Effective Date shall be the date of
consummation of the initial public offering of Class A common stock by the Company. 
  
 (i) Employee. Any full-time, regular-benefit, non-bargaining employee of the Company. 
  
 (j) ERISA. The Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 (k) Good Cause. With respect to any Participant: (i) the
Participant’s conviction of any criminal violation involving dishonesty, fraud or breach of trust or (ii) the Participant’s willful engagement in gross misconduct in the performance of the Participant’s duties that materially injures
the Company. 
  
 (l) Good Reason. With respect to any
Participant, without such Participant’s written consent, (i) the Participant is assigned duties materially inconsistent with his position, duties, responsibilities and status with the Company during the 90-day period immediately preceding a
Change in Control, or the Participant’s position, authority, duties or responsibilities are materially diminished from those in effect during the 90-day period immediately preceding a Change in Control (whether or not occurring solely as a
result of the Company ceasing to be a publicly traded entity), (ii) the Company reduces the Participant’s annual base salary or target incentive opportunity under the Company’s annual incentive plan, or reduces the Participant’s
target incentive opportunity under any cash-based long-term incentive plan maintained by the Company, each such target incentive opportunity as in effect during the 90-day period immediately prior to the Change in Control, or as the same may be
increased from time to time, unless such target incentive opportunity is replaced by a substantially equivalent substitute opportunity, (iii) the Company requires the Participant regularly to perform his duties of employment beyond a fifty (50) mile
radius from the location of the Participant’s employment immediately prior to the Change in Control, (iv) the Company fails to obtain a satisfactory agreement from any successor to assume and perform this Plan, as contemplated by Article V
hereof, or (v) the Company purports to terminate the Participant’s employment other than pursuant to a Notice of Termination which satisfies the requirements of Section 4.1 (and, for purposes of this Plan, no such purported termination shall be
effective). 
  
 (m) Notice of Termination. Notice that
shall indicate the specific termination provision in this Plan (if any) relied upon and set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant’s employment. 
  
 (n) Participant. An individual who qualifies as such pursuant to
Section 3.1. 
  

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 (o) Permitted Holder. Motorola, any person or group acquiring the Company’s securities
directly from Motorola, and the Company or an employee benefit plan of the Company or a corporation controlled by the Company. 
  
 (p) Plan. The Freescale Semiconductor, Inc. Officer Change in Control Severance Plan. 
  
 (q) Exchange Act. The Securities Exchange Act of 1934, as amended.

  
 (r) Separation Benefits. The benefits described in
Section 4.2 that are provided to qualifying Participants under the Plan. 
  
 (s) Subsidiary. Any corporation in which the Company, directly or indirectly, holds a majority of the voting power of such corporation’s outstanding shares of capital stock. 
  
 ARTICLE III 
 ELIGIBILITY 
  
 3.1 Participation. Participants in the Plan are those officers and other key employees, if any, of the Company who are at or above the level of Vice President, provided that such Participants will not be entitled to Separation
Benefits if they are not at or above the level of Vice President at the time of the Change in Control. Notwithstanding the foregoing, a Participant shall not be entitled to receive Separation Benefits (or any other benefits under the Plan), if the
Participant has entered into a change in control letter agreement with the Company which has not been waived by the Participant or terminated by the Company. Participants in “Tier 1” of the Plan include those officers of the Company who
are at or above the level of Senior Vice President and above. Participants in “Tier 2” of the Plan include those officers of the Company at the level of Vice President. 
  
 3.2 Duration of Participation. A Participant shall only cease to be a Participant in the Plan as a result of an
amendment or termination of the Plan complying with Article VI of the Plan, or when he ceases to be an Employee, unless, at the time he ceases to be an Employee, such Participant is entitled to payment of a Separation Benefit as provided in the Plan
or there has been an event or occurrence constituting Good Reason that would enable the Participant to terminate his employment and receive a Separation Benefit. A Participant entitled to payment of a Separation Benefit or any other amounts under
the Plan shall remain a Participant in the Plan until the full amount of the Separation Benefit and any other amounts payable under the Plan have been paid to the Participant. 
  
 ARTICLE IV 
 SEPARATION BENEFITS 
  
 4.1 Terminations of
Employment Which Give Rise to Separation Benefits Under This Plan. A Participant shall be entitled to Separation Benefits as set forth in Section 4.2 below if, at any time following a Change in Control and prior to the second anniversary of the
Change in Control, the Participant’s employment is terminated (a) involuntarily for any reason other than termination for Good Cause, death, Disability or retirement within two years of a Change in Control of the Company or (b) by the
Participant after the occurrence of an event giving rise to 
  

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 Good Reason. For purposes of this Plan, any purported termination by the Company or by the Participant shall be
communicated by written Notice of Termination to the other in accordance with Section 7.5 hereof. 
  
