Document:

exv10w35

 

Exhibit 10.35

2006
Motorola Incentive Plan

(As Amended and Restated as of January 1, 2008)

Overview

The 2006 Motorola Incentive 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 2006. The Plan is being implemented pursuant to the terms and conditions of
the Omnibus Plan. Capitalized terms are defined in the “Definitions” section below.

Eligibility

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

	 	•	 	A full-time or part-time Employee of Motorola assigned to a Participating
Organization;
	 
	 	•	 	Not a participant in any other annual group incentive or bonus plan (e.g., sales
commission plans, etc.); and
	 
	 	•	 	The Employee must meet one of the following conditions:

	 	•	 	The Employee is active on a Company payroll as of the end of the Plan
Year;
	 
	 	•	 	The Employee is on a Leave of Absence as of the end of the Plan Year;
	 
	 	•	 	The Employee Retired from the Company during the Plan Year while
actively employed or from a Leave of Absence; or
	 
	 	•	 	The Employee died during the Plan Year while actively employed by the
Company or while on a Leave of Absence.

The MIP Committee may modify the foregoing eligibility provisions to exclude groups of employees on
a country-wide or business unit/organizational basis as the MIP Committee deems necessary or
appropriate.

 

 

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 Percentage, and the Business
and Individual Performance Factors, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Award

	 	=
	 	Eligible Earnings
	 	*
	 	Target Award
	 	*
	 	Business
	 	*
	 	Individual
	 

	 	 	 	 	 	 	 	Percentage
	 	 	 	Performance Factor
	 	 	 	Performance Factor

Target Award Percentages, Business Performance Factors and Individual Performance Factors for each
Plan Year shall be determined by 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 in its complete discretion.

Payout Process

	 	•	 	All earned awards will be paid in cash. Payment will be made as soon as
administratively practical following the close of a Plan Year.
	 
	 	•	 	A Participant shall have no right to any award until that award is paid.

Administration

	 	•	 	The Compensation Committee has the overall responsibility for administering and
amending this Plan, subject to the following:

	 	•	 	The Compensation Committee, in its discretion, can include or
exclude individual items from the calculation of the Business
Performance Factors for good reason.
	 
	 	•	 	The Compensation Committee has delegated to the MIP Committee the
authority to manage the day-to-day administration of the Plan
including without limitation the discretionary authority to (i)
administer and interpret the terms of the Plan, and (ii) amend the
Plan only as necessary to reflect any ministerial, administrative or
managerial functions; provided

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	 	 	 	that any such amendment does not alter the Business Performance Factor
once established for any Participating Organization or the
Motorola-Wide Business Performance Factor for any Plan Year and
provided that any such amendment does not increase the total payout
under the Plan unless such increase is minor and due to increased
Target Award Percentages, additional Participants, or other
administrative changes.
	 
	 	•	 	The Compensation Committee has delegated certain responsibilities
to the Chief Executive Officer of the Company, the exercise of which
cannot result in an increased aggregate cost of the Plan in any Plan
Year.
	 
	 	•	 	The Compensation Committee specifically reserves to itself the
authority to set the initial Target Award Percentage and to determine
any final award payment for any Participant who is (i) subject to
Section 162(m), (ii) subject to Section 16, or (iii) designated as a
member of the Motorola Senior Leadership Team.

	 	•	 	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 shall be final and binding.

General Provisions

	 	•	 	Awards are subject to all applicable withholding taxes and other required
deductions.
	 
	 	•	 	The Plan will not be available to Employees who are 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 the
Company’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 the Company. 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

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	 	 	 	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 the Company’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 the Company’s sole
discretion and the Compensation Committee may modify or terminate it at any time,
prospectively or retroactively, without notice or obligation for any reason. In
addition, there is no obligation to extend the Plan or establish a replacement plan
in subsequent years.
	 
