Document:

Registration Rights Agreement

 Exhibit 10.15 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered into as of July 18, 2004,
between Motorola, Inc., a Delaware corporation (“Motorola”), and Freescale Semiconductor, Inc., a Delaware corporation (the “Company”). 
  
 WHEREAS, Motorola and the Company have entered into a Master Separation and Distribution Agreement (the “Separation
and Distribution Agreement”) and certain ancillary agreements; 
  
 WHEREAS, Motorola currently owns all of the issued and outstanding shares of the Class B common stock, par value $.01, of the Company (the “Class B Common Stock”); 
  
 WHEREAS, the Company is offering and selling to the public (the
“IPO”) by means of a Registration Statement 
 (File No. 333-111250) initially filed with the Securities and Exchange Commission (the
“SEC”) on Form S-1 on December 17, 2003 (the “Registration Statement”) shares of Class A common stock, par value $.01, of the Company (the “Class A Common Stock,” and together with the Class B
Common Stock, the “Common Stock”); 
  
 WHEREAS,
Motorola currently intends to evaluate its strategic options with respect to its entire ownership interest in the Company remaining after the IPO; and 
  
 WHEREAS, Motorola and the Company desire to make certain arrangements to provide Motorola with registration rights with respect to shares of Common Stock
it holds; 
  
 NOW THEREFORE, in consideration of the mutual
covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and intending to be legally bound hereby, the parties hereby agree as follows: 
  
 Section 1. Effectiveness of Agreement; Term. 
  

	1.1	Effective Date. This Agreement shall become effective upon the consummation of the IPO (the “Effective Date”). 

  

	1.2	Shares Covered. This Agreement covers all shares of Common Stock that are beneficially owned by Motorola or any Permitted Transferee (as defined in Section 2.5) from
time to time, whether or not held immediately following the IPO (subject to the provisions of Section 7, the “Shares”). The Shares shall include any securities issued or issuable with respect to the Shares by way of a stock
dividend or a stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. 

  
 Motorola and any Permitted Transferees are each referred to herein as a “Holder” and collectively as the “Holders” and
the Holders of Shares proposed to be included in any registration under this Agreement are each referred to herein as a “Selling Holder” and collectively as the “Selling Holders.” 

 Section 2. Demand Registration. 
  

	2.1	Notice. Upon the terms and subject to the conditions set forth herein, upon written notice of any Holder requesting that the Company effect the registration under the
Securities Act of 1933, as amended (the “Securities Act”), of any or all of the Shares held by it, which notice shall specify the intended method or methods of disposition of such Shares (which methods may include, without
limitation, a Shelf Registration, a Convertible Registration or an Exchange Registration (as such terms are defined in Section 2.6)), the Company will, within five days of receipt of such notice from any Holder, give written notice of the
proposed registration to all other Holders, if any, and will use its best efforts to effect (at the earliest reasonable date) the registration under the Securities Act of such Shares (and the Shares of any other Holders joining in such request as
are specified in a written notice received by the Company within 15 days after receipt of the Company’s written notice of the proposed registration) for disposition in accordance with the intended method or methods of disposition stated in such
request (each registration request pursuant to this Section 2.1 is sometimes referred to herein as a “Demand Registration”); provided, however, that: 

  
 (a) The Company shall not be obligated to effect registration with respect to
Shares pursuant to this Section 2 within 90 days after the effective date of a previous registration, other than a Shelf Registration, effected with respect to Shares pursuant to this Section 2; 
  
 (b) if at the time a Demand Registration is requested pursuant to this
Section 2, the Company determines in the good faith judgment of the general counsel of the Company, to be confirmed within 15 days by the Company’s board of directors (the “Board”), that such registration would
reasonably be expected to require the disclosure of material information that the Company has a bona fide business purpose to keep confidential and the disclosure of which would have a material adverse effect on any active proposal by the Company or
any of its subsidiaries to engage in any material acquisition, merger, consolidation, tender offer, other business combination, reorganization, securities offering or other material transaction, the Company may postpone the filing or effectiveness
of such registration until the earlier of (i) 15 business days after the date of disclosure of such material information, or (ii) 75 days after the Company makes such determination; provided, however, that the Company may delay a
Demand Registration hereunder only once in any 12 month period; 
  
