Document:

Freescale Holdings 2006 Management Incentive Plan

 Exhibit 10.7 
 FREESCALE HOLDINGS 
 2006 MANAGEMENT INCENTIVE PLAN 
 1. DEFINED TERMS 
 Exhibit A, which is incorporated by
reference, defines the terms used in the Plan and in the Award Agreements. 
 2. PURPOSE 
 The Plan has been established to advance the interests of the Company and its Affiliates by providing for the grant to Participants of Awards. 

3. ADMINISTRATION 
 The Committee has discretionary
authority, subject only to the express provisions of the Plan and the Award Agreements, to interpret the Plan; determine eligibility for and grant Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and
procedures; and otherwise do all things necessary to carry out the purposes of the Plan. Except as otherwise provided by the express terms of an Award Agreement, all determinations of the Committee made under the Plan will be conclusive and will
bind all parties. 
 4. LIMITS ON AWARDS UNDER THE PLAN 
 (a) Number of Shares. A maximum of 15,610,400.44 shares of Common Stock of the Company may be delivered in satisfaction of Awards under the Plan. The issuance of Shares, the payment of cash upon the
exercise of an Award, the withholding of Shares in satisfaction of the exercise price of Stock Options or the withholding of Shares in satisfaction of tax withholding requirements shall reduce the total number of Shares available under the Plan, as
applicable. Shares which are subject to Awards (or portion thereof) that are canceled, forfeited or otherwise terminated may be granted again under the Plan. Common Stock issued under awards of an acquired company that are converted, replaced or
adjusted in connection with the acquisition shall not reduce the number of shares available for Awards under the Plan. 
 (b) Type of
Shares. Common Stock delivered under the Plan may be authorized but unissued Common Stock or previously issued Common Stock acquired by the Company or any of its Affiliates and may include fractional shares of Common Stock. 
 5. ELIGIBILITY AND PARTICIPATION 
 The Committee will
select Participants from among those key Employees and directors of the Company or its Affiliates who, in the opinion of the Committee, are in a position to make a significant contribution to the success of the Company and its Affiliates.

 6. RULES APPLICABLE TO STOCK OPTIONS 
 (a) General 
 (1) Stock Option Provisions. The Committee will determine the terms
of all Stock Options, subject to the limitations provided herein, and shall furnish to each Participant an Award Agreement setting forth the terms applicable to the Participant’s Stock Option. By entering into an Award Agreement, the
Participant agrees to the terms of the Stock Option and of the Plan, to the extent not inconsistent with the express terms of the Award Agreement. Notwithstanding any provision of this Plan to the contrary, awards of an acquired company that are
converted, replaced or adjusted in connection with the acquisition may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Committee. 
 (2) Transferability. Except as otherwise provided in the Investors Agreement or as the Committee otherwise expressly provides, Stock
Options may not be transferred other than by will or by the laws of descent and distribution, and during a Participant’s lifetime, except as the Committee otherwise expressly provides, may be exercised only by the Participant. 
 (3) Vesting, Etc. The Committee may determine the time or times at which a Stock Option will vest or become exercisable and the terms on
which a Stock Option requiring exercise will remain exercisable. Without limiting the foregoing, the Committee may at any time accelerate the vesting or exercisability of a Stock Option, regardless of any adverse or potentially adverse tax
consequences resulting from such acceleration. Unless the Committee expressly provides otherwise, however, the following rules will apply if a Participant’s Employment ceases: Immediately upon the cessation of Employment any Stock Option will
cease to be exercisable and will terminate, except that: 
 (A) subject to (B) and (C) below, all Stock Options held
by the Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment, to the extent then exercisable, will remain exercisable for the shorter of (i) a period of 90
days or (ii) the period ending on the latest date on which such Stock Option could have been exercised without regard to this Section 6(a)(3), and will thereupon terminate; 
 (B) all Stock Options held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the
Participant’s death or Disability, to the extent then exercisable, will remain exercisable for the shorter of (i) the one year period ending with the first anniversary of the Participant’s death or Disability or (ii) the period
ending on the latest date on which such Stock Options could have been exercised without regard to this Section 6(a)(3), and will thereupon terminate; and 
 (C) all Stock Options held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of
the Participant’s Employment will immediately terminate upon such cessation if such cessation of Employment was for Cause. 
 (4)
Taxes. The Committee will make such provision for the withholding of taxes as it deems necessary. The Committee may, but need not, hold back shares of Common Stock from a Stock Option or permit a Participant to tender previously owned
shares of Common Stock in satisfaction of tax withholding requirements (but not in excess of the applicable minimum statutory withholding rate). 
  

