Document:

exv10w45

 

Exhibit 10.45

Description of Certain Compensatory Arrangements between 

Motorola, Inc. and Paul J. Liska

     Motorola, Inc. (the “Company”) entered into compensatory arrangements with Paul J. Liska in
February 2008 in connection with his appointment as Executive Vice President and Chief Financial
Officer of the Company. Certain of his compensatory arrangements, which provide for payments to be
made in the future, are described below:

	 	•	 	A sign-on bonus of $400,000, $50,000 of which will be paid on or before March 31, 2008
and the remainder of which will be paid on December 31, 2008. If Mr. Liska leaves
Motorola on his own initiative or is terminated for Cause * prior to completing one year
of service, he will be required to repay the gross amount of any previously paid
installment of the sign-on bonus within sixty (60) days after his separation from
employment.
	 
	 	•	 	A guaranteed payout for Mr. Liska’s award for calendar year 2008 under a cash-based
pay-for-performance annual incentive plan to be established by Motorola of not less than
50% of Mr. Liska’s target award. Mr. Liska’s award will be 95% of his 2008 base salary.
	 
	 	•	 	The establishment of Mr. Liska’s target award for
performance cycles under long range incentive plans to be established
by the Company with a target payout at 150% of his base pay in effect
at the commencement of the performance cycle.
	 
	 	•	 	If Mr. Liska is involuntarily terminated for a reason other than Cause** on or before
the second anniversary of his employment commencement date, Motorola agrees to pay him,
in exchange for a general release of claims against Motorola and a reaffirmation of all
restrictive covenants previously agreed to with Motorola, a severance allowance in the
amount of twelve (12) months base salary, less applicable state and federal payroll
deductions, at the salary rate in effect on the termination date and twelve (12) months
annual incentive bonus at his target incentive rate, less applicable state and federal
payroll deductions, and also based on the salary rate in effect on the termination date.
If Mr. Liska is involuntarily terminated for a reason other than Cause** after the second
anniversary of his employment commencement date, Motorola agrees to pay him, in exchange
for a general release of claims against Motorola and a reaffirmation of all restrictive
covenants previously agreed to with Motorola, a severance allowance in the amount of
eighteen (18) months base salary, less applicable state and federal payroll deductions, at
the salary rate in effect on the termination date and eighteen (18) months annual
incentive bonus at his target incentive rate, less applicable state and federal payroll
deductions and also based on the salary rate in effect on the termination date.

 

			
	*	 	For the purpose of the sign-on bonus, Cause is as defined in the 2006 Omnibus Incentive Plan.
	 
	**	 	For the purpose of entitlement to severance payments described above, Cause means (i) Mr.
Liska’s willful and continued failure to substantially perform his duties, other than
any such failure resulting from incapacity due to physical or mental illness, which failure

 

 

			
	 	 	has continued for a period of at least 30 days; or (ii) his willful engagement in (A) any malfeasance,
dishonesty or fraud that is intended to or does result in his substantial personal enrichment or a
material detrimental effect on the Company’s reputation or business or (B) gross misconduct; (iii)
his indictment for, or plea of guilty or nolo contendere to (A) a felony in the United States or
(B) to a felony outside the United States, which, regardless of where such felony occurs, the
independent directors of the Board of Directors of the Company reasonably believe has had or will
have a detrimental effect on the Company’s reputation or business or his reputation; or (iv) his
breach of one or more restrictive covenants in any written agreement between him and Motorola.exv10w47

 

Exhibit 10.47

Chairman/CEO Retirement Term Sheet

	1.	 	Retirement.

	 	•	 	Edward J. Zander (“Executive”) will cease to be Chief Executive Officer (“CEO”) of
Motorola, Inc. (the “Company”) as of the close of business on December 31, 2007 and
will no longer be an officer of the Company as of such date, but will serve as
non-executive Chairman of the Board of Directors of the Company (the “Board”) until the
2008 annual meeting of stockholders.
	 
	 	•	 	Executive will not be nominated or stand for re-election to the Board at the 2008
annual meeting of stockholders.
	 
	 	•	 	Executive will retire as an employee of the Company and all of its subsidiaries and
affiliates effective as of the close of business on January 5, 2009 (the “Retirement
Date”).
	 
	 	•	 	Prior to the Company’s 2008 annual meeting of stockholders, Executive’s right to
serve on corporate, civic or charitable boards or committees shall be subject to the
last sentence of Section 3(a)(ii) of his Employment Agreement (the “Employment
Agreement”) dated as of the 15th day of December 2003, as amended through
May 11, 2007. Following the Company’s 2008 annual meeting of stockholders, subject to
Section 7 of the Employment Agreement, Executive may serve on corporate, civic or
charitable boards or committees. So long as Executive remains an employee of the
Company, Executive may not otherwise perform services (including consulting services)
for any other business.

	2.	 	Payments to Executive.

	 	•	 	Executive will continue as a non-officer employee with the title “Strategic Advisor
to the CEO” through the Retirement Date. During 2008, Executive will assist the Board
and the new CEO with transition matters as may be mutually agreed upon by the new CEO
and the Executive.
	 
	 	•	 	Until the Retirement Date:

	 	•	 	Executive will continue to receive his regular base salary ($1.5 million) and
employee benefits and fringe benefits pursuant to the Employment Agreement
(except that he will no longer have personal use of corporate aircraft). If
corporate aircraft are available, Executive may use corporate aircraft for
travel relating to Company business.
	 
