Document:

exv10w39

 

EXHIBIT
10.39

EMPLOYMENT AGREEMENT

THOMAS J. MEREDITH (“EXECUTIVE”) AND

MOTOROLA, INC. (“COMPANY”)

     Executive, on behalf of his heirs, administrators, representatives, executors, successors and
assigns, and the Company, on behalf of each of the Company’s subsidiaries, partnerships, joint
ventures, limited liability companies and other affiliates, including entities in which the Company
has a significant investment (collectively, the Company and such entities, the “Affiliated Group”)
hereby agree to the following terms of Executive’s employment with the Company (the “Agreement”):

	1.	 	Title. For the period April 1, 2007 through September 30, 2007, the Executive shall
serve as Executive Vice President and Acting Chief Financial Officer, with such duties and
responsibilities as are commensurate with such position, reporting directly to the Chief
Executive Officer of the Company. As of the Effective Date, Executive shall continue to serve
as a member of the Board of Directors of the Company (the “Board”). After September 30, 2007,
but during the Employment Period as defined below, the Executive may serve in another
capacity, as determined by the Chief Executive Officer.

	2.	 	Effective Date. The “Effective Date” of the Agreement shall mean April 1, 2007.

	3.	 	Employment Period. The Company hereby agrees to employ the Executive, and the
Executive hereby agrees to be employed by the Company, subject to the terms and conditions of
this Agreement, for the period commencing on the Effective Date and ending on the first
anniversary thereof (the “Initial Term”). The Company and the Executive may agree in writing
to extend the Initial Term. The Initial Term and to the extent it is extended are referred to
herein as the “Employment Period”.

	4.	 	Compensation and Benefits.

	 	(a)	 	Base Salary. During the Initial Term, the Executive shall receive salary of $1
payable in a lump sum upon completion of the Initial Term.
	 
	 	(b)	 	Director Compensation. During the Employment Period, Executive shall not
receive any compensation for his service on the Board.
	 
	 	(c)	 	Annual & Long-Term Cash Bonuses. During the Initial Term, the Executive shall
not be eligible to receive an annual or long-term cash bonus.
	 
	 	(d)	 	Long-Term Equity Awards. The Executive shall receive grants of equity
compensation awards pursuant to the Company’s Omnibus Incentive Plan of 2006 (the
“Incentive Plan”) as set forth below.

	 	(i)	 	Stock Option. The Executive shall be granted an option (the “Stock
Option”) to purchase 250,000 shares of common stock of the Company (the “Common
Stock”). The Stock Option shall have (A) a per share
exercise price equal to the closing price of a share of Common Stock on 

 

 

	 	 	 	the date of grant as reported on the New York Stock Exchange – Composite
Transactions in the Wall Street Journal, Midwest Edition (the “Fair Market
Value”), (B) a vesting schedule such that the Stock Option will become
exercisable in full on the first anniversary of the date of grant, provided
that the Executive remains in the employ of the Company through September
30, 2007 or thereafter, and (C) a ten-year term (which term shall not be
truncated in the event the Executive’s employment with the Company
terminates after the Stock Option vests in a situation due to the
Executive’s voluntary termination of employment or the Company’s involuntary
termination of the Executive for a reason other than serious misconduct).
Except as specifically provided herein, the terms and conditions of the
Stock Option shall be subject to the terms of the Incentive Plan and the
award agreement evidencing the grant of the Stock Option.

	 	(ii)	 	Restricted Stock Units. The Executive shall be granted an award of
500,000 restricted stock units (the “RSUs”) based on shares of Common Stock
pursuant to the Incentive Plan. The RSUs shall vest (i) 33% if the Fair Market
Value of Company common stock reaches $20.00 and remains at or above $20.00 for
ten Trading Days (as defined below) out of any thirty consecutive Trading Days
all of which occur within the two-year period beginning on the date the RSUs
are granted (the “Restriction Period”), (ii) an additional 33% if the Fair
Market Value of Company common stock reaches $22.00 and remains at or above
$22.00 for ten Trading Days out of any thirty consecutive Trading Days all of
which occur within the Restriction Period, and (iii) the remaining 34% if the
Fair Market Value of Company common stock reaches $24.00 and remains at or
above $24.00 for ten Trading Days out of any thirty consecutive Trading Days
all of which occur within the Restriction Period. For this purpose, a “Trading
Day” shall be any day on which the New York Stock Exchange is open for trading.
Except as specifically provided herein, the terms and conditions of the RSUs
shall be subject to the terms of the Incentive Plan and the award agreement
evidencing the grant of the RSUs, as provided to senior executives of the
Company generally.

	 	(e)	 	Change in Control Benefits. Upon a Change in Control (as defined in the
Incentive Plan, and pursuant to the Motorola, Inc. Senior Officer Change in Control
Severance Plan or any successor change in control plan or program (the “Change in
Control Plan”)), the equity-based awards granted herein to the Executive shall become
fully vested and exercisable (or, if applicable, all restrictions shall lapse), and all
RSUs shall be paid out as promptly as practicable; provided, however, that the
treatment of outstanding awards set forth above (referred to herein as “Accelerated
Treatment”) shall not apply if and to the extent that such awards are assumed by the
successor corporation (or parent thereof) or are replaced with awards that preserve the
existing value of such awards at the time of the Change in Control and provide for
subsequent payout in accordance with the same vesting schedule applicable to the
original awards; provided, further, that with respect to any awards that are assumed or
replaced, such assumed or replaced awards shall provide for the Accelerated Treatment
if the

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	 	 	 	Executive is involuntarily terminated or quits for Good Reason (as defined in the Incentive Plan)
prior to the end of the Initial Term. Notwithstanding the foregoing, if the Company
adopts an equity incentive plan with Change in Control benefits more generous than
the benefits provided in this Section 4(e) or a Change in Control severance plan for
senior executives generally with more generous benefits than the Change in Control
Plan, the Executive will be entitled to those more generous benefits to the extent
Executive’s awards are granted under such plan or such Change in Control severance
plan is adopted, as applicable.
	 
	 	(f)	 	Retirement Plans. During the Employment Period, the Executive shall not be
eligible to participate in any of the qualified or non-qualified pension plans,
practices, policies and programs of the Company, as may be in effect from time to time,
for senior executives of the Company generally. The Executive may, however,
participate in the Motorola 401(k) Plan, in accordance with the terms of such plan.
	 
	 	(g)	 	Other Benefits. During the Employment Period, the Executive shall be eligible
to participate in the welfare, perquisites, fringe benefit, and other benefit plans,
practices, policies and programs, as may be in effect from time to time, for senior
executives of the Company generally including without limitation: (A) reasonable use of
Company aircraft for personal and business purposes (up to 125 flight hours for
personal use); (B) participation in the Company’s Elected Officer Life Insurance
Program; (C) reimbursement of up to $60,000 of living expenses in Chicago; and (D)
financial planning.
	 
	 	(h)	 	Expenses. During the Employment Period, the Executive shall be eligible for
prompt reimbursement for business expenses reasonably incurred by the Executive in
accordance with the Company’s policies, as may be in effect from time to time, for its
senior executives generally.

	5.	 	Termination of Employment. If the Executive’s employment is terminated for any
reason during the Employment Period, this Agreement shall terminate without further
obligations to the Executive or the Executive’s legal representatives under this Agreement.
The vesting of each stock option and RSU that is outstanding as of the date of termination
shall be governed by the applicable provisions of the applicable award agreement, each of
which is incorporated herein by reference, and the Incentive Plan. For purposes of this
Agreement, a termination of employment shall not include a change in Executive’s work
assignment from Executive Vice President and Acting Chief Financial Officer to any other
position in the Motorola Finance organization or on the Motorola Senior Leadership Team or as
a consultant to the CEO or any member of the Senior Leadership Team. Likewise for purposes of
this Agreement, a termination of employment shall not include a change in Executive’s
employment status from a full-time employee to either a non-employee consultant to the Company
or a non-employee director of the Company.

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	6.	 	Additional Covenants.