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 (5) Dividend Equivalents, Etc. To the extent consistent with Section 409A of the Code,
the Committee may in its sole discretion provide for the payment of amounts in cash, or for other adjustments to a Stock Option, upon an Adjustment Event, with respect to Common Stock subject to a Stock Option. 
 (6) Rights Limited. Nothing in the Plan will be construed as giving any person the right to continued Employment with the Company or its
Affiliates, or any rights as a stockholder except as to shares of Common Stock actually issued under the Plan. 
 (7) Investors
Agreement. Unless otherwise specifically provided, all Stock Options issued under the Plan and all Common Stock issued thereunder will be subject to the Investors Agreement. 
 (b) Exercise 
 (1) Time
And Manner Of Exercise. Unless the Committee expressly provides otherwise, a Stock Option permitting exercise by the holder will not be deemed to have been exercised until the Committee receives a notice of exercise (in form acceptable to
the Committee) signed by the appropriate person and accompanied by any payment required under the Stock Option. If the Stock Option is exercised by any person other than the Participant, the Committee may require satisfactory evidence that the
person exercising the Stock Option has the right to do so. 
 (2) Exercise Price. The Committee will determine the exercise
price, if any, of each Stock Option requiring exercise. Unless the Committee determines otherwise, and in all events in the case of a Stock Option (except as otherwise permitted pursuant to Section 6(a)(5) or Section 7(b)(1) hereof), the
exercise price of a Stock Option will not be less than the Fair Market Value of the Common Stock subject to the Stock Option, determined as of the date of grant. 
 (3) Payment Of Exercise Price. Where the exercise of a Stock Option is to be accompanied by payment, the Committee may determine the required or permitted forms of payment, subject to the following:
(a) all payments will be by cash or check acceptable to the Committee, or (b) if so permitted by the Committee, (i) through the delivery of shares of Common Stock that have a Fair Market Value equal to the exercise price, except where
payment by delivery of shares of Common Stock would adversely affect the Company’s results of operations under Generally Accepted Accounting Principles or where payment by delivery of shares of Common Stock outstanding for less than six months
would require application of securities laws relating to profit realized on such shares of Common Stock, (ii) where permitted by law, by delivery to the Company of a promissory note of the person exercising the Stock Option, payable on such
terms as are specified by the Committee, (iii) at such time, if any, as the Common Stock is publicly traded, through a broker-assisted exercise program acceptable to the Committee, (iv) by other means acceptable to the Committee, or
(v) by means of withholding of shares of Common Stock, with an aggregate Fair Market Value equal to (A) the aggregate exercise price and (B) unless the Company is precluded or restricted from doing so under debt covenants, minimum
statutory withholding 

  

