Document:

exv10w1

 

Exhibit 10.1

Non-Employee Director Compensation Package

(for new directors joining the board after March 1, 2004)

Effective February 16, 2005

Initial Compensation — Restricted Stock Grant

	 	 	 
	

	 	$100,000 of restricted stock based on fair market value at grant (that is, $100,000 divided
by the closing price = the number of shares)

	 	•  	Vesting ratably over a three-year period on each annual anniversary of the
date of grant

	 	 	 
	

	 	Pro rated portion of Annual Stipend and Committee Chair Fee for period of year until next
annual shareholder meeting

Annual Compensation

	 	 	 
	

	 	Stipend — $30,000 either in cash or restricted stock, at director’s election
	 
	 	 
	

	 	Audit Committee Chair Fee — $10,000
	 
	 	 
	

	 	Compensation Committee and Governance and Nominating Committee Chair Fee — $5,000
	 
	 	 
	

	 	Board Meeting Fee — $1,000 per meeting attended in person
	 
	 	 
	

	 	Committee Meeting Fee — $500 per meeting attended in person
	 
	 	 
	

	 	Annual Restricted Stock Grant — $25,000 of stock (at time of grant), with three-year
vesting schedule, issued annually on date of annual shareholder meeting, beginning with the
first annual shareholder meeting that occurs after the director’s first anniversary of
being elected
	 
	 	 
	

	 	Reimburse director for cost of purchasing a Life Time Fitness “family” membership

Terms

                   Restricted stock will be granted under the Life Time Fitness 2004 Long-Term Incentive Plan or
such other equity compensation plan as in effect from time to time.

                   Stipend, if taken in cash, to be paid 50% on the date of shareholder election and 50% on the
six-month anniversary of such date. If stipend is taken in restricted stock, grant will be made on
date of shareholder election, at that date’s closing market price (e.g. $30,000 divided by the
closing market price of Life Time Fitness stock on such date equals the number of restricted shares
of stock to be granted). Such restricted stock will vest on the one-year anniversary of such date.

                   Committee Chair Fee to be paid in cash, 50% on the date of shareholder election and 50% on the
six-month anniversary of such date.

                   Meeting Fees to be paid in cash at the end of each fiscal quarter for all meetings attended
during such quarter.exv10w1

 

EXHIBIT 10.1

SEPARATION AND RELEASE AGREEMENT

This is a complete and final Agreement between Scott A. Anderson (for yourself, your spouse and
anyone acting for you) (“you”), and Freescale Semiconductor, Inc. (for itself, its subsidiaries and
affiliates and anyone acting for Freescale) (“Freescale”) that resolves all matters between you and
Freescale. Except where otherwise specified, this Agreement supersedes and nullifies all prior and
concurrent communications, acknowledgements and agreements between you and Freescale, including any
prior versions of this Agreement. This Agreement has been individually negotiated and is not part
of a group incentive or other termination program. In consideration for the payments and benefits
provided under this Agreement, you and Freescale agree to the following terms of your separation
from Freescale:

1. SEPARATION. You are relieved of all duties and responsibilities effective February 12,
2005 (the “Transition Date”). You tender and Freescale accepts your resignation as a director or
officer of Freescale and its subsidiaries and affiliates effective as of the Transition Date. Your
employment by Freescale shall continue through July 29, 2005 (the “Separation Date”). Subject to
the restrictions in this Agreement, and particularly sections 7, 8, 9, 10 and 11, you are not
precluded from accepting employment or providing services to another company during the period
between your Transition and Separation Dates. Your separation shall be documented as a termination
without cause. At Freescale’s request, you shall execute any and all documents reasonably
necessary to confirm your resignation as a director and/or officer of Freescale and its
subsidiaries and/or affiliates.

