Document:

Master Separation and Distribution Agreement

 EXHIBIT 10(a) 
  
 MASTER SEPARATION AND DISTRIBUTION AGREEMENT 
  
 THIS MASTER SEPARATION AND DISTRIBUTION AGREEMENT (the “Agreement”) is made and entered into as of April 4,
2004, by and between Motorola, Inc., a Delaware corporation (“Motorola”), and Freescale Semiconductor, Inc., a Delaware corporation (“Freescale”). Capitalized terms used and not otherwise defined in this Agreement
have the meanings ascribed to such terms in Article 1 of this Agreement. 
  
 RECITALS 
  
 WHEREAS, Motorola has determined that
it would be appropriate, desirable and in the best interests of Motorola and Motorola’s stockholders to separate the SPS Business from Motorola; 
  
 WHEREAS, in connection with the separation of the SPS Business from Motorola, Motorola desires to contribute or otherwise transfer, and to cause certain
of its Subsidiaries to contribute or otherwise transfer, certain Assets and Liabilities associated with the SPS Business, including the stock or other equity interests of certain of Motorola’s Subsidiaries dedicated to the SPS Business, to
Freescale and certain of Freescale’s Subsidiaries (collectively, the “Contribution”); 
  
 WHEREAS, Freescale intends to offer and sell for its own account a limited number of shares of Freescale Class A Common Stock pursuant to an initial
public offering of such shares (the “IPO”), and in furtherance thereof, Freescale has previously filed the IPO Registration Statement with the SEC which has not yet become effective; 
  
 WHEREAS, in connection with the Contribution and in exchange for the SPS
Assets contributed by Motorola directly to Freescale, Freescale intends to (i) convert the Freescale Common Stock held by Motorola into shares of Freescale Class B Common Stock such that Motorola will own all of the outstanding Freescale Class B
Common Stock immediately following the consummation of the IPO, (ii) distribute to Motorola a portion of the IPO proceeds and Freescale Borrowing proceeds, which Motorola intends to transfer to creditors of Motorola, and (iii) assume the SPS
Liabilities; 
  
 WHEREAS, Motorola intends, after the IPO, to
distribute to holders of shares of Motorola Common Stock the outstanding shares of Freescale Common Stock then owned by Motorola (the “Distribution”); 
  
 WHEREAS, Motorola and Freescale intend that the contribution of Assets by Motorola to Freescale pursuant to Section 2.1 of
this Agreement and the Distribution, taken together, will qualify as a reorganization for U.S. federal income tax purposes pursuant to which no gain or loss will be recognized by Motorola or its stockholders under Section 355, 361(b)(3),
368(a)(1)(D) and related provisions of the Code, and that this Agreement is intended to be, and is hereby adopted as, a plan of reorganization under Section 368 of the Code; and 
  

 WHEREAS, the parties intend in this Agreement and the Ancillary Agreements to set forth the principal
arrangements between them regarding the Contribution, the IPO and the Distribution: 
  
 AGREEMENT 
  
 NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth below, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows:

  
 ARTICLE 1 
 DEFINITIONS 
  
 The following terms, as used in this Agreement, have the following meanings: 
  
 “Action” means any suit, arbitration, inquiry, proceeding or investigation by or before any court,
governmental or other regulatory or administrative agency or commission or any arbitration tribunal asserted by a Person. 
  
 “ADR” has the meaning set forth in Section 9.3(b) of this Agreement. 
  
 “Affiliate” of any specified Person means any other Person directly or indirectly
“controlling,” “controlled by,” or “under common control with” (within the meaning of the Securities Act), such specified Person; provided, however, that for purposes of this
Agreement, unless this Agreement expressly provides otherwise, the determination of whether a Person is an Affiliate of another Person will be made assuming that no member of the Motorola Group is an Affiliate of any member of the Freescale Group.
 
  
 “Agreement” has the meaning set forth
in the preamble to this Agreement. 
  
 “Ancillary
Agreements” means each of the Contribution Agreements, the Employee Matters Agreement, the Freescale Transition Services Agreement, the Intellectual Property Assignment Agreement, the Intellectual Property License Agreement, the Motorola
Transition Services Agreement, the Registration Rights Agreement and the Tax Sharing Agreement, including any exhibits, schedules, attachments, tables or other appendices thereto, and each agreement and other instrument contemplated herein or
therein.  
  
 “Annual Financial
Statements” has the meaning set forth in Section 5.1(a)(v) of this Agreement. 
  
 “Assets” means assets, properties and rights (including goodwill and rights arising under Contracts), wherever located (including in the possession of vendors, other Persons or elsewhere), whether
real, personal or mixed, tangible, intangible or contingent, in each case whether or not recorded or reflected or required to be recorded or reflected on the books and records or financial statements of any Person. 
  
 “Bad Act” has the meaning set forth in Section 2.2 of this
Agreement. 
  
 “Business Day” means a day other
than a Saturday, a Sunday or a day on which banking institutions located in Chicago, Illinois or New York, New York are authorized or obligated by law or executive order to close. 
  
 “Claimed Amount” has the meaning set forth in Section 8.3(a) of this Agreement. 
  
 “Claim Notice” has the meaning set forth in Section 8.3(a)
of this Agreement. 
  
 “Code” means the Internal
Revenue Code of 1986, as amended. 
  
 “Contracts”
means any contract, agreement, lease, license, sales order, purchase order, instrument or other commitment that is binding on any Person or any part of its property under applicable law. 
  
 “Contribution” has the meaning set forth in the Recitals to this Agreement. 
  

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 “Contribution Agreements” means the agreements entered into by and between Motorola and
certain of the Motorola Subsidiaries, on the one hand, and Freescale and certain of the Freescale Subsidiaries, on the other hand, pursuant to which the Contribution will be effected.  
  
 “Controlling Party” has the meaning set forth in Section
8.3(d)(ii) of this Agreement. 
  
 “Covered
Subsidiary” means a corporation or other legal entity controlled or owned, directly or indirectly, by Motorola or Freescale, as applicable, that satisfies the definition of “Subsidiary” under a Motorola insurance policy.

  
 “Damages” means all losses, claims, demands,
damages, Liabilities, judgments, dues, penalties, assessments, fines (civil, criminal or administrative), costs, liens, forfeitures, settlements, fees or expenses (including reasonable attorneys’ fees and expenses and any other expenses
reasonably incurred in connection with investigating, prosecuting or defending a claim or Action), of any nature or kind, whether or not the same would properly be reflected on a balance sheet. 
  
 “Dispute” has the meaning set forth in Section 9.3(a) of
this Agreement. 
  
 “Distribution” has the
meaning set forth in the Recitals to this Agreement. 
  
 “Distribution Agent” has the meaning set forth in Section 4.4(a) of this Agreement. 
  
 “Distribution Date” means the date on which the Distribution occurs. 
  
 “Effective Date” means April 4, 2004. 
  
 “Employee Matters Agreement” means that certain Employee Matters Agreement entered into by and between
Motorola and Freescale effective as of the Effective Date, as such Employee Matters Agreement may be amended from time to time. 
  
 “Environmental Law” means any federal, state, local, foreign or international statute, ordinance, rule, regulation, code, license,
permit, authorization, approval, consent, common law (including tort and environmental nuisance law), legal doctrine, order, judgment, decree, injunction, requirement or agreement with any governmental authority, now or hereafter in effect, relating
to health, safety, pollution or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or to emissions, discharges, releases or threatened releases of any substance currently or at any time hereafter
listed, defined, designated or classified as hazardous, toxic, waste, radioactive or dangerous, or otherwise regulated, under any of the foregoing, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of any such substances, including the Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and Reauthorization Act and the Resource Conservation and Recovery Act and
comparable provisions in state, local, foreign or international law. 
  
 “Environmental Liabilities” means all Liabilities relating to, arising out of, or resulting from, any Environmental Law or Contract relating to environmental, health or safety matters (including all removal, remediation or
cleanup costs, investigatory costs, response costs, natural resources damages, property damages, personal injury damages, costs of compliance with any product take back requirements or with any settlement, judgment or other determination of
Liability and indemnity, contribution or similar obligations) and all costs and expenses, interest, fines, penalties or other monetary sanctions in connection therewith. 
  

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 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
together with the rules and regulations promulgated thereunder. 
  
 “Existing IP Litigation Matters” means the following pending litigation matters: (i) Motorola, Inc. v. Analog Devices, Inc., No. 1:03-CV-0131, United States District Court, Eastern District of Texas (Beaumont Division);
(ii) STMicroelectronics v. Motorola, Inc., No. 4:03cv276, United States District Court, Eastern District of Texas (Sherman Division); and (iii) Motorola, Inc. v. Micron Technology, Inc., No. A04 CA 007, United States District Court, Western District
of Texas (Austin Division). 
  
 “Financial
Statements” means the Annual Financial Statements and Quarterly Financial Statements collectively. 
  
 “Freescale” has the meaning set forth in the preamble to this Agreement. 
  
 “Freescale Bank Facilities” means the term loan facility and revolving credit facility, if any,
contemplated to be entered into by Freescale concurrently with the IPO with a syndicate of bank and institutional lenders on such terms and conditions as agreed to by Motorola, Freescale and the other parties to the Freescale Bank Facilities.

  
 “Freescale High Yield Notes” means the senior
unsecured notes contemplated to be issued by Freescale concurrently with the IPO on such terms and conditions as agreed to by Motorola, Freescale and the underwriters for the Freescale High Yield Notes. 
  
 “Freescale Borrowing” means new indebtedness of Freescale
and its Subsidiaries to be incurred by the IPO pursuant to the Freescale Bank Facilities and the issuance of the Freescale High Yield Notes. 
  
 “Freescale Capital Stock” means all classes or series of capital stock of Freescale, including the Freescale Class A Common Stock, the
Freescale Class B Common Stock, and all options, warrants and other rights to acquire such capital stock. 
  
 “Freescale Class A Common Stock” means the Class A common stock, $0.01 par value per share, of Freescale. 
  
 “Freescale Class B Common Stock” means the Class B common
stock, $0.01 par value per share, of Freescale.  
  
 “Freescale Common Stock” means the common stock of Freescale, including the Freescale Class A Common Stock and the Freescale Class B Common Stock. 
  
 “Freescale Group” means Freescale, each Person that Freescale directly or indirectly controls (within the
meaning of the Securities Act) immediately after the Effective Date, and each other Person that becomes an Affiliate of Freescale after the Effective Date. 
  
 “Freescale Indebtedness” means the aggregate principal amount of total liabilities (whether long-term or short-term) for borrowed money
(including capitalized leases) of the Freescale Group collectively, as determined for purposes of its Financial Statements prepared in accordance with GAAP. 
  
 “Freescale Indemnified Parties” has the meaning set forth in Section 8.2 of this Agreement. 
  
 “Freescale Public Documents” has the meaning set forth in
Section 5.1(a)(viii) of this Agreement. 
  

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 “Freescale Shared Contract” means any Contract included in the SPS Assets relating in
part to the Motorola Business. 
  
 “Freescale Transfer
Agent” means the transfer agent and registrar for the Freescale Class A Common Stock. 
  
 “Freescale Transition Services Agreement” means the Transition Services Agreement entered into by and between Motorola and Freescale effective as of the Effective Date, pursuant to which one or more
members of the Motorola Group will provide certain transition services to one or more members of the Freescale Group, as such Freescale Transition Services Agreement may be amended from time to time. 
  
 “Freescale Voting Stock” has the meaning set forth in
Section 5.2 of this Agreement. 
  
 “Freescale’s
Auditors” has the meaning set forth in Section 5.1(b)(i) of this Agreement. 
  
 “GAAP” means U.S. generally accepted accounting principles, consistently applied. 
  
 “Global Reorganization and Restructuring Plan” means the Global Reorganization and Restructuring Plan in substantially the form attached
to this Agreement as Exhibit A, pursuant to which certain Assets and Liabilities will be transferred between the parties and their Affiliates in connection with the Contribution. 
  
 “Group” means either the Motorola Group or the Freescale Group, as the context requires. 
  
 “Indemnified Party” has the meaning set forth in Section
8.3(a) of this Agreement. 
  
 “Indemnifying
Party” has the meaning set forth in Section 8.3(a) of this Agreement. 
  
 “Information” means information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports,
records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including
attorney work product), and other technical, financial, employee or business information or data. 
  
 “Intellectual Property” has the meaning set forth in the Intellectual Property Assignment Agreement. 
  
 “Intellectual Property Assignment Agreement” means that
certain Intellectual Property Assignment Agreement entered into by and between Motorola and Freescale effective as of the Effective Date, as such Intellectual Property Assignment Agreement may be amended from time to time. 
  
 “Intellectual Property License Agreement” means that certain
Intellectual Property License Agreement entered into by and between Motorola and Freescale effective as of the Effective Date, as such Intellectual Property License Agreement may be amended from time to time. 
  
 “Intended Transferee” has the meaning set forth in Section
2.5(b) of this Agreement. 
  

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 “Intended Transferor” has the meaning set forth in Section 2.5(b) of this Agreement.

  
 “Inter-Group Indebtedness” means indebtedness
for borrowed funds between a member of the Motorola Group and a member of the Freescale Group as set forth on the Motorola Treasury capitalization plan. 
  
 “IPO” has the meaning set forth in the Recitals to this Agreement. 
  
 “IPO Registration Statement” means the registration statement on Form S-1 (SEC File No. 111250) as filed by
Freescale with the SEC in connection with the IPO, together with all amendments and supplements thereto. 
  
 “IPO Settlement Date” means the date on which the First Time of Delivery (as defined in the Underwriting Agreement) occurs. 

 
 “Iridium Claims” means any Liability in respect of any
governmental, judicial or adversarial proceeding, litigation, arbitration, dispute, claim, cause of action or investigation, relating to the Iridium satellite communications business, including without limitation Freeland v. Iridium World
Communications, Inc., et al., M&C Partners III v. Galvin, et al., Statutory Committee of Unsecured Creditors v. Motorola, Inc. and the proceedings relating to the private criminal complaint and the civil suit brought by Iridium India Telecom
Ltd. against Motorola, Inc., et al. 
  
 “Iridium
Data” means any data, disk or any other Information relating to the Iridium satellite communications business, including, but without limitation, data located on mainframe systems IBM 9672-Y36 and a 9672-R36 on enterprise storage server IBM
2105 Model F20 DASD with any of the following volume identification numbers: PCIC40, PDAB02, PDAB03, PDAB04, PDAB06, PDAB07, PDAB08, PDAB55, PDAB57, PDAB58, PDB201, PDB204, PDB205, PDBT00, PMIG40, PPRV60, PPRV61, PPRV62, PPRV63, PPRV64, PPRV65,
PPRV66, PPRV67, PPRV68, PPRV69, PPRV6A, PPRV6B, PPRV6C, PPRV6D, PPRV6E, PPRV6F, PPRV6G, PPRV6H, PPRV6I, PPRV6J, PPRV6K, PPRV6L, PPRV6M, PPRV6N, PPRV6O, PPRV6P, PPRV6Q, PPRV6R, PPRV6S, PPRV6T, PPRV6U, PPRV6V, PPRV6W, PPRV6X, PPRV6Y, PPRV6Z, PPRV70,
PPRV71, PPRV72, PPRV73, PPRV74, PPRV75, PPRV76, PPRV77, PPRV78, PPRV79, PPRV7A, PPRV7B, PPRV7C, PPRV7D, PPRV7E, PPRV7F, PPRV7G, PPRV7H, PPRV7I, PPRV7J, PPRV7K, PPRV7L, PPRV7M, PPRV7N, PPRV7O, PPRV7P, PPRV7Q, PPRV7R, PPRV7S, PPRV7T, PPRV7U, SGEGT1,
SGEGT2, SGEGT3 and SGEGT4. 
  
 “IRS” means the
United States Internal Revenue Service. 
  
 “Key Ancillary
Agreements” means each of the Employee Matters Agreement, the Freescale Transition Services Agreement, the Intellectual Property Assignment Agreement, the Intellectual Property License Agreement, the Motorola Transition Services Agreement,
the Registration Rights Agreement and the Tax Sharing Agreement, including any exhibits, schedules, attachments, tables or other appendices thereto. 
  
 “Liabilities” means debts, liabilities (including Environmental Liabilities), guarantees, assurances, commitments and obligations of any
nature or description, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without
limitation, whether arising out of (i) any Contract or tort based on negligence or strict liability or (ii) any act or failure to act by any past or present Representative, whether or not such act or failure to act was 

  

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within such Representative’s authority), and whether or not the same would be required by GAAP to be reflected in financial statements or disclosed in
the notes thereto. 
  
 “Motorola” has the meaning
set forth in the preamble to this Agreement. 
  
 “Motorola
Annual Statements” has the meaning set forth in Section 5.1(b)(ii) of this Agreement. 
  
 “Motorola Business” means the businesses or operations of the Motorola Group other than the SPS Business. 
  
 “Motorola Common Stock” means the common stock, par value $3.00 per share, of Motorola. 
  
 “Motorola Credit Agreement” means that certain Motorola,
Inc. Multi-Year Credit Agreement dated as of May 30, 2002 entered into between Motorola and the lenders party thereto, as the same may be amended or replaced from time to time. 
  
 “Motorola Disclosure Portions” means all material set forth in, or incorporated by reference into, the IPO
Registration Statement to the extent relating exclusively to (i) the Motorola Group, (ii) the Motorola Business, (iii) Motorola’s intentions with respect to the Distribution, or (iv) the terms of the Distribution, including, without limitation,
the form, structure and terms of any transaction(s) and/or offering(s) to effect the Distribution and the timing of and conditions to the consummation of the Distribution. 
  
 “Motorola Group” means Motorola and each Person that is an Affiliate of Motorola (other than any member of
the Freescale Group) immediately after the Effective Date, and each other Person that becomes an Affiliate of Motorola after the Effective Date. 
  
 “Motorola Indemnified Parties” has the meaning set forth in Section 8.1 of this Agreement. 
  
 “Motorola Liabilities” means the Liabilities of Motorola
other than the SPS Liabilities. 
  
 “Motorola Public
Filings” has the meaning set forth in Section 5.1(a)(xii) of this Agreement. 
  
 “Motorola Shared Contract” means any Contract relating in part to the SPS Business not included in the SPS Assets. 
  
 “Motorola Transition Services Agreement” means the Transition Services Agreement entered into by and
between Motorola and Freescale effective as of the Effective Date, pursuant to which one or more members of the Freescale Group will provide certain transition services to one or more members of the Motorola Group, as such Motorola Transition
Services Agreement may be amended from time to time. 
  
 “Motorola’s Auditors” has the meaning set forth in Section 5.1(b)(ii) of this Agreement. 
  
 “Non-controlling Party” has the meaning set forth in Section 8.3(d)(ii) of this Agreement. 
  
 “Ordinary Course of Business” means the ordinary course of
the SPS Business as conducted by Motorola and its Subsidiaries prior to the Effective Date consistent with historical custom and practice during normal day-to-day operations and not requiring any special authorization of any nature. 
  
 “Owning Party” has the meaning set forth in Section 6.2 of
this Agreement. 
  

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 “Person” means an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency, or political subdivision thereof. 
  
 “Possessor” has the meaning set forth in Section 6.3 of this Agreement. 
  
 “Quarterly Financial Statements” has the meaning set forth
in Section 5.1(a)(iv) of this Agreement. 
  
 “Record
Date” means the close of business on the date to be determined by Motorola’s Board of Directors as the record date for determining the stockholders of Motorola entitled to receive shares of Freescale Common Stock pursuant to the
Distribution. 
  
 “Registration Rights Agreement”
means the Registration Rights Agreement to be entered into between Motorola and Freescale prior to the IPO, as such Registration Rights Agreement may be amended from time to time. 
  
 “Regulation S-K” means Regulation S-K of the General Rules and Regulations promulgated by the SEC pursuant
to the Securities Act. 
  
 “Regulation S-X” means
Regulation S-X of the General Rules and Regulations promulgated by the SEC pursuant to the Securities Act. 
  
 “Representatives” means, with respect to any Person, any of such Person’s directors, officers, employees, agents, consultants,
advisors, accountants or attorneys.  
  
 “Requestor” has the meaning set forth in Section 6.3 of this Agreement. 
  
 “Retention Period” has the meaning set forth in Section 6.4 of this Agreement. 
  
 “SEC” means the United States Securities and Exchange
Commission or any successor agency. 
  
 “Securities
Act” means the Securities Act of 1933, as amended from time to time, together with the rules and regulations promulgated thereunder. 
  
 “SPS Assets” means all of Motorola’s and its Subsidiaries’ right, title and interest in and to: 
  
 (i) any and all Assets of Motorola and its Subsidiaries that
are used exclusively or held for use exclusively in the SPS Business; and 
  
 (ii) any and all Assets that are expressly listed, scheduled or otherwise clearly described in a Contribution Agreement or any other Ancillary Agreement as Assets to be transferred to Freescale or any other member of
the Freescale Group. 
  
 “SPS Business” means (i)
the businesses and operations conducted by the Semiconductor Products Sector of Motorola and its Affiliates (including, for purposes of this definition, any member of the Freescale Group) prior to the Effective Date, including as described in the
IPO Registration Statement, and (ii) except as otherwise expressly provided in this Agreement, any terminated, divested or discontinued businesses or operations that at the time of such termination, divestiture or discontinuation related to the SPS
Business (as described in the foregoing clause (i)) as then conducted. 
  

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 “SPS Liabilities” means the following: 
  
 (i) any and all Liabilities to the extent arising out of or
relating to the SPS Business or the SPS Assets, in each case whether such Liabilities arise or accrue prior to, on or after the Effective Date (other than Tax-related Liabilities which are specifically retained by Motorola under the Tax Sharing
Agreement and employee-related Liabilities which are specifically retained by Motorola under the Employee Matters Agreement); 
  
 (ii) any and all Liabilities to the extent arising out of or relating to the operation of any business conducted by any member of the
Freescale Group at any time after the Effective Date; 
  
 (iii) any and all Liabilities that are expressly listed, scheduled or otherwise clearly described in a Contribution Agreement or any other Ancillary Agreement as Liabilities to be assumed by Freescale or any member of the Freescale Group;
and 
  
 (iv) all obligations of the Freescale
Group under or pursuant to this Agreement, any Ancillary Agreement or any other instrument entered into in connection herewith or therewith. 
  
 “Steering Committee” has the meaning set forth in Section 9.3(a)(i) of this Agreement. 
  
 “Subsidiary” means with respect to any specified Person, any
corporation or other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or indirectly, more than fifty percent (50%) of the stock or other equity interest entitled to vote on the election of the members to the
board of directors or similar governing body; provided, however, that unless the context otherwise requires, references to Subsidiaries of Motorola will not include the entities that will be transferred to Freescale or other members of
the Freescale Group pursuant to this Agreement, including, without limitation, the entities listed on Exhibit 21.1 to the IPO Registration Statement, whether the transfer of such entities occurs prior to or after the Effective Date. 
  
 “Tax” and “Taxes” have the meanings set
forth in the Tax Sharing Agreement. 
  
 “Tax
Advisor” has the meaning set forth in the Tax Sharing Agreement. 
  
 “Tax Control” means the definition of “control” set forth in Section 368(c) of the Code. 
  
 “Tax-Free Status” has the meaning set forth in the Tax Sharing Agreement. 
  
 “Tax Sharing Agreement” means that certain Tax Sharing Agreement entered into by and between Motorola and
Freescale effective as of the Effective Date, as such Tax Sharing Agreement may be amended from time to time. 
  
 “Third-Party Claim” has the meaning set forth in Section 8.3(d)(i) of this Agreement. 
  
 “Underwriters” means the managing underwriters for the IPO
as described in the IPO Registration Statement. 
  
 “Underwriting Agreement” means the Underwriting Agreement between Motorola, Freescale and the Underwriters relating to the IPO, as amended from time to time. 
  

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 ARTICLE 2 
 CONTRIBUTION AND ASSUMPTION 
  
 Section 2.1 Contribution of SPS Assets. Unless otherwise provided in this Agreement or in any Ancillary Agreement, on the Effective Date, Motorola will (and Motorola will cause its applicable Subsidiaries to) assign, transfer and
convey to Freescale and its applicable Subsidiaries, and Freescale will (and Freescale will cause its applicable Subsidiaries to) receive and accept from Motorola and its applicable Subsidiaries, all of Motorola’s and its applicable
Subsidiaries’ right, title and interest in and to the SPS Assets. Such assignments, transfers and conveyances will be effective at such times as provided in each respective Ancillary Agreement and will be subject to the terms and conditions of
this Agreement and any applicable Ancillary Agreement. 
  