	 	•	 	Effective as of January 1, 2008, all awards to Covered Persons are subject to the
terms and conditions of the Recoupment Policy. The Recoupment Policy provides for
determinations by the Company’s independent directors of a Policy Restatement. In
the event of a Policy Restatement, the Company’s independent directors may require,
among other things, reimbursement of the gross amount of any bonus or incentive
compensation paid to the Covered Person hereunder on or after January 1, 2008 if and
to the extent the conditions set forth in the Recoupment Policy apply. Any
determinations made by the independent directors in accordance with the Recoupment
Policy shall be binding upon the Covered Person. The Recoupment Policy is in
addition to any other remedies which may be otherwise available at law, in equity or
under contract, to the Company.
	 
	 	•	 	The Plan shall not be funded in any way. The Company 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.
	 
	 	•	 	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.

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	 	•	 	The Compensation Committee establishes the following administrative provisions
reflecting changes in Employee status during the Plan Year:

	 	•	 	Because employee retention is an important objective of this Plan and
awards do not bear a precise relationship to time worked within the
calendar year or length of service with the Company, Participants who
separate from employment (payroll) prior to the end of the Plan Year (for
reasons other than death or Retirement) shall not receive any award
attributable to that Plan Year.
	 
	 	•	 	In the event a Participant (i) remains on payroll as an active Employee
or is on a Leave of Absence at the end of a Plan Year, but is not actually
working, (ii) Retires or dies prior to the end of the Plan Year while
actively employed or on a Leave of Absence, any award received by the
Participant shall be based solely on the Participant’s Eligible Earnings
for the time the Participant actually worked during the Plan Year. Any
such award payable on behalf of a deceased Participant shall be paid to
the decedent’s estate. A Participant on any type of leave of absence
shall not be considered to be actually working for purposes of this Plan.
	 
	 	•	 	Awards for transferred, promoted or demoted Participants will be
calculated using (i) the Individual Performance Factor assigned at the
end of the Plan Year and (ii) the Target Award Percentages and Business
Performance Factors prorated for the portions of the Plan Year the
Participant was assigned different target awards or was in different
Participating Organizations during the Plan Year; provided, however, that
the Target Award Percentage may not be increased without Compensation
Committee approval for any Participant who is (i) subject to Section
162(m), (ii) subject to Section 16, or (iii) designated as a member of
the Motorola Senior Leadership Team.

The MIP Committee may modify the foregoing provisions as it deems necessary or
appropriate to apply to groups of employees on a country-wide or business
unit/organizational basis as the MIP Committee deems necessary or appropriate.

5

 

Definitions

Company: Motorola, Inc. and its subsidiaries.

Compensation Committee: the Compensation and Leadership Committee of the Board of Directors.

Covered Persons: officers (as such term is defined in Rule 16a-1(f) under the Securities Exchange
Act of 1934) of the Company.

Divested: the sale, lease, outsourcing arrangement, spin-off or similar transaction wherein a
subsidiary is sold or whose shares are distributed to the Motorola stockholders, or any other type
of asset transfer or transfer of any portion of a facility or any portion of a discrete
organizational unit of Company or a subsidiary.

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 to apply to groups of employees on a country-wide or business
unit/organizational basis as the MIP Committee deems necessary or appropriate.

Employee: a person in an employee-employer relationship with the Company whose base wage or base
salary is processed for payment by the payroll department(s) of the Company or a subsidiary and not
by any other department of the Company. The term Employee shall exclude the following:

	 	•	 	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;
	 
	 	•	 	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.

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Such individuals shall be precluded from retroactive participation in the Plan even if a court or
governmental or regulatory entity subsequently reclassifies such individuals as common law
employees of the Company on a retroactive basis.

Gross Margin: net sales minus the cost of goods sold, calculated according to GAAP.

Leave of Absence: an approved leave of absence.