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taxes with respect to such exercise, or (vi) by any combination of the foregoing permissible forms of payment. The delivery of shares of Common Stock in
payment of the exercise price under clause (b)(i) above may be accomplished either by actual delivery or by constructive delivery through attestation of ownership, subject to such rules as the Committee may prescribe. 
 7. EFFECT OF CERTAIN TRANSACTIONS 
 (a) Change
Of Control Except as otherwise provided in an Award Agreement: In the event of a Change of Control in which there is an acquiring or surviving entity, the Committee may, unless the Committee determines that doing so is inappropriate or
unfeasible, provide for the continuation or assumption of some or all outstanding Awards, or for the grant of new awards in substitution therefor, by the acquiror or survivor or an affiliate of the acquiror or survivor, in each case on such terms
and subject to such conditions as preserve the intrinsic value of the Award in the Committee’s good faith determination. In the event of a Change of Control (whether or not there is an acquiring or surviving entity) in which there is no
assumption or substitution as to some or all outstanding Awards, the Committee shall preserve the intrinsic value of the Awards, provide for treating as satisfied any time-based vesting condition on any such Award or for the accelerated delivery of
shares of Common Stock issuable under each such Award, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by the Committee, following exercise of the Award or the issuance of the shares, as the case
may be, to participate as a stockholder in the Change of Control. Except as otherwise provided in an Award Agreement, each Award (unless assumed pursuant to the first sentence of this Section 7(a)), will terminate upon consummation of the
Change of Control. 
 (b) Changes In, Distributions With Respect To And Redemptions Of Common Stock 
 (1) Basic Adjustment Provisions. In the event of any stock dividend or other similar distribution (whether in the form of stock or other
securities or other property), stock split or combination of shares (including a reverse stock split), recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, merger, exchange of stock, redemption or repurchase
of all or part of the shares of any class of stock or any change in the capital structure of the Company or an Affiliate or other transaction or event (other than those described in Section 7(a)), the Committee will, as appropriate in order to
prevent enlargement or dilution of benefits intended to be made available under the Plan, make adjustments to the maximum number of shares of Common Stock that may be delivered under the Plan under Section 4(a) and will also make appropriate
adjustments to the number and kind of shares of stock, securities or other property (including cash) subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards affected by
such change. 
 (2) Certain Other Adjustments. The Committee will also make adjustments of the type described in paragraph
(1) above to take into account distributions to stockholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Committee determines that adjustments are appropriate to avoid distortion in the operation
of the Plan and to preserve the value of Awards made hereunder. 
  

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 (3) Continuing Application of Plan Terms. References in the Plan to shares of Common Stock
will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7. 
 8. OTHER STOCK BASED AWARDS

 The Committee, in its sole discretion, may grant the right to purchase Shares, Awards of Shares, Awards of restricted Shares, Awards of
phantom stock units and other Awards that are valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of, Shares (“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in such form,
and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive one or more Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the
occurrence of an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards granted under the Plan. Subject to the provisions of the Plan, the Committee shall determine:
(a) the number of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards; (b) whether such Other Stock-Based Awards shall be settled in cash, Shares or a combination of cash and Shares; and (c) all other
terms and conditions of such Other Stock-Based Awards (including, without limitation, the vesting provisions thereof, provisions ensuring that all Shares so awarded and issued shall be fully paid and non-assessable and whether dividend equivalent
rights shall be attached). 
 9. LEGAL CONDITIONS ON DELIVERY OF COMMON STOCK 
 The Company shall, prior to delivering shares of Common Stock pursuant to the Plan or removing any restriction from shares of Common Stock previously
delivered under the Plan, that (a) all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved, and (b) if the outstanding Common Stock is at the time of delivery listed on any stock
exchange or national market system, the shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance. The Company and its Affiliates will be obligated to deliver any shares of Common
Stock pursuant to the Plan or to remove any restriction from shares of Common Stock previously delivered under the Plan upon satisfaction or waiver of the conditions set forth in the preceding sentence and all other conditions of the Award
Agreement. If the sale of Common Stock has not been registered under the Securities Act of 1933, as amended, the Company may require, as a condition to exercise of the Award, such representations or agreements as counsel for the Company may in good
faith recommend to avoid violation of such Act. The Company may require that certificates evidencing Common Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Common Stock, and the
Company may hold the certificates pending lapse of the applicable restrictions. 
 10. AMENDMENT AND TERMINATION 
 The Committee may at any time or times amend the Plan or any outstanding Award and may at any time terminate the Plan as to any future grants of Awards;
provided, that the Committee may not, without the Participant’s consent, amend or terminate the terms of an Award or the Plan so as to affect adversely the Participants’ or a Participant’s rights under the Investors Agreement, an

  

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Award or the Plan. Any amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is required by
applicable law (including the Code), as determined by the Committee. 
 11. WAIVER OF JURY TRIAL 
 By accepting an Award under the Plan, each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights
under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection. therewith, and agrees that any such action, proceedings or counterclaim
shall be tried before a court and not before a jury. By accepting an Award under the Plan, each Participant certifies that no officer, representative or attorney of the Company or any Affiliate has represented, expressly or otherwise, that the
Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers. 
 12. ESTABLISHMENT OF SUB-PLANS