 Section
2.2 Assumption of Liabilities. Unless otherwise provided in this Agreement or in any Ancillary Agreement, on the Effective Date, Freescale will (and Freescale will cause its applicable Subsidiaries to) assume, and on a timely basis pay,
perform, satisfy and discharge the SPS Liabilities in accordance with their respective terms. Freescale and its applicable Subsidiaries will be responsible for all SPS Liabilities, regardless of (a) when or where such Liabilities arose or arise, (b)
whether the facts on which they are based occurred on, prior to or subsequent to the Effective Date, (c) where or against whom such Liabilities are asserted or determined, (d) whether asserted or determined on, prior to or subsequent to the
Effective Date, or (e) whether arising from or alleged to arise from negligence, recklessness, violation of law, fraud or misrepresentation (each, a “Bad Act”) by any member of the Motorola Group, the Freescale Group or any of their
respective past or present Representatives; provided, however, that this clause 2.2(e) will not limit Freescale’s right to make a claim against a Motorola Group member for Damages suffered by it to the extent that such Damages are
a direct result of a Bad Act committed by a Motorola Group member subsequent to the Effective Date; provided further, however, that Freescale’s right to make such a claim may otherwise be limited in any Ancillary Agreement.
Such assumptions of SPS Liabilities will be effective at such times as provided in each respective Ancillary Agreement and will be subject to the terms and conditions of this Agreement and any applicable Ancillary Agreement. 
  
 Section 2.3 Effective Date; Deliveries. In furtherance of the
assignment, transfer and conveyance of the SPS Assets and the assumption of the SPS Liabilities as set forth in this Agreement and the Ancillary Agreements, unless otherwise provided in this Agreement or in any Ancillary Agreement, on the Effective
Date, the parties will execute and deliver, and they will cause their respective Subsidiaries and Representatives, as applicable, to execute and deliver: (a) each of the Contribution Agreements and other Ancillary Agreements; (b) such bills of sale,
stock powers, certificates of title, assignments of Contracts, subleases and other instruments of transfer, conveyance and assignment as, and to the extent, necessary or convenient to evidence the transfer, conveyance and assignment to Freescale
(or, as applicable, its Subsidiaries) of all of Motorola’s (or, as applicable, its Subsidiaries’) right, title and interest in and to the SPS Assets; and (c) such assumptions of Contracts and other instruments of assumption as, and to the
extent, necessary or convenient to evidence the valid and effective assumption of the SPS Liabilities by Freescale (or, as applicable, its Subsidiaries). 
  
 Section 2.4 No Representations or Warranties. Freescale (on behalf of itself and each member of the Freescale Group) acknowledges and agrees that,
except as expressly set forth in this Agreement or any Ancillary Agreement, (a) no member of the Motorola Group is making any representations or warranties in this Agreement or any Ancillary Agreement, express or implied, as to the condition,
quality, merchantability or fitness of any SPS Asset transferred pursuant to this Agreement, any Ancillary Agreement or any other agreement contemplated hereby or thereby, (b) all such SPS Assets will be transferred on an “as is,”
“where is” basis (and in the case of any real property, by means of a quitclaim or similar form deed or conveyance), and (c) Freescale and its Affiliates will bear the economic and legal risks that any conveyance will prove to be
insufficient to vest in them good and marketable title, 

  

 10 

 
free and clear of any security interest, pledge, lien, charge, claim or other encumbrance of any nature whatsoever. 
  
 Section 2.5 Transfers Not Effected On the Effective Date. 

  
 (a) The parties acknowledge and agree that
some of the transfers contemplated by this Article 2 may not be effected on the Effective Date due to the inability of the parties to obtain necessary consents or approvals or the inability of the parties to take certain other actions necessary to
effect such transfers on the Effective Date. To the extent any transfers contemplated by this Article 2 have not been fully effected on the Effective Date, Motorola and Freescale will cooperate and use commercially reasonable efforts (and will cause
the applicable members of its respective Group to use such efforts) to obtain any necessary consents or approvals or take any other actions necessary to effect such transfers as promptly as practicable following the Effective Date. 

  
 (b) Nothing in this Agreement will be deemed
to require the transfer or assignment of any Contract or other Asset by Motorola or one of its Subsidiaries (an “Intended Transferor”) to Freescale or one of its Subsidiaries (an “Intended Transferee”) to the extent
that such transfer or assignment would constitute a material breach of such Contract or cause forfeiture or loss of such Asset; provided, however, that even if such Contract or other Asset cannot be so transferred or assigned, such
Contract or other Asset will be deemed a SPS Asset solely for purposes of determining whether any Liability is a SPS Liability.  
  
 (c) If an attempted assignment would be ineffective or would impair an Intended Transferee’s rights under any such SPS Asset so that
the Intended Transferee would not receive all such rights, then the parties will use commercially reasonable efforts to provide to, or cause to be provided to, the Intended Transferee, to the extent permitted by law, the rights of any such SPS Asset
and take such other actions as may reasonably be requested by the other party in order to place the Intended Transferee, insofar as reasonably possible, in the same position as if such SPS Asset had been transferred as contemplated hereby. In
connection therewith, (i) the Intended Transferor will promptly pass along to the Intended Transferee when received all benefits derived by the Intended Transferor with respect to any such SPS Asset, and (ii) the Intended Transferee will pay,
perform and discharge on behalf of the Intended Transferor all of the Intended Transferor’s obligations with respect to any such SPS Asset in a timely manner and in accordance with the terms thereof which it may do without breach. If and when
such consents or approvals are obtained or such other required actions have been taken, the transfer of the applicable SPS Asset will be effected in accordance with the terms of this Agreement and any applicable Ancillary Agreement. 

  
 Section 2.6 Shared Contracts. The parties agree as
follows: 
  
 (a) At the written request of
Freescale, Motorola will, and will cause other members of the Motorola Group to, to the extent permitted by the applicable Motorola Shared Contract and applicable law, make available to Freescale or applicable members of the Freescale Group the
benefits and rights under the Motorola Shared Contracts (except where the benefits or rights under such Motorola Shared Contracts are specifically provided pursuant to an Ancillary Agreement) which are substantially equivalent to the benefits and
rights enjoyed by the Motorola Group under each Motorola Shared Contract for which such request is made by Freescale, to the extent such benefits relate to the SPS Business; provided, however, that the applicable members of the
Freescale Group will assume and discharge (or promptly reimburse Motorola for) the obligations and liabilities under the relevant Motorola Shared Contracts associated with the benefits and rights so made available to them. 
  

 11 

 (b) At the written request of Motorola, Freescale will, and will cause other members of
the Freescale Group to, to the extent permitted by the applicable Freescale Shared Contract and applicable law, make available to Motorola or applicable members of the Motorola Group the benefits and rights under the Freescale Shared Contracts
(except where the benefits or rights under such Freescale Shared Contracts are specifically provided pursuant to an Ancillary Agreement) which are substantially equivalent to the benefits and rights enjoyed by the Freescale Group under each
Freescale Shared Contract for which such request is made by Motorola, to the extent such benefits relate to the Motorola Business; provided, however, that the applicable members of the Motorola Group will assume and discharge (or
promptly reimburse Freescale for) the obligations and liabilities under the relevant Freescale Shared Contracts associated with the benefits and rights so made available to them. 
  
 The parties’ rights and obligations pursuant to this Section 2.6 will terminate upon the earliest to occur of (i) the
Distribution Date, (ii) the termination of Motorola’s obligation to effect the Distribution pursuant to Section 9.14(b), and (iii) with respect to any Motorola Shared Contract or Freescale Shared Contract in particular, such time that the
arrangement pursuant to this Section 2.6 is no longer permitted thereunder. 
  
 Section 2.7 Inter-Group Indebtedness. On or prior to the IPO Settlement Date, each party will repay, and each party will cause each of its Subsidiaries to repay, as applicable, its respective Inter-Group
Indebtedness in accordance with the terms of such Inter-Group Indebtedness. 
  
 Section 2.8 Global Reorganization and Restructuring Plan. In connection with the Contribution, each of Motorola and Freescale will take, and each party will cause each member of its respective Group to take,
such action as reasonably necessary to consummate the transactions contemplated by the Global Reorganization and Restructuring Plan (whether prior to or after the Effective Date). 
  
 ARTICLE 3 
 THE IPO 
  
 Section 3.1 Transactions Prior to
the IPO. Subject to the conditions hereof, Motorola and Freescale will use their commercially reasonable efforts to consummate the IPO, including, without limitation, by taking the actions specified in this Section 3.1. 
  
 (a) Freescale will file such amendments or supplements to
the IPO Registration Statement as may be necessary in order to cause the IPO Registration Statement to become and remain effective as required by applicable law or by the Underwriters, including, without limitation, filing such amendments and
supplements thereto as may be required by the Underwriting Agreement, the SEC or applicable securities laws. Motorola and Freescale will also cooperate in preparing, filing with the SEC and causing to become effective a registration statement
registering the Freescale Class A Common Stock under the Exchange Act, and any registration statements or amendments thereto which are required to reflect the establishment of, or amendments to, any employee benefit and other plans necessary or
appropriate in connection with the IPO, the Distribution or the other transactions contemplated by this Agreement and the Ancillary Agreements. 
  
 (b) Freescale and Motorola will enter into the Underwriting Agreement, in form and substance reasonably satisfactory to each party, and
each party will comply with its respective obligations thereunder. 
  

 12 

 (c) Freescale will use its commercially reasonable efforts to take all such action as may
be necessary or appropriate under applicable state securities and blue sky laws of the United States (and any comparable laws under any foreign jurisdictions) in connection with the IPO. 
  
 (d) Freescale will prepare, file and use commercially reasonable efforts to seek to make effective, an
application for listing of the Freescale Class A Common Stock to be issued in the IPO on the New York Stock Exchange, subject to official notice of issuance. 
  

(e) Freescale will participate in the preparation of materials and presentations that Motorola and the Underwriters will deem necessary
or desirable. 
  
 (f) Freescale will cooperate in
all respects with Motorola in connection with the pricing and timing of the Freescale Class A Common Stock to be issued in the IPO and will, at Motorola’s direction, promptly take any and all actions necessary or desirable to consummate the IPO
as contemplated by the IPO Registration Statement and the Underwriting Agreement. 
  
 Section 3.2 Proceeds of the IPO;Consideration for SPS Assets. The IPO will be a primary offering of Freescale Class A Common Stock, and the net proceeds of the IPO will be used as described in the IPO
Registration Statement in the section entitled “Use of Proceeds”. The contribution or other transfer of SPS Assets by Motorola to Freescale in connection with the Contribution will be in exchange for (a) the conversion of the Freescale
Common Stock held by Motorola into shares of Freescale Class B Common Stock such that Motorola will own all of the outstanding Freescale Class B Common Stock immediately following the consummation of the IPO, (b) the distribution to Motorola of a
portion of the IPO proceeds and Freescale Borrowing proceeds, and (c) the assumption by Freescale of SPS Liabilities. Motorola intends to transfer such IPO proceeds and Freescale Borrowing proceeds received by Motorola from Freescale to
Motorola’s creditors in retirement of outstanding third-party indebtedness. 
  
 Section 3.3 Conditions Precedent to Consummation of the IPO. The obligations of the parties to consummate the IPO will be subject to such conditions as Motorola will determine in its sole and absolute
discretion, which conditions will be for the sole benefit of Motorola, may be waived by Motorola in its sole and absolute discretion, and any determination by Motorola regarding the satisfaction or waiver of any of such conditions will be
conclusive. Such conditions will include, without limitation, the following: 
  
 (a) The IPO Registration Statement will have been declared effective by the SEC, and there will be no stop order in effect with respect thereto and no proceeding for that purpose will have been instituted by the SEC;

  
 (b) The actions and filings with regard to
state securities and blue sky laws of the United States (and any comparable laws under any foreign jurisdictions) referred to in Section 3.1 will have been taken and, where applicable, have become effective or been accepted; 
  
 (c) The Freescale Class A Common Stock to be issued in the
IPO will have been accepted for listing on the New York Stock Exchange, on official notice of issuance; 
  
 (d) Freescale will have entered into the Underwriting Agreement and all conditions to the obligations of Freescale and the Underwriters
thereunder will have been satisfied or waived; 
  
 (e) Motorola will be satisfied in its sole and absolute discretion that (i) it will possess Tax Control of Freescale immediately following the consummation of the IPO, (ii) all other matters regarding the Tax-Free Status will, to the extent
applicable as of the time the IPO is consummated, be 

  

 13 

 
satisfied or can reasonably be anticipated to be satisfied, and (iii) there will be no event or condition that may cause any of such conditions not to be
satisfied as of the time of the Distribution or thereafter; 
  
 (f) No order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the IPO or any of the other transactions contemplated
by this Agreement or any Ancillary Agreement will be in effect; 
  
 (g) Motorola will have determined that the terms of the IPO, including the timing and pricing thereof, and other material matters in connection therewith, are acceptable to Motorola; 
  
 (h) Freescale will have incurred the Freescale Borrowing on
terms and with lender(s) acceptable to Motorola; and 
  
 (i) This Agreement will not have been terminated. 
  
 Section 3.4 Conversion of Outstanding Freescale Common Stock into Freescale Class B Common Stock. Prior to the consummation of the IPO, Motorola and Freescale will each take all actions (including, without limitation, such actions
that are required to effect the adoption by Freescale of an amended and restated certificate of incorporation) that Motorola determines, in its sole discretion, may be required to provide for the conversion of the issued and outstanding shares of
Freescale Common Stock held by Motorola as of the date hereof into a number of shares of Freescale Class B Common Stock such that Motorola possesses Tax Control of Freescale at all times before, at the time of, and immediately following, the
consummation of the IPO. 
  
 ARTICLE 4 
 THE DISTRIBUTION 
  
 Section 4.1 The Distribution. Motorola intends, following the consummation of the IPO, to complete the Distribution by December 31, 2004. Motorola
will, in its sole and absolute discretion, determine the date of the consummation of the Distribution and all terms of the Distribution, including without limitation, the form, structure and terms of any transaction(s) and/or offering(s) to effect
the Distribution and the timing of and conditions to the consummation of the Distribution. In addition, Motorola may, at any time and from time to time until the completion of the Distribution, modify or change the terms of the Distribution,
including, without limitation, by accelerating or delaying the timing of the consummation of all or part of the Distribution. Freescale will cooperate with Motorola in all respects to accomplish the Distribution and will, at Motorola’s
direction, promptly take any and all actions necessary or desirable to effect the Distribution, including, without limitation, to the extent necessary, the registration under the Securities Act and the Exchange Act of the Freescale Common Stock on
an appropriate registration form or forms to be designated by Motorola. Motorola will select any investment banker(s) and manager(s) in connection with the Distribution, as well as any financial printer, solicitation and/or exchange agent and
financial, legal, accounting and other advisors for Motorola, provided, however, that nothing in this Agreement will prohibit Freescale from engaging (at its own expense) its own financial, legal, accounting and other advisors in
connection with the Distribution. 
  
 Section 4.2 Actions Prior
to the Distribution. In connection with the Distribution, the parties will take the actions set forth in this Section 4.2. 
  
 (a) Motorola and Freescale will prepare and mail, prior to any Distribution Date, to the holders of Motorola Common Stock, such
information concerning Freescale and the Distribution and such other matters as Motorola reasonably determines and as may be required by law. Motorola and Freescale will prepare, and Freescale will, to the extent required by applicable law, file
with the SEC any 

  

 14 

 
such documentation that Motorola determines is necessary or desirable to effect the Distribution, and Motorola and Freescale will each use its commercially
reasonable efforts to obtain all necessary approvals from the SEC with respect thereto as soon as practicable. 
  
 (b) Freescale will use its commercially reasonable efforts to take all such action as may be necessary or desirable under applicable state
securities and blue sky laws of the United States (and any comparable laws under any foreign jurisdictions) in connection with the Distribution. 
  
 (c) Freescale will prepare, file and use commercially reasonable efforts to seek to make effective, an application for listing of the
Freescale Common Stock to be distributed in the Distribution on the New York Stock Exchange, subject to official notice of issuance. 
  
 (d) Freescale will take all reasonable steps necessary or desirable to cause the conditions set forth in Section 4.3 to be satisfied and
to effect the Distribution. 
  
 Section 4.3 Conditions to
Distribution. The consummation of the Distribution will be subject to the satisfaction, or waiver by Motorola in its sole and absolute discretion, of the conditions set forth in this Section 4.3. Any determination by Motorola regarding the
satisfaction or waiver of any of such conditions will be conclusive. For the avoidance of doubt, in the event that Motorola determines not to consummate the Distribution because one or more of such conditions is not satisfied or for any other
reason, such determination by Motorola will not impact the effectiveness of the Contribution or the IPO. 
  
 (a) The receipt by Motorola, in form and substance satisfactory to it, of either, at its option and in its sole and absolute discretion, a
ruling by the IRS or an opinion from its Tax Advisor regarding the Tax-Free Status and such other matters, as it will determine to be necessary or advisable in its sole and absolute discretion. 
  
 (b) The receipt of any governmental approvals and material
consents necessary to consummate the Distribution, which approvals and consents will be in full force and effect. 
  
 (c) No order, injunction, decree or regulation issued by any court or agency of competent jurisdiction or other legal restraint or
prohibition preventing the consummation of the Distribution will be in effect and no other event outside the control of Motorola will have occurred or failed to occur that prevents the consummation of the Distribution. 
  
 (d) The actions and filings necessary or appropriate under
applicable securities laws in connection with the Distribution will have been taken or made, and, where applicable, have become effective or been accepted. 
  
 (e) The Freescale Common Stock to be distributed in the Distribution will have been accepted for listing on the New York Stock Exchange,
subject to official notice of issuance. 
  
 (f)
The receipt by Motorola, in form and substance satisfactory to it, of (i) an opinion from Delaware counsel, selected by Motorola in its sole and absolute discretion, regarding the appropriateness of the determination by the Motorola Board of
Directors that Motorola has sufficient surplus under Delaware law to permit the Distribution, (ii) an opinion from its financial advisor with respect to (A) the fairness, as of the date of such opinion, to holders of Motorola Common Stock, from a
financial point of view, of the Distribution, and (B) the ability of Motorola and Freescale, given their respective capital structures following the Distribution, to finance their respective operating and capital requirements through a specified
date based on conditions in the capital markets as of the date of such 

  

 15 

 
opinion, and (iii) appropriate certificates from Freescale and/or Freescale’s senior management with respect to factual matters required by the advisors
to render the opinions referenced in (i) and (ii). 
  
 Section 4.4
Certain Stockholder Matters. 
  
 (a)
Subject to Section 4.3 hereof, on or prior to the Distribution Date, Motorola will deliver to a distribution agent to be appointed by Motorola (the “Distribution Agent”) for the benefit of holders of record of Motorola Common Stock
on the Record Date, a single stock certificate, endorsed by Motorola in blank, representing all of the outstanding shares of Freescale Common Stock then owned by Motorola, and Motorola will instruct the Distribution Agent to deliver to the Freescale
Transfer Agent true, correct and complete copies of the stock and transfer records reflecting the holders of Motorola Common Stock entitled to receive shares of Freescale Common Stock in connection with the Distribution. Motorola will cause its
transfer agent to instruct the Distribution Agent to distribute on the Distribution Date or as soon as reasonably practicable thereafter the appropriate number of shares of Freescale Common Stock to each such holder or designated transferee(s) of
such holder. Motorola will cooperate, and will instruct the Distribution Agent to cooperate, with Freescale and the Freescale Transfer Agent, and Freescale will cooperate, and will instruct the Freescale Transfer Agent to cooperate, with Motorola
and the Distribution Agent, in connection with all aspects of the Distribution and all other matters relating to the issuance and delivery of certificates representing, or other evidence of ownership of, the shares of Freescale Common Stock to be
distributed to the holders of Motorola Common Stock in connection with the Distribution. 
  
 (b) Subject to Section 4.4(d), each holder of Motorola Common Stock on the Record Date (or such holder’s designated transferee(s))
will be entitled to receive in the Distribution a number of shares of Freescale Common Stock equal to the number of shares of Motorola Common Stock held by such holder on the Record Date, multiplied by a fraction, (i) the numerator of which is the
number of shares of Freescale Common Stock beneficially owned by Motorola or any other member of the Motorola Group on the Record Date, and (ii) the denominator of which is the number of Shares of Motorola Common Stock outstanding on the Record
Date. In the event that the Distribution consists of more than one class of Freescale Common Stock, each holder of Motorola Common Stock will receive shares of Freescale Common Stock, calculated as provided above, except that the calculation will be
performed separately for each such class of stock. 
  
 (c) Until such Freescale Common Stock is duly transferred in accordance with applicable law, Freescale will regard the Persons entitled to receive such Freescale Common Stock as record holders of Freescale Common Stock in accordance with
the terms of the Distribution without requiring any action on the part of such Persons. Freescale agrees that, subject to any transfers of such stock, (i) each such holder will be entitled to receive all dividends payable on, and exercise voting
rights and all other rights and privileges with respect to, the shares of Freescale Common Stock then held by such holder, and (ii) each such holder will be entitled, without any action on the part of such holder, to receive one or more certificates
representing, or other evidence of ownership of, the shares of Freescale Common Stock then held by such holder. 
  
 (d) Notwithstanding anything to the contrary in this Section 4.4, in the event that the Distribution is not made in the form of a pro rata
distribution of Freescale Common Stock to holders of Motorola Common Stock, the above provisions of this Section 4.4 will not apply to the Distribution. 
  

 16 

 ARTICLE 5 
 FINANCIAL AND OTHER COVENANTS 
  
 Section 5.1 Financial and Other Information. 
  
 (a) Financial Information. Freescale agrees that, for so long as Motorola is required to consolidate the results of operations and financial position of Freescale and any other members of the Freescale
Group or to account for its investment in Freescale under the equity method of accounting (determined in accordance with generally accepted accounting principles consistently applied and consistent with SEC reporting requirements): 
  
 (i) Disclosure of Financial Controls. Freescale will,
and will cause each other member of the Freescale Group to, maintain, as of and after the Effective Date, disclosure controls and procedures and internal control over financial reporting as defined in Exchange Act Rule 13a-15 promulgated under the
Exchange Act; Freescale will cause each of its principal executive and principal financial officers to sign and deliver certifications to Freescale’s periodic reports and will include the certifications in Freescale’s periodic reports, as
and when required pursuant to Exchange Act Rule 13a-14 and Item 601 of Regulation S-K; Freescale will cause its management to evaluate Freescale’s disclosure controls and procedures and internal control over financial reporting (including any
change in internal control over financial reporting) as and when required pursuant to Exchange Act Rule 13a-15; Freescale will disclose in its periodic reports filed with the SEC information concerning Freescale management’s responsibilities
for and evaluation of Freescale’s disclosure controls and procedures and internal control over financial reporting (including, without limitation, the annual management report and attestation report of Freescale’s independent auditors
relating to internal control over financial reporting) as and when required under Items 307 and 308 of Regulation S-K and other applicable SEC rules; and, without limiting the general application of the foregoing, Freescale will, and will cause each
other member of the Freescale Group to, maintain as of and after the Effective Date internal systems and procedures that will provide reasonable assurance that (A) the Financial Statements are reliable and timely prepared in accordance with GAAP and
applicable law, (B) all transactions of members of the Freescale Group are recorded as necessary to permit the preparation of the Financial Statements, (C) the receipts and expenditures of members of the Freescale Group are authorized at the
appropriate level within Freescale, and (D) unauthorized use or disposition of the assets of any member of the Freescale Group that could have material effect on the Financial Statements is prevented or detected in a timely manner. 
  
 (ii) Fiscal Year. Freescale will, and will cause each
member of the Freescale Group organized in the U.S. to, maintain a fiscal year that commences and ends on the same calendar days as Motorola’s fiscal year commences and ends, and to maintain monthly accounting periods that commence and end on
the same calendar days as Motorola’s monthly accounting periods commence and end. 
  
 (iii) Monthly Financial Reports. No later than ten (10) Business Days after the end of the first three (3) monthly accounting
periods of Freescale following the Effective Date Freescale will deliver to Motorola a consolidated income statement and balance sheet for Freescale for such period and an income statement and balance sheet for each Freescale Affiliate which is
consolidated with Freescale, as the case may be, in such format and detail as Motorola may request, and no later than twelve (12) Business Days after the end of the first three (3) monthly accounting periods of Freescale following the Effective Date
Freescale will deliver to Motorola a consolidated statement of cashflow for Freescale for such period and statement of cashflow for each Freescale Affiliate which is consolidated with Freescale, as the case may be, in such format and detail as
Motorola may request. No later than five (5) Business Days after the end of each monthly accounting period of Freescale thereafter (including the last monthly accounting period of Freescale of each fiscal year), Freescale will deliver to Motorola a
consolidated income statement, balance sheet and statement of cash flow for Freescale for such period and an income statement, balance sheet and statement of cash flow for each Freescale Affiliate which is consolidated with Freescale, as the case
may be, in such format and detail as Motorola may request. 
  

