Document:

exv10w44

Exhibit 10.44

MOTOROLA, INC. SENIOR OFFICER

AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE PLAN

INTRODUCTION

     The Board of Directors of Motorola, Inc. considers the maintenance of a sound management to be
essential to protecting and enhancing the best interests of the Company (as hereinafter defined)
and its stockholders. In this connection, the Company recognizes that the possibility of a Change
in Control (as hereinafter defined) may exist from time to time, and that this possibility, and the
uncertainty and questions it may raise among management, may result in the departure or distraction
of management personnel to the detriment of the Company and its stockholders. Accordingly, the
Board (as hereinafter defined) has determined that appropriate steps should be taken to encourage
the continued attention and dedication of members of the Company’s management to their assigned
duties without the distraction which may arise from the possibility of a Change in Control of the
Company. The Company has further determined to amend and restate the Plan in order to bring the
Plan into documentary compliance with the provisions of Section 409A (as hereinafter defined).

     This Plan does not alter the status of Participants (as hereinafter defined) as at-will
employees of the Company. Just as Participants remain free to leave the employ of the Company at
any time, so too does the Company retain its right to terminate the employment of Participants
without notice, at any time, for any reason. However, the Company believes that, both prior to and
at the time a Change in Control is anticipated or occurring, it is necessary to have the continued
attention and dedication of Participants to their assigned duties without distraction, and this
Plan is intended as an inducement for Participants’ willingness to continue to serve as employees
of the Company (subject, however, to either party’s right to terminate such employment at any
time). Therefore, should a Participant still be an employee of the Company at such time, the
Company agrees that such Participant shall receive the severance benefits hereinafter set forth in
the event the Participant’s employment with the Company terminates subsequent to a Change in
Control under the circumstances described below.

     Notwithstanding the foregoing and Section 4.2(d), however, in the event that the Participant
is terminated by the Company as provided in Section 4.1(a) or resigns for Good Reason, in each case
during the twelve-month period prior to a Change in Control, but subsequent to such time as
negotiations or discussions with a third party which ultimately lead to a Change in Control have
commenced, then such termination (such a termination of employment, an “Anticipatory Termination”)
shall be deemed to be a termination which entitles such Participant to the severance benefits
hereinafter set forth.

ARTICLE I

ESTABLISHMENT OF PLAN

     As of the Effective Date (as hereinafter defined), the Company hereby amends and restates the
Motorola, Inc. Senior Officer Change in Control Severance Plan, as set forth in this document.

 

 

ARTICLE II

DEFINITIONS

     As used herein the following words and phrases shall have the following respective meanings
unless the context clearly indicates otherwise.

     (a) Affiliate. Any entity which controls, is controlled by or is under common control
with the Company.

     (b) Board. The Board of Directors of the Company.

     (c) Cause. With respect to any Participant: (i) the Participant’s conviction of any criminal
violation involving dishonesty, fraud or breach of trust or (ii) the Participant’s willful
engagement in gross misconduct in the performance of the Participant’s duties that materially
injures the Company.

For purposes of this Section 2(c), no act, or failure to act, on the part of the Participant shall
be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith
or without reasonable belief that the Participant’s action or omission was in the best interests of
the Company. Any act, or failure to act, based upon (A) authority given pursuant to a resolution
duly adopted by the Board, or if the Company is not the ultimate parent corporation of its
Affiliated entities and is not publicly-traded, the board of directors of the ultimate parent of
the Company (the “Applicable Board”), (B) the instructions of the Chief Executive Officer or Chief
Financial Officer of the Company or (C) the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Participant in good faith and in the best
interests of the Company. The cessation of employment of the Participant shall not be deemed to be
for Cause unless and until there shall have been delivered to the Participant a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters of the entire
membership of the Applicable Board (excluding the Participant, if the Participant is a member of
the Applicable Board) at a meeting of the Applicable Board called and held for such purpose (after
reasonable notice is provided to the Participant and the Participant is given an opportunity,
together with counsel for the Participant, to be heard before the Applicable Board), finding that,
in the good faith opinion of the Applicable Board, the Participant is guilty of the conduct
described in Section 2(c)(i) or 2(c)(ii), and specifying the particulars thereof in detail.

     (d) Change in Control. The occurrence of any of the following events: a change in
control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (“Exchange
Act”), or any successor provision thereto, whether or not the Company is then subject to such
reporting requirement; provided that, without limitation, such a Change in Control shall be deemed
to have occurred if (i) any “person” or “group” (as such terms are used in Section 13(d) and 14(d)
of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company’s then

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outstanding securities (other than the Company or any employee benefit plan of the Company; and, for
purposes of the Plan, no Change in Control shall be deemed to have occurred as a result of the
“beneficial ownership,” or changes therein, of the Company’s securities by either of the
foregoing), (ii) there shall be consummated (A) any consolidation or merger of the Company in which
the Company is not the surviving or continuing corporation or pursuant to which shares of common
stock would be converted into or exchanged for cash, securities or other property, other than a
merger of the Company in which the holders of common stock immediately prior to the merger have,
directly or indirectly, at least a 65% ownership interest in the outstanding common stock of the
surviving corporation immediately after the merger, or (B) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all, or substantially all, of
the assets of the Company other than any such transaction with entities in which the holders of the
Company’s common stock, directly or indirectly, have at least a 65% ownership interest, (iii) the
shareholders of the Company approve any plan or proposal for the liquidation or dissolution of the
Company, or (iv) as the result of, or in connection with, any cash tender offer, exchange offer,
merger or other business combination, sale of assets, proxy or consent solicitation (other than by
the Board), contested election or substantial stock accumulation (a “Control Transaction”),
the members of the Board immediately prior to the first public announcement relating to such
Control Transaction shall thereafter cease to constitute a majority of the Board.

     (e) Code. The Internal Revenue Code of 1986, as amended from time to time.

     (f) Company. Motorola, Inc. and any successor thereto.

     (g) Date of Termination. The effective date specified in the Notice of Termination as
of which the Participant’s employment terminates (which shall be not less than thirty (30) days nor
more than sixty (60) days after the date such Notice of Termination is given). The Company and the
Participant shall take all steps necessary (including with regard to any post-termination services
by the Participant) to ensure that any termination described in this Plan constitutes a “separation
from service” within the meaning of Section 409A, and notwithstanding anything contained herein to
the contrary, the date on which such separation from service takes place shall be the “Date of
Termination.”

     (h) Disability. A condition such that the Participant by reason of physical or mental
disability becomes unable to perform his normal duties for more than one-hundred eighty (180) days
in the aggregate (excluding infrequent or temporary absence due to ordinary transitory illness)
during any twelve-month period.

     (i) Effective Date. The Effective Date shall be December 31, 2008.

     (j) Employee. Any full-time, regular-benefit, non-bargaining employee of the Company.

     (k) ERISA. The Employee Retirement Income Security Act of 1974, as amended from time
to time.

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     (l) Good Reason. “Good Reason” means actions taken by the Company resulting in a
material negative change in the employment relationship. For these purposes, with respect to any
Participant, a “material negative change in the employment relationship” shall include, without
limitation, without such Participant’s written consent, (i) the Participant is assigned duties
materially inconsistent with his position, duties, responsibilities and status with the Company
during the 90-day period immediately preceding a Change in Control, or the Participant’s position,
authority, duties or responsibilities are materially diminished from those in effect during the
90-day period immediately preceding a Change in Control (whether or not occurring solely as a
result of the Company ceasing to be a publicly traded entity), (ii) a material reduction in the
Participant’s (x) annual base salary or (y) total annual compensation opportunity, from such total
annual compensation opportunity as in effect during the 90-day period immediately prior to the
Change in Control, or as the same may be increased from time to time, (iii) the Company requires
the Participant regularly to perform his duties of employment beyond a fifty (50) mile radius from
the location of the Participant’s employment immediately prior to the Change in Control, (iv) the
Company fails to obtain a satisfactory agreement from any successor to assume and perform this
Plan, as contemplated by Article VI hereof, or (v) any other action or inaction that constitutes a
material breach by the Company of this Plan with respect to such Participant.

In order to invoke a termination for Good Reason, the Participant shall provide a Notice of
Termination pursuant to Section 7.5 to the Company’s General Counsel of the existence of one or
more of the conditions described in clauses (i) through (v) within 90 days following the
Participant’s initial knowledge of the existence of such condition or conditions, specifying in
reasonable detail the conditions constituting Good Reason (hereinafter, “Notice of Termination for
Good Reason”), and the Company shall have 30 days following receipt of such written notice (the
“Cure Period”) during which it may remedy the condition. In the event that the Company fails to
remedy the condition constituting Good Reason during the applicable Cure Period, the Participant’s
“separation from service” (within the meaning of Section 409A) must occur, if at all, within two
years following the initial existence of the condition or conditions constituting Good Reason (or,
if earlier, prior to the two year anniversary of the Change in Control) in order for such
termination as a result of such condition to constitute a termination for Good Reason. The
Participant’s mental or physical incapacity following the occurrence of an event described above in
clauses (i) through (v) shall not affect the Participant’s ability to terminate employment for Good
Reason and the Participant’s death following delivery of a Notice of Termination for Good Reason
shall not affect the Participant’s estate’s entitlement to Separation Benefits provided hereunder.

     (m) Notice of Termination. Written notice that shall indicate the specific
termination provision in this Plan (if any) relied upon and set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the Participant’s employment.

     (n) Participant. An individual who qualifies as such pursuant to Section 3.1.

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     (o) Plan. The Motorola, Inc. Amended and Restated Senior Officer Change in Control
Severance Plan.