 The Board may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky,
securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by adopting supplements to the Plan setting forth (i) such limitations on the Committee’s discretion under the Plan as the Board deems necessary or
desirable and (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement
shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any jurisdiction that is not affected. 
 13. SECTION 409A 
 It is intended that the terms of
this Plan comply with Section 409A of the Code. If it is determined that the terms of this Plan have been structured in a manner that would result in adverse tax treatment under Section 409A of the Code, the parties agree to cooperate in
taking all reasonable measures to restructure the arrangement to minimize or avoid such adverse tax treatment without materially impairing Participant’s economic rights. 
 14. GOVERNING LAW 
 Except as otherwise provided by the express terms of an Award Agreement or under a
sub-plan described in Section 12, the provisions of the Plan and of Awards under the Plan shall be governed by and interpreted in accordance with the laws of the State of Delaware. 
  

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 EXHIBIT A 
 Definitions of Terms 
 The following terms, when used in the Plan, will have the meanings and
be subject to the provisions set forth below: 
 “Affiliate”: Any corporation or other entity that is an
“Affiliate” of the Company within the meaning of the Investors Agreement. 
 “Adjustment Event”: Either (i) a
cash dividend with respect to shares of Common Stock paid to all or substantially all holders of shares of Common Stock, other than cash dividends in respect of shares of Common Stock declared by the Board as part of a regular dividend payment
practice or stated cash dividend policy of the Company following an IPO, or (ii) a substantially pro rata redemption or substantially pro rata repurchase by the Company, of all or part of any class of stock of the Company. 
 “Award”: any Stock Option or Other Stock-Based Award granted pursuant to the Plan. 
 “Award Agreement”: A written agreement between the Company and the Participant evidencing an Award, which may, but need not, be executed
or acknowledged by a Participant. 
 “Board”: The Board of Directors of Freescale Holdings. 
 “Cause”: “Cause” as defined in the Investors Agreement. 
 “Change of Control”: Any of the following: (i) a Change of Control within the meaning of the Investors Agreement;
(ii) directly or indirectly a sale, transfer or other conveyance of all or substantially all of the assets of Freescale Semiconductor, Inc. (“Freescale”), on a consolidated basis, to any “person” or “group” (as
such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable), as an entirety or substantially as an entirety in one transaction or series of related transactions; (iii) any “person” or
“group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable), other than one or more Qualified Institutional Investors, is or becomes the “beneficial owner” (as that
term is used in Rules 13d-3 and 13d-5 under the Exchange Act, whether or not applicable), directly or indirectly, of more than 50% of the total voting power of all Voting Stock then outstanding of Freescale, provided that for so long as (x) the
Partnership and its subsidiaries own more than 50% of the total voting power of all Voting Stock of Freescale and (y) one or more Qualified Institutional Investors own more than 50% of the total voting power of all Voting Stock of the general
partner of the Partnership, such Qualified Institutional Investors will be deemed to beneficially own the Freescale Voting Stock owned by the Partnership and its subsidiaries; or (iv) during any period of 24-consecutive months, individuals who
at the beginning of such period constituted the board of directors of Freescale (together with any new directors whose election by such board of directors or whose nomination for election by the stockholders of Freescale was approved by a vote of a
majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the board of directors
of Freescale then in office. 
  