	 	•	 	Executive will not, however, be eligible to participate in the annual bonus,
mid-range incentive or long-term incentive described in Section 3(b) of the
Employment Agreement during 2008. (For the avoidance of doubt, Executive will
be eligible to receive an annual bonus, a mid-range incentive payout and a
long-range incentive payout for services through December 31, 2007.)
	 
	 	•	 	Executive will be provided with an office and administrative assistance
commensurate with his role as a retired CEO of the Company. Such office shall
be
located in a non-Company facility at a location near Executive’s home in
California.

 

 

	 	•	 	Subject to the third bullet under item 3 (“Effect on Employment Agreement”)
below, the outstanding equity awards listed in Exhibit 1 will vest on the dates
shown therein. Stock options will remain exercisable in accordance with the
terms of the applicable option award document as shown in Exhibit 1. The equity
awards listed in Exhibit 2 will not vest and will be forfeited.

	 	•	 	In connection with the Executive’s retirement:

	 	•	 	The Company will reimburse Executive for the expenses incurred by Executive
relocating his residence from his apartment in Illinois to his existing house in
California, excluding expenses associated with selling the apartment in
Illinois.
	 
	 	•	 	For purposes of the Company’s supplemental retirement plan, upon his
retirement, Executive will be credited with a total of 5 years of credited
service, and his final average compensation will be determined as of December
31, 2007.
	 
	 	•	 	All deferred compensation amounts and deferred restricted stock units will be
paid to Executive at such times and in such manner as are consistent with the
existing plans and the requirements of Section 409A of the Internal Revenue Code
of 1986, as amended, or the terms of any grandfathered deferred compensation
plans, as applicable. See Exhibit 3.

	3.	 	Effect on Employment Agreement.

	 	•	 	Nothing reflected in this Chairman/CEO Retirement Term Sheet will constitute a
termination of Executive’s employment by the Company without Cause or give Executive
the right to terminate his employment for Good Reason (as those terms are used in the
Employment Agreement).
	 
	 	•	 	The Executive will perform the agreements set forth in Section 7 of the Employment
Agreement and will be subject to the provisions of any Stock Option Consideration
Agreement or Restricted Stock Unit Award Agreement between the Company and Executive.
For purposes of Section 7 of the Employment Agreement, the “Date of Termination” shall
mean the Retirement Date.
	 
	 	•	 	If Executive terminates employment with the Company prior to January 5, 2009, (1)
such earlier date shall be the “Retirement Date” for purposes of this Chairman/CEO
Retirement Term Sheet, (2) Executive will cease to receive his regular base salary and
employee benefits and fringe benefits and (3) any outstanding equity awards that have
not vested as of the Retirement Date will be forfeited (including equity awards listed
on Exhibit 1).

The Board of Directors approved this Chairman/CEO Retirement Term Sheet on November 29, 2007.

Executive acknowledges and agrees to the terms of this Chairman/CEO Retirement Term Sheet.

	 	 	 
	EDWARD J. ZANDER
	 	 
	 
	 	 
	/s/ Edward J. Zander

	 	Date: November 29, 2007
	 

	 	 

2

 

Exhibit 1

Equity Vesting

Stock Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Post-Retirement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Date Exercise
	Grant Date	 	Vest Date	 	Shares	 	Strike Price	 	Period
	01/05/04
	 	 	01/05/08	 	 	 	377,190	 	 	$	12.97	 	 	   None
	05/04/04
	 	 	05/04/08	 	 	 	265,430	 	 	$	16.30	 	 	   None
	02/14/05
	 	 	02/14/08	 	 	 	75,000	 	 	$	15.91	 	 	90 days
	05/03/05
	 	 	05/03/08	 	 	 	187,500	 	 	$	15.47	 	 	90 days
	05/03/06
	 	 	05/03/08	 	 	 	200,000	 	 	$	21.25	 	 	90 days

In addition, options for 300,000 shares ($17.70 strike price) would vest if the Company stock price
trades at $22 for ten trading days within any thirty consecutive trading days prior to the
Retirement Date and options for 500,000 shares ($17.70 strike price) would vest if the Company
stock price trades at $25 for ten trading days within any thirty consecutive trading days prior to
the Retirement Date.

Restricted Stock Units

	 	 	 	 	 	 	 	 	 
	Grant Date	 	Vest Date	 	Shares
	01/05/04
	 	 	01/05/08	 	 	 	200,000	 
	05/04/04
	 	 	05/04/08	 	 	 	43,908	 
	05/03/06
	 	 	11/03/08	 	 	 	50,000	 

 

 

Exhibit 2

Equity That Will Not Vest

Stock Options

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Scheduled	 	 	 	 
	Grant Date	 	Vest Date	 	Shares	 	Strike Price
	02/14/05
	 	 	02/14/09	 	 	 	75,000	 	 	$	15.91	 
	05/03/05
	 	 	05/03/09	 	 	 	187,500	 	 	$	15.47	 
	05/03/06
	 	 	05/03/09	 	 	 	200,000	 	 	$	21.25	 
	05/03/06
	 	 	05/03/10	 	 	 	200,000	 	 	$	21.25	 

Restricted Stock Units

	 	 	 	 	 	 	 	 	 
	Grant Date	 	Scheduled Vest Date	 	Shares
	05/03/05
	 	 	05/03/10	 	 	 	75,000	 
	05/03/06
	 	 	05/03/11	 	 	 	50,000	 

 

 

Exhibit 3

Deferred Cash Compensation

	 	 	 	 	 
	Form	 	Payment Timing
	2004 Annual Bonus
	 	January 1, 2008

Deferred RSU Awards

	 	 	 	 	 
	Form	 	Payment Timing
	2004 RSU Awards
	 	January 1, 2008
	(274,740 RSUs)

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