Document:

EX-10.5

Exhibit 10.5

MOTOROLA OMNIBUS INCENTIVE PLAN OF 2006

(as amended through March 19, 2009, subject to stockholder approval as indicated)

     1. Purpose. The purposes of the Motorola Omnibus Incentive Plan of 2006 (the “Plan”) are (i)
to encourage outstanding individuals to accept or continue employment with Motorola, Inc.
(“Motorola” or the “Company”) and its Subsidiaries or to serve as directors of Motorola, and (ii)
to furnish maximum incentive to those persons to improve operations and increase profits and to
strengthen the mutuality of interest between those persons and Motorola’s stockholders by providing
them stock options and other stock and cash incentives.

     2. Administration. The Plan will be administered by a Committee (the “Committee”) of the
Motorola Board of Directors consisting of two or more directors as the Board may designate from
time to time, each of whom shall satisfy such requirements as:

          (a) the Securities and Exchange Commission may establish for administrators acting under plans
intended to qualify for exemption under Rule 16b-3 or its successor under the Securities Exchange
Act of 1934 (the “Exchange Act”);

          (b) the New York Stock Exchange may establish pursuant to its rule-making authority; and

          (c) the Internal Revenue Service may establish for outside directors acting under plans
intended to qualify for exemption under Section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”).

The Compensation and Leadership Committee shall serve as the Committee administering the Plan until
such time as the Board designates a different Committee.

The Committee shall have the discretionary authority to construe and interpret the Plan and any
benefits granted thereunder, to establish and amend rules for Plan administration, to change the
terms and conditions of options and other benefits at or after grant, to correct any defect or
supply any omission or reconcile any inconsistency in the Plan or in any option or other benefit
granted under the Plan, and to make all other determinations which it deems necessary or advisable
for the administration of the Plan. The determinations of the Committee shall be made

 

 

in accordance with their judgment as to the best interests of Motorola and its stockholders and in
accordance with the purposes of the Plan. Any determination of the Committee under the Plan may be
made without notice or meeting of the Committee, in writing signed by all the Committee members.
The Committee may authorize one or more officers of the Company to select employees to participate
in the Plan and to determine the number of option shares and other awards to be granted to such
participants, except with respect to awards to officers subject to Section 16 of the Exchange Act
or officers who are, or who are reasonably expected to be, “covered employees” within the meaning
of Section 162(m) of the Code (“Covered Employees”) and any reference in the Plan to the Committee
shall include such officer or officers.

     3. Participants. Participants may consist of all employees of Motorola and its Subsidiaries
and all non-employee directors of Motorola; provided, however, the following individuals shall be
excluded from participation in the plan: (a) contract labor (including without limitation black
badges, brown badges, contractors, consultants, contract employees and job shoppers) regardless of
length of service; (b) employees whose base wage or base salary is not processed for payment by a
Payroll Department of Motorola or any Subsidiary; (c) any individual performing services under an
independent contractor or consultant agreement, a purchase order, a supplier agreement or any other
agreement that the Company enters into for service. Any corporation or other entity in which a 50%
or greater interest is at the time directly or indirectly owned by Motorola and which Motorola
consolidates for financial reporting purposes shall be a “Subsidiary” for purposes of the Plan.
Designation of a participant in any year shall not require the Committee to designate that person
to receive a benefit in any other year or to receive the same type or amount of benefit as granted
to the participant in any other year or as granted to any other participant in any year. The
Committee shall consider all factors that it deems relevant in selecting participants and in
determining the type and amount of their respective benefits.

     4. Shares Available under the Plan. There is hereby reserved for issuance under the Plan an
aggregate of 80 million shares of Motorola common stock. In connection with approving this Plan,
and contingent upon receipt of stockholder approval of this Plan, the Board of Directors has
approved a merger of the Motorola Omnibus Incentive Plan of 2003, Motorola Omnibus Incentive Plan
of 2002, the Motorola Omnibus Incentive Plan of 2000, and the

 

 

Motorola Amended and Restated Incentive Plan of 1998 (collectively, the “Prior Plans”) into
this Plan, so that on or after the date this Plan is approved by stockholders, the maximum number
of shares reserved for issuance under this Plan shall not exceed (a) the total number of shares
reserved for issuance under this Plan plus (b) the number of shares approved and available for
grant under the Prior Plans as of the date of such stockholder approval plus (c) any shares that
become available for issuance pursuant to the remainder of this section 4. If there is (i) a
lapse, expiration, termination, forfeiture or cancellation of any Stock Option or other benefit
outstanding under this Plan, a Prior Plan or under the Motorola Share Option Plan of 1996 (the
“1996 Plan”), prior to the issuance of shares thereunder or (ii) a forfeiture of any shares of
restricted stock or shares subject to stock awards granted under this Plan, a Prior Plan or the
1996 Plan prior to vesting, then the shares subject to these options or other benefits shall be
added to the shares available for benefits under the Plan (to the extent permitted under the terms
of the Prior Plans or the 1996 Plan if the award originally occurred under such plan). Shares
covered by a benefit granted under the Plan shall not be counted as used unless and until they are
actually issued and delivered to a participant. Any shares covered by a Stock Appreciation Right
(including a Stock Appreciation Right settled in stock which the Committee, in its discretion, may
substitute for an outstanding Stock Option) shall be counted as used only to the extent shares are
actually issued to the participant upon exercise of the right. In addition, any shares of common
stock exchanged by an optionee as full or partial payment of the exercise price under any stock
option exercised under the Plan, any shares retained by Motorola to comply with applicable income
tax withholding requirements, and any shares covered by a benefit which is settled in cash, shall
be added to the shares available for benefits under the Plan (to the extent permitted under the
terms of the Prior Plans or the 1996 Plan if the award originally occurred under such plan). All
shares issued under the Plan may be either authorized and unissued shares or issued shares
reacquired by Motorola. All of the available shares may, but need not, be issued pursuant to the
exercise of Incentive Stock Options (as defined in Section 422 of the Code); provided, however,
notwithstanding an Option’s designation, to the extent that Incentive Stock Options are exercisable
for the first time by the Participant during any calendar year with respect to Shares whose
aggregate Fair Market Value exceeds $100,000 (regardless of whether such Incentive Stock Options
were granted under this Plan, the Prior Plans or the 1996 Plan), such Options shall be treated as
nonqualified Stock Options.

