Document:

Transition Servces Agreement

 EXHIBIT 10(f) 
  
 TRANSITION SERVICES AGREEMENT – MOTOROLA PROVIDED SERVICES 
  
 This TRANSITION SERVICES AGREEMENT – MOTOROLA PROVIDED SERVICES (this
“Agreement”) is entered into this 4th day of April, 2004 by and between Motorola, Inc., a Delaware
corporation (“Motorola”) and Freescale Semiconductor, Inc., a Delaware corporation (“Freescale”). 
  
 RECITALS 
  
 A. Pursuant to that certain Master Separation and Distribution Agreement dated April 4, 2004, by and between Motorola and Freescale (the
“Separation Agreement”), the Parties have agreed to separate the businesses and operations conducted by the Semiconductor Products Sector (“SPS”) of Motorola and its Affiliates from the remainder of Motorola.
Motorola and Freescale are sometimes referred to herein as a “Party” and collectively as the “Parties.” Capitalized terms used herein and not otherwise defined herein have the meanings given to such terms in the
Separation Agreement. 
  
 B. In connection therewith, Freescale
desires that Motorola and/or its Affiliates provide Freescale and/or its Affiliates (collectively, the “Company”), as applicable, with certain transition services with respect to the operation of the Company following the Effective
Date, as more fully set forth herein. 
  
 NOW, THEREFORE, in
consideration of the promises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Motorola and Freescale each hereby agree as follows: 
  
 AGREEMENT 
  
 1. Transition Services. During the term of this Agreement as set forth
in Section 4, Motorola shall provide, or shall cause one or more of its Affiliates or third parties to provide, to Freescale and/or its Affiliates, as applicable, upon the terms and subject to the conditions hereof, the services more
particularly described on Annex A (each service, a “Transition Service” and collectively, the “Transition Services”). Motorola and Freescale may, by mutual written consent, amend the Transition Services to
include other services in exchange for additional fees (“Additional Services”). Freescale shall and shall cause its Affiliates to, if applicable, adhere to any conditions or policies applicable to its use of the Transition Services
as set forth in this Agreement or in Annex A. 
  
 2.
Level of Transition Services. 
  
 (a)
Unless otherwise specifically set forth in Annex A, Motorola will perform the Transition Services in the manner and at a level of service substantially similar to that provided by Motorola to SPS during the period immediately prior to the
date hereof; 

  

 
provided, however, that nothing in this Agreement will require Motorola to favor the Company over its other business operations. 
  
 (b) Unless otherwise specifically set forth in Annex
A, it is the intention of Freescale and Motorola that the Company’s use of any Transition Service shall not be substantially greater than the level of use required by SPS immediately prior to date hereof. In no event will the Company be
entitled to any new service or to substantially increase its use of any of the Transition Services above that level of use without the prior written consent of Motorola; provided, however that if Motorola consents to such an increase, Motorola shall
be entitled to a pro rata increase in fees. 
  
 3. No
Obligation to Continue to Use Services; Partial Termination. The Company will have no obligation to continue to use any of the Transition Services and Freescale may terminate any Transition Service by giving Motorola not less than thirty (30)
days’ prior written notice of its desire to terminate any Transition Service. To the extent possible, Freescale will give such notice at the beginning of a fiscal month to terminate the service as of the beginning of the next fiscal month to
avoid the need to prorate any monthly payment charges. As soon as reasonably practicable following receipt of any such notice, Motorola shall advise Freescale as to whether termination of such Transition Service will (a) require the termination or
partial termination of, or otherwise affect the provision of, certain other Transition Services, or (b) result in any early termination costs, including those related to third party providers. If either will be the case, Freescale may withdraw its
termination notice within five (5) business days. If Freescale does not withdraw the termination within such period, such termination shall be final. Upon such termination, Freescale’s obligation to pay for such Transition Service(s), if any,
shall terminate, and Motorola shall cease, or cause its Affiliates or third party providers to cease, providing the terminated Transition Service(s), both subject to the terms of Section 4(c); provided, however, that Freescale shall reimburse
Motorola for the reasonable termination costs actually incurred by Motorola resulting from Freescale’s early termination of such Transition Services, including those owed to third party providers. Motorola will use commercially reasonable
efforts to mitigate such termination costs. 
  
 4. Term and
Termination. 
  
 (a) Subject to Section
3, the term of this Agreement shall commence on the date hereof and continue with respect to each of the Transition Services for the term thereof as set forth in Annex A; the last date in each such term being referred to herein as a
“Service Termination Date” for each such Transition Service. 
  
 (b) Notwithstanding the foregoing, this Agreement may be terminated upon the earliest to occur of the following (each, a “Termination Date”): (i) by Motorola, immediately by giving written notice to
Freescale if Freescale breaches or is in default of any payment obligation, which default is capable of being cured, and such breach or default has not been cured within thirty (30) days after Freescale’s receipt of notice of such a breach or
default from Motorola; (ii) by Freescale as to any particular Transition Service pursuant to Section 3; and (iii) by Motorola or Freescale, automatically upon the occurrence of the last of the Service Termination Dates. 
  

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 (c) Immediately following the Termination Date, Motorola shall cease, or cause its
Affiliates or third party providers to cease, providing the Transition Services, and Freescale shall promptly pay or cause its Affiliates to promptly pay all fees accrued pursuant to Section 6 but unpaid to Motorola. The terms and conditions
of this Agreement that, by their terms, require performance following the termination or expiration of this Agreement shall survive such termination or expiration. 
  
 5. General Intent. The Company shall use commercially reasonable efforts to end its use of the Transition Services as
soon as reasonably possible and (unless the Parties otherwise agree) in all events to end such use with respect to each Transition Service not later than the applicable Service Termination Date. 
  
 6. Fees.  
  
 (a) Consideration. As consideration for the
Transition Services, Freescale will pay to Motorola (or will cause its Affiliates to pay to Motorola or Motorola’s Affiliates, as applicable) the amount specified for each Transition Service as set forth in Annex A on a monthly basis
except (i) as otherwise specified in Annex A with respect to a particular Transition Service, (ii) for Tigers purchases, Web Money reimbursements, other “normal” department charges which will result in a cash disbursement made by
Motorola or its Affiliates on behalf of Freescale or its Affiliates, reimbursement shall be made as described in clause (b) below, and (iii) Motorola and its Affiliates, as applicable, shall be entitled to charge Freescale or its Affiliates, as
applicable, for any VAT or similar charges that they are legally required to charge on such amounts. Unless the parties otherwise agree, any amounts charged to Freescale’s Affiliates outside of the United States will be billed and paid in the
local currency of the entity providing the Transition Services; provided that such payments are made within such country. Unless the parties otherwise agree, if payments are to be made between legal entities not within the same country, such amounts
will be billed and paid in U.S. dollars. To the extent necessary, local currency conversion will be based on the P&L rate for the current month. The Transition Services to be provided by third parties will be charged to the Company at no higher
cost than the actual payments made by Motorola to third party providers for providing such Transition Services. All charges based on a monthly or other time basis will be pro rated based on actual days elapsed during the period of service. Upon the
termination of any Transition Service in accordance with and subject to, Sections 3 or Section 4 above, the consideration to be paid under this Section 6 will be the accrued pro rated daily fees payable under this Section
6 except in cases where Motorola or its Affiliate has already procured and pre-paid for the services of a third party provider. 
  
 (b) Invoices. On the last Friday of each fiscal month, each of Motorola and each of its Affiliates providing Transition Services
will submit one invoice to each of Freescale and each of its Affiliates receiving Transition Services for all Transition Services provided to the Company during such fiscal month pursuant to this Agreement. Notwithstanding the foregoing, for items
described in clause (a)(ii) above, each of Motorola and each of its Affiliates shall submit a weekly invoice to each of Freescale and each of its Affiliates for the amount subject to reimbursement and the related VAT. The invoices shall break out
the amount for each type of Transition Service or amounts subject to reimbursement. Motorola will 

  

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provide documentation supporting any amounts invoiced pursuant to this Section 6 as Freescale may from time to time reasonably request, including,
without limitation, detail with respect to any third party billing information relating to the Transition Services provided under this Agreement. 
  
 (c) Time of Payment. Except as provided in clause (a) above, Freescale will pay and will cause each of its Affiliates to pay all
amounts due pursuant to this Agreement (ii) within thirty (30) days after receipt of each such invoice hereunder for the Transition Services and (ii) within forty-five (45) days after receipt of each such invoice hereunder for the amounts subject to
reimbursement; provided that in the event that Freescale, in good faith and upon reasonable grounds, questions any invoiced item, payment of that item may be made only after resolution of such question. 
  
 7. Personnel. 
  
 (a) Right to Designate and Change Personnel. Motorola
will make available such personnel as will be required to provide the Transition Services described in Annex A. Motorola will have the right to designate which personnel it will assign to perform the Transition Services. Motorola also will
have the right to remove and replace any such personnel at any time or designate any of its Affiliates or a third-party provider at any time to perform the Transition Services; provided, however, that Motorola will use its commercially reasonable
efforts to limit the disruption to the Company in the transition of the Transition Services to different personnel or a third party. In the event that personnel with the designated level of experience are not then employed by Motorola, Motorola will
substitute such personnel or third party personnel having an adequate level of experience; provided, however, that Motorola will have no obligation to retain any individual employee for the sole purpose of providing the applicable Transition
Services. 
  
 (b) Financial Responsibility for
Motorola Personnel. Motorola will pay for all personnel expenses, including wages, of its employees performing the Transition Services. Any request by the Company for travel by any Motorola employee will be considered and treated as a request
for Additional Services pursuant to Section 1 and the costs of such travel shall be charged to the Company as additional fees. 
  
 (c) Motorola Manager. During the term of this Agreement, Motorola will appoint one of its employees (the “Motorola
Manager”) who will have overall responsibility for managing and coordinating the delivery of the Transition Services and one of its employees for each category of service. The Motorola Manager and each of the sub-managers will coordinate
and consult with the Freescale Manager (as defined in Section 7(d)) and each of the Freescale sub-managers. Motorola may, at its discretion, select other individuals to serve in these capacities during the term of this Agreement. 