 4.2 Separation Benefits. 
  
 (a) If a Participant’s employment is terminated under circumstances which entitle the Participant to Separation Benefits under this Section 4.2, then
the Company shall pay to the Participant, in a lump sum in cash within ten (10) days after the Date of Termination, the aggregate of the following amounts which benefits, except as provided in Section 7.4 below, shall be in addition to any other
benefits to which the Participant is entitled other than by reason of this Plan:    (i) unpaid salary with respect to any vacation or paid time off or annual leave days, as applicable, accrued but not taken as of the Date of
Termination; (ii) accrued but unpaid salary through the Date of Termination, (iii) any earned but unpaid annual incentive bonuses from the fiscal year immediately preceding the year in which the Date of Termination occurs; (iv) the product of (A)
the Participant’s target bonus for the fiscal year in which the Date of Termination occurs (which for purposes of this Section 4.2 in no event shall be less than the Participant’s target bonus for the fiscal year in which the Change in
Control occurs) and (B) a fraction, the numerator of which is the number of days in the then current fiscal year through the Date of Termination and the denominator of which is 365; (v) for “Tier 1” Participants, (a) an amount equal to
three (3) times the greater of (x) the Participant’s highest annual base salary in effect at any time during the period commencing three (3) years preceding the date the Change in Control occurs and ending on the date the Change in Control
occurs, and (y) the Participant’s annual base salary in effect on the Date of Termination, and (b) an amount equal to three (3) times the highest annual bonus, including any bonus or portion thereof that has been earned but deferred (and
annualized for any fiscal year consisting of less than twelve (12) full months or during which the Participant was employed for less than twelve (12) full months), the Participant received from the Company during the five (5) full fiscal years of
the Company immediately preceding the Date of Termination; and (vi) for “Tier 2” Participants, (a) an amount equal to two (2) times the greater of (x) the Participant’s highest annual base salary in effect at any time during the
period commencing three (3) years preceding the date the Change in Control occurs and ending on the date the Change in Control occurs, and (y) the Participant’s annual base salary in effect on the Date of Termination, and (b) an amount equal to
two (2) times the highest annual bonus, including any bonus or portion thereof that has been earned but deferred (and annualized for any fiscal year consisting of less than twelve (12) full months or during which the Participant was employed for
less than twelve (12) full months), the Participant received from the Company during the five (5) full fiscal years of the Company immediately preceding the Date of Termination. 
  
 (b) If the Participant’s employment is terminated under circumstances which entitle the Participant to Separation
Benefits under this Section 4.2, for three (3) years after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Company shall continue health, medical, life and
long-term disability insurance benefits to the Participant and/or the Participant’s family at least equal to those that would have been provided in accordance with the health, medical, life and long-term disability insurance plans, programs,
practices and policies of the Company immediately prior to the Change in Control if the Participant’s employment had not been terminated on the same 

  

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terms and conditions (including any applicable required employee contributions), provided, however, that, if the Participant becomes reemployed
with another employer and becomes eligible to receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during
such applicable period of eligibility. If the terms of the applicable plan, program, practice or policy do not permit the participation of the Participant or the Participant’s family, the Company shall continue to provide the benefits described
above on the same after-tax basis as if such benefits were provided under such plan, program, practice or policy. For purposes of determining eligibility (but not the time of commencement of benefits) of the Participant for retiree medical benefits
pursuant to such plans, practices, programs and policies, the Participant shall be considered to have remained employed until the earlier of three (3) years after the Date of Termination or the last date any Company employee may become eligible for
such retiree medical benefits and to have retired on the last day of such period (and to have attained additional years of age to such date), and such benefits (and the terms and conditions of such benefits) shall be no less favorable than as in
effect immediately prior to the Change in Control. Following the end of the period during which medical benefits are provided to the Participant under this Section 4.2(b), the Participant shall be eligible for continued health coverage as required
by Section 4980B of the Code or other applicable law, as if the Participant’s employment with the Company had terminated as of the end of such period. 
  
 (c) Except as provided in Section 4.2(b), the Participant shall not be required to mitigate the amount of any payment provided for in this Section 4.2 by
seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 4.2 be reduced by any compensation earned by the Participant as the result of employment by another employer or by retirement benefits
after the Date of Termination, or otherwise, or by any set-off, counterclaim, recoupment, or other claim right or action the Company may have against the Participant or others. 
  
 (d) The provisions of this Article IV shall be applicable after a Change in Control has occurred, but not prior thereto.

  
 4.3 Certain Additional Payments by the Company.

  
 (a) Anything in this Plan to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any Payment (as hereinafter defined) would be subject to the Excise Tax (as hereinafter defined), then the Participant shall be entitled to receive an additional payment (the
“Gross-Up Payment”) in an amount such that, after payment by the Participant of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto), employment taxes and Excise Tax imposed upon the Gross-Up Payment, the Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions
of this Section 4.3(a), if it shall be determined that the Participant is entitled to the Gross-Up Payment, but that the Parachute Value (as hereinafter defined) of all Payments do not exceed 110% of the Safe Harbor Amount (as hereinafter defined),
then no Gross-Up Payment shall be made to the Participant and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the amounts
payable hereunder, 
  

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 if applicable, shall be made by first reducing the payments under Section 4.2(a)(iv), unless an
alternative method of reduction is elected by the Participant, and in any event shall be made in such a manner as to maximize the Value (as hereinafter defined) of all Payments actually made to the Participant. For purposes of reducing the Payments
to the Safe Harbor Amount, only amounts payable under this Plan (and no other Payments) shall be reduced. If the reduction of the amount payable under this Plan would not result in a reduction of the Parachute Value of all Payments to the Safe
Harbor Amount, no amounts payable under the Plan shall be reduced pursuant to this Section 4.3(a). The Company’s obligation to make Gross-Up Payments under this Section 4.3(a) shall not be conditioned upon the Participant’s termination of
employment. 
  