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 “Code”: The U.S. Internal Revenue Code of 1986 as from time to time amended and in
effect, or any successor statute as from time to time in effect. 
 “Committee”: The Board or, if one or more has been
appointed, a committee of the Board. The Committee may delegate ministerial tasks to such persons as it deems appropriate. 
 “Common
Stock”: Common shares of the Company, par value $.01 per share. 
 “Company”: Freescale Holdings (Bermuda) I, Ltd.,
a Bermuda limited company. 
 “Disability”: “Disability” as defined in the Investors Agreement. 
 “Employee”: Any person who is employed by the Company or an Affiliate. 
 “Employment”: A Participant’s employment or other service relationship with the Company and its Affiliates. Unless the Committee
provides otherwise: A Participant who receives an Award in his or her capacity as an Employee will be deemed to cease Employment when the employee-employer relationship with the Company and its Affiliates ceases. A Participant who receives an Award
in any other capacity will be deemed to continue Employment so long as the Participant is providing services in such capacity. If a Participant’s relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant will
be deemed to cease Employment when the entity ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates. 
 “Exchange Act”: the Securities Exchange Act of 1934, as amended. 
 “Fair Market
Value”: “Fair Market Value” as defined in the Investors Agreement 
 “Good Reason”: “Good
Reason” as defined in the Investors Agreement. 
 “Investors Agreement”: Investors Agreement by and among Freescale
Holdings L.P., Freescale Holdings (Bermuda) I, Ltd., Freescale Holdings (Bermuda) II, Ltd., Freescale Holdings (Bermuda) III, Ltd., Freescale Acquisition Holdings Corp., Freescale Holdings (Bermuda) IV, Ltd., Freescale Acquisition Corporation and
Certain Freescale Holdings L.P. Investors and certain stockholders of Freescale Holdings (Bermuda) I, Ltd. dated as of December 1, 2006. 
 “Other Stock-Based Award”: any award granted under Section 8 of the Plan. 
 “Participant”: A
person who is granted an Award under the Plan. 
 “Partnership”: Freescale Holdings L.P., a Cayman Islands exempted limited
partnership, together with any successor thereto. 
 “Plan”: Freescale Holdings 2006 Management Incentive Plan as from time
to time amended and in effect. 
 “Qualified Institutional Investors”: “Qualified Institutional Investors” as
defined in the Investors Agreement. 
  

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 “Restrictive Covenants”: “Restrictive Covenants” as defined in the Investors
Agreement. 
 “Retirement”: the Participant’s voluntary termination of Employment other than for Cause after the date
on which the Participant has reached the age of 55 and has a total of at least five years combined and continuous employment with the Company, taking into account the Participant’s continuous period of service with Freescale Semiconductor, Inc.
and Motorola prior to the consummation of the transactions contemplated by the Merger Agreement (as defined in the Investors Agreement). 
 “Severance Period”: “Severance Period” as defined in the Investors Agreement. 
 “Shares”
Common shares of the Company, par value $.01 per share. 
 “Stock Option”: An option entitling the recipient to acquire
shares of Common Stock upon payment of the exercise price. 
 “Voting Stock”: all classes of capital stock or shares then
outstanding and normally entitled to vote in elections of directors. 
  

 9Form of Freescale Holdings Nonqualified Stock Option Agreement

 Exhibit 10.8 
 [FORM OF INCENTIVE EQUITY OPTION] 
 FREESCALE HOLDINGS 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS
AGREEMENT (the “Agreement”), is made effective as of December 1, 2006 (the “Date of Grant”), between Freescale Holdings (Bermuda) I, Ltd., a Bermuda limited company (the “Company”), and
             (the “Participant”): 
 RECITALS: 

WHEREAS, the Company has adopted the Freescale Holdings 2006 Management Incentive Plan (the “Plan”), which Plan is incorporated herein by
reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and 
 WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant the Stock Option provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

 NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 
 1. Grant of the Option. The Company hereby grants (subject to the Participant’s execution of the Investors Agreement) to the Participant the
right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate of              shares of Common Stock
(each a “Share” and collectively, the “Shares”). The purchase price of the Shares subject to the Option shall be $             per Share (the “Option
Price”). The Option is intended to be a non-qualified stock option, and is not intended to be treated as an option that complies with Section 422 of the Code. 

