Document:

exv10w2

 

Exhibit 10.2

STOCK OPTION CONSIDERATION AGREEMENT

GRANT DATE: February 14, 2005

The following Agreement is established to protect the trade secrets, intellectual property,
confidential information, customer relationships and goodwill of Motorola, Inc. and each of its
subsidiaries (the “Company”) both as defined in the Motorola Omnibus Incentive Plan of 2000, as
amended (the “2000 Plan”).

As sole consideration for the stock option(s) granted to me on the date shown above under the terms
of the 2000 Plan, the Amended and Restated Motorola Incentive Plan of 1998 (the “1998 Plan”), the
Motorola Compensation/Acquisition Plan of 2000 (the “C/A Plan”), the Motorola Omnibus Incentive
Plan of 2002 (the “2002 Plan”) or the Motorola Omnibus Incentive Plan of 2003 (the “2003 Plan”), as
the case may be (‘the Covered Options”), and as a person with a salary grade of EXB and/or as a
Motorola appointed vice president or elected officer, I agree to the following:

(1) I agree that during the course of my employment and thereafter, I will not use or disclose,
except on behalf of the Company and pursuant to its directions during the course of my employment,
any Company Confidential Information. Confidential Information means information concerning the
Company and its business that is not generally known outside the Company. Confidential Information
includes: (i) trade secrets; (ii) intellectual property; (iii) the Company’s methods of operation
and Company processes; (iv) information regarding the Company’s present and/or future products,
developments, processes and systems, including invention disclosures and patent applications; (v)
information on customers or potential customers, including customer’s names, sales records, prices,
and other terms of sales and Company cost information; (vi) Company personnel data; (vii) Company
business plans, marketing plans, financial data and projections; and (viii) information received in
confidence by the Company from third parties. Information regarding products or technological
innovations in development, in test marketing or being marketed or promoted in a discrete
geographic region, which information the Company or one of its affiliates is considering for
broader use, shall not be deemed generally known until such broader use is actually commercially
implemented.

(2) I acknowledge and agree that for a period of two years following my termination of employment,
I will not recruit, solicit or induce, or cause, allow, permit or aid others to recruit, solicit or
induce, or to communicate in support of those activities, any employee of the Company to terminate
his/her employment with the Company and/or to seek employment with my new or prospective employer,
or any other company.

(3) I understand that by accepting the Covered Options, (i) if I violate the terms of paragraphs 1
or 2 of this Agreement, or (ii) if during a period of two years following the termination of my
employment for any reason I engage in activities which are the same as or similar to activities in
which I engaged at any time during the two years preceding termination of my employment, for any
person, company or entity in connection with products, services or technological developments
(existing or planned) that are the same as, similar to, or competitive with, any products,
services or technological developments (existing or planned) on which I worked at any time during
the two years preceding the termination of my employment, then:

	 	(a)  	all of my vested and unvested Covered Options will terminate and no longer be
exercisable; and
	 
	 	(b)  	for all Covered Options exercised within two years prior to the termination of
my employment or anytime after termination of my employment, I will immediately pay to
the Company the difference between the option price and the market price of the
Company’s common stock on the date of exercise (the “spread”).

-1-

 

Paragraph 3(ii) applies in the countries in or for which I have performed work at any time during
the two years preceding termination of my employment.

(4) The requirements of this agreement can be waived or modified only upon the prior written
consent of Motorola, Inc. I acknowledge that the promises in this Agreement, not any employment of
or services performed by me in the course and scope of that employment, are the sole consideration
for the Covered Options.

(5) I agree that upon termination of employment with the Company and for a period of two years
thereafter, I will immediately inform the Company of (i) the identity of my new employer (or the
nature of any start-up business, consulting arrangements or self-employment), (ii) my new title,
and (iii) my job duties and responsibilities. I hereby authorize the Company to provide a copy of
this Agreement to my new employer. I further agree to provide information to the Company as may
from time to time be requested in order to determine my compliance with the terms of this
Agreement.

(6) I acknowledge that the harm caused to the Company by the breach or anticipated breach of
paragraphs 1 and/or 2 of this Agreement may be irreparable and I agree the Company may have
injunctive relief against me in addition to and cumulative with any other rights and remedies the
Company may have pursuant to this Agreement, any other agreements between me and the Company for
the protection of the Company’s Confidential Information, or law, including the recovery of
liquidated damages. I agree that any interim or final equitable relief entered by a court of
competent jurisdiction will, at the request of the Company, be entered on consent and enforced by
any court having jurisdiction over me. 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.

(7) If any provisions contained in this Agreement shall be determined by a court of competent
jurisdiction to be overly broad as to scope of activity, duration or territory, I consent to any
request by the Company to such court to interpret such provision by limiting or reducing it to be
enforceable to the extent compatible with then applicable law. If any one or more of the terms,
provisions, covenants or restrictions of this Agreement are determined by a court of competent
jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and effect and shall in no
way be affected, impaired or invalidated. However, and without regard to the foregoing, if
paragraphs 1, 2 and 3 herein, or either of them, is not enforceable or otherwise invalid, the
consideration I am providing Motorola for the Covered Options would fail. I agree that all of my
Covered Options will terminate and that, I will pay Motorola the spread on any Covered Options
exercised within two years prior to the termination of my employment or anytime after termination
of my employment.