     (p) Section 409A. Section 409A of the of the Code, and the rules and regulations
issued thereunder.

     (q) Separation Benefits. The benefits described in Section 4.2 that are provided to
qualifying Participants under the Plan.

     (r) Subsidiary. Any corporation in which the Company, directly or indirectly, holds a
majority of the voting power of such corporation’s outstanding shares of capital stock.

ARTICLE III

ELIGIBILITY

     3.1 Participation. Participants in the Plan are elected officers of the Company who
are at or above the level of Senior Vice President; provided that such Participants will not be
entitled to Separation Benefits under this Plan if they are not at or above the level of Senior
Vice President at the time of the Change in Control; provided, further that any reduction of a
Participant’s position subsequent to such time as negotiations or discussions with a third party
which ultimately lead to a Change in Control have commenced shall be of no effect for purposes of
this Section 3.1. Notwithstanding the foregoing, a Participant shall not be entitled to receive
Separation Benefits (or any other benefits under the Plan), if the Participant has entered into a
change in control letter agreement with the Company which has not been waived by the Participant or
terminated by the Company.

     3.2 Duration of Participation. A Participant shall only cease to be a Participant in
the Plan as a result of an amendment or termination of the Plan complying with Article VI of the
Plan, or when he ceases to be an Employee or no longer qualifies as a Participant under Section
3.1, unless, at the time he ceases to be an Employee or no longer qualifies as a Participant under
Section 3.1, such Participant is entitled to payment of a Separation Benefit as provided in the
Plan or there has been an event or occurrence constituting Good Reason that would enable the
Participant to terminate his employment and receive a Separation Benefit. A Participant entitled
to payment of a Separation Benefit or any other amounts under the Plan shall remain a Participant
in the Plan until the full amount of the Separation Benefit and any other amounts payable under the
Plan have been paid to the Participant.

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ARTICLE IV

SEPARATION BENEFITS

     4.1 Terminations of Employment Which Give Rise to Separation Benefits Under This Plan.
A Participant shall be entitled to Separation Benefits as set forth in Section 4.2 below if, (a)
at any time following a Change in Control and prior to the second anniversary of the Change in
Control, the Participant’s employment is terminated (i) involuntarily for any reason other than
Cause, death, Disability or retirement under a mandatory retirement policy of the Company or any of
its Subsidiaries as in effect prior to such time as negotiations or discussions with a third party
which ultimately lead to a Change in Control have commenced or (ii) by the Participant after the
occurrence of an event giving rise to Good Reason or (b) the Participant experiences an
Anticipatory Termination. For purposes of this Plan, any purported termination by the Company or
by the Participant shall be communicated by written Notice of Termination to the other in
accordance with Section 7.5 hereof.

     4.2 Separation Benefits.

     (a) If a Participant’s employment is terminated under circumstances which entitle the
Participant to Separation Benefits under this Section 4.2 (a “Qualifying Termination”), then the
Company shall (except as provided below with respect to an Anticipatory Termination) pay to the
Participant, in a lump sum in cash within ten (10) days after the Date of Termination, the
aggregate of the following amounts which benefits, except as provided in Section 7.4 below, shall
be in addition to any other benefits to which the Participant is entitled other than by reason of
this Plan: (i) unpaid salary with respect to any paid time off accrued but not taken as of the
Date of Termination; (ii) accrued but unpaid salary through the Date of Termination, (iii) any
earned but unpaid annual incentive bonuses from the fiscal year immediately preceding the year in
which the Date of Termination occurs (unless (x) such annual incentive bonus is “nonqualified
deferred compensation” within the meaning of Section 409A, in which case such bonus shall be paid
at the time that bonuses with respect to such fiscal year are or otherwise would be paid in
accordance with the terms of the applicable plan or (y) the Participant has made an irrevocable
election under any deferred compensation arrangement subject to Section 409A to defer any portion
of such annual incentive bonuses, in which case any such deferred bonuses shall be paid in
accordance with such election); (iv) an amount equal to three (3) times the greater of (x) the
Participant’s highest annual base salary in effect at any time during the period commencing three
(3) years preceding the date the Change in Control occurs and ending on the date the Change in
Control occurs, and (y) the Participant’s annual base salary in effect on the Date of Termination,
and (v) an amount equal to three (3) times the highest annual bonus, including any bonus or portion
thereof that has been earned but deferred (and annualized for any fiscal year consisting of less
than twelve (12) full months or during which the Participant was employed for less than twelve (12)
full months), the Participant received from the Company during the five (5) full fiscal years of
the Company immediately preceding the Date of Termination (the amount determined pursuant to clause
(i) through (v), the “Cash Severance Payment”); provided, however, that in the event of an
Anticipatory Termination, the Company shall pay the Cash
Severance Payment (reduced by any amount the Participant receives as “Severance Allowance”

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as
defined in the Motorola, Inc. Executive Severance Plan (the “Non-CIC Severance Plan”)) to the
Participant on the date of the Change in Control to which such Anticipatory Termination relates.
In addition, in the event of a Qualifying Termination, the Participant shall be entitled to a
pro-rated bonus determined as follows:

	 	(vi)	 	if the Participant participates in the Motorola Incentive Plan (“MIP Plan”)
during the year in which the Qualifying Termination occurs, the Company shall, on the
first payroll date following July 1 of the year following the year in which the
Qualifying Termination occurs (unless the Participant has made an irrevocable election
under any deferred compensation arrangement subject to Section 409A to defer any
portion of the Participant’s annual incentive bonus in respect of the year in which the
Qualifying Termination occurs, in which case such deferred bonus shall be paid in
accordance with such election) (the “MIP Pro-Rata Bonus Payment Date”), pay the
participant in a lump sum an amount equal to the product of (A) the Participant’s
annual target bonus for the fiscal year in which the Date of Termination occurs (which
for purposes of this Section 4.2 in no event shall be less than the Participant’s
target bonus for the fiscal year in which the Change in Control occurs or, in the event
of an Anticipatory Termination, the year in which the Date of Termination occurs) and
(B) a fraction, the numerator of which is the number of days in the then current fiscal
year through the Date of Termination and the denominator of which is 365 (the “MIP
Pro-Rata Bonus”); provided, however, that in the event that the Participant experiences
an Anticipatory Termination and the Company has already paid the Participant the
Alternate MIP Award (as defined in the Non-CIC Severance Plan), the Participant shall
not be entitled to an MIP Pro-Rata Bonus hereunder;

	 	(vii)	 	if the Participant participates in a sales incentive plan pursuant to which he
or she is eligible for an incentive award with respect to monthly or quarterly
performance periods during the year in which the Qualifying Termination occurs, the
Company shall pay the Participant, at the time set forth in the applicable sales
incentive plan, an amount equal to the product of (A) the Participant’s monthly or
quarterly target incentive under the applicable sales incentive plan (which for
purposes of this Section 4.2 in no event shall be less than the Participant’s target
bonus for the performance period in which the Change in Control occurs or, in the event
of an Anticipatory Termination, the performance period in which the Date of Termination
occurs) and (B) a fraction, the numerator of which is the number of days that have
elapsed in the then current monthly or quarterly performance period through the Date of
Termination and the denominator of which is the full number of days in the then current
monthly or quarterly performance period (the “SIP Quarterly or Monthly Pro-Rata
Bonus”); provided, however, that in the event that the Participant experiences an
Anticipatory Termination and the Company has already paid the Participant the Alternate
Quarterly or Monthly SIP Award (as defined in the Non-CIC Severance Plan), the
Participant shall not be entitled to an SIP Quarterly or Monthly Pro-Rata Bonus
hereunder; and
	 
	 	(viii)	 	if the Participant participates in a sales incentive plan pursuant to which he or she
is

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	 	 	 	eligible for an incentive award (or a portion of an incentive award) with respect to
an annual performance period during the year in which the Qualifying Termination
occurs, the Company shall pay the Participant, on the MIP Pro-Rata Bonus Payment Date,
for such award (or portion of award) an amount equal to the product of (A) the
Participant’s annual target bonus for the fiscal year in which the Date of Termination
occurs (which for purposes of this Section 4.2 in no event shall be less than the
Participant’s target bonus for the fiscal year in which the Change in Control occurs
or, in the event of an Anticipatory Termination, the year in which the Date of
Termination occurs) and (B) a fraction, the numerator of which is the number of days in
the then current fiscal year through the Date of Termination and the denominator of
which is 365 (the “SIP Annual Pro-Rata Bonus”); provided, however, that in the event
that the Participant experiences an Anticipatory Termination and the Company has
already paid the Participant the Alternate Annual SIP Award (as defined in the Non-CIC
Severance Plan), the Participant shall not be entitled to an SIP Annual Pro-Rata Bonus
hereunder.