 (b) Subject to the provisions of Section 4.3(c),
all determinations required to be made under this Section 4.3, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by a
nationally recognized accounting firm (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and the Participant within fifteen (15) business days of the receipt of notice from the
Participant that there has been a Payment or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company
shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 4.3, shall be paid by the Company to the Participant within ten (10) days of the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm shall be binding upon the Company and the Participant. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Company should have been made (the “Underpayment”), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section
4.3(c) and the Participant thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the
benefit of the Participant. 
  
 (c) The Participant shall notify
the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than ten (10) business
days after the Participant is informed in writing of such claim. The Participant shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Participant shall not pay such claim prior to the
expiration of the 30-day period following the date on which the Participant gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the
Participant in writing prior to the expiration of such period that the Company desires to contest such claim, the Participant shall: 
  

	 	(1)	give the Company any information reasonably requested by the Company relating to such claim, 

  

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	 	(2)	take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company, 

  

	 	(3)	cooperate with the Company in good faith in order effectively to contest such claim, and 

  

	 	(4)	permit the Company to participate in any proceedings relating to such claim; 

  

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest, and shall indemnify and hold the Participant harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 4.3(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct the Participant to pay the tax claimed and sue for a refund or contest the claim in any permissible
manner, and the Participant agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one (1) or more appellate courts, as the Company shall determine; provided,
however, that, if the Company directs the Participant to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Participant, on an interest-free basis, and shall indemnify and hold the Participant
harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided, further,
that any extension of the statute of limitations relating to payment of taxes for the Participant’s taxable year with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the
Company’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and the Participant shall be entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority. 
  
 (d)
If, after the receipt by the Participant of an amount advanced by the Company pursuant to Section 4.3(c), the Participant becomes entitled to receive any refund with respect to such claim, the Participant shall (subject to the Company’s
complying with the requirements of Section 4.3(c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Participant of an amount
advanced by the Company pursuant to Section 4.3(c), a determination is made that the Participant shall not be entitled to any refund with respect to such claim and the Company does not notify the Participant in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid. 
  

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 (e) Notwithstanding any other provision of this Section 4.3, the Company may, in its sole discretion,
withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Participant, all or any portion of the Gross-Up Payment, and the Participant hereby consents to such withholding; provided,
that, such withholding and payment shall in no event place the Participant in a less favorable tax position than had such payments been made to the Participant by the Company. 
  
 (f) Definitions. The following terms shall have the following meanings for purposes of this Section 4.3. 

 
 (i) “Excise Tax” shall mean the excise
tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 
  
 (ii) The “Net After-Tax Amount” of a Payment shall mean the Value of a Payment net of all taxes imposed on the
Participant with respect thereto under Sections 1 and 4999 of the Code and applicable state and local law, determined by applying the highest marginal rates that are expected to apply to the Participant’s taxable income for the taxable year in
which the Payment is made. 
  
 (iii)
“Parachute Value” of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under
Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment. 
  
 (iv) A “Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section
280G(b)(2) of the Code) to or for the benefit of the Participant, whether paid or payable pursuant to this Agreement or otherwise. 
  
 (v) The “Safe Harbor Amount” means the maximum Parachute Value of all Payments that the Participant can receive without
any Payments being subject to the Excise Tax. 
  
 (vi) “Value” of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate
required by Section 280G(d)(4) of the Code. 
  
 ARTICLE V

 SUCCESSOR TO COMPANY 
  
 This Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or
otherwise), in the same manner and to the same extent that the Company would be obligated under this Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of
law be bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under 
  

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 this Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession
had taken place. The term “Company,” as used in this Plan, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this Plan. 
  
 ARTICLE VI 
 DURATION, AMENDMENT AND TERMINATION 
  
 6.1 Duration. If a Change in Control has not occurred, this Plan shall expire three (3) years from the Effective Date; provided, that upon
each annual anniversary of the Effective Date (each such annual anniversary a “Renewal Date”), the Plan shall be extended for an additional year, unless pursuant to a resolution adopted by the Board prior to the Renewal Date the Company
determines not to so extend the Plan. If a Change in Control occurs while this Plan is in effect, this Plan shall continue in full force and effect for at least two (2) years following such Change in Control, and shall not terminate or expire until
after all Participants who become entitled to any payments hereunder shall have received such payments in full. 
  
 6.2 Amendment or Termination. The Board may amend or terminate this Plan at any time, including amending the eligibility to participate in the Plan
of Employees who are not existing Participants; provided, that this Plan may not be amended or terminated in a manner adverse to Participants as of the date of the amendment or termination without three (3) years’ advance written notice
of such amendment or termination (including modifying the eligibility of Employees who are already Participants to participate in the Plan). 
  