MIP Committee: a committee to which the Compensation Committee may delegate certain powers and
duties as described above. Unless otherwise determined, the MIP Committee will consist of the
Senior Human Resources Officer, a senior Compensation Officer, and a senior Finance Officer. The
MIP Committee may establish self-governance procedures such as by-laws, and shall keep minutes
regarding all actions taken by the MIP Committee.

Omnibus Plan: the Motorola Omnibus Incentive Plan of 2006, or any successor plan.

Operating Earnings: calculated according to GAAP, excluding one-time events called out in earnings
releases, such as restructuring activities and sales of marketable securities. It also excludes
stock compensation expense. It will be adjusted for the impact of mergers, acquisitions, and
divestitures material to the business segment.

Operating Cash Flow: calculated according to GAAP, which excludes gains on sales of investments
and securities, and the following acquisition-related costs: intangible amortization and in-process
research and development. It will be adjusted for the impact of mergers, acquisitions, and
divestitures material to the business segment.

Participant: an Employee who meets the eligibility requirements set forth above.

Plan: the 2006 Motorola Incentive Plan, as amended from time to time.

Plan Year: calendar-year performance periods commencing each 1 January.

Policy Restatement: a restatement of the Company’s financial results caused by the intentional
misconduct of a Covered Person.

Quality: combination of measures of customer advocacy, reliability, flawless launch, and/or cost
of poor quality, as defined by the MIP Committee. The MIP Committee may add or delete quality
measures to reflect changing business requirements.

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Recoupment Policy: the Company’s Policy Regarding Recoupment of Incentive Payments upon Financial
Restatement, as it may be amended from time to time.

Retired or Retirement: this Plan utilizes the definition of “retiree” and retirement that appears
in the primary retirement plan covering the Participant.

Revenue Growth: calculated as the year-over-year percentage increase in net sales after discounts
according to GAAP. It will be adjusted for the impact of mergers, acquisitions, and divestitures
material to the business segment.

Section 16: Section 16 of the Securities Exchange Act of 1934, as amended.

Section 162(m): Section 162(m) of the Internal Revenue Code, as amended.

If a term is used but not defined in the Plan, 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 regard to
any state’s conflicts of laws principles. Any legal action related to this Plan shall be brought
only in a federal or state court located in Illinois.

8exv10w36

 

Exhibit 10.36

Motorola Long Range Incentive Plan (LRIP) of 2005

(As Amended and Restated as of January 30, 2008)

ELIGIBILITY

Corporate, Senior and Executive Vice Presidents (“Officers”) of Motorola, Inc. (“Motorola”) or a
Subsidiary, as recommended by the Chief Executive Officer and approved by the Compensation and
Leadership Committee of the Board of Directors (“Committee”), are eligible to participate in the
Motorola Long Range Incentive Plan (LRIP) of 2005 (the “Plan”). The Chief Executive Officer and the
Chief Operating Officer (if any) are also eligible to participate as approved by the Committee.

PARTICIPATION

Generally, Officers who become eligible to participate during the first quarter of a performance
cycle will participate in a full multi-year performance cycle. Officers who become eligible to
participate after the first quarter of a performance cycle will participate in the performance
cycle on a pro rata basis, except that Officers who become eligible to participate during the last
quarter of a performance cycle will not be eligible to participate in the performance cycle.

Participants who lose their eligibility to participate as a result of the lapse of status as an
elected officer after the first quarter of a performance cycle will participate in the performance
cycle on a pro rata basis if the employment of the participant continues through the last day of
the performance cycle. Participants who lose their eligibility to participate in the first quarter
of a performance cycle will not be eligible to participate in the performance cycle.

Pro rata awards will be determined on the basis of the number of completed months of employment as
an elected officer within the performance cycle.

OVERVIEW

The Plan is being implemented pursuant to the terms and conditions of the Omnibus Incentive Plan of
2003 (“Omnibus Plan”). Here is an overview of the Plan:

	»	 	Performance Cycle
	 
	 	 	The Plan is based upon multi-year performance cycles selected by the Committee with an initial
three-year performance cycle beginning on January 1, 2005.
	 