 17 

 (iv) Quarterly Financial Statements. As soon as practicable, and in any event no
later than the earlier of (x) ten business (10) days prior to the date on which Freescale is required to file a Form 10-Q or other document containing Quarterly Financial Statements (as defined below) with the SEC for each of the first three (3)
fiscal quarters in each fiscal year of Freescale and (y) five business (5) days prior to the date on which Motorola has notified Freescale that Motorola intends to file its Form 10-Q or other document containing quarterly financial statements with
the SEC, Freescale will deliver to Motorola drafts of (A) the consolidated financial statements of the Freescale Group (and notes thereto) for such periods and for the period from the beginning of the current fiscal year to the end of such quarter,
setting forth in each case in comparative form for each such fiscal quarter of Freescale the consolidated figures (and notes thereto) for the corresponding quarter and periods of the previous fiscal year and all in reasonable detail and prepared in
accordance with Article 10 of Regulation S-X and GAAP, and (B) a discussion and analysis by management of the Freescale Group’s financial condition and results of operations for such fiscal period, including, without limitation, an explanation
of any material period-to-period change and any off-balance sheet transactions, all in reasonable detail and prepared in accordance with Item 303(b) of Regulation S-K; provided, however, that Freescale will deliver such information at
such earlier time upon Motorola’s written request with thirty (30) days’ notice resulting from Motorola’s determination to accelerate the timing of the filing of its financial statements with the SEC. The information set forth in (A)
and (B) above is referred to in this Agreement as the “Quarterly Financial Statements.” No later than the earlier of (x) three (3) Business Days prior to the date Freescale publicly files the Quarterly Financial Statements
with the SEC or otherwise makes such Quarterly Financial Statements publicly available or (y) three (3) Business Days prior to the date on which Motorola has notified Freescale that Motorola intends to file the Motorola quarterly financial
statements with the SEC, Freescale will deliver to Motorola the final form of the Freescale Quarterly Financial Statements and certifications thereof by the principal executive and financial officers of Freescale in substantially the forms required
under SEC rules for periodic reports and in form and substance satisfactory to Motorola; provided, however, that Freescale may continue to revise such Quarterly Financial Statements prior to the filing thereof in order to make
corrections and non-substantive changes which corrections and changes will be delivered by Freescale to Motorola as soon as practicable, and in any event within eight (8) hours thereafter; provided, further, that Motorola’s and
Freescale’s financial Representatives will actively consult with each other regarding any changes (whether or not substantive) which Freescale may consider making to its Quarterly Financial Statements and related disclosures during the two (2)
Business Days immediately prior to any anticipated filing with the SEC, with particular focus on any changes which would have an effect upon Motorola’s financial statements or related disclosures. In addition to the foregoing, no Quarterly
Financial Statement or any other document which refers, or contains information not previously publicly disclosed with respect to the ownership of Freescale by Motorola, the separation of Freescale from Motorola or the Distribution will be filed
with the SEC or otherwise made public by any Freescale Group member without the prior written consent of Motorola. Notwithstanding anything to the contrary in this Section 5.1(a)(iv), Freescale will file its Quarterly Financial Statements with the
SEC on the same date that Motorola files the Motorola quarterly financial statements with the SEC unless otherwise required by applicable law. 
  
 (v) Annual Financial Statements. As soon as practicable, and in any event no later than the earlier of (x) ten business (10) days
prior to the date on which Freescale is required to file a Form 10-K or other document containing its Annual Financial Statements (as defined below) with the SEC and (y) ten business (10) days prior to the date on which Motorola has notified
Freescale that Motorola intends to file its Form 10-K or other document containing annual financial statements with the SEC, Freescale will deliver to Motorola (A) drafts of the consolidated financial statements of the Freescale Group (and notes
thereto) for such year, setting forth in each case in comparative form the consolidated figures (and notes thereto) for the previous fiscal year and all in reasonable detail and prepared in accordance with Regulation S-X and GAAP and (B) a
discussion and analysis by management of the Freescale Group’s financial condition and results of operations for such year, 

  

 18 

 
including, without limitation, an explanation of any material period-to-period change and any off-balance sheet transactions, all in reasonable detail and
prepared in accordance with Item 303(a) of Regulation S-K. The information set forth in (A) and (B) above is referred to in this Agreement as the “Annual Financial Statements.” Freescale will deliver to Motorola all revisions to
such drafts as soon as any such revisions are prepared or made. No later than the earlier of (x) five (5) Business Days prior to the date Freescale publicly files the Annual Financial Statements with the SEC or otherwise makes such Annual Financial
Statements publicly available or (y) five (5) Business Days prior to the date on which Motorola has notified Freescale that Motorola intends to file the Motorola annual financial statements with the SEC, Freescale will deliver to Motorola the final
form of the Freescale Annual Financial Statements and certifications thereof by the principal executive and financial officers of Freescale in substantially the forms required under SEC rules for periodic reports and in form and substance
satisfactory to Motorola; provided, however, that Freescale may continue to revise such Annual Financial Statements prior to the filing thereof in order to make corrections and non-substantive changes which corrections and changes will
be delivered by Freescale to Motorola as soon as practicable, and in any event within eight (8) hours thereafter; provided, further, that Motorola and Freescale financial Representatives will actively consult with each other regarding
any changes (whether or not substantive) which Freescale may consider making to its Annual Financial Statements and related disclosures during the three (3) Business Days immediately prior to any anticipated filing with the SEC, with particular
focus on any changes which would have an effect upon Motorola’s financial statements or related disclosures. In addition to the foregoing, no Annual Financial Statement or any other document which refers, or contains information not previously
publicly disclosed with respect, to the ownership of Freescale by Motorola, the separation of Freescale from Motorola or the Distribution will be filed with the SEC or otherwise made public by any Freescale Group member without the prior written
consent of Motorola. In any event, Freescale will deliver to Motorola, no later than three (3) days prior to the date that on which Motorola has notified Freescale that Motorola intends to file the Motorola annual financial statements with the SEC,
the final form of the Annual Financial Statements accompanied by an opinion thereon by Freescale’s independent certified public accountants. Notwithstanding anything to the contrary in this Section 5.1(a)(v), Freescale will file its Annual
Financial Statements with the SEC on the same date that Motorola files the Motorola annual financial statements with the SEC unless otherwise required by applicable law. 
  
 (vi) Affiliate Financial Statements. Freescale will deliver to Motorola all Quarterly and Annual
Financial Statements of each Freescale Affiliate which is itself required to file financial statements with the SEC or otherwise make such financial statements publicly available, with such financial statements to be provided in the same manner and
detail and on the same time schedule as those financial statements of Freescale required to be delivered to Motorola pursuant to this Section 5.1. 
  
 (vii) Conformance with Motorola Financial Presentation. All information provided by any Freescale Group member to Motorola or filed
with the SEC pursuant to Section 5.1(a)(iii) through (vi) inclusive will be consistent in terms of format and detail and otherwise with Motorola’s policies with respect to the application of GAAP and practices in effect on the Effective Date
with respect to the provision of such financial information by such Freescale Group member to Motorola (and, where appropriate, as presently presented in financial reports to Motorola’s Board of Directors), with such changes therein as may be
requested by Motorola from time to time consistent with changes in such accounting principles and practices. 
  
 (viii) Freescale Reports Generally. Each Freescale Group member that files information with the SEC will deliver to Motorola: (A)
substantially final drafts, as soon as the same are prepared, of (x) all reports, notices and proxy and information statements to be sent or made available by such Freescale Group member to its respective security holders, (y) all regular, periodic
and other reports to be filed or furnished under Sections 13, 14 and 15 of the Exchange Act (including Reports on Forms 10-K, 10-Q and 8-K and Annual Reports to Shareholders), and (z) all registration statements and 

  

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prospectuses to be filed by such Freescale Group member with the SEC or any securities exchange pursuant to the listed company manual (or similar
requirements) of such exchange (collectively, the documents identified in clauses (x), (y) and (z) are referred to in this Agreement as “Freescale Public Documents”), and (B) as soon as practicable, but in no event later than four
(4) Business Days (other than with respect to 8-Ks) prior to the earliest of the dates the same are printed, sent or filed, current drafts of all such Freescale Public Documents and, with respect to 8-Ks, as soon as practicable, but in no event
later than two (2) Business Days prior to the earliest of the dates the same are printed, sent or filed in the case of planned 8-Ks and as soon as practicable, but in no event less than 2 hours in the case of unplanned 8-Ks; provided,
however, that Freescale may continue to revise such Freescale Public Documents prior to the filing thereof in order to make corrections and non-substantive changes which corrections and changes will be delivered by Freescale to Motorola as
soon as practicable, and in any event within eight (8) hours thereafter; provided, further, that Motorola and Freescale financial Representatives will actively consult with each other regarding any changes (whether or not substantive)
which Freescale may consider making to any of its Freescale Public Documents and related disclosures prior to any anticipated filing with the SEC, with particular focus on any changes which would have an effect upon Motorola’s financial
statements or related disclosures. In addition to the foregoing, no Freescale Public Document or any other document which refers, or contains information not previously publicly disclosed with respect, to the ownership of Freescale by Motorola, the
separation of Freescale from Motorola or the Distribution will be filed with the SEC or otherwise made public by any Freescale Group member without the prior written consent of Motorola. 
  
 (ix) Budgets and Financial Projections. Freescale will, as promptly as practicable, deliver to
Motorola copies of all annual and other budgets and financial projections (consistent in terms of format and detail and otherwise required by Motorola) relating to Freescale on a consolidated basis and will provide Motorola an opportunity to meet
with management of Freescale to discuss such budgets and projections. 
  
 (x) Other Information. With reasonable promptness, Freescale will deliver to Motorola such additional financial and other information and data with respect to the Freescale Group and their business, properties,
financial positions, results of operations and prospects as from time to time may be reasonably requested by Motorola. 
  
 (xi) Press Releases and Similar Information. Freescale and Motorola will consult with each other as to the timing of their annual
and quarterly earnings releases and any interim financial guidance for a current or future period and will give each other the opportunity to review the information therein relating to the Freescale Group and to comment thereon. Motorola and
Freescale will make reasonable efforts to issue their respective annual and quarterly earnings releases at approximately the same time on the same date. No later than eight (8) hours prior to the time and date that a party intends to publish its
regular annual or quarterly earnings release or any financial guidance for a current or future period, such party will deliver to the other party copies of substantially final drafts of all press releases and other statements to be made available by
any member of that party’s Group to employees of any member of that party’s Group or to the public concerning any matters that could be reasonably likely to have a material financial impact on the earnings, results of operations, financial
condition or prospects of any Freescale Group member. In addition, prior to the issuance of any such press release or public statement that meets the criteria set forth in the preceding two sentences, the issuing party will consult with the other
party regarding any changes (other than typographical or other similar minor changes) to such substantially final drafts. Immediately following the issuance thereof, the issuing party will deliver to the other party copies of final drafts of all
press releases and other public statements. 
  
 (xii) Cooperation on Motorola Filings. Freescale will cooperate fully, and cause Freescale’s Auditors to cooperate fully, with Motorola to the extent requested by Motorola in the 

  

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preparation of Motorola’s public earnings or other press releases, Quarterly Reports on Form 10-Q, Annual Reports to Shareholders, Annual Reports on
Form 10-K, any Current Reports on Form 8-K and any other proxy, information and registration statements, reports, notices, prospectuses and any other filings made by Motorola with the SEC, any national securities exchange or otherwise made publicly
available (collectively, the “Motorola Public Filings”). Freescale agrees to provide to Motorola all information that Motorola reasonably requests in connection with any Motorola Public Filings or that, in the judgment of
Motorola’s legal department, is required to be disclosed or incorporated by reference therein under any law, rule or regulation. Freescale will provide such information in a timely manner on the dates requested by Motorola (which may be earlier
than the dates on which Freescale otherwise would be required hereunder to have such information available) to enable Motorola to prepare, print and release all Motorola Public Filings on such dates as Motorola will determine but in no event later
than as required by applicable law. Freescale will use its commercially reasonable efforts to cause Freescale’s Auditors to consent to any reference to them as experts in any Motorola Public Filings required under any law, rule or regulation.
If and to the extent requested by Motorola, Freescale will diligently and promptly review all drafts of such Motorola Public Filings and prepare in a diligent and timely fashion any portion of such Motorola Public Filing pertaining to Freescale.
Prior to any printing or public release of any Motorola Public Filing, an appropriate executive officer of Freescale will, if requested by Motorola, certify that the information relating to any Freescale Group member or the SPS Business in such
Motorola Public Filing is accurate, true, complete and correct in all material respects. Unless required by law, rule or regulation, Freescale will not publicly release any financial or other information which conflicts with the information with
respect to any Freescale Group member or the SPS Business that is included in any Motorola Public Filing without Motorola’s prior written consent. Prior to the release or filing thereof, Motorola will provide Freescale with a draft of any
portion of a Motorola Public Filing containing information relating to the Freescale Group and will give Freescale an opportunity to review such information and comment thereon; provided that Motorola will determine in its sole and absolute
discretion the final form and content of all Motorola Public Filings. 
  
 (b) Auditors and Audits; Annual Statements and Accounting. Freescale agrees that, for so long as Motorola is required to consolidate Freescale’s results of operations and financial position or to
account for its investment in Freescale under the equity method of accounting (in accordance with GAAP): 
  
 (i) Selection of Freescale Auditors. Unless required by law, Freescale will not select a different accounting firm than KPMG LLP
(or its affiliate accounting firms) (unless so directed by Motorola in accordance with a change by Motorola in its accounting firm) to serve as its (and the Freescale Affiliates’) independent certified public accountants
(“Freescale’s Auditors”) without Motorola’s prior written consent (which will not be unreasonably withheld); provided, however, that, to the extent any such Freescale Affiliates are currently using a
different accounting firm to serve as their independent certified public accountants, such Freescale Affiliates may continue to use such accounting firm provided such accounting firm is reasonably satisfactory to Motorola. 
  
 (ii) Audit Timing. Freescale will use its
commercially reasonable efforts to enable Freescale’s Auditors to complete their audit such that they will date their opinion on the Annual Financial Statements on the same date that Motorola’s independent certified public accountants
(“Motorola’s Auditors”) date their opinion on Motorola’s audited annual financial statements (the “Motorola Annual Statements”), and to enable Motorola to meet its timetable for the printing, filing and
public dissemination of the Motorola Annual Statements, all in accordance with Section 5.1(a) hereof and as required by applicable law. 
  
 (iii) Information Needed by Motorola. Freescale will provide to Motorola on a timely basis all information that Motorola reasonably
requires to meet its schedule for the preparation, 

  

 21 

 
printing, filing, and public dissemination of the Motorola Annual Statements in accordance with Section 5.1(a) hereof and as required by applicable law.
Without limiting the generality of the foregoing, Freescale will provide all required financial information with respect to the Freescale Group to Freescale’s Auditors in a sufficient and reasonable time and in sufficient detail to permit
Freescale’s Auditors to take all steps and perform all reviews necessary to provide sufficient assistance to Motorola’s Auditors with respect to information to be included or contained in the Motorola Annual Statements. 
  
 (iv) Access to Freescale Auditors. Freescale will
authorize Freescale’s Auditors to make available to Motorola’s Auditors both the personnel who performed, or are performing, the annual audit of Freescale and work papers related to the annual audit of Freescale, in all cases within a
reasonable time prior to Freescale’s Auditors’ opinion date, so that Motorola’s Auditors are able to perform the procedures they consider necessary to take responsibility for the work of Freescale’s Auditors as it relates to
Motorola’s Auditors’ report on Motorola’s statements, all within sufficient time to enable Motorola to meet its timetable for the printing, filing and public dissemination of the Motorola Annual Statements. 
  
 (v) Access to Records. If Motorola determines in good
faith that there may be some inaccuracy in a Freescale Group member’s financial statements or deficiency in a Freescale Group member’s internal accounting controls or operations that could materially impact Motorola’s financial
statements, at Motorola’s request, Freescale will provide Motorola’s internal auditors with access to the Freescale Group’s books and records so that Motorola may conduct reasonable audits relating to the financial statements provided
by Freescale under this Agreement as well as to the internal accounting controls and operations of the Freescale Group. 
  
 (vi) Notice of Changes. Subject to Section 5.1(a)(vii), Freescale will give Motorola as much prior notice as reasonably practicable
of any proposed determination of, or any significant changes in, Freescale’s accounting estimates or accounting principles from those in effect on the Effective Date. Freescale will consult with Motorola and, if requested by Motorola, Freescale
will consult with Motorola’s Auditors with respect thereto. Freescale will not make any such determination or changes without Motorola’s prior written consent if such a determination or a change would be sufficiently material to be
required to be disclosed in Freescale’s or Motorola’s financial statements as filed with the SEC or otherwise publicly disclosed therein. 
  
 (vii) Accounting Changes Requested by Motorola. Notwithstanding clause (vi) above, Freescale will make any changes in its
accounting estimates or accounting principles that are requested by Motorola in order for Freescale’s accounting practices and principles to be consistent with those of Motorola. 
  
 (viii) Special Reports of Deficiencies or Violations. Freescale will report in reasonable detail to
Motorola the following events or circumstances promptly after any executive officer of Freescale or any member of the Freescale Board of Directors becomes aware of such matter: (A) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably likely to adversely affect Freescale’s ability to record, process, summarize and report financial information; (B) any fraud, whether or not material, that involves
management or other employees who have a significant role in Freescale’s internal control over financial reporting; (C) any illegal act within the meaning of Section 10A(b) and (f) of the Exchange Act; and (D) any report of a material violation
of law that an attorney representing any Freescale Group member has formally made to any officers or directors of Freescale pursuant to the SEC’s attorney conduct rules (17 C.F.R. Part 205). 
  

 22 

 Section 5.2 Other Covenants. In addition to the other covenants contained in this Agreement and
the Ancillary Agreements, Freescale hereby covenants and agrees that, for so long as Motorola beneficially owns at least fifty percent (50%) of the total voting power of all classes of then outstanding capital stock of Freescale entitled to vote
generally in the election of directors (“Freescale Voting Stock”): 
  
 (a) Freescale will not, without the prior written consent of Motorola (which Motorola may withhold in its sole and absolute discretion),
take, or cause to be taken, directly or indirectly, any action, including making or failing to make any election under the law of any state, which has the effect, directly or indirectly, of restricting or limiting the ability of Motorola to freely
sell, transfer, assign, pledge or otherwise dispose of shares of Freescale Common Stock or would restrict or limit the rights of any transferee of Motorola as a holder of Freescale Common Stock. Without limiting the generality of the foregoing,
Freescale will not, without the prior written consent of Motorola (which Motorola may withhold in its sole and absolute discretion), take any action, or take any action to recommend to its stockholders any action, which would among other things,
limit the legal rights of, or deny any benefit to, Motorola as a Freescale stockholder either (i) solely as a result of the amount of Common Stock owned by Motorola or (ii) in a manner not applicable to Freescale stockholders generally. 

 
 (b) Freescale will not, without the prior written consent
of Motorola (which it may withhold in its sole and absolute discretion), issue any shares of Freescale Capital Stock or any rights, warrants or options to acquire Freescale Capital Stock (including, without limitation, securities convertible into or
exchangeable for Freescale Capital Stock), if after giving effect to such issuances and considering all of the shares of Freescale Capital Stock acquirable pursuant to such rights, warrants and options to be outstanding on the date of such issuance
(whether or not then exercisable), Motorola would own less than fifty percent (50%) of the Freescale Voting Stock. 
  
 (c) To the extent that Motorola is a party to any Contracts that provide that certain actions or inactions of Motorola Affiliates (which
for purposes of such Contract includes any member of the Freescale Group) may result in Motorola being in breach of or in default under such Contracts and Motorola has advised Freescale of the existence, and has furnished Freescale with copies, of
such Contracts (or the relevant portions thereof), Freescale will not take or fail to take, as applicable, and Freescale will cause the other members of the Freescale Group not to take or fail to take, as applicable, any actions that reasonably
could result in Motorola being in breach of or in default under any such Contract. The parties acknowledge and agree that from time to time Motorola may in good faith (and not solely with the intention of imposing restrictions on Freescale pursuant
to this covenant) enter into additional Contracts or amendments to existing Contracts that provide that certain actions or inactions of Motorola Subsidiaries or Affiliates (including, for purposes of this Section 5.2(c), members of the Freescale
Group) may result in Motorola being in breach of or in default under such Contracts. In such event, provided Motorola has notified Freescale of such additional Contracts or amendments to existing Contracts, Freescale will not thereafter take or fail
to take, as applicable, and Freescale will cause the other members of the Freescale Group not to take or fail to take, as applicable, any actions that reasonably could result in Motorola being in breach of or in default under any such additional
Contracts or amendments to existing Contracts. Motorola acknowledges and agrees that Freescale will not be deemed in breach of this Section 5.2(c) to the extent that, prior to being notified by Motorola of an additional Contract or an amendment to
an existing Contract pursuant to this Section 5.2(c), a Freescale Group member already has taken or failed to take one or more actions that would otherwise constitute a breach of this Section 5.2(c) had such action(s) or inaction(s) occurred after
such notification, provided that Freescale does not, after notification by Motorola, take any further action or fail to take any action that contributes further to such breach or default. Freescale agrees that any Information provided to it pursuant
to this Section 5.2(c) will constitute Information that is subject to Freescale’s obligations under Article 6. 
  

 23 

 Section 5.3 Covenants Regarding the Incurrence of Indebtedness. 
  
 (a) Freescale covenants and agrees that prior to the
consummation of the IPO, Freescale will not, and Freescale will not permit any other member of the Freescale Group to, without Motorola’s prior written consent (which Motorola may withhold in its sole and absolute discretion), directly or
indirectly, solicit, initiate or encourage any negotiations or discussions with respect to any offer or proposal for Freescale Indebtedness, other than for (i) the Freescale High Yield Notes and (ii) the Freescale Bank Facilities. 
  
 (b) Freescale covenants and agrees, that, notwithstanding
any other provision in this Agreement to the contrary, prior to the consummation of the IPO, Freescale will not, and Freescale will not permit any other member of the Freescale Group to, without Motorola’s prior written consent (which Motorola
may withhold in its sole and absolute discretion), directly or indirectly, incur any Freescale Indebtedness (other than Inter-Group Indebtedness). Freescale covenants and agrees that after the consummation of the IPO and through the Distribution
Date, Freescale will not, and Freescale will not permit any other member of the Freescale Group to, without Motorola’s prior written consent (which Motorola may withhold in its sole and absolute discretion), directly or indirectly, incur any
Freescale Indebtedness other than in accordance with the terms of the Freescale High Yield Notes and the Freescale Bank Facilities. 
  
 (c) Freescale hereby covenants and agrees that, for so long as Freescale constitutes a “Subsidiary” as such term is defined in
the Motorola Credit Agreement, Freescale will not, and Freescale will not permit any other member of the Freescale Group to, without Motorola’s prior written consent (which Motorola may withhold in its sole and absolute discretion), create,
incur, assume or suffer to exist any Freescale Indebtedness if the incurrence of such Freescale Indebtedness would cause Motorola to be in breach of or in default under any Contract the existence of which Motorola has advised Freescale and of which
Motorola has furnished Freescale a copy pursuant to Section 5.2(c), or if the incurrence of such Freescale Indebtedness could be reasonably likely to adversely impact the credit rating of any commercial Motorola indebtedness. 
  
 (d) In order to implement this Section 5.3, Freescale will
notify Motorola in writing at least forty-five (45) Business Days prior to the time it or any other member of the Freescale Group contemplates incurring any Freescale Indebtedness of its intention to do so and will either (i) demonstrate to
Motorola’s satisfaction that this Section 5.3 will not be violated by such proposed additional Freescale Indebtedness or (ii) obtain Motorola’s prior written consent to the incurrence of such proposed additional Freescale Indebtedness. Any
such written notification from Freescale to Motorola will include documentation of any existing Freescale Indebtedness and estimated Freescale Indebtedness after giving effect to such proposed incurrence of additional Freescale Indebtedness.
Motorola will have the right to verify the accuracy of such information and Freescale will cooperate fully with Motorola in such effort (including, without limitation, by providing Motorola with access to the working papers and underlying
documentation related to any calculations used in determining such information). 
  
 ARTICLE 6 
 ACCESS TO INFORMATION 
  
 Section 6.1 Restrictions on Disclosure of Information. 
  
 (a) Generally. Without limiting any rights or obligations under any other existing or future
agreement between the parties and/or any other members of their respective Group relating to confidentiality, for five (5) years after the Effective Date each party will, and each party will cause its respective Group members and its Representatives
to, hold in strict confidence, with at least the same 

  

 24 

 
degree of care that applies to Motorola’s confidential and proprietary Information pursuant to policies in effect as of the Effective Date, all
confidential and proprietary Information concerning the other Group that is either in its possession as of the Effective Date or furnished by the other Group or its respective Representatives at any time pursuant to this Agreement, any Ancillary
Agreement or the transactions contemplated hereby or thereby. Notwithstanding the foregoing, each party, its respective Group members and its Representatives, may disclose such Information to the extent that such party can demonstrate that such
Information is or was (i) in the public domain other than by the breach of this Agreement or by breach of any other agreement between or among the parties and/or any of their respective Group members relating to confidentiality, or (ii) lawfully
acquired from a third Person on a non-confidential basis or independently developed by, or on behalf of, such party by Persons who do not have access to, or descriptions of, any such Information. Each party will maintain, and will cause its
respective Group members and Representatives to maintain, policies and procedures, and develop such further policies and procedures as will from time to time become necessary or appropriate, to ensure compliance with this Section 6.1. 
  