 6.3 Procedure for Extension, Amendment or Termination. Any extension, amendment or termination of this Plan by the Board in accordance with this
Article VI shall be made by action of the Board in accordance with the Company’s charter and by-laws and applicable law. 
  
 ARTICLE VII 
 MISCELLANEOUS 

 
 7.1 Default in Payment. Any payment not made within ten (10) days
after it is due in accordance with this Plan shall thereafter bear interest, compounded annually, at the prime rate from time to time in effect at Citibank, N.A. or any successor thereto. 
  
 7.2 No Assignment. No interest of any Participant or spouse of any Participant or any other beneficiary under this
Plan, or any right to receive payment hereunder, shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind, nor may such interest or right to receive a payment or
distribution be taken, voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other claims against, a Participant or spouse of a Participant or other beneficiary, including for alimony. 
  
 7.3 Disputes. The Company shall upon request pay from time to time a
Participant’s reasonable out-of-pocket expenses, including legal fees and expenses, incurred by the Participant or on the Participant’s behalf in connection with any action taken by the Participant or on the Participant’s behalf
(including any judicial proceeding) to enforce this Plan or to construe, or to 
  

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 determine or defend the validity of, this Plan or otherwise in connection herewith; provided, however,
that, in the case of any judicial proceeding in which a Participant and the Company are adverse parties or any dispute under Section 4.3 hereof, the Company shall not be required to pay such expenses (and shall have the right to recover such
expenses from the Participant if previously advanced) with respect to any position or claim on which the Company ultimately prevails against the Participant in all material respects. In any judicial or other proceeding in which the
Participant’s rights to, or the amount of, benefits hereunder is disputed, the ultimate burden of proof shall be on the Company. 
  
 7.4 Effect on Other Plans, Agreements and Benefits. Except to the extent expressly set forth herein, any benefit or compensation to which a
Participant is entitled under any agreement between the Participant and the Company or any of its Subsidiaries or under any plan maintained by the Company or any of its Subsidiaries in which the Participant participates or participated shall not be
modified or lessened in any way, but shall be payable according to the terms of the applicable plan or agreement. Notwithstanding the foregoing, any benefits received by a Participant pursuant to this Plan shall be in lieu of any severance benefits
to which the Participant would otherwise be entitled under any general severance policy or other severance plan maintained by the Company for its management personnel. In the event of a Participant’s termination of employment entitling the
Participant to Separation Benefits under Section 4.2, any non-competition or non-solicitation provisions applicable to the Participant with respect to the Company or any of its Affiliates shall cease to apply as of the Participant’s Date of
Termination. 
  
 7.5 Notice. For the purpose of this Plan,
notices and all other communications provided for in this Plan shall be in writing and shall be deemed to have been duly given when actually delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed
to the Company at its corporate headquarters address, and to the Participant (at the last address of the Participant on the Company’s books and records), provided, that all notices to the Company shall be directed to the attention of the
Board with a copy to the Secretary. 
  
 7.6 Employment
Status. This Plan does not constitute a contract of employment or impose on the Participant or the Company any obligation for the Participant to remain an Employee or change the status of the Participant’s employment or the policies of the
Company and its Affiliates regarding termination of employment. 
  
 7.7 Named Fiduciary; Administration. The Company is the named fiduciary of the Plan, and shall administer the Plan, acting through the Compensation Committee of the Board, or its delegatee. 
  
 7.8 Unfunded Plan Status. This Plan is intended to be an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees, within the meaning of Section 401 of ERISA. All payments pursuant to the Plan shall be made from the general
funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of
the Company as a result of participating in the Plan. Notwithstanding the foregoing, the Company may (but shall not be obligated to) create one (1) or more grantor trusts, 
  

 -11- 

 the assets of which are subject to the claims of the Company’s creditors, to assist it in accumulating funds to pay
its obligations under the Plan. 
  
 7.9 Validity and
Severability. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 7.10 Governing Law. The validity, interpretation, construction and performance of the Plan shall in all respects be governed by the laws of
Delaware, without reference to principles of conflict of law, except to the extent pre-empted by Federal law. 
  

 -12-2004 Omnibus Incentive Plan

 Exhibit 10.2 
  
 FREESCALE SEMICONDUCTOR, INC. 
 OMNIBUS INCENTIVE PLAN OF 2004 
  
 1. Purpose. The purposes of the Freescale Omnibus Incentive Plan of 2004 (the “Plan”) are (i) to encourage outstanding individuals to accept or continue employment with Freescale, Inc. (“Freescale” or the
“Company”) and its subsidiaries or to serve as directors of Freescale, and (ii) to furnish maximum incentive to those persons to improve operations and increase profits and to strengthen the mutuality of interest between those persons and
Freescale’s stockholders by providing them stock options and other stock and cash incentives. 
  