2. SEPARATION ALLOWANCE AND INCENTIVE PLANS. Freescale will make the following payments to
you:

First, Freescale will pay you at your regular base salary rate at regular payroll intervals, less
applicable state and federal payroll deductions, between your Transition Date and Separation Date.
The total gross amount of these payments is approximately Two Hundred Forty Two Thousand Three
Hundred and Seven Dollars and Sixty Nine cents ($242,307.69) (the “Transition Allowance”). You
understand and agree that you are not otherwise entitled to the payments constituting this
Transition Allowance, and that this Transition Allowance is sufficient consideration for your
obligations under this Agreement. Freescale also will pay you a lump sum Separation Allowance in
the amount of One Million, Seven Hundred Thousand One Hundred Ninety Two Dollars and Thirty One
cents ($1,700,192.31), less applicable state and federal payroll tax deductions, within thirty (30)
days after you have signed and not revoked this Agreement. You acknowledge and agree that this
Separation Allowance constitutes an amount to which you are not otherwise entitled, and serves as
additional consideration for this Agreement. After July 29, 2005 but prior to August 19, 2005 you
will sign, return and not revoke Attachment A to this Agreement. You understand and agree that if
you fail to sign and return or if you revoke Attachment A you will be required to repay to
Freescale this entire Separation Allowance.

Second, you are eligible to receive an incentive payment from Freescale under the
Freescale/Motorola Incentive Plan for the 2004 plan year in accordance with the terms of that plan.
Freescale will apply an individual performance factor of 1.00 in computing the amount of payment
you receive under the plan. You understand that under the terms of this plan Freescale has
complete discretion as to whether you receive a payment under this plan and the amount of any such
payment. Accordingly, its commitment in this Agreement to apply a performance factor of 1.00 and
to make a payment to you under the plan is additional consideration for this Agreement. You
understand that you will not receive any payment under the Freescale Incentive Plan for the 2005
plan year.

Third, you are eligible to receive a payment under the 2004 Freescale Special Incentive Plan for
the 2004 plan year if Freescale meets certain financial targets under the terms of that plan. Your
eligibility to receive any qualifying payment under this plan is not impacted by this Agreement
except as follows: if any portion of the payment to you under the plan would have been made in
restricted stock units, you will receive a cash payment in lieu of the restricted stock units.
Since the restricted stock units you would receive under the terms of the plan would be forfeited
upon your separation on July 29, 2005 and would have no value, you understand and agree the payment
of cash in lieu of restricted stock units is a payment you are not otherwise entitled to and is
additional consideration for this Agreement. You further understand that you are not eligible for
and will not receive any payment for the 2005 plan year.

Finally, as part of the separation of Freescale from Motorola, Inc. (“Motorola”), Motorola and
Freescale agreed to make certain payments to you as a result of your participation in the Motorola
Elected Officer Supplemental Retirement Plan. The payment Freescale agreed to make to you is
described in the letter executed by you and attached as Attachment B to this Agreement. This
payment is not impacted by this Agreement, and is not additional consideration for your promises
and obligations herein.

The Separation Allowance and other payments described in this section include and exceed any pay,
bonuses, or any other amounts that are unpaid as of your separation, other than pay for accrued and
unused Paid Time Off. You will be paid for any Paid Time Off you have accrued but not used as of
your Separation Date. You acknowledge that you will only be paid the amounts specifically
identified in this Agreement and will not receive any additional payments from Freescale.

3. BENEFIT AND EQUITY PLANS.

(a) The effect of your separation and this Agreement upon your participation in, or coverage
under, any of Freescale’s benefit or

Anderson Separation Agreement

 

 

compensation plans and any applicable stock option plans, award documents or restricted stock or
restricted stock unit agreements shall be governed by the terms of those plans and agreements
except as specifically modified by this Agreement. Unless specifically set forth in this
Agreement, Freescale is making no guarantee, warranty or representation in this Agreement regarding
any position that may be taken by any administrator or plan regarding the effect of this Agreement
upon your rights, benefits or coverage under those plans.