 2. Vesting. 
 (a) Subject to the Participant’s continued Employment with the Company, or except as otherwise provided below, the Option shall vest and become exercisable with respect to twenty-five percent (25%) of the
Shares initially covered by the Option on each of the first, second, third and fourth anniversaries of the Date of Grant. At any time, the portion of the Option which has become vested and exercisable as described above (or pursuant to Sections 2(b)
or 4 below) is hereinafter referred to as the “Vested Portion”. 
 (b) Notwithstanding any other provisions of this Agreement to
the contrary, in the event of a Change of Control, the unvested portion of the Option shall become vested and exercisable for an additional number of Shares where that additional number of Shares equals the remaining unvested Shares multiplied by
the Change of Control Cash Consideration Fraction. For purposes of this Agreement, “Change of Control Cash Consideration Fraction” shall mean, with respect to a Change of Control, the portion of the per Share consideration which is paid in
the form of cash, provided that if the Change of Control Cash Consideration Fraction is .75 or higher, it shall be deemed to be 1. Notwithstanding the above, in the event the Participant’s Employment is terminated by the Company or any
successor thereto without Cause or by the Participant for Good Reason, in each case following a Change of Control, the Option shall immediately become fully vested and exercisable. 
 3. Exercise of Option. 
 (a) Period
of Exercise. Subject to the provisions of the Plan and this Agreement, the Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the earliest to occur of: 
 (i) the tenth anniversary of the Date of Grant; 
 (ii) one (1) year following the date of the Participant’s termination of Employment due to death or Disability; 
 (iii) ninety (90) days following the date of the Participant’s termination of Employment for any reason other than due to the
Participant’s death or Disability; and 
 (iv) the date of the Participant’s termination of Employment for Cause.

 (b) Method of Exercise. 
 (i) Each election to exercise the Vested Portion shall be subject to the terms and conditions of the Plan and shall be in writing, signed by the Participant or by his or her executor, administrator, or permitted
transferee (subject to any restrictions provided 

  

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under the Plan and the Investors Agreement), made pursuant to and in accordance with the terms and conditions set forth in the Plan and received by the
Company at its principal offices, accompanied by payment in full as provided in the Plan. 
 (ii) The Option Price may be paid
by delivery of cash or check acceptable to the Committee or by means of withholding of Shares subject to the Vested Portion with an aggregate Fair Market Value equal to (A) the aggregate exercise price and (B) unless the Company is
precluded or restricted from doing so under debt covenants, minimum statutory withholding taxes with respect to such exercise, or by such other method provided under the Plan and explicitly approved by the Committee. In the event that the Vested
Portion is exercised by a person other than the Participant, the Company shall ascertain the authority of the Option holder to exercise the Vested Portion and shall deliver the Shares hereunder to the Option holder after it is satisfied as to such
authority. 
 (iii) Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Vested Portion may
not be exercised prior to the completion of any registration or qualification of the Option or the Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities
exchange that the Committee shall in its sole discretion determine to be necessary or advisable. The Committee shall use its best efforts to cause any registration or qualification of the Option or the Shares to be completed. 
 (iv) Upon the Company’s determination that the Vested Portion of the Option has been validly exercised as to any of the Shares, the
Company shall issue certificates in the Participant’s name for such Shares. However, the Company shall not be liable to the Participant for damages relating to any reasonable delays in issuing the certificates to such Participant, any loss of
the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves which it promptly undertakes to correct. 
 (v) In the event of the Participant’s death, the Option shall remain exercisable by the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this
Agreement shall pass by will or by the laws of descent and distribution as the case may be, to the extent set forth in Section 3(a). Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions
hereof. 
 (vi) In no event may a Participant or any other holder of an Option who has not executed the Investors Agreement
exercise any part of the Vested Portion. 
  