 

 

          Under the Plan, no participant may receive in any calendar year (i) Stock Options relating to
more than 3,000,000 shares, (ii) Stock Appreciation Rights relating to more than 3,000,000 shares,
(iii) Restricted Stock or Restricted Stock Units relating to more than 1,500,000 shares, (iv)
Performance Shares relating to more than 1,500,000 shares, or (v) Deferred Stock Units relating to
more than 50,000 shares. No non-employee director may receive in any calendar year Stock Options
relating to more than 50,000 shares or Restricted Stock Units or Deferred Stock Units relating to
more than 50,000 shares.

          The shares reserved for issuance and each of the limitations set forth above shall be subject
to adjustment in accordance with section 16 hereof.

     5. Types of Benefits. Benefits under the Plan shall consist of Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance
Shares, Performance Cash Awards, Annual Management Incentive Awards and Other Stock or Cash Awards,
all as described below.

     6. Stock Options. Stock Options may be granted to participants, at any time as determined by
the Committee. The Committee shall determine the number of shares subject to each option and
whether the option is an Incentive Stock Option. The exercise price for each option shall be
determined by the Committee but shall not be less than 100% of the fair market value of Motorola’s
common stock on the date the option is granted. Each option shall expire at such time as the
Committee shall determine at the time of grant. Options shall be exercisable at such time and
subject to such terms and conditions as the Committee shall determine; provided, however, that no
option shall be exercisable later than the tenth anniversary of its grant. The exercise price,
upon exercise of any option, shall be payable to Motorola in full by (a) cash payment or its
equivalent, (b) tendering previously acquired shares having a fair market value at the time of
exercise equal to the exercise price or certification of ownership of such previously-acquired
shares, (c) to the extent permitted by applicable law, delivery of a properly executed exercise
notice, together with irrevocable instructions to a broker to promptly deliver to Motorola the
amount of sale proceeds from the option shares or loan proceeds to pay the exercise price and any
withholding taxes due to Motorola, and (d) such other methods of payment as the

 

 

Committee, at its discretion, deems appropriate. Notwithstanding any other provision of the
Plan to the contrary, upon approval of the Company’s stockholders, the Committee may provide for,
and the Company may implement, a one time only option exchange offer, pursuant to which certain
outstanding Stock Options could, at the election of the person holding such Stock Option, be
tendered to the Company for cancellation in exchange for the issuance of a lesser amount of Stock
Options with a lower exercise price, or other equity benefit as approved by the Committee, provided
that such one time only option exchange is implemented within twelve months of the date of such
stockholder approval. (Subject to stockholder approval)

     7. Stock Appreciation Rights. Stock Appreciation Rights (“SARs”) may be granted to
participants at any time as determined by the Committee. Notwithstanding any other provision of
the Plan, the Committee may, in its discretion, substitute SARs which can be settled only in stock
for outstanding Stock Options. The grant price of a substitute SAR shall be equal to the exercise
price of the related option and the substitute SAR shall have substantive terms (e.g., duration)
that are equivalent to the related option. The grant price of any other SAR shall be equal to the
fair market value of Motorola’s common stock on the date of its grant. An SAR may be exercised
upon such terms and conditions and for the term as the Committee in its sole discretion determines;
provided, however, that the term shall not exceed the option term in the case of a substitute SAR
or ten years in the case of any other SAR and the terms and conditions applicable to a substitute
SAR shall be substantially the same as those applicable to the Stock Option which it replaces.
Upon exercise of an SAR, the participant shall be entitled to receive payment from Motorola in an
amount determined by multiplying the excess of the fair market value of a share of common stock on
the date of exercise over the grant price of the SAR by the number of shares with respect to which
the SAR is exercised. The payment may be made in cash or stock, at the discretion of the
Committee, except in the case of a substitute SAR payment may be made only in stock. In no event
shall the Committee cancel any outstanding SAR for the purpose of reissuing the right to the
participant at a lower grant price or reduce the grant price of an outstanding SAR.