 (b) Disclosure of Third Person Information. Freescale
acknowledges that it and other members of the Freescale Group may have in its or their possession confidential or proprietary Information of third Persons that was received under confidentiality or non-disclosure agreement with such third Person
while part of Motorola. Freescale will, and Freescale will cause its respective Group members and its Representatives to, hold in strict confidence the confidential and proprietary Information of third Persons to which any member of the Freescale
Group has access, in accordance with the terms of any agreements entered into prior to the Effective Date between members of the Motorola Group (whether acting through, on behalf of, or in connection with, the SPS Business) and such third Persons.

  
 Section 6.2 Legally Required Disclosure of Information.
If either party or any of its respective Group members or Representatives becomes legally required to disclose any Information (the “Disclosing Party”) that it is otherwise obligated to hold strict confidence pursuant to Section
6.1, such party will promptly notify the Person that owns the Information (the “Owning Party”) and will use all commercially reasonable efforts to cooperate with the Owning Party so that the Owning Party may seek a protective order
or other appropriate remedy and/or waive compliance with this Section 6.2. All expenses reasonably incurred by the Disclosing Party in seeking a protective order or other remedy will be borne by the Owning Party. If such protective order or other
remedy is not obtained, or if the Owning Party waives compliance with this Section 6.2, the Disclosing Party will (a) disclose only that portion of the Information which its legal counsel advises it is compelled to disclose or otherwise stand liable
for contempt or suffer other similar significant corporate censure or penalty, (b) use all commercially reasonable efforts to obtain reliable assurance requested by the Owning Party that confidential treatment will be accorded such Information, and
(c) promptly provide the Owning Party with a copy of the Information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such Information was disclosed. 
  
 Section 6.3 Access to Information. During the Retention Period (as
defined in Section 6.4 below), each party will cooperate with and afford, and will cause its respective Group members and Representatives to cooperate with and afford, to the other party reasonable access upon reasonable advance written request to
all Information (other than Information which is (a) protected from disclosure by the attorney-client privilege or work product doctrine, (b) proprietary in nature, (c) the subject of a confidentiality agreement between such party and a third Person
which prohibits disclosure to the other party, or (d) prohibited from disclosure under applicable law) owned by such party or one of its Group members or within such party’s or any of its respective Group member’s or Representative’s
possession which is created prior to the Distribution Date and which relates to the requesting party’s (the “Requestor”) business, assets or liabilities, and such access is reasonably required by the Requestor (i) to comply
with requirements imposed on the Requestor by any governmental authority, (ii) for use in any 

  

 25 

 
proceeding (except for a litigation matter between the parties or any of their respective Group members), (iii) to satisfy audit, accounting, Tax or similar
requirements, (iv) to obtain insurance, or (v) to comply with the Requestor’s obligations under this Agreement or any Ancillary Agreement. As used in this Agreement, “access” will mean the obligation of a party in possession of
Information (the “Possessor”) requested by the Requestor to exert its commercially reasonable efforts to locate all requested Information that is owned and/or possessed by Possessor or any respective Group members or
Representatives. The Possessor, at its own expense, will conduct a diligent search designed to identify all requested Information and will collect all such Information for inspection by the Requestor during normal business hours at the
Possessor’s place of business. Subject to such confidentiality and/or security obligations as the Possessor may reasonably deem necessary, the Requestor may have all requested Information duplicated at Requestor’s expense. Alternatively,
the Possessor may choose to deliver, at the Requestor’s expense, all requested Information to the Requestor in the form requested by the Requestor. The Possessor will notify the Requestor in writing at the time of delivery if such Information
is to be returned to the Possessor. In such case, the Requestor will return such Information when no longer needed to the Possessor at the Possessor’s expense. In connection with providing Information pursuant to this Section 6.3, each party
hereto will, upon the request of the other party and upon reasonable advance notice, make available during normal business hours its respective employees (and those employees of its respective Group members and Representatives, as applicable) to the
extent that they are reasonably necessary to discuss and explain all requested Information with and to the Requestor. 
  
 Section 6.4 Record Retention. Freescale will, and Freescale will cause each of the other Freescale Group members to, adopt and comply with a record
retention policy with respect to Information owned by or in the possession of the Freescale Group and which is created prior to the Distribution Date that is no less stringent than Motorola’s record retention policy in effect as of the
Effective Date or as Motorola may modify such policy during the three (3) year period subsequent to the Distribution Date, provided that Motorola notifies Freescale of any such modifications. Each party will, at its sole cost and expense, preserve
and retain all Information in its respective possession or control that the other party has the right to access pursuant to Section 6.3 or that it is required to preserve and retain in accordance with such record retention policy or for any longer
period as may be required by (a) any government agency, (b) any litigation matter, (c) applicable law, or (d) any Ancillary Agreement (as applicable, the “Retention Period”). If either party wishes to dispose of any Information
which it is obligated to retain under this Section 6.4 prior to the expiration of the Retention Period, then that party will first provide forty-five (45) days’ written notice to the other party, and the other party will have the right, at its
option but at the expense of the party that desires to dispose of such Information, upon prior written notice within such 45-day period, to take possession of such Information within ninety (90) days after the date of the notice provided pursuant to
this Section 6.4. Written notice of intent to dispose of such Information will include a description of the Information in detail sufficient to allow the other party to reasonably assess its potential need to retain such materials. 
  
 Section 6.5 Production of Witnesses. For no less than seven (7) years
after the Effective Date, each party will use commercially reasonable efforts, and will cause each of its respective Group members to use commercially reasonable efforts, to make available to each other, upon written request, its past and present
Representatives as witnesses to the extent that any such Representatives may reasonably be required (giving consideration to the business demands upon such Representatives) in connection with any legal, administrative or other proceedings in which
the requesting party may from time to time be involved. 
  
 Section 6.6 Reimbursement. Unless otherwise provided in this Article 6, each party providing access to Information or witnesses to the other party pursuant to Sections 6.3, 6.4 or 6.5 will be entitled to receive from the receiving
party, upon the presentation of invoices therefor, payment for all 

  

 26 

 
reasonable, out-of-pocket costs and expenses (excluding allocated compensation, salary and overhead expenses) as may be reasonably incurred in providing such
Information or witnesses. 
  
 Section 6.7 Other Agreements
Regarding Access to Information. The rights and obligations of the parties under this Article 6 are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information
set forth in this Agreement or any Ancillary Agreement. 
  
 Section 6.8 Acquisition of Freescale by another Person. In the event Freescale enters into an agreement with a third Person to sell all or any portion of the SPS Business, together with the Information related thereto, whether
pursuant to a stock or asset sale, merger or otherwise, Motorola will have the right to duplicate prior to any such disposition any Information held by Freescale that relates to either (a) the SPS Business as conducted through the Distribution Date
(or the date of the disposition to such third Person if the Distribution has not occurred), or (b) the transactions contemplated by this Agreement. Freescale covenants and agrees in connection with any such disposition (x) to provide Motorola not
less than sixty (60) days’ written notice prior to the consummation of such disposition, and (y) not to disclose any Information of Motorola or relating to the Motorola Business to such third Person without Motorola’s express written
consent which may be withheld in Motorola’s sole discretion. In addition, Motorola will have the right, in its sole discretion, to require Freescale to destroy or return to Motorola all or any portion of such Information prior to such
disposition. Freescale covenants and agrees that it will not sell all or any portion of the SPS Business to any third Person unless such third Person expressly agrees in writing to be bound by all of Freescale’s obligations under this Section
6.8. In the event Motorola enters into an agreement with a third Person to sell all or any portion of the Motorola Business, Motorola covenants and agrees in connection with any such disposition not to disclose any Information of Freescale or
relating to the SPS Business to such third Person without Freescale’s express written consent which may be withheld in Freescale’s sole discretion. 
  
 Section 6.9 Iridium Data Retention and Access. Notwithstanding anything to the contrary in this Article 6, Freescale acknowledges that some
Information may include Iridium Data and/or may relate to Iridium Claims. Freescale further agrees and acknowledges as follows: (a) the Iridium Data will be retained and preserved and will not be removed, modified, altered or destroyed; provided
that, should such Iridium Data inadvertently be removed, modified, altered or destroyed, Freescale agrees to provide prompt written notice to Motorola, which will be provided within two (2) business days of learning of the removal, modification,
alteration or destruction and will include details of same; and (b) Motorola may need access to the Iridium Data in the future, including the right to copy, retrieve and/or remove the Iridium Data for purposes of defending against the Iridium
Claims. Freescale agrees to give Motorola reasonable access to the Iridium Data upon reasonable advance written notice, and the right to copy, retrieve and/or remove such Iridium Data at Motorola’s cost and expense. 
  
 Section 6.10 Iridium Claims: Cooperation. In addition to the
provisions of Section 6.9, Freescale agrees that it will: (a) fully cooperate in connection with Motorola’s defense of the Iridium Claims; and (b) make available during normal business hours its Representatives (and the Representatives of its
respective Group members, as applicable) to the extent reasonably necessary to discuss and explain all requested Iridium Data with and to Motorola or its Representatives. 
  
 ARTICLE 7 
 ADDITIONAL COVENANTS AND OTHER MATTERS 
  
 Section
7.1 Further Assurances. In addition to the Ancillary Agreements, the parties agree to execute, or cause to be executed by their appropriate Group members or Representatives, and deliver, as appropriate, such other agreements, instruments and
documents as may be necessary or desirable in order 

  

 27 

 
to effect the transactions contemplated by this Agreement and the Ancillary Agreements. At the request of Freescale, Motorola will execute and deliver, and
will cause applicable members of the Motorola Group to execute and deliver, to Freescale and/or applicable members of the Freescale Group such other instruments of transfer, conveyance, assignment, substitution and confirmation and take such other
actions as Freescale may reasonably deem necessary or desirable in order (a) to transfer, convey and assign to Freescale and the other members of the Freescale Group, as applicable, the SPS Assets, (b) to put Freescale and the other members of the
Freescale Group, as applicable, in actual possession and operating control thereof, and (c) to permit Freescale and the other members of the Freescale Group, as applicable, to exercise all rights with respect thereto. At the request of Motorola,
Freescale will execute and deliver, and will cause applicable members of the Freescale Group to execute and deliver, to Motorola and/or applicable members of the Motorola Group all instruments, assumptions, novations, undertakings, substitutions or
other documents and take such other action as Motorola may reasonably deem necessary or desirable in order to ensure that Freescale and the other members of the Freescale Group fully and unconditionally assume and discharge the SPS Liabilities as
contemplated under this Agreement, the Ancillary Agreements or any document in connection herewith or therewith, and relieve the Motorola Group of any Liability with respect thereto and evidence the same to third Persons. Except as otherwise
expressly provided in this Agreement or any Ancillary Agreement, no member of the Motorola Group will be obligated to incur any out-of-pocket costs, expenses and fees in connection with its obligations under this Section 7.1, including, without
limitation, any attorneys’ fees, recording, assignment or other similar fees. 
  
 Section 7.2 Performance. Motorola will cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement or in any Ancillary Agreement to be
performed by any member of the Motorola Group. Freescale will cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement or in any Ancillary Agreement to be performed by any
member of the Freescale Group. Each party further agrees that it will cause its other Group members not to take any action or fail to take any action inconsistent with such party’s obligations under this Agreement, any Ancillary Agreement or
the transactions contemplated hereby or thereby. 
  
 Section 7.3
Environmental Matters. Freescale will cause to be performed and hereby guarantees the performance of all actions, agreements and obligations related to remediation at what are commonly known as the 56th Street and Earll Drive Arizona State
Superfund site, the Motorola 52nd Street Superfund site and the Mesa Arizona Voluntary Remediation Program site in accordance with applicable Environmental Laws and plans approved by the responsible governmental agency, and in a manner consistent
with the performance of the same by Motorola’s Semiconductor Products Sector prior to the Effective Date. Further, Freescale agrees to use reasonable efforts to obtain letters, orders or other available means to provide Motorola with the same
benefit of an agency’s completion determination or finding that no further action is necessary as Freescale will receive upon completion of the same. 
  
 Section 7.4 Existing Litigation Matters. Freescale agrees that the Existing IP Litigation Matters constitute pre-existing Third Party Claims, as
that term is defined below in Section 8.3(d)(i), which were initiated prior to the Effective Date and for which proper notice has been given, and Freescale hereby expressly assumes control of such Existing IP Litigation Matters pursuant to Section
8.3(d)(i) as the Indemnifying Party. The parties further agree that the Existing IP Litigation Matters will remain and be treated as Third Party Claims after the Effective Date. Notwithstanding anything to the contrary in the Intellectual Property
License Agreement, Freescale agrees to indemnify Motorola for the Existing IP Litigation Matters pursuant to the terms of indemnification set forth below in Article 8 for any and all Damages incurred or suffered by Motorola whether such Damages
arise or accrue prior to, on or following the Effective Date. Motorola agrees that the outside legal counsel currently retained by Freescale in the Existing IP Litigation Matters may continue to represent the interests of both Freescale 

  

 28 

 
and Motorola, subject to Motorola’s rights pursuant to Section 8.3(d)(ii) and Section 8.3(d)(iii) below. Motorola further agrees that it will cooperate
and assist Freescale in preserving and enforcing any third Person intellectual property indemnification protection rights available to Motorola in connection with the Existing IP Litigation Matters. 
  
 Section 7.5 Insurance Matters. 
  
 (a) Directors’ and Officers’ Insurance.
Freescale and its Covered Subsidiaries, and each of their directors and officers will be covered under Motorola’s current directors’ and officers’ insurance program until its expiration on July 1, 2004. Freescale will promptly pay or
reimburse Motorola, as the case may be, for all costs and expenses associated with this coverage that are allocated by Motorola to Freescale and its Covered Subsidiaries in accordance with Motorola’s practice with respect to the SPS Business as
of the Effective Date. Freescale, its Covered Subsidiaries and each of their directors and officers may review said policies upon request. In addition, Motorola will continue to provide such coverage to Freescale and its Covered Subsidiaries, and
each of their directors and officers in connection with any extension of Motorola’s current directors’ and officers’ insurance program or under any new director’s and officers’ insurance program when Motorola’s current
program expires on July 1, 2004. Freescale will reimburse Motorola for any incremental costs or expenses incurred by Motorola in connection with covering Freescale and its Covered Subsidiaries, and each of their directors and officers under any new
insurance program or extension of the current insurance program that Motorola determines, in the exercise of its reasonable discretion, to be attributable to the coverage for Freescale, its Covered Subsidiaries or any of their directors or officers.
Freescale acknowledges that such directors’ and officers’ insurance coverage will terminate as of the Distribution Date, and Freescale covenants and agrees that it will take appropriate steps to secure directors’ and officers’
insurance coverage for itself, its Subsidiaries and each of their directors and officers as of the Distribution Date. 
  
 (b) TCS Insurance. Prior to the Effective Date, TCS Insurance Company of Ireland, Ltd. (“TCS”) has provided insurance
coverage for assets and/or entities that will become part of the Freescale Group as of the Effective Date. Motorola will cause TCS to continue to provide insurance to Freescale and its Covered Subsidiaries between the Effective Date and the
Distribution Date that is comparable to that maintained generally for Motorola and its Covered Subsidiaries during the same period, subject to insurance market conditions and other factors beyond Motorola’s or TCS’s reasonable control.
Freescale will pay Motorola for all costs and expenses associated with the provision of such TCS insurance to Freescale and its Covered Subsidiaries in accordance with Motorola’s practice with respect to the SPS Business as of the Effective
Date. From and after the Distribution Date, TCS will provide no further insurance to Freescale or any member of the Freescale Group. 
  
 (c) Other Insurance. Except as set forth in Section 7.5(a) with respect to directors’ and officers’ insurance and Section
7.5(b) with respect to TCS insurance, during the period from the Effective Date through the Distribution Date, Motorola will, subject to insurance market conditions and other factors beyond Motorola’s reasonable control, maintain, for the
protection of Freescale and its Covered Subsidiaries, policies of insurance that are comparable to those maintained generally for Motorola and its Covered Subsidiaries during the same period. Freescale will promptly pay or reimburse Motorola, as the
case may be, for all costs and expenses associated therewith that are allocated by Motorola to Freescale and its Covered Subsidiaries in accordance with (i) Motorola’s practice with respect to the SPS Business as of the Effective Date, or (ii)
the terms of the Transition Services Agreement, as applicable. To the extent Motorola purchases a new type of insurance, or an amount or level of insurance not previously purchased by Motorola in order to protect, at least in part, Freescale or any
of its Covered Subsidiaries, that portion of the costs and expenses of such insurance attributable to Freescale or any of its Covered Subsidiaries, as determined in Motorola’s sole discretion, shall be reimbursed by Freescale. 
  

 29 

 (d) Payments and Reimbursements. All payments and reimbursements by Freescale
pursuant to this Section 7.5 will be made within thirty (30) days after Freescale’s receipt of an invoice therefor from Motorola. 
  
 (e) Changes in Costs or Expenses. The costs and expenses for which Freescale is obligated to pay or reimburse Motorola pursuant to
this Section 7.5 will be based on Motorola’s current insurance costs and expenses as of the Effective Date and will be appropriately adjusted as a result of any changes in those costs and expenses after the Effective Date, although the
methodology upon which such costs and expenses is based will remain the same. 
  
 (f) Notification of Changes. Motorola agrees to provide Freescale not less than sixty (60) days advance written notice in the event it elects (or any of its insurers notifies Motorola in writing of such
insurer’s election) to cancel or effect any non-administrative modification of the terms and conditions of any Motorola insurance policy that provides coverage to Freescale or any of its Covered Subsidiaries, which notice will include the
anticipated date of cancellation or a description of such modification, as applicable. 
  
 (g) Historical Loss Data. For no less than seven (7) years after the Effective Date, Motorola will use commercially reasonable
efforts to make available to Freescale, upon written request, historical insurance loss Information relating to the SPS Business and any other Information relating to Motorola’s historic insurance program with respect to the SPS Business. Any
such Information provided to Freescale pursuant to this provision will also be subject to the provisions of Section 6.3. 
  
 (h) Post Distribution Date. Freescale acknowledges and agrees that from and after the Distribution Date (i) no member of the
Motorola Group will purchase or maintain, or cause to be purchased or maintained, any insurance policy for the protection of Freescale, its Covered Subsidiaries, any member of the Freescale Group or any of their respective directors and officers,
and (ii) the Freescale Group (including Freescale and its Covered Subsidiaries) will purchase insurance coverage sufficient to protect its interests. 
  
 Section 7.6 Export Control Compliance. Freescale agrees not to, and Freescale will cause each other member of the Freescale Group not to, export,
re-export or otherwise transfer any commodities or technology received from any member of the Motorola Group in connection with the Contribution or otherwise, except in accordance with applicable export control regulations, including, without
limitation, the applicable export control regulations of the United States. This Section 7.6 will survive termination of this Agreement for any reason whatsoever. 
  
 Section 7.7 Conduct of SPS Business between Effective Date and the IPO Settlement Date. From the Effective Date
through the IPO Settlement Date, Freescale will (and Freescale will cause each of the other Freescale Group members to) conduct its operations in the Ordinary Course of Business. Without limiting the generality of the foregoing, prior to the IPO
Settlement Date, Freescale will not (and Freescale will cause each of the other Freescale Group members not to), without the written consent of Motorola, which consent may be withheld in Motorola’s sole discretion, take any action outside the
Ordinary Course of Business, including, without limitation: (a) the incurrence of any capital expenditures or Liabilities not previously approved by Motorola prior to the Effective Date; (b) the acquisition of any businesses or other Assets, by
means of merger, consolidation or otherwise; (c) any action that would result in the acceleration of payment of any account payable or delay in the creation or collection of any account receivable; or (d) any loans, advances or capital contributions
to, or investments in, any other Person (other than members of the Freescale Group). 
  

 30 

 Section 7.8 Conduct of SPS Business between IPO Settlement Date and Distribution Date. Subject to
any additional restrictions in the Tax Sharing Agreement, during the period from the IPO Settlement Date through the Distribution Date, Freescale covenants and agrees that the Freescale Group as a whole will not, without Motorola’s prior
written consent (which Motorola may withhold in its sole and absolute discretion): (a) acquire any businesses or other Assets, by means of merger, consolidation or otherwise, of any other Person, with an aggregate value of more than $100 million for
all such acquisitions, (b) dispose of Assets held by the Freescale Group, by sale or otherwise, with an aggregate value of more than $100 million for all such dispositions, or (c) acquire any equity or debt securities of any other Person, with an
aggregate value of more than $50 million for all such acquisitions. 
  
 ARTICLE 8 
 INDEMNIFICATION 
  
 Section 8.1 Indemnification by Freescale Group. Subject to the provisions hereof, Freescale will, and Freescale will cause any member of the
Freescale Group that receives any SPS Asset or assumes any SPS Liability pursuant to the terms of this Agreement or any Ancillary Agreement (and each of their respective successors and assigns) to, jointly and severally indemnify, defend and hold
harmless Motorola, each member of the Motorola Group, each of their respective past and present Representatives, and each of their respective successors and assigns (collectively, the “Motorola Indemnified Parties”) from and against
any and all Damages incurred or suffered by the Motorola Indemnified Parties arising or resulting from the following, whether such Damages arise or accrue prior to, on or following the Effective Date: 
  
 (a) The failure of Freescale or any other member of the
Freescale Group or any other Person to pay, perform or otherwise properly discharge any of the SPS Liabilities in accordance with their respective terms; 
  
 (b) The SPS Business or any SPS Liability, including without limitation, any Liabilities arising out of or relating to the Existing IP
Litigation Matters; 
  
 (c) Any breach by
Freescale or any member of the Freescale Group of this Agreement or any Ancillary Agreement; and 
  
 (d) Any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required
to be stated therein or necessary to make the statements therein not misleading, with respect to all information contained in, or incorporated by reference into, the IPO Registration Statement and any other documents filed with the SEC in connection
with the IPO or the transactions contemplated in this Agreement, other than with respect to the Motorola Disclosure Portions. 
  
 Section 8.2 Indemnification by Motorola Group. Subject to the provisions hereof, Motorola will, and Motorola will cause any member of the Motorola
Group that transfers any SPS Asset pursuant to the terms of this Agreement or any Ancillary Agreement (and each of their respective successors and assigns) to, jointly and severally indemnify, defend and hold harmless each member of the Freescale
Group, each of their respective past and present Representatives, and each of their respective successors and assigns (collectively, the “Freescale Indemnified Parties”) from and against any and all Damages incurred or suffered by
the Freescale Indemnified Parties arising or resulting from the following: 
  
 (a) The failure of Motorola or any other member of the Motorola Group or any other Person to pay, perform or otherwise properly discharge any of the Motorola Liabilities in accordance with their respective terms;

  

 31 

 (b) The Motorola Business or the Motorola Liabilities; and 
  
 (c) Any breach by Motorola or any member of the Motorola
Group of this Agreement or any Ancillary Agreement. 
  
 Section
8.3 Claim Procedure. 
  
 (a) Claim
Notice. A party that seeks indemnity under this Article 8 (an “Indemnified Party”) will give written notice (a “Claim Notice”) to the party from whom indemnification is sought (an “Indemnifying
Party”), whether the Damages sought arise from matters solely between the parties or from Third Party Claims. The Claim Notice must contain (i) a description and, if known, estimated amount (the “Claimed Amount”) of any
Damages incurred or reasonably expected to be incurred by the Indemnified Party, (ii) a reasonable explanation of the basis for the Claim Notice to the extent of facts then known by the Indemnified Party, and (iii) a demand for payment of those
Damages. No delay or deficiency on the part of the Indemnified Party in so notifying the Indemnifying Party will relieve the Indemnifying Party of any Liability or obligation hereunder except to the extent of any Damages caused by or arising out of
such failure. 
  
 (b) Response to Notice of
Claim. Within thirty (30) days after delivery of a Claim Notice, the Indemnifying Party will deliver to the Indemnified Party a written response in which the Indemnifying Party will either: (i) agree that the Indemnified Party is entitled to
receive all of the Claimed Amount and, in which case, the Indemnifying Party will pay the Claimed Amount in accordance with a payment and distribution method reasonably acceptable to the Indemnified Party; or (ii) dispute that the Indemnified Party
is entitled to receive all or any portion of the Claimed Amount, in which case, the parties will resort to the dispute resolution procedures set forth in Section 9.3. 
  
 (c) Contested Claims. In the event that the Indemnifying Party disputes the Claimed Amount, as soon
as practicable but in no event later than ten (10) days after the receipt of the notice referenced in Section 8.3(b)(ii) hereof, the parties will begin the process to resolve the matter in accordance with the dispute resolution provisions of Section
9.3 hereof. Upon ultimate resolution thereof, the parties will take such actions as are reasonably necessary to comply with such agreement or instructions. 
  
 (d) Third Party Claims. 
  