 2. Administration. The Plan will be administered by a Committee (the “Committee”) of the Freescale Board of Directors (the
“Board”) consisting of two or more directors as the Board may designate from time to time, each of whom shall satisfy such requirements as: 
  
 (a) the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under
Rule 16b-3 or its successor under the Securities Exchange Act of 1934 (the “Exchange Act”); 
  
 (b) the New York Stock Exchange may establish pursuant to its rule-making authority; and 
  
 (c) the Internal Revenue Service may establish for outside
directors acting under plans intended to qualify for exemption under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 The Committee shall have the authority to construe and interpret the Plan and any benefits granted thereunder, to establish and amend rules for Plan
administration, to change the terms and conditions of options and other benefits at or after grant, and to make all other determinations which it deems necessary or advisable for the administration of the Plan. The determinations of the Committee
shall be made in accordance with their judgment as to the best interests of Freescale and its stockholders and in accordance with the purposes of the Plan. A majority of the members of the Committee shall constitute a quorum, and all determinations
of the Committee shall be made by a majority of its members. Any determination of the Committee under the Plan may be made without notice or meeting of the Committee, in writing signed by all the Committee members. The Committee may authorize one or
more officers of the Company to select employees to participate in the Plan and to determine the number of option shares and other rights to be granted to such participants, except with respect to awards to officers subject to Section 16 of the
Exchange Act or officers who are or who are reasonably expected to be “covered 
  

 1 

 employees” within the meaning of Section 162(m) of the Code (“Covered Employees”) and any reference in the
Plan to the Committee shall include such officer or officers. 
  
 3. Participants. Participants may consist of all employees of Freescale and its subsidiaries and all non-employee directors of Freescale. Any corporation or other entity in which a 50% or greater interest is at the time directly or
indirectly owned by Freescale shall be a subsidiary for purposes of the Plan. Designation of a participant in any year shall not require the Committee to designate that person to receive a benefit in any other year or to receive the same type or
amount of benefit as granted to the participant in any other year or as granted to any other participant in any year. The Committee shall consider all factors that it deems relevant in selecting participants and in determining the type and amount of
their respective benefits. 
  
 4. Shares Available under the
Plan. There is hereby reserved for issuance under the Plan an aggregate of 48 million shares of Freescale Class A Common Stock (“Common Stock”). If there is a lapse, expiration, termination or cancellation of any Stock Option issued
under the Plan prior to the issuance of shares thereunder or if shares of Common Stock are issued under the Plan and thereafter are reacquired by Freescale, the shares subject to those options and the reacquired shares shall be added to the shares
available for benefits under the Plan. Shares covered by a benefit granted under the Plan shall not be counted as used unless and until they are actually issued and delivered to a participant. Any shares covered by a Stock Appreciation Right shall
be counted as used only to the extent shares are actually issued to the participant upon exercise of the right. In addition, any shares of Common Stock exchanged by an optionee as full or partial payment to Freescale of the exercise price under any
Stock Option exercised under the Plan, any shares retained by Freescale pursuant to a participant’s tax withholding election, and any shares covered by a benefit which is settled in cash shall be added to the shares available for benefits under
the Plan. All shares issued under the Plan may be either authorized and unissued shares or issued shares reacquired by Freescale. Under the Plan, no participant may receive in any calendar year (i) Stock Options relating to more than 750,000 shares,
(ii) Restricted Stock or Restricted Stock Units that are subject to the attainment of Performance Goals of Section 13 hereof relating to more than 500,000 shares, (iii) Stock Appreciation Rights relating to more than 750,000 shares, or (iv)
Performance Stock relating to more than 500,000 shares. No non-employee director may receive in any calendar year Stock Options relating to more than 30,000 shares or Restricted Stock Units relating to more than 30,000 shares. The shares reserved
for issuance and the limitations set forth above shall be subject to adjustment in accordance with Section 15 hereof. All of the available shares may, but need not, be issued pursuant to the exercise of Incentive Stock Options. Notwithstanding
anything else contained in this Section 4 the number of shares that may be issued under the Plan for benefits other than Stock Options or Stock Appreciation Rights shall not exceed a total of 5 million shares (subject to adjustment in accordance
with Section 15 hereof). 
  
 5. Types of Benefits. Benefits
under the Plan shall consist of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance 
  

 2 

 Stock, Performance Cash Awards, Annual Management Incentive Awards and Other Stock or Cash Awards, all as described
below. 
  
 6. Stock Options. Stock Options may be granted
to participants, at any time as determined by the Committee. The Committee shall determine the number of shares subject to each option and whether the option is an Incentive Stock Option. The option price for each option shall be determined by the
Committee but in the case of an Incentive Stock Option shall not be less than 100% of the fair market value of Freescale’s Common Stock on the date the option is granted. Each option shall expire at such time as the Committee shall determine at
the time of grant. Options shall be exercisable at such time and subject to such terms and conditions as the Committee shall determine; provided, however, that no option shall be exercisable later than the tenth anniversary of its
grant. The option price, upon exercise of any option, shall be payable to Freescale in full by (a) cash payment or its equivalent, (b) tendering previously acquired shares (held for at least six months if the Company is accounting for Stock Options
using APB Opinion 25 or purchased on the open market) having a fair market value at the time of exercise equal to the option price or certification of ownership of such previously-acquired shares, (c) delivery of a properly executed exercise notice,
together with irrevocable instructions to a broker to promptly deliver to Freescale the amount of sale proceeds from the option shares or loan proceeds to pay the exercise price and any withholding taxes due to Freescale, and (d) such other methods
of payment as the Committee, at its discretion, deems appropriate. In no event shall the Committee cancel any outstanding Stock Option for the purpose of reissuing the option to the participant at a lower exercise price or reduce the option price of
an outstanding option. 
  