  
 (d) Freescale Manager. During the term
of this Agreement, Freescale will appoint one of its employees (the “Freescale Manager”) who will have overall responsibility for managing and coordinating the delivery of the Transition Services and one of its employees for each
category of service. The Freescale Manager and each of the Freescale sub-managers will 

  

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coordinate and consult with the Motorola Manager and each of the Motorola sub-managers. Freescale may, at its discretion, select other individuals to serve
in these capacities during the term of this Agreement.  
  
 8. Proprietary Rights; Software. 
  
 (a) Third-Party Software. In addition to the consideration set forth elsewhere herein, Freescale shall also pay any amounts that are required to be paid to any licensors of software that is used by Motorola in connection with the
provision of any Transition Services hereunder, and any amounts that are required to be paid to any such licensors to obtain the consent of such licensors to allow Motorola to provide any of the Transition Services hereunder. Subject to the
immediately preceding sentence and the terms of the Separation Agreement, Motorola will use commercially reasonable efforts to obtain any consent that may be required from such licensors in order to provide any of the Transition Services hereunder.

  
 (b) Motorola Software. Any software,
development tools, know-how, methodologies, processes, technologies or algorithms owned by Motorola or its Affiliates and which may during the term of this Agreement be operated or used by Motorola or its Affiliates in connection with the
performance of the Transition Services hereunder will remain the property of Motorola or its Affiliates, as the case may be, and the Company will have no rights or interests therein, except as may otherwise be set forth in the Intellectual Property
License Agreement and/or the Separation Agreement.  
  
 (c) Use of Trademarks. Neither Motorola nor the Company will use or have any rights to the trademarks or service marks of the other without prior written consent to such use other than as provided for in the
Intellectual Property License Agreement. To the extent that such consent is granted, use of such trademarks or service marks shall be in accordance with the guidelines set forth by the Party owning such trademarks or service marks with all proper
indicia of ownership, including those set forth in the Intellectual Property License Agreement. 
  
 9. IT Services. 
  
 (a) While using any data processing or communications services of Motorola (whether or not identified in this Annex A), Freescale
shall and shall cause each of its Affiliates to, adhere in all respects to Motorola’s corporate information policies (including policies with respect to protection of proprietary information, data privacy and other policies regarding the use of
computing resources) as in effect from time to time. 
  
 (b) The Company’s employees may continue to have access to the Motorola Intranet and associated computer applications if they meet the following criteria: (1) such employee is listed in the Freescale LDAP/”core directory” or
any updates thereto and a current list of these employees is available online in a database accessible by Motorola staff and Freescale staff, and a documented process is in place for notification to Motorola of all voluntary and involuntary
separations; (2) the Company has a legitimate business need to access resources on the Motorola Intranet during the term of this Agreement; and (3) the Company employee is bound by a non-disclosure agreement or other binding confidentiality
obligations for the benefit 

  

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of Motorola. The Company’s employee computer and system accounts on the Motorola Intranet that are not required for the transition must be locked. The
Company’s employees that are connected to the Motorola Intranet must continue to adhere in all respects to the security requirements documented in the ISO17799+, SOP E-60, the protection of proprietary information and SOP-E-62, Appropriate Use
of Computer Resources and SOP E-69, Global Data Protection/Privacy Policy or any successor or additional requirements that are provided to Freescale. Freescale shall, and shall cause each of its Affiliates to adhere in particular to security
standards for requiring current antivirus protection active at all times, strong access control for all computer access, no sharing of passwords, no dual connections to the Motorola network and the Internet or other entity networks, and compliance
to the requirements for protection of Motorola confidential proprietary information and intellectual assets/property. ISO17799+ must be followed when connecting the Motorola Intranet to the Company’s network or other non-Motorola networks and
all external connections to the Motorola network require the review and the written approval of Motorola information protection services. Computing assets connected to the Motorola network are subject to monitoring by intrusion detection
instrumentation and are subject to routine vulnerability assessment scans which may occur during connect time. 
  
 (c) Freescale and Motorola will jointly develop mutually acceptable systems conversion plans as soon as reasonably practicable. If
necessary to facilitate such conversion, Motorola agrees to use commercially reasonable efforts to assist Freescale to meet the mutually agreed upon milestones, timelines and resource requirements identified in the final detailed systems conversion
plan. Following this process, the plan will be considered firm and will be used by both Motorola and Freescale to synchronize their own related project efforts. Costs incurred by Motorola in connection with facilitating such conversion will be
considered and treated as a request for Additional Services pursuant to Section 1. Any schedule modifications occurring after the plan is firm will require joint approval by Freescale and Motorola, such approval not to be unreasonably
withheld. 
  
 (d) If the Company increases its
use of Motorola’s CPU and network systems and such increased use contributes to the need for Motorola to purchase additional computing capacity that Motorola will not utilize after final separation, Freescale will be financially responsible for
that computing capacity. Motorola will use commercially reasonable efforts to notify Freescale in advance of capacity issues to allow Freescale to respond and possibly discontinue use of certain Motorola systems in advance of any additional
purchases. Historic usage for the second half of 2003 will serve as the basis from which to measure increases in usage. The need for purchasing additional computing capacity will be subject to the mutual agreement of Motorola and Freescale.

  
 10. No Warranty; Limitation of Liability; Relationship of
Parties. 
  
 (a) No Warranty.
Motorola and Freescale both acknowledge and agree that, except as provided in Section 2.2(a), Motorola has agreed to provide the Transition Services hereunder as an accommodation to the Company and that Motorola makes no representations or
warranties whatsoever, whether express or implied by statute or otherwise, with respect to the Transition Services or any other matters relating to or arising out of this Agreement. 
  

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 (b) Limitation of Liability and Indemnification. 
  
 (i) NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT TO
THE CONTRARY, IN NO EVENT WILL EITHER PARTY OR ANY OF ITS AFFILIATES BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, IN CONNECTION WITH
ANY CLAIMS, LOSSES, DAMAGES OR INJURIES ARISING HEREUNDER, INCLUDING ANNEXES, SCHEDULES OR EXHIBITS HERETO.  
  
 (ii) Except insofar as the claim, demand, suit or recovery relate to Motorola’s breach of this Agreement or Motorola’s gross
negligence, bad faith or intentional misconduct, and notwithstanding anything to the contrary and without limiting the Parties’ indemnification rights set forth in the Separation Agreement, Freescale shall and shall cause its Affiliates to
indemnify and hold harmless Motorola and its Affiliates, and their respective Representatives (collectively, the “Indemnified Party”) from and against any Damages which the Indemnified Party may sustain or incur by reason of any
claim, demand, suit or recovery by any person or entity resulting from acts or omissions committed by Motorola in providing the Transition Services pursuant to instructions from Freescale with respect to such Transition Services. 
  
 (c) Relationship of the Parties. Each Party is and
will remain at all times an independent contractor of the other Party in the performance of all Transition Services hereunder. In all matters relating to this Agreement, each Party will be solely responsible for the acts of its employees and agents,
and employees or agents of one Party shall not be considered employees or agents of the other Party. Except as otherwise provided herein, no Party will have any right, power or authority to create any obligation, express or implied, on behalf of any
other Party nor shall either Party act or represent or hold itself out as having authority to act as an agent or partner of the other Party, or in any way bind or commit the other Party to any obligations. Nothing in this Agreement is intended to
create or constitute a joint venture, partnership, agency, trust or other association of any kind between the Parties or persons referred to herein and each Party shall be responsible only for its respective obligations as set forth in this
Agreement. 
  
 (d) Compliance with Laws.
Each Party will comply with all applicable laws, rules, ordinances and regulations of any governmental entity or regulatory agency governing the Transition Services to be provided hereunder. No Party will take any action in violation of any
applicable law, rule, ordinance or regulation that could result in liability being imposed on the other Party. 
  
 11. General. 
  
 (a) Binding Effect and Assignment. This Agreement binds and benefits the Parties and their respective successors and assigns.
Neither Party may assign any of its rights or delegate any of its obligations under this Agreement without the written consent of the other Party, which consent may be withheld in such Party’s sole and absolute discretion and any 

  

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assignment or attempted assignment in violation of the foregoing shall be null and void; provided, however, that, subject to Section
7(a), Motorola may delegate its duties hereunder to such Affiliates or third parties as may be qualified to provide the Transition Services; and provided further, that Motorola may assign this Agreement in connection with a merger
transaction in which Motorola is not the surviving entity or the same of all or substantially all of its assets. 
  
 (b) Entire Agreement; Amendments. This Agreement and Annex A constitutes the final agreement between the Parties, and is the
complete and exclusive statement of the Parties’ agreement on the matters contained herein. All prior and contemporaneous negotiations and agreements between the Parties with respect to the matters contained herein are superseded by this
Agreement and Annex A. The Parties may amend this Agreement and Annex A only by a written agreement signed by each Party to be bound by the amendment and that identifies itself as an amendment to this Agreement or Annex A.
Annex A may be amended to add Additional Services and to change the terms of any existing Transition by written consent of the Motorola and Freescale working group leads with respect to the particular service area for which they are
responsible, subject to legal and accounting review. 
  
 (c) Force Majeure. In the event that Motorola is delayed in or prevented from performing its obligations under this Agreement, in whole or in part, due to an act of God, fire, flood, storm, explosion, civil
disorder, strike, lockout or other labor trouble, material shortages of utilities, facilities, labor, materials or equipment, delay in transportation, breakdown or accident, any law, order, proclamation, regulation, ordinance, demand or requirement
of any governmental authority, riot, war, acts of terror, rebellion, or other cause beyond the control of Motorola (each a “Force Majeure Event”), then upon written notice to Freescale, (i) the affected provisions and/or other
requirements of this Agreement shall be suspended to the extent necessary during the period of such disability, (ii) Motorola shall have the right to apportion its services in an equitable manner to all users and (iii) Motorola shall have no
liability to the Company or any other party in connection therewith. Motorola shall resume full performance of this Agreement as soon as reasonably practicable following the conclusion of the Force Majeure Event. 
  
 (d) Construction of Agreement. 
  
 (i) Where this Agreement or Annex A states that a
Party “will” or “shall” perform in some manner or otherwise act or omit to act, it means that the Party is legally obligated to do so in accordance with this Agreement or Annex A. 
  