(b) Upon your separation, each of your outstanding Freescale stock option grants (including the
Motorola stock option grants converted to Freescale stock options as of Freescale’s separation from
Motorola) will be accorded the most favorable treatment for which each grant qualifies per the
terms of the applicable stock option plans or award documents. Since your separation is a
termination without cause, generally this means that you will have twelve (12) months to exercise
vested options and that you will forfeit any options or restricted stock or restricted stock units
not vested as of your Separation Date.

(c) Benefits coverage under the Freescale Employee Medical Benefits Plan (the “Medical Plan”),
as amended from time to time, will be continued at the regular employee contribution rate through
July 31, 2005, provided that you comply with all terms and conditions of the Medical Plan,
including paying the necessary contributions and provided further, if you are reemployed with
another employer and become covered under that employer’s medical plan, the medical benefits
described herein (if they are not terminated as provided in COBRA, defined below) shall be
secondary to those provided under such other plan. After your Separation Date, you may elect to
continue medical benefits under the Medical Plan at your own expense, in accordance with COBRA.
The COBRA period commences on the first of the month following the Separation Date. As additional
consideration for this Agreement, Freescale will pay you the amount of Twenty Seven Thousand
Dollars ($27,000.00), less applicable state and federal tax deductions. You will receive this
payment within 30 business days after you sign and do not revoke Attachment A to this Agreement.
You cannot sign Attachment A prior to July 30, 2005. This payment is provided to help you with
payment of COBRA premiums for continuation of your medical benefits.

4. TRANSFER OF EQUIPMENT/FINANCIAL PLANNING. Effective on or within thirty business days
after your Transition Date, Freescale will transfer to you ownership of your company car, your
cellular phone, your pager and your Blackberry PDA. On that date you will assume responsibility
for all insurance, maintenance, service and other fees related to this equipment. The parties agree
that any fair market value of the car will be calculated as of the Separation Date, and that you
are responsible for the payment of income tax due as a result of this transfer. Freescale also
will provide senior executive outplacement and career continuation services by a firm to be
selected by Freescale for a period of up to one (1) year, and will also provide you with the
Freescale Executive Financial Planning benefit for 2005, including tax preparation services for
your 2005 tax return, if you elect to participate in either service.

5. NO DISPARAGEMENT. You agree that you will not, directly or indirectly, individually or
in concert with others, engage in any conduct or make any statement calculated or likely to have
the effect of undermining, disparaging or otherwise reflecting poorly upon Freescale or its good
will, products or business opportunities, or in any manner detrimental to Freescale, though you may
assist and cooperate with the Equal Employment Opportunity Commission or other government agency
and otherwise give truthful and nonmalicious testimony as may be required by law or legal process.

6. COOPERATION/INDEMNIFICATION. From your Separation Date, and for as long thereafter as
shall be reasonably necessary, you agree to cooperate fully with Freescale in any investigation,
litigation or other action arising out of transactions in which you were involved or of which you
had knowledge during your employment by Freescale. If you incur any business expenses in the
course of performing your obligations under this paragraph, you will be reimbursed for the full
amount of all reasonable expenses upon your submission of adequate receipts confirming that such
expenses actually were incurred. Freescale will indemnify you for judgments, fines, penalties,
settlement amounts and expenses (including reasonable attorneys’ fees and expenses) reasonably
incurred in defending any actual or threatened action, lawsuit, investigation or other similar
proceeding arising out of your employment with Freescale, provided that if the matter is a civil
action, you acted in good faith and in a manner you reasonably believed to be in, or not opposed
to, the best interests of Freescale and if the matter is a criminal action, and you had no
reasonable cause to believe your conduct was unlawful.