 7. Stock Appreciation Rights.
Stock Appreciation Rights (“SARs”) may be granted to participants at any time as determined by the Committee. An SAR may be granted in tandem with a Stock Option granted under this Plan or on a free-standing basis. The Committee also may,
in its discretion, substitute SARs which can be settled only in stock for outstanding Stock Options, at any time when the Company is subject to Fair Value Accounting in accordance with Financial Accounting Standard Board’s Statement of
Financial Accounting Standards No. 123. The grant price of a tandem or substitute SAR shall be equal to the option price of the related option. The grant price of a free-standing SAR shall be equal to the fair market value of Freescale’s Common
Stock on the date of its grant. An SAR may be exercised upon such terms and conditions and for the term as the Committee in its sole discretion determines; provided, however, that the term shall not exceed the option term in the case
of a tandem or substitute SAR or ten years in the case of a free-standing SAR and the terms and conditions applicable to a substitute SAR shall be substantially the same as those applicable to the Stock Option which it replaces. Upon exercise of an
SAR, the participant shall be entitled to receive payment from Freescale in an amount determined by multiplying the excess of the fair market value of a share of Common Stock on the date of exercise over the grant price of the SAR by the number of
shares with respect to which the SAR is exercised. The payment may be made in cash or stock, as determined by the Committee at the time of grant, except in the case of a substitute SAR which may be made only in stock. In no event shall the Committee
cancel any 
  

 3 

 outstanding SAR for the purpose of reissuing the right to the participant at a lower exercise price or reduce the
exercise price of an outstanding SAR. 
  
 8. Restricted Stock
and Restricted Stock Units. Restricted Stock consists of Common Stock which may be awarded or sold to participants under such terms and conditions as shall be established by the Committee. Restricted Stock Units provide participants the right to
receive shares at a future date after vesting in accordance with the terms of such grant upon the attainment of certain conditions specified by the Committee. Restricted Stock and Restricted Stock Units shall be subject to such restrictions and
conditions as the Committee determines, including, without limitation, any of the following: 
  
 (a) a prohibition against sale, assignment, transfer, pledge, hypothecation or other encumbrance for a specified period; 
  
 (b) a requirement that the holder forfeit (or in the case of
shares or units sold to the participant resell to Freescale at cost) such shares or units in the event of termination of employment during the period of restriction; or 
  
 (c) the attainment of performance goals described in Section 13 hereof. 
  
 All restrictions shall expire at such times as the Committee shall specify. 
  
 9. Performance Stock. The Committee shall designate the participants
to whom performance stock (“Performance Stock”) is to be awarded and determine the number of shares, the length of the performance period and the other terms and conditions of each such award. Each award of Performance Stock shall entitle
the participant to a payment in the form of shares of Common Stock upon the attainment of performance goals and other terms and conditions specified by the Committee. 
  
 Notwithstanding satisfaction of any performance goals, the number of shares issued under a Performance Stock award may be
adjusted by the Committee on the basis of such further consideration as the Committee in its sole discretion shall determine. However, the Committee may not, in any event, increase the number of shares earned upon satisfaction of any performance
goal by any participant who is a Covered Employee. The Committee may, in its discretion, make a cash payment equal to the fair market value of shares of Common Stock otherwise required to be issued to a participant pursuant to a Performance Stock
award. 
  
 10. Performance Cash Awards. The Committee shall
designate the participants to whom cash incentives based on performance (“Performance Cash Awards”) are to be awarded and determine the amount of the award and the terms and conditions of each such award. Each Performance Cash Award shall
entitle the participant to a payment in cash upon the attainment of performance goals and other terms and conditions specified by the Committee. 
  

 4 

 Notwithstanding the satisfaction of any performance goals, the amount to be paid under a Performance Cash
Award may be adjusted by the Committee on the basis of such further consideration as the Committee in its sole discretion shall determine. However, the Committee may not, in any event, increase the amount earned under Performance Cash Awards upon
satisfaction of any performance goal by any participant who is a Covered Employee and the maximum amount earned by a Covered Employee in any calendar year may not exceed $4,500,000. The Committee may, in its discretion, substitute actual shares of
Common Stock for the cash payment otherwise required to be made to a participant pursuant to a Performance Cash Award. 
  
 11. Annual Management Incentive Awards. The Committee may designate Freescale executive officers who are eligible to receive a monetary payment in
any calendar year based on a percentage of an incentive pool equal to 5% of Freescale’s consolidated operating earnings for the calendar year. The Committee shall allocate an incentive pool percentage to each designated participant for each
calendar year. In no event may the incentive pool percentage for any one participant exceed 30% of the total pool. Consolidated operating earnings shall mean the consolidated earnings before income taxes of the Company, computed in accordance with
generally accepted accounting principles, but shall exclude the effects of Special Items. Special Items shall include (i) gains or losses on the disposition of a business, (ii) changes in tax or accounting regulations or laws, or (iii) the effect of
a merger or acquisition, as determined in accordance with generally accepted accounting principles. 
  