 (ii) The captions, titles and headings included in this
Agreement and Annex A are for convenience only, and do not affect this Agreement’s or Annex A’s construction or interpretation. When a reference is made in this Agreement to an Article or a Section, annex, exhibit or
schedule, such reference will be to an Article or Section of, or a annex, exhibit or schedule to, this Agreement unless otherwise indicated. 
  

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 (iii) This Agreement is for the sole benefit of the Parties hereto and do not, and are
not intended to, confer any rights or remedies in favor of any Person (including any employee or stockholder of Motorola or Freescale) other than the Parties signing this Agreement. 
  
 (iv) The words “including,” “includes,” or “include” are
to be read as listing non-exclusive examples of the matters referred to, whether or not words such as “without limitation” or “but not limited to” are used in each instance. 
  
 (v) Any reference in this Agreement or Annex A to the
singular includes the plural where appropriate. Any reference in this Agreement or Annex A to the masculine, feminine or neuter gender includes the other genders where appropriate. 
  
 (vi) Unless otherwise specified, all references in this
Agreement or Annex A to “dollars” or “$” means United States Dollars. 
  
 (e) Severability. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining
provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each Party remain valid, binding and enforceable. 
  
 (f) Counterparts. The Parties may execute this Agreement in multiple counterparts, each of which
constitutes an original as against the Party that signed it, and all of which together constitute one agreement. The signatures of both Parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email
transmission that includes a copy of the sending Party’s signature is as effective as signing and delivering the counterpart in person. 
  
 (g) Notices. Each Party giving any notice required or permitted under this Agreement will give the notice in writing and use one of
the following methods of delivery to the Party to be notified, at the address set forth below or another address of which the sending Party has been notified in accordance with this Section 11(g): (a) personal delivery; (b) facsimile or telecopy
transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; or (d) pre-paid, United States of America certified or registered mail, return receipt requested.
Notice to a Party is effective for purposes of this Agreement only if given as provided in this Section 11(g) and shall be deemed given on the date that the intended addressee actually receives the notice.  
  

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	 If to Motorola:
	  	 with a copy to:

		
	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Chief Financial Officer
 Facsimile: 847.576.1402
	  	 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: General Counsel
 Facsimile: 847.576.3628

		
	 	  	 And

		
	 	  	 Motorola, Inc.
 1500 W. Dundee
 Arlington Heights, Illinois 60004
 Attention: Chuck Kmoch
 Facsimile: 847.761.1499

		
	 If to Freescale:
	  	 with a copy to:

		
	 Freescale Semiconductor, Inc.
 6501 William Cannon Drive
 Austin, Texas 78737
 Attention: Chief Financial Officer
 Facsimile: 512.895.8696
	  	 Freescale Semiconductor, Inc.
 7700 West Parmer Lane
 Austin, Texas 78729
 Attention: General Counsel
 Facsimile: 512.996.7697

		
	 	  	 And

		
	 	  	 Freescale Semiconductor, Inc.
 1300 North Alma School Road
 Chandler, Arizona 85224
 Attention: Rick O’Daniels
 Facsimile: 480.814.3175

  
 (h)
Nonwaiver. The Parties may waive a provision of this Agreement or Annex A only by a writing signed by the Party intended to be bound by the waiver. A Party is not prevented from enforcing any right, remedy or condition in the
Party’s favor because of any failure or delay in exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the Party specifically waives the same in writing. A written waiver given for one matter or
occasion is effective only in that instance and only for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a Party’s rights and remedies in this Agreement is not
intended to be exclusive, and a Party’s rights and remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity. 
  
 (i) Confidentiality. Subject to the terms of the
Separation Agreement, each Party shall cause each of its Affiliates and each of their officers, directors, employees, agents, representatives, successors and assigns to hold all information relating to the business of the other Party disclosed to it
by reason of this Agreement confidential and will not disclose any of such information to any party unless legally compelled to disclose such information; provided, however, that to the extent that either Party may become so legally
compelled such Party may only disclose such information if it shall first have used reasonable efforts to, and, if practicable, shall have afforded the other Party the opportunity to obtain, an appropriate protective order or 

  

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other satisfactory assurance of confidential treatment for the information required to be so disclosed. 
  
 (j) Governing Law. The internal laws of the State of
Delaware (without reference to its principles of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement, and each of the annexes, schedules or exhibits hereto (whether arising
in contract, tort, equity or otherwise). 
  
 [This space
intentionally left blank] 
  
 *    
*     *     *     * 
  

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 IN WITNESS WHEREOF, each of the Parties have caused this Agreement to be executed by their duly
authorized representatives as of the date and year first set forth above. 
  

			
	MOTOROLA, INC.
		
	By:	 	 /s/ David W. Devonshire

	 Name:
	 	 David W. Devonshire

	 Title:
	 	Executive Vice President and Chief Financial Officer
	
	FREESCALE SEMICONDUCTOR, INC.
		
	By:	 	 /s/ Alan Campbell

	 Name:
	 	 Alan Campbell

	 Title:
	 	Senior Vice President and Chief Financial Officer

  

 12Semiconductor Purchase Agreement

 EXHIBIT 10(g) 
  
 SEMICONDUCTOR PURCHASE AGREEMENT 
  
 This Semiconductor Purchase Agreement, its Supplement and Attachments (collectively “Agreement”), effective
as of April 4, 2004 (the “Effective Date”), is by and between Motorola, Inc., a Delaware corporation, acting through its Personal Communications Sector and the iDEN Subscriber Group of its Global Telecom Solutions Sector, or their
successor organizations within Motorola (“Motorola”) and Freescale Semiconductor, Inc., a Delaware corporation, acting through its wireless and mobile systems group or its successor group within Freescale
(“Freescale”). 
  
 RECITALS 
  
 A. Freescale is in the business of designing and manufacturing semiconductor and related
software products. 
  
 B. Motorola desires to purchase products from Freescale,
and Freescale desires to sell products to Motorola in accordance with the terms and conditions of this Agreement. 
  
 AGREEMENT 
  
 1.
PRODUCTS. 
  
 1.1 Sale of Products. This Agreement governs all
product purchases made by Motorola from Freescale. Subject to the terms of this Agreement, Freescale will sell to Motorola, and Motorola will buy from Freescale hardware, software, or a combination of hardware and software (collectively
“Products”). Subject to Section 6 of Attachment A, Freescale will not be required to sell any Products that have been discontinued for manufacture or sale, or which have otherwise become unavailable, or for which the sale
would cause Freescale to be in violation of pre-existing contracts or any applicable laws. 
  
 1.2 Standard and Special Products. For the purposes of this Agreement, “Standard Product(s)” means any Product that Freescale is selling to Motorola and to other customers, where
Freescale’s sales to other customers exceed 30% of its total sales of that Product in any 90 day period during the term of this Agreement. Once a Product becomes a Standard Product, it remains a Standard Product. “Special
Product” means a non-standard, custom, semi-custom, special product, or product unique to a customer, as such categories are defined by Freescale. 
  
 1.3 Purchase Commitment Terms. Purchase Commitments, adjustment mechanisms, conditions, and other terms governing Purchase Commitments are set forth in the
attached Purchase Commitment Supplement. 
  
 1.4 Development
Agreements. The Parties acknowledge their intent to negotiate and execute, from time to time, Development Agreements setting forth terms for the development of certain Products. Development Agreements will address matters such as Product
specifications, development schedules and milestones, the parties’ intended Product classification (Standard or Special), deliverables, NRE, pricing, license terms, IP ownership and penalties. 
  
 2. PRICES. Motorola will receive Product pricing in accordance with the
process set forth in Attachment A. 
  
 3. PURCHASE ORDERS.

  
 3.1 General. Motorola and Freescale will exchange forecasting,
ordering, and order acknowledgment data through either (i) the Schedule Sharing Program utilized by the Parties as of the Effective Date, as further described in Attachment B, or as mutually agreed by the parties from time to time, or (ii)
through the use of a mutually agreed written purchase order and acknowledgment system. 
  
 3.2 Authorized Purchasers. Motorola authorizes its Affiliates to submit and enter into purchase orders with Freescale under the terms of this Agreement without any further authorization from Motorola. Purchases by these parties will
be credited against Purchase Commitments in this Agreement. “Affiliates” means corporations or other entities controlled by, or under the common control of a party. A corporation or other entity is controlled by a party if more than
50% of the voting stock or other ownership interest of the corporation or entity is owned by such party. For the purposes of this Agreement, Freescale will not be considered an Affiliate of Motorola. 
  

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 3.3 Government Orders. If Motorola incorporates Products into products that Motorola sells to the U.S. government,
Freescale makes no representations, certifications, or warranties whatsoever about compliance with acquisition statutes or regulations, except Freescale will comply with the clauses applicable to subcontracts for commercial items as set forth in
Attachment B-1. If Motorola sells such products to any other public entity (whether state, local or international), or to a prime contractor or subcontractor of these entities, Motorola remains solely and exclusively liable for compliance
with all acquisition statutes and regulations. Except as expressly provided in this section and Attachment A-1, Freescale makes no representations, certifications, or warranties whatsoever about compliance with acquisition statutes and
regulations, including, without limitation, those that may relate to pricing, quality, origin or content. 
  
 3.4 Delivery. Freescale will use commercially reasonable efforts to deliver Products pursuant to a mutually agreeable schedule. Notwithstanding anything to the contrary in this Agreement, if Freescale is
required to allocate Product under 2-615 of the Uniform Commercial Code, Freescale may adopt an equitable plan of allocation, taking into consideration the percentage of volume purchased by Motorola for specific Products affected by the plan, and
adjust delivery schedules accordingly. Except as otherwise expressly provided, Motorola will not be entitled to any price reduction or other remedy under this Agreement or otherwise as a result of any plan of allocation or adjusted delivery schedule
adopted by Freescale as a result of such Product allocation. 
  
 4.
TERM & TERMINATION. 
  
 4.1 Term. Unless earlier
terminated in accordance with this Section, this Agreement will terminate on December 31, 2006. Following the initial term, this Agreement will automatically extend for additional one year terms unless either party notifies the other in writing at
least 60 days before the next anniversary of the Effective Date of its election not to extend the term. This Agreement may be terminated exclusively in accordance with the terms of this Section. 
  