 (i) In the event that the Indemnified Party receives notice or otherwise learns of the assertion by a Person who is not a member of either
Group of any claim or the commencement of any Action (collectively, a “Third-Party Claim”) with respect to which the Indemnifying Party may be obligated to provide indemnification under this Article 8, the Indemnified Party will
give written notification to the Indemnifying Party of the Third-Party Claim. Such notification will be given within five (5) days after receipt by the Indemnified Party of notice of such Third-Party Claim, will be accompanied by reasonable
supporting documentation submitted by such third party (to the extent then in the possession of the Indemnified Party) and will describe in reasonable detail (to the extent known by the Indemnified Party) the facts constituting the basis for such
Third-Party Claim and the amount of the claimed Damages; provided, however, that no delay or deficiency on the part of the Indemnified Party in so notifying the Indemnifying Party will relieve the Indemnifying Party of any Liability or
obligation hereunder except to the extent of any Damages caused by or arising out of such failure. Within twenty (20) days after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume
control of the defense of such Third-Party Claim with counsel reasonably satisfactory to the Indemnified Party. During any period in which the 

  

 32 

 
Indemnifying Party has not so assumed control of such defense, the Indemnified Party will control such defense. 
  
 (ii) The party not controlling such defense (the
“Non-controlling Party”) may participate therein at its own expense; provided, however, that if the Indemnifying Party assumes control of such defense and the Indemnified Party concludes, upon the written opinion of
counsel, that the Indemnifying Party and the Indemnified Party have conflicting interests or different defenses available with respect to such Third-Party Claim, the reasonable fees and expenses of counsel to the Indemnified Party will be considered
“Damages” for purposes of this Agreement. The party controlling such defense (the “Controlling Party”) will keep the Non-controlling Party reasonably advised of the status of such Third-Party Claim and the defense
thereof and will consider in good faith recommendations made by the Non-controlling Party with respect thereto. The Non-controlling Party will furnish the Controlling Party with such Information as it may have with respect to such Third-Party Claim
(including copies of any summons, complaint or other pleading which may have been served on such party and any written claim, demand, invoice, billing or other document evidencing or asserting the same) and will otherwise cooperate with and assist
the Controlling Party in the defense of such Third-Party Claim. 
  
 (iii) The Indemnifying Party will not agree to any settlement of, or the entry of any judgment arising from, any such Third-Party Claim without the prior written consent of the Indemnified Party, which consent will
not be unreasonably withheld or delayed; provided, however, that the consent of the Indemnified Party will not be required if (A) the Indemnifying Party agrees in writing to pay any amounts payable pursuant to such settlement or
judgment, and (B) such settlement or judgment includes a full, complete and unconditional release of the Indemnified Party from further Liability. The Indemnified Party will not agree to any settlement of, or the entry of any judgment arising from,
any such Third-Party Claim without the prior written consent of the Indemnifying Party, which consent will not be unreasonably withheld or delayed. 
  
 Section 8.4 Survival; Limitations. 
  
 (a) All covenants and agreements of the parties contained in this Agreement will survive each of the Contribution, the IPO and the
Distribution. The rights and obligations of Motorola, Freescale and each of their respective Indemnified Parties under this Agreement will survive the sale, assignment or other transfer by any party of any Assets or Liabilities. 
  
 (b) The amount of any Damages for which indemnification is
provided under this Agreement will be net of any amounts actually recovered by the Indemnified Party from any third Person (including, without limitation, amounts actually recovered under insurance policies) with respect to such Damages. Any
Indemnifying Party hereunder will be subrogated to the rights of the Indemnified Party upon payment in full of the amount of the relevant indemnifiable Damages. An insurer who would otherwise be obligated to pay any claim will not be relieved of the
responsibility with respect thereto or, solely by virtue of the indemnification provision hereof, have any subrogation rights with respect thereto. If any Indemnified Party recovers an amount from a third Person in respect of Damages for which
indemnification is provided in this Agreement after the full amount of such indemnifiable Damages has been paid by an Indemnifying Party or after an Indemnifying Party has made a partial payment of such indemnifiable Damages and the amount received
from the third Person exceeds the remaining unpaid balance of such indemnifiable Damages, then the Indemnified Party will promptly remit to the Indemnifying Party the excess (if any) of (X) the sum of the amount theretofore paid by such Indemnifying
Party in respect of such indemnifiable Damages plus the amount received from the third Person in respect thereof, less (Y) the full amount of such indemnifiable Damages. 
  

 33 

 (c) Notwithstanding anything to the contrary in this Article 8, in the event that a
Freescale Group member is an Indemnifying Party, the initial presumption will be that there is no insurance coverage for any such Damages, and the Indemnifying Party will, upon request by Motorola, fully indemnify, defend and hold harmless the
Indemnified Party from and against any and all such Damages. Once the Indemnifying Party has discharged this obligation to the Indemnified Party, the Indemnifying Party may request that the Indemnified Party pursue insurance coverage from one or
more insurers in connection with such Damages. If requested, the Indemnified Party will pursue insurance coverage, including, if necessary, the filing of coverage litigation, all of which will be at the Indemnifying Party’s sole cost and
expense. The Indemnifying Party will pay directly or promptly reimburse the Indemnified Party for all such costs and expenses, as directed by the Indemnified Party. The Indemnified Party will retain full and exclusive control of all such matters
(including, without limitation, the settlement of underlying covered claims and/or coverage claims against insurers), and the Indemnified Party will have the right to select counsel with the concurrence of Indemnifying Party, which concurrence will
not be withheld unreasonably. The net proceeds of any insurance recovery (after deducting any costs and expenses that have not yet been paid or reimbursed by the Indemnifying Party) will be paid to the Indemnifying Party. At all times, the
Indemnifying Party will cooperate with the Indemnified Party’s insurers and/or with the Indemnified Party in the pursuit of insurance coverage, as and when reasonably requested to do so by the Indemnified Party. It is not the intent of this
Section 8.4(c) to absolve the Indemnifying Party of any responsibility to the Indemnified Party for those Damages in connection with which the Indemnified Party actually secures insurance coverage, but to allocate the costs of pursuing such coverage
to the Indemnifying Party and to provide the Indemnified Party with a full, interim indemnity from the Indemnifying Party until such time as the extent of insurance coverage is determined and is obtained. Notwithstanding anything to the contrary in
this Section 8.4(c), if the Indemnified Party in its sole discretion determines that it is necessary to do so, the Indemnified Party may pursue insurance coverage for the benefit of Indemnifying Party before the Indemnifying Party has fully
discharged its obligations to the Indemnified Party under this Agreement. In such event, the Indemnified Party may unilaterally take any steps it determines are necessary to preserve such insurance coverage, including, by way of example and not by
way of limitation, tendering the defense of any claim or suit to an insurer or insurers of the Indemnified Party if the Indemnified Party concludes that such action may be required by the relevant insurance policy or policies. Any such actions by
the Indemnified Party will not relieve Indemnifying Party of any of its obligations to the Indemnified Party under this Agreement, including the Indemnifying Party’s obligation to pay directly or reimburse the Indemnified Party for costs and
expenses. 
  
 (d) Any indemnification payment
made under this Agreement will be characterized for Tax purposes as a contribution or distribution or payment of an assumed or retained liability, as applicable. 
  
 (e) Notwithstanding the joint and several indemnification obligations of each Group as set forth in Sections
8.1 and 8.2, the parties agree that the indemnification obligation of any Motorola Group member or Freescale Group member, as applicable, for Damages will be satisfied by a direct payment from Motorola or Freescale, as applicable, to the other party
irrespective of which Group member is found liable for Damages. 
  
 (f) Notwithstanding anything to the contrary in Section 8.1 or Section 8.2, (i) indemnification with respect to Taxes shall be governed exclusively by the Tax Sharing Agreement, (ii) to the extent the Intellectual
Property License Agreement specifically provides indemnification with respect to Third-Party Claims for infringement of Intellectual Property rights (other than the Existing IP Litigation Matters), the Intellectual Property License Agreement shall
govern with respect to that indemnification, and (iii) to the extent the Employee Matters Agreement specifically provides indemnification with respect to certain employee-related SPS Liabilities, the Employee Matters 

  

 34 

 
Agreement shall govern with respect to that indemnification. To the extent indemnification is not provided in such Ancillary Agreements, the terms of this
Agreement shall govern. 
  
 (g) NOTWITHSTANDING
ANY OTHER PROVISION OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT TO THE CONTRARY, IN NO EVENT WILL EITHER PARTY OR ANY OF ITS GROUP MEMBERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST
PROFITS SUFFERED BY AN INDEMNIFIED PARTY (COLLECTIVELY, “UNFORESEEN DAMAGES”), HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, IN CONNECTION WITH ANY DAMAGES ARISING HEREUNDER OR THEREUNDER; PROVIDED, HOWEVER, THAT TO
THE EXTENT AN INDEMNIFIED PARTY IS REQUIRED TO PAY ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS TO A PERSON WHO IS NOT A MEMBER OF EITHER GROUP IN CONNECTION WITH A THIRD PARTY CLAIM, SUCH DAMAGES
WILL CONSTITUTE DIRECT DAMAGES AND NOT SUBJECT TO THE LIMITATION SET FORTH IN THIS SECTION 8.4(g). 
  
 ARTICLE 9 
 MISCELLANEOUS 
  
 Section 9.1 Governing Law. The internal laws of the State of Delaware
(without reference to its principles of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and, unless expressly provided therein, each Ancillary Agreement, and each of the
exhibits and schedules hereto and thereto (whether arising in contract, tort, equity or otherwise). 
  
 Section 9.2 Jurisdiction. If any Dispute arises out of or in connection with this Agreement or any Ancillary Agreement, except as expressly
contemplated by another provision of this Agreement or any Ancillary Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of
federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION
BY JURY. 
  
 Section 9.3 Dispute Resolution. 
  
 (a) Amicable Resolution. 
  
 (i) Motorola and Freescale mutually desire that friendly
collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and
obligations under this Agreement or any Ancillary Agreement, including any amendments hereto or thereto. In furtherance thereof, in the event of any dispute or disagreement (a “Dispute”) between any Motorola Group member and any
Freescale Group member as to the interpretation of any provision of this Agreement or any Ancillary Agreement executed in connection herewith or therewith (or the performance of obligations hereunder or thereunder), then unless otherwise provided in
any Ancillary Agreement, the matter, upon written request of either party, will be referred for resolution to a steering committee established pursuant to this Section 9.3(a) (the “Steering Committee”). The Steering Committee will
have eight (8) members, four (4) of whom will be appointed by Motorola and four (4) of whom will be appointed by Freescale. Each of Motorola and Freescale will use its good faith efforts to avoid replacing the initial members of the Steering
Committee for the first year after the Effective Date. Thereafter, Motorola and Freescale will, to the extent practicable, honor the other party’s 

  

 35 

 
reasonable objections to any replacements of Steering Committee members. While any person is serving as a member of the Steering Committee, such person may
not designate any substitute or proxy for purposes of attending or voting at a Steering Committee meeting. The Steering Committee will make a good faith effort to promptly resolve all Disputes referred to it. Steering Committee decisions made with
the consent of at least three (3) Freescale members and at least three (3) Motorola members will be binding on Motorola and Freescale. If the Steering Committee does not agree to a resolution of a Dispute within thirty (30) days after the reference
of the matter to it, each of Motorola and Freescale will be free to exercise the remedies available to it under applicable law, subject to Section 9.3(b). Notwithstanding anything to the contrary in this Article 9, any amendment to the terms of this
Agreement or any Ancillary Agreement may only be effected in accordance with Section 9.10.  
  
 (ii) Between the Effective Date and the first anniversary of the Effective Date, the Steering Committee will hold meetings every six (6)
weeks on dates established at the organizational meeting of the Steering Committee, which will be held as promptly as practicable after the Effective Date. Such meeting dates may be rescheduled by the Steering Committee if it becomes reasonably
impracticable to hold such a meeting. After the first anniversary of the Effective Date, the Steering Committee will hold regularly scheduled meetings as determined by the Steering Committee. 
  
 (b) Mediation and Alternate Dispute Resolution. In
the event any Dispute cannot be resolved in a friendly manner as set forth in Section 9.3(a), the parties intend that such Dispute be resolved by an alternative dispute resolution process (“ADR”). If the Steering Committee is unable
to resolve the Dispute as contemplated by Section 9.3(a), either Motorola or Freescale may demand mediation of the Dispute by written notice to the other in which case the two parties will select a mediator within ten (10) days after the demand.
Neither party may unreasonably withhold consent to the selection of the mediator. The parties may agree to replace mediation with some other form of non-binding ADR such as neutral fact finding or mini-trial. The use of any ADR procedures will not
be construed under the doctrines of laches, waiver or estoppel to affect adversely the rights of either party. Each of Motorola and Freescale will bear its own costs of mediation or other form of ADR, but both parties will share the costs of the
mediator or other arbiter equally. 
  
 (c)
Non-Exclusive Remedy. Nothing in this Section 9.3 will prevent either Motorola or Freescale from commencing formal litigation proceedings or seeking injunctive or similar relief if (i) the Dispute has not been resolved within forty-five (45)
days after commencement of the applicable ADR process or (ii) any delay resulting from efforts to mediate such Dispute could result in serious and irreparable injury to either Motorola, Freescale or any member of either party’s Group.

  
 (d) Commencement of Dispute Resolution
Procedure. Notwithstanding anything to the contrary in this Agreement or any Ancillary Agreement, Motorola and Freescale are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement,
whether pursuant to Section 8.3, this Section 9.3 or otherwise, and each party will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 9.3(d). 
  
 Section 9.4 Notices. Each party giving any notice required or
permitted under this Agreement or any Ancillary Agreement will give the notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which the sending party has
been notified in accordance with this Section 9.4: (a) personal delivery; (b) facsimile or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery;
or (d) pre-paid, United States of America certified or registered mail, return receipt requested. Notice to a party is 

  

 36 

 
effective for purposes of this Agreement or any Ancillary Agreement only if given as provided in this Section 9.4 and will be deemed given on the date that
the intended addressee actually receives the notice. 
  

			
	 If to Motorola:
	  	with a copy to:
		
	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Chief Financial Officer
 Facsimile: 847.576.1402
	  	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: General Counsel
 Facsimile: 847.576.3628

		
	If to Freescale:	  	with a copy to:
		
	 Freescale Semiconductor, Inc.
 6501 William Cannon
Drive
 Austin, Texas 78737
 Attention: Chief Financial
Officer
 Facsimile: 512.895.8696
	  	 Freescale Semiconductor, Inc.
 7700 West Parmer
Lane
 Austin, Texas 78729
 Attention: General Counsel

Facsimile: 512.996.7697

  
 Section 9.5 Binding
Effect and Assignment. This Agreement and each Ancillary Agreement binds and benefits the parties and their respective successors and assigns. Notwithstanding anything in Section 6.8 to the contrary, neither party may assign any of its rights or
delegate any of its obligations under this Agreement or any Ancillary Agreement without the written consent of the other party which consent may be withheld in such party’s sole and absolute discretion and any assignment or attempted assignment
in violation of the foregoing will be null and void. Notwithstanding the preceding sentence, Motorola may assign this Agreement and any Ancillary Agreement in connection with a merger transaction in which Motorola is not the surviving entity or the
sale of all or substantially all of its assets. 
  
 Section 9.6
Severability. If any provision of this Agreement or any Ancillary Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement or such Ancillary Agreement, as the case may be, remain in full
force, if the essential terms and conditions of this Agreement or such Ancillary Agreement, as the case may be, for each party remain valid, binding and enforceable. 
  
 Section 9.7 Entire Agreement. This Agreement, together with the Ancillary Agreements and each of the exhibits and
schedules appended hereto and thereto, constitutes the final agreement between the parties, and is the complete and exclusive statement of the parties’ agreement on the matters contained herein and therein. All prior and contemporaneous
negotiations and agreements between the parties with respect to the matters contained herein and therein are superseded by this Agreement and the Ancillary Agreements, as applicable. In the event of any conflict between any provision in this
Agreement and any provision in a Contribution Agreement, the provisions of this Agreement will control over the provisions in such Contribution Agreement. In the event of any conflict between (a) any provision in this Agreement or any Contribution
Agreement, on the one hand, and (b) any specific provision in any Key Ancillary Agreement, on the other hand, pertaining to the subject matter of such Key Ancillary Agreement, the specific provisions in such Key Ancillary Agreement will control over
the provisions in this Agreement or such Contribution Agreement, as applicable. 
  
 Section 9.8 Counterparts. The parties may execute this Agreement and any Ancillary Agreement in multiple counterparts, each of which constitutes an original as against the party that signed it, and all of which
together constitute one agreement. The signatures of both parties need not appear on 

  

 37 

 
the same counterpart. The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party’s signature is as
effective as signing and delivering the counterpart in person. 
  
 Section 9.9 Expenses. Freescale will be responsible for the payment of all costs, fees and expenses relating to the IPO, Motorola will be responsible for the payment of all costs, fees and expenses relating to the Distribution, and
the responsibility for payment of costs, fees and expenses relating to the Contribution will be agreed to by the parties, including as set forth in the Tax Sharing Agreement and the Employee Matters Agreement. 
  
 Section 9.10 Amendment. The parties may amend this Agreement or any
Ancillary Agreement only by a written agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement or such Ancillary Agreement, as applicable. 
  
 Section 9.11 Waiver. The parties may waive a provision of this
Agreement or an Ancillary Agreement only by a writing signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay in
exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only
for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s rights and remedies in this Agreement or any Ancillary Agreement is not intended to be exclusive, and
a party’s rights and remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity. 
  
 Section 9.12 Authority. Each of the parties represents to the other that (a) it has the corporate or other requisite
power and authority to execute, deliver and perform this Agreement and each of the Ancillary Agreements to which it is a party, (b) the execution, delivery and performance of this Agreement and each of the Ancillary Agreements to which it is a party
have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed and delivered this Agreement and each of the Ancillary Agreements to which it is a party, and (d) this Agreement and each of the Ancillary
Agreements to which it is a party is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and general equity principles. 
  
 Section 9.13
Construction of Agreement. 
  
 (a) Where
this Agreement or any Ancillary Agreement states that a party “will” or “shall” perform in some manner or otherwise act or omit to act, it means that the party is legally obligated to do so in accordance with this
Agreement or such Ancillary Agreement, as applicable. 
  
 (b) The captions, titles and headings, and table of contents, included in this Agreement and the Ancillary Agreements are for convenience only, and do not affect this Agreement’s or such Ancillary Agreements’ construction or
interpretation. When a reference is made in this Agreement or any Ancillary Agreement to an Article or a Section, exhibit or schedule, such reference will be to an Article or Section of, or an exhibit or schedule to, this Agreement unless otherwise
indicated. 
  
 (c) This Agreement and the
Ancillary Agreements are for the sole benefit of the parties hereto and their respective Group members and, except for the indemnification rights of the Motorola Indemnified Parties and the Freescale Indemnified Parties under this Agreement or as
expressly provided in any Ancillary Agreement, do not, and are not intended to, confer any rights or remedies in 

  

 38 

 
favor of any Person (including any employee or stockholder of Motorola or Freescale) other than the parties signing this Agreement and their respective Group
members. 
  
 (d) The words
“including,” “includes,” or “include” are to be read as listing non-exclusive examples of the matters referred to, whether or not words such as “without limitation” or “but
not limited to” are used in each instance. 
  
 (e) Any reference in this Agreement or any Ancillary Agreement to the singular includes the plural where appropriate. Any reference in this Agreement or any Ancillary Agreement to the masculine, feminine or neuter gender includes the other
genders where appropriate. For purposes of this Agreement, after the Effective Date the SPS Business will be deemed to be the business of Freescale and the Freescale Group, and all references made in this Agreement to Freescale as a party which
operates as of a time following the Effective Date, will be deemed to refer to all members of the Freescale Group as a single party where appropriate. 
  
 (f) Unless otherwise expressly specified in an Ancillary Agreement, all references in this Agreement or any Ancillary Agreement to
“dollars” or “$” means United States Dollars. If any payment required to be made hereunder is denominated in a currency other than United States Dollars, such payment will be made in United States Dollars and the
amount thereof will be computed using Motorola’s P&L rate for the current month. 
  
 (g) Any reference in this Agreement or any Ancillary Agreement to a “member” of a Group means a party to this Agreement
or another Person referred to in the definition of Freescale Group or Motorola Group, as applicable. 
  
 Section 9.14 Termination. 
  
 (a) This Agreement and any Ancillary Agreement may be terminated at any time prior to the Effective Date by and in the sole discretion of
Motorola without the approval of Freescale in which case neither party will have any liability of any kind to the other party. 
  
 (b) The obligations of the parties under Article 4 (including the obligation to pursue or effect the Distribution) may be terminated by
Motorola if (i) at any time after the Effective Date Motorola determines, in its sole and absolute discretion, that the Distribution would not be in the best interests of Motorola or its stockholders or (ii) the Distribution has not occurred by
December 31, 2005. 
  
 Section 9.15 Limitation on Damages.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT TO THE CONTRARY, IN NO EVENT WILL EITHER PARTY OR ANY OF ITS GROUP MEMBERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES OR LOST PROFITS IN CONNECTION WITH ANY CLAIMS, LOSSES, DAMAGES, OR INJURIES ARISING OUT OF THE CONDUCT OF SUCH PARTY PURSUANT TO THIS AGREEMENT. 
  
 (This space intentionally left blank) 
  

 39 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by a duly
authorized officer on the date first set forth above. 
  

									
	“Motorola”	 	 	 	“Freescale”
			
	 MOTOROLA, INC., a Delaware corporation
	 	 	 	 FREESCALE SEMICONDUCTOR, INC.,
 a Delaware corporation

					
	By:	 	/s/ David W. Devonshire	 	 	 	By:	 	/s/ Alan Compbell
	 Name:
	 	 David W. Devonshire
	 	 	 	 Name:
	 	 Alan Campbell

	 Title:
	 	 Executive Vice President and Chief
 Financial
Officer
	 	 	 	 Title:
	 	 Senior Vice President and Chief Financial
 Officer

  

 40Tax Sharing Agreement

 EXHIBIT 10(b)(i) 
  
 TAX SHARING AGREEMENT 
  
 DATED AS OF APRIL 4, 2004 
  
 BY AND AMONG 
  
 MOTOROLA, INC. 
  
 AND 
  
 FREESCALE
SEMICONDUCTOR, INC. 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	 	Page

	 Section 1.
	 	 Definition of Terms
	 	1
			
	 Section 2.
	 	 Allocation of Tax Liabilities
	 	10
			
	 Section 2.01
	 	 General Rule
	 	10
			
	 Section 2.02
	 	 Allocation of United States Federal Income Tax and Federal Other Tax
	 	10
			
	 Section 2.03
	 	 Allocation of State Income and State Other Taxes
	 	11
			
	 Section 2.04
	 	 Allocation of Foreign Taxes
	 	11
			
	 Section 2.05
	 	 Certain Transaction and Other Taxes
	 	12
			
	 Section 2.06
	 	 Foreign Stock Distributions
	 	12
			
	 Section 3.
	 	 Proration of Taxes for Straddle Periods
	 	13
			
	 Section 4.
	 	 Preparation and Filing of Tax Returns
	 	13
			
	 Section 4.01
	 	 General
	 	13
			
	 Section 4.02
	 	 MINC’s Responsibility
	 	13
			
	 Section 4.03
	 	 Freescale Responsibility
	 	14
			
	 Section 4.04
	 	 Tax Accounting Practices
	 	14
			
	 Section 4.05
	 	 Consolidated or Combined Tax Returns
	 	15
			
	 Section 4.06
	 	 Right to Review Tax Returns
	 	15
			
	 Section 4.07
	 	 Freescale Carrybacks and Claims for Refund
	 	16
			
	 Section 4.08
	 	 Apportionment of Earnings and Profits and Tax Attributes
	 	16
			
	 Section 5.
	 	 Tax Payments
	 	16
			
	 Section 5.01
	 	 Payment of Taxes with Respect to MINC Federal Consolidated Income Tax Returns
	 	16
			
	 Section 5.02
	 	 Payment of Taxes With Respect to Joint Returns (other than a MINC Federal Consolidated Income Tax Return) and Certain Returns of Other Taxes
	 	16

  

 i 

					
			
	 Section 5.03
	  	 Payment of Separate Company Taxes
	  	18
			
	 Section 5.04
	  	 Indemnification Payments
	  	18
			
	 Section 6.
	  	 Tax Benefits
	  	18
			
	 Section 6.01
	  	 Tax Benefits
	  	18
			
	 Section 7.
	  	 Tax-Free Status
	  	20
			
	 Section 7.01
	  	 Tax Opinions/Rulings and Representation Letters
	  	20
			
	 Section 7.02
	  	 Restrictions on Freescale
	  	20
			
	 Section 7.03
	  	 Restrictions on MINC
	  	22
			
	 Section 7.04
	  	 Procedures Regarding Opinions and Rulings
	  	23
			
	 Section 7.05
	  	 Liability for Tax-Related Losses
	  	23
			
	 Section 8.
	  	 Assistance and Cooperation
	  	25
			
	 Section 8.01
	  	 Assistance and Cooperation
	  	25
			
	 Section 8.02
	  	 Income Tax Return Information
	  	25
			
	 Section 8.03
	  	 Reliance by MINC
	  	26
			
	 Section 8.04
	  	 Reliance by Freescale
	  	26
			
	 Section 9.
	  	 Tax Records
	  	27
			
	 Section 9.01
	  	 Retention of Tax Records
	  	27
			
	 Section 9.02
	  	 Access to Tax Records
	  	27
			
	 Section 10.
	  	 Tax Contests
	  	27
			
	 Section 10.01
	  	 Notice
	  	27
			
	 Section 10.02
	  	 Control of Tax Contests
	  	28
			
	 Section 11.
	  	 Effective Date; Termination of Prior Intercompany Tax Allocation Agreements
	  	29
			
	 Section 12.
	  	 Survival of Obligations
	  	30
			
	 Section 13.
	  	 Treatment of Payments; Tax Gross Up
	  	30
			
	 Section 13.01
	  	 Treatment of Tax Indemnity and Tax Benefit Payments
	  	30

  

 ii 

					
			
	 Section 13.02
	  	 Tax Gross Up
	  	30
			
	 Section 13.03
	  	 Interest Under This Agreement
	  	30
			
	 Section 14.
	  	 Disagreements
	  	31
			
	 Section 15.
	  	 Late Payments
	  	31
			
	 Section 16.
	  	 Expenses
	  	31
			
	 Section 17.
	  	 General Provisions
	  	32
			
	 Section 17.01
	  	 Addresses and Notices
	  	32
			
	 Section 17.02
	  	 Binding Effect
	  	32
			
	 Section 17.03
	  	 Waiver
	  	32
			
	 Section 17.04
	  	 Severability
	  	33
			
	 Section 17.05
	  	 Authority
	  	33
			
	 Section 17.06
	  	 Further Action
	  	33
			
	 Section 17.07
	  	 Integration
	  	33
			
	 Section 17.08
	  	 Construction
	  	33
			
	 Section 17.09
	  	 No Double Recovery
	  	33
			
	 Section 17.10
	  	 Counterparts
	  	33
			
	 Section 17.11
	  	 Governing Law
	  	34
			
	 Section 17.12
	  	 Jurisdiction
	  	34
			
	 Section 17.13
	  	 Amendment
	  	34
			
	 Section 17.14
	  	 Freescale Subsidiaries
	  	34
			
	 Section 17.15
	  	 Successors
	  	34
			
	 Section 17.16
	  	 Injunctions
	  	34

  

 iii 

 TAX SHARING AGREEMENT 
  
 This TAX SHARING AGREEMENT (this “Agreement”) is entered into as of April 4, 2004 by and between Motorola,
Inc., a Delaware corporation (“MINC”), and Freescale Semiconductor, Inc., a Delaware corporation and a wholly owned subsidiary of MINC (“Freescale”) (MINC and Freescale are sometimes collectively referred to herein
as the “Companies”). 
  