 As soon as possible after the determination of the incentive pool for a Plan year, the Committee shall calculate the participant’s allocated portion
of the incentive pool based upon the percentage established at the beginning of the calendar year. The participant’s incentive award then shall be determined by the Committee based on the participant’s allocated portion of the incentive
pool subject to adjustment in the sole discretion of the Committee. In no event may the portion of the incentive pool allocated to a participant who is a Covered Employee be increased in any way, including as a result of the reduction of any other
participant’s allocated portion. 
  
 12. Other Stock or
Cash Awards. In addition to the incentives described in sections 6 through 11 above, the Committee may grant other incentives payable in cash or in Common Stock under the Plan as it determines to be in the best interests of Freescale and subject
to such other terms and conditions as it deems appropriate. 
  
 13. Performance Goals. Awards of Restricted Stock, Restricted Stock Units, Performance Stock, Performance Cash Awards and other incentives under the Plan may be made subject to the attainment of performance goals relating to one or
more business criteria within the meaning of Section 162(m) of the Code, including, but not limited to, cash flow; cost; ratio of debt to debt plus equity; profit before tax; economic profit; earnings before interest and taxes; earnings before
interest, taxes, depreciation and amortization; earnings per share; operating earnings; economic value added; ratio of operating earnings to capital spending; free cash flow; net profit; net sales; sales growth; price of Freescale Common Stock;
return on net assets, equity or stockholders’ equity; market share; or total return to stockholders (“Performance Criteria”). Any 

  

 5 

 
Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative to a
peer group or index. Any Performance Criteria may include or exclude Special Items (as defined in section 11 above). In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements,
generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an award which is consistently applied and identified in the audited financial statements, including footnotes, or the Management
Discussion and Analysis section of the Company’s annual report. However, the Committee may not in any event increase the amount of compensation payable to a Covered Employee upon the attainment of a performance goal. 
  
 14. Change in Control. Except as otherwise determined by the Committee
at the time of grant of an award, upon a Change in Control of Freescale, all outstanding Stock Options and SARs shall become vested and exercisable; all restrictions on Restricted Stock and Restricted Stock Units shall lapse; all performance goals
shall be deemed achieved at target levels and all other terms and conditions met; all Performance Stock shall be delivered; all Performance Cash Awards and Restricted Stock Units shall be paid out as promptly as practicable; all Annual Management
Incentive Awards shall be paid out based on the consolidated operating earnings of the immediately preceding year or such other method of payment as may be determined by the Committee at the time of award or thereafter but prior to the Change in
Control; and all other Stock or Cash Awards shall be delivered or paid. A “Change in Control” shall mean: 
  
 Change in Control. The occurrence of any of the following events: (i) any “person” or “group” (as such terms are used
in Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Freescale representing 20% or more of the combined voting
power of Freescale’s then outstanding securities (other than (1) a Permitted Holder or (2) an acquisition directly from Freescale), (ii) there shall be consummated (A) any consolidation, merger or reorganization of Freescale in which Freescale
is not the surviving or continuing corporation or pursuant to which shares of Common Stock would be converted into or exchanged for cash, securities or other property, other than a consolidation, merger, or reorganization of Freescale in which the
holders of common stock of all classes of Freescale immediately prior to the merger have, directly or indirectly, an ownership interest in securities representing a majority of the combined voting power of the outstanding voting securities of the
surviving corporation immediately after the transaction, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of Freescale other than any such
transaction with entities in which the holders of Freescale’s then outstanding common stock of all classes, directly or indirectly, have an ownership interest in securities representing a majority of the combined voting power of the outstanding
voting securities of such entities immediately after the transaction, (iii) the stockholders of Freescale approve any plan or 

  

 6 

 proposal for the liquidation or dissolution of Freescale, (iv) as the result of, or in connection with, any cash tender
offer, exchange offer, merger or other business combination, sale of assets, proxy or consent solicitation (other than by the Board), contested election or substantial stock accumulation (a “Control Transaction”), the members of the Board
immediately prior to the first public announcement relating to such Control Transaction shall thereafter cease to constitute a majority of the Board, or (v) during such time as Motorola, Inc. (“Motorola”) continues to own Freescale
securities representing a majority of the combined voting power of the then outstanding Freescale securities, a “Change in Control” (as defined in this Plan) of Motorola shall occur. The distribution of the Company’s securities by
Motorola to its stockholders or any other disposition of such securities to a third party by Motorola will not constitute a Change in Control. 
  
 Permitted Holder. Shall mean (i) Motorola, (ii) any person or group acquiring Freescale securities directly from Motorola and (iii) Freescale or an
employee benefit plan of Freescale or a corporation controlled by Freescale. 
  