 4.2 Immediate Termination for Cause. Either party may immediately terminate this
Agreement by notifying the other party of the termination in writing if the other party becomes insolvent or bankrupt or admits its inability to pay its debts as they mature, or makes an assignment for the benefit of its creditors, or ceases to
function as a going concern or to conduct its operations in the normal course of business. 
  
 4.3 Termination for Cause. If either party breaches this Agreement in any manner (other than as set forth in Section 4.2), the other party may terminate this Agreement by providing written notice to the other
party of the occurrence and nature of the breach. The breaching party will have 10 days from the date it receives notice to cure payment breaches, and 30 days from the date it receives notice to cure all other breaches, after which time, this
Agreement automatically terminates upon written notice from the non-breaching party. The non-breaching party must provide such termination notice within 30 days after the expiration of the relevant cure period. 
  
 4.4 Effect of Termination. 
  

	 	(A)	Freescale Termination. Upon the termination of this Agreement by Freescale pursuant to Sections 4.2 or 4.3, Freescale may cancel, at its option, any or all acknowledged
orders, and Motorola will be liable for order cancellation charges as provided in Section 5. Further, within 30 days after termination, Motorola will furnish to Freescale a certificate certifying that the original and all copies of the Licensed
Programs and derivative versions thereof, in whole or in part and in any form, have been destroyed. End user licenses granted under Section 21.2(B) prior to termination survive. 

  

	 	(B)	Motorola Termination. Upon the termination of this Agreement by Motorola pursuant to Sections 4.2 or 4.3, Freescale (i) will pay Motorola an amount equal to the amount, if
any, paid by Motorola to Freescale for work not performed by Freescale, and (ii) grant manufacturing rights in accordance with Section 4.5. The remedies set forth in this 4.4(B) are Freescale’s sole liability for termination by Motorola.

  

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 4.5 Manufacturing Rights. Upon termination of this Agreement by Motorola pursuant to Sections 4.2 or 4.3, in
addition to its rights under Section 4.4, provided Freescale has not been able to cure or establish plans to cure the breach within 30 days from the date it receives notice of the breach, then Freescale will use commercially reasonable efforts to
assist Motorola to establish an alternate source for Products that are sole sourced, including the following: 
  

	 	(A)	Freescale will provide design RTL for the Products to Motorola, with a limited right to sublicense the design RTL for the Products to mutually acceptable third party semiconductor
manufacturers, solely for the purpose of manufacturing Products for Motorola; 

  

	 	(B)	Freescale and Motorola will work in good faith to establish royalty-free licensing terms for Freescale circuit related patents necessary for the acceptable third party semiconductor
manufacturer to manufacture the sole source Products for Motorola in accordance with the design RTL. Freescale and the acceptable third party semiconductor manufacturer will also work in good faith to establish royalty-free licensing terms, for
Freescale process related patents and Freescale process know how necessary for the acceptable third party semiconductor manufacturer to manufacture sole source Products for Motorola; and 

  

	 	(C)	Freescale will provide Motorola with contact names to assist Motorola in their pursuit of licensing technologies that are not Freescale intellectual property but integrated into
Motorola sole source Products being supplied by Freescale. 

  
 If
Freescale is able to cure the breach within 90 days from the date Freescale receives notice of the breach, then the rights granted to Motorola under this paragraph during the breach period will terminate, and Freescale will compensate Motorola for
direct costs incurred by Motorola during the breach period related to Motorola’s attempts to manufacture the affected Products with a third party semiconductor manufacturer. 
  
 4.6 Surviving Terms. Sections 4.4, 4.5, and 10 through 23 will survive termination of this Agreement. 
  
 5. ORDER CANCELLATION AND RESCHEDULING. Motorola may cancel or reschedule
orders for Products in accordance with Attachment B. 
  
 6.
MINIMUM ORDER. The Parties may mutually establish commercially reasonable minimums for orders and deliveries under this Agreement. The minimum order size for Products sold in reels is one reel. The minimum order/minimum delivery
will be in multiples of MPQ (Multiple Package Quantity) or one POQ (Preferred Order Quantity). 
  
 7. FORCE MAJEURE. Neither party will be liable for any delay or non-performance of its obligations (except for payment obligations) under this Agreement resulting from a “Force Majeure
Event”. “Force Majeure Event” means an event that is: (1) beyond the reasonable control of the party claiming a Force Majeure Event, (2) not reasonably foreseeable, (3) not due to the fault or negligence of the party claiming a
Force Majeure Event, and (4) not capable of being overcome without unreasonable expense. The party claiming a Force Majeure Event will notify the other party immediately upon learning of the likelihood or existence of the Force Majeure Event. The
party claiming a Force Majeure Event must exercise commercially reasonable efforts to mitigate the effect of the Force Majeure Event. A party impacted by a Force Majeure Event will be entitled to an equitable adjustment in the performance of its
obligations that were excused by the Force Majeure Event. 
  
 8.
DELIVERY TERMS. All deliveries will be made F.C.A. nearest airport or seaport to Freescale’s applicable manufacturing or storage facility (Incoterms 2000), with title and risk of loss passing to Motorola at that point. Each
delivery will be separately invoiced. 
  
 9. PAYMENT TERMS.
During the first two years of the term of this Agreement, Motorola will pay each invoice within 30 days from the date Freescale issues the invoice to Motorola. Prior to the end of the second year of the term, the parties will mutually determine
payment terms that will be applicable for the third year of the term and thereafter. 
  
 10. UNAUTHORIZED APPLICATIONS. 
  
 10.1 Anti-Personnel
Landmines. Products are not intended or authorized for use in anti-personnel landmines, and Motorola will not use Products for this purpose. Upon request from Freescale, Motorola will furnish a written certification that (i) Motorola does not
use Products in anti-personnel landmines, and (ii) to Motorola’s actual knowledge, without a duty to investigate, Motorola’s customers do not use Products in anti-personnel landmines. 
  
 10.2 Critical Applications. Products are not intended or authorized for use in
products surgically implanted into the body, for life support or for other products for which a Product failure could cause personal injury or death, however the 

  

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parties agree that wireless telephony products are not considered products for which a Product failure could cause personal injury or death. If Motorola or
Motorola’s customers use or permit the use of Products for these unintended or unauthorized uses, Motorola will fully indemnify Freescale, its officers, employees, and distributors, from all liability related to such use, including
attorneys’ fees and costs. 
  
 11. RESALE RESTRICTIONS.
Motorola will not resell Products, except (i) as integrated into a product sold by Motorola that contains substantial value added circuitry or software (including but not limited to assembled radio boards), (ii) to third party service centers for
repair of such products, or (iii) to subcontractors manufacturing products on behalf of Motorola, exclusively for inclusion in products sold back to Motorola. Freescale may buy back Standard Product at a price equal to the Product price paid by
Motorola, minus a 20% restocking charge. If Freescale elects not to buy back that Standard Product, Motorola may resell that Product. 
  
 12. EXPORT/REEXPORT. Neither party will export, re-export, resell, ship or divert or cause to be exported, re-exported, resold, shipped or diverted,
directly or indirectly, any Product or technical information or licensed programs furnished hereunder or the direct product of this technical information or licensed programs to any country for which the United States Government or any agency
thereof at the time of export or re-export requires an export license or other governmental approval, without first obtaining this license or approval. 
  
 13. LIMITATION OF LIABILITY. EXCEPT FOR PERSONAL INJURY, AND EXCEPT FOR THE LIMITED LIABILITIES OTHERWISE PROVIDED IN SECTIONS 4.4, 14, 15, 16, 20,
AND THE PURCHASE COMMITMENT SUPPLEMENT, THE PARTIES’ TOTAL LIABILITY, WHETHER FOR BREACH OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, IS LIMITED TO THE PRICE OF THE PARTICULAR PRODUCTS SOLD HEREUNDER WITH RESPECT TO
WHICH LOSSES OR DAMAGES ARE CLAIMED. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES. 
  
 14. WARRANTY. 
  
 14.1 General. Except as provided in Section 14.5 and 14.6, Freescale warrants that its Products sold hereunder will, at the time of shipment, be (i) free from defects in material and workmanship, (ii) will
conform to Freescale’s published or approved specifications (“Specifications”), including all mutually agreed production test specifications that are included within the Specifications, and (iii) will be new and unused. If
Products are not as warranted, Freescale will, at its option and as Motorola’s exclusive remedy, either refund the purchase price, repair the Products, or replace the Products with the same or equivalent Products that meet this warranty.
Motorola must obtain a Return Material Authorization (“RMA”) number and return nonconforming Products to Freescale’s designated facility, freight and insurance paid, within thirty 30 days of Motorola’s receipt of the RMA
number. If Products are nonconforming, Freescale will reimburse Motorola’s reasonable transportation and insurance charges for return of Products. This limited warranty will not apply to any defects caused because the Products were subjected to
improper testing, assembly, mishandling or misuse by Motorola or other third parties. This warranty will not be expanded, and no obligation or liability will arise, due to technical advice or assistance, qualification or testing data, computerized
data, facilities or service Freescale may provide in connection with Motorola’s purchase. Upon request from Motorola, Freescale will discuss and attempt to resolve technical warranty issues directly with subcontractors manufacturing products on
behalf of Motorola and those subcontractors may obtain an RMA number directly from Freescale, however the warranty rights extend only to Motorola, and any warranty remedies will be negotiated directly between Motorola and Freescale. 
  
 14.2 Limitations. THIS WARRANTY EXTENDS TO MOTOROLA ONLY AND CANNOT BE ASSIGNED BY
MOTOROLA. FREESCALE WILL NOT ACCEPT WARRANTY RETURNS DIRECTLY FROM MOTOROLA’S CUSTOMERS. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND THE WARRANTY
AGAINST INFRINGEMENT SPECIFIED IN THE UNIFORM COMMERCIAL CODE. ALL OTHER WARRANTIES ARE EXPRESSLY DISCLAIMED. 
  