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 4. Termination of Employment. 
 (a) General. If the Participant’s Employment is terminated for any reason, the Option shall, to the extent not then vested (after giving
effect to the provisions of Section 2(b) and this Section 4), terminate upon such termination of Employment and the Vested Portion of the Option shall remain exercisable for the period set forth in Section 3(a) and shall thereafter
terminate. 
 (b) For Cause. The Option (including any Vested Portion thereof) shall terminate upon the Participant’s termination
of Employment for Cause. 
 (c) Without Cause or for Good Reason. Upon the Participant’s termination of Employment without Cause
or by the Participant for Good Reason, the Option shall become vested and exercisable for an additional number of Shares equal to the number of Shares subject to the Option (if any) that would have vested on the next anniversary of the Date of Grant
if the Participant had remained employed until such date (the “Subsequent Tranche”), multiplied by a fraction, the numerator of which equals the number of days elapsed from the vesting date immediately preceding termination of the
Participant’s Employment through the Participant’s termination of Employment and the denominator of which equals 365 plus, if so determined in the sole discretion of the Chief Executive Officer of the Company, the Subsequent Tranche;
subject in all circumstances to the maximum of the total number of Shares subject to the Option as of the date of such termination of Employment. Any portion of the Option that is not exercisable after giving effect to the above provisions of this
Section 4(c) shall terminate immediately effective as of the termination of the Participant’s Employment. 
 (d) Death. Upon
the Participant’s termination of Employment due to death, the Option shall become fully vested and exercisable. 
 (e)
Disability. Upon the Participant’s termination of Employment due to Disability, the Option shall become fully vested and exercisable. 
 (f) Retirement. Upon the Participant’s termination of Employment due to Retirement and solely to the extent so determined by the Company’s Chief Executive Officer, the Option shall become vested and exercisable for an
additional number of Shares equal to the Subsequent Tranche multiplied by a fraction, the numerator of which equals the number of days elapsed from the vesting date immediately preceding termination of Participant’s Employment through the
Participant’s termination of Employment and the denominator of which equals 365; subject in all circumstances to the maximum of the total number of Shares subject to the Option as of the date of such termination of Employment. Any portion of
the Option that is not exercisable after giving effect to the above provisions of this Section 4(f) shall terminate immediately effective as of the termination of the Participant’s Employment. 
 (g) By the Participant other than due to Disability or Good Reason. If the Participant’s Employment is terminated on account of a termination
of the Participant’s Employment initiated by the Participant other than due to Disability or Good Reason, then the unvested portion of the Option then held by the Participant shall be automatically forfeited. 
  

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 (h) Forfeiture. Notwithstanding anything herein to the contrary, if the Participant breaches any
Restrictive Covenants applicable to the Participant (including, without limitation, the Restrictive Covenants set forth in Exhibit A hereto) following termination of the Participant’s Employment by the Participant other than due to Disability
or Good Reason, in each case on or after the second anniversary of the Date of Grant, then (x) any portion of the Option that vested during the twelve-month period immediately preceding the date of termination (the “Preceding
Tranche”) shall be automatically forfeited, (y) any Shares acquired pursuant to the exercise of an Option in the Preceding Tranche shall be subject to the call option set forth in Section 6 of the Investors Agreement and (z) any
proceeds from the sale of Shares described in preceding clause (y), shall be immediately repaid to the Company. Notwithstanding anything herein to the contrary, if the Participant breaches any Restrictive Covenants applicable to the Participant
(including, without limitation, the Restrictive Covenants set forth in Exhibit A hereto) during the Severance Period (as defined below) then (x) any Vested Portion then held by the Participant shall be automatically forfeited, (y) any
Shares acquired pursuant to the exercise of the Option shall be subject to the call option set forth in Section 6 of the Investors Agreement and (z) any proceeds from the sale of Shares described in preceding clause (y), shall be
immediately repaid to the Company. For purposes of this Agreement “Severance Period” shall mean, in the event of termination of the Participant’s Employment in circumstances entitling the Participant to severance under an applicable
plan or policy or an individual agreement, and under which plan, policy or individual agreement the Participant elects to and actually receives severance, the two-year period immediately following the date of such termination. 
 5. Certain Covenants. The Participant hereby agrees and covenants to perform all of his obligations set forth in Exhibit A hereto (which is
incorporated by reference hereby) and acknowledges that the Participant’s obligations set forth in Exhibit A constitute a material inducement for the Company’s grant of Options to the Participant, but, as to the Company’s remedy,
subject only to the provisions set forth in subsection (f) of Exhibit A. 
 6. Share Restrictions, etc. Except as expressly
provided herein, the Participant’s rights hereunder and with respect to Shares received upon exercise of the Vested Portion are subject to the restrictions and other provisions contained in the Investors Agreement. 
 7. Distributions, Redemptions, etc. Upon the occurrence of an Adjustment Event, the Option Price shall be reduced by an amount equal to the
per-Share amount paid in connection with the Adjustment Event; provided, however, that any such reduction shall be limited to that portion of such amount which would not cause the Option Price to be reduced below 25% of the per-Share Fair Market
Value, as of the date of such reduction. In the case of a redemption or repurchase, the number of Shares of the class of stock redeemed or repurchased that are subject to the Option will be automatically reduced by an amount proportionate to the
percentage reduction in outstanding shares of the affected class resulting from the redemption or repurchase. 
  