	 	(a)	 	Confidential Information. The Executive shall not communicate, divulge or
disseminate Confidential Information, as defined in the attached agreements, at any
time during or after the Executive’s employment with the Affiliated Group, except with
prior written consent of the Company, or as otherwise required by law or legal process
or as such disclosure or use may be required in the course of the Executive performing
his duties and responsibilities as the Chief Executive Officer and Chairman of the
Board of the Company. Notwithstanding the foregoing provisions, if the Executive is
required to disclose any such confidential or proprietary information pursuant to
applicable law or a subpoena or court order, the Executive shall promptly notify the
Company in writing of any such requirement so that the Company or the appropriate
member of the Affiliated Group may seek an appropriate protective order or other
appropriate remedy or waive compliance with the provisions hereof. The Executive shall
reasonably cooperate with the Affiliated Group to obtain such a protective order or
other remedy. If such order or other remedy is not obtained prior to the time the
Executive is required to make the disclosure, or the Company waives compliance with the
provisions hereof, the Executive shall disclose only that portion of the confidential
or proprietary information which he is advised by counsel in writing (either his or the
Company’s) that he is legally required to so disclose. Upon his termination of
employment with the Company for any reason, the Executive shall promptly return to the
Company, all records, files, memoranda, correspondence, notebooks, notes, reports,
customer lists, drawings, plans, documents, and other documents and the like relating
to the business of the Affiliated Group or containing any trade secrets relating to the
Affiliated Group or that the Executive uses, prepares or comes into contact with during
the course of the Executive’s employment with the Company, and all keys, credit cards
and passes, and such materials shall remain the sole property of the Company and/or the
Affiliated Group, as applicable. For purposes of the preceding sentence, the term
“trade secrets” shall have the meaning ascribed to it under the Illinois Trade Secrets
Act or, if such act is repealed, the Uniform Trade Secrets Act (on which the Illinois
Trade Secrets Act is based). The Executive agrees to represent in writing to the
Company upon termination of employment that he has complied with the foregoing
provisions.
	 
	 	(b)	 	Assistance. The Executive agrees that during and after his employment by the
Company, the Executive will assist the Affiliated Group in the defense of any claims,
or potential claims that may be made or threatened to be made against any member of the
Affiliated Group in any action, suit or proceeding, whether civil, criminal,
administrative, investigative or otherwise (a “Proceeding”), and will assist the
Affiliated Group in the prosecution of any claims that may be made by any member of the
Affiliated Group in any Proceeding, to the extent that such claims may relate to the
Executive’s employment or the period of the Executive’s employment by the Company. The
Executive agrees, unless precluded by law, to promptly inform the Company if the
Executive is asked to participate (or otherwise become involved) in any Proceeding
involving such claims or potential claims. The Executive also agrees, unless precluded
by law, to promptly inform the Company if the Executive is asked to assist in any
investigation (whether governmental or otherwise) of any member 

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	 	 	 	of the Affiliated Group (or their actions), regardless of
whether a lawsuit has then been filed against any member of the Affiliated Group
with respect to such investigation. The Company agrees to reimburse the Executive
for all of the Executive’s reasonable out-of-pocket expenses associated with such
assistance, including travel expenses and any attorneys’ fees and shall pay a
reasonable per diem fee for the Executive’s service, other than for testimony. In
addition, the Executive agrees to provide such services as are reasonably requested
by the Company to assist any successor to the Executive in the transition of duties
and responsibilities to such successor. Any services or assistance contemplated in
this Section 6(d) shall be at mutually agreed to and convenient times.

	 	(c)	 	Remedies. The Executive acknowledges and agrees that in addition to all other
remedies at law and/or equity, including but not limited to those set forth in the
attached agreements, (x) the Executive’s breach of the provisions of Section 6 will
cause the Company irreparable harm, which cannot be adequately compensated by money
damages, and (y) if the Company elects to prevent the Executive from breaching such
provisions by obtaining an injunction against the Executive, there is a reasonable
probability of the Company’s eventual success on the merits. The Executive consents
and agrees that if the Executive commits any such breach or threatens to commit any
breach, the Company shall be entitled to temporary and permanent injunctive relief from
a court of competent jurisdiction, in addition to, and not in lieu of, such other
remedies as may be available to the Company for such breach, including the recovery of
money damages. The Parties further acknowledge and agree that the provisions of
Section 7(a) below are accurate and necessary because (A) this Agreement is entered
into in the State of Illinois, (B) as of the Effective Date, Illinois will have a
substantial relationship to the Parties and to this transaction, (C) as of the
Effective Date, Illinois will be the headquarters state of the Company, which has
operations nationwide and has a compelling interest in having its employees treated
uniformly within the United States, (D) the use of Illinois law provides certainty to
the Parties in any covenant litigation in the United States, and (E) enforcement of the
provision of this Section 6 would not violate any fundamental public policy of Illinois
or any other jurisdiction. If any of the provisions of Section 6 are determined to be
wholly or partially unenforceable, the Executive hereby agrees that this Agreement or
any provision hereof may be reformed so that it is enforceable to the maximum extent
permitted by law. If any of the provisions of this Section 6 are determined to be
wholly or partially unenforceable in any jurisdiction, such determination shall not be
a bar to or in any way diminish the Company’s right to enforce any such covenant in any
other jurisdiction.
	 
	 	(d)	 	The covenants in this Section 6 apply in the countries in which Executive has
physically been present performing work for the Company at any time during the two
years preceding termination of his employment.

	7.	 	Successors.

	 	(a)	 	This Agreement is personal to the Executive and without the prior written
consent of the Company shall not be assignable by the Executive other than by will or
the laws of descent and distribution. This Agreement shall inure to the benefit of and
be enforceable by the Executive’s legal representatives. This Agreement shall 

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	 	 	 	inure to the benefit of and be binding upon the Company and its successors and assigns.

	 	(b)	 	The Company shall cause any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all or a substantial
portion of its business and/or assets to assume expressly and agree to perform this
Agreement immediately upon such succession in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as hereinbefore defined
and any successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law, or otherwise.

	8.	 	Miscellaneous

	 	(a)	 	This Agreement shall be governed by and construed in accordance with the laws
of the State of Illinois, without reference to principles of conflict of laws. The
Parties hereto irrevocably agree to submit to the jurisdiction and venue of the courts
of the State of Illinois, in any action or proceeding brought with respect to or in
connection with this Agreement. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect. This Agreement may not be amended
or modified otherwise than by a written agreement executed by the Parties hereto or
their respective successors and legal representatives.
	 
	 	(b)	 	The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.
	 
	 	(c)	 	Notwithstanding any other provision of this Agreement, the Company may withhold
from any amounts payable or benefits provided under this Agreement any Federal, state,
and local taxes as shall be required to be withheld pursuant to any applicable law or
regulation.
	 
	 	(d)	 	The Executive’s or the Company’s failure to insist upon strict compliance with
any provision of this Agreement or the failure to assert any right the Executive or the
Company may have hereunder, shall not be deemed to be a waiver of such provision or
right or any other provision or right of this Agreement.
	 
	 	(e)	 	From and after the Effective Date, this Agreement, including the attachments
that are incorporated by reference, shall supersede any other employment agreement or
understanding between the Parties, provided that, notwithstanding any other provision
of this Agreement to the contrary, in the event of a Change in Control (as defined in
the Change in Control Plan), the Change in Control Plan shall supersede this Agreement;
provided, that, the Change in Control provisions in this Agreement will continue to
apply.

	9.	 	Director’s and Officer’s Insurance. The Company shall continue to provide the
Executive with reasonable Director’s and Officer’s insurance coverage that is at least as
favorable as the coverage provided to other directors and officers of the Company. Such
insurance coverage shall continue in effect both during the Employment Period and, while
potential liability exists, thereafter.

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	10.	 	Indemnification. The Company shall indemnify the Executive and hold him harmless to
the fullest extent permitted by law and under the by-laws of the Company against, and in
respect to, any and all actions, suits, proceedings, claims, demands, judgments, costs,
expenses (including reasonable attorney fees), losses and damages resulting from the
Executive’s good faith performance of his duties and obligations with the Company.