     (b) If the Participant’s employment is terminated under circumstances which entitle the
Participant to Separation Benefits under this Section 4.2, for three (3) years after the Date of
Termination (the “Benefit Continuation Period”), or such longer period as may be provided by the
terms of the appropriate plan, program, practice or policy, the Company shall continue medical and
dental benefits and life insurance benefits to the Participant and/or the Participant’s family at
least equal to those that would have been provided in accordance with the medical and dental
benefits and life insurance plans, programs, practices and policies of the Company immediately
prior to the Change in Control if the Participant’s employment had not been terminated on the same
terms and conditions (including any applicable required employee contributions), except that in the
event of an Anticipatory Termination and to avoid duplication of benefits, such continued medical
benefits to be provided hereunder shall commence on the date of the Change in Control and the
Benefit Continuation Period shall be reduced by the number of months, if any, during which the
Participant receives such medical benefits under the Non-CIC Severance Plan; provided, however,
that, the medical and dental benefits and life insurance provided during the Benefit Continuation
Period shall be provided in such a manner that such benefits (and the costs and premiums thereof)
are excluded from the Participant’s income for federal income tax purposes and, if the Company
reasonably determines that providing continued coverage under one or more of its medical or dental
plans or life insurance plans contemplated herein could be taxable to the Participant, the Company
shall provide such benefits at the level required hereby through the purchase of individual
insurance coverage; provided, further, however, that, if the Participant becomes reemployed with
another employer and becomes eligible to receive medical or dental or life insurance benefits under
another employer provided plan, the medical and dental benefits and/or life insurance benefits
described herein shall be secondary to those provided under such other plan during such applicable
period of eligibility. For purposes of determining eligibility (but not the time of commencement
of benefits) of the Participant for retiree medical benefits pursuant to plans, practices, programs
and policies of the Company, the Participant shall be considered to have remained employed until
three (3) years after the Date of Termination and to have retired on the last day of such
period (and to have attained three (3) additional years of age), and such benefits (and the terms
and

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conditions of such benefits) shall be no less favorable than as in effect immediately prior to
the Change in Control. Following the end of the period during which medical and dental benefits
are provided to the Participant under this Section 4.2(b), the Participant shall be eligible for
continued medical and dental coverage as required by Section 4980B of the Code or other applicable
law, as if the Participant’s employment with the Company had terminated as of the end of such
period.

     (c) Except as provided in Section 4.2(a) (with respect to Anticipatory Terminations) and
Section 4.2(b), the Participant shall not be required to mitigate the amount of any payment
provided for in this Section 4.2 by seeking other employment or otherwise, nor shall the amount of
any payment or benefit provided for in this Section 4.2 be reduced by any compensation earned by
the Participant as the result of employment by another employer or by retirement benefits paid by
the Company after the Date of Termination, or otherwise, or by any set-off, counterclaim,
recoupment, or other claim, right or action the Company may have against the Participant or others.

     (d) Without affecting a Participant’s eligibility to receive benefits under Section 4.2(a) or
(b) in the event of an Anticipatory Termination, the provisions of this Article IV shall be
applicable after a Change in Control has occurred, but not prior thereto.

     4.3 Certain Additional Payments by the Company.

     (a) Anything in this Plan to the contrary notwithstanding and except as set forth below, in
the event it shall be determined that any Payment (as hereinafter defined) would be subject to the
Excise Tax (as hereinafter defined), then the Participant shall be entitled to receive an
additional payment (the “Gross-Up Payment”) in an amount such that, after payment by the
Participant of all taxes (and any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties imposed with
respect thereto), employment taxes and Excise Tax imposed upon the Gross-Up Payment, but excluding
any income taxes and penalties imposed pursuant to Section 409A, the Participant retains an amount
of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the
foregoing provisions of this Section 4.3(a), if it shall be determined that the Participant is
entitled to the Gross-Up Payment, but that the Parachute Value (as hereinafter defined) of all
Payments do not exceed 110% of the Safe Harbor Amount (as hereinafter defined), then no Gross-Up
Payment shall be made to the Participant and the amounts payable under this Plan shall be reduced
so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The
reduction of the amounts payable hereunder, if applicable, shall be made by reducing the payments
and benefits under the following sections in the following order: (i) Section 4.2(a)(v), (ii)
Section 4.2(a)(iv) and (iii) Section 4.2(b). For purposes of reducing the Payments to the Safe
Harbor Amount, only amounts payable under this Plan (and no other Payments) shall be reduced. If
the reduction of the amount payable under this Plan would not result in a reduction of the
Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Plan shall be reduced pursuant to this Section 4.3(a).

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The Company’s obligation to make Gross-Up Payments under this Section 4.3(a) shall not be
conditioned upon the Participant’s termination of employment.

     (b) Subject to the provisions of Section 4.3(c), all determinations required to be made under
this Section 4.3, including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by a nationally recognized accounting firm as may be selected by the Company prior to a Change
in Control (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting
calculations both to the Company and the Participant within fifteen (15) business days of the
receipt of notice from the Participant that there has been a Payment or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change in Control, the Company shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company; provided, however, (i) the
Company shall pay the fees and expenses of the Accounting Firm not later than the end of the
calendar year following the calendar year in which the related work is performed or the expenses
are incurred by the Accounting Firm, (ii) the amount of the Accounting Fees that the Company is
obligated to pay in any given calendar year shall not affect the Accounting Fees that the Company
is obligated to pay in any other calendar year, and (iii) the Participant’s right to have the
Company pay such fees and expenses may not be liquidated or exchanged for any other benefit. Any
determination by the Accounting Firm shall be binding upon the Company and the Participant. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not
have been made by the Company should have been made (the “Underpayment”), consistent with the
calculations required to be made hereunder. In the event the Company exhausts its remedies
pursuant to Section 4.3(c) and the Participant thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the benefit of the
Participant.

     (c) The Participant shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable, but no later than ten (10) business days
after the Participant is informed in writing of such claim. The Participant shall apprise the
Company of the nature of such claim and the date on which such claim is requested to be paid. The
Participant shall not pay such claim prior to the expiration of the 30-day period following the
date on which the Participant gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If the Company notifies the
Participant in writing prior to the expiration of such period that the Company desires to contest
such claim, the Participant shall:

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

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

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

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

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest, and shall indemnify
and hold the Participant harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties) imposed as a result of such representation and payment of costs
and expenses; provided, further, however, (i) the Company shall pay the costs and expenses not
later than the end of the calendar year following the calendar year in which the costs and expenses
are incurred, (ii) the amount of such costs and expenses that the Company is obligated to pay in
any given calendar year shall not affect the costs and expenses that the Company is obligated to
pay in any other calendar year, and (iii) the Participant’s right to have the Company pay such
costs and expenses may not be liquidated or exchanged for any other benefit. Without limitation on
the foregoing provisions of this Section 4.3(c), the Company shall control all proceedings taken in
connection with such contest, and, at its sole discretion, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the applicable taxing authority
in respect of such claim and may, at its sole discretion, either pay the tax claimed to the
appropriate taxing authority on behalf of the Participant and direct the Participant to sue for a
refund or contest the claim in any permissible manner, and the Participant agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one (1) or more appellate courts, as the Company shall determine; provided, however, that,
if the Company pays such claim and directs the Participant to sue for a refund, the Company shall
indemnify and hold the Participant harmless, on an after-tax basis, from any Excise Tax or income
tax (including interest or penalties) imposed with respect to such payment or with respect to any
imputed income in connection with such payment; and provided, further, that any extension of the
statute of limitations relating to payment of taxes for the Participant’s taxable year with respect
to which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of the contest shall be limited to issues with respect to which
the Gross-Up Payment would be payable hereunder, and the Participant shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

     (d) If, after the receipt by the Participant of a Gross-Up Payment or payment by the Company
of an amount on the Participant’s behalf pursuant to Section 4.3(c), the

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Participant becomes entitled to receive any refund with respect to the Excise Tax to which
such Gross-Up Payment relates or with respect to such claim, the Participant shall (subject to the
Company’s complying with the requirements of Section 4.3(c)) promptly pay to the Company the amount
of such refund (together with any interest paid or credited thereon after taxes applicable
thereto). If, after payment by the Company of an amount on the Participant’s behalf pursuant to
Section 4.3(c), a determination is made that the Participant shall not be entitled to any refund
with respect to such claim and the Company does not notify the Participant in writing of its intent
to contest such denial of refund prior to the expiration of thirty (30) days after such
determination, then the amount of such payment shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid.

     (e) Any Gross-Up Payment, as determined pursuant to this Section 4.3, shall be paid by the
Company to the Participant within ten (10) days of the receipt of the Accounting Firm’s
determination; provided that, the Gross-Up Payment shall in all events be paid no later than the
end of the Participant’s taxable year next following the Participant’s taxable year in which the
Excise Tax (and any income or other related taxes or interest or penalties thereon) on a Payment
are remitted to the Internal Revenue Service or any other applicable taxing authority or, in the
case of amounts relating to a claim described in Section 4.3(c) that does not result in the
remittance of any federal, state, local and foreign income, excise, social security and other
taxes, the calendar year in which the claim is finally settled or otherwise resolved.

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

     (g) Definitions. The following terms shall have the following meanings for purposes
of this Section 4.3.

          (i) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with
any interest or penalties imposed with respect to such excise tax.

          (ii) The “Net After-Tax Amount” of a Payment shall mean the Value of a Payment net of all
taxes imposed on the Participant with respect thereto under Sections 1 and 4999 of the Code and
applicable state and local law, determined by applying the highest marginal rates that are expected
to apply to your taxable income for the taxable year in which the Payment is made.

          (iii) “Parachute Value” of a Payment shall mean the present value as of the date of the change
of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes
a “parachute payment” under Section 280G(b)(2), as determined by the

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Accounting Firm for purposes of determining whether and to what extent the Excise Tax will
apply to such Payment.

          (iv) A “Payment” shall mean any payment or distribution in the nature of compensation (within
the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Participant, whether
paid or payable pursuant to this Plan or otherwise.

          (v) The “Safe Harbor Amount” means the maximum Parachute Value of all Payments that the
Participant can receive without any Payments being subject to the Excise Tax.

ARTICLE V

 SUCCESSOR TO COMPANY

     This Plan shall bind any successor of the Company, its assets or its businesses (whether
direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the
same extent that the Company would be obligated under this Plan if no succession had taken place.
In the case of any transaction in which a successor would not by the foregoing provision or by
operation of law be bound by this Plan, the Company shall require such successor expressly and
unconditionally to assume and agree to perform the Company’s obligations under this Plan, in the
same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. The term “Company,” as used in this Plan, shall mean the Company as
hereinbefore defined and any successor or assignee to the business or assets which by reason hereof
becomes bound by this Plan.