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 8. No Right to Continued Employment. The granting of the Option evidenced hereby and this
Agreement shall impose no obligation on the Company or any Affiliate to continue the Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate the Employment of such Participant.

 9. Legend on Certificates. The certificates representing the Shares purchased by exercise of the Vested Portion shall be subject to
such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed,
and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 10. Transferability. Except as provided in the Investors Agreement, the Option may not be assigned, alienated, pledged, attached, sold or
otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Option to heirs
or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the
transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. During the Participant’s lifetime, the Vested Portion is exercisable only by the Participant or a permitted transferee (pursuant to the Investors
Agreement). 
 11. Withholding. Subject to Section 3(b)(ii), the Participant may be required to pay to the Company or any
Affiliate and the Company shall have the right and is hereby authorized to withhold from any payment due or transfer made under the Option or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares,
other securities or other property) of any applicable withholding taxes in respect of the Option, its exercise or any payment or transfer under or with respect to the Option or the Plan and to take such other action as may be necessary in the
opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. 
 12. Securities Laws. The issuance of
any Shares hereunder shall be subject to the Participant making or entering into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws. 
 13. Notices. Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive
office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any
such notice shall be deemed effective upon receipt thereof by the addressee. 
  

 6 

 14. Governing Law. This Agreement and all claims arising out of or based upon this Agreement or
relating to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the
application of the domestic substantive laws of any other jurisdiction. 
 15. Consent to Jurisdiction. All actions arising out of or
relating to this Agreement shall be heard and determined exclusively in any New York state or federal court sitting in the Borough of Manhattan in The City of New York. The parties hereto hereby (a) submit to the exclusive jurisdiction of any
state or federal court sitting in the Borough of Manhattan of The City of New York for the purpose of any action arising out of or relating to this Agreement brought by any party hereto, and (b) irrevocably waive, and agree not to assert by way
of motion, defense, or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune of from attachment or execution, that the action is brought in an
inconvenient forum, that the venue of the action is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in or by any of the above-named courts. 
 16. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS
THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION
ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO
ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 15 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. ANY PARTY
HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 15 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 
 17. Option Subject to Plan and Investors Agreement. By entering into this Agreement the Participant agrees and acknowledges that the Participant
has received and read a copy of the Plan, the Investors Agreement and the Offering Memorandum for the Plan. The Option is subject to the Plan and the Investors Agreement, each as may be amended from time to time, and the terms and provisions of the
Plan and the Investors Agreement are hereby 

  

 7 

 
incorporated herein by reference. By entering into this Agreement, the Participant hereby authorizes John Torres as the Participant’s attorney-in-fact
and delegates full power and authority to Mr. Torres to enter into the Investors Agreement on the Participant’s behalf. 
 18.
Change in Control Severance Plan. In consideration of the grant of the Option and acknowledging that such agreement constitutes a material inducement for the grant of such Option, the Participant hereby agrees that as of the date hereof, with
respect to the Freescale Semiconductor, Inc. Officer Change in Control Severance Plan (the “CIC Plan”), in no event will there be deemed to be a Good Reason with respect to the Participant under the CIC Plan solely by reason of
(A) Freescale Semiconductor, Inc. becoming privately held in connection with the consummation of the transactions contemplated by the Merger Agreement (as defined in the Investors Agreement), (b) on account of a lateral change to the
Participant’s duties that does not affect the Participant’s reporting relationships or (c) the Participant ceasing to serve as an executive of a publicly held corporation. The Participant further agrees that the last sentence of
Section 7.4 of the CIC Plan shall be of no force and effect. 
 19. Section 409A. It is intended that the terms of this
Agreement comply with section 409A of the Code. If it is determined that the terms of this Agreement have been structured in a manner that would result in adverse tax treatment under section 409A of the Code, the parties agree to cooperate in taking
all reasonable measures to restructure the arrangement to minimize or avoid such adverse tax treatment without materially impairing Participant’s economic rights. 
 20. Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 
  

			
	FREESCALE HOLDINGS (BERMUDA) I, LTD.
		
	By:	 	  

	Name:	 	Paul C. Schorr IV
	Title:	 	President

  

	
	Agreed and acknowledged as of the date first above written:
	
	  

	Participant

  

 9

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