	11.	 	Representations. The Executive hereby represents and warrants to the Company that
the Executive is not party to any contract, understanding, agreement or policy, whether or not
written, with his current employer (or any other previous employer) or otherwise, that would
be breached by the Executive’s entering into, or performing services under, this Agreement.
The Executive further represents that he has complied with all export control requirements and
that he is legally authorized to work in the United States, that he has disclosed to the
Company in writing all material threatened, pending, or actual claims that are unresolved and
still outstanding as of the Effective Date, in each case, against the Executive of which he is
aware, if any, as a result of his employment with his current employer (or any other previous
employer) or his membership on any boards of directors. Executive agrees that he has not,
will not and cannot rely on any representations not expressly made herein and the only
consideration for signing this Employment Agreement are the terms stated herein and no other
promises or representations of any kind have been made by any person or entity whatsoever to
cause him to sign this Employment Agreement.

        IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

        March 27, 2007

	 	 	 	 	 
	 	 	MOTOROLA, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ruth Fattori
	 

	 	 	 	 
	 

	 	 	 	Name: Ruth Fattori
	 

	 	 	 	            Executive Vice President,
	 

	 	 	 	            Human Resources
	 
	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 
	 	 	/s/ Thomas J. Meredith

	 	 	 
	 	 	Thomas J. Meredith

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ATTACHMENT A

STOCK OPTION CONSIDERATION AGREEMENT

GRANT DATE: April 2, 2007

The following Agreement is established to protect the trade secrets, intellectual property,
confidential information, customer relationships and goodwill of Motorola, Inc. and each of its
subsidiaries (the “Company”) both as defined in the Motorola Omnibus Incentive Plan of 2006 (the
“2006 Plan”).

As consideration for the stock option(s) granted to me on the date shown above under the terms of
the 2006 Plan (“the Covered Options”), and Motorola having provided me with Confidential
Information as a Motorola appointed vice president or elected officer, I agree to the following:

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

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

(3) I agree that during my employment and for a period of one year following the termination of my
employment for any reason, I will not, directly or indirectly, on behalf of myself or any other
person, company or entity, solicit or participate in soliciting, products or services competitive
with or similar to products or services offered by, manufactured by, designed by or distributed by
the Company to any person, company or entity which was a customer or potential customer for such
products or services and with which I had direct or indirect contact regarding those products or
services or about which I learned Confidential Information at any time during the two years prior
to my termination of employment with the Company.

(4) I agree that by accepting the Covered Options, if I violate the terms of paragraphs 1 through
and including 3 of this Agreement, then, in addition to any other remedies available in law and/or
equity, all of my vested and unvested Covered Options will terminate and no longer be exercisable,
and for all Covered Options exercised within one year prior to the termination of my employment for
any reason or anytime after termination of my employment for any reason, I will immediately pay to
the Company the difference between the exercise price on the date of grant as reflected in the
Award Document for the Covered Options and the market price of the Covered Options on the date of
exercise (the “spread”).

(5) The requirements of this agreement can be waived or modified only upon the prior written
consent of Motorola, Inc. I acknowledge that the promises in this Agreement, not any employment of
or services performed by me in the course and scope of that employment, are the sole consideration
for the Covered Options. I agree the Company shall have the right to assign this Agreement which
shall not affect the validity or enforceability of this Agreement. This Agreement shall inure to
the benefit of the Company assigns and successors.

 

 

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

(7) I acknowledge that the harm caused to the Company by the breach or anticipated breach of
paragraphs 1, 2, and/or 3 of this Agreement will be irreparable and I agree the Company may obtain
injunctive relief against me in addition to and cumulative with any other legal or equitable rights
and remedies the Company may have pursuant to this Agreement, any other agreements between me and
the Company for the protection of the Company’s Confidential Information, or law, including the
recovery of liquidated damages. I agree that any interim or final equitable relief entered by a
court of competent jurisdiction, as specified in paragraph 10 below, will, at the request of the
Company, be entered on consent and enforced by any such court having jurisdiction over me. This
relief would occur without prejudice to any rights either party may have to appeal from the
proceedings that resulted in any grant of such relief.

(8) With respect to the Covered Options, this Agreement is my entire agreement with the Company.
No waiver of any breach of any provision of this Agreement by the Company shall be construed to be
a waiver of any succeeding breach or as a modification of such provision. The provisions of this
Agreement shall be severable and in the event that any provision of this Agreement shall be found
by any court as specified in paragraph 10 below to be unenforceable, in whole or in part, the
remainder of this Agreement shall nevertheless be enforceable and binding on the parties. I also
agree that the court may modify any invalid, overbroad or unenforceable term of this Agreement so
that such term, as modified, is valid and enforceable under applicable law. Further, I
affirmatively state that I have not, will not and cannot rely on any representations not expressly
made herein.

(9) I accept the terms of this Agreement and the above option(s) to purchase shares of the Common
Stock of the Company, subject to the terms of this Agreement, the 2006 Plan, and any Award Document
issued pursuant thereto. I am familiar with the 2006 Plan and agree to be bound by it to the
extent applicable, as well as by the actions of the Company’s Board of Directors or any committee
thereof.

(10) I agree that this Agreement and the 2006 Plan, and any Award Document issued pursuant thereto,
together constitute an agreement between the Company and me. I further agree that this Agreement
is governed by the laws of Illinois, without giving effect to any state’s principles of Conflicts
of Laws, and any legal action related to this Agreement shall be brought only in a federal or state
court located in Illinois, USA.

	 	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	Printed Name
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Commerce ID

IN ORDER FOR THE ABOVE-REFERENCED OPTION(S) TO BE AWARDED, THIS AGREEMENT, SIGNED AND DATED, MUST
BE RETURNED TO MOTOROLA c/o EXECUTIVE REWARDS NO LATER THAN                                         .

- 9 -

 

ATTACHMENT B

RESTRICTED STOCK UNIT AWARD AGREEMENT

     This Restricted Stock Unit Award (“Award”) is awarded on April 2, 2007 (“Date of Grant”), by
Motorola, Inc. (the “Company” or “Motorola”) to Thomas J. Meredith (the “Grantee”).

     WHEREAS, Grantee is receiving the Award under the Motorola Omnibus Incentive Plan of 2006, as
amended (the “2006 Incentive Plan”);

          WHEREAS, the Award is being made as a special grant of Motorola restricted stock units
authorized by the Board of Directors and the Board’s Compensation and Leadership Committee (the
“Compensation Committee”); and

          WHEREAS, it is a condition to Grantee receiving the Award that Grantee electronically accept
the terms, conditions and Restrictions applicable to the restricted stock units as set forth in
this agreement.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other
good and valuable consideration, the Company hereby awards restricted stock units to Grantee on the
following terms and conditions:

	1.	 	Award of Restricted Stock Units. The Company hereby grants to Grantee a total of 500,000
Motorola restricted stock units (the “Units”) subject to the terms and conditions set
forth below. All Awards shall be paid in whole shares of Motorola Common Stock (“Common
Stock”); no fractional shares shall be credited or delivered to Grantee.

	2.	 	Restrictions. The Units are being awarded to Grantee subject to the transfer and
forfeiture conditions set forth below (the “Restrictions”) which shall lapse, if at all,
as described in Section 3 below. For purposes of this Award, the term Units includes any
additional Units granted to the Grantee with respect to Units, still subject to the
Restrictions.

	 	a.	 	Grantee may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge
or otherwise transfer any of the Units still subject to Restrictions. The Units
shall be forfeited if Grantee violates or attempts to violate these transfer
Restrictions. Motorola shall have the right to assign this Agreement, which
shall not affect the validity or enforceability of this Agreement. This
Agreement shall inure to the benefit of assigns and successors of Motorola.
	 
	 	b.	 	Any Units still subject to the Restrictions shall be automatically
forfeited upon the Grantee’s termination of employment with Motorola or a
Subsidiary during the twelve-month period following the Date of Grant for any
reason other than death (as provided in Section 3(a) below), Total and
Permanent Disability (as provided in Section 3(a) below), or Involuntary
Termination due to (A) a Divestiture or (B) for a reason other than for Serious
Misconduct. For purposes of this Agreement, a termination of employment shall
not include a change in Grantee’s work assignment from Executive Vice President
and Acting Chief Financial Officer to any other position in the Motorola
Finance organization or on the Motorola Senior Leadership Team or as a
consultant to the CEO or any member of the Senior
Leadership Team. Likewise for purposes of this agreement, a termination of
employment shall not include a change in Grantee’s employment status from a
full-time employee to either a non-employee 