	»	 	Performance Measures
	 
	 	 	Performance measures for each cycle will be determined by the Committee based on improvement in
economic profit and growth in sales of Motorola during each multi-year performance cycle.
Performance measures may apply to performance in each year in the performance cycle, to
cumulative performance during the entire performance cycle, or a combination of both. If
performance measures are applied to performance in each year in the performance cycle,
performance to target for each
year shall be divided by the number of years in the performance cycle and added

 

 

	 	 	together to
determine the award for the entire performance cycle. Awards may be subject to partial
forfeiture if Motorola’s total shareholder return for the entire performance cycle does not
exceed the median total shareholder return for the performance cycle for a defined comparator
group.
	 
	 	 	Economic profit is defined as net operating profit after tax minus a capital charge.
	 
	 	 	Net operating profit after tax and sales for each year during a performance cycle shall be
determined in accordance with generally accepted accounting principles but shall exclude the
effect of all acquisitions with a purchase price of $250 million or more, all gains or losses
on the sale of a business, any asset impairment equal to $100 million or more, and any other
special items designated by the Committee.
	 
	»	 	Maximum Earned Award
	 
	 	 	A participant’s maximum earned award will be two times his/her target award. A participant’s
target award is established at the commencement of a performance cycle based on a percentage of
the participant’s base pay rate in effect at that time. The target award of any participant
(other than a participant who is a “covered employee” within the meaning of Section 162(m) of
the Internal Revenue Code (a “Covered Employee”)), will be adjusted at the time of promotion,
demotion or other change of status and the award earned by the participant will be determined
using a blended target award reflecting the period of time before and after the change of
status and, if any, the target award applicable to each period. If performance measures are
applied to performance in each year in the performance cycle, the target award for a Covered
Employee for any succeeding year will be adjusted at the commencement of the next year in the
performance cycle.
	 
	»	 	The Payout Process

	 	•	 	All earned awards will be paid in cash or Company stock, as determined by the
Committee in its discretion. To the extent awards are paid in Company stock, the number
of shares of stock earned by a participant shall be determined by dividing the amount of
the award earned during the performance cycle by the Certification Date Value. The
shares will be issued under, and subject to the limitations of, the Omnibus Plan or such
other shareholder-approved Company equity-based incentive plan as designated by the
Committee.
	 
	 	•	 	The Company shall have the right to satisfy all federal, state and local
withholding tax requirements with respect to the award earned by reducing either
(1) the cash paid (in the event or a cash payment) by the amount of withholding
or (2) the number of earned shares (in the event of a stock payment) by the
number of shares determined by dividing the amount of withholding required by the
Certification Date Value.
	 
	 	•	 	Payments will be made as soon as administratively practicable following the
close of a performance cycle. A participant has no right to any award until that
award is paid.

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	 	•	 	The Committee may reduce the amount of the payment to be made pursuant to this
Plan to any participant who is or may be a “covered employee” within the meaning
of Section 162(m) of the Internal Revenue Code at any time prior to payment as a
result of the participant’s performance during the performance cycle. The Chief
Executive Officer may adjust the amount of the payment to be made pursuant to
this Plan to any other participant at any time prior to payment as a result of
the participant’s performance during the performance cycle; provided, however,
that any such adjustment may not result in a payment to the participant in excess
of the participant’s maximum award under the Plan and any such adjustment to a
payment to a member of the Senior Leadership Team will be subject to the approval
of the Committee.
	 
	 	•	 	If the Committee determines, in its sole discretion, that a participant has
willfully engaged in any activity at any time, prior to the payment of an award,
that the Committee determines was, is, or will be harmful to the Company, the
participant will forfeit any unpaid award.

SITUATIONS AFFECTING THE PLAN

	»	 	Change in Employment

	 	•	 	Generally, a participant will be eligible for payment of an earned award only
if employment continues through the last day of the performance cycle.
	 