 

 

     8. Restricted Stock and Restricted Stock Units. Restricted Stock and Restricted Stock Units
may be awarded or sold to participants under such terms and conditions as shall be established by
the Committee. Restricted Stock provides participants the rights to receive shares after vesting
in accordance with the terms of such grant upon the attainment of certain conditions specified by
the Committee. Restricted Stock Units provide participants the right to receive shares at a
future date after vesting in accordance with the terms of such grant upon the attainment of certain
conditions specified by the Committee. Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee determines, including, without limitation, any of the
following:

          (a) a prohibition against sale, assignment, transfer, pledge, hypothecation or other
encumbrance for a specified period;

          (b) a requirement that the holder forfeit (or in the case of shares or units sold to the
participant, resell to Motorola at cost) such shares or units in the event of termination of
employment during the period of restriction; or

          (c) the attainment of performance goals including without limitation those described in
section 14 hereof.

All restrictions shall expire at such times as the Committee shall specify. In the Committee’s
discretion, participants may be entitled to dividends or dividend equivalents on awards of
Restricted Stock or Restricted Stock Units.

     9. Deferred Stock Units. Deferred Stock Units provide a participant a vested right to receive
shares of common stock in lieu of other compensation at termination of employment or service or at
a specific future designated date. In the Committee’s discretion, Deferred Stock Units may include
the right to be credited with dividend equivalents in accordance with the terms and conditions of
the units.

     10. Performance Shares. The Committee shall designate the participants to whom long-term
performance stock (“Performance Shares”) is to be awarded and determine the number of shares, the
length of the performance period and the other terms and conditions of each such

 

 

award; provided the stated performance period will not be less than 12 months. Each award of
Performance Shares shall entitle the participant to a payment in the form of shares of common stock
upon the attainment of performance goals and other terms and conditions specified by the Committee.

          Notwithstanding satisfaction of any performance goals, the number of shares issued under a
Performance Shares award may be adjusted by the Committee on the basis of such further
consideration as the Committee in its sole discretion shall determine. However, the Committee may
not, in any event, increase the number of shares earned upon satisfaction of any performance goal
by any participant who is a Covered Employee (as defined in section 2 above). The Committee may,
in its discretion, make a cash payment equal to the fair market value of shares of common stock
otherwise required to be issued to a participant pursuant to a Performance Share award.

     11. Performance Cash Awards. The Committee shall designate the participants to whom cash
incentives based upon long-term performance (“Performance Cash Awards”) are to be awarded and
determine the amount of the award and the terms and conditions of each such award; provided the
stated performance period will not be less than 12 months. Each Performance Cash Award shall
entitle the participant to a payment in cash upon the attainment of performance goals and other
terms and conditions specified by the Committee.

          Notwithstanding the satisfaction of any performance goals, the amount to be paid under a
Performance Cash Award may be adjusted by the Committee on the basis of such further consideration
as the Committee in its sole discretion shall determine. However, the Committee may not, in any
event, increase the amount earned under Performance Cash Awards upon satisfaction of any
performance goal by any participant who is a Covered Employee (as defined in section 2 above) and
the maximum amount earned by a Covered Employee in any calendar year may not exceed $10,000,000.
The Committee may, in its discretion, substitute actual shares of common stock for the cash payment
otherwise required to be made to a participant pursuant to a Performance Cash Award.

 

 

     12. Annual Management Incentive Awards. The Committee may designate Motorola executive
officers who are eligible to receive a monetary payment in any calendar year based on a percentage of an incentive pool equal to 5% of Motorola’s “consolidated earnings
before income taxes” (as defined below) for the calendar year. The Committee shall allocate an
incentive pool percentage to each designated executive officer for each calendar year. In no event
may the incentive pool percentage for any one executive officer exceed 30% of the total pool.

          For the purposes hereof, “consolidated earnings before income taxes” shall mean the
consolidated earnings before income taxes of the Company, computed in accordance with generally
accepted accounting principles, but shall exclude the effects of: the following items, if and only
if, such items are separately identified in the Company’s quarterly earnings press releases: (i)
extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains or losses on the
disposition of a business or investment, (iii) changes in tax or accounting regulations or laws, or
(iv) the effect of a merger or acquisition.

          As soon as possible after the determination of the incentive pool for a Plan year, the
Committee shall calculate the executive officer’s allocated portion of the incentive pool based
upon the percentage established at the beginning of the calendar year. The executive officer’s
incentive award then shall be determined by the Committee based on the executive officer’s
allocated portion of the incentive pool subject to adjustment in the sole discretion of the
Committee. In no event may the portion of the incentive pool allocated to an executive officer who
is a Covered Employee (as defined in section 2 above) be increased in any way, including as a
result of the reduction of any other executive officer’s allocated portion.

     13. Other Stock or Cash Awards. In addition to the incentives described in sections 6 through
12 above, the Committee may grant other incentives payable in cash or in common stock under the
Plan as it determines to be in the best interests of Motorola and subject to such other terms and
conditions as it deems appropriate; provided an outright grant of stock will not be made unless it
is offered in exchange for cash compensation that has otherwise already been earned by the
recipient.