 

 

	 	 	 	consultant to the Company or a
non-employee director of the Company, and a “Subsidiary” is any corporation
or other entity in which a 50 percent or greater interest is held directly
or indirectly by Motorola and which is consolidated for financial reporting
purposes. Total and Permanent Disability is defined in Section 3(a).

	 	c.	 	If Grantee engages in any of the following conduct, in addition to all
remedies in law and/or equity available to the Company or any Subsidiary,
Grantee shall forfeit all restricted stock units under the Award whose
Restrictions have not lapsed, and, for all restricted stock units under the
Award whose Restrictions have lapsed, Grantee shall immediately pay to the
Company the Fair Market Value (as defined in paragraph 7 below) of Common Stock
on the date(s) such Restrictions lapsed, without regard to any taxes that may
have been deducted from such amount. For purposes of subparagraphs (i) through
and including (iii) below, “Company” or “Motorola” shall mean Motorola Inc.
and/or any of its Subsidiaries:

	 	(i)	 	During the course of Grantee’s employment and
thereafter, Grantee uses or discloses, except on behalf of the
Company and pursuant to the Company’s directions, any Company
Confidential Information. “Confidential Information” means
information concerning the Company and its business that is not
generally known outside the Company, and includes (A) trade
secrets; (B) intellectual property; (C) the Company’s methods of
operation and Company processes; (D) information regarding the
Company’s present and/or future products, developments, processes
and systems, including invention disclosures and patent
applications; (E) information on customers or potential customers,
including customers’ names, sales records, prices, and other terms
of sales and Company cost information; (F) Company personnel data;
(G) Company business plans, marketing plans, financial data and
projections; and (H) information received in confidence by the
Company from third parties. Information regarding products,
services or technological innovations in development, in test
marketing or being marketed or promoted in a discrete geographic
region, which information the Company or one of its affiliates is
considering for broader use, shall be deemed not generally known
until such broader use is actually commercially implemented; and/or
	 
	 	(ii)	 	During Grantee’s employment and for a period of one
year following the termination of Grantee’s employment for any
reason, Grantee hires, recruits, solicits or induces, or causes,
allows, permits or aids others to hire, recruit, solicit or induce,
or to communicate in support of those activities, any employee of
the Company who possesses Confidential Information of the Company
to terminate his/her employment with the Company and/or to seek
employment with Grantee’s new or prospective employer, or any other
company; and/or
	 
	 	(iii)	 	During Grantee’s employment and for a period of
one year following the termination of Grantee’s employment for any
reason, Grantee,
directly or indirectly, on behalf of Grantee or any other
person, company or entity, solicits or participates in
soliciting, products or 

- 11 -

 

	 	 	 	services competitive with or similar to
products or services offered by, manufactured by, designed by or
distributed by the Company to any person, company or entity
which was a customer or potential customer for such products or
services and with which Grantee had direct or indirect contact
regarding those products or services or about which Grantee
learned Confidential Information at any time during the two
years prior to Grantee’s termination of employment with the
Company.

The Company will not be obligated to pay Grantee any consideration whatsoever for forfeited Units.

	3.	 	Lapse of Restrictions.

	 	a.	 	As long as the Units have not been forfeited as described in Section 2
above, and except as set forth in Section 3(b) below, the Restrictions
applicable to the Units shall lapse as follows:

	 	•	 	If in the two years following the Date of Grant (the
“Restriction Period”), the Fair Market Value (as defined in
paragraph 7 below) of Common Stock meets or exceeds the dollar
amount set forth below for at least ten Trading Days (as defined
below) during any thirty consecutive Trading Days, then the
Restrictions shall lapse as to the corresponding percentage of
Units set forth below:

	 	 	 
	Dollar Amount	 	Percent Vested
	$20.00 per share
	 	33%

	$22.00 per share
	 	An additional 33%

	$24.00 per share
	 	The final 34%

	 	 	 	For purposes of this Agreement, “Trading Day” means any date on
which the New York Stock Exchange is open for trading.
	 
	 	•	 	If a Change in Control of the Company occurs and the successor
corporation (or parent thereof) does not assume this Award or
replace it with a comparable award; provided, further, that with
respect to any Award that is assumed or replaced, such assumed or
replaced awards shall provide that the Restrictions shall lapse for
any Participant that is involuntarily terminated (for a reason
other than Cause) or quits for Good Reason within 12 months of the
Date of Grant. For purposes of this paragraph, the terms “Change
in Control”, “Cause ” and “Good Reason” are defined in the 2006
Incentive Plan;
	 
	 	•	 	Subject to the vesting conditions outlined in subparagraph (i)
above, upon termination of Grantee’s employment by Motorola or a
Subsidiary by Total and Permanent Disability. “Total and Permanent
Disability” means for (x) U.S. employees, entitlement to long term
disability benefits under the Motorola Disability Income Plan, as
amended and any successor plan or a determination of a permanent
and total disability under a state workers compensation statute and
(y) non-U.S. employees, as established by applicable Motorola policy or as
required by local regulations; or

- 12 -

 

	 	•	 	Subject to the vesting conditions outlined in subparagraph (i)
above, if the Grantee dies.

	 	b.	 	Subject to the vesting conditions outlined in subparagraph (i) above,
in the case of Involuntary Termination due to a Divestiture or for a reason
other than for Serious Misconduct before the expiration of the Restriction
Period, if the Units have not been forfeited as described in Section 2 above,
then the Restrictions shall lapse immediately.
	 
	 	c.	 	“Termination due to a Divestiture” for purposes of this Agreement means
if Grantee accepts employment with another company in direct connection with
the sale, lease, outsourcing arrangement or any other type of asset transfer or
transfer of any portion of a facility or any portion of a discrete
organizational unit of Motorola or a Subsidiary, or if Grantee remains employed
by a Subsidiary that is sold or whose shares are distributed to the Motorola
stockholders in a spin-off or similar transaction (a “Divestiture”).
	 
	 	d.	 	“Serious Misconduct” for purposes of this Agreement means any
misconduct identified as a ground for termination in the Motorola Code of
Business Conduct, or the human resources policies, or other written policies or
procedures.
	 
	 	e.	 	Subject to the vesting conditions outlined in subparagraph (i) above,
if, during the Restriction Period, the Grantee takes a Leave of Absence from
Motorola or a Subsidiary, the Units will continue to be subject to this
Agreement. If the Restriction Period expires while the Grantee is on a Leave
of Absence the Grantee will be entitled to the Units even if the Grantee has
not returned to active employment. “Leave of Absence” means an approved leave
of absence from Motorola or a Subsidiary that is not a termination of
employment, as determined by Motorola.
	 
	 	f.	 	To the extent the Restrictions lapse under this Section 3 with respect
to the Units, they will be free of the terms and conditions of this Award
(other than Section 2(c)). To the extent the Restrictions under this Section 3
do not lapse with respect to some or all of the Units prior to the end of the
Restriction Period, any such Units shall be forfeited.

	4.	 	Adjustments. If the number of outstanding shares of Common Stock is changed as a result
of a stock split or the like without additional consideration to the Company, the number
of Units subject to this Award shall be adjusted to correspond to the change in the
outstanding shares of Common Stock.
	 
	5.	 	Dividends. No dividends (or dividend equivalents) shall be paid with respect to Units
credited to the Grantee’s account.
	 
	6.	 	Delivery of Certificates or Equivalent. Upon the lapse of Restrictions applicable to the
Units, the Company shall, at its election, either (i) deliver to the Grantee a certificate
representing a number of shares of Common Stock equal to the number of Units upon which
such Restrictions have lapsed, or (ii) establish a brokerage account for the Grantee and
credit to that account the number of shares of Common Stock of the Company equal to the number
of Units upon which such Restrictions have lapsed.