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ARTICLE VI

DURATION, AMENDMENT AND TERMINATION

     6.1 Duration. If a Change in Control has not occurred, this Plan shall expire three
(3) years from the Effective Date; provided, that upon each annual anniversary of the Effective
Date (each such annual anniversary a “Renewal Date”), the Plan shall be extended for an additional
year, unless pursuant to a resolution adopted by the Board prior to the Renewal Date the Company
determines not to so extend the Plan. If a Change in Control occurs while this Plan is in effect,
this Plan shall continue in full force and effect for at least two (2) years following such Change
in Control, and shall not terminate or expire until after all Participants who become entitled to
any payments or benefits hereunder shall have received such payments and benefits in full.

     6.2 Amendment or Termination. The Board may amend or terminate this Plan at any time,
including amending the eligibility to participate in the Plan of Employees who are not existing
Participants; provided, that, except as provided in Section 7.10 below, this Plan may not be
amended or terminated in a manner adverse to Participants as of the date of the amendment or
termination without three (3) years’ advance written notice of such amendment or termination
(including modifying the eligibility of Employees who are already Participants to participate in
the Plan).

     6.3 Procedure for Extension, Amendment or Termination. Any extension, amendment or
termination of this Plan by the Board in accordance with this Article VI shall be made by action of
the Board in accordance with the Company’s charter and by-laws and applicable law.

ARTICLE VII

MISCELLANEOUS

     7.1 Default in Payment. Any payment not made within ten (10) days after it is due in
accordance with this Plan shall thereafter bear interest, compounded annually, at the prime rate
from time to time in effect at JPMorgan Chase & Co. or any successor thereto.

     7.2 No Assignment. No interest of any Participant or spouse of any Participant or any
other beneficiary under this Plan, or any right to receive payment hereunder, shall be subject in
any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind, nor may such interest or right to receive a payment or distribution be
taken, voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other
claims against, a Participant or spouse of a Participant or other beneficiary, including for
alimony.

     7.3 Disputes. The Company shall upon request pay from time to time a Participant’s
reasonable out-of-pocket expenses, including legal fees and expenses, incurred by

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the Participant
or on the Participant’s behalf (within 10 days following the Company’s receipt of an invoice from
the Participant), at any time from the occurrence of a Change in Control through the Participant’s
remaining lifetime (or, if longer, through the 20th anniversary of the occurrence of
such Change in Control) in connection with any action taken by the Participant or on the
Participant’s behalf (including any judicial proceeding) to enforce this Plan or to construe, or to
determine or defend the validity of, this Plan or otherwise in connection herewith; provided,
however, that, in the case of any judicial proceeding in which a Participant and the Company are
adverse parties or any dispute under Section 4.3 hereof, the Company shall not be required to pay
such expenses (and shall have the right to recover such expenses from the Participant if previously
advanced) with respect to any position or claim on which the Company ultimately prevails against
the Participant in all material respects. In order to comply with Section 409A, in no event shall
the payments by the Company under this Section 7.3 be made later than the end of the calendar year
next following the calendar year in which such fees and expenses were incurred, provided, that the
Participant shall have submitted an invoice for such fees and expenses at least ten (10) days
before the end of the calendar year next following the calendar year in which such fees and
expenses were incurred. The amount of such legal fees and expenses that the Company is obligated
to pay in any given calendar year shall not affect the legal fees and expenses that the Company is
obligated to pay in any other calendar year, and the Participant’s right to have the Company pay
such legal fees and expenses may not be liquidated or exchanged for any other benefit. In any
judicial or other proceeding in which the Participant’s rights to, or the amount of, benefits
hereunder is disputed, the ultimate burden of proof shall be on the Company.

     7.4 Effect on Other Plans, Agreements and Benefits. Except to the extent expressly
set forth herein, any benefit or compensation to which a Participant is entitled under any
agreement between the Participant and the Company or any of its Subsidiaries or under any plan
maintained by the Company or any of its Subsidiaries in which the Participant participates or
participated shall not be modified or lessened in any way, but shall be payable according to the
terms of the applicable plan or agreement. Notwithstanding the foregoing, any benefits received by
a Participant pursuant to this Plan shall be in lieu of any severance benefits to which the
Participant would otherwise be entitled under any general severance policy or other severance plan
maintained by the Company for its management personnel and, upon consummation of a Change in
Control, Participants in this Plan shall in no event be entitled to participate in any such
severance policy or other severance plan maintained by the Company for its management personnel,
except in the case of Anticipatory Terminations, in which event the Anticipatory Termination
provisions under Sections 4.2(a) and 4.2(b) shall apply. In the event of a Participant’s
termination of employment entitling the Participant to Separation Benefits under Section 4.2, any
non-competition or non-solicitation provisions applicable to the Participant with respect to the
Company or any of its Affiliates shall cease to apply as of the Participant’s Date of Termination.

     7.5 Notice. For the purpose of this Plan, notices and all other communications
provided for in this Plan shall be in writing and shall be deemed to have been duly given when
actually delivered or mailed by United States registered mail, return receipt requested, postage

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prepaid, addressed to the Company’s General Counsel at the Company’s corporate headquarters
address, and to the Participant (at the last address of the Participant on the Company’s books and
records), provided, that all notices to the Company shall be directed to the attention of the Board
with a copy to the Secretary.

     7.6 Employment Status. This Plan does not constitute a contract of employment or
impose on the Participant or the Company any obligation for the Participant to remain an Employee
or change the status of the Participant’s employment or the policies of the Company and its
Affiliates regarding termination of employment.

     7.7 Named Fiduciary; Administration. The Company is the named fiduciary of the Plan,
and shall administer the Plan, acting through the Compensation Committee of the Board, or its
delegatee.

     7.8 Unfunded Plan Status. This Plan is intended to be an unfunded plan maintained
primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees, within the meaning of Section 401 of ERISA. All payments pursuant to
the Plan shall be made from the general funds of the Company and no special or separate fund shall
be established or other segregation of assets made to assure payment. No Participant or other
person shall have under any circumstances any interest in any particular property or assets of the
Company as a result of participating in the Plan. Notwithstanding the foregoing, the Company may
(but shall not be obligated to) create one (1) or more grantor trusts, the assets of which are
subject to the claims of the Company’s creditors, to assist it in accumulating funds to pay its
obligations under the Plan.

     7.9 Validity and Severability. The invalidity or unenforceability of any provision of
the Plan shall not affect the validity or enforceability of any other provision of the Plan, which
shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

     7.10 Section 409A. This Plan is intended to comply with the requirements of Section
409A or an exemption and shall in all respects be administered in accordance with Section 409A.
Each payment under this Plan shall be treated as a separate payment for purposes of Section 409A.
In no event may a Participant, directly or indirectly, designate the calendar year of any payment
to be made under this Plan. All reimbursements and in-kind benefits provided under this Plan shall
be made or provided in accordance with the requirements of Section 409A. In the event the Company
determines that the terms of this Plan do not comply with Section 409A, the Company will,
notwithstanding anything to the contrary in Section 6.2 of this Plan, amend the terms of this Plan
such that it complies (in a manner that attempts to minimize the economic impact of such amendment
on the Participants and the Company) within the time period permitted by the applicable Treasury
Regulations. In no event shall the Company be
required to pay any Participant any “gross-up” or other payment with respect to any taxes or
penalties imposed under Section 409A with respect to any benefit paid to Executive hereunder.
Notwithstanding any provision in this Plan to the contrary, if the Participant is a

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“specified
employee” (within the meaning of Treasury Regulation Section 1.409A-1(i) and using the
identification methodology selected by Motorola from time to time) on the Participant’s Date of
Termination, then any payment or benefit which would be considered “nonqualified deferred
compensation” within the meaning of Code Section 409A that the Participant is entitled to receive
upon the Participant’s Date of Termination and which otherwise would be payable during the
six-month period immediately following the Participant’s Date of Termination will instead be paid
or made available on the earlier of the first day of the seventh month following the Participant’s
Date of Termination and the Participant’s death.

     7.11 Governing Law. The validity, interpretation, construction and performance of the
Plan shall in all respects be governed by the laws of Delaware, without reference to principles of
conflict of law, except to the extent pre-empted by Federal law.

-17-exv10w45

Exhibit 10.45

MOTOROLA, INC.

EXECUTIVE SEVERANCE PLAN, AS AMENDED THROUGH DECEMBER 31, 2008

Effective October 1, 2008

     1. Purpose.

     The purpose of the Motorola, Inc. Executive Severance Plan (the “Plan”) is to provide
severance pay and benefits to Eligible Executives whose employment with Motorola, Inc. and its U.S.
Affiliates and/or U.S. Subsidiaries is terminated under certain circumstances. The Plan is
effective October 1, 2008 and is applicable to Eligible Executives who are notified of termination
on or after October 1, 2008. The Plan is intended to be an “employee welfare benefit plan” as
defined in Section 3(1) of the ERISA maintained primarily for the purpose of providing benefits for
a select group of management or highly compensated employees. All benefits under the Plan shall be
paid solely from the general assets of Motorola.

