Document:

exv10w40

 

Exhibit 10.40

MOTOROLA, INC.

AWARD DOCUMENT

For the

Motorola Omnibus Incentive Plan of 2006

Terms and Conditions Related to Employee Nonqualified Stock Options

	 	 	 	 	 	 	 
	Recipient:

	 	Edward J. Zander
	 	Date of Expiration:
	 	May 8, 2017
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Commerce ID#:

	 	 	 	Number of Options:
	 	800,000
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date of Grant:

	 	 May 8, 2007
	 	Exercise Price:
	 	$17.70
	 

	 	 
	 	 	 	 

Motorola, Inc. (“Motorola” or the “Company”) is pleased to grant you options to purchase shares of
Motorola’s common stock under the Motorola Omnibus Incentive Plan of 2006 (the “Plan”). The number
of options (“Options”) awarded to you and the Exercise Price per Option, which is the Fair Market
Value on the Date of Grant, are stated above. Each Option entitles you to purchase one share of
Motorola’s common stock on the terms described below and in the Plan.

Vesting and Exercisability

You cannot exercise the Options until they have vested.

Regular Vesting — If, within the two years following the Date of Grant (the “Performance Period”),
the Fair Market Value (as defined below) of Motorola common stock meets or exceeds the dollar
amount set forth below on at least ten Trading Days (as defined below) within any thirty
consecutive Trading Days, then the Options will vest in accordance with the following schedule:

	 	 	 	 	 
	Dollar Amount

	 	Options Vested

	$22.00

	 	 	300,000	 
	$25.00

	 	 	500,000	 

For purposes of this agreement, “Trading Day” means any date on which the New York Stock Exchange
is open for trading. To the extent some or all of the Options do not vest prior to the end of the
Performance Period, then any such Options shall immediately expire at the end of the Performance
Period.

Exercisability — You may exercise Options at any time after they vest and before they expire as
described below.

Expiration

All Options expire on the earliest of (1) the Date of Expiration as stated above, (2) any of the
Special Expiration Dates described below, or (3) with respect to any unvested Options, at the end
of the Performance Period. Once an Option expires, you no longer have the right to exercise it.

Special Expiration Dates

If any of the following events occur during the Performance Period, your Options may expire sooner
than the Date of Expiration, as set forth below:

Retirement — If your employment or service with Motorola or a Subsidiary is ended because of your
Retirement, all of your unvested Options will automatically expire and all of your vested Options
will then expire on the earlier of eighteen months following the ending of your employment or
service because of your Retirement or the Date of Expiration stated above. Retirement means (only
for purposes of this Option) your retirement from Motorola or a Subsidiary as follows:

	 	•	 	Retiring at or after age 65, without regard to years of service.

 

 

Disability — If your employment or service with Motorola or a Subsidiary is terminated because of
your Total and Permanent Disability (as defined below), all of your unvested Options will
automatically expire upon termination and all of your vested Options will then expire on the
earlier of the first anniversary of your termination of employment or service because of your Total
and Permanent Disability or the Date of Expiration stated above. Until that time, the vested
Options will be exercisable by you or your guardian or legal representative.

Death — If your employment or service with Motorola or a Subsidiary is terminated because of your
death, all of your unvested Options will automatically expire upon your death and all of your
vested Options will then expire on the earlier of the first anniversary of your death or the Date
of Expiration stated above. Until that time, with written proof of death and inheritance, the
vested Options will be exercisable by your legal representative, legatees or distributees.

Change In Control —  If a “Change in Control” of the Company occurs all of your unvested
Options will automatically expire upon the Change in Control and all of your vested Options will be
exercisable until the Date of Expiration set forth above.

Change in Employment in Connection with a Divestiture — If you accept employment with another
company in direct connection with the sale, lease, 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, or if you remain employed by a Subsidiary that is sold or whose
shares are distributed to the Motorola stockholders in a spin-off or similar transaction (a
“Divestiture”), all of your unvested Options will automatically expire upon termination of your
employment with Motorola in direct connection with the Divestiture and your vested Options will
expire 90 days after such Divestiture or such shorter period remaining until expiration as set
forth above.

Termination of Employment or Service Entitling you to Severance Benefits Under Section 5(a) of your
Employment Agreement — If your employment or service with Motorola or a Subsidiary is terminated
in a manner entitling you to severance benefits under

Section 5(a)(i) of your Employment Agreement
with Motorola, dated as of December 15, 2003 (the “Employment Agreement”), all of your unvested
Options will automatically expire upon termination and your vested Options will expire on the
earlier of eighteen months after your termination of employment or service for a reason referenced
in this paragraph or the Date of Expiration stated above.