	7.	 	Withholding Taxes. The Company is entitled to withhold applicable taxes for the
respective 

- 13 -

 

	 	 	tax jurisdiction attributable to this Award or any payment made in connection
with the Units. Grantee may satisfy any minimum withholding obligation by electing to
have the plan administrator retain shares of Common Stock deliverable in connection with
the Units having a Fair Market Value on the date the Restrictions applicable to the Units
lapse equal to the amount to be withheld. For purposes of this Agreement, the “Fair
Market Value” of Common Stock on any date shall be the closing price for a share of Common
Stock on that date as reported for the New York Stock Exchange — Composite Transactions in
the Wall Street Journal, Midwest edition.

	8.	 	Voting and Other Rights.

	 	a.	 	Grantee shall have no rights as a stockholder of the Company in
respect of the Units, including the right to vote and to receive cash
dividends and other distributions until delivery of certificates
representing shares of Common Stock in satisfaction of the Units.
	 
	 	b.	 	The grant of Units does not confer upon Grantee any right to
continue in the employ of the Company or a Subsidiary or to interfere with
the right of the Company or a Subsidiary, to terminate Grantee’s employment
at any time.

	9.	 	Agreement Following Termination of Employment. Grantee agrees that upon termination of
employment with Motorola or a Subsidiary, Grantee will immediately inform Motorola of (a)
the identity of any new employer (or the nature of any start-up business or
self-employment), (b) Grantee’s new title, and (c) Grantee’s job duties and
responsibilities. Grantee hereby authorizes Motorola or a Subsidiary to provide a copy of
this Award Document to Grantee’s new employer. Grantee further agrees to provide
information to Motorola or a Subsidiary as may from time to time be requested in order to
determine his/her compliance with the terms hereof.

	10.	 	Consent to Transfer Personal Data. By accepting this award, Grantee voluntarily
acknowledges and consents to the collection, use, processing and transfer of personal data
as described in this paragraph. Grantee is not obliged to consent to such collection,
use, processing and transfer of personal data. However, failure to provide the consent
may affect Grantee’s ability to participate in the Plan. Motorola, its Subsidiaries and
Grantee’s employer hold certain personal information about the Grantee, that may include
his/her name, home address and telephone number, date of birth, social security number or
other employee identification number, salary grade, hire data, salary, nationality, job
title, any shares of stock held in Motorola, or details of all restricted stock units or
any other entitlement to shares of stock awarded, canceled, purchased, vested, or
unvested, for the purpose of managing and administering the Plan (“Data”). Motorola
and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose
of implementation, administration and management of Grantee’s participation in the Plan,
and Motorola and/or any of its Subsidiaries may each further transfer Data to any third
parties assisting Motorola in the implementation, administration and management of the
Plan. These recipients may be located throughout the world, including the United States.
Grantee authorizes them to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing
Grantee’s participation in the Plan, including any requisite
transfer of such Data as may be required for the administration of the Plan and/or the
subsequent holding of shares of stock on the Grantee’s behalf to a broker or other third
party with whom the Grantee may elect to deposit any shares of stock acquired pursuant
to the Plan. Grantee may, at any time, review Data, require any necessary amendments to
it or withdraw the consents herein in writing by contacting Motorola; however,
withdrawing consent may affect the Grantee’s ability to participate in the Plan.

- 14 -

 

	11.	 	Nature of Award. By accepting this Award Agreement, the Grantee acknowledges his or her
understanding that the grant of Units under this Award Agreement is completely at the
discretion of Motorola, and that Motorola’s decision to make this Award in no way implies
that similar awards may be granted in the future or that Grantee has any guarantee of
future employment. Nor shall this or any such grant interfere with Grantee’s right or the
Company’s right to terminate such employment relationship at any time, with or without
cause, to the extent permitted by applicable laws and any enforceable agreement between
Grantee and the Company. In addition, the Grantee hereby acknowledges that he has entered
into employment with Motorola or a Subsidiary upon terms that did not include this Award
or similar awards, that his decision to continue employment is not dependent on an
expectation of this Award or similar awards, and that any amount received under this Award
is considered an amount in addition to that which the Grantee expects to be paid for the
performance of his services. Grantee’s acceptance of this Award is voluntary. The Award
is not part of normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension,
or retirement benefits or similar payments, notwithstanding any provision of any
compensation, insurance agreement or benefit plan to the contrary.

	12.	 	Remedies for Breach. Grantee hereby acknowledges that the harm caused to the Company by
the breach or anticipated breach of paragraphs 2(c)(i), (ii) and/or (iii) of this
Agreement will be irreparable and further agrees the Company may obtain injunctive relief
against the Grantee in addition to and cumulative with any other legal or equitable rights
and remedies the Company may have pursuant to this Agreement, any other agreements between
the Grantee and the Company for the protection of the Company’s Confidential Information,
or law, including the recovery of liquidated damages. Grantee agrees that any interim or
final equitable relief entered by a court of competent jurisdiction, as specified in
paragraph 15 below, will, at the request of the Company, be entered on consent and
enforced by any such court having jurisdiction over the Grantee. This relief would occur
without prejudice to any rights either party may have to appeal from the proceedings that
resulted in any grant of such relief.

	13.	 	Acknowledgements. With respect to the subject matter of paragraphs 2(c)(i), (ii) and
(iii) and paragraphs 12 and 15 hereof, this Agreement is the entire agreement with the
Company. No waiver of any breach of any provision of this Agreement by the Company shall
be construed to be a waiver of any succeeding breach or as a modification of such
provision. The provisions of this Agreement shall be severable and in the event that any
provision of this Agreement shall be found by any court as specified in paragraph 15 below
to be unenforceable, in whole or in part, the remainder of this Agreement shall
nevertheless be enforceable and binding on the parties. Grantee hereby agrees that the
court may modify any invalid, overbroad or unenforceable term of this Agreement so that
such term, as modified, is valid and enforceable under applicable law. Further, by
accepting any Award under this Agreement, Grantee affirmatively states that he has not,
will not and cannot rely on any representations not expressly made herein.

	14.	 	Funding. No assets or shares of Common Stock shall be segregated or earmarked by the
Company in respect of any Units awarded hereunder. The grant of Units hereunder shall
not constitute a trust and shall be solely for the purpose of recording an unsecured
contractual obligation of the Company.

	15.	 	Governing Law. All questions concerning the construction, validity and interpretation of
this Award shall be governed by and construed according to the law of the State of
Illinois without regard to any state’s conflicts of law principles. Any disputes
regarding this Award or Agreement shall be brought only in the state or federal courts of
Illinois.

- 15 -

 

	16.	 	Waiver. The failure of the Company to enforce at any time any provision of this Award
shall in no way be construed to be a waiver of such provision or any other provision
hereof.

	17.	 	Actions by the Compensation Committee. The Committee may delegate its authority to
administer this Agreement. The actions and determinations of the Compensation Committee
or its delegate shall be binding upon the parties.

	18.	 	Acceptance of Terms and Conditions. By electronically accepting this Award within 30
days after the date of the electronic mail notification by the Company to Grantee of the
grant of this Award (“Email Notification Date”), Grantee agrees to be bound by the
foregoing terms and conditions, the 2006 Incentive Plan and any and all rules and
regulations established by Motorola in connection with awards issued under the 2006
Incentive Plan. If Grantee does not electronically accept this Award within 30 days of
the Email Notification Date, Grantee will not be entitled to the Units.

	19.	 	Plan Documents. The 2006 Incentive Plan and the Prospectus for the 2006
Incentive Plan are available at
http://myhr.mot.com/pay_finances/awards_incentives/stock_options/plan_documents.jsp or
from Global Rewards, 1303 East Algonquin Road, Schaumburg, IL 60196 (847) 576-7885.

- 16 -

 

ATTACHMENT C

MOTOROLA, INC.

AWARD DOCUMENT

For the

Motorola Omnibus Incentive Plan of 2006

Terms and Conditions Related to Employee Nonqualified Stock Options

	 	 	 	 	 	 	 
	Recipient:
	 	Thomas J. Meredith	 	Date of Expiration:	 	April 2, 2017
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Commerce ID#:
	 	 	 	Number of Options:	 	250,000
	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date of Grant:
	 	April 2, 2007	 	Exercise Price:	 	$
	 
	 	 	 	 

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

Vesting and Exercisability

You cannot exercise the Options until they have vested.