     14. Performance Goals. Awards of Restricted Stock, Restricted Stock Units, Performance
Shares, Performance Cash Awards and other incentives under the Plan to a Covered Employee (as
defined in section 2) may be made subject to the attainment of performance goals

 

 

relating to one or more business criteria within the meaning of Section 162(m) of the Code,
including, but not limited to, cash flow; cost; ratio of debt to debt plus equity; profit before
tax; economic profit; earnings before interest and taxes; earnings before interest, taxes,
depreciation and amortization; earnings per share; operating earnings; economic value added; ratio
of operating earnings to capital spending; free cash flow; net profit; net sales; sales growth;
price of Motorola common stock; return on net assets, equity or stockholders’ equity; market share;
or total return to stockholders (“Performance Criteria”). Any Performance Criteria may be used to
measure the performance of the Company as a whole or any business unit of the Company and may be
measured relative to a peer group or index. Performance Criteria shall be calculated in accordance
with the Company’s financial statements (including without limitation the Company’s “consolidated
earnings before income taxes” as defined in section 12), generally accepted accounting principles,
or under an objective methodology established by the Committee prior to the issuance of an award
which is consistently applied. However, the Committee may not in any event increase the amount of
compensation payable to a Covered Employee upon the attainment of a performance goal.

     15. Change in Control. Except as otherwise determined by the Committee at the time of grant
of an award, upon a Change in Control of Motorola, (i) all outstanding Stock Options and SARs shall
become vested and exercisable; (ii) all restrictions on Restricted Stock and Restricted Stock Units
shall lapse; (iii) all performance goals shall be deemed achieved at target levels and all other
terms and conditions met; (iv) all Performance Shares shall be delivered, all Performance Cash
Awards, Deferred Stock Units and Restricted Stock Units shall be paid out as promptly as
practicable; (v) all Annual Management Incentive Awards shall be paid out at target levels (or
earned levels, if greater) and all other terms and conditions deemed met; and (vi) all Other Stock
or Cash Awards shall be delivered or paid; provided, however, that the treatment of outstanding
awards set forth above (referred to herein as “accelerated treatment”) shall not apply if and to
the extent that such awards are assumed by the successor corporation (or parent thereof) or are
replaced with an award that preserves the existing value of the award at the time of the Change in
Control and provides for subsequent payout in accordance with the same vesting schedule applicable
to the original award; provided, however, that with respect to any awards that are assumed or
replaced, such assumed or replaced awards shall

 

 

provide for the accelerated treatment with respect to any participant that is involuntarily
terminated (for a reason other than “Cause”) or quits for “Good Reason” within 24 months of the
Change in Control.

The term “Cause” shall mean, 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 or a Subsidiary.

The term Good Reason shall mean, with respect to any participant, without such
participant’s written consent, (i) the participant is assigned duties materially
inconsistent with his position, duties, responsibilities and status with the Company
or a Subsidiary during the 90-day period immediately preceding a Change in Control,
or the participant’s position, authority, duties or responsibilities are materially
diminished from those in effect during the 90-day period immediately preceding a
Change in Control (whether or not occurring solely as a result of the Company
ceasing to be a publicly traded entity), (ii) the Company reduces the participant’s
annual base salary or target incentive opportunity under the Company’s annual
incentive plan, such target incentive opportunity as in effect during the 90-day
period immediately prior to the Change in Control, or as the same may be increased
from time to time, unless such target incentive opportunity is replaced by a
substantially equivalent substitute opportunity, (iii) the Company or a Subsidiary
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, or (iv) the Company purports to terminate the
Participant’s employment other than pursuant to a notice of termination which
indicates the Participant’s employment has been terminated for “Cause” (as defined
above) and sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Participant’s employment.

 

 

A “Change in Control” shall mean:

     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
Exchange Act, or any successor provision thereto, whether or not Motorola 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 representing 20% or more of the
combined voting power of Motorola’s then outstanding securities (other than Motorola
or any employee benefit plan of Motorola; 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’s securities by either of the
foregoing), (b) there shall be consummated (i) any consolidation or merger of
Motorola in which Motorola 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 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 other than any such
transaction with entities in which the holders of Motorola common stock, directly or
indirectly, have at least a 65% ownership interest, (c) the stockholders of Motorola
approve any plan or proposal for the liquidation or dissolution of Motorola, 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), 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.

 

 

In the event that a payment or delivery of an award following a Change in Control would not be a
permissible distribution event, as defined in Section 409A(a)(2) of the Code or any regulations or
other guidance issued thereunder, then the payment or delivery shall be made on the earlier of (i)
the date of payment or delivery originally provided for such benefit, or (ii) the date of
termination of the participant’s employment or service with the Company or six months after such
termination in the case of a “specified employee” as defined in Section 409A(a)(2)(B)(i).

     16. Adjustment Provisions.

          (a) In the event of any change affecting the number, class, market price or terms of the
shares of common stock by reason of stock dividend, stock split, recapitalization, reorganization,
merger, consolidation, spin-off, disaffiliation of a Subsidiary, combination of shares, exchange of
shares, stock rights offering, or other similar event, or any distribution to the holders of shares
of common stock other than a regular cash dividend, (any of which is referred to herein as an
“equity restructuring”), then the Committee shall make an equitable substitution or adjustment in
the number or class of shares which may be issued under the Plan in the aggregate or to any one
participant in any calendar year and in the number, class, price or terms of shares subject to
outstanding awards granted under the Plan as it deems appropriate. Such substitution or adjustment
shall equalize an award’s intrinsic and fair value before and after the equity restructuring.