 RECITALS

  
 WHEREAS, the Board of Directors of MINC has determined
that it would be appropriate and desirable to completely separate the Freescale Business (as defined below) from MINC; 
  
 WHEREAS, as of the date hereof, MINC is the common parent of an affiliated group of corporations, including Freescale, which has elected to file
consolidated Federal income tax returns; 
  
 WHEREAS, MINC and
Freescale have entered into the Master Separation and Distribution Agreement (as defined below), pursuant to which (A) MINC has agreed to contribute and otherwise transfer to Freescale, and Freescale has agreed to receive and assume, the assets and
liabilities then associated with the Freescale Business as described therein; and (B) MINC and Freescale contemplate that Freescale shall consummate the IPO (as defined below); 
  
 WHEREAS, pursuant to the transactions contemplated by the Master Separation and Distribution Agreement, Freescale and its
subsidiaries may cease to be members of the affiliated group (as that term is defined in Section 1504 of the Code) of which MINC is the common parent (the “Deconsolidation”); 
  
 WHEREAS, MINC intends, after the IPO, to distribute to shareholders of MINC
the outstanding shares of Freescale Common Stock then owned by MINC; and 
  
 WHEREAS, the Companies desire to provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of, and subsequent to the IPO, and to provide for and agree upon
other matters relating to Taxes; 
  
 NOW THEREFORE, in
consideration of the mutual agreements contained herein, the Companies hereby agree as follows: 
  
 Section 1. Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following terms have the following
meanings, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Master Separation and Distribution Agreement: 
  
 “Accountant” shall have the meaning set forth in Section 8.02(c) of this Agreement. 
  
 “Accounting Cutoff Date” means, with respect to Freescale,
any date as of the end of which there is a closing of the financial accounting records for such entity. 
  

 “Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of
the Code and the regulations thereunder) by Freescale of the Freescale Business. 
  
 “Adjustment Request” means any formal or informal claim or request filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including
(a) any amended Tax return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously
paid. 
  
 “Affiliate” means any entity that is
directly or indirectly “controlled” by either the person in question or an Affiliate of such person. “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through ownership of voting securities, by contract or otherwise. Except as otherwise provided herein, the term Affiliate shall refer to Affiliates of a person as determined immediately after the Separation. 

 
 “Agreement” shall mean this Tax Sharing Agreement.

  
 “Board Certificate” shall have the meaning
set forth in Section 7.02(e) of this Agreement. 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
  
 “Companies” means MINC and Freescale, collectively, and “Company”, as the context requires, means either MINC or Freescale. 
  
 “Contribution” means the contribution of assets by MINC
itself directly to Freescale itself pursuant to Section 2.1 of the Master Separation and Distribution Agreement. 
  
 “Controlling Party” shall have the meaning set forth in Section 10.02(e) of this Agreement. 
  
 “Deconsolidation” shall have the meaning provided in the
Recitals. 
  
 “Deconsolidation Date” means the
last date on which Freescale qualifies as a member of the affiliated group (as defined in Section 1504 of the Code) of which MINC is the common parent. 
  
 “Distribution” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “Distribution Date” has the meaning set forth in the Master
Separation and Distribution Agreement. 
  
 “DGCL”
means the Delaware General Corporation Law. 
  
 “Federal
Income Tax” means any Tax imposed by Subtitle A of the Code, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  

 2 

 “Federal Other Tax” means any Tax imposed by the federal government of the United States
of America other than any Federal Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

  
 “Final Determination” means the final
resolution of liability for any Income Tax or Other Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of
the taxpayer, or by a comparable form under the laws of a State, local, or foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its
terms or by operation of law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (b) by a
decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement
under the laws of a State, local, or foreign taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Income Tax or Other Tax, but only after the expiration of all periods during which such refund may be
recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax; (e) by a final settlement resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by reason
of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 
  
 “Foreign Income Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision
of any foreign country or United States possession, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “Foreign Other Tax” means any Tax imposed by any foreign
country or any possession of the United States, or by any political subdivision of any foreign country or United States possession, other than any Foreign Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing. 
  
 “Foreign Stock
Distribution” shall have the meaning set forth in Section 2.06 of this Agreement. 
  
 “Foreign Tax” means any Foreign Income Taxes or Foreign Other Taxes. 
  
 “Freescale” shall have the meaning provided in the first sentence of this Agreement. 
  
 “Freescale Adjustment” means any proposed adjustment by a
Tax Authority or claim for refund asserted in a Tax Contest to the extent Freescale would be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 

 

 3 

 “Freescale Business” has the meaning of “SPS Business” set forth in the Master
Separation and Distribution Agreement. 
  
 “Freescale
Capital Stock” means all classes or series of capital stock of Freescale, including (i) the “Freescale Class A Common Stock” (as defined in the Master Separation and Distribution Agreement), (ii) the “Freescale Class B Common
Stock” (as defined in the Master Separation and Distribution Agreement), (iii) all options, warrants and other rights to acquire such capital stock and (iv) all instruments properly treated as stock in Freescale for U.S. federal income tax
purposes. 
  
 “Freescale Carryback” means any net
operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the Freescale Group which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law. 

 
 “Freescale Class B Common Stock” has the meaning set
forth in the Master Separation and Distribution Agreement. 
  
 “Freescale Common Stock” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “Freescale Federal Consolidated Income Tax Return” shall mean any United States federal Income Tax Return for the affiliated group (as
that term is defined in Code Section 1504) of which Freescale is the common parent. 
  
 “Freescale Group” means Freescale and its Affiliates, as determined immediately after the Separation. 
  
 “Freescale Separate Return” means any Separate Return of Freescale or any member of the Freescale Group. 
  
 “Group” means the MINC Group or the Freescale Group, or
both, as the context requires. 
  
 “High-Level
Dispute” means any dispute or disagreement (a) relating to liability under Section 7.05 of this Agreement or (b) in which the amount of liability in dispute exceeds $50 million. 
  
 “Income Tax” means any Federal Income Tax, State Income Tax or Foreign Income Tax. 
  
 “Indemnitee” shall have the meaning set forth in Section
13.03 of this Agreement. 
  
 “Indemnitor” shall
have the meaning set forth in Section 13.03 of this Agreement. 
  
 “Internal Restructuring” shall have the meaning set forth in Section 7.02(f) of this Agreement. 
  
 “IPO” has the meaning set forth in the Master Separation and Distribution Agreement. 
  

 4 

 “IRS” means the United States Internal Revenue Service. 
  
 “Joint Adjustment” means any proposed adjustment by a Tax
Authority or claim for refund asserted in a Tax Contest which is neither a Freescale Adjustment nor a MINC Adjustment. 
  
 “Joint Return” shall mean any Return of a member of the MINC Group or the Freescale Group that is not a Separate Return. 
  
 “Master Separation and Distribution Agreement” means the
Master Separation and Distribution Agreement, as amended from time to time, by and between MINC and Freescale dated                     ,
2004. 
  
 “MINC” shall have the meaning
provided in the first sentence of this Agreement. 
  
 “MINC Adjustment” means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent MINC would be exclusively liable for any resulting Tax under this Agreement or exclusively
entitled to receive any resulting Tax Benefit under this Agreement. 
  
 “MINC Affiliated Group” shall have the meaning provided in the definition of “MINC Federal Consolidated Income Tax Return.” 
  

“MINC Federal Consolidated Income Tax Return” means any United States federal Income Tax Return for the affiliated group (as that term
is defined in Code Section 1504 and the regulations thereunder) of which MINC is the common parent (the “MINC Affiliated Group”). 
  
 “MINC Group” means MINC and its Affiliates, excluding any entity that is a member of the Freescale Group. 
  
 “MINC Reduction” shall have the meaning set forth in Section
2.03(a)(i)(B) of this Agreement. 
  
 “MINC Separate
Return” means any Separate Return of MINC or any member of the MINC Group. 
  
 “MINC State Combined Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that actually includes, by election or otherwise, one or more members of the MINC Group
together with one or more members of the Freescale Group. 
  
 “Motorola Business” shall have the meaning provided in the Master Separation and Distribution Agreement. 
  
 “Non-Controlling Party” shall have the meaning set forth in Section 10.02(e) of this Agreement. 
  
 “Notified Action” shall have the meaning set forth in
Section 7.04(a) of this Agreement. 
  
 “Other
Tax” means any Federal Other Tax, State Other Tax, or Foreign Other Tax. 
  

 5 

 “Past Practices” shall have the meaning set forth in Section 4.04(a) of this Agreement.

  
 “Payment Date” means (i) with respect to any
MINC Federal Consolidated Income Tax Return, the due date for any required installment of estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section
6072, and the date the return is filed, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 
  
 “Payor” shall have the meaning set forth in Section 5.04 of this Agreement. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. federal
income tax purposes. 
  
 “Post-Deconsolidation
Period” means any Tax Period beginning after the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Deconsolidation Date. 
  
 “Pre-Deconsolidation Period” means any Tax Period ending on
or before the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date. 
  
 “Prime Rate” means the base rate on corporate loans charged by Citibank, N.A. from time to time, compounded daily on the basis of a year
of 365 or 366 (as applicable) days and actual days elapsed. 
  
 “Privilege” means any privilege that may be asserted under applicable law, including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges),
the accountant-client privilege and any privilege relating to internal evaluation processes. 
  
 “Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury
Regulation Section 1.355-7T, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Freescale management or shareholders, is a hostile acquisition, or
otherwise, as a result of which Freescale would merge or consolidate with any other Person or as a result of which any Person or any group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from Freescale and/or
one or more holders of outstanding shares of Freescale Capital Stock, a number of shares of Freescale Capital Stock that would, when combined with the number of shares of Freescale Capital Stock sold pursuant to the IPO and any other changes in
ownership of Freescale Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of Freescale as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of Freescale as of the date of such transaction, or in the case of a series of transactions, the date of
the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition 

  

 6 

 
Transaction shall not include (A) the adoption by Freescale of a shareholder rights plan or (B) issuances by Freescale that satisfy Safe Harbor VI (relating
to acquisitions in connection with a person’s performance of services) or Safe Harbor VII (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7T(d). For purposes of determining whether a
transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This
definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the
Code shall be incorporated in this definition and its interpretation. 
  
 “Representation Letters” means the representation letters and any other materials (including, without limitation, a Ruling Request and any related supplemental submissions to the IRS) delivered or deliverable by MINC and
others in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax Opinions/Rulings. 
  
 “Required Party” shall have the meaning set forth in Section 5.04 of this Agreement. 
  
 “Responsible Company” means, with respect to any Tax Return,
the Company having responsibility for preparing and filing such Tax Return under this Agreement. 
  
 “Ruling” means a private letter ruling (including a supplemental private letter ruling) issued by the IRS to MINC in connection with the
Contribution and Distribution. 
  
 “Ruling
Request” means any letter filed by MINC with the IRS requesting a ruling regarding certain tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any
amendment or supplement to such ruling request letter. 
  
 “Section 7.02(e) Acquisition Transaction” means any transaction or series of transactions, other than the IPO, that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage
reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%. 
  
 “Separate Return” means (a) in the case of any Tax Return of any member of the Freescale Group (including any consolidated, combined or unitary return), any such Tax Return that does not include any
member of the MINC Group and (b) in the case of any Tax Return of any member of the MINC Group (including any consolidated, combined or unitary return), any such Tax Return that does not include any member of the Freescale Group. 
  
 “Separation” means the series of transactions, including
transactions that occur after the IPO, that culminate in the transfer of the Freescale Business to Freescale. 
  
 “State Income Tax” means any Tax imposed by any State of the United States or by any political subdivision of any such State which is
imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  

 7 

 “State Other Tax” means any Tax imposed by any State of the United States or by any
political subdivision of any such State other than any State Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “State Tax” means any State Income Taxes or State Other Taxes. 
  
 “Steering Committee” has the meaning set forth in the Master
Separation and Distribution Agreement. 
  
 “Straddle
Period” means any Tax Period that begins on or before and ends after the Deconsolidation Date. 
  
 “Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding,
payroll, social security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated
or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing. 
  
 “Tax Advisor” means a
United States tax counsel or accountant of recognized national standing. 
  
 “Tax Advisor Dispute” shall have the meaning set forth in Section 14 of this Agreement. 
  
 “Tax Attribute” or “Attribute” shall mean a net operating loss, net capital loss, unused investment credit, unused foreign tax
credit, excess charitable contribution, general business credit or any other Tax Item that could reduce a Tax. 
  
 “Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the
agency (if any) charged with the collection of such Tax for such entity or subdivision. 
  
 “Tax Benefit” means any refund, credit, or other reduction in otherwise required Tax payments. 
  
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of
redetermining Taxes (including any administrative or judicial review of any claim for refund). 
  
 “Tax Contest Committee” shall have the meaning provided in Section 10.02(d). 
  
 “Tax Control” means the definition of “control” set forth in Section 368(c) of the Code (or in any successor statute or
provision), as such definition may be amended from time to time. 
  
 “Tax-Free Status” means the qualification of the Contribution and Distribution, taken together, (a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock
distributed thereby is “qualified property” for purposes of 

  

 8 

 
Sections 355(d), 355(e) and 361(c) of the Code and (c) as a transaction in which MINC, Freescale and the shareholders of MINC recognize no income or gain for
U.S. federal income tax purposes pursuant to Sections 355, 361 and 1032 of the Code, other than, in the case of MINC and Freescale, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated
pursuant to Section 1502 of the Code. 
  
 “Tax
Item” means, with respect to any Income Tax, any item of income, gain, loss, deduction, or credit. 
  
 “Tax Law” means the law of any governmental entity or political subdivision thereof relating to any Tax. 
  
 “Tax Opinions/Rulings” means the opinions of Tax Advisors
and/or the rulings by the IRS deliverable to MINC in connection with the Contribution and the Distribution. 
  
 “Tax Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax
Law. 
  
 “Tax Records” means Tax Returns, Tax
Return workpapers, documentation relating to any Tax Contests, and any other books of account or records required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Tax Authority.

  
 “Tax-Related Losses” means (i) all federal,
state and local Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees, and court costs incurred in connection with such
Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by MINC (or any MINC Affiliate) or Freescale (or any Freescale Affiliate) in respect of the liability of shareholders,
whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of the Contribution and the Distribution to have Tax-Free Status. 
  
 “Tax Return” or “Return” means any report of Taxes due, any claim for refund of Taxes
paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document required to be filed under the Code or other Tax Law, including any attachments, exhibits, or other materials submitted with any of
the foregoing, and including any amendments or supplements to any of the foregoing. 
  
 “Transactions” means the Contribution, the Distribution and the other transactions contemplated by the Master Separation and Distribution Agreement. 
  
 “Transfer Pricing Adjustment” shall mean any proposed or
actual allocation by a Tax Authority of any Tax Item between or among any member of the MINC Group and any member of the Freescale Group with respect to any Pre-Deconsolidation Period. 
  
 “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for
the relevant Tax Period. 
  

 9 

 “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax
Advisor, which Tax Advisor is acceptable to MINC, on which MINC may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Contribution and Distribution would have qualified for Tax-Free
Status if the transaction in question did not occur. 
  
 Section 2. Allocation of Tax Liabilities. 
  
 Section 2.01 General Rule. 
  
 (a) MINC
Liability. MINC shall be liable for, and shall indemnify and hold harmless the Freescale Group from and against any liability for, Taxes which are allocated to MINC under this Section 2. 
  
 (b) Freescale Liability. Freescale shall be liable for, and
shall indemnify and hold harmless the MINC Group from and against any liability for, Taxes which are allocated to Freescale under this Section 2. 
  
 Section 2.02 Allocation of United States Federal Income Tax and Federal Other Tax. Except as provided in Section 2.05, Federal Income Tax
and Federal Other Tax shall be allocated as follows: 
  
 (a) Allocation of Tax Relating to MINC Federal Consolidated Income Tax Returns. With respect to any MINC Federal Consolidated Income Tax Return, MINC shall be responsible for any and all Federal Income Taxes due or required to
be reported on any such Income Tax Return (including any increase in such Tax as a result of a Final Determination). 
  
 (b) Allocation of Tax Relating to Federal Separate Income Tax Returns. (i) MINC shall be responsible for any and all Federal Income Taxes
due with respect to or required to be reported on any MINC Separate Return (including any increase in such Tax as a result of a Final Determination); (ii) Freescale shall be responsible for any and all Federal Income Taxes due with respect to or
required to be reported on any Freescale Separate Return (including any increase in such Tax as a result of a Final Determination). 
  
 (c) Allocation of Federal Other Tax. MINC shall be responsible for any and all Federal Other Taxes attributable to the Motorola Business.
Freescale shall be responsible for any and all Federal Other Taxes attributable to the Freescale Business. 
  

 10 

 Section 2.03 Allocation of State Income and State Other Taxes. Except as provided in
Section 2.05, State Income Tax and State Other Tax shall be allocated as follows: 
  
 (a) Allocation of Tax Relating to MINC State Combined Income Tax Returns. Except as provided in Sections 2.03(a)(i) and (ii) below, MINC shall be responsible for any and all State Income Taxes due with
respect to or required to be reported on any MINC State Combined Income Tax Return (including any increase in such Tax as a result of a Final Determination). 
  

(i) Allocation of Tax Relating to Post-Deconsolidation Periods.  
  
 (A) With respect to any MINC State Combined Income Tax Returns relating to any Post-Deconsolidation
Periods, Freescale shall be liable to MINC for State Income Tax liability computed as if all members of the Freescale Group included in the computation of such Tax had filed such State Income Tax Return for such Freescale Group members based solely
on the income and other Tax Items of such members for the period that such Freescale Group members are included in such MINC State Combined Income Tax Return (without regard to any Taxes or Tax Attributes arising with respect to any period or
portion thereof ending on or prior to the Deconsolidation Date), but based on the apportionment factors derived by including all appropriate entities of both Groups on such State Income Tax Return. Any amount so allocated to the Freescale Group
shall be a liability of Freescale to MINC under this Section 2, regardless of whether such amount exceeds the total Tax liability shown on such MINC State Combined Income Tax Return. 
  
 (B) If, with respect to any MINC State Combined Income Tax Returns relating to any Post-Deconsolidation
Periods, a Tax Attribute of any of the members of the Freescale Group arising in such Post-Deconsolidation Period actually reduces the combined Tax liability on the MINC State Combined Income Tax Return below the amount that would have been payable
by MINC if the members of the Freescale Group had not been included in such Return (the “MINC Reduction”), then MINC shall be liable to Freescale in an amount equal to the MINC Reduction. 
  
 (ii) Allocation of Consolidated or Combined State
Income Tax Adjustments. If there is any adjustment to the Tax liability with respect to any MINC State Combined Income Tax Return relating to any Post-Deconsolidation Periods as reported on such Tax Return as described in Section 2.03(a)(i)
above, Freescale shall be liable to MINC, or MINC shall be liable to Freescale, for the difference between the amounts set forth in Section 2.03(a)(i) without regard to the adjustment and the amounts set forth in Section 2.03(a)(i) as
adjusted. 
  
 (b) Allocation of Tax Relating to
Separate Returns. (i) MINC shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any MINC Separate Return (including any increase in such Tax as a result of a Final Determination); (ii)
Freescale shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Freescale Separate Return (including any increase in such Tax as a result of a Final Determination). 
  
 (c) Allocation of State Other Tax. MINC shall be responsible
for any and all State Other Taxes attributable to the Motorola Business. Freescale shall be responsible for any and all State Other Taxes attributable to the Freescale Business. 
  
 Section 2.04 Allocation of Foreign Taxes. Except as provided in Sections 2.05 and 2.06, Foreign Income Tax and
Foreign Other Tax shall be allocated as follows:  
  
 (a) MINC shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any MINC Separate Return, including Foreign Income Tax of 

  

 11 

 
MINC or any member of the MINC Group imposed by way of withholding by a member of the Freescale Group (and including any increase in such Foreign Income Tax
as a result of a Final Determination). 
  
 (b) Freescale
shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any Freescale Separate Return, including Foreign Income Tax of Freescale or any member of the Freescale Group imposed by way of withholding
by a member of the MINC Group (and including any increase in such Foreign Income Tax as a result of a Final Determination). 
  
 (c) MINC shall be responsible for any and all Foreign Other Taxes attributable to the Motorola Business. Freescale shall be responsible for any and
all Foreign Other Taxes attributable to the Freescale Business. 
  
 Section 2.05 Certain Transaction and Other Taxes. 
  
 (a) Freescale Liability. Freescale shall be liable for, and shall indemnify and hold harmless the MINC Group from and against any liability for: 
  
 (i) Any stamp, sales and use, gross receipts, value-added or
other transfer Taxes imposed by any Tax Authority on any member of the Freescale Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 
  
 (ii) any Tax resulting from a breach by Freescale of any
covenant in this Agreement, the Master Separation and Distribution Agreement or any Ancillary Agreement; and 
  
 (iii) any Tax-Related Losses for which Freescale is responsible pursuant to Section 7.05 of this Agreement. 
  
 (b) MINC Liability. MINC shall be liable for, and shall
indemnify and hold harmless the Freescale Group from and against any liability for: 
  
 (i) Any stamp, sales and use, gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any member of the MINC
Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 
  
 (ii) any Tax resulting from a breach by MINC of any covenant in this Agreement, the Master Separation and Distribution Agreement or any
Ancillary Agreement; and 
  
 (iii) any
Tax-Related Losses for which MINC is responsible pursuant to Section 7.05 of this Agreement. 
  
 Section 2.06 Foreign Stock Distributions. Notwithstanding any other provision of this Agreement, (i) MINC shall be responsible for 50 percent of any Foreign Income Tax, if any, imposed solely with
respect to the distribution of shares of stock of a member of the MINC 

  

 12 

 
Group by a member of the Freescale Group pursuant to the Transactions (such distribution, a “Foreign Stock Distribution”), (ii) neither MINC
nor Freescale shall treat any Foreign Stock Distribution as giving rise to any Foreign Income Tax, unless otherwise required to do so pursuant to a Final Determination and (iii) MINC shall control in all respects, including as to settlement, any Tax
Contest, ruling request or other proceeding relating to any Foreign Stock Distribution. 
  
 Section 3. Proration of Taxes for Straddle Periods. 
  