 14.3 Time Period. Except as provided in Sections 14.4, 14.5 and 14.6, Products are warranted for the longer of (i) a period of three (3) years from date of shipment, or (ii) for the same time period as
specified in Motorola’s standard warranty, provided that Motorola warrants its product in writing and extends such warranty to its customers at no additional charge. 
  

 Page 4 

 14.4 Time Period for Stand-Alone Software. Stand-alone software is warranted for a period of 90 days from the date
Freescale first ships the single copy or Master Copy of the software to Motorola. 
  
 14.5 Time Period for Die and Wafers. Freescale warrants that die or wafers have, at shipment, been subjected to electrical test/probe and visual inspection to assure lot acceptability under Freescale’s specifications or
specifications accepted by Freescale and are warranted for a period of 6 months from date of shipment. This limited warranty will not apply to any defects caused because the die or wafers were improperly removed from their original shipping
container or subjected to testing or operational procedures not specifically approved by Freescale in writing to Motorola. 
  
 14.6 Products Provided “AS IS”. Development Products, including without limitation prototypes and pre-production samples (whether or not paid for by
Motorola) are provided “AS IS”. 
  
 15. INTELLECTUAL PROPERTY
INDEMNIFICATION. 
  
 15.1 Indemnity. Subject to the limitations and
exclusions stated below, Freescale will defend, at Freescale’s expense, any Claim against Motorola, and will indemnify Motorola for costs and damages (including reasonable attorneys’ fees) finally awarded in the Suit.
“Suit” means a lawsuit based on a Claim. For purposes of this Section, “Claim” means a claim that a Product furnished by Freescale under this Agreement directly infringes a valid patent or copyright, or
misappropriates a trade secret. 
  
 15.2 Required Procedures. Freescale
will have no obligation to defend or indemnify Motorola unless Motorola: 
  

	 	(A)	promptly notifies Freescale in writing as soon as reasonably practicable after Motorola first becomes aware of the Claim, but in no event later than 30 days after Motorola first
receives notice of the Claim; and 

  

	 	(B)	gives Freescale sole control of the Claim and all requested assistance for resolving the Claim or defending the Suit. 

  
 Freescale will not be liable for the settlement of a Claim made without Freescale’s
prior written consent unless Freescale breaches its duty to defend hereunder. If any suit against Motorola involves a Claim as well as other claims against Motorola, Freescale will nonetheless be fully responsible for defending, indemnifying and
holding Motorola harmless from the Claim(s), and will provide reasonable cooperation to Motorola’s counsel with respect to the other claims asserted in such suit. If a Claim is asserted prior to completion of delivery of the Product, Freescale
may decline to make further shipments. 
  
 15.3 Exclusions. Freescale will
have no obligation to defend or indemnify Motorola if: 
  
 (A)
Motorola or any third party has altered the Products, and the alleged infringement would not have occurred but for this alteration; 
  
 (B) Motorola or any third party has combined the Products with any other products or elements not furnished by Freescale, and the alleged infringement
would not have occurred but for this combination; 
  
 (C) the
Products were designed or manufactured in accordance with Motorola’s designs, specifications, or instructions, and the alleged infringement would not have occurred but for these designs, specifications, or instructions; or 
  
 (D) the Products infringe Essential Patent Claims for which Freescale does
not have pass-through license rights that if extended to Motorola would avoid such infringement and for which Motorola agrees to incur Freescale’s obligation of payment or consideration owed to a third party for extending such pass-through
license rights to Motorola. “Essential Patent Claims” means those claims of a third party patent to the extent that infringement of such claims can not be avoided in remaining compliant with Wireless Standards, including optional
implementations thereof provided for in the Wireless Standards, on technical but not commercial grounds, taking into account normal technical practice and the state of the art generally available at the time of standardization. “Wireless
Standards” means: (a) all cellular communication technical specifications adopted as a standard by either a standards development organization (SDO) or a major operator of public subscription systems for 

  

 Page 5 

 
in-country requirements (e.g., frequency spectrum availability, interconnection with preexisting telephony networks, etc.), as well as various adjunct
protocols to the extent incorporated into such standards, including, but are not limited to, those technical specifications for digital radiotelephone service: (i) promulgated by ETSI and known as the GSM, Pan-European Digital Cellular
radiotelephone service (including Personal Communications Network services, presently known as DCS1800 and in the United States PCS1900); (ii) promulgated in the United States by the Telecommunications Industry Association/Electronic Industries
Associates (TIA/EIA) and presently known as AMPS (Advanced Mobile Phone System), NAMPS (Narrowband AMPS), TDMA Cellular/PCS - Radio Interface Interim Standards IS-136, IS-137 and IS-138 (including IS-54, IS-55 and IS-56 and PCS 1900 standards
JSTD-009, JSTD-010 and JSTD-011); (iii) promulgated by ARIB (formerly RCR) and known as PDC (Personal Digital Cellular); (iv) promulgated by the TIA and known as IS-95 IS-95B, RTT MC 1X and 1X Plus and 1Xtreme Code Division Multiple Access services;
(v) third generation (3G) cellular standards currently under development and known by such designations including 3GPP, UMTS, WCDMA and CDMA2000; and (vi) fourth generation (4G) cellular communication standards; and (vii) various derivations thereof
that do not fundamentally alter the character thereof (e.g., wireless air-interface, framing structure, control, call set-up and connection management); and (b) all technical specifications promulgated or currently under development and known as
IEEE 802 wireless standards (including any and all international versions thereof). “Wireless Standards” expressly excludes technical specifications for semiconductor processes or semiconductor devices issued by any public or private
standards body whereby patent rights are customarily asserted against, and licenses are customarily granted (and royalties paid) for, the manufacture, use, sale or import of such semiconductor processes or semiconductor devices. 
  
 15.4 Injunctions. If the use or permitted resale of any Product is enjoined as a
result of a Suit, Freescale, at Freescale’s option, and at no expense to Motorola, will: (i) obtain for Motorola the right to use or sell the Product; (ii) substitute an equivalent product(s) reasonably acceptable to Motorola and extend this
indemnity to that product(s); or (iii) accept the return of the Product and refund Motorola the purchase price paid for the Product, less a reasonable charge for prior use, if any. 
  
 15.5 Limitations on Payable Damages. For each Claim, Freescale’s total liability for damages under this Section 15 will not
exceed 50% of the revenue derived by Freescale from sales or license to Motorola of the Affected Product plus attorney fees and costs related to such Claim. The term Affected Product means all Products that are subject to the Claim or any related
settlement. 
  
 15.6 Entire Liability. THIS SECTION CONTAINS (I)
FREESCALE’S ENTIRE LIABILITY AND ALL OBLIGATIONS RELATED TO INTELLECTUAL PROPERTY INFRINGEMENT OR MISAPPROPRIATION, AND (II) MOTOROLA’S EXCLUSIVE REMEDIES AGAINST FREESCALE FOR INTELLECTUAL PROPERTY INFRINGEMENT OR MISAPPROPRIATION. THESE
REMEDIES ARE PROVIDED IN LIEU OF ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTY AGAINST INFRINGEMENT SPECIFIED IN THE UNIFORM COMMERCIAL CODE. 
  
 16. PRODUCT LIABILITY INDEMNIFICATION. 
  
 16.1 Freescale will defend, at its expense, any suits against Motorola based upon a claim by a third party that a material defect in any
Product furnished by Freescale under this Agreement caused death or bodily injury to any person and to pay costs and damages finally awarded based upon such claim in any such suit; provided that Freescale is: (1) promptly notified by Motorola in
writing as soon as reasonably practicable after Motorola first became aware of the claim, but in no event later than 15 days after the date on which Motorola first received notice of such claim; and (2) at Freescale’s request and expense, given
sole control of the suit and all requested assistance for defense of same. Freescale will not be liable for any settlement made without its written consent. 
  
 16.2 This indemnity does not extend to any suit based upon death or bodily injury arising from Product(s) furnished by Freescale that are: (1) altered in any way by
Motorola or any third party if the alleged death or bodily injury would not have occurred but for such alteration; (2) combined with any other products or elements not furnished by Freescale if the alleged death or bodily injury would not have
occurred but for such combination; or (3) designed and/or manufactured in accordance with Motorola’s designs, specifications, or instructions if the alleged death or bodily injury would not have occurred but for such designs, specifications or
instructions. 
  

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 16.3 THE INDEMNITY PROVIDED IN THIS SECTION IS THE SOLE, EXCLUSIVE, AND ENTIRE LIABILITY OF FREESCALE AND THE REMEDIES
PROVIDED IN THIS SECTION WILL BE MOTOROLA’S EXCLUSIVE REMEDIES AGAINST FREESCALE FOR CLAIMS BY THIRD PARTIES FOR DEATH OR BODILY INJURY AND IS PROVIDED IN LIEU OF ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY IN REGARD THERETO. 
  
 17. CONFIDENTIALITY. All materials and Products furnished by Freescale
or Motorola and identified as containing confidential information must be held in confidence by the recipient using at least the degree of care the recipient uses for its own confidential information, but no less than reasonable care. Recipient may
not disclose such materials or confidential information except to employees or agents who require use of the materials in the performance of their duties. This Agreement and its contents are hereby identified as confidential information.
Confidential information does not include information in the public domain, information known to the recipient prior to any disclosure hereunder, information developed independently of any disclosure hereunder, information later communicated to the
recipient by another without obligation of confidence, or information communicated by the owner to a third party free of any obligation of confidence. The recipient will hold all confidential information and materials containing confidential
information in confidence for five (5) years after receipt. If the terms of this section conflict with any confidentiality or nondisclosure terms agreed to by the parties in a separate written agreement governing this transaction, the terms of such
separate agreement will control. 
  
 18. USE OF NAME OR
TRADEMARK. Nothing contained in this Agreement may be construed as conferring any rights to use in advertising, publicity, or other activities any name, trademark, or other designation of either party hereto, including any
contraction, abbreviation, or simulation of any of the foregoing without the express written approval of the other party. 
  