 (c) except in the case of a Convertible Registration or an Exchange Registration, the number of the Shares originally requested to be registered pursuant to any registration requested pursuant to this Section 2 shall cover Shares
representing more than 10% of the total shares of Common Stock then outstanding held by the Holders; 
  
 (d) if a Demand Registration is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of
Shares requested to be included in such offering exceeds the number of Shares which can be sold in an orderly manner in such offering within a price range acceptable to the Holders of a majority of the Shares initially requesting such registration
or without materially adversely affecting the market for the Common Stock, the Company shall include in such registration the number of Shares requested by Holders of a majority of the Shares to be included therein which, in the opinion of such
Holders based upon advice of the managing underwriters, can be sold in an orderly manner 
  

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 within the price range of such offering and without materially adversely affecting the market for the Common Stock, pro
rata among the respective Holders thereof on the basis of the amount of Shares owned by each Holder requesting inclusion of Shares in such registration; and 
  
 (e) The Company shall not be required to effect more than 10 Demand Registrations pursuant to this Section 2.1; provided, however,
that the foregoing limitation shall not be effective if, at the time of the 10th Demand Registration, the Company is
prohibited under then-existing SEC rules from registering all remaining Shares pursuant to a Shelf Registration, regardless of whether the Holder or Holders has requested that such 10th Demand Registration be a Shelf Registration or otherwise. 
  

	2.2	Registration Expenses. All Registration Expenses (as defined in Section 8) for any registration requested pursuant to this Section 2 (including any
registration that is delayed or withdrawn) shall be paid by the Company; provided, however, that the expenses of a Demand Registration made in connection with a Distribution (as defined in the Separation and Distribution Agreement)
shall be borne by the Holder or Holders. 

  

	2.3	Selection of Professionals. The Holders of a majority of the Shares included in any Demand Registration shall have the right to select the investment banker(s) and manager(s)
to underwrite or otherwise administer the offering. The Holders of a majority of the Shares included in any Demand Registration shall have the right to select the financial printer, the solicitation and/or exchange agent (if any) and one counsel for
the Selling Holders. The Company shall select its own outside counsel and independent auditors. 

  

	2.4	Third Person Shares. The Company shall have the right to cause the registration of securities for sale for the account of any Person (as defined in Section 6(e))
(including the Company) other than the Selling Holders (the “Third Person Shares”) in any registration of the Shares requested pursuant to this Section 2 so long as the Third Person Shares are disposed of in accordance with
the intended method or methods of disposition requested pursuant to this Section 2; provided, however, that the Company shall not have the right to cause the registration of such securities of such other Persons if the
registration requested pursuant to this Section 2 is a Convertible Registration or an Exchange Registration. 

  
 If a Demand Registration in which the Company proposes to include Third Person Shares is an underwritten offering and the managing underwriters advise the
Company in writing that in their opinion the number of Shares and Third Person Shares requested to be included in such offering exceeds the number of Shares and Third Person Shares which can be sold in an orderly manner in such offering within a
price range acceptable to the Holders of a majority of the Shares initially requesting such registration or without materially adversely affecting the market for the Common Stock (the “Maximum Number”), the Company shall not include
in such registration any Third Person Shares unless all of the Shares initially requested to be included therein are so included, and then only to the extent of the Maximum Number. 
  

	2.5	Permitted Transferees. As used in this Agreement, “Permitted Transferees” shall mean any transferee, whether direct or indirect, of Shares designated by
Motorola (or a subsequent Holder) in a written notice to the Company as provided for in Section 9.3. Any Permitted Transferees of the Shares shall be subject to and bound by all of the terms and conditions 

  

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 herein applicable to Holders. The notice required by this Section 2.5 shall be signed by both the
transferring Holder and the Permitted Transferees so designated and shall include an undertaking by the Permitted Transferees to comply with the terms and conditions of this Agreement applicable to Holders. 
  