          (b) In direct connection with the sale, lease, distribution to stockholders, outsourcing
arrangement or any other type of asset transfer or transfer of any portion of a facility or any
portion of a discrete organizational unit of Motorola or a Subsidiary (a “Divestiture”), the
Committee may authorize the assumption or replacement of affected participants’ awards by the
spun-off facility or organization unit or by the entity that controls the spun-off facility or
organizational unit following disaffiliation.

          (c) In the event of any merger, consolidation or reorganization of Motorola with or into
another corporation which results in the outstanding common stock of Motorola

 

 

being converted into or exchanged for different securities, cash or other property, or any
combination thereof, there shall be substituted, on an equitable basis as determined by the
Committee in its discretion, for each share of common stock then subject to a benefit granted under
the Plan, the number and kind of shares of stock, other securities, cash or other property to which
holders of common stock of Motorola will be entitled pursuant to the transaction.

          (d) Except in connection with a corporate transaction involving the Company (including,
without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the
terms of outstanding awards may not be amended to reduce the exercise price of outstanding Stock
Options or SARs or cancel outstanding Stock Options or SARs in exchange for cash, other awards or
Stock Options or SARs with an exercise price that is less than the exercise price of the original
Stock Options or SARs without stockholder approval.

     17. Substitution and Assumption of Benefits. The Board of Directors or the Committee may
authorize the issuance of benefits under this Plan in connection with the assumption of, or
substitution for, outstanding benefits previously granted to individuals who become employees of
Motorola or any Subsidiary as a result of any merger, consolidation, acquisition of property or
stock, or reorganization, upon such terms and conditions as the Committee may deem appropriate.
Any substitute Awards granted under the Plan shall not count against the share limitations set
forth in section 4 hereof, to the extent permitted by Section 303A.08 of the Corporate Governance
Standards of the New York Stock Exchange.

     18. Nontransferability. Each benefit granted under the Plan shall not be transferable other
than by will or the laws of descent and distribution, and each Stock Option and SAR shall be
exercisable during the participant’s lifetime only by the participant or, in the event of
disability, by the participant’s personal representative. In the event of the death of a
participant, exercise of any benefit or payment with respect to any benefit shall be made only by
or to the beneficiary, executor or administrator of the estate of the deceased participant or the
person or persons to whom the deceased participant’s rights under the benefit shall pass by will or
the laws of descent and distribution. Subject to the approval of the Committee in its sole
discretion, Stock Options may be transferable to members of the immediate family of the participant
and to one or

 

 

more trusts for the benefit of such family members, partnerships in which such family members
are the only partners, or corporations in which such family members are the only stockholders.
“Members of the immediate family” means the participant’s spouse, children, stepchildren,
grandchildren, parents, grandparents, siblings (including half brothers and sisters), and
individuals who are family members by adoption.

     19. Taxes. Motorola shall be entitled to withhold the amount of any tax attributable to any
amounts payable or shares deliverable under the Plan, after giving notice to the person entitled to
receive such payment or delivery, and Motorola may defer making payment or delivery as to any
award, if any such tax is payable, until indemnified to its satisfaction. In connection with the
exercise of a Stock Option or the receipt or vesting of shares hereunder, a participant may pay all
or a portion of any withholding as follows: (a) with the consent of the Committee, by electing to
have Motorola withhold shares of common stock having a fair market value equal to the amount
required to be withheld up to the minimum required statutory withholding amount; or (b) by
delivering irrevocable instructions to a broker to sell shares and to promptly deliver the sales
proceeds to Motorola for amounts up to and in excess of the minimum required statutory withholding
amount. For restricted stock and restricted stock unit awards, no withholding in excess of the
minimum statutory withholding amount will be allowed.

     20. Duration of the Plan. No award shall be made under the Plan more than ten years after the
date of its adoption by the Board of Directors; provided, however, that the terms and conditions
applicable to any option granted on or before such date may thereafter be amended or modified by
mutual agreement between Motorola and the participant, or such other person as may then have an
interest therein.

     21. Amendment and Termination. The Board of Directors or the Committee may amend the Plan
from time to time or terminate the Plan at any time. However, unless expressly provided in an
award or pursuant to the terms of any incentive plan implemented pursuant to this Plan, no such
action shall reduce the amount of any existing award or change the terms and conditions thereof
without the participant’s consent; provided, however, that the Committee may, in its discretion,
substitute SARs which can be settled only in stock for outstanding Stock Options without a
participant’s consent. The Company shall obtain stockholder approval of any Plan amendment to the extent necessary to comply with applicable laws, regulations, or stock
exchange rules.

 

 

     22. Fair Market Value. The fair market value of shares of Motorola’s common stock at any time
shall be determined in such manner as the Committee may deem equitable, or as required by
applicable law or regulation.

     23. Other Provisions.

          (a) The award of any benefit under the Plan may also be subject to other provisions (whether
or not applicable to the benefit awarded to any other participant) as the Committee determines
appropriate, including provisions intended to comply with federal or state securities laws and
stock exchange requirements, understandings or conditions as to the participant’s employment,
requirements or inducements for continued ownership of common stock after exercise or vesting of
benefits, or forfeiture of awards in the event of termination of employment shortly after exercise
or vesting, or breach of noncompetition or confidentiality agreements following termination of
employment, or effective as of January 1, 2008 cancellation of awards or benefits, reimbursement of
compensation paid or reimbursement of gains realized, upon certain restatement of financial
results.