(8) I accept the terms of this Agreement and the above option(s) to purchase shares of the Common
Stock of the Company, subject to the terms of this Agreement, the 1998 Plan, the 2000 Plan, the C/A
Plan, the 2002 Plan and/or the 2003 Plan, as the case may be, and any Award Document issued
pursuant to one of those Plans. I am familiar with the 1998 Plan, the 2000 Plan, the C/A Plan, the
2002 Plan and the 2003 Plan and agree to be bound by each to the extent applicable, the actions of
the Compensation Committee and the actions of the Company’s Board of Directors.

(9) I agree that this Agreement and the 1998 Plan, the 2000 Plan, the C/A Plan, the 2002 Plan
and/or the 2003 Plan, as the case may be, and any Award Document issued pursuant to one of those
Plans, together constitute an agreement between the Company and me. I further agree that this
Agreement is governed by the laws of Illinois, without giving effect to principles of Conflicts of
Laws, and any legal action related to this Agreement shall be brought in any federal or state court
located in Illinois, USA.

I accept the jurisdiction of these courts and consent to service of process from said courts solely
for legal actions related to this Agreement and stock option(s) offer.

	 	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	Printed Name
	 
	 	 	 	 
	

	 	 	 	 

-2-

 

IN ORDER FOR THE ABOVE-REFERENCED OPTION(S) TO BE AWARDED, THIS AGREEMENT, SIGNED AND DATED, MUST
BE RETURNED TO THE SECRETARY OF THE COMPENSATION COMMITTEE IN THE ENCLOSED ENVELOPE NO LATER THAN
JUNE 27, 2004.

-3-exv10w3

 

Exhibit 10.3

2005 Motorola Incentive Plan

Overview

The 2005 Motorola Incentive Plan (the “Plan”) has been established to retain employees through
competitive rewards, attract premier talent, align individual efforts with business goals, and
reward employees for strong business performance. The Plan is based on successive calendar-year
performance periods commencing 1 January 2005 (each a “Plan Year”). The Plan is being implemented
pursuant to the terms and conditions of the Omnibus Incentive Plan of 2003 (“Omnibus Plan”).

Eligibility

To be eligible to participate in this Plan, an employee must be:

	•  	A full-time or part-time Motorola employee;
	 
	•  	In a Participating Organization and on the payroll of a Participating Country;
	 
	•  	Not a participant in any other annual group incentive or bonus plan (e.g., sales commission plans, etc.); and
	 
	•  	One of the following must also apply:

	 	•  	Active on a Motorola payroll as of the end of the Plan Year (countries may establish
more restrictive eligibility requirements for terminating employees);
	 
	 	•  	On an approved leave of absence as of the end of the Plan Year, which leave carries
a right to return to work at the end of the leave (“Leave of Absence”);
	 
	 	•  	Retired from Motorola during the Plan Year while actively employed or from a Leave
of Absence; or
	 
	 	•  	Deceased during the Plan Year while actively employed or on a Leave of Absence.

Award Calculation

Awards will be calculated and paid after the close of each Plan Year on which the awards are
based. The award amount will be based on Eligible Earnings, the Target Award %, and the Business
and Individual Performance Factors, as follows:

	 	 	 	 	 	 	 	 	 
	

	 	 	 	Business
	 	 	 	Individual	 
	

	 	Award = Eligible Earnings x Target Award % x
	 	Performance
	 	x
	 	Performance	 
	

	 	 	 	Factor
	 	 	 	Factor	 

Eligible Earnings is defined below. Target Award %’s, Business Performance Factors and Individual
Performance Factors for each Plan Year shall be determined by the Compensation and Leadership
Committee of the Board of Directors (the “Compensation Committee”). Business Performance Factors
shall be based on Operating Earnings, Operating Cash Flow, Revenue Growth, Quality and such other
factors as may be determined by the Compensation Committee.

Payout Process

	•  	All earned awards will be paid in cash. Payment will be made as soon as administratively practicable following the
close of a Plan Year.
	 
	•  	A participant shall have no right to any award until that award is paid.
	 
	•  	If the Compensation Committee determines, in its sole discretion, that a participant has engaged in any activity at any
time, prior to the payment of an award, that the committee determined was, is or will be harmful to the Company, the
participant will forfeit any unpaid award.

Administration

	•  	The Compensation Committee has the responsibility for this Plan
and may delegate to the MIP Plan Committee (the “MIP Committee”)
the authority to manage, administer and interpret the terms of the
Plan and such other responsibilities specifically delegated to the
MIP Committee by the Compensation Committee . Unless otherwise
determined, the MIP Committee will consist of the Senior Human
Resources Officer, a senior Compensation Officer, and a senior
Finance Officer.

	•  	Any claims for payments under the Plan or any other matter
relating to the Plan must be presented in writing to the MIP
Committee within 60 days after the event that is the subject of
the claim. The MIP Committee will then provide a response within
60 days, which response shall be final and binding.