	2.6	Shelf Registration; Convertible Registration; Exchange Registration; Distribution. With respect to any Demand Registration, the requesting Holders may request the Company to
effect a registration of the Shares (a) under a registration statement pursuant to Rule 415 under the Securities Act (or any successor rule) (a “Shelf Registration”); (b) in connection with such Holders’ registration under the
Securities Act of securities (the “Convertible Securities”) convertible into, exercisable for or otherwise related to the Shares (a “Convertible Registration”); or (c) in connection with such Holders’
distribution of, or exchange of or offer to exchange the Shares for any debt or equity securities of such Holders, a subsidiary or affiliate thereof or any other Person (an “Exchange Registration”) or (d) in the form of a
Distribution as defined in the Separation and Distribution Agreement. 

  

	2.7	SEC Form. The Company shall use its best efforts to cause Demand Registrations to be registered on Form S-3 (or any successor form), and if the Company is not then eligible
under the Securities Act to use Form S-3, Demand Registrations shall be registered on Form S-1 (or any successor form). If a Demand Registration is a Convertible Registration or an Exchange Registration, the Company shall effect such registration on
the appropriate Form under the Securities Act for such registrations. The Company shall use its best efforts to become eligible to use Form S-3 and, after becoming eligible to use Form S-3, shall use its best efforts to remain so eligible. All such
Demand Registrations shall comply with applicable requirements of the Securities Act and the SEC’s rules and regulations thereunder, and, together with each prospectus included, filed or otherwise furnished by the Company in connection
therewith, shall not contain any untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Company shall timely file all reports on Forms 10-K,
10-Q and 8-K (or any successor forms), and all material required to be filed, pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to the extent that such filing shall be a condition to initial filing or
continued use or effectiveness of any Demand Registration. 

  

	2.8	Other Registration Rights. The Company shall not grant to any Persons the right to request the Company to register any equity securities of the Company, or any securities
convertible or exchangeable into or exercisable for such securities, whether pursuant to “demand,” “piggyback,” or other rights, unless such rights are subject and subordinate to the rights of the Holders under this Agreement.

  

	2.9	Withdrawal. The Holders may withdraw a Demand Registration at any time and under any circumstances. 

  
 Section 3. Piggyback Registrations. 
  

	3.1	Notice and Registration. If the Company proposes to register any of its securities for public sale under the Securities Act (whether proposed to be offered for sale by the

  

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 Company or any other Person), on a form and in a manner which would permit registration of the Shares for
sale to the public under the Securities Act (a “Piggyback Registration”), it will give prompt written notice to the Holders of its intention to do so, and upon the written request of any or all of the Holders delivered to the
Company within 20 days after the giving of any such notice (which request shall specify the Shares intended to be disposed of by such Holders), the Company will use its best efforts to effect, in connection with the registration of such other
securities, the registration under the Securities Act of all of the Shares which the Company has been so requested to register by such Holders (which shall then become Selling Holders), to the extent required to permit the disposition (in accordance
with the same method of disposition as the Company proposes to use to dispose of the other securities) of the Shares to be so registered; provided, however, that: 
  
 (a) if, at any time after giving such written notice of its intention to register any of its other securities and prior to
the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register such other securities, the Company may, at its election, give written notice of such
determination to the Selling Holders (or, if prior to delivery of the Holders’ written request described above in this Section 3.1, the Holders) and thereupon the Company shall be relieved of its obligation to register such Shares in
connection with the registration of such other securities (but not from its obligation to pay Registration Expenses to the extent incurred in connection therewith as provided in Section 3.3), without prejudice, however, to the rights (if any)
of any Selling Holders immediately to request (subject to the terms and conditions of Section 2) that such registration be effected as a registration under Section 2 or to include such Shares in any subsequent Piggyback Registration
pursuant to this Section 3; 
  
 (b) The Company shall not
be required to effect any registration of the Shares under this Section 3 incidental to the registration of any of its securities in connection with mergers, acquisitions, exchange offers, subscription offers, dividend reinvestment plans or
stock option or other employee benefit plans of the Company; and 
  
 (c) if a Piggyback Registration is an underwritten registration on behalf of the Company (whether or not selling security holders are included therein) and the managing underwriters advise the Company in writing that in their opinion the
number of securities requested to be included in such registration exceeds the number which can be sold in such offering without materially adversely affecting the marketability of the offering or the market for the Common Stock (the “Maximum
Number”), the Company shall include the following securities in such registration up to the Maximum Number and in accordance with the following priorities: (i) first, the securities the Company proposes to sell, (ii) second, up to the number of
Shares requested to be included in such registration, pro rata among the Selling Holders of such Shares on the basis of the number of Shares owned by each such Selling Holder, and (iii) third, up to the number of any other securities requested to be
included in such registration. 
  