          (b) In the event any benefit under this Plan is granted to an employee who is employed or
providing services outside the United States and who is not compensated from a payroll maintained
in the United States, the Committee may, in its sole discretion, modify the provisions of the Plan
as they pertain to such individuals to comply with applicable law, regulation or accounting rules
consistent with the purposes of the Plan and the Board of Directors or the Committee may, in its
discretion, establish one or more sub-plans to reflect such modified provisions. All sub-plans
adopted by the Committee shall be deemed to be part of the Plan, but each sub-plan shall apply only
to Participants within the affected jurisdiction and the Company shall not be required to provide
copies of any sub-plans to Participants in any jurisdiction which is not the subject of such
sub-plan.

          (c) The Committee, in its sole discretion, may require a participant to have amounts or shares
of common stock that otherwise would be paid or delivered to the participant

 

 

as a result of the exercise or settlement of an award under the Plan credited to a deferred
compensation or stock unit account established for the participant by the Committee on the
Company’s books of account.

          (d) Neither the Plan nor any award shall confer upon a participant any right with respect to
continuing the participant’s employment with the Company; nor shall they interfere in any way with
the participant’s right or the Company’s right to terminate such relationship at any time, with or
without cause, to the extent permitted by applicable laws and any enforceable agreement between the
employee and the Company.

          (e) No fractional Shares shall be issued or delivered pursuant to the Plan or any award, and
the Committee, in its discretion, shall determine whether cash, other securities, or other property
shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or
any rights thereto shall be canceled, terminated, or otherwise eliminated.

          (f) Payments and other benefits received by a participant under an award made pursuant to the
Plan shall not be deemed a part of a participant’s compensation for purposes of determining the
participant’s benefits under any other employee benefit plans or arrangements provided by the
Company or a Subsidiary, notwithstanding any provision of such plan to the contrary, unless the
Committee expressly provides otherwise in writing.

          (g) The Committee may permit participants to defer the receipt of payments of awards pursuant
to such rules, procedures or programs it may establish for purposes of this Plan. Notwithstanding
any provision of the Plan to the contrary, to the extent that awards under the Plan are subject to
the provisions of Section 409A of the Code, then the Plan as applied to those amounts shall be
interpreted and administered so that it is consistent with such Code section.

     24. Governing Law. The Plan and any actions taken in connection herewith shall be governed by
and construed in accordance with the laws of the state of Illinois (without regard to any state’s
conflict of laws principles). Any legal action related to this Plan shall be brought only in a
federal or state court located in Illinois.

 

 

     25. Stockholder Approval. The Plan was adopted by the Board of Directors on February 23,
2006, subject to stockholder approval. The Plan and any benefits granted thereunder shall be null
and void if stockholder approval is not obtained at the next annual meeting of stockholders.EX-10.13

Exhibit 10.13

First Interstate BancSystem, Inc. 2006 Equity Compensation Plan

Restricted Stock Grant Agreement

PARTICIPANT:
 

DATE OF GRANT:
 

This Restricted Stock Grant Agreement (“Agreement”) is made and entered into as of the date
specified above between First Interstate BancSystem, Inc., a Montana corporation (the “Company”),
and the above named Participant, an employee of the Company.

The Company and Participant agree as follows:

	1.	 	Precedence of Plan. This Agreement is subject to and shall be construed in
accordance with the terms and conditions of the First Interstate BancSystem, Inc. 2006 Equity
Compensation Plan (the “Plan”), as now or hereinafter in effect. Any capitalized terms that
are used in this Agreement without being defined and that are defined in the Plan shall have
the meaning specified in the Plan.
	 
	2.	 	Grant of Restricted Stock Benefit. Participant is hereby granted a Restricted Stock
Benefit of                      shares of Common Stock (the “Shares”).
	 
	3.	 	Vesting.

	 	a.	 	Time Vesting. The Restricted Stock Benefit shall vest in three equal portions,
on the first, second and third anniversaries of the date of this Agreement.
	 
	 	b.	 	Death of Participant. Upon the death of the Participant, 100% of the
Restricted Stock Benefit shall vest and become exercisable (unless previously
forfeited).
	 
	 	c.	 	Dissolution or Change in Control. As provided in the Plan, if FIBS is
Dissolved or if FIBS is a party to a merger, reorganization, or consolidation in which
FIBS is not the surviving corporation (a “Change in Control”), 100% of the Restricted
Stock Benefit shall vest and become exercisable (unless previously forfeited).

	4.	 	Unvested Shares Subject to Forfeiture. In the event that Participant terminates
service with the Company for any reason, including disability, voluntary or involuntary
termination of employment, any unvested portion of the Shares shall be forfeited to the
Company as of the date of termination of service.
	 