7. PROTECTION OF CONFIDENTIAL INFORMATION AND TRADE SECRETS. You agree to maintain the
confidentiality of Freescale’s confidential or proprietary information and trade secrets in
accordance with agreements previously signed by you and with the law applicable to you as an
officer and/or director of Freescale, including but not limited to state trade secret protection
statutes and your common law fiduciary duty and duty of loyalty. Such Freescale confidential and
proprietary information and trade secrets relating to Freescale’s past, present, or future
business, products or technology include, but are not limited to, information in the following
categories: (a) strategy and roadmap information including but not limited to business plans,
strategic plans, initiatives, potential merger, acquisition and divestiture plans, venture capital
investment plans, five-year and other financial and business plans, new and existing
business/product plans, and capital planning; (b) alliance, investment and strategic relationship
information including but not limited to non-public alliance and investment identity, terms and
conditions of contracts, terms of investment, and status of existing/consideration of potential
alliances and strategic relationships; (c) management information including but not limited to
activities of any corporate-level, region-wide, Freescale-wide, business unit, regional or account
leadership team, or their direct

2

 

reports; (d) technology information including but not limited to present and future research and
development, technology roadmaps, technology licensing strategies, and communications and
semiconductor core and process strategies; (e) employee and employment information (other than
information that relates solely to your own salary, benefits and performance while employed with
the company) including but not limited to members of leadership teams, job functions, organization
and reporting relationships, individual performance, salaries, grades, stock options, bonus plans,
variable pay plans, management and leadership planning, and high potential employee information,
benefits, recruiting, and human resources policy and procedure; (f) customer information of
Freescale including but not limited to non-public customer identity, product purchases, purchase
volume, purchase quantity, product mix, sales strategies for particular customers, pricing,
distribution plans and strategies, and customer relationship information; (g) product pricing and
cost information including but not limited to product costs, margins, manufacturing, sales,
development, and distribution costs; (h) manufacturing information including capacity, vendors,
materials costs, foundry and outsourcing relationships, volume, pricing, and strategy, and internal
manufacturing capabilities and strategy; (i) core process redesign plans, strategies, activities
and implementation. Nothing in this Agreement is intended to prohibit you from disclosing
information about Freescale, its customers, successors or assigns, or its affiliated entities, or
about its or their products, services or business opportunities that is not confidential or
proprietary. You shall give Freescale reasonable advance written notice of your intent to disclose
any potentially confidential information obtained by you as a result of your employment by
Freescale. You agree to keep the terms of this Agreement confidential, except as required in
Paragraph 8, or unless required by law or legal process to disclose this information, to your
attorney, to anyone preparing your tax returns or to a prospective employer (with economic terms
deleted).

8. PROTECTION AGAINST INEVITABLE DISCLOSURE. You acknowledge that the nature of your
duties and responsibilities for a future employer or for any entity or business for which you
perform services in a contract relationship (including but not limited to service as a member of a
board of directors or advisory council), might, by the very nature of the duties and
responsibilities, result in the disclosure of trade secrets or other information that is
confidential and/or proprietary to Freescale. Accordingly, you agree to inform any future
employer, or entity or business contracting with you for services, of the possibility of such
disclosure and the requirements of this Agreement and request that safeguards be established to
ensure against such disclosure. You agree that you will not perform any duties or responsibilities
for any third party that will involve the disclosure of Freescale confidential and/or proprietary
information or trade secrets or that will present a reasonable possibility of such disclosure.

9. RETURN OF FREESCALE PROPERTY. You further agree, pursuant to your obligations to
Freescale under the provisions of your Assignment and Confidentiality Agreement, the Freescale Code
of Business Conduct and Ethics, and the Freescale SOP entitled Protection of Proprietary
Information (POPI) to return to Freescale by your Separation Date all Freescale property and
confidential and/or proprietary information including the originals and all copies and excerpts of
documents, drawings, reports, specifications, samples and the like that were/are in your possession
at all Freescale and non-Freescale locations, including but not limited to information stored
electronically on computer hard drives or disks. The items identified in Section 4 above are
excluded from this obligation.