Regular Vesting – The Options will vest in accordance with the following schedule (subject to the
other terms hereof):

	 	 	 
	Percent	 	Date
	100%
	 	April 2, 2008

Special Vesting – You may be subject to the Special Vesting Dates described below if your
employment or service with Motorola or a Subsidiary (as defined below) terminates.

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

Expiration

All Options expire on the earlier of (1) the Date of Expiration as stated above or (2) any of the
Special Expiration Dates described below. Once an Option expires, you no longer have the right to
exercise it.

Special Vesting Dates and Special Expiration Dates

There are events that cause your Options to vest sooner than the Regular Vesting schedule discussed
above or to expire sooner than the Date of Expiration as stated above; provided, however, that for
purposes of this award, a termination of employment shall not include a change in your work
assignment from Executive Vice President and Acting Chief Financial Officer to any other position
in the Motorola Finance organization or on the Motorola Senior Leadership Team or as a consultant
to the CEO or any member of the Senior Leadership Team. Likewise for purposes of this agreement, a
termination of employment shall not include a change in your employment status from a full-time
employee to either a non-employee consultant to the Company or a non-employee director of the
Company. The events are as follows:

     Disability – If your employment or service with Motorola or a Subsidiary is terminated because of
your Total and Permanent Disability (as defined below), Options that are not vested will automatically become fully vested upon your
termination of employment or service. All your Options will then expire on the earlier of the
first anniversary of your termination of
employment or service because of your Total and Permanent Disability or the Date of Expiration
stated above. Until that time, the Options will be exercisable by you or your guardian or legal
representative.

     Death – If your employment or service with Motorola or a Subsidiary is terminated because of your
death, Options that are not vested will
automatically become

 

 

fully vested upon your death. All your Options will then expire on the
earlier of the first anniversary of your death or the Date of Expiration stated above. Until that
time, with written proof of death and inheritance, the Options will be exercisable by your legal
representative, legatees or distributees.

Change In Control – If a Change in Control of the Company occurs, and the successor corporation
does not assume these Options or replace them with options that are at least comparable to these
Options, then: (1) all of your unvested Options will be fully vested and (2) all of your Options
will be exercisable until the Date of Expiration set forth above.

Further, with respect to any Options that are assumed or replaced as described in the preceding
paragraph, such assumed or replaced options shall provide that they will be fully vested and
exercisable until the Date of Expiration set forth above if you are involuntarily terminated (for a
reason other than Cause) or if you quit for Good Reason within 24 months of the Change in Control.
For purposes of this paragraph, the terms “Change in Control”, “Cause” and “Good Reason” are
defined in the Plan.

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

Change in Employment in Connection with a Divestiture – If you accept employment with another
company in direct connection with the sale, lease, outsourcing arrangement or any other type of
asset transfer or transfer of any portion of a facility or any portion of a discrete organizational
unit of Motorola or a Subsidiary, or if you remain employed by a Subsidiary that is sold or whose
shares are distributed to the Motorola stockholders in a spin-off or similar transaction (a
“Divestiture”), all of your unvested Options will automatically expire upon termination of your
employment with Motorola, and all of your vested but not yet exercised Options will expire on the
Date of Expiration stated above.

Termination of Employment or Service by Motorola or a Subsidiary Other than for Serious Misconduct
or a Divestiture– If Motorola or a Subsidiary on its initiative, terminates your employment or
service other than for Serious Misconduct or a Divestiture, all of your unvested Options will
automatically expire upon termination and all of your vested but not yet exercised Options will
expire on the Date of Expiration stated above.

Termination of Employment or Service for any Other Reason than Described Above – If your employment
or service with Motorola or a Subsidiary terminates for any reason other than that described above,
including voluntary resignation of your employment or service, all of your unvested Options will
automatically expire upon termination of your employment or service and all of your vested but not
yet exercised Options will expire on the Date of Expiration stated above.

Leave of Absence/Temporary Layoff

If you take a Leave of Absence from Motorola or a Subsidiary that your employer has approved in
writing in accordance with your employer’s Leave of Absence Policy and which does not constitute a
termination of employment as determined by Motorola, or you are placed on Temporary Layoff (as
defined below) by Motorola or a Subsidiary the following will apply:

Vesting of Options – Options will continue to vest in accordance with the vesting schedule set
forth above.

Exercising Options – You may exercise Options that are vested or that vest during the Leave of
Absence or Temporary Layoff.

Effect of Termination of Employment or Service – If your employment or service is terminated during
the Leave of Absence or Temporary Layoff, the treatment of your Options will be determined as
described under “Special Vesting Dates and Special Expiration Dates” above.

Other Terms

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

- 18 -

 

Transferability – Except to the extent provided by the Committee, Options are not transferable
other than by will or the laws of descent and distribution.

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

Definition of Terms

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

“Confidential Information” means information concerning the Company and its business that is not
generally known outside the Company, and includes (A) trade secrets; (B) intellectual property; (C)
the Company’s methods of operation and Company processes; (D) information regarding the Company’s
present and/or future products, developments, processes and systems, including invention
disclosures and patent applications; (E) information on customers or potential customers, including
customers’ names, sales records, prices, and other terms of sales and Company cost information; (F)
Company personnel data; (G) Company business plans, marketing plans, financial data and
projections; and (H) information received in confidence by the Company from third parties.
Information regarding products, services or technological innovations in development, in test
marketing or being marketed or promoted in a discrete geographic region, which information the
Company or one of its affiliates is considering for broader use, shall be deemed generally known
until such broader use is actually commercially implemented.

“Fair Market Value” is the closing price for a share of Motorola common stock on the date of grant
or date of exercise, whichever is applicable. The official source for the closing price is the New
York Stock Exchange Composite Transaction as reported in the Wall Street Journal, Midwest edition.

“Serious Misconduct” means any misconduct identified as a ground for termination in the Motorola
Code of Business Conduct, or the human resources policies, or other written policies or procedures.

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

“Total and Permanent Disability” means for (x) U.S. employees, entitlement to long-term disability
benefits under the Motorola Disability Income Plan, as amended and any successor plan or a
determination of a permanent and total disability under a state workers compensation statute and
(y) non-U.S. employees, as established by applicable Motorola policy or as required by local
regulations.

“Temporary Layoff” means a layoff or redundancy that is communicated as being for a period of up to
twelve months and as including a right to recall under defined circumstances.

Consent to Transfer Personal Data

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

- 19 -

 

any shares of stock acquired pursuant to the Plan. You may, at any time, review Data, require any
necessary amendments to it or withdraw the consents herein in writing by contacting Motorola;
however, withdrawing your consent may affect your ability to participate in the Plan.

Acknowledgement of Discretionary Nature of the Plan; No Vested Rights

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

No Relation to Other Benefits/Termination Indemnities

Your acceptance of this award and participation under the Plan is voluntary. The value of your
stock option awarded herein is an extraordinary item of compensation outside the scope of your
employment contract, if any. As such, the stock option is not part of normal or expected
compensation for purposes of calculating any severance, resignation, redundancy, end of service
payments, bonuses, long-service awards, pension, or retirement benefits or similar payments,
notwithstanding any provision of any compensation, insurance agreement or benefit plan to the
contrary.

Agreement Following Termination of Employment

As a further condition of accepting the Options, you acknowledge and agree that for a period of one
year following your termination of employment or service, you will not hire, recruit, solicit or
induce, or cause, allow, permit or aid others to hire, recruit, solicit or induce, or to
communicate in support of those activities, any employee of Motorola or a Subsidiary who possesses
Confidential Information of Motorola or a Subsidiary to terminate his/her employment with Motorola
or a Subsidiary and/or to seek employment with your new or prospective employer, or any other
company.

You agree that upon termination of employment with Motorola or a Subsidiary, and for a period of
one year thereafter, you will immediately inform Motorola of (i) the identity of your new employer
(or the nature of any start-up business or self-employment), (ii) your new title, and (iii) your
job duties and responsibilities. You hereby authorize Motorola or a Subsidiary to provide a copy
of this Award Document to your new employer. You further agree to provide information to Motorola
or a Subsidiary as may from time to time be requested in order to determine your compliance with
the terms hereof.