	5.	 	Stock Register and Certificates. The Shares shall be recorded in the stock register
of the Company in the name of Participant. A stock certificate or certificates representing
the Shares shall be registered in the name of Participant, but such certificates shall remain
in the custody of the Company. Participant shall deposit with the Company a Stock Assignment
Separate from Certificate in the form attached below as Exhibit A, endorsed in blank,
so as to permit retransfer to the Company of all or a portion of the Shares that shall be
forfeited or otherwise not become vested in accordance with the Plan and this Agreement.

			
	 	 	 
	 
	Restricted Stock Grant Agreement 	 	1

 

 

	6.	 	Restrictions. Participant shall have the right to vote the Shares (to the extent of
the voting rights of said Shares, if any), to receive and retain all regular cash dividends
and such other distributions, as the Board of Directors of the Company may, in its discretion,
designate, pay or distribute on such Shares, and to exercise all other rights, powers and
privileges of a holder of Common Stock with respect to such Shares, except as set forth in
this Agreement and the Plan.
	 
	7.	 	Responsibility for Taxes. Participant may complete and file with the Internal
Revenue Service an election in substantially the form attached hereto as Exhibit B
pursuant to Section 83(b) of the Internal Revenue Code (“Code”) to be taxed currently on the
fair market value of the Shares, without regard to the vesting restrictions set forth in this
Agreement. Participant shall be responsible for all taxes associated with the acceptance of
the Restricted Stock Benefit, including any tax liability associated with the representation
of fair market value if the election is made pursuant to Code Section 83(b).
	 
	8.	 	Shareholders’ Agreement. Coincident with the vesting of the Shares and as a
condition precedent to the Company’s obligation to deliver the Shares to Participant,
Participant shall execute and deliver to the Company Participant’s agreement to be bound by
the terms of the current form of applicable Shareholder’s Agreement utilized by the Company.
	 
	9.	 	General Provisions.

	 	a.	 	Withholding. Participant shall reimburse the Company, in cash, by certified or
bank cashier’s check, or any other form of legal payment permitted by the Company for
any federal, state or local taxes required by law to be withheld with respect to the
vesting of the Shares. The Company shall have the right to deduct from any salary or
other payments to be made to Participant any federal, state or local taxes required by
law to be so withheld. The Company’s obligation to deliver a certificate to
Participant representing the Shares upon vesting of the Shares is subject to the
payment by Participant of any applicable federal, state and local withholding tax.
	 
	 	b.	 	Receipt of Plan. By entering into this Agreement, Participant acknowledges (i)
that he or she has received and read a copy of the Plan and (ii) that this Agreement is
subject to and shall be construed in accordance with the terms and conditions of the
Plan, as now or hereinafter in effect.
	 
	 	c.	 	Legends. Certificates representing the Shares prior to vesting shall contain
the following legend or a legend similar thereto:

THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO
THE PROVISIONS OF THE COMPANY’S 2006 EQUITY COMPENSATION PLAN AND AN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER WHEREBY THE TRANSFER
IN ANY MANNER OF SUCH SHARES OF STOCK OR ANY INTEREST THEREIN IS RESTRICTED
AND THE SHARES OF STOCK ARE SUBJECT TO FORFEITURE. A

			
	 	 	 
	 
	Restricted Stock Grant Agreement 	 	2

 

 

COPY OF SAID PLAN AND SAID AGREEMENT MAY BE INSPECTED AT THE PRINCIPAL
OFFICE OF THE COMPANY.

	 	 	 	Certificates may also contain such other legends and transfer restrictions as the
Company shall deem reasonably necessary or desirable, including, without limitation,
legends restricting transfer of the Common Stock until there has been compliance
with federal and state securities laws.
	 
	 	d.	 	Not an Employment Contract. This Agreement is not an employment contract and
nothing in this Agreement shall be deemed to create in any way whatsoever any
obligation on the part of Participant to remain in the Service of the Company, or of
the Company to continue Participant in the Service of the Company.
	 
	 	e.	 	Specific Enforcement. Because of the unique value of the Shares, in addition
to any other remedies that the Company may have upon the breach of the agreements
contained herein, the obligations of Participant shall be specifically enforceable.
	 
	 	f.	 	Costs of Enforcement. In any action at law or in equity to enforce any of the
provisions or rights under this Agreement, the unsuccessful party of such litigation,
as determined by any court of competent jurisdiction in a final judgment or decree,
shall pay the successful party or parties all costs, expenses and reasonable attorneys’
fees incurred therein by such party or parties (including without limitation such
costs, expenses and fees on any appeals), and if such successful party shall recover
judgment in any action or proceeding, such costs, expenses and attorneys’ fees shall be
included as part of the judgment.
	 
	 	g.	 	Further Action. The parties agree to execute such further instruments and to
take such further action as reasonably may be necessary to carry out the intent of this
Agreement.
	 
	 	h.	 	Interpretation. The interpretations and constructions of any provision of and
determinations on any question arising under the Plan or this Agreement shall be made
by the Company, and all such interpretations, constructions and determinations shall be
final and conclusive as to all parties. This Agreement, as issued pursuant to the
Plan, constitutes the entire agreement between the parties pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, representations
and understandings. The invalidity or unenforceability of any provision hereof shall
in no way affect the validity or enforceability of any other provision hereof. This
Agreement may be executed in counterparts, all of which shall be deemed to be one and
the same instrument, and it shall be sufficient for each party to have executed at
least one, but not necessarily the same, counterpart. The headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement in any way.
	 
	 	i.	 	Assignment. This Agreement shall be binding upon the parties and their
respective legal representatives, beneficiaries, successors and assigns.