10. NON-COMPETITION/NO SOLICITATION. You acknowledge that you have entered into certain Stock
Option Agreements with Motorola and Freescale, and that such agreements, including the
non-competition provisions therein, continue in full force and effect. You further agree that for
all options covered by one of these agreements and converted to Freescale options as a result of
the separation of Freescale from Motorola, Freescale has the right to rely upon and enforce the
Stock Option Agreements as if Freescale and you were the original parties to the Agreement. In
addition to the obligations contained in the Stock Option Agreements, during the period from the
Transition Date to the Separation Date, and for a period of two years following your Separation
Date, you will not recruit, solicit or induce, or cause, allow, permit or aid others to recruit,
solicit or induce, or to communicate in support of those activities, any employee of Freescale to
terminate his/her employment with Freescale and/or to seek employment with your new or prospective
employer, or any other company. Before you begin any proposed employment (every reference in this
Section 10 and Section 11 to “employment” includes employment or the provision of services in any
capacity including but not limited to service as consultant, contractor or as a member of a board
of directors or advisory council) during the period from the Transition Date to the Separation
Date, and for the two-year period following the Separation Date with any person, company or entity
that designs, manufactures (or subcontracts the manufacture of), or sells, integrated
circuits/semiconductors or similar products, you agree that you will seek Freescale’s prior written
consent that the proposed employment does not violate the non-competition provisions of the Stock
Option Agreements.

For any situations requiring Freescale’s consent under this Agreement, Freescale agrees that it
will not unreasonably delay or withhold consent. If the parties are unable to reach agreement
within 10 business days after Freescale’s receipt of your written request for consent, you may
proceed to refer the matter to a qualified, independent neutral expert experienced in the industry,
(the “Neutral Expert”), by providing written notice to Freescale. Within five business
days after Freescale receives your written notice, the parties will choose a mutually acceptable
Neutral Expert. No party will unreasonably withhold consent to the selection of the Neutral Expert.
Within seven business days after the Neutral Expert is selected, or as soon thereafter as the
Neutral Expert is able to meet with the parties, the parties will meet with the Neutral Expert to
present their positions, in a manner to be determined by the Neutral Expert. Based exclusively on
the evidence presented by the parties at that meeting, the Neutral Expert will determine whether
your proposed employment or other engagement violates the non-competition provisions of the Stock
Option Agreements. The decision of the Neutral Expert will be final, binding, and non-appealable.

3

 

11. NEW EMPLOYMENT. You agree that you will immediately inform Freescale of (i) the
identity of any new employment, start-up business or self-employment (including but not limited to
service as a member of a board of directors or advisory council) in which you have engaged or will
engage between the date you sign this Agreement and February 11, 2007 (the “Notice Period”), (ii)
your title in any such engagement, and (iii) your duties and responsibilities. You hereby
authorize Freescale to provide a copy of this Agreement, excluding the economic terms, to any new
employer or other entity or business by which you are engaged during the Notice Period. You
further agree that during the Notice Period, you will provide such non-confidential information to
Freescale as it may from time to time reasonably request in order to determine your compliance with
this Agreement.

12. BREACH OF AGREEMENT. You acknowledge that Freescale’s agreement to make the payments
set forth in Section 2 above (other than the tax gross up payment for your Motorola Elected Officer
Supplemental Retirement Plan and the cash portion of the Freescale 2004 Freescale Special Incentive
Plan) is conditioned upon your faithful performance of your obligations under this Agreement, and
you agree to repay to Freescale all sums received from Freescale under Section 2 (other than the
tax gross up payment for your Motorola Elected Officer Supplemental Retirement Plan and the cash
portion of the Freescale 2004 Freescale Special Incentive Plan) if you breach any of your
obligations under Paragraphs 7, 8, 9, 10, or 11 of this Agreement. In any dispute regarding this
Agreement, the prevailing party may recover reasonable attorney’s fees and costs.

13. NON-ADMISSION/GENERAL RELEASE. You, for yourself, your agents, attorneys, heirs,
administrators, executors and assigns, and anyone acting or claiming on your or their joint or
several behalf, hereby waive, release and forever discharge Freescale, its present and former
employees, officers, directors, agents, affiliates, subsidiaries, insurers, predecessors,
successors, and assigns, the Freescale Board of Directors, its agents, successors, affiliates, and
assigns, and anyone acting on their joint or several behalf (the “Releasees”), from and on any and
all known or unknown claims, causes of action, demands, damages, costs, expenses, liabilities,
grievances, or other losses whatsoever that in any way arise from, grow out of or are related to
events or circumstances that occurred prior to the date of your execution of this Separation and
Release Agreement, including but not limited to any matter that relates to your employment with
Freescale or the termination thereof.