Substitute Stock Appreciation Right

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

Acceptance of Terms and Conditions

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

Other Information about Your Options and the Plan

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

- 20 -EX-10.2 RETIREMENT PLAN FOR DIRECTORS

 

Exhibit 10.9

COMMUNITY BANK OF TRI-COUNTY

RETIREMENT PLAN FOR DIRECTORS

(As amended and restated effective January 1, 2007)

     This Community Bank of Tri-County Retirement Plan for Directors, originally effective
as of January 1, 1995, is hereby amended and restated in its entirety effective as of
January 1, 2007.

ARTICLE I

Definitions

     1.1 “Agreement” shall mean the Deferred Compensation Agreement attached hereto as
Exhibit A.

     1.2 “Bank” shall mean Community Bank of Tri-County, or any successor thereto.

     1.3 “Beneficiary” shall mean the Participant’s beneficiary designated pursuant to
Article 5 of the Plan.

     1.4 “Benefit Percentage” shall be determined based on the Participant’s completed
calendar years of service on the Board as a Director, whether before or after the Effective
Date, and shall be determined according to the following schedule:

	 	 	 	 	 
	     Participant's	 	Participant's
	Full Years of Service	 	Benefit Percentage
	     Less than 5
	 	 	0	%
	         5 to 9
	 	 	33-1/3	%
	       10 to 14
	 	 	66-2/3	%
	     15 or More
	 	 	100	%

     1.5 “Board” shall mean the Board of Directors of the Bank.

     1.6 “Cause” shall mean removal of a Director from service due to the following:

(i) indictment for, or conviction of, a criminal offense involving dishonesty or breach of
trust resulting in a potential or actual penalty of imprisonment for one year or more;

(ii) the issuance by a banking agency of a cease and desist order for conduct involving
dishonesty or breach of trust that is final and not subject to appeal; or

(iii) a finding by a regulatory agency whose decision is final of a violation of any law,
rule or regulation governing banking, securities, commodities or insurance, or any final
cease and desist order issued by a banking, securities, commodities or insurance regulatory
agency.

 

 

     1.7 “Change in Control” shall mean the occurrence of any of the following:

(i) Merger: The Company merges into or consolidates with another corporation, or merges
another corporation into the Company and as a result less than a majority of the combined
voting power of the resulting corporation immediately after the merger or consolidation is
held by persons who were stockholders of the Company immediately before the merger or
consolidation;

(ii) Acquisition of Significant Share Ownership: A report on Schedule 13D or another form
or schedule (other than Schedule 13G) is filed or is required to be filed under Sections
13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses
that the filing person or persons acting in concert has or have become the beneficial
owner(s) of 25% or more of a class of the Company’s voting securities, but this clause (b)
shall not apply to beneficial ownership of Company voting shares held in a fiduciary
capacity by an entity of which the Company directly or indirectly beneficially owns fifty
percent (50%) or more of its outstanding voting securities;

(iii) Change in Composition of the Board of Directors: During any period of two consecutive
years, individuals who constitute the Company’s Board of Directors at the beginning of the
two-year period cease for any reason to constitute at least a majority of the Company’s
Board of Directors; provided, however, that for purposes of this clause (iii) each director
who is first elected by the board (or first nominated by the board for election by the
stockholders) by a vote of at least three-fourths (3/4) of the directors who were directors
at the beginning of the period shall be deemed to have been a director at the beginning of
the two-year period; or

(iv) Sale of Assets: The Company sells to a third party all or substantially all of its
assets.

Notwithstanding anything herein to the contrary, the definition of Change of Control under
this Plan shall be interpreted in accordance with Section 409A of the Internal Revenue Code
of 1986 and any regulations issued thereunder, as amended from time to time.

1.8 “Code” shall mean the Internal Revenue Code of 1986, as amended.

1.9 “Company” shall mean Tri-County Financial Corporation, or any successor thereto.

1.10 “Deferral Account” shall have the meaning set forth in Section 5.2 of Article V of the
Plan.

1.11 “Director” shall mean a member of the Board of Directors of the Bank and/or the
Company.

     1.12 “Disability” means a Director’s inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be

2

 

expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

     1.13 “Effective Date” shall have the meaning set forth in Article XVIII.

     1.14 “Participant” means anyone who is a Director at any time on or after the
Effective Date (whether or not the Director is also an Employee).

     1.15 “Plan” shall mean this Community Bank of Tri-county Retirement Plan for
Directors.

     1.16 “Surviving Spouse” shall mean the spouse of a Director at the time of the
Director’s death, provided the Director and spouse are not then legally separated or
divorced.

     1.17 “Vested Percentage” shall be determined based on the number of the Participant’s
full years of service as a Director, and shall be determined according to the following
schedule:

	 	 	 	 	 
	Participant's	 	Participant's
	Full Years of Service	 	Benefit Percentage
	Less than 1
	 	 	33-1/3	%
	1
	 	 	66-2/3	%
	2 or more
	 	 	100	%

Notwithstanding the foregoing, a Participant’s Vested Percentage shall increase to 100% in
the event he or she separates from service for any reason after
attaining age 72 or
incurring a Disability, as determined by the Board.

ARTICLE II

Retirement Benefits

     2.1 In the event of a Participant’s separation from service for any reason other than
cause, death or Disability, the Participant shall be entitled to receive an annual benefit
for ten (10) years in an amount equal to the product of (i) the Participant’s Benefit
Percentage, (ii) the Participant’s Vested Percentage, and (iii) $3,500 (subject to
adjustment by the Board). The payments due under this Article shall begin on the first day
of the second month following the date of the Participant’s separation from service, and
shall thereafter be made on the annual anniversary dates of the initial payment date. Except
as provided in Article IV, no retirement benefits shall be payable hereunder after the death
of the Participant.

3

 

     2.2 Notwithstanding anything in the Plan to the contrary, no benefits shall be payable
under this Article II following a Participant’s termination of service for Cause.

     2.3 Unless otherwise addressed pursuant to an employment agreement between a
Participant and the Company and/or the Bank in effect at the time of a Change in Control,
benefits payable under Article II of the Plan in connection with a Change in Control shall
be reduced to the extent necessary to ensure compliance with Section 280G of the Code, as
amended, or any successor thereto.

ARTICLE III

Disability Benefits

     3.1 In the event that a Participant terminates service due to Disability, the
Participant shall receive an annual benefit for ten years in an amount equal to the product
of (i) the Benefit Percentage and (ii) $3,500 (subject to adjustment by the Board) as of the
1st day of the year in which the Participant terminates service due to
Disability. The payments due under this Article III shall begin on the first day of the
second month following the date of the Participant’s termination of service, and shall
thereafter be made on the annual anniversary dates of the initial payment date. Except as
provided in Article IV, no Disability benefits shall be payable hereunder after the death of
the Participant.

ARTICLE IV

Death Benefit_

     4.1 In the event that a Participant dies before collecting any of the benefits
provided under Articles II or III, the Participant’s Surviving Spouse, or if none, the
Participant’s estate, shall be entitled to receive a lump sum payment having a present value
equal to five (5) times the annual amount that the Participant would have received under
Article II if the Participant had both separated from service on the date of death and had a
Vested Percentage equal to 100%. Payment of the death benefit shall be made on or before
the first day of the second month following the date of the Participant’s death.

     4.2 In the event that a Participant dies after commencing to receive the benefits
provided under Article II or III, the Participant’s Surviving Spouse, or if none, the
Participant’s estate, shall be entitled to receive a lump sum payment having a present value
equal to the payments that the Participant would have received if the Participant had
survived to collect all benefits that would have been paid under Article II or III, as
applicable, from the date of the Participant’s death through the date on which the
Participant would have received the fifth annual payment otherwise payable under Article II
or III, as applicable. Payment of the applicable benefit shall be made on or before the
first day of the second month following the date of the Participant’s death.

4

 

ARTICLE V

Deferred Compensation

     This Article of the Plan establishes a deferred compensation program for Participants,
subject to the terms and conditions set forth below.