			
	 	 	 
	 
	Restricted Stock Grant Agreement 	 	3

 

 

	 	j.	 	Notices. All notices or other communications that are required to be given or
may be given to either party pursuant to the terms of this Agreement shall be in
writing and shall be delivered personally or by registered or certified mail, postage
prepaid, to the address of the parties as set forth following the signature of such
party. Notice shall be deemed given on the date of delivery in the case of personal
delivery or on the delivery or refusal date as specified on the return receipt in the
case of registered or certified mail. Either party may change its address for such
communications by giving notice thereof to the other party in conformity with this
section.
	 
	 	k.	 	Governing Law; Venue. This Agreement and the rights and obligations of the
parties hereto shall be governed by and construed in accordance with the laws of the
State of Montana. The parties agree that any action brought by either party to
interpret or enforce any provision of the Plan or this Agreement shall be brought in,
and each party agrees to, and does hereby, submit to the jurisdiction and venue of, the
appropriate state or federal court for the district of Montana.

IN WITNESS WHEREOF, the Company, by a duly authorized officer of the Company, and Participant have
executed this Agreement on __________________, effective as of the date of grant.

	 	 	 	 	 
	FIRST INTERSTATE BANCSYSTEM, INC.

	 	PARTICIPANT
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By: 

	 	 
Signature	 	 
	Title: 

	 	
 
Print Name	 	 
	 
	 	 	 	 
	<Street Address>

	 	Address:  
	 	 
	<City, ST Zip>
	 	 	 	 
	 

	 	 
	 	 

			
	 	 	 
	 
	Restricted Stock Grant Agreement 	 	4

 

 

Exhibit A

Stock Assignment Separate From Certificate

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto First Interstate
BancSystem, Inc., a Montana corporation (the “Company”) ________________________(_________)
shares of Common Stock of the Company, standing in the undersigned’s name on the books of said
corporation represented by Certificate No. _________, and does hereby irrevocably
constitute and appoint the Secretary of the Company as attorney to transfer the said stock on the
books of the said corporation with full power of substitution in the premises.

	 	 	 	 	 
	 
	 	 	 	 
	Dated: 

	 	 
Signature
	 	 
	 
	 	 	 	 
	 

	 	 
Print Name	 	 

 
Stock Assignment Separate from Certificate

 

 

Exhibit B

Election to Include Value of Restricted Property in Gross Income

Pursuant to Section 83(b) of the Internal Revenue Code

This election form is to be filed with the IRS Service Center with which the Participant files his
or her return. It should be mailed “Certified Mail” and postmarked by the post office to establish
proof of timely filing. Timely filing requires such mailing to occur within thirty (30) days
following the date of the grant. One copy must be provided to the Company and one copy must be
filed with the Participant’s tax return for the taxable year of exercise. Participant may also
wish to determine the relevant state tax procedure for the state in which Participant resides.

Pursuant to the Restricted Stock Grant Agreement entered into by and between the undersigned
Participant and First Interstate BancSystem, Inc., a Montana corporation (the “Company”), as of __________,
20___ (the “Award Agreement”), Participant has acquired _________ shares of Common Stock of the Company (the
“Shares”) which are subject to a substantial risk of forfeiture under the Award Agreement.
Participant desires to make an election to have the Shares taxed under the provisions of Section
83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time Participant
acquired the Shares.

Therefore, pursuant to Code Section 83(b) and Treasury Regulation Section 1.83-2, Participant
hereby makes an election to report as taxable income in _________ [YEAR] the Shares’ fair market value on
____________ [DATE], the date on which Participant acquired the Shares (or any subsequent date that may be
determined to be the date of transfer for purposes of the Code).

The following information is supplied in accordance with Treasury Regulation Section 1.83-2(e):

	1.	 	The name, address and social security number of Participant:  

 

 

	2.	 	A description of the property with respect to which the election is being made:
	 
	 	 	Shares of Common Stock of First Interstate BancSystem, Inc., a Montana corporation.
	 
	3.	 	The date on which the property was transferred:                     .
	 
	 	 	The taxable year for which such election is made: Calendar Year                     .
	 
	4.	 	The restrictions to which the property is subject:
	 
	 	 	The Shares are subject to forfeiture to the Company for no consideration should
Participant’s employment with the Company terminate or should other specified events occur.
Shares vest only upon the passage of time. Upon any transfer by Participant, the Shares
will be subject to the same restrictions.

 
Section 83(b) Election

 

 

	5.	 	The fair market value on

_______________, 20______, of the property with respect to which the election is being
made, determined without regard to any lapse restrictions: $____________.
	 
	6.	 	The amount paid for such property: $________________________.
	 
	7.	 	A copy of this election has been furnished to the Secretary of the Company pursuant to Treasury
Regulations Section 1.83-2(e)(7).

	 	 	 	 	 
	 

	 	

 
Signature
	 	 
	 

	 	Print Name: 
	 	 
	 
	 	 	 	 
	 

	 	 
Date	 	 

 
Section 83(b) Election

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