You agree that the claims that you are waiving, releasing, and discharging include, but are not
limited to, those arising from (a) any federal, state, or municipal civil rights,
anti-discrimination, employment-related law, statute, or ordinance; or (b) any federal, state, or
municipal law, statute, ordinance, or common law doctrine regarding (i) the existence or breach of
oral or written contracts or employment, including any retention, change of control or other
similar agreements (ii) defamation or slander, (iii) negligent or intentional misrepresentations,
(iv) wrongful discharge, (v) interference with contract, (vi) negligent or intentional infliction
of emotional distress, (vii) violation of public policy, (viii) retaliation, (ix) promissory
estoppel, (x) harassment, (xi) whistle blowing, or (xii) unpaid wages. By way of example, this
release covers any and all claims arising under the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act, the National Labor Relations
Act, the Fair Labor Standards Act, and any other federal, local or common laws regarding rights or
claims relating to employment. You understand that by signing this General Release you are not
releasing any accrued and vested rights you have under Freescale benefit plans that survive
separation from employment under the terms of the plans; the right you have pursuant to the letter
from Motorola dated July 14, 2004, to receive a payment to compensate you for the loss of your
benefits under the Motorola Elected Officer Supplemental Retirement Plan; or, any rights that
cannot be waived by law, including the right to file an administrative charge of discrimination; or
any rights that arise under this Agreement.

4

 

14.CONDITIONS OF AGREEMENT. You agree that you are signing this Agreement knowingly and
voluntarily, that you have not been coerced or threatened into signing this Agreement and that you
have not been promised anything else in exchange for signing this Agreement. You agree that if any
part of this Agreement is found to be illegal or invalid, the rest of the Agreement will still be
enforceable. You further agree that you have had sufficient time (at least 21 days) to consider
this Agreement and you were advised to consult with an attorney, if desired, before signing below.
You understand and agree that any change, whether material or otherwise, to the initial terms of
this Agreement shall not restart the running of this twenty-one (21) day period. This Agreement
will not become effective or enforceable until seven days after you sign it, during which time you
can revoke it if you wish, by delivering a signed revocation letter within the seven-day period to
Larry M. Parsons, Freescale Law Department, 7700 West Parmer Lane, MD: TX32/PL02, Austin, Texas
78729.

	 	 	 	 	 	 	 	 	 	 	 
	SCOTT A. ANDERSON	 	 	 	FREESCALE SEMICONDUCTOR, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Scott A. Anderson	 	 	 	        /s/
David Doolittle
	________________________________	 	 	 	By: _______________________________
	

	 	 	 	 	 	David Doolittle	 	 	 	 
	

	 	 	 	 	 	Senior Vice President, Human Resources	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date: February 10, 2005	 	 	 	Date: February 10, 2005
	(to be signed no later than February 12, 2005

and original returned to Larry Parsons at above address)	 	 	 	 	 	 	 	 

5

 

ATTACHMENT A

15. In consideration for the promises made by Freescale in the Separation and Release Agreement to
which this is Attachment A, you, for yourself, your agents, attorneys, heirs, administrators,
executors and assigns, and anyone acting or claiming on your or their joint or several behalf,
hereby waive, release and forever discharge Freescale, its present and former employees, officers,
directors, agents, affiliates, subsidiaries, insurers, predecessors, successors, and assigns, the
Freescale Board of Directors, its agents, successors, affiliates, and assigns, and anyone acting on
their joint or several behalf (the “Releasees”), from and on any and all known or unknown claims,
causes of action, demands, damages, costs, expenses, liabilities, grievances, or other losses
whatsoever that in any way arise from, grow out of or are related to events or circumstances that
occurred prior to the date of your execution of this Attachment A, including but not limited to any
matter that relates to your employment with Freescale or the termination thereof.