 19. DISTRIBUTOR PARTICIPATION. When Motorola wishes to place order(s) for Products covered under this Agreement with any Freescale-authorized
distributor (“Distributor”), subject to that Distributor’s approval and applicable minimum order requirements, if any, Freescale will review the requirements together with the Distributor’s current cost for the required
devices and determine whether the price stated in this Agreement may be made available to this Distributor. Motorola and Distributor may then separately negotiate price and other terms and conditions of sale for these Products. Motorola acknowledges
that Distributor is an independent business and is free to set its own prices, terms and conditions of sale, which may include a markup to cover the cost of its value-added services. Freescale makes no representation about the prices, terms and
conditions of sale agreed upon by Distributor and Motorola. The terms of this section apply to Motorola’s U.S. domestic divisions and subsidiaries only. Freescale will evaluate distributors outside the domestic United States on a case-by-case
basis. 
  
 20. MOTOROLA INDEMNITY. 
  
 20.1 Indemnity. Subject to the limitations and exclusions stated below, Motorola will
defend, at Motorola’s expense, any Claim against Freescale, and will indemnify Freescale based on Motorola’s purchases of Products for costs and damages (including reasonable attorneys’ fees) finally awarded in the Suit.
“Suit” means a lawsuit based on a Claim. For purposes of this Section, “Claim” means claims or liabilities (including but not limited to those related to property damage, personal injury or death), costs, damages
and expenses (including but not limited to reasonable attorney’s fees) directly or indirectly arising out of, resulting from, or associated with, regardless of any alleged negligence or misconduct by Freescale relative to the design or
manufacture of these Products, either of the following events: 
  
 (A) if Motorola purchases or uses Products in violation of this Agreement, or for any unintended or unauthorized application, or any application that violates any applicable law, rule or regulation, and such Suit would not have occurred but
for such violation, unintended or unauthorized application or any application that violates any applicable law, rule or regulation, or 
  
 (B) if any Product made to Motorola’s designs, specifications or instructions directly infringes a valid patent or copyright, or misappropriates a
trade secret, and such infringement would not have occurred but for such designs, specifications or instructions. 
  
 20.2 Required Procedures. Motorola will have no obligation to defend or indemnify Freescale unless Freescale: 
  
 (A) promptly notifies Motorola in writing as soon as reasonably practicable
after Freescale first becomes aware of the Claim, but in no event later than 30 days after Freescale first receives notice of the Claim; and 
  

 Page 7 

 (B) gives Motorola sole control of the Claim and all requested assistance for resolving the Claim or
defending the Suit. 
  
 Motorola will not be liable for the settlement of a Claim
made without Motorola’s prior written consent, unless Motorola breaches its duty to defend hereunder. If any suit against Freescale involves a Claim as well as other claims against Freescale, Motorola will nonetheless be fully responsible for
defending, indemnifying and holding Freescale harmless from the Claim(s), and will provide reasonable cooperation to Freescale’s counsel with respect to the other claims asserted in such suit. 
  
 20.3 Limitation on Payable Damages. For each Claim, Motorola’s total liability
for damages under this Section 20 will not exceed 50% of the revenue derived by Freescale from sales or license to Motorola of the Affected Product plus attorney fees and costs related to such Claim. The term Affected Product means all Products that
are subject to the Claim or any related settlement. 
  
 20.4 Entire
Liability. THIS SECTION CONTAINS (I) MOTOROLA’S ENTIRE LIABILITY AND ALL OBLIGATIONS RELATED TO THE INDEMNIFIED CLAIMS, AND (II) FREESCALE’S EXCLUSIVE REMEDIES AGAINST MOTOROLA FOR THE INDEMNIFIED CLAIMS. THESE REMEDIES ARE PROVIDED IN
LIEU OF ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTY AGAINST INFRINGEMENT SPECIFIED IN THE UNIFORM COMMERCIAL CODE. 
  
 21. LICENSED PROGRAMS. In the absence of a separate software agreement between Motorola and Freescale, the following
terms and conditions apply to any software or firmware (software embedded in Products) in all forms, including any documentation (“Licensed Programs”) provided by Freescale: 
  
 21.1 Title to Licensed Programs delivered under this Agreement remains vested in Freescale or
Freescale’s licensor and cannot be assigned or transferred. Motorola will not reverse engineer, disassemble, decompile, or modify any Licensed Program or any portion thereof, provided that if Motorola violates this restriction, Motorola hereby
irrevocably assigns to Freescale all right, title and interest to any modifications to a Licensed Program. Notwithstanding the foregoing, Motorola may modify Licensed Programs solely to interface the Licensed Programs with Motorola’s software,
and in such instances those modifications are not subject to the assignment obligations set forth in the previous sentence. Motorola will reproduce all of Freescale’s copyright notices and other proprietary legends on copies of Licensed
Programs. 
  
 21.2 At Freescale’s discretion, Freescale may provide a single
copy of the Licensed Program to Motorola (a “Master Copy”) or may provide individual copies of the Licensed Program to Motorola in a number equal to the number of copies purchased by Motorola. 
  
 (A) Use and Reproduction Rights. If Freescale provides a Master Copy
to Motorola, then Freescale grants to Motorola a non-exclusive license to reproduce the number of copies purchased by Motorola and to use these copies of the Licensed Program. If Freescale provides individual copies of the Licensed Program to
Motorola, then Freescale grants to Motorola a non-exclusive license to use these individual copies of the Licensed Program and to make one archival copy of this Licensed Program. 
  
 (B) Distribution Rights. Freescale grants to Motorola a non-exclusive license to distribute the number of copies of
the Licensed Programs authorized above in Section 21.2(A) solely in conjunction with Motorola’s subsequent sale of Motorola’s products, and for execution on Freescale processors. Unless specifically authorized by Freescale in writing, the
number of copies distributed must correspond on a one to one basis with the number of Freescale processors in Motorola’s products. Motorola may grant end user licenses to end customers of Motorola’s products as necessary for end customers
to use such products. 
  
 21.3 Use of Licensed Programs is provided with
RESTRICTED RIGHTS. Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of The Rights in Technical Data and Computer Software clause at DFARS 252.227-7013 or subparagraphs (c)(l)
and (2) of the Commercial Computer Software—Restricted Rights at 48 CFR 52.227-19, as applicable. Manufacturer is Freescale, Inc., 6501 William Cannon Drive West, Austin, TX, 78735. 
  

 Page 8 

 21.4 In the absence of a written agreement between the parties with regard to royalties or other fees associated with a
Licensed Program, whether expressed in a purchase order, order acknowledgment, or separate license agreement, Licensed Programs are provided royalty free. 
  
 22. RESPONSIBILITY FOR EMPLOYEES. The personnel of a party (“visiting party”) will, while on the premises of the other party
(“host party”), comply with the host party’s rules and regulations with regard to safety and security. The host party will provide a written copy of such rules and regulations to the personnel of the visiting party. The
visiting party will have full control over its personnel and will be entirely responsible for their complying with the host party’s rules and regulations. The visiting party will indemnify and hold the host party harmless from any claims or
demands including the costs, expenses and reasonable attorney’s fees on account thereof, that may be made by (i) anyone for injuries to persons or damage to property resulting from the negligent or willful acts or omissions of the visiting
party’s personnel; or (ii) the visiting party’s personnel under Worker’s Compensation or similar laws. The visiting party will defend the host party against any such claim or demand. 
  
 23. GENERAL TERMS AND CONDITIONS. 
  
 23.1 Entire Agreement. This Agreement, including its Purchase Commitment Supplement
and Attachments constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior communications, negotiations, understandings, agreements or representations, either written or oral, between the parties
regarding its subject matter. In the event of any conflict between terms of any of the following documents, the order of precedence will be: 
  

	 	(A)	Purchase Commitment Supplement and Attachments to this Agreement; 

  

	 	(B)	The body of the Agreement; and 

  

	 	(C)	Any other document related to Product purchases by Motorola from Freescale, whether asserted electronically or otherwise. 

  
 23.2 Succession and Assignment. This Agreement binds and inures to the benefit of the
parties and their permitted successors and assigns. Neither party may assign this Agreement in whole or in part, or any of its rights, interests, duties or obligations under this Agreement, without the prior written approval of the other party.

  
 23.3 Counterparts. This Agreement may be executed in one or more
original counterparts, all of which together will constitute one agreement, and facsimile signatures will have the same effect as original signatures. 
  
 23.4 Headings. The section headings contained in this Agreement are for convenience only and will not affect the meaning or interpretation of this Agreement.

  
 23.5 Notices. All notices and other communications under this Agreement
will be made in writing, and will be effective when received at the following addresses: 
  

			
	 Freescale:
	  	 Office of the President

	 	  	 6501 William Cannon Drive West

	 	  	 Austin, Texas 78735

		
	 With copy to:
	  	 Freescale General Counsel

	 	  	 7700 West Parmer Lane

	 	  	 Austin, Texas 78729

		
	 Motorola:
	  	 PCS Director of Contracts

	 	  	 600 North U.S. Highway 45

	 	  	 Libertyville, Illinois 60048

  
 Either party may change its notice
information upon notice to the other party. 
  

 Page 9 

 23.6 Governing Law. This Agreement will be governed by, construed, and enforced in accordance with the laws of the
State of Delaware as if entered into in that state by citizens of that state to be performed wholly within that state, and without regard to its conflict of laws provision. The 1980 United Nations Convention on Contracts for the international sale
of goods will not apply to this Agreement or any purchase order issued under this Agreement. 
  
 23.7 Amendments and Waivers. No amendment of this Agreement will be valid unless stated in writing and signed by authorized representatives of the parties. No waiver of any default, misrepresentation or
covenant will affect any prior or subsequent default, misrepresentation, or covenant. 
  
 23.8 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions of this Agreement will be unimpaired and the invalid or unenforceable provision will be replaced with a provision that
is valid and enforceable and that comes closest to the parties’ intention underlying the invalid or unenforceable provision. However, if the proposed modification or replacement of the invalid or unenforceable provision is held to deprive a
party of a material benefit, the Agreement will terminate immediately. 
  
 23.9
Construction. Both parties have had adequate opportunity to obtain legal representation and this Agreement reflects arms’ length negotiations. Neither party will be deemed the drafter and no ambiguity in the Agreement will be construed
against either party. 
  
 23.10 Authority. Each party represents and
warrants to the other that: 
  

	 	(A)	it has the authority to enter into this Agreement without any additional approvals or consents, 

  

	 	(B)	the person executing this Agreement on its behalf is duly authorized, and 

  

	 	(C)	to the best of such its knowledge, this Agreement is fully enforceable in accordance with its terms. 