 (d) No registration of the
Shares effected under this Section 3 shall relieve the Company of its obligation to effect a registration of Shares pursuant to Section 2. 
  
 (e) Any Selling Holder may withdraw any or all of its Shares from a Piggyback Registration at any time under any circumstances. 
  

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	3.2	Selection of Professionals. If any Piggyback Registration is an underwritten offering and any of the investment banker(s) or manager(s) selected to administer the offering
was not one of the joint book-running managers of the IPO, such investment banker or manager shall not administer such offering if the Holders of a majority of the Shares included in such Piggyback Registration reasonably object thereto. The Holders
of a majority of the Shares included in any Piggyback Registration shall have the right to select one counsel for the Selling Holders. The Company shall select its own outside counsel and independent auditors. 

  

	3.3	Registration Expenses. The Company will pay all of the Registration Expenses in connection with any registration pursuant to this Section 3. 

 

	Section	4. Registration Procedures. 

  

	4.1	Registration and Qualification. If and whenever the Company is required to use its best efforts to effect the registration of any of the Shares under the Securities Act as
provided in Sections 2 and 3, including an underwritten offering pursuant to a Shelf Registration, the Company will as promptly as is practicable (but in no event, in the case of the initial filing of the registration statement, later than 30
days after the date of a demand under Section 2 if the applicable registration form is Form S-3 or a successor form, and for any other form, 90 days from the date of such demand): 

  
 (a) prepare and file with the SEC a registration statement with respect to
such Shares and use its best efforts to cause such registration statement to become effective as soon as practicable after the initial filing thereof (provided that before filing a registration statement or prospectus or any amendments or supplement
thereto, the Company shall furnish to the counsel selected by the Holders of a majority of the Shares covered by such registration statement copies of all such documents proposed to be filed (which documents shall be subject to the review and
comment of such counsel)); 
  
 (b) except in the case of a Shelf
Registration, Convertible Registration or Exchange Registration, prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all of the Shares until the earlier of (i) such time as all of such Shares have been disposed of in accordance with the
intended methods of disposition set forth in such registration statement or (ii) the expiration of nine months after such registration statement becomes effective, plus the number of days that any filing or effectiveness has been delayed under
Section 2.1(b); 
  
 (c) in the case of a Shelf Registration (but
not including any Convertible Registration), prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement
effective and to comply with the provisions of the Securities Act with respect to the disposition of all Shares subject thereto for a period ending on the earlier of (i) 24 months after the effective date of such registration statement plus the
number of days that any 
  

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 filing or effectiveness has been delayed under Section 2.1(b) and/or suspended under Section 4.3(a), and (ii) the date on
which all the Shares subject thereto have been sold pursuant to such registration statement (the “Shelf Effective Period”); 
  
 (d) in the case of a Convertible Registration or an Exchange Registration, prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all of the Shares
subject thereto until such time as the rules, regulations and requirements of the Securities Act and the terms of the Convertible Securities no longer require such Shares to be registered under the Securities Act (the “Convertible Effective
Period”); 
  
 (e) furnish to the Selling Holders and to
any underwriter of such Shares such number of conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such
registration statement (including each preliminary prospectus and any summary prospectus), in conformity with the requirements of the Securities Act, such documents incorporated by reference in such registration statement or prospectus, and such
other documents as the Selling Holders or such underwriter may reasonably request; 
  
 (f) use its best efforts to register or qualify all of the Shares covered by such registration statement under such other securities or blue sky laws of such jurisdictions as the Selling Holders or any underwriter of
such Shares shall reasonably request, and do any and all other acts and things which may be necessary or advisable to enable the Selling Holders or any underwriter to