 (a) General Method of Proration. In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Deconsolidation Periods and Post-Deconsolidation Periods in accordance with the principles
of Treasury Regulation Section 1.1502-76(b) as reasonably interpreted and applied by the Companies. No election shall be made under Treasury Regulation Section 1.1502-76(b)(2)(ii) (relating to ratable allocation of a year’s items). If the
Deconsolidation Date is not an Accounting Cutoff Date, the provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items (other than extraordinary items) for the month which includes the Deconsolidation
Date. 
  
 (b) Transaction Treated as Extraordinary
Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and Post-Deconsolidation Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulation Section
1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods, and any Taxes related to such items shall be treated under Treasury Regulation Section
1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods. 
  
 Section 4. Preparation and Filing of Tax Returns. 
  
 Section 4.01 General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed
when due (including extensions) by the person obligated to file such Tax Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance
with Section 8 with respect to the preparation and filing of Tax Returns, including providing information required to be provided in Section 8. 
  
 Section 4.02 MINC’s Responsibility. MINC has the exclusive obligation and right to prepare and file, or to cause to be prepared and
filed: 
  
 (a) MINC Federal Consolidated Income Tax Returns
for any Tax Periods ending on, before or after the Deconsolidation Date; 
  
 (b) MINC State Combined Income Tax Returns and any other Joint Returns which MINC reasonably determines are required to be filed (or which MINC chooses to be filed) by the Companies or any of their Affiliates
for Tax Periods ending on, before or after the Deconsolidation Date; provided, however, that MINC shall provide written notice of such determination to file such MINC State Combined Income Tax Returns or other Joint Returns to Freescale; and

  

 13 

 (c) MINC Separate Returns and Freescale Separate Returns which MINC reasonably determines are
required to be filed by the Companies or any of their Affiliates for Tax Periods ending on, before or after the Deconsolidation Date (limited, in the case of Freescale Separate Returns, to such Returns as are required to be filed for Tax Periods
ending on or prior to the Deconsolidation Date). 
  
 Section
4.03 Freescale Responsibility. Freescale shall prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members of the Freescale Group other than those Tax Returns which MINC is
required to prepare and file under Section 4.02. The Tax Returns required to be prepared and filed by Freescale under this Section 4.03 shall include (a) any Freescale Federal Consolidated Income Tax Return for Tax Periods ending after the
Deconsolidation Date and (b) Freescale Separate Returns required to be filed for Tax periods ending after the Deconsolidation Date. 
  
 Section 4.04 Tax Accounting Practices. 
  
 (a) General Rule. Except as provided in Section 4.04(b), with respect to any Tax Return that Freescale has the obligation and right to
prepare and file, or cause to be prepared and filed, under Section 4.03, for any Pre-Deconsolidation Period or any Straddle Period (or any taxable period beginning after the Deconsolidation Date to the extent items reported on such Tax Return might
reasonably be expected to affect items reported on any Tax Return for any Pre-Deconsolidation Period or any Straddle Period), such Tax Return shall be prepared in accordance with past practices (in the case of any such Tax Return for a taxable
period beginning after the Deconsolidation Date, limited to past practices regarding the reporting of items on Schedule M-1 of the MINC Federal Consolidated Income Tax Return or any similar schedule of any other Tax Return required to be filed by
MINC under this Agreement), accounting methods, elections or conventions (“Past Practices”) used with respect to the Tax Returns in question (unless there is no reasonable basis for the use of such Past Practices), and to the extent
any items are not covered by Past Practices (or in the event that there is no reasonable basis for the use of such Past Practices), in accordance with reasonable Tax accounting practices selected by Freescale. Except as provided in Section 4.04(b),
MINC shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.02, in accordance with reasonable Tax accounting practices selected by MINC. 
  
 (b) Reporting of Transaction Tax Items. The Tax treatment
reported on any Tax Return of the Transactions shall be consistent with the treatment thereof in the Ruling Requests and the Tax Opinions/Rulings (and any Tax Return filed by MINC or any member of the MINC Group or caused to be filed by MINC, in
each case with respect to periods prior to the Distribution Date or with respect to Straddle Periods), unless there is no reasonable basis for such Tax treatment. To the extent there is a Tax treatment relating to the Transactions which is not
covered by the Ruling Requests or Tax Opinions/Rulings, the Companies shall agree on the Tax treatment to be reported on any Tax Return. For this purpose, the Tax treatment shall be determined by the Responsible Company with respect to such Tax
Return and shall be agreed to by the other Company unless either (i) there is no reasonable basis for such Tax treatment, or (ii) such Tax treatment is inconsistent with the Tax treatment contemplated in the Ruling Requests and/or the Tax
Opinions/Rulings. Such Tax Return shall be submitted for review pursuant to Section 4.06(a), and any dispute regarding such proper Tax treatment shall be referred for 

  

 14 

 
resolution pursuant to Section 14, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely filing of the Tax
Return. 
  
 Section 4.05 Consolidated or Combined Tax
Returns. Freescale will elect and join, and will cause its respective Affiliates to elect and join, in filing any MINC State Combined Income Tax Returns and any Joint Returns that MINC determines are required to be filed or that MINC chooses to
file pursuant to Section 4.02(b). With respect to any Freescale Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the Distribution Date, Freescale will elect and join, and will cause its respective Affiliates to
elect and join, in filing consolidated, unitary, combined, or other similar joint Tax Returns, to the extent each entity is eligible to join in such Tax Returns, if MINC reasonably determines that the filing of such Tax Returns is consistent with
past reporting practices, or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax to the entities eligible to join in such Tax Returns. 
  
 Section 4.06 Right to Review Tax Returns. 
  
 (a) General. The Responsible Company with respect to any
material Tax Return shall make such Tax Return and related workpapers available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to be
liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of such Taxes reported on such Tax Return,
(iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party reasonably determines that it must inspect such Tax Return to
confirm compliance with the terms of this Agreement. The Responsible Company shall use its reasonable best efforts to make such Tax Return available for review as required under this paragraph sufficiently in advance of the due date for filing of
such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such Tax Return and shall use its reasonable best efforts to have such Tax Return modified before filing, taking into account the person
responsible for payment of the Tax (if any) reported on such Tax Return and whether the amount of Tax liability with respect to such Tax Return is material. The Companies shall attempt in good faith to resolve any issues arising out of the review of
such Tax Return. For purposes of this section 4.06(a), a Tax Return is “material” if it could reasonably be expected to reflect (A) Tax liability equal to or in excess of $1 million, (B) a credit or credits equal to or in excess of $1
million or (C) a loss or losses equal to or in excess of $3 million. 
  
 (b) Execution of Returns Prepared by Other Party. In the case of any Tax Return which is required to be prepared and filed by one Company under this Agreement and which is required by law to be signed by the other Company (or
by its authorized representative), the Company which is legally required to sign such Tax Return shall not be required to sign such Tax Return under this Agreement if there is no reasonable basis for the Tax treatment of any item reported on the Tax
Return or the Tax treatment of any item reported on the Tax Return should, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, subject the other Company (or its authorized
representatives) to material penalties. 
  

 15 

 Section 4.07 Freescale Carrybacks and Claims for Refund. Freescale hereby agrees that,
unless MINC consents in writing, (i) no Adjustment Request with respect to any Joint Return (or any Return of Other Taxes described in clause (II) of Section 5.02) shall be filed, and (ii) any available elections to waive the right to claim in any
Pre-Deconsolidation Period with respect to any Joint Return (or any Return of Other Taxes described in clause (II) of Section 5.02) any Freescale Carryback arising in a Post-Deconsolidation Period shall be made, and no affirmative election shall be
made to claim any such Freescale Carryback; provided, however, that the parties agree that any such Adjustment Request shall be made with respect to any Freescale Carryback related to U.S. federal or State Taxes, upon the reasonable request
of Freescale, if such Freescale Carryback is necessary to prevent the loss of the federal and/or State Tax Benefit of such Freescale Carryback (including, but not limited to, an Adjustment Request with respect to a Freescale Carryback of a federal
or State capital loss arising in a Post-Deconsolidation Period to a Pre-Deconsolidation Period) and such Adjustment Request, based on MINC’s sole, reasonable determination, will cause no Tax detriment to MINC, the MINC Group or any member of
the MINC Group. Any Adjustment Request which MINC consents to make under this Section 4.07 shall be prepared and filed by the Responsible Company for the Tax Return to be adjusted. 
  
 Section 4.08 Apportionment of Earnings and Profits and Tax Attributes. MINC shall in good faith advise
Freescale in writing of the portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other consolidated, combined or unitary attribute which MINC determines shall be allocated or apportioned to the Freescale Group under
applicable law. Freescale and all members of the Freescale Group shall prepare all Tax Returns in accordance with such written notice. In the event that any temporary or final amendments to Treasury Regulations are promulgated after the date of this
Agreement that provide for any election to apply such regulations retroactively, then any such election shall be made only to the extent that Motorola and Freescale collectively agree to make such election. As soon as practicable after receipt of a
written request from Freescale, MINC shall provide copies of any studies, reports, and workpapers supporting the earnings and profits and other Tax Attributes allocable to Freescale. Any dispute regarding the apportionment of such earnings and
profits or any Tax Attribute shall be resolved pursuant to the provisions of Section 14 of this Agreement. All Tax Returns that are required to be filed under this Agreement after such resolution shall be filed in accordance with such resolution. In
the event of a subsequent adjustment to the earnings and profits or any Tax Attributes determined by MINC, MINC shall promptly notify Freescale in writing of such adjustment. For the absence of doubt, MINC shall not be liable to Freescale or any
member of the Freescale Group for any failure of any determination under this Section 4.08 to be accurate under applicable law. 
  
 Section 5. Tax Payments. 
  
 Section 5.01 Payment of Taxes with Respect to MINC Federal Consolidated Income Tax Returns. MINC shall pay to the IRS any Tax due with
respect to any MINC Federal Consolidated Income Tax Return (including any Federal Income Tax due from the MINC Affiliated Group that is required to be paid as a result of an adjustment to a MINC Federal Consolidated Income Tax Return). 

  
 Section 5.02 Payment of Taxes With Respect to Joint
Returns (other than a MINC Federal Consolidated Income Tax Return) and Certain Returns of Other Taxes. In the case of (I)  

  

 16 

 
any Joint Return (other than a MINC Federal Consolidated Tax Return) and (II) any Return of Other Taxes reflecting both Taxes for which MINC is responsible
under Section 2 and Taxes for which Freescale is responsible under Section 2: 
  
 (a) Computation and Payment of Tax Due. At least three business days prior to any Payment Date for any Tax Return, the Responsible Company shall compute the amount of Tax required to be paid to the
applicable Tax Authority (taking into account the requirements of Section 4.04 relating to consistent accounting practices) with respect to such Tax Return on such Payment Date. The Responsible Company shall pay such amount to such Tax Authority on
or before such Payment Date (and provide notice and proof of payment to the other Company). 
  
 (b) Computation and Payment of Liability With Respect To Tax Due. Within 30 days following the earlier of (i) the due date (including extensions) for filing any such Tax Return (excluding any Tax Return
with respect to payment of estimated Taxes or Taxes due with a request for extension of time to file) or (ii) the date on which such Tax Return is filed, if MINC is the Responsible Company, then Freescale shall pay to MINC (or MINC shall pay to
Freescale) the amount allocable to the Freescale Group (or the amount to which the Freescale Group is entitled) under the provisions of Section 2, and if Freescale is the Responsible Company, then MINC shall pay to Freescale (or Freescale shall pay
to MINC) the amount allocable to the MINC Group (or the amount to which the MINC Group is entitled) under the provisions of Section 2, in each case, plus interest computed at the Prime Rate on the amount of the payment based on the number of days
from the earlier of (i) the due date of the Tax Return (including extensions) or (ii) the date on which such Tax Return is filed, to the date of payment. 
  
 (c) Adjustments Resulting in Underpayments. In the case of any adjustment pursuant to a Final Determination with respect to any such Tax
Return, the Responsible Company shall pay to the applicable Tax Authority when due any additional Tax due with respect to such Return required to be paid as a result of such adjustment pursuant to a Final Determination. The Responsible Company shall
compute the amount attributable to the Freescale Group in accordance with Section 2 and Freescale shall pay to MINC any amount due MINC (or MINC shall pay Freescale any amount due Freescale) under Section 2 within 30 days from the later of (i) the
date the additional Tax was paid by the Responsible Company or (ii) the date of receipt of a written notice and demand from the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes
paid and describing in reasonable detail the particulars relating thereto. Any payments required under this Section 5.02(c) shall include interest computed at the Prime Rate based on the number of days from the date the additional Tax was paid by
the Responsible Company to the date of the payment under this Section 5.02(c). 
  
 (d) Any payments made by MINC to Freescale pursuant to Section 2.03(a)(i)(B) shall be recalculated in light of any Final Determination (or any other facts that may arise or come to light after such
payment is made, such as a carryback of a MINC Group Tax Attribute to a Tax Period in respect of which a payment was made by MINC to Freescale under Section 2.03(a)(i)(B)) that would affect the calculation set forth in Section 2.03(a)(i)(B) and an
appropriate adjusting payment shall be made by Freescale to MINC (or by MINC to Freescale) such that the aggregate amounts paid pursuant to Section 2.03(a)(i)(B) equal such recalculated amount (with interest computed at the Prime Rate). 

 

 17 

 Section 5.03 Payment of Separate Company Taxes. Each Company shall pay, or shall cause to
be paid, to the applicable Tax Authority when due all Taxes owed by such Company or a member of such Company’s Group with respect to a Separate Return of Income Taxes and with respect to a Separate Return of Other Taxes (provided that Separate
Returns of Other Taxes described in clause (II) of Section 5.02 shall be governed by Section 5.02). 
  
 Section 5.04 Indemnification Payments. 
  
 (a) If any Company (the “Payor”) is required under applicable Tax Law to pay to a Tax Authority a Tax that another Company (the
“Required Party”) is required to pay to such Tax Authority under this Agreement, the Required Party shall reimburse the Payor within 30 days of delivery by the Payor to the Required Party of an invoice for the amount due,
accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. The reimbursement shall include interest on the Tax payment computed at the Prime Rate based on the
number of days from the date of the payment to the Tax Authority to the date of reimbursement under this Section 5.04. 
  
 (b) All indemnification payments under this Agreement shall be made by MINC directly to Freescale and by Freescale directly to MINC; provided,
however, that if the Companies mutually agree with respect to any such indemnification payment, any member of the MINC Group, on the one hand, may make such indemnification payment to any member of the Freescale Group, on the other hand, and
vice versa. 
  
 Section 6. Tax Benefits. 
  
 Section 6.01 Tax Benefits. 
  
 (a) Except as set forth below, MINC shall be entitled to any
refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which MINC is liable hereunder, Freescale shall be entitled to any refund (and any interest thereon received from the applicable Tax
Authority) of Income Taxes and Other Taxes for which Freescale is liable hereunder and a Company receiving a refund to which another Company is entitled hereunder shall pay over such refund to such other Company within thirty days after such refund
is received (together with interest computed at the Prime Rate based on the number of days from the date the refund was received to the date the refund was paid over). 
  
 (b) If a member of the Freescale Group realizes (or will realize) any Tax Benefit as a result of an adjustment (other
than an adjustment set forth in Schedule 6.01(b), as such Schedule 6.01(b) may be amended by mutual agreement by the Companies prior to the date of the IPO) pursuant to a Final Determination to any Taxes (other than Foreign Income Taxes) for which a
member of the MINC Group is liable hereunder (or Tax Attribute of a member of the MINC Group, or of any consolidated, combined or unitary group the Taxes of which MINC is liable for hereunder), or if a member of the MINC Group realizes (or will
realize) any Tax Benefit as a result of an adjustment (other than an adjustment set forth in Schedule 6.01(b), as such Schedule 6.01(b) may be amended by mutual agreement by the Companies prior to the date of the IPO) pursuant to a Final
Determination to any Taxes (other than Foreign Income Taxes) for which a member of the Freescale Group is liable hereunder (or Tax Attribute of a member of the Freescale Group), Freescale or MINC, as the case may be, shall make a payment to either
MINC 

  

 18 

 
or Freescale, respectively, within 364 days following such Final Determination in an amount equal to such Tax Benefit (including any such Tax Benefit not yet
realized). For purposes of determining the amount of any Tax Benefit, the Freescale Group or MINC Group (or the applicable member thereof) (A) shall be deemed to realize such Tax Benefit in the first taxable year (or years) that such Tax Benefit (or
the Tax Attribute giving rise to such Tax Benefit) may be realized and utilized under applicable law (in the case of a Tax Benefit arising from additional basis in an asset, in no event later than the date of the Final Determination), (B) shall be
deemed to pay Tax at the highest marginal corporate Tax rates in effect in each relevant taxable year (or in the case of taxable years subsequent to the taxable year in which the Final Determination occurs, the highest marginal corporate Tax rates
in effect in the taxable year of the Final Determination) and (C) shall be deemed to have no Tax Attributes other than those giving rise to such Tax Benefit. 
  
 (c) If a member of the Freescale Group actually realizes pursuant to a Final Determination any Tax Benefit as a result of an adjustment
pursuant to a Final Determination to any Foreign Income Taxes for which a member of the MINC Group is liable hereunder (or Foreign Income Tax Attribute of a member of the MINC Group) and such Tax Benefit would not have arisen but for such
adjustment, or if a member of the MINC Group actually realizes pursuant to a Final Determination any Tax Benefit as a result of an adjustment pursuant to a Final Determination to any Foreign Income Taxes for which a member of the Freescale Group is
liable hereunder (or Foreign Income Tax Attribute of a member of the Freescale Group) and such Tax Benefit would not have arisen but for such adjustment, Freescale or MINC, as the case may be, shall make a payment to either MINC or Freescale, as
appropriate, within 30 days following such actual realization of the Tax Benefit, in an amount equal to such Tax Benefit actually realized (including any Tax Benefit actually realized as a result of the payment), plus interest on such amount
computed at the Prime Rate based on the number of days from the date of such actual realization of the Tax Benefit to the date of payment of such amount under this Section 6.01(c). 
  
 (d) No later than 30 days after the date of a Final Determination referred to in Section 6.01(b), MINC (if a member
of the MINC Group receives such Final Determination) or Freescale (if a member of the Freescale Group receives such Final Determination) shall provide the other Company with a written calculation of the amount payable by such other Company to MINC
or Freescale pursuant to this Section 6. No later than 30 days after a Tax Benefit described in Section 6.01(c) is actually realized by a member of the MINC Group or a member of the Freescale Group, MINC (if a member of the MINC Group actually
realizes such Tax Benefit) or Freescale (if a member of the Freescale Group actually realizes such Tax Benefit) shall provide the other Company with a written calculation of the amount payable to such other Company by MINC or Freescale pursuant to
this Section 6. In the event that MINC or Freescale disagrees with any such calculation described in this Section 6.01(d), MINC or Freescale shall so notify the other Company in writing within 30 days of receiving the written calculation set forth
above in this Section 6.01(d). MINC and Freescale shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable under this Section 6 shall be determined in accordance with the disagreement resolution provisions of
Section 14 as promptly as practicable. 
  
 (e)
Freescale shall be entitled to any refund that is attributable to, and would not have arisen but for, a Freescale Carryback pursuant to the proviso set forth in Section 4.07. Any such 

  

 19 

 
payment of such refund made by MINC to Freescale pursuant to this Section 6.01(e) shall be recalculated in light of any Final Determination (or any other
facts that may arise or come to light after such payment is made, such as a carryback of a MINC Group Tax Attribute to a Tax Period in respect of which such refund is received) that would affect the amount to which Freescale is entitled, and an
appropriate adjusting payment shall be made by Freescale to MINC such that the aggregate amounts paid pursuant to this Section 6.01(e) equals such recalculated amount (with interest computed at the Prime Rate). 
  
 Section 7. Tax-Free Status. 
  
 Section 7.01 Tax Opinions/Rulings and Representation
Letters. 
  
 (a) Each of Freescale
and MINC hereby represents and agrees that (A) it will read the Representation Letters prior to the date submitted and (B) subject to any qualifications therein, all information contained in such Representation Letters that concerns or relates to
such Company or any Affiliate of such Company will be true, correct and complete. 
  
 (b) Freescale and MINC acknowledge that the Tax Opinions/Rulings and the Representation Letters have not yet been obtained or submitted and may not be obtained or submitted until after the IPO. Freescale and
MINC shall use their commercially reasonable efforts and shall cooperate in good faith to finalize the Representation Letters for the Distribution as soon as possible hereafter and to cause the same to be submitted to the Tax Advisors, the IRS or
such other governmental authorities as MINC shall deem necessary or desirable and shall take such other commercially reasonable actions as may be necessary or desirable to obtain the Tax Opinions/Rulings in order to confirm the Tax-Free Status.

  
 Section 7.02 Restrictions on Freescale. 

  
 (a) Freescale agrees that it will not take
or fail to take, or permit any Freescale Affiliate to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation
Letters or Tax Opinions/Rulings. Freescale agrees that it will not take or fail to take, or permit any Freescale Affiliate to take or fail to take, any action which prevents or could reasonably be expected to prevent (A) the Tax-Free Status, or (B)
any transaction contemplated by the Master Separation and Distribution Agreement which is intended by the parties to be tax-free (including, but not limited to, those transactions listed on Schedule 7.02(a)) from so qualifying, including issuing any
Freescale Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code. 
  
 (b) Pre-Distribution Period. During the period from the date hereof until the completion of the Distribution, Freescale shall not take any
action (including the issuance of Freescale Capital Stock) or permit any Freescale Affiliate directly or indirectly controlled by Freescale to take any action if, as a result of taking such action, Freescale could have a number of shares of
Freescale Capital Stock (computed on a fully diluted basis or otherwise) issued and outstanding, including by way of the exercise of stock options (whether or not such stock options are currently exercisable) or the issuance of restricted stock,
that could cause MINC to cease to have Tax Control of Freescale. 
  

 20 

 (c) Freescale agrees that, from the date hereof until the first day after the two-year anniversary
of the Distribution Date, it will (i) maintain its status as a company directly engaged in the Active Trade or Business and (ii) not engage in any transaction that would result in it ceasing to be a company directly engaged in the Active Trade or
Business. 
  
 (d) Freescale agrees that, from the date
hereof until the first day after the two-year anniversary of the Distribution Date, it will not (i) enter into any Proposed Acquisition Transaction or, to the extent Freescale has the right to prohibit any Proposed Acquisition Transaction, permit
any Proposed Acquisition Transaction to occur (whether by (a) redeeming rights under a shareholder rights plan, (b) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable
or neutralized with respect to any Proposed Acquisition Transaction, or (c) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other
provision of Freescale’s charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions sell or transfer (other than sales or
transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to Freescale pursuant to the Contribution or sell or transfer 60% or more of the gross assets of the Active Trade or Business or
60% or more of the consolidated gross assets of Freescale and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), (iv) redeem or otherwise repurchase (directly or through a Freescale Affiliate)
any Freescale stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30, (v) amend its certificate of incorporation (or other organizational documents), or take any other action,
whether through a stockholder vote or otherwise, affecting the relative voting rights of the separate classes of Freescale Capital Stock (including, without limitation, through the conversion of one class of Freescale Capital Stock into another
class of Freescale Capital Stock) or (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation made in the Representation Letters or the Tax
Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or permitting one or more persons (whether or not acting in
concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Freescale or otherwise jeopardize the Tax-Free Status, unless prior to taking any such action set forth in the foregoing clauses (i) through (vi),
(A) Freescale shall have requested that MINC obtain a Ruling in accordance with Section 7.04(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and MINC shall have received such a Ruling in form and
substance satisfactory to MINC in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether a Ruling is satisfactory, MINC may consider, among other
factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such Ruling), or (B) Freescale shall provide MINC with an Unqualified Tax Opinion in form and substance satisfactory to MINC in
its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether an opinion is satisfactory, MINC may consider, among other factors, the appropriateness of any
underlying assumptions and management’s representations if used as a basis for the opinion and MINC may determine that no opinion would be acceptable to MINC) or (C) MINC shall have waived the requirement to obtain such ruling or opinion.

  

 21 

 (e) Certain Issuances of Freescale Capital Stock. If Freescale proposes to enter into any
Section 7.02(e) Acquisition Transaction or, to the extent Freescale has the right to prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction to occur, in each case, during the period from
the date hereof until the first day after the two-year anniversary of the Distribution Date, Freescale shall provide Motorola, no later than ten days following the signing of any written agreement with respect to the Section 7.02(e) Acquisition
Transaction, with a written description of such transaction (including the type and amount of Freescale Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of Freescale to the effect that the Section 7.02(e)
Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 7.02(d) apply (a “Board Certificate”). 
  
 (f) Freescale Internal Restructuring. Freescale shall not engage in any internal restructuring (including by
making or revoking any election under Treasury Regulation Section 301.7701-3) involving Freescale and/or any of its subsidiaries or contribute any of the assets contributed to Freescale as part of the Contribution to any subsidiary of Freescale (any
such action, an “Internal Restructuring”) during or with respect to any taxable period (or portion thereof) ending on the Distribution Date without obtaining the prior written consent of MINC (such prior written consent not to be
unreasonably withheld). Freescale shall provide written notice to MINC describing any Internal Restructuring proposed to be taken during or with respect to any taxable period (or portion thereof) beginning after the Distribution Date and ending on
or prior to the two-year anniversary of the Distribution Date and shall consult with MINC regarding any such proposed actions reasonably in advance of taking any such proposed actions. 
  