  
 23.11 No Third Party Beneficiaries. This Agreement is for the exclusive benefit of the parties and does not create any rights
enforceable by any third party. 
  

 Page 10 

 23.12 Dispute Resolution. Except for issues arising under Section 3 of Attachment A, or Section 3(B) or 5 of the
Purchase Commitment Supplement, Motorola and Freescale will attempt to settle any claim or controversy arising out of this Agreement through consultation and negotiation in good faith and spirit of mutual cooperation. Disputes will be resolved by
the following process. The dispute will be submitted in writing to a panel of consisting of one senior executive from Motorola and one senior executive from Freescale for resolution. If the executives are unable to resolve the dispute within thirty
(30) days, either party may refer the dispute to mediation, the cost of which will be shared equally by the Parties, except that each party will pay its own attorney’s fees. Within forty-five (45) days after written notice demanding mediation,
the Parties will choose a mutually acceptable mediator. Neither party will unreasonably withhold consent to the selection of the mediator. Mediation will be conducted in New York, New York. If the dispute cannot be resolved through mediation within
three (3) months from the first day of the mediation, either party may submit the dispute to a court of competent jurisdiction. Use of any dispute resolution procedure will not be construed under the doctrines of laches, waiver, or estoppel to
adversely affect the rights of either party. Nothing herein prevents either party from resorting directly to judicial proceedings if the dispute is with respect to intellectual property rights, or interim relief from a court is necessary to prevent
serious and irreparable injury to a party or others. The Parties’ performance under this Agreement will not be suspended during the pendency of any dispute. 
  
 23.13 Injunctive Relief. Freescale acknowledges that any breach of its obligations to (i) meet its divestiture obligations under
Section 8 of Attachment A, or (ii) honor the EOL provisions of Section 6 of Attachment A (the “Supply Obligations”) might cause irreparable harm to Motorola for which Motorola cannot be adequately compensated through
money damages of any type. Accordingly, Freescale agrees that Motorola is entitled to seek injunctive relief to prevent any actual or anticipatory breach of any of the Supply Obligations, and to seek specific performance of the Supply Obligations.
Motorola also will be entitled to make claims for all direct damages incurred as a result of any breach of the Supply Obligations not otherwise permitted under any provisions of this Agreement, and the provisions of Section 13 of this Agreement that
cap damages at the price of the particular products sold with respect to which damages are claimed will not apply to such claims. Motorola must however use commercially reasonable efforts to mitigate damages it incurs as a result of any breach of
the Supply Obligations. 
  
 23.14 Attachments. The following attachments
are hereby made a part of this Agreement: 
  

	 	•	Attachment A – Special Customer Terms 

  

	 	•	Attachment B – Schedule Sharing and Order Terms 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives effective as of the Effective Date. 

 

									
	 FREESCALE SEMICONDUCTOR, INC.
	 	 	 	 MOTOROLA, INC.

					
	By:	 	 /s/ Alan Campbell
	 	 	 	By:	 	 /s/ Thomas J. Lynch

	 	 	(Signature of Authorized Representative)	 	 	 	 	 	(Signature of Authorized Representative)
					
	 Name:
	 	 Alan Campbell
	 	 	 	 Name:
	 	 Thomas J. Lynch

	 	 	(Typed/Printed)	 	 	 	 	 	(Typed/Printed)
					
	 Title:
	 	 Senior Vice President and Chief Financial Officer
	 	 	 	 Title:
	 	Executive Vice President and CEO of Personal Communications Sector
					
	 Date:
	 	 	 	 	 	 Date:
	 	 

  

 Page 11 

 Purchase Commitment Supplement 
 (Semiconductor Purchase Agreement between Motorola and Freescale) 
  
 1. Definitions. 
  
 A. “Motorola PCS 2/2.5G/GSM/GPRS/EDGE Product Families” means any Subscriber Product, the function of which is, or between which certain
interfaces are, substantially standardized in the GSM Standards. 
  
 B. “Motorola PCS 3G/UMTS Product Families” means any Subscriber Product, the function of which is, or between which certain interfaces are, substantially standardized in the UMTS Standards or both the UMTS Standards and the
GSM Standards. 
  
 C. “Baseband Semiconductor
Family” means ICs that perform the core signal processing for GSM/GPRS/EDGE/UMTS protocol stack layers 1, 2 and 3. 
  
 D. “GSM Standards” means any of those technical specifications for digital radiotelephone services: (i) promulgated by ETSI and known as
the GSM, Pan-European Digital Cellular radiotelephone service (including Personal Communications Network Services, presently known in Europe as DCS1800 and in the United States as PCS1900), (ii) promulgated by ETSI and known as the GPRS (General
Packet Radio Service), (iii) promulgated by ETSI and known as EDGE (Enhanced Data rates for GSM Evolution), and (iv) that are various derivations of C(i), C(ii) or C(iii), excluding UMTS Standards, that do not fundamentally alter the character of
any of the foregoing (e.g. wireless air-interface, faming structure, control, call set-up and connection management). 
  
 E. “Motorola IDEN Product Families” means any wireless communication product, including but not limited to portable cellular telephones,
of the IDEN Subscriber Group within Motorola’s Global Telecommunications Solutions Sector, or any successor organization of the IDEN Subscriber Group that sells wireless communication products, including but not limited to portable cellular
telephones. 
  
 F. “Motorola PCS” means
Motorola’s Personal Communications Sector, or any successor organization of the Personal Communications Sector that sells wireless communication products, including but not limited to portable cellular telephones. 
  
 G. “Power Amp (PA) Semiconductor Family” means ICs that
operate in conjunction with RF/IF ICs to amplify transmitted signals along the GSM/GPRS/EDGE/UMTS communication paths. 
  
 H. “Power Management Semiconductor Family” means central ICs that operate in conjunction with other components to perform power
management functions within a handset. 
  
 I. “RF/IF
Semiconductor Family” means ICs that perform the core processing of the RF/IF signals used in the GSM/GPRS/EDGE/UMTS communication paths. 
  
 J. “Subscriber Product” means (i) equipment such as a mobile, transportable or handheld portable unit containing no less than all of the
following components: a display, a battery, plurality of keys or the input device, antenna, RF receiver and controller therefor, or (ii) an assembled unit containing no less than all of the following components: an RF receiver, a controller, and
necessary interface connections. 
  
 K. “UMTS
Standards” means any of those technical specifications for digital radiotelephone services (i) promulgated by ETSI and known as UMTS (Universal Mobile Telecommunications System) or W-CDMA (Wideband Code Division Multiple Access)/UMTS or
IMT-2000 and (ii) that are various derivations of any of G (i) that do not fundamentally alter the character of any of the foregoing (e.g. wireless air-interface, faming structure, control, call set-up and connection management). 
  
 2. Baseband Products Purchase Commitment. 
  
 A. If Freescale is competitive with respect to pricing, timing and features,
then through December 31, 2006, Motorola will purchase from Freescale 100% of Motorola’s total purchases of Baseband Semiconductor Family products 

  

 Page 12 

 
required to manufacture handsets within the Motorola PCS 2/2.5G/GSM/GPRS/EDGE Product Families, the Motorola PCS 3G/UMTS Product Families, and the Motorola
IDEN Product Families (the “Baseband Products”). For the purposes of this Agreement, Motorola’s obligation to purchase Baseband Products through December 31, 2006 is referred to as the “Purchase Commitment.”

  
 B. The parties acknowledge that Motorola utilizes third party
original design manufacturers (“ODMs”) to design and manufacture certain handsets within the Motorola Product Families for resale to Motorola (“ODM Products”). The Purchase Commitment excludes (i) purchases made by
ODMs to manufacture ODM Products, (ii) purchases made by Motorola and resold to either ODMs or contract manufacturers to manufacture ODM Products, or (iii) purchases made by Motorola to enable the manufacture of handsets that are replacements for
ODM Products, provided such replacements are based on ODM Products formerly manufactured by an ODM, do not utilize the Synergy or Moto-Juix software application frameworks, and would be prohibitive to manufacture with respect to cost or time to
market using a Freescale Baseband Product, as compared to either the baseband chipset originally in such ODM Products or the then-currently available replacement for that original chipset. For clarity, if a third party contract manufacturer
manufactures handsets designed by Motorola, in whole or in part, then the Purchase Commitment applies to purchases of Baseband Products for such handsets. During the term of this Agreement, Motorola will continue to use commercially reasonable
efforts to develop products with its ODMs that incorporate Products from Freescale. 
  
 C. The parties acknowledge that Motorola may from time to time acquire third party original equipment manufacturers (“Acquired OEMs”) that manufacture handsets (“Acquired OEM
Products”). The Purchase Commitment excludes purchases made by Motorola to enable the manufacture of Acquired OEM Products either formerly manufactured by or for an Acquired OEM or scheduled to be manufactured, if it would be prohibitive to
either manufacture or change the schedule for manufacturing such Acquired OEM Products with respect to cost or time to market using a Freescale Baseband Product, as compared to either the baseband chipset originally in such Acquired OEM Products or
the then-currently available replacement for that original chipset. 
  
 3.
Development Agreements for Baseband Products. 
  
 A. The
parties will in good faith negotiate a Development Agreement for each Baseband Product required by Motorola during the term of this Agreement. Motorola will design into its Product Families the Freescale Baseband Products listed in the attached
Baseband Schedule to this Supplement, and enter into appropriate Development Agreements within 90 days of the Effective Date of this Agreement. If Motorola identifies any requirement for Baseband Products that is not included in the Baseband
Schedule, then Motorola will promptly notify Freescale and within 30 days the parties will enter into negotiations toward the necessary Development Agreement. If the parties are unable to agree on pricing, timing and features for Baseband Products,
then prior to negotiating more detailed terms and conditions of a required Development Agreement, the parties will escalate those issues for resolution in accordance with Section 4(B) below. 
  