Termination of Employment or Service Because of Serious Misconduct — If Motorola or a Subsidiary
terminates your employment or service because of Serious Misconduct (as defined below), all of your
Options (vested and unvested) expire upon your termination.

Termination of Employment or Service by Motorola as a Result of a Notice of Non-Renewal — If
Motorola terminates your employment or service as a result of a Notice of Non-Renewal (as defined
in your Employment Agreement), all of your unvested Options will automatically expire upon
termination and your vested Options will expire twelve months after your termination of employment
or such shorter period remaining until expiration as set forth above.

Termination of Employment or Service by you other than for Good Reason —  If you voluntarily
terminate employment without Good Reason including by a Notice of Non-Renewal (as such terms are
defined in your Employment Agreement), all of your unvested Options will automatically expire upon
termination of your employment and all of your vested but not yet exercised Options will expire on
the earlier of (i) the date ninety (90) days after the date of termination of your employment or
services or (ii) the Date of Expiration stated above.

Leave of Absence — If you take a leave of absence from Motorola or a
Subsidiary that your employer has approved in writing in accordance with your employer’s Leave of
Absence Policy and which does not constitute a termination of employment as determined by Motorola
or a Subsidiary the following will apply:

Vesting
of Options — Options will continue to vest during the first
90 days of your leave period in accordance
with the vesting schedule set forth above. If the leave exceeds 90 days, no additional options
shall vest after the 90th day. Upon your return to substantially full-time

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employment or service, you shall be eligible to vest in any remaining unvested options (a) if you
are employed for at least sixty or more consecutive days, and (b) to the extent the Regular Vesting
provisions set forth above are satisfied.

Exercising Options — You may exercise Options that are vested or that vest during the leave of
absence.

Effect of Termination of Employment or Service — If your employment or service is terminated
during the leave of absence, the treatment of your Options will be determined as described under
“Special Expiration Dates” above.

Other Terms

Method of Exercising — You must follow the procedures for exercising options established by
Motorola from time to time. At the time of exercise, you must pay the Exercise Price for all of
the Options being exercised and any taxes that are required to be withheld by Motorola or a
Subsidiary in connection with the exercise. Options may not be exercised for less than 50 shares
unless the number of shares represented by the Option is less than 50 shares, in which case the
Option must be exercised for the remaining amount.

Transferability — Unless the Committee provides, Options are not transferable other than by will
or the laws of descent and distribution.

Tax Withholding — Motorola or a Subsidiary is entitled to withhold an amount equal to the required
minimum statutory withholding taxes for the respective tax jurisdictions attributable to any share
of common stock deliverable in connection with the exercise of the Options. You may satisfy any
minimum withholding obligation and any additional withholding, if desired, by electing to have the
plan administrator retain Option shares having a Fair Market Value on the date of exercise equal to
the amount to be withheld.

Definition of Terms

If a term is used but not defined, it has the meaning given such term in the Plan.

“Fair Market Value” is the closing price for a share of Motorola common stock on any applicable
date. The official source for the closing price is the New

York Stock Exchange Composite
Transaction as reported in the Wall Street Journal, Midwest edition.

“Serious Misconduct” means any misconduct identified as a ground for termination in the Motorola
Code of Business Conduct, or the human resources policies, or other written policies or procedures,
including the conduct described as “Cause” under your Employment Agreement.

“Subsidiary” means an entity of which Motorola owns directly or indirectly at least 50% and that
Motorola consolidates for financial reporting purposes.

“Total and Permanent Disability” means “Disability” as defined in your Employment Agreement.

Consent to Transfer Personal Data

By accepting this award, you voluntarily acknowledge and consent to the collection, use, processing
and transfer of personal data as described in this paragraph. You are not obliged to consent to
such collection, use, processing and transfer of personal data. However, failure to provide the
consent may affect your ability to participate in the Plan. Motorola, its Subsidiaries and your
employer hold certain personal information about you, that may include your name, home address and
telephone number, date of birth, social security number or other employee identification number,
salary, salary grade, hire date, nationality, job title, any shares of stock held in Motorola, or
details of all options or any other entitlement to shares of stock awarded, canceled, purchased,
vested, or unvested, for the purpose of managing and administering the Plan (“Data”). Motorola
and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose of
implementation, administration and management of your participation in the Plan, and Motorola
and/or any of its Subsidiaries may each further transfer Data to any third parties assisting
Motorola in the implementation, administration and management of the Plan. These recipients may be
located throughout the world, including the United States. You authorize them to receive, possess,
use, retain and transfer the Data, in electronic or other form, for the purposes of implementing,
administering and managing your participation in the Plan, including any requisite transfer of such
Data as may be required for the administration of the Plan and/or the

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subsequent holding of shares of stock on your behalf to a broker or other third party with whom you
may elect to deposit any shares of stock acquired pursuant to the Plan. You may, at any time,
review Data, require any necessary amendments to it or withdraw the consents herein in writing by
contacting Motorola; however, withdrawing your consent may affect your ability to participate in
the Plan.