	 	•	 	Pro rata awards may be possible, however, depending upon the type of
employment termination. The table below summarizes how earned awards will
generally be prorated in accordance with the type of employment termination:

	 	 	 
	If employment terminates due to...	 	The earned award will be...
	 
	Death

	 	Pro rated based on the number of
completed months of employment
within the performance cycle.
	 
	 	 
	Total and Permanent Disability

	 	Pro rated based on the number of
completed months of employment
within the performance cycle.
	 
	 	 
	Retirement (in all countries other than
member states or acceding countries of
the European Union)

	 	Pro rated based on the number of
completed months of employment
within the performance cycle.
	 
	 	 
	Termination of Employment Because of
Serious Misconduct

	 	Forfeited.
	 
	 	 
	Change in Employment in Connection with
a Divestiture

	 	Forfeited.
	 
	 	 
	Termination of Employment for any Other
Reason than Described Above

	 	Forfeited.
	 
	 	 
	For purposes of determining a prorated payout, completed months of employment
will include only those months in which the participant is actually working
and is an Officer.

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	•	 	In the event a participant is reclassified from a higher elected officer level
to a lower elected officer level (i.e., (a) from Executive Vice President to
either Senior Vice President or Corporate Vice President or (b) from Senior Vice
President to Corporate Vice President), the participant’s target award will be
recalculated to reflect (a) the higher target award level for the actual number
of months completed within the performance cycle while employed in the higher
elected officer level and (b) the lower target award level for the actual number
of months completed within the performance cycle while employed in the lower
elected officer level.
	 
	•	 	In the event a participant is promoted from a lower elected officer level to a
higher elected officer level (i.e., (a) from Corporate Vice President to Senior
Vice President or Executive Vice President or (b) from Senior Vice President to
Executive Vice President), the participant’s target award will be recalculated to
reflect (a) the lower target award level for the actual number of months
completed within the performance cycle while employed in the lower elected
officer level and (b) the higher target award level for the actual number of
months completed within the performance cycle while employed in the higher
elected officer level.
	 
	•	 	In the event a participant remains on payroll as an active employee at the end
of a performance cycle, but is not actually working and/or is on a leave of
absence which carries a right to return to work, the participant will be entitled
to a pro rata award based on the number of completed months of employment within
the performance cycle in which the participant was actually working as an
Officer, provided that the participant is otherwise eligible for an award.
	 
	•	 	A prorated payout will be based on final performance results and paid as soon
as administratively practicable after the end of a performance cycle.
	 
	 	 	For purposes of the Plan, “Total and Permanent Disability” and Retirement” will be defined
as set forth below:
	 
	•	 	Total and Permanent Disability means for (x) U.S. employees, entitlement to
long-term disability benefits under the Motorola Disability Income Plan, as
amended and any successor plan and (y) non-U.S. employees, as established by
applicable Motorola policy or as required by local regulations.
	 
	•	 	Retirement shall only apply in countries other than member states or acceding
countries of the European Union and shall mean retirement from Motorola or a
Subsidiary as follows:

(i) retiring at or after age 55 with 20 years of service;

(ii) Retiring at or after age 60 with 10 years of service;

(iii) Retiring at or after age 65, without regard to years of service;

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(iv) Retiring with any other combination of age and service, at the discretion of
the Committee.

Years of service will be based on the participant’s Service Club Date.

	»	 	Change in Control
	 
	 	 	If Motorola undergoes a Change in Control as defined in the Omnibus Plan:

	 	•	 	If performance measures are applied to performance in the entire performance
cycle, the sales growth and economic profit improvement for the performance cycle
will be determined as of the effective date of the Change in Control and pro rata
award payments will be made based on the number of completed months of the cycle
as of the effective date of the Change in Control.
	 
	 	•	 	If performance measures are applied to performance in each year in the
performance cycle, the sales growth and economic profit improvement for any
partial year will be determined as of the date of the Change in Control and
performance to target as of that date will be divided by the number of years in
the performance cycle and added to the amounts earned in any completed years.
	 