 B. Freescale’s proposal to supply the required Baseband Product must be
competitive with respect to pricing, timing and features. If the parties are unable to reach agreement within 30 days after the commencement of negotiations, the matter will be referred to their respective Chief Executive Officers for resolution. If
the Chief Executive Officers are unable to resolve the matter within 10 days after the referral, either party may submit the matter to mediation by providing written notice to the other party. The parties will cooperate on selection of a mediator
and use best efforts to resolve the matter through the mediation process within 30 days after issuance of the notice requesting mediation. If despite best efforts the parties are unable to resolve the matter through mediation, then either party may
request submission of the matter to a qualified, independent neutral expert experienced in the industry, such as a partner in a certified public accounting firm or other mutually acceptable appraiser (the “Neutral Expert”), by
providing written notice to the other party. Within 10 days after written notice requesting submission to a Neutral Expert, the parties will choose a mutually acceptable Neutral Expert. Neither party will unreasonably withhold consent to the
selection of the Neutral Expert. Within 10 days after the Neutral Expert is selected, Motorola will present evidence to the Neutral Expert in support of its position that Freescale is not competitive with respect to pricing, timing or features. The
Neutral Expert will evaluate but not disclose Motorola’s evidence, and within 7 days of receipt of evidence from both parties, will advise Freescale whether its proposal is not competitive, and the category (i.e. price, timing or features) with
respect to which Freescale is not competitive. Freescale will have 7 days after receipt of the Neutral Expert’s guidance to provide the Neutral Expert with a revised proposal, and the Neutral Expert will determine whether the revised proposal
is competitive with respect to pricing, timing and features. If the Neutral Expert determines that the revised proposal is competitive with respect to pricing, timing and features, it shall serve as the basis for the parties’ contract. If the
Neutral Expert determines that the revised proposal is 

  

 Page 13 

 
still not competitive with respect to pricing, timing and features, Motorola will be free to pursue an alternative supplier for the required product.

  
 4. Conditions to Preserve Purchase Commitment. 
  
 Motorola’s Purchase Commitment obligation is subject to the following
conditions: 
  
 A. Capacity. Freescale will use
commercially reasonable efforts to maintain appropriate capacity to meet Motorola’s forecasted demand for Products. Motorola will use commercially reasonable efforts to provide accurate forecasts. Should Freescale fail to maintain such capacity
or should Motorola’s actual requirements exceed its forecasts, Motorola will be entitled to purchase comparable products from an alternate supplier in such quantities as are required to meet Motorola’s actual requirements, and such
purchases will be excluded from the Purchase Commitment. Should Freescale manage to add additional capacity, Motorola will transition from the alternate supplier’s product to the Freescale Product as soon as commercially reasonable (not to
exceed 16 weeks). If Motorola was required to make contractual commitments to the alternate supplier regarding volume commitments in order to procure an interim supply of Non-Baseband Products, then such contractual requirements will take precedence
over the Purchase Commitment. Motorola will use commercially reasonable efforts to avoid making such contractual commitments. 
  
 B. Delivery. Freescale will meet its delivery obligations under Section 3.4 of the Agreement. Should Freescale fail to deliver any Product pursuant
to mutually agreed delivery schedules on a pervasive basis, Motorola will be entitled to purchase comparable products from an alternate supplier in such quantities as are required to meet the affected delivery schedules, and such purchases will be
excluded from the Purchase Commitment. When Freescale is able to resume timely deliveries, Motorola will transition from the alternate supplier’s product to the Freescale Product as soon as commercially reasonable (not to exceed 16 weeks). If
Motorola was required to make contractual commitments to the alternate supplier regarding volume commitments in order to procure an interim supply of Non-Baseband Products, then such contractual requirements will take precedence over the Purchase
Commitment. Motorola will use commercially reasonable efforts to avoid making such contractual commitments. 
  
 C. Quality. If any Freescale Product becomes subject to an Epidemic Failure, Motorola will be entitled to purchase comparable products from an
alternate supplier in lieu of the Product affected by the Epidemic Failure during the time that Freescale is attempting to cure the Epidemic Failure, and such purchases will be excluded from the Purchase Commitment. Once Freescale can reasonably
demonstrate that it has cured the failure, Motorola will transition from the alternate supplier’s product to the Freescale Product as soon as commercially reasonable (not to exceed 16 weeks). If Motorola was required to make contractual
commitments to the alternate supplier regarding volume commitments in order to procure an interim supply of Non-Baseband Products, then such contractual requirements will take precedence over the Purchase Commitment. Motorola will use commercially
reasonable efforts to avoid making such contractual commitments. 
  
 D. Development Milestones. Freescale will use commercially reasonable efforts to meet its milestones under Development Agreements. As its sole remedy under this Agreement, Motorola will be entitled to terminate a Development
Agreement and enter into a development agreement with another supplier if Freescale fails to meet any milestone under such Development Agreements, and such failure (i) has a material impact on Motorola’s product introduction schedule and (ii)
is not caused by a Motorola delay such as a change in the specification for the Product or a failure by Motorola to meet one of its milestones. The parties may agree to additional remedies in the Development Agreements for failure to meet milestones
in such Agreements. If Motorola enters into such a development agreement with another supplier following the termination of a Development Agreement, purchases made pursuant to such development agreement will be excluded from the Purchase Commitment.
Should Freescale continue the development of a Product after termination of the applicable Development Agreement on an independent basis and develop a Product that meets the specifications, then Motorola will use commercially reasonable efforts,
time permitting, to qualify the Freescale Product and transition from the alternate supplier’s product to the Freescale Product as soon as commercially reasonable (not to exceed 16 weeks). If Motorola was required to make contractual
commitments to the alternate supplier regarding volume commitments in order to get the supplier to enter into the development agreement, then such contractual requirements will take precedence over the Purchase Commitment. Motorola will use
commercially reasonable efforts to avoid making such contractual commitments. 
  
 5. Preferred Supplier for Non-Baseband Products. Freescale will be Motorola’s “Preferred Supplier” for products from the Power Amp (PA) Semiconductor Family, the Power Management Semiconductor Family, and the RF/IF
Semiconductor Family (“Non-Baseband Products”). Preferred Supplier means that Freescale will be given an equal 

  

 Page 14 

 
opportunity to bid on all Non-Baseband Products required by Motorola, and if Freescale’s bid is equal to or better than other bids received by Motorola
with respect to pricing, timing and features, then Freescale will be awarded a percentage share that is consistent with a commercially reasonable dual source strategy. The parties acknowledge that while Motorola’s preferred suppliers typically
receive between 25% to 75% share of Motorola’s requirements, no particular percentage commitment for Non-Baseband Products is intended under this Section. If Freescale submits a bid for a Non-Baseband Product opportunity, and is not selected,
Freescale may submit the matter to the dispute resolution mechanism detailed in Section 3B of this Supplement. The parties will enter into Development Agreements for Non-Baseband Products awarded to Freescale that will establish terms for the sale
of such Non-Baseband Products. If not already in place, the parties will promptly begin negotiations toward Development Agreements for the Non-Baseband Products listed in the Non-Baseband Schedule to this Supplement. All of the conditions set
out in Section 4(A), (B), (C) and (D) above apply to Motorola’s obligation to purchase the minimum share awarded to Freescale pursuant to Motorola’s commercially reasonable dual source strategy. In addition, provided Motorola makes
commercially reasonable efforts throughout the term of this Agreement to design Non-Baseband Products into such quantities and types of handsets that are in the aggregate, out of the entire portfolio of handsets designed by Motorola, reasonably
likely and in good faith intended to achieve purchases of whatever minimum share Motorola awards Freescale for such Products, Motorola will not be deemed to be in breach of its commitment to purchase such share if Motorola’s failure to is
caused by Motorola designing Freescale Products into particular models of handsets that (i) do not sell as many units as equivalent handsets containing products from alternate suppliers or (ii) do not launch on the dates planned resulting in a delay
on the end-of-life of handsets that contain products from alternate suppliers. Motorola will use good faith efforts to cure any such failures but Freescale shall have no claim against Motorola regarding such failures including claims that Motorola
failed to use good faith efforts to cure. 
  
 6. Quarterly Linkage
Meetings. The parties will participate in quarterly linkage meetings to share roadmaps, scheduling and ensure progress of the Development Agreements. 
  
 7. Quarterly Review and Correction Procedure. 
  
 A. No more than 30 days following the end of each calendar quarter during the Term, the parties will jointly review Motorola’s performance to its
Purchase Commitments, in light of applicable adjustments and conditions in the prior quarter. 
  
 B. If the parties determine that in the preceding quarter Motorola did not meet its Purchase Commitment, Motorola will make a correction payment to Freescale within 30 days equivalent to the gross margin Freescale
would have realized had Motorola met such obligation. 
  
 C. If
the parties are unable to reach agreement on the respective performance of the parties and appropriate corresponding corrections, if necessary, to achieve the Purchase Commitment, then within 15 days from the date either party notifies the other of
its election to audit following failure to reach agreement, the parties will select a mutually acceptable, independent, nationally recognized auditor to review the relevant books and records of the parties to verify compliance with the requirements
of this Attachment. If the audit reveals that Motorola has not met the Purchase Commitment, then the parties will go through the correction procedures set forth in subparagraph B above as if they had mutually determined that Motorola did not meet
its Purchase Commitment in the preceding quarter at their quarterly review meeting. 
  
 8. Valuation upon Termination. Upon the termination of this Agreement by Freescale pursuant to Sections 4.2 or 4.3 of the Agreement, Freescale will submit to Motorola within 30 days from the termination date a good faith claim based
on the gross margin for Products that Motorola would have purchased had it met the Purchase Commitment, if any, taking into consideration Freescale’s ability to mitigate the claim through the sale of Products to other parties. Motorola must
notify Freescale in writing of its acceptance or rejection of the Freescale valuation within 10 business days of receipt of the valuation. Failure to provide this notice will constitute rejection of the Freescale valuation. If Motorola rejects the
Freescale valuation, then the matter will be subject to the dispute resolution process set forth in Section 23.12 of the Agreement. Upon acceptance or resolution of the Purchase Commitment valuation, Motorola will pay the valuation amount to
Freescale as provided in Section 9 (“Payment Terms”) of the Agreement. Upon payment of the valuation amount, Freescale will provide mutually agreed Products in amounts corresponding to the payment (if payment is full purchase price).

  

 Page 15

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