 15. Adjustment Provisions. 
  
 (a) In the event of any change affecting the shares of Freescale Common Stock by reason of stock dividend, stock split, reverse stock split, spin-off, recapitalization, merger, consolidation, reorganization, share
combination, exchange of shares, stock rights offering, liquidation, disaffiliation of a subsidiary or similar event, the Committee shall make such adjustments (if any) as it deems appropriate and equitable, in its discretion, to outstanding awards
to reflect such event, including without limitation, (1) adjustments in the aggregate number or class of shares which may be distributed under the Plan, the maximum number of shares which may be made subject to an award in any calendar year and in
the number, class and option price or other price of shares subject to the outstanding awards granted under the Plan; (2) the substitution of other property (including, without limitation, other securities) for the stock covered by outstanding
awards; and (3) in connection with any disaffiliation of a subsidiary, arrangement for the assumption, or replacement with new awards, of awards held by participants employed by the affected subsidiary by the entity that controls the subsidiary
following the disaffiliation. 
  
 (b) In the
event of any merger, consolidation or reorganization of Freescale with or into another corporation which results in the outstanding Common Stock of Freescale being converted into or exchanged for different securities, cash or other property, or any
combination thereof, there shall be substituted, on an equitable basis as determined by the 
  

 7 

 Committee in its discretion, for each share of Common Stock then subject to a benefit granted under the
Plan, the number and kind of shares of stock, other securities, cash or other property to which holders of Common Stock of Freescale will be entitled pursuant to the transaction. 
  
 16. Substitution and Assumption of Benefits. The Board of Directors or the Committee may authorize the issuance of
benefits under this Plan in connection with the assumption of, or substitution for, outstanding benefits previously granted to individuals who become employees of Freescale or any subsidiary as a result of any merger, consolidation, acquisition of
property or stock, or reorganization other than a Change in Control, upon such terms and conditions as the Committee may deem appropriate. 
  
 17. Nontransferability. Each benefit granted under the Plan shall not be transferable otherwise than by will or the laws of descent and
distribution and each Stock Option and SAR shall be exercisable during the participant’s lifetime only by the participant or, in the event of disability, by the participant’s personal representative. In the event of the death of a
participant, exercise of any benefit or payment with respect to any benefit shall be made only by or to the executor or administrator of the estate of the deceased participant or the person or persons to whom the deceased participant’s rights
under the benefit shall pass by will or the laws of descent and distribution. Notwithstanding the foregoing, at its discretion, the Committee may permit the transfer of stock options and SARs by participants, on a general or specific basis, subject
to such terms and conditions as may be established by the Committee. 
  
 18. Taxes. Freescale shall be entitled to withhold the amount of any tax attributable to any amounts payable or shares deliverable under the Plan, after giving the person entitled to receive such payment or delivery notice and
Freescale may defer making payment or delivery as to any award, if any such tax is payable until indemnified to its satisfaction. A participant may pay all or a portion of any required withholding taxes arising in connection with the exercise of a
Stock Option or SAR or the receipt or vesting of shares hereunder by electing to have Freescale withhold shares of Common Stock, having a fair market value equal to the minimum amount required to be withheld. 
  
 19. Duration, Amendment and Termination. No award shall be granted
more than ten years after the date of adoption of this Plan by the Board of Directors; provided, however, that the terms and conditions applicable to any award granted on or before such date may thereafter be amended or modified by mutual agreement
between Freescale and the participant, or such other person as may then have an interest therein. The Board of Directors or the Committee may amend the Plan from time to time or terminate the Plan at any time. However, no such action shall reduce
the amount of any existing award or change the terms and conditions thereof without the participant’s consent. No material amendment of the Plan shall be made without stockholder approval. 
  

 8 

 20. Fair Market Value. The fair market value of Freescale’s Common Stock at any time shall be
determined in such manner as the Committee may deem equitable, or as required by applicable law or regulation. 
  
 21. Other Provisions. 
  
 (a) The award of any benefit under the Plan may also be subject to other provisions (whether or not applicable to the benefit awarded to
any other participant) as the Committee determines appropriate, including provisions intended to comply with federal or state securities laws and stock exchange requirements, understandings or conditions as to the participant’s employment,
requirements or inducements for continued ownership of Common Stock after exercise or vesting of benefits, forfeiture of awards in the event of termination of employment shortly after exercise or vesting, or breach of noncompetition or
confidentiality agreements following termination of employment, or provisions permitting the deferral of the receipt of a benefit for such period and upon such terms as the Committee shall determine. 
  
 (b) In the event any benefit under this Plan is granted to
an employee who is employed or providing services outside the United States and who is not compensated from a payroll maintained in the United States, the Board of Directors or the Committee may, in its sole discretion, modify the provisions of the
Plan as they pertain to such individuals to comply with applicable law, regulation or accounting rules and to meet the objectives and purpose of the Plan and the Board of Directors or the Committee may, in its discretion, establish one or more
sub-plans to reflect such amended or varied provisions. 
  
 (c) The Committee, in its sole discretion, may permit or require a participant to have amounts or shares of Common Stock that otherwise would be paid or delivered to the participant as a result of the exercise or
settlement of an award under the Plan credited to a deferred compensation or stock unit account established for the participant by the Committee on the Company’s books of account. 
  
 22. Governing Law. The Plan and any actions taken in connection herewith shall be governed by and construed in
accordance with the laws of the state of Delaware (without regard to applicable Delaware principles of conflict of laws). 
  
 23. Stockholder Approval. The Plan was adopted by the Board of Directors on June 18, 2004, and approved by its sole stockholder, Motorola, on June
18, 2004. 
  

 9

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