Acknowledgement of Discretionary Nature of the Plan; No Vested Rights

You acknowledge and agree that the Plan is discretionary in nature and limited in duration, and may
be amended, cancelled, or terminated by Motorola or a Subsidiary, in its sole discretion, at any
time. The grant of awards under the Plan is a one-time benefit and does not create any contractual
or other right to receive an award in the future or to future employment. Nor shall this or any
such grant interfere with your right or the Company’s right to terminate such employment
relationship at any time, with or without cause, to the extent permitted by applicable laws and any
enforceable agreement between you and the Company. Future grants, if any, will be at the sole
discretion of Motorola, including, but not limited to, the timing of any grant, the amount of the
award, vesting provisions, and the exercise price.

No Relation to Other Benefits/Termination Indemnities

Your acceptance of this award and participation under the Plan is voluntary. The value of your
stock option awarded herein is an extraordinary item of compensation outside the scope of your
employment contract, if any. As such, the stock option is not part

of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service
payments, bonuses, long-service awards, pension, or retirement benefits or similar payments,
notwithstanding any provision of any compensation, insurance agreement or benefit plan to the
contrary.

Substitute Stock Appreciation Right

Motorola reserves the right to substitute a Stock Appreciation Right for your Option in the event
certain changes are made in the accounting treatment of stock options. Any substitute Stock
Appreciation Right shall be applicable to the same number of shares as your Option and shall have
the same Date of Expiration, Exercise Price, and other terms and conditions. Any substitute Stock
Appreciation Right may be settled only in Motorola common stock.

Acceptance of Terms and Conditions

By accepting the Options, you agree to be bound by these terms and conditions, the Plan and any and
all rules and regulations established by Motorola in connection with awards issued under the Plan
and any additional covenants or promises Motorola may require as a condition of the grant.

Other Information about Your Options and the Plan

You can find other information about options and the Plan on the Motorola website
http://myhr.mot.com/pay_finances/
awards_incentives/stock_options/plan_documents.jsp If you do not
have access to the website, please contact Motorola Global Rewards, 1303 E. Algonquin Road,
Schaumburg, IL 60196 USA; GBLRW01@Motorola.com; 847-576-7885; for an order form to request Plan
documents.

-4-exv4w1

 

EXHIBIT 4.1

CERTIFICATE OF MEMBERSHIP UNITS

	 	 	 	 	 
	 	 	 	 	Membership
	Number	 	 	 	Units
	 
	 	 	 	 

	 	 	 	 	 
	 
	 	MINNERGY,
LLC

A Limited Liability Company Organized Under the Laws of the State of

Minnesota
	 	 

     THIS CERTIFIES THAT                                                              is/are the
owner(s) of
                                         UNITS (                      ) of the Membership Units of MINNERGY,
LLC, a Minnesota limited liability company. Changes in the actual Membership Units held by the
Members are reflected in the Certificate of Registration of the Company.

The Membership Units represented by this Certificate may not be transferred or assigned except
in compliance with the Member Control Agreement of the Company, a copy of which is available at the
principal office of the Company.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed by its duly authorized
President and Secretary as of this                      day of                                         , 20    .

	 	 	 
	 	 	 
	 

Ron Scherbring, President
	 	 

Kent Gernander, Secretary

 

 

FOR VALUE RECEIVED,                      hereby sell, assign, and transfer unto
                                        ,                      Units represented by the within Certificate, and do
hereby irrevocably constitute and appoint                                          as my Attorney to transfer
such Units on the books of the within named Company with full power of substitution in the
premises.

     Dated:                                         ,                     .

In the Presence of

                                                            

(Witness)

                                                            

                                                            

THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED, AND NO ASSIGNEE,
VENDEE, TRANSFEREE OR ENDORSEE THEREOF WILL BE RECOGNIZED AS HAVING ACQUIRED ANY
SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE, TRANSFER,
HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN STRICT ACCORDANCE
WITH, APPLICABLE FEDERAL AND STATE LAW AND THE TERMS AND CONDITIONS SET FORTH IN
THE MEMBER CONTROL AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO TIME.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, OFFERED FOR SALE OR
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE
STATE SECURITIES LAWS.

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