2005 Motorola Incentive Plan

 

 

General Provisions

	•  	Awards are subject to all applicable withholding taxes and other required deductions.

	•  	The Plan will not be available to employees subject to the laws of any jurisdiction which prohibits any provisions of this Plan or in
which tax or other business considerations make participation impracticable in the judgment of the MIP Committee.

	•  	This Plan does not constitute a guarantee of employment nor does it restrict Motorola’s rights to terminate employment at any time or for
any reason.

	•  	The Plan and any individual award is offered as a gratuitous award at the sole discretion of Motorola. The Plan does not create vested
rights of any nature nor does it constitute a contract of employment or a contract of any other kind. The Plan does not create any
customary concession or privilege to which there is any entitlement from year-to-year, except to the extent required under applicable
law. Nothing in the Plan entitles an employee to any remuneration or benefits not set forth in the Plan nor does it restrict Motorola’s
rights to increase or decrease the compensation of any employee, except as otherwise required under applicable law.

	•  	Except as explicitly provided by law, the awards shall not become a part of any employment condition, regular salary, remuneration
package, contract or agreement, but shall remain gratuitous in all respects. Awards are not to be taken into account for determining
overtime pay, severance pay, termination pay, pay in lieu of notice, or any other form of pay or compensation.

	•  	Except as explicitly provided by law, this Plan is provided at Motorola’s sole discretion and Motorola may modify or terminate it at any
time, prospectively or retroactively, without notice or obligation. In addition, there is no obligation to extend the Plan or establish
a replacement plan in subsequent years.

	•  	The Plan shall not be funded in any way. Motorola shall not be required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of awards. To the extent any person acquires a right to receive payment under the Plan, such
right will be no greater than the right of an unsecured general creditor of the Company.

	•  	Since employee retention is an important objective of this Plan and awards do not bear a precise arithmetic relationship to time worked
within the calendar year or length of service with Motorola, employees who separate from employment (payroll) prior to the end of the
Plan Year other than death or retirement shall not receive a pro rata award.

	•  	In the event an employee remains on payroll as an active employee at the end of a plan year, but is not actually working, whether or not
on a Leave of Absence, the employee will be entitled to a pro rata award based on the number of completed months within the plan year in
which the participant was actually working, provided that the employee is otherwise eligible for an award. In the event an employee
retires from Motorola during the plan year, but is not actually working for a period preceding the retirement date, whether or not on a
Leave of Absence, the employee will be entitled to a pro rata award based on the number of completed months within the plan year in which
the participant was actually working, provided that the employee is otherwise eligible for an award.

	•  	The award for an employee who has died prior to the end of the Plan Year while actively employed or on a Leave of Absence will be paid to
the decedent’s estate. The award for an employee who died during the plan year will be pro-rated based on the number of completed months
of active employment during the plan year.

	•  	Awards for transferred, promoted or demoted employees will be calculated using the:

	 	•  	Target Award % applicable to the employee’s country and grade at the end of the Plan Year
	 
	 	•  	Business Performance Factor prorated for the portion of the year the participant was
in different Participating Organizations during the Plan Year.

	•  	Award opportunities may not be sold, transferred, pledged, assigned, or otherwise alienated
or hypothecated, other than by will or by the laws of descent and distribution.

Definitions

Eligible Earnings: The MIP Committee will determine Eligible Earnings for each country,
consistent with their respective legal and practical requirements. The MIP Committee may determine
inclusions and exclusions from Eligible Earnings as it deems appropriate and may vary its
determinations by country.

Employee: a person in an employee-employer relationship with the Company whose base wage or base
salary is processed for payment by the Company’s Payroll Department(s) and not by any other
department of the Company (or by any other company). Does not include:

	•  	Any independent contractor, consultant, or individual performing services for the Company who has entered into an
independent contractor or consultant agreement;

	•  	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 services;

2005 Motorola Incentive Plan

 

 

	•  	Any person classified by the Company as a temporary or contract labor (such as black badges, brown badges,
contractors, contract employees, job shoppers) regardless of the length of service; and

	•  	Any “leased employee” as defined in Section 414(n) of the U.S. Internal Revenue Code of 1986, as amended.

Retired: This Plan utilizes the definition of “retiree” that appears in the primary
retirement plan covering the employee.

Operating Earnings: calculated according to GAAP, excluding one-time events called out in earnings
releases, such as restructuring activities and sales of marketable securities.

Operating Cash Flow: calculated according to GAAP, excluding gains on sales of investments and
securities.

Revenue Growth: calculated as the year-over-year percentage increase in net sales after discounts
according to GAAP, adjusted for the impact of mergers, acquisitions, and divestitures in excess of
$50 million.

Quality: combination of measures of customer satisfaction, reliability, and cost of poor quality,
as defined by Motorola senior leaders.

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

Applicable Law

To the extent not preempted by federal law, or otherwise provided by local law, the Plan will
be construed in accordance with, and governed by, the laws of the state of Illinois without giving
effect to the principles of conflicts of laws.

2005 Motorola Incentive Plan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]