     2. Eligibility.

     (a) General Rules. An Eligible Executive shall receive the Severance Pay and benefits
described in this Plan if the Eligible Executive’s employment with Motorola is terminated by
Motorola in a Qualifying Termination and such termination of employment constitutes a separation
from service within the meaning of Section 409A of the Code (a “Separation from Service”). In
order to receive Severance Pay and benefits under the Plan, in addition to fulfilling the
conditions and complying with the terms of the Plan, an Eligible Executive, as hereinafter
provided, must execute and not revoke a general waiver and release in the form provided by Motorola
(“General Release”) and must not be in breach of any agreement with Motorola containing restrictive
covenants, or any other agreement with or obligation to Motorola for the protection of Motorola’s
confidential and proprietary information.

     (b) Effect of Other Plans and Agreements.

     (i) An Eligible Executive shall not receive Severance Pay and benefits under this Plan if the
Eligible Executive is eligible for and receives severance pay and benefits under the Motorola, Inc.
Senior Officer Change in Control Plan, the Motorola, Inc. Corporate Officer Change in Control Plan,
or the Motorola, Inc. Corporate Officer Transition Change in Control Plan (collectively, the “VP
Change in Control Plans”), or has claimed or is claiming termination pay under the laws of any
country other than the United States. However, if a Change in Control occurs following a
Qualifying Termination, any Severance Pay and medical benefits to which an Eligible Executive may
be entitled under any VP Change in Control Plan shall be reduced by the Severance Pay and medical
benefits actually received by such Executive under this Plan. Following the Change in Control, the
Eligible Executive who is eligible for and is receiving severance pay and benefits under any VP
Change in Control Plan shall be entitled to no further Severance Pay and benefits under this Plan.

     (ii) Subject to Section 2(b)(i) above, if an individual has entered into an individual
employment or other contract with Motorola that explicitly provides for cash compensation upon a
termination of employment, whether or not such payment is labeled severance pay, retention

 

 

pay or otherwise, (other than a stock option, restricted stock, restricted stock unit, stock
appreciation right (“SAR”), supplemental retirement, deferred compensation or similar plan or
agreement or other form of participant document entered into pursuant to a Motorola-sponsored group
plan that may contain provisions operative on a termination of the Eligible Executive’s employment)
and such contract is in effect on the date of the Eligible Executive’s termination of employment,
such cash compensation shall be offset against the Severance Allowance provided under this Plan to
the extent such cash compensation either does not provide for the deferral of compensation under
Section 409A of the Code or is paid in a lump sum at the same time as severance paid under Section
3(b) hereunder. In all other respects, the terms of the individual agreement shall apply and shall
supersede the terms of this Plan.

     3. Severance Pay and Benefits.

     (a) Severance Pay and Benefits. An Eligible Executive entitled to Severance Pay and
benefits pursuant to Section 2 shall receive Severance Pay and severance benefits, based on the
Eligible Executive’s level or salary grade, in accordance with the schedule attached as Exhibit A
and the provisions of this Section 3.

     (b) Form and Timing of Severance Payments. The total amount of the Severance
Allowance provided in Section 3(a) shall be paid after the Eligible Executive’s Separation Date in
a lump sum within thirty (30) days after the Eligible Executive signs and does not revoke the
General Release, provided that the Eligible Executive signs the General Release no later than the
last day of the 49-day consideration period and such payment shall occur (assuming no revocation)
before March 15 of the year following the Separation Year. Each payment of Severance Pay and
benefits to the Eligible Executive under this Plan, including payments pursuant to Section 3 and
reimbursements under Sections 3(g), (h), (i), (j) and (o) and 4(e), will be considered a separate
payment and not one of a series of payments for purposes of Section 409A of the Code.

     (c) Alternate MIP Award for Separation Year. If an Eligible Executive receiving a
Severance Allowance under this Plan participates in the Motorola Incentive Plan (“MIP Plan”) during
the Separation Year, he or she shall receive, in lieu of any incentive bonus under the MIP Plan,
the equivalent of a pro rata MIP Award based on actual business results for the Separation Year
(“Alternate MIP Award”) and with an individual performance factor of 1.0, which Alternate MIP Award
shall be paid in a lump sum on the first payroll date following July 1 of the year following the
Separation Year (unless the Eligible Executive has made an irrevocable election under any deferred
compensation arrangement subject to Code Section 409A to defer any portion of the Eligible
Executive’s annual incentive bonus in respect of the Separation Year, in which case such deferred
bonus shall be paid in accordance with such election) (such payment date, “Alternate MIP Award
Payment Date”). The applicable pro rata amount shall be determined by multiplying (i) the product
of the Eligible Executive’s Eligible Earnings, as defined in the MIP Plan, times his or her MIP
Plan target percentage for the Separation Year times the business performance factor under the MIP
Plan for the applicable organizational unit by (ii) a fraction, the numerator of which is the
number of completed days of active work during the Separation Year and the denominator of which is
365. An Eligible Executive who receives an Alternate MIP Award may not receive an MIP Award under
the MIP Plan for the Separation Year under any circumstances.

- 2 -

 

     (d) Alternate SIP Award for Separation Year. If an Eligible Executive receiving a
Severance Allowance under this Plan participates in a sales incentive plan pursuant to which he or
she is eligible for an incentive award with respect to monthly or quarterly performance periods
during the Separation Year, he or she shall receive the equivalent of a pro rata termination
incentive for the applicable performance period in which the Separation Date occurs based on actual
performance goals and performance results (“Alternate Quarterly or Monthly SIP Award”). If an
Eligible Executive receiving a Severance Allowance under this Plan participates in a sales
incentive plan pursuant to which he or she is eligible for an incentive award (or a portion of an
incentive award) with respect to an annual performance period during the Separation Year, he or she
shall receive the equivalent of a pro rata termination incentive (for such award or portion
thereof) for the applicable performance period in which the Separation Date occurs based on actual
performance goals and performance results (“Alternate Annual SIP Award”). The pro rata amount
shall be determined as provided in the applicable SIP Plan. Alternate Quarterly or Monthly SIP
Awards shall be paid at the same time as payment would be made under the SIP Plan for the
applicable performance period if the Eligible Executive had remained an employee and Alternate
Annual SIP Awards shall be paid on the Alternate MIP Award Payment Date. An Eligible Executive who
receives an Alternate SIP Award may not receive a SIP Award under the SIP Plan for the same quarter
or any subsequent quarter under any circumstances. Alternatively, an Eligible Executive who
receives a SIP Award under the SIP Plan may not receive an Alternate SIP Award under this Plan for
the same quarter or any subsequent quarter under any circumstances.

     (e) Paid Time Off. The Severance Pay and benefits outlined in Section 3 above include
and exceed any paid time off or similar amounts that are unpaid as of the Eligible Executive’s
Separation Date, and the Eligible Executive shall not be entitled to any additional payment for or
in respect of such unpaid amounts.

     (f) Equity Awards. This Plan does not alter or amend any vesting or other terms and
conditions contained in previous grants of stock options, restricted stock, restricted stock units,
or SARs, as reflected in the agreements or award documents issued at the time of grant (“Equity
Awards”). Following the Separation Date, except in the event the Eligible Executive violates one
or more of the restrictive covenants referenced in Section 4(a) below, each of his or her
outstanding Equity Awards will be accorded the most favorable treatment for which each Equity Award
qualifies per the terms of the applicable plans, grant agreements or award documents.

     (g) Medical Benefits. Benefits coverage in effect on the Eligible Executive’s
Separation Date under the Motorola Employee Medical Benefits Plan (“Medical Plan”), as amended from
time to time, will be continued at the regular employee contribution rate through the end of the
Severance Period, provided that the Eligible Executive complies with all terms and conditions of
the Medical Plan, including paying the necessary contributions and provided further, if the
Eligible Executive is reemployed with another employer and becomes covered under that employer’s
medical plan, the medical benefits described herein (if they are not terminated as provided in
COBRA, defined below) shall be secondary to those provided under such other plan. The difference
between the cost for such coverage under COBRA, as defined below, and the amount of the necessary
contributions that the Eligible Executive is required to pay for such coverage as provided above
will be paid by Motorola and considered imputed income to the Eligible Executive. The Eligible
Executive is responsible for the payment of

- 3 -

 

income tax due as a result of such imputed income. After the total period of medical benefit
continuation provided in this Plan, the Eligible Executive may elect to continue medical benefits
under the Medical Plan at his or her own expense, in accordance with COBRA. The period of medical
benefit continuation described immediately above counts toward and reduces the maximum coverage
under Section 4980B of the Code (“COBRA”), as described in Treasury Regulation Section 54.4980B-7,
A-7(a). The COBRA period commences on the first of the month following the Separation Date. If
the Eligible Executive is eligible for coverage under the Motorola Post-Employment Health Benefits
Plan or any restated or successor plan (the “Retiree Plan”), the Eligible Executive may apply for
such coverage, provided that he or she makes an election for such coverage, in accordance with the
terms and conditions for such coverage under the Retiree Plan. The Eligible Executive may wait
until the end of the period of continued Medical Plan coverage provided for in this Plan before
electing to begin coverage under the Retiree Plan. If the Eligible Executive commences coverage
under the Retiree Plan before he or she has exhausted the continued Medical Plan coverage provided
for in this Plan, the continued Medical Plan coverage will end.

     (h) Outplacement. Motorola also will provide senior executive outplacement and career
continuation services by a firm to be selected by Motorola for up to 12 months following the
Separation Date, as set forth in Exhibit A, if the Eligible Executive elects to participate in such
services.