     5.1 A Plan Participant may elect to defer all or any portion of the fees and/or salary
otherwise payable from the Bank and/or Company, in cash, for any calendar year in which the
Plan is in effect. Deferral elections under the Plan for a given calendar year shall be made
no later than December 31st of the preceding calendar year or, for new
Participants, within thirty (30) days of initial eligibility to participate in the Plan.
Deferral elections, once made, shall continue in effect for subsequent calendar years unless
a Participant files a new Agreement prior to December 31 of the year prior to the calendar
year in which the change will take place. A subsequent deferral election will only become
effective as of the following January 1st.

     5.2 Deferred amounts shall be credited by the Bank and the Company as of the end of
each calendar quarter, in accordance with the Participant’s deferral election under the
Agreement. The deferred amounts shall be credited to a bookkeeping account (“Deferral
Account”) established in the name of each Participant, in accordance with the terms of the
Participant’s deferral election.

     5.3 In addition to the funds credited quarterly to the Deferral Accounts of
Participants, each Deferral Account shall be adjusted as of the end of each calendar year by
an amount equal to the consolidated ROE of the Company, as determined in accordance with
generally accepted accounting principles (GAAP), which rate shall be adjusted as of each
subsequent January 1st.

     5.4 A Participant’s Deferral Account shall be paid in the form of (1) a lump sum
distribution or (2) equal installments over a period from one to five years, as elected by
the Participant. Payment shall commence on or before the January 15th
immediately following the calendar year in which a Participant separates from service or on
the date designated by the Participant in the Agreement. Notwithstanding the foregoing, a
Participant’s Deferral Account will be paid to the Participant (or his Beneficiary or
estate) in a lump sum as soon as practicable following the effective date of a Change in
Control.

     5.5 Upon the death of a Participant prior to receipt of all benefits payable under
this Article, then such payment(s) shall be made in accordance with the Participant’s
previous distribution election to the Beneficiary designated by the Participant in his or
her Agreement (and in the absence of a validly designated Beneficiary, to the Participant’s
estate).

     5.6 Agreements made hereunder shall be prospective only and shall be irrevocable with
respect to amounts deferred pursuant to the Agreement. Participants may not change a
previously scheduled distribution election, unless such change is made
in accordance with Section 409A of the Code. Notwithstanding the foregoing, a
Participant may at any time and from time to time (i) change the Beneficiary designated in
paragraph 3 of the Agreement, and/or (ii) change the deferral amounts for a subsequent
calendar year in accordance with Section 5.1 of the Plan.

5

 

ARTICLE VI

Source and Form of Benefits

     6.1 The Plan shall constitute an unfunded, unsecured promise to provide benefits in
the future, to the extent such benefits become payable. Benefits shall be paid from the
general assets of the Bank or Company, and no person shall, by virtue of this Plan, have any
interest in such assets (other than as an unsecured creditor). In the event that a trust is
established as described herein at Article IX, the trustee of such trust shall inform the
Board annually prior to the commencement of each fiscal year as to the manner in which such
trust assets shall be invested.

     6.2 Notwithstanding anything herein to the contrary, to the extent required by Section
409A of the Code and the regulations issued thereunder, benefits payable under the Plan to
any Participant who is a “specified employee” for purposes of Section 409A of the Code shall
be delayed for a period of six months from the otherwise applicable distribution date.

ARTICLE VII

Assignment

     7.1 Except as otherwise provided by this Plan, it is agreed that neither the
Participant, nor any other person or persons, shall have any right to commute, sell, assign,
transfer, encumber, pledge or otherwise convey the right to receive any benefits under this
Plan.

ARTICLE VIII

No Retention of Services

     8.1 The benefits payable under this Plan shall be independent of, and in addition to,
any other compensation payable to a Participant, whether fees, bonus, retirement income
under employee benefit plans sponsored or maintained by the Bank or the Company, or
otherwise. This Plan shall not be deemed to constitute a contract of employment between the
Bank or the Company and any Participant.

ARTICLE IX

Rights of Participants

     9.1 The rights of the Participants under this Plan shall be solely those of unsecured
creditors. In the event that the Bank or the Company establish an irrevocable trust in
connection with the Plan (“Trust”), the trust assets shall remain at all times subject to
claims by their general creditors in accordance with applicable law.

ARTICLE X

Automatic Cash-Out Upon a Change in Control

     10.1 The provisions of this Article shall supersede any provisions of this Plan to the
contrary. In the event of a Change in Control while a Participant is serving as a Director,
the Participant’s Vested Percentage shall become 100%, and the present value of his benefits
shall

6

 

be due and payable to the Participant (or, in the event of his death, his Surviving
Spouse (for benefits pursuant to Article II of the Plan) or designated Beneficiary (for
benefits pursuant to Article V of the Plan), or, if none, to his estate) in one lump sum
payment within 10 days following such Change in Control. In the event of a Change in Control
after a Participant terminates service, the present value of any benefits not yet paid to
the Participant (or his Surviving Spouse, designated Beneficiary or his estate, as
applicable, in the event of his death) shall be due and payable to the Participant (or his
Surviving Spouse, designated Beneficiary or estate, as applicable in the event of his death)
in one lump-sum payment within ten (10) days following the Change in Control.

ARTICLE XI

Reorganization

     11.1 The Bank agrees that it will not merge or consolidate into any other corporation
or organization, or permit its business activities to be taken over by any other
organization, unless and until the succeeding or continuing corporation or other
organization shall expressly assume the rights and obligations of the parties as herein set
forth. The Bank further agrees that it will not cease its business activities or terminate
its existence, other than as heretofore set forth in this paragraph, without having made
adequate provision for the fulfillment of obligations under the Plan.

ARTICLE XII

Amendment and Termination

     12.1 The Board may amend or terminate the Plan at any time; provided, however, that no
amendment or termination shall, without the written consent of the affected Participants,
alter or impair any rights of Participants under the Plan.

ARTICLE XIII

Governing Law

     13.1 This Plan shall be construed and governed in all respects under and by the laws
of the State of Maryland. If any provision of this Plan shall be held by a court of
competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall
continue to be fully effective.

ARTICLE XIV

Headings

     14.1 Headings and subheadings in this Plan are inserted for convenience of reference
only and constitute no part of this Plan.

7

 

ARTICLE XV

Gender

     15.1 This Plan shall be construed, where required, so that the masculine gender
includes the feminine.

ARTICLE XVI

Interpretation of the Plan

     16.1 The Board shall have sole and absolute discretion to administer, construe, and
interpret the Plan, and the decisions of the Board shall be conclusive and binding on all
affected parties.

ARTICLE XVII

Legal Fees

     17.1 In the event any dispute shall arise between a Participant and the Bank or the
Company as to the terms or interpretation of this Plan, whether instituted by formal legal
proceedings or otherwise, including any action taken by a Participant to enforce the terms
of this Plan or in defending against any action taken by the Bank or the Company, the Bank
or the Company shall reimburse the Participant for all costs and expenses, including
reasonable attorneys’ fees, arising from such dispute, proceedings or actions: provided that
the Participant shall return such amounts to the Bank or Company if he fails to obtain a
final judgment by a court of competent jurisdiction (or a settlement of such dispute,
proceedings, or actions) substantially in his favor. Such reimbursements to a Participant
shall be paid within 10 days of the Participant furnishing written evidence, which may be in
the form, among other things, of a canceled check or receipt, of any costs or expenses
incurred by the Participant. Any such request for reimbursement by a Participant shall be
made no more frequently than at 30 day intervals.

ARTICLE XVIII

Effective Date; Section 409A Compliance

     18.1 The effective date of this restatement of the Plan shall be January 1, 2007.
Unless terminated earlier in accordance with Article XII, this Plan shall remain in effect
during the term of service of the Participants and until all benefits payable hereunder have
been made.

     Notwithstanding anything in this Plan to the contrary, the Plan and Agreements issued under the
Plan shall be interpreted in accordance with, and incorporate the terms and conditions required by,
Section 409A of the Code, together with any guidance issued thereunder, including guidance issued
after the effective date of the Plan. The Board reserves the right, in its discretion, to adopt
such amendments to the Plan and other policies and procedures (including amendments, policies
and procedures with retroactive effect), or to take any other actions the Board determines to be
necessary or appropriate to comply with the requirements of Section 409A of the Code.

8

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