You agree that the claims that you are waiving, releasing, and discharging include, but are not
limited to, those arising from (a) any federal, state, or municipal civil rights,
anti-discrimination, employment-related law, statute, or ordinance; or (b) any federal, state, or
municipal law, statute, ordinance, or common law doctrine regarding (i) the existence or breach of
oral or written contracts or employment, including any retention, change of control or other
similar agreements (ii) defamation or slander, (iii) negligent or intentional misrepresentations,
(iv) wrongful discharge, (v) interference with contract, (vi) negligent or intentional infliction
of emotional distress, (vii) violation of public policy, (viii) retaliation, (ix) promissory
estoppel, (x) harassment, (xi) whistle blowing, or (xii) unpaid wages. By way of example, this
release covers any and all claims arising under the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act, the National Labor Relations
Act, the Fair Labor Standards Act, and any other federal, local or common laws regarding rights or
claims relating to employment. You understand that by signing this Attachment A you are not
releasing any accrued and vested rights you have under Freescale benefit plans that survive
separation from employment under the terms of the plans; the right you have pursuant to the letter
from Motorola dated July 14, 2004, to receive a payment to compensate you for the loss of your
benefits under the Motorola Elected Officer Supplemental Retirement Plan; or, any any rights that
cannot be waived by law, including the right to file an administrative charge of discrimination; or
any rights that arise under this Agreement. This Attachment A will not become effective or
enforceable until seven days after you sign it, during which time you can revoke it if you wish, by
delivering a signed revocation letter within the seven-day period to Larry M. Parsons, Freescale
Law Department, 7700 West Parmer Lane, MD: TX32/PL02, Austin, Texas 78729.

	 	 	 
	Agreed to and accepted by:
	 	 
	 
	 	 
	                                                                                

	 	 
	Scott A. Anderson
	 	 
	 
	 	 
	Date:                                                                                 
	 	 
	(to be signed after July 29, 2005 and before August 19, 2005

and original returned to Larry Parsons at the above address)

6

 

Freescale Semiconductor, Inc. 6501 William Cannon Drive West, Austin, TX 78735-8598

July 13, 2004

Mr. Scott A. Anderson

Freescale Semiconductor, Inc.

6501 William Cannon Drive West

Austin, TX 78735

Dear Mr. Anderson:

As you know, the Board of Directors of Motorola, Inc. (“Motorola”) has awarded you $2,090,000 to
compensate you for the loss of your unvested benefits under the Motorola Elected Officer
Supplemental Retirement Plan (the “Plan”) and to further motivate you to make Freescale a success.
Fifty percent of the award will be paid to you on the two-year anniversary of the date Motorola
distributes its remaining interest in Freescale Semiconductor, Inc. (“Freescale”) to Motorola’s
common stockholders (the “Distribution Date”) and the other 50% on the three-year anniversary of
the Distribution Date. These payments are conditioned on your remaining an employee of Freescale or
any successor thereof on the date of payment. However, you will be entitled to a lump sum payment
of any unpaid portion of the award if your employment with Freescale or any successor is terminated
by your death or disability or by Freescale or its successor without cause.

The Board of Directors of Freescale has approved the reimbursement of any tax cost your incur as a
result of the receipt of these payments from Motorola on a grossed-up basis. For purposes of
determining the amount of the gross-up payment, you will be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in which the gross-up
payment is to be made and state and local income taxes at the highest marginal rate of

 

 

taxation in
the state and locality in which you are resident at that time, net of the maximum reduction in
federal income taxes which could be obtained from the deduction of such state and local taxes.

You hereby agree to notify Freescale of the amount of any payment received from Motorola in payment
of the award and the date of such payment.

Please affix your signature to the enclosed copy of this letter agreement and return it to me at
your earliest convenience.

Sincerely,

Karen Roscher

FREESCALE SEMICONDUCTOR, INC.

ACCEPTED:

/s/ SCOTT A. ANDERSON

Date: 07/16/04

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