     (i) Other Benefits. Except as otherwise expressly provided in the Plan, the effect of
an Eligible Executive’s termination and this Plan upon the Eligible Executive’s participation in,
or coverage under, any of Motorola’s benefit or compensation plans, including but not limited to
the Motorola Omnibus Incentive Plan of 2006, as amended and restated through January 31, 2008, the
Motorola Incentive Plan, the officer-level sales incentive plans, the General Instrument
Corporation 1997 Long-Term Incentive Plan, the General Instrument Corporation 1999 Long-Term
Incentive Plan, the Motorola Elected Officers Supplementary Retirement Plan, the Motorola
Supplemental Pension Plan, the Motorola Elected Officers Life Insurance Plan, the 2006 Motorola
Long Range Incentive Plan for any given performance cycle, the Motorola Management Deferred
Compensation Plan, the Motorola Financial Planning Program, the VP Change in Control Plans or any
other applicable group plan, stock option plan and any restricted stock, stock unit or SAR
agreements, shall be governed by the terms of those plans and agreements. Motorola is making no
guarantee, warranty or representation in this Plan regarding any position that may be taken by any
administrator or plan regarding the effect of this Plan upon the Eligible Executive’s rights,
benefits or coverage under those plans and agreements.

     (j) Financial Planning Services. Notwithstanding anything to the contrary in Section
3(i) above, for any Eligible Executive who participates in the Motorola Financial Planning Program
on such Eligible Executive’s Separation Date, Motorola will pay the Eligible Executive’s financial
planning vendor for services rendered pursuant to the Motorola Financial Planning Program through
the later of (i) 12 months following the Separation Date or (ii) April 30 of the calendar year
following the Separation Year. Payment will be made within 90 days following the date the
Eligible Executive submits evidence that he or she incurred such expenses, and in all events prior
to the last day of the calendar year following the calendar year in which he or she incurs the
expense. In no event will the amount of such expenses paid in one year affect

- 4 -

 

the amount of expenses eligible for payment, or in-kind benefits to be provided, in any other
taxable year.

     (k) Eligible Executives Whose Work Country is not the United States. To the extent an
Eligible Executive is party to an agreement providing that Motorola shall relocate and/or
repatriate him or her and eligible dependents to the United States and such agreement is still in
effect on the Separation Date, Motorola will provide relocation and/or repatriation services in
accord with the terms of that agreement. Payment of relocation vendors and/or reimbursement of
the Eligible Executive will be made within 90 days following the date the Eligible Executive
submits evidence that he or she incurred such expenses, and in all events prior to the last day of
the calendar year following the calendar year in which he or she incurs the expense. In no event
will the amount of such expenses paid or reimbursed in one year affect the amount of expenses
eligible for payment or reimbursement, or in-kind benefit to be provided, in any other taxable
year.

     (l) Cessation of Payments upon Rehire. If an Eligible Executive is rehired by
Motorola within the Severance Period, he or she shall repay a pro rata portion of the Severance
Allowance calculated by multiplying the Severance Allowance by a fraction, the numerator of which
is the total number of months of the Eligible Executive’s Severance Period minus the number of
completed months of severance following the Separation Date, and the denominator of which is the
total number of months of the Eligible Executive’s Severance Period. This requirement may be
waived by Motorola, Inc.’s most senior Human Resources officer for compelling business reasons, as
determined in his or her discretion. The Alternate MIP Award or the Alternate SIP Award, as
applicable, shall be paid to, and/or may be retained by, the Eligible Executive as otherwise
provided herein, provided that, this requirement may be waived by the most senior Human Resources
officer in favor of reinstating the Eligible Executive to the MIP Plan or an officer-level SIP Plan
for the performance period in which the Separation Date occurred, provided further that the payment
under the MIP Plan or an officer level SIP Plan for the performance period of reinstatement will be
paid at the same time either the Alternate MIP Award or Alternate SIP Award would have been paid if
not so waived. In no event may the Eligible Executive receive an Alternate MIP Award or Alternate
SIP Award and either an actual MIP Plan award or an actual SIP Plan award for the same performance
period, as the case may be.

     (m) Committee Discretion. Notwithstanding the foregoing, the Compensation and
Leadership Committee of Motorola, Inc.’s Board of Directors or its delegate may, in its sole
discretion, reduce, eliminate, or otherwise adjust the amount of an Eligible Executive’s Severance
Pay and benefits, including the Alternate MIP Award and/or Alternate SIP Award. Such determination
shall be made before any severance payments commence under this Section 3. Unless the Compensation
and Leadership Committee determines otherwise, or unless the Eligible Executive is an officer
subject to Section 16 of the Securities Exchange Act of 1934 or an officer reporting directly to
Motorola, Inc.’s Chief Executive Officer or a member of Motorola’s Senior Leadership Team,
Motorola, Inc.’s most senior Human Resources officer is delegated the authority to exercise the
discretion provided by this provision with respect to Eligible Executives, provided such
determination is made before any severance payments commence under this Section 3 and he or she
reports such adjustment to the Compensation and

- 5 -

 

Leadership Committee in writing no later than the Committee’s next regularly scheduled
meeting, with a copy to the Plan Administrator.

     (n) Death of Executive. If an Eligible Executive entitled to a Severance Allowance or
payments under Section 3(c) or (d) should die before all such amounts payable to him or her have
been paid, such unpaid amounts shall be paid no later than 90 days following the Eligible
Executive’s death (or in the case of payments under Section 3(c) or (d), within 90 days following
determination of the applicable performance results) to Eligible Executive’s legal representative,
if there be one, and, if not, to the Executive’s spouse, parents, children or other relatives or
dependents of such Executive as the Plan Administrator, in his or her discretion, may determine;
provided, however, such payee or payees shall not have the right to designate the taxable year of
payment. Any payment so made shall be a complete discharge of any liability with respect to such
benefit.

     (o) Business Expenses. Each Eligible Executive shall be responsible for any personal
charges incurred on any Motorola credit card or other account used by the Eligible Executive prior
to the Eligible Executive’s Separation Date and the Eligible Executive shall pay all such charges
when due. Motorola shall reimburse the Eligible Executive for any pending, reasonable
business-related credit card charges for which the Eligible Executive has not already been
reimbursed as of the Eligible Executive’s Separation Date provided the Eligible Executive files a
proper travel and expense report. Such reimbursement shall be made not later than December 31 of
the year following the year in which the Executive incurs the expense. In no event will the amount
of such expenses paid in one year affect the amount of expenses eligible for payment, or in-kind
benefits to be provided, in any other taxable year.

     4. Eligible Executive Obligations.

     (a) General. An Eligible Executive’s Severance Pay and benefits provided under
Section 3 are expressly conditioned on the Eligible Executive’s compliance with the obligations
contained in certain Stock Option Agreements and/or Stock Option Consideration Agreements and/or
Restricted Stock Agreements and/or Restricted Stock Unit Agreements with Motorola, as well as
various other agreements for the protection of Motorola’s confidential and proprietary information.
Such agreements, including but not limited to the non-disclosure, non-competition and
non-solicitation provisions therein, continue in full force and effect according to their terms.
In addition to complying with all the other obligations contained in the above-referenced
agreements, the Eligible Executive must immediately inform Motorola of (i) the identity of any new
employment, start-up business or self-employment in which he or she has engaged or will engage
between the Separation Date and the second anniversary of the Separation Date, (ii) his or her
title in any such engagement, (iii) his or her duties and responsibilities in any such engagement
and (iv) any information Motorola reasonably requests in order to determine the Eligible
Executive’s compliance with the above-referenced agreements and this Plan. By accepting the
Severance Pay and benefits outlined herein, the Eligible Executive authorizes Motorola to provide a
copy of any agreement between him or her and Motorola for the protection of Motorola’s confidential
and/or proprietary information to any new employer or other entity or business by which he or she
is engaged up to the second anniversary of the Separation Date.

- 6 -

 

     (b) Release of Claims. In order to receive the Severance Pay and benefits available
under the Plan, an Eligible Executive must work through his or her Separation Date, as determined
in the sole discretion of his or her direct manager, and sign and return a General Release, in a
form acceptable to the Plan Administrator, within forty-nine (49) days after the Eligible
Executive’s Separation Date. The Plan Administrator may designate longer periods in his or her
discretion. If the Plan Administrator approves a period longer than the period designated for an
Eligible Executive to sign the General Release, and such Eligible Executive’s medical benefits
already have been terminated for failure to pay the monthly contribution or COBRA contribution, it
shall not be necessary to provide such Eligible Executive with the extended medical benefits as
consideration for signing the General Release.

The Plan Administrator may from time to time alter the specific terms of the General Release used
for purposes of the Plan, or add new terms, as it determines to be appropriate in his or her
discretion.

     (c) Non-Disparagement. An Eligible Executive shall not, directly or indirectly,
individually or in concert with others, engage in any conduct or make any statement calculated or
likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon Motorola
or its good will, products or business opportunities, or in any manner detrimental to Motorola,
though the Eligible Executive may give truthful and nonmalicious testimony if properly subpoenaed
to testify under oath.

     (d) Records/Company Property. The Eligible Executive shall return to Motorola by his
or her Separation Date all property belonging to Motorola and confidential and/or proprietary
information including the originals and all copies and excerpts of documents, drawings, reports,
specifications, samples and the like that were/are in the Eligible Executive’s possession at all
Motorola and non-Motorola locations, including but not limited to information stored electronically
on computer hard drives or disks.