 (g) Distributions by Foreign Freescale Subsidiaries. Until January 1st of the calendar year immediately following the calendar year in which the Distribution occurs, Freescale shall neither cause nor permit any foreign
subsidiary of Freescale to enter into any transaction or take any action that would be considered under the Code to constitute the declaration or payment of a dividend (including pursuant to Section 304 of the Code) without obtaining the prior
written consent of MINC (such prior written consent not to be unreasonably withheld). 
  
 Section 7.03 Restrictions on MINC. MINC agrees that it will not take or fail to take, or permit any member of the MINC Group to take or fail to take, any action where such action or failure to act would
be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters or Tax Opinions/Rulings. MINC agrees that it will not take or fail to take, or permit any member of the MINC Group to take
or fail to take, any action which prevents or could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any other transaction contemplated by the Master Separation and Distribution Agreement which is intended by the parties to be
tax-free from so qualifying; provided, however, that this Section 7.03 shall not be construed as obligating MINC to consummate the Distribution without the satisfaction or waiver of all conditions set forth in Section 4.3 of the Master
Separation and Distribution Agreement nor shall it be construed as preventing MINC from terminating the Master Separation and Distribution Agreement pursuant to Section 9.14 thereof. 
  

 22 

 Section 7.04 Procedures Regarding Opinions and Rulings. 
  
 (a) If Freescale notifies MINC that it desires to take one of the
actions described in clauses (i) through (vi) of Section 7.02(d) (a “Notified Action”), MINC and Freescale shall reasonably cooperate to attempt to obtain the ruling or opinion referred to in Section 7.02(d), unless MINC shall have
waived the requirement to obtain such ruling or opinion. 
  
 (b) Rulings or Unqualified Tax Opinions at Freescale’s Request. MINC agrees that at the reasonable request of Freescale pursuant to Section 7.02(d), MINC shall cooperate with Freescale and use its reasonable best efforts
to seek to obtain, as expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of permitting Freescale to take the Notified Action. Further, in no event shall MINC be required to file any Ruling Request under
this Section 7.04(b) unless Freescale represents that (A) it has read the Ruling Request, and (B) all information and representations, if any, relating to any member of the Freescale Group, contained in the Ruling Request documents are (subject to
any qualifications therein) true, correct and complete. Freescale shall reimburse MINC for all reasonable costs and expenses incurred by the MINC Group in obtaining a Ruling or Unqualified Tax Opinion requested by Freescale within ten business days
after receiving an invoice from MINC therefor. 
  
 (c)
Rulings or Unqualified Tax Opinions at MINC’s Request. MINC shall have the right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If MINC determines to obtain a Ruling or an Unqualified
Tax Opinion, Freescale shall (and shall cause each Affiliate of Freescale to) cooperate with MINC and take any and all actions reasonably requested by MINC in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without
limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Advisor; provided that Freescale shall not be required to make (or cause any Affiliate of Freescale to make) any
representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). MINC and Freescale shall each bear its own costs and expenses in obtaining a Ruling or an Unqualified Tax Opinion
requested by MINC. 
  
 (d) Freescale hereby agrees that
MINC shall have sole and exclusive control over the process of obtaining any Ruling, and that only MINC shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 7.04(b), (A) MINC shall keep Freescale informed in a timely
manner of all material actions taken or proposed to be taken by MINC in connection therewith; (B) MINC shall (1) reasonably in advance of the submission of any Ruling Request documents provide Freescale with a draft copy thereof, (2) reasonably
consider Freescale’s comments on such draft copy, and (3) provide Freescale with a final copy; and (C) MINC shall provide Freescale with notice reasonably in advance of, and Freescale shall have the right to attend, any formally scheduled
meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither Freescale nor any Freescale Affiliate directly or indirectly controlled by Freescale shall seek any guidance from the IRS or any other Tax Authority
(whether written, verbal or otherwise) at any time concerning the Contribution or the Distribution (including the impact of any transaction on the Contribution or the Distribution) or any transaction listed on Schedule 7.02(a). 
  
 Section 7.05 Liability for Tax-Related Losses.  
  
 (a) Notwithstanding anything in this Agreement or the Master
Separation and Distribution Agreement to the contrary, subject to Section 7.05(c), Freescale shall be responsible 

  

 23 

 
for, and shall indemnify and hold harmless MINC and its Affiliates and each of their respective officers, directors and employees from and against, one
hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution, as defined in the Master Separation and Distribution Agreement,
the Distribution or the actions set forth in Section 3.4 of the Master Separation and Distribution Agreement) of all or a portion of Freescale’s stock and/or its assets by any means whatsoever by any Person, (B) any negotiations,
understandings, agreements or arrangements by Freescale with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or
acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Freescale representing a Fifty-Percent or Greater
Interest therein, (C) any action or failure to act by Freescale after the IPO (including, without limitation, any amendment to Freescale’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or
otherwise) affecting the relative voting rights of the separate classes of Freescale stock (including, without limitation, through the conversion of one class of Freescale Capital Stock into another class of Freescale Capital Stock), (D) any act or
failure to act by Freescale or any Freescale Affiliate described in Section 7.02 (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 7.02(d), a Board
Certificate described in Section 7.02(e) or a consent described in Section 7.02(f) or (g)) or (E) any breach by Freescale of its agreement and representation set forth in Section 7.01(a). 
  
 (b) Notwithstanding anything in this Agreement or the Master Separation and Distribution Agreement to the contrary,
subject to Section 7.05(c), MINC shall be responsible for, and shall indemnify and hold harmless Freescale and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any
Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution, as defined in the Master Separation and Distribution Agreement, the Distribution or the
actions set forth in Section 3.4 of the Master Separation and Distribution Agreement) of all or a portion of MINC’s stock and/or its assets by any means whatsoever by any Person other than an Affiliate of MINC, (B) any negotiations, agreements
or arrangements by MINC with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such
transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of MINC representing a Fifty-Percent or Greater Interest therein, (C) any act or failure
to act by MINC or a member of the MINC Group described in Section 7.03 or (D) any breach by MINC of its agreement and representation set forth in Section 7.01(a). 
  
 (c) To the extent that any Tax-Related Loss is subject to indemnity under both Sections 7.05(a) and (b),
responsibility for such Tax-Related Loss shall be shared by MINC and Freescale according to relative fault. 
  

 24 

 Section 8. Assistance and Cooperation. 
  
 Section 8.01 Assistance and Cooperation. 
  
 (a) After the IPO, the Companies shall cooperate (and cause their
respective Affiliates to cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates including (i) preparation and filing
of Tax Returns, (ii) determining the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in
respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making all information and documents in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 9.
Each of the Companies shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective Affiliates) responsible for preparing,
maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to
Taxes. In the event that a member of the MINC Group, on the one hand, or a member of the Freescale Group, on the other hand, suffers a Tax detriment as a result of a Transfer Pricing Adjustment, the Companies shall cooperate pursuant to this Section
8 to seek any competent authority relief that may be available with respect to such Transfer Pricing Adjustment. 
  
 (b) Any information or documents provided under this Section 8 shall be kept confidential by the Company receiving the information or documents,
except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding any other provision of this Agreement or any other agreement, (i)
neither MINC nor any MINC Affiliate shall be required to provide Freescale, any Freescale Affiliate or any other Person access to or copies of any information or procedures (including the proceedings of any Tax Contest) other than information or
procedures that relate solely to Freescale, a Freescale Affiliate or the business or assets of Freescale or any Freescale Affiliate and (ii) in no event shall MINC or any MINC Affiliate be required to provide Freescale, any Freescale Affiliate or
any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that MINC determines that the provision of any information to Freescale or any
Freescale Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this Section 8 in a manner that avoids any such
harm or consequence. 
  
 Section 8.02 Income Tax Return
Information. Freescale and MINC acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by MINC or Freescale pursuant to Section 8.01 or this Section 8.02. Freescale and MINC acknowledge
that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by MINC or Freescale could cause irreparable harm. 
  
 (a) Each Company shall provide to the other Company information and documents relating to its Group required by the other Company to prepare Tax
Returns. Any information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form as the Responsible Company reasonably requests and in sufficient time for the Responsible Company to file such Tax
Returns on a timely basis. 
  

 25 

 (b) At Freescale’s sole expense, Freescale shall provide to MINC the information set forth on
Schedule 8.02(b) in accordance with the deadlines set forth on such Schedule, and shall provide such other information reasonably requested in writing by MINC in connection with the preparation of Tax Returns in accordance with the deadlines set
forth in such written request. 
  
 (c) In the event that
Freescale fails to provide any information requested by MINC pursuant to Section 8.01 or this Section 8.02, within the deadlines as set forth herein (or otherwise reasonably set by MINC and agreed to by Freescale, such agreement not to be
unreasonably withheld), MINC shall have the right to engage a nationally recognized public accounting firm of its choice (the “Accountant”), in its sole and absolute discretion, to gather such information directly from Freescale or
any other members of the Freescale Group. Freescale and all members of the Freescale Group agree, upon ten business days’ notice by MINC, in the case of a failure by Freescale to provide information pursuant to Section 8.01 or this Section
8.02, to permit any such Accountant full access to all records or other information requested by such Accountant that are in the possession of Freescale or any member of the Freescale Group during reasonable business hours. Freescale agrees to
promptly pay MINC all reasonable costs and expenses incurred by MINC in connection with the engagement of such Accountant. 
  
 Section 8.03 Reliance by MINC. If any member of the Freescale Group supplies information to a member of the MINC Group in connection with a
Tax liability and an officer of a member of the MINC Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the MINC Group identifying
the information being so relied upon, the chief financial officer of Freescale (or any officer of Freescale as designated by the chief financial officer of Freescale) shall certify in writing that to his or her knowledge (based upon consultation
with appropriate employees) the information so supplied is accurate and complete. Freescale agrees to indemnify and hold harmless each member of the MINC Group and its directors, officers and employees from and against any fine, penalty, or other
cost or expense of any kind attributable to a member of the Freescale Group having supplied, pursuant to this Section 8, a member of the MINC Group with inaccurate or incomplete information in connection with a Tax liability. 
  
 Section 8.04 Reliance by Freescale. If any member of the MINC
Group supplies information to a member of the Freescale Group in connection with a Tax liability and an officer of a member of the Freescale Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such
information, then upon the written request of such member of the Freescale Group identifying the information being so relied upon, the chief financial officer of MINC (or any officer of MINC as designated by the chief financial officer of MINC)
shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. MINC agrees to indemnify and hold harmless each member of the Freescale Group and its
directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to a member of the MINC Group having supplied, pursuant to this Section 8, a member of the Freescale Group with inaccurate or
incomplete information in connection with a Tax liability. 
  

 26 

 Section 9. Tax Records. 
  
 Section 9.01 Retention of Tax Records. Each Company shall preserve and keep all Tax Records exclusively
relating to the assets and activities of its Group for Pre-Deconsolidation Periods, and MINC shall preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may
become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any applicable statutes of limitation, or (ii) seven years after the Deconsolidation Date.
After such later date, each Company may dispose of such records upon 90 days’ prior written notice to the other Company. If, prior to the expiration of the applicable statute of limitation or such seven-year period, a Company reasonably
determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 9 are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then
such first Company may dispose of such records upon 90 days’ prior notice to the other Company. Any notice of an intent to dispose given pursuant to this Section 9.01 shall include a list of the records to be disposed of describing in
reasonable detail each file, book, or other record accumulation being disposed. The notified Company shall have the opportunity, at its cost and expense, to copy or remove, within such 90-day period, all or any part of such Tax Records. 

 
 Section 9.02 Access to Tax Records. The Companies and their
respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records in their possession to the extent reasonably required by the other Company in connection with the
preparation of Tax Returns, audits, litigation, or the resolution of items under this Agreement. 
  
 Section 10. Tax Contests. 
  
 Section 10.01 Notice. Each of the parties shall provide prompt notice to the other party of any written communication from a Tax Authority
regarding any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware related to Taxes for Tax Periods for which it is indemnified by the other party hereunder. Such notice shall attach copies of the
pertinent portion of any written communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents
received from any Tax Authority in respect of any such matters. If an indemnified party has knowledge of an asserted Tax liability with respect to a matter for which it is to be indemnified hereunder and such party fails to give the indemnifying
party prompt notice of such asserted Tax liability and the indemnifying party is entitled under this agreement to contest the asserted Tax liability, then (i) if the indemnifying party is precluded from contesting the asserted Tax liability in any
forum as a result of the failure to give prompt notice, the indemnifying party shall have no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax liability, and (ii) if the indemnifying party is not precluded
from contesting the asserted Tax liability in any forum, but such failure to give prompt notice results in a material monetary detriment to the indemnifying party, then any amount which the indemnifying party is otherwise required to pay the
indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment. 
  

 27 

 Section 10.02 Control of Tax Contests. 
  
 (a) Separate Company Taxes. In the case of any Tax Contest with
respect to any Separate Return (other than a Separate Return of Other Taxes described in clause (II) of Section 5.02), the Company having liability for the Tax shall have exclusive control over the Tax Contest, including exclusive authority with
respect to any settlement of such Tax liability, subject to Sections 10.02(e) and (f) below. 
  
 (b) MINC Federal Consolidated Income Tax Return. In the case of any Tax Contest with respect to any MINC Federal Consolidated Income Tax Return, MINC shall have exclusive control over the Tax Contest,
including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(e) and (f) below. 
  
 (c) MINC State Combined Income Tax Return. In the case of any Tax Contest with respect to any MINC State Combined Income Tax Return, MINC
shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(e) and (f) below. 
  
 (d) Joint Returns and Certain Other Returns. In the case of any Tax Contest with respect to (I) any Joint
Return (other than any MINC Federal Consolidated Income Tax Return or any MINC State Combined Income Tax Return) or (II) any Return of Other Taxes described in clause (II) of Section 5.02, (i) MINC shall control the defense or prosecution of the
portion of the Tax Contest directly and exclusively related to any MINC Adjustment, including settlement of any such MINC Adjustment and (ii) Freescale shall control the defense or prosecution of the portion of the Tax Contest directly and
exclusively related to any Freescale Adjustment, including settlement of any such Freescale Adjustment, and (iii) the Tax Contest Committee shall control the defense or prosecution of Joint Adjustments and any and all administrative matters not
directly and exclusively related to any MINC Adjustment or Freescale Adjustment. The “Tax Contest Committee” shall be comprised of two persons, one person selected by MINC (as designated in writing to Freescale) and one person
selected by Freescale (as designated in writing to MINC). Each person serving on the Tax Contest Committee shall continue to serve unless and until he or she is replaced by the party designating such person. Any and all matters to be decided by the
Tax Contest Committee shall require the unanimous approval of both persons serving on the committee. In the event the Tax Contest Committee shall be deadlocked on any matter, the provisions of Section 14 of this Agreement shall apply. 
  
 (e) Settlement Rights. The Controlling Party shall have the
sole right to contest, litigate, compromise and settle any Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in a Tax Contest as a
result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall keep
the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall provide the Non-Controlling
Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings
submitted to any Tax Authority or judicial authority in connection 

  

 28 

 
with such potential adjustment in such Tax Contest; (iv) the Controlling Party shall consult with the Non-Controlling Party and offer the Non-Controlling
Party a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest; and (v) the Controlling Party shall defend such Tax Contest diligently and in
good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the
Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may
have to the Controlling Party. In the case of any Tax Contest described in Section 10.02(a), (b) or (c), “Controlling Party” means the Company entitled to control the Tax Contest under such Section and “Non-Controlling
Party” means the other Company. 
  
 (f) Tax
Contest Participation. Unless waived by the parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to attend, any
formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to become
liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement. The failure of the Controlling Party to provide any notice specified in this Section 10.02(f) to the Non-Controlling Party
shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event
shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. 
  
 (g) Power of Attorney. Each member of the Freescale Group shall execute and deliver to MINC (or such member of the MINC Group as MINC shall
designate) any power of attorney or other similar document reasonably requested by MINC (or such designee) in connection with any Tax Contest (as to which MINC is the Controlling Party) described in this Section 10. Each member of the MINC Group
shall execute and deliver to Freescale (or such member of the Freescale Group as Freescale shall designate) any power of attorney or other similar document requested by Freescale (or such designee) in connection with any Tax Contest (as to which
Freescale is the Controlling Party) described in this Section 10. 
  
 Section 11. Effective Date; Termination of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective as of the date hereof. As of the date hereof, (i) all prior intercompany Tax allocation agreements or
arrangements shall be terminated, and (ii) amounts due under such agreements as of the date hereof shall be settled as of the date hereof (including capitalization or distribution of amounts due or receivable under such agreements). Upon such
termination and settlement, no further payments by or to MINC or by or to Freescale, with respect to such agreements shall be made, and all other rights and obligations resulting from such agreements between the Companies and their Affiliates shall
cease at such time. Any payments pursuant to such agreements shall be disregarded for purposes of computing amounts due under this Agreement; provided that payments made pursuant to such agreements shall be 

  

 29 

 
credited to Freescale or MINC, respectively, in computing their respective obligations pursuant to this Agreement, in the event that such payments relate to
a Tax liability that is the subject matter of this Agreement for a Tax Period that is the subject matter of this Agreement. 
  
 Section 12. Survival of Obligations. The representations, warranties, covenants and agreements set forth in this Agreement shall be
unconditional and absolute and shall remain in effect without limitation as to time. 
  
 Section 13. Treatment of Payments; Tax Gross Up. 
  
 Section 13.01 Treatment of Tax Indemnity and Tax Benefit Payments. In the absence of any change in Tax treatment under the Code or other applicable Tax Law, 
  
 (a) any Tax indemnity payments made by a Company under Section 5 shall
be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax allocated to the
payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability, and

  
 (b) any Tax Benefit payments made by a Company under
Section 6, shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax
allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained
liability. 
  
 Section 13.02 Tax Gross Up. If
notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were reported, there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement, such payment shall be
appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes),
shall equal the amount of the payment which the Company receiving such payment would otherwise be entitled to receive pursuant to this Agreement. 
  
 Section 13.03 Interest Under This Agreement. Anything herein to the contrary notwithstanding, to the extent one Company
(“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period from the date that the Indemnitee made a payment of Tax to a Tax Authority to the date
that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent provided by law) and as interest income by the Indemnitee (includible in income
to the extent provided by law). The amount of the payment shall not be adjusted under Section 2.02 to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee. 
  

 30 

 Section 14. Disagreements. The Companies mutually desire that friendly collaboration will
continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and obligations under this
Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (other than a High-Level Dispute) (a “Tax Advisor Dispute”) between the Companies as to the interpretation of any
provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Advisor Dispute. If such good faith negotiations do not resolve the Tax Advisor Dispute,
then the matter, upon written request of either Company, will be referred for resolution to the Steering Committee, which will make a good faith effort to resolve the Tax Advisor Dispute pursuant to the procedures set forth in Section 9.3(a) of the
Master Separation and Distribution Agreement. If the Steering Committee does not agree to a resolution of a Tax Advisor Dispute within thirty (30) days after the reference of the Tax Advisor Dispute to it, then the matter will be referred to a Tax
Advisor acceptable to each of the Companies. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that the Tax Advisor deems necessary to assist it in resolving such disagreement.
The Tax Advisor shall furnish written notice to the Companies of its resolution of any such Tax Advisor Dispute as soon as practical, but in any event no later than 45 days after its acceptance of the matter for resolution. Any such resolution by
the Tax Advisor will be conclusive and binding on the Companies. Following receipt of the Tax Advisor’s written notice to the Companies of its resolution of the Tax Advisor Dispute, the Companies shall each take or cause to be taken any action
necessary to implement such resolution of the Tax Advisor. In accordance with Section 16, each Company shall pay its own fees and expenses (including the fees and expenses of its representatives) incurred in connection with the referral of the
matter to the Tax Advisor. All fees and expenses of the Tax Advisor in connection with such referral shall be shared equally by the Companies. Any High-Level Dispute shall be resolved pursuant to the procedures set forth in Section 9.3 of the Master
Separation and Distribution Agreement. Nothing in this Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax Advisor Dispute through the Steering Committee and the Tax
Advisor (or any delay resulting from the efforts to resolve any High-Level Dispute through the procedures set forth in Section 9.3 of the Master Separation and Distribution Agreement) could result in serious and irreparable injury to either Company.

  
 Section 15. Late Payments. Any amount owed by
one party to another party under this Agreement which is not paid when due shall bear interest at the Prime Rate plus two percent, compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid
under this Section 15 duplicates interest required to be paid under any other provision of this Agreement, interest shall be computed at the higher of the interest rate provided under this Section 15 or the interest rate provided under such other
provision. 
  
 Section 16. Expenses. Except as
otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement.

  

 31 

 Section 17. General Provisions. 
  
 Section 17.01 Addresses and Notices. Each party giving any notice required or permitted under this Agreement
will give the notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which the sending party has been notified in accordance with this Section 17.01: (a)
personal delivery; (b) facsimile or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; or (d) pre-paid, United States of America certified or
registered mail, return receipt requested. Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 17.01 and shall be deemed given on the date that the intended addressee actually receives the notice.

  

			
	 If to Motorola:
	  	with a copy to:
		
	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Director, Taxes
 Facsimile: 847.576.0903
	  	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Chief Financial Officer
 Facsimile: 847.576.1402

		
	 If to Freescale:
	  	with a copy to:
		
	 Freescale Semiconductor, Inc.
 6501 William Cannon Drive
 Austin, Texas 78737
 Attention: Director, Taxes
 Facsimile: 512.895.3671
	  	 Freescale Semiconductor, Inc.
 6501 Willam Cannon
Drive
 Austin, Texas 78737
 Attention: Chief Financial
Officer
 Facsimile: 512.895.8696

  
 A party may change the address for
receiving notices under this Agreement by providing written notice of the change of address to the other parties. 
  
 Section 17.02 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and
assigns. 
  
 Section 17.03 Waiver. The parties may
waive a provision of this Agreement only by a writing signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay in
exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only
for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and
remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity. 
  

 32 

 Section 17.04 Severability. If any provision of this Agreement is determined to be invalid,
illegal or unenforceable, the remaining provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable. 
  
 Section 17.05 Authority. Each of the parties represents to the
other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other
action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 
  
 Section 17.06 Further Action. The parties shall execute and deliver all documents, provide all information, and take or refrain from taking
action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such powers of attorney or other authorizing documentation as
is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10. 
  
 Section 17.07 Integration. This Agreement, together with each of the exhibits and schedules appended hereto,
constitutes the final agreement between the parties, and is the complete and exclusive statement of the parties’ agreement on the matters contained herein. All prior and contemporaneous negotiations and agreements between the parties with
respect to the matters contained herein are superseded by this Agreement, as applicable. In the event of any inconsistency between this Agreement and the Master Separation and Distribution Agreement, or any other agreements relating to the
transactions contemplated by the Master Separation and Distribution Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control. 
  
 Section 17.08 Construction. The language in all parts of this Agreement shall in all cases be construed
according to its fair meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement’s construction or
interpretation. Unless otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement. 
  
 Section 17.09 No Double Recovery. No provision of this Agreement shall be construed to provide an indemnity or other recovery for any costs,
damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless expressly required in this Agreement, a party shall not be
required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement. 
  
 Section 17.10 Counterparts. The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as
against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one 

  

 33 

 
executed counterpart from each party to the other party. The signatures of both parties need not appear on the same counterpart. The delivery of signed
counterparts by facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering the counterpart in person. 
  
 Section 17.11 Governing Law. The internal laws of the State of Delaware (without reference to its principles
of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and schedules hereto and thereto (whether arising in contract, tort, equity or otherwise).

  
 Section 17.12 Jurisdiction. If any dispute
arises out of or in connection with this Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent
and submit to the exclusive jurisdiction of federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED
BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION BY JURY. 
  
 Section
17.13 Amendment. The parties may amend this Agreement only by a written agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement. 
  
 Section 17.14 Freescale Subsidiaries. If, at any time,
Freescale acquires or creates one or more subsidiaries that are includable in the Freescale Group, they shall be subject to this Agreement and all references to the Freescale Group herein shall thereafter include a reference to such subsidiaries.

  
 Section 17.15 Successors. This Agreement shall
be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto (including but not limited to any successor of MINC or Freescale succeeding to the Tax attributes of either under
Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement. 
  
 Section 17.16 Injunctions. The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity. 
  

 34 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers as
of the date set forth above. 
  

			
	Motorola, Inc.
		
	 By:
	 	 /s/ David W. Devonshire

	 Its:
	 	 Executive Vice President and Chief Financial Officer

  

			
	Freescale Semiconductor, Inc.
		
	 By:
	 	 /s/ Alan Campbell

	 Its:
	 	 Senior Vice President and Chief Financial Officer

  

 35

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