	 	•	 	Awards will not be subject to any partial forfeiture based on total
shareholder return.
	 
	 	•	 	Awards will be paid in stock as soon as administratively practicable following
the effective date of the Change in Control, but no later than 90 days after that
date.

DEFINITION OF TERMS

Covered Persons: officers (as such term is defined in Rule 16a-1(f) under the Securities Exchange
Act of 1934) of the Company.

Policy Restatement: a restatement of the Company’s financial results caused by the intentional
misconduct of a Covered Person.

Recoupment Policy: the Company’s Policy Regarding Recoupment of Incentive Payments upon Financial
Restatement, as it may be amended from time to time.

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

Serious Misconduct: means any misconduct that is a ground for termination under the Motorola Code
of Business Conduct, or human resources policies, or other written policies or procedures.

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

RESERVATION AND RETENTION OF COMPANY RIGHTS

	 	•	 	The selection of any employee for participation in the Plan will not give that
participant any right to be retained in the employ of the Company.

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	 	•	 	Participation in the Plan is completely at the discretion of Motorola, and
Motorola’s decision to make an award in no way implies that similar awards may be
granted in the future.
	 
	 	•	 	Anyone claiming a benefit under the Plan will not have any right to or
interest in any awards unless and until all terms, conditions, and provisions of
Plan that affect that person have been fulfilled as specified herein.
	 
	 	•	 	No employee will at any time have a right to be selected for participation in
a future performance period for any fiscal year, despite having been selected for
participation in a previous performance period.

GOVERNANCE

It is expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan, all of which will be
binding upon the participant.

AMENDMENT, MODIFICATION, and TERMINATION

The Committee may amend, modify, or terminate the Plan and the terms applicable to any performance
cycle at any time; provided, however, that no such action may adversely affect a participant’s
rights under the Plan subsequent to such time as negotiations or discussions which ultimately lead
to a Change in Control have commenced.

MISCELLANEOUS PROVISIONS

	 	•	 	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.
	 
	 	•	 	To the extent permitted by law, amounts paid under the Plan will not be
considered to be compensation for purposes of any benefit plan or program
maintained by the Company.
	 
	 	•	 	All obligations of the Company under the Plan with respect to payout of
awards, and the corresponding rights granted thereunder, will be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or other acquisition of
all or substantially all of the business and/or assets of the Company.
	 
	 	•	 	Effective as of January 1, 2008, all awards to Covered Persons are subject to
the terms and conditions of the Recoupment Policy. The Recoupment Policy
provides for determinations by the Company’s independent directors of a Policy
Restatement. In the event of a Policy Restatement, the Company’s independent
directors may require, among other things, reimbursement of the gross amount of
any bonus or incentive compensation paid to the Covered Person hereunder on or
after January 1, 2008, if and to the extent the conditions set forth in the
Recoupment Policy apply. Any determinations made by the independent directors in

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	 	 	 	accordance with the Recoupment Policy shall be binding upon the Covered Person.
The Recoupment Policy is in addition to any other remedies which may be otherwise
available at law, in equity or under contract, to the Company.
	 
	 	•	 	In the event that any provision of the Plan will be held illegal or invalid
for any reason, the illegality or invalidity will not affect the remaining parts
of the plan, and the Plan will be construed and enforced as if the illegal or
invalid provision had not been included.
	 
	 	•	 	No participant or beneficiary will have any interest whatsoever in any
specific asset of the Company. To the extent that any person acquires a right to
receive payments under the Plan, such right will be no greater than the right of
any unsecured general creditor of the Company.
	 
	 	•	 	To the extent not preempted by federal law, the Plan, and all agreements
hereunder, 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.
	 
	 	•	 	This Plan constitutes a legal document which governs all matters involved with
its interpretation and administration and supersedes any writing or
representation inconsistent with its terms.

-7-

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