     (e) Cooperation and Indemnification. From the Eligible Executive’s Separation Date,
and for as long thereafter as shall be reasonably necessary, the Eligible Executive shall cooperate
fully with Motorola in any investigation, negotiation, litigation or other action arising out of
transactions in which he or she was involved or of which he or she had knowledge during his or her
employment by Motorola and its Affiliates and Subsidiaries. If the Eligible Executive incurs any
business expenses in the course of performing his or her obligations under this paragraph, he or
she will be reimbursed for the full amount of all reasonable expenses upon submission of adequate
receipts confirming that such expenses actually were incurred. All reimbursements under this
Section 4(e) will be for expenses incurred by the Eligible Executive during his or her lifetime.
Reimbursement will be made within 90 days following the date the Eligible Executive submits
evidence that he or she incurred such expenses, and in all events prior to the last day of the
calendar year following the calendar year in which he or she incurs the expense. In no event will
the amount of expenses reimbursed in one year affect the amount of expenses eligible for
reimbursement, or in-kind benefit to be provided, in any other taxable year. Motorola will
indemnify the Eligible Executive for judgments, fines, penalties, settlement amounts and expenses
(including reasonable attorneys fees and expenses) reasonably incurred in defending any actual or
threatened action, lawsuit, investigation or other similar proceeding arising out of his or her
employment with Motorola, provided that if the matter is a civil action, he or she acted

- 7 -

 

in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the
best interests of Motorola and if the matter is a criminal action, the Eligible Executive had no
reasonable cause to believe his or her conduct was unlawful (in each case as determined under the
Delaware General Corporation Law).

     (f) Remedies for Breach of Eligible Executive’s Obligations. The payments set forth
in Section 3 above are conditioned upon the Eligible Executive’s faithful performance of his or her
obligations pursuant to Paragraph 4(a) and (c) through (e) of this Plan. If the Eligible Executive
breaches those obligations, including any breach of the agreements referenced in Section 4(a), he
or she must promptly repay to Motorola all sums received from Motorola under Section 3(a), (c),
(d), less the sum of (i) One Thousand Dollars ($1,000.00) and (ii) the amount of accrued but unpaid
paid time off due the Executive at his or her Separation Date. In addition, Motorola shall be
entitled to all rights and remedies set forth in the agreements referenced in Section 4(a). Any
repayment of Severance Pay paid pursuant to this Plan or repayment pursuant to the remedies set
forth in the agreements referenced in Section 4(a) shall not reduce any money damages that may be
available to Motorola as a result of the breach.

     By accepting Severance Pay and benefits under this Plan, each Eligible Executive acknowledges
that the harm caused to Motorola by the breach or anticipated breach of Section 4(a) and (c)
through (e) of this Plan will be irreparable. The Eligible Executive agrees Motorola may obtain
injunctive relief against him or her in addition to and cumulative with any other legal or
equitable rights and remedies Motorola may have pursuant to this Plan or law, including the
recovery of liquidated damages. The Eligible Executive agrees that any interim or final equitable
relief entered by a court of competent jurisdiction, as specified in Section 7(e) below, will, at
the request of Motorola, be entered on consent and enforced by any such court having jurisdiction
over him or her. This relief would occur without prejudice to any rights either party may have to
appeal from the proceedings that resulted in any grant of such relief. In any dispute regarding
this Plan, each party will pay its own fees and costs.

     5. Plan Administration.

     The Plan Administrator is the party responsible for the administration of the Plan. The
Director of Global Benefits, or his or her successor, will serve as the “Plan Administrator” of the
Plan and the “named fiduciary” within the meaning of such terms as defined in ERISA.

     The Plan Administrator will perform all duties imposed upon him or her by the terms of ERISA.
The Plan Administrator shall be responsible for the general administration and management of the
Plan. In his or her role of administering the Plan, the Plan Administrator shall have the
discretionary powers and duties necessary to fulfill his or her responsibilities, including, but
not limited to, the following powers and duties to: (i) interpret, construe and apply the Plan,
including the making of factual determinations, as the Plan Administrator or his or her designee,
in his or her sole discretion, determines to be appropriate; (ii) determine all questions relating
to the eligibility of persons to participate or receive benefits as the Plan Administrator or his
or her designee, in his or her sole discretion, deems to be appropriate; (iii) appoint individuals
to assist in any function, and generally to perform all other acts necessary in administering the
Plan as the Plan Administrator or his or her designee, in his or her sole discretion, deems
appropriate; and (iv) seek such expert advice as the Plan Administrator or his or her designee

- 8 -

 

deems reasonably necessary with respect to the Plan. The Plan Administrator and his or her
designee shall be entitled to rely upon the information and advice furnished by such delegates and
experts, unless actually knowing such information and advice to be inaccurate or unlawful.

     The decisions of the Plan Administrator, or persons delegated with the authority to make such
decisions for the Plan Administrator, and the decisions of the Vice President for Global Rewards
(or, where applicable, the most senior Law Department labor and employment law attorney or his or
her designee) under Section 6, will be final and conclusive with respect to all questions relating
to the Plan.

     6. Procedure for Making and Appealing Claims for Benefits

     If an employee or vice president believes he or she has not been paid the Severance Pay or
benefits to which he or she is entitled under the Plan, the employee or vice president must file a
claim for benefits in writing with the Plan Administrator. Within ninety (90) days after receiving
a claim (or within 180 days if special circumstances require an extension of time and written
notice was provided to the employee or vice president before the expiration of the initial ninety
(90) day period), the Plan Administrator will:

	 	•	 	either accept or deny the claim completely or partially; and
	 
	 	•	 	notify the employee or vice president of acceptance or denial of the claim.

     If the claim is completely or partially denied, the Plan Administrator will furnish a written
notice to the employee or vice president containing the following information:

	 	•	 	specific reasons for the denial;
	 
	 	•	 	specific references to the Plan provisions on which any denial is based;
	 
	 	•	 	a description of any additional material or information that the employee or vice
president must provide in order to support the claim and an explanation of why it is
required; and
	 
	 	•	 	an explanation of the Plan’s appeal procedures and the applicable time limits,
including a statement of the right to bring a civil action under Section 502(a) of
ERISA following an adverse determination on appeal.

     The employee or vice president may appeal the denial of the claim and have the Vice President
for Global Rewards (or in the case of a conflict of interest, the most senior Law Department labor
and employment law attorney or his or her designee) reconsider the decision. The employee, vice
president or his or her authorized representative has the right to:

	 	•	 	request an appeal by written request to the Vice President for Global Rewards not
later than sixty (60) days after receipt of notice from the Plan Administrator denying
the claim;

- 9 -

 

	 	•	 	upon request and free of charge, have reasonable access to, and copies of, all
documents, records, and other information relevant to the claim; and
	 
	 	•	 	submit issues and comments regarding the claim in writing, along with documents,
records and other information, to the Vice President for Global Rewards.

     The Vice President for Global Rewards (or, where applicable, the most senior Law Department
labor and employment law attorney or his or her designee) will make a decision with respect to
such an appeal within sixty (60) days after receiving the written request for such appeal (this
sixty (60) day period can be extended for an additional sixty (60) days if special circumstances
require an extension of time and written notice is provided to the employee or vice president or
his or her authorized representative before the extension begins). The review will take into
account all comments, documents, records, and other information relating to the claim submitted in
connection with the review, without regard to whether such information was submitted or considered
in the initial claim determination. The employee, vice president or his or her authorized
representative will be advised of the decision on the appeal in writing. The notice will set forth
the specific reasons for the decision and make specific reference to Plan provisions upon which the
decision on the appeal is based. In the case of an adverse benefit determination on appeal, in
addition to the information in the preceding sentence, the notice shall include (i) a statement
that the employee or vice president is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to his
or her claim for benefits, and (ii) a statement of the employee’s or vice president’s right to
bring a civil action under Section 502(a) of ERISA. In performing his or her duties hereunder, the
Vice President for Global Rewards (or, where applicable, the most senior Law Department labor and
employment law attorney or his or her designee) shall have the power to interpret and construe the
Plan and make factual determinations as are granted to the Plan Administrator under Section 5.

     In no event shall the employee, vice president or any other person be entitled to challenge
the decision of the Plan Administrator or the Vice President for Global Rewards (or, where
applicable, the most senior Law Department labor and employment law attorney or his or her
designee) in court or in any other administrative proceeding unless and until the claim and appeal
procedures described above have been complied with and exhausted.

     7. Miscellaneous.

     (a) Amendment. Motorola, Inc., by action of its Compensation and Leadership
Committee, reserves the right to amend this Plan, in whole or in part, or to discontinue or
terminate the Plan, at any time in its sole discretion. No amendment, discontinuance or
termination, however, may adversely affect the rights of any Eligible Executive without his or her
written consent if such person (i) is then receiving Severance Pay and benefits under the Plan, or
(ii) is entitled to receive Severance Pay and benefits under the Plan on account of a prior
Qualifying Termination. In addition to the foregoing, for a period of three years following a
Change in Control, the Plan may not be discontinued or terminated or amended in such a manner that
decreases the Severance Pay or benefits payable to any Eligible Executive or that makes any
provision less favorable for an Eligible Executive.

- 10 -

 

     (b) Withholding. Motorola shall be entitled to withhold or cause to be withheld from
amounts to be paid under this Plan to an Eligible Executive any federal, state, or local
withholding or other taxes or amounts that it is from time to time required to withhold.

     (c) Compliance with Section 409A. Notwithstanding anything to the contrary contained
in this Plan, the payments and benefits provided under this Plan are intended to comply with Code
Section 409A, and the provisions of this Plan shall be interpreted such that the payments and
benefits provided are either not subject to Code Section 409A or are in compliance with Code
Section 409A. Motorola, Inc. may modify the payments and benefits under this Plan at any time
solely as necessary to avoid adverse tax consequences under Code Section 409A. Notwithstanding any
provision in this Plan to the contrary, if the Eligible Executive is a “specified employee” (within
the meaning of Treasury Regulation Section 1.409A-1(i) and using the identification methodology
selected by Motorola from time to time) on the Eligible Executive’s Separation Date, then any
payment or benefit which would be considered “nonqualified deferred compensation” within the
meaning of Code Section 409A that the Eligible Executive is entitled to receive upon the Eligible
Executive’s Separation Date and which otherwise would be payable during the six-month period
immediately following the Eligible Executive’s Separation Date will instead be paid or made
available on the earlier of the first day of the seventh month following the Eligible Executive’s
Separation Date and the Eligible Executive’s death.

     (d) No Implied Employment Rights. The Plan shall not be deemed to give any employee
or other person any right to be retained in the employ of Motorola or its Affiliates or
Subsidiaries or to interfere with the right of Motorola or its Affiliates or Subsidiaries to
discharge any employee or other person at any time and for any reason.

     (e) Governing Law and Venue. This Plan is intended to be governed by and will be
construed in accordance with ERISA, and to the extent not preempted by ERISA, by the laws of the
state of Illinois, without regard for any choice of law principles thereof. Any legal action
related to this Plan and any referenced agreements or award documents shall be brought only in a
federal or state court located in Cook County, Illinois, USA. The Eligible Executive accepts the
jurisdiction of these courts and consents to service of process from said courts for legal actions
related to this Plan and any referenced agreements or award documents.

     (f) Severability. If any provision of the Plan is held to be invalid or
unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan,
and the Plan will be construed and enforced as if such provision had not been included.

     (g) Successors.

          (i) Motorola, Inc. shall require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all of the business
and/or assets of Motorola, Inc. expressly to assume and agree to perform this Plan in the same
manner and to the same extent Motorola, Inc. would be required to perform if no such succession had
taken place. This Plan shall be binding upon, inure to the benefit of and be enforceable by
Motorola, Inc. and any successor to Motorola, Inc., including without limitation any persons
acquiring directly or indirectly all or substantially all of the business and/or assets of

- 11 -

 

Motorola, Inc. whether by purchase, merger, consolidation, reorganization or otherwise (and
such successor shall thereafter be deemed to be “Motorola, Inc.” for the purposes of this Plan),
and the Eligible Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributes and/or legatees.

          (ii) This Plan is intended to be for the exclusive benefit of Motorola and the Eligible
Executive, and except as provided in clause (i) of this Section 7(g), no third party shall have any
rights hereunder.

     8. Definitions.

     “Affiliate” means any corporation or entity other than Motorola, Inc. which, as of a
given date, is a member of the same controlled group of corporations or the same group of trades or
businesses under common control as Motorola, Inc. determined in accordance with Sections 414(b) or
(c) of the Code.

     “Alternate MIP Award” has the meaning set forth in Section 3(c).

     “Alternate SIP Award” has the meaning set forth in Section 3(d).

     “Base Salary” means an Eligible Executive’s monthly rate of base salary as in effect
immediately prior to his or her termination from employment.

     “Cause” means (i) the Eligible Executive’s conviction of any criminal violation
involving dishonesty, fraud or breach of trust or (ii) the Eligible Executive’s willful engagement
in gross misconduct in the performance of the Eligible Executive’s duties that materially injures
Motorola.

     “Change in Control” means the occurrence of a change in control of a nature that would
be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
under the Securities Exchange Act of 1934, as amended (“Exchange Act”), or any successor provision
thereto, whether or not Motorola, Inc. is then subject to such reporting requirement; provided
that, without limitation, such a Change in Control shall be deemed to have occurred if (a) any
“person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of Motorola, Inc. representing 20% or more of the combined voting power
of Motorola, Inc.’s then outstanding securities (other than Motorola, Inc. or any employee benefit
plan of Motorola, Inc.’s or of an Affiliate or Subsidiary; and, for purposes of the Plan, no Change
in Control shall be deemed to have occurred as a result of the “beneficial ownership,” or changes
therein, of Motorola, Inc.’s securities by either of the foregoing), (b) there shall be consummated
(i) any consolidation or merger of Motorola, Inc. in which Motorola, Inc. is not the surviving or
continuing corporation or pursuant to which shares of common stock would be converted into or
exchanged for cash, securities or other property, other than a merger of Motorola, Inc. in which
the holders of common stock immediately prior to the merger have, directly or indirectly, at least
a 65% ownership interest in the outstanding common stock of the surviving corporation immediately
after the merger, or (ii) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of Motorola, Inc. other
than any such transaction with entities in which the holders of the Motorola Inc.’s common stock,
directly or indirectly, have at least a

- 12 -

 

65% ownership interest, (c) the stockholders of Motorola, Inc. approve any plan or proposal
for the liquidation or dissolution of Motorola, Inc., or (d) as the result of, or in connection
with, any cash tender offer, exchange offer, merger or other business combination, sale of assets,
proxy or consent solicitation (other than by the Board of Directors of Motorola, Inc. (the
“Board”)), contested election or substantial stock accumulation (a “Control Transaction”), the
members of the Board immediately prior to the first public announcement relating to such Control
Transaction shall thereafter cease to constitute a majority of the Board.

     “Compensation and Leadership Committee” means the Compensation and Leadership
Committee of the Motorola, Inc. Board of Directors.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Eligible Executive” means (x) any (i) Appointed Vice President, Corporate Vice
President, Senior Vice President or Executive Vice President of Motorola on the date he or she is
notified of termination or (ii) other person whose salary grade is EXB, EXC, EXS, or EXV on the
date he or she is notified of termination, (y) whose Pay Country is the United States of America
and (z) whose employment with Motorola is terminated in a Qualifying Termination. An employee or
officer of Motorola who is not an Eligible Executive shall not be entitled to any Severance Pay or
benefits under the Plan.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Motorola” means Motorola, Inc. and any successors thereto, and any of its U.S.
Subsidiaries and/or U.S. Affiliates .

     “Pay Country” means the country on whose payroll the Eligible Executive resides and
from which his or her base salary and other benefits are paid.

     “Plan” means the Motorola, Inc. Executive Severance Plan.

     “Plan Administrator” has the meaning provided in Section 5.

     “Qualifying Termination” means termination of employment with Motorola in which the
employment relationship is terminated by Motorola, specifically excluding, however:

          (a) voluntary termination from employment with Motorola, including voluntary termination due
to retirement, or retirement at any applicable mandatory retirement age;

          (b) termination of employment due to Total and Permanent Disability;

          (c) termination of employment by Motorola for Cause;

          (d) termination of employment if the employee or officer (i) accepts or is offered employment
at a substantially similar direct compensation level in the aggregate with another company in
connection with the sale, lease, exchange, outsourcing arrangement or any other type of asset
transfer or transfer of any portion of a facility or all or any portion of a discrete
organizational unit or business segment of Motorola, or (ii) remains employed by an Affiliate or

- 13 -

 

Subsidiary that is sold, or whose shares are distributed to Motorola, Inc.’s stockholders in a
spin-off or similar transaction;

          (e) termination of employment with Motorola which is followed by immediate or continued
employment by Motorola or an Affiliate or Subsidiary;

          (f) termination of employment by death; or

          (g) voluntary termination of employment by failing to return to work from an approved leave of
absence.

The Plan Administrator shall determine within his or her sole discretion whether a termination is
by reason of a Qualifying Termination or under circumstances which do not constitute a Qualifying
Termination as provided above.

     “Separation Date” means the date of the Eligible Executive’s Separation from Service,
which generally will be Eligible Executive’s last date on Motorola’s payroll.

     “Separation Year” means the calendar year in which the Separation Date occurs.

     “Severance Allowance” has the meaning as provided in Exhibit A.

     “Severance Pay” means Severance Allowance as provided in Section 3(a) and Exhibit A
plus Alternate MIP Award or Alternate SIP Award, as applicable, as provided in Section 3(c) and
(d).

     “Severance Period” means the number of total months of Severance Allowance specified
for a given Eligible Executive as provided in Section 3(a) and Exhibit A.

     “Subsidiary” means any corporation or other entity in which a 50% or greater interest
is at the time directly or indirectly owned by Motorola, Inc. and which Motorola, Inc. consolidates
for financial reporting purposes.

     “Total and Permanent Disability” means entitlement to long term disability benefits
under the Motorola Disability Income Plan, as amended and any successor plan or a determination of
a permanent and total disability under a state workers compensation statute.

- 14 -

 

Exhibit A

	 	 	 	 	 	 	 	 	 
	 	 	Severance Pay and Benefits
	 	 	 	 	 	 	 	 	Welfare Plan Benefits;
	 	 	 	 	Alternate MIP Award—	 	Alternate SIP Award—	 	Outplacement; Financial
	Level/Salary Grade	 	Severance Allowance	 	MIP Participants	 	SIP Participants	 	Planning Services
	Appointed Vice 

President and/or 

Salary Grade EXB

	 	9 months of Base
Salary (“Severance
Allowance”)
	 	The Alternate MIP
Award as provided
in Section 3(c)
	 	The Alternate SIP
Award as provided
in Section 3(d)
	 	(a) 9 months of
Medical Plan coverage
at the active
employee premium
rate, offset against
the COBRA amount as
provided in Section
3(g); and (b) up to
12 months
outplacement services
as provided in
Section 3(h).
Financial planning
services as provided
in Section 3(j).
	 
	 	 	 	 	 	 	 	 
	Elected Officers
and/or Salary
Grades EXC, EXS and
EXV

	 	12 months of Base
Salary (“Severance
Allowance”)
	 	The Alternate MIP
Award as provided
in Section 3(c)
	 	The Alternate SIP
Award as provided
in Section 3(d)
	 	(a) 12 months of
Medical Plan coverage
at the active
employee premium
rate, offset against
the COBRA amount as
provided in Section
3(g); and (b) up to
12 months
outplacement services
as provided in
Section 3(h).
Financial planning
services as provided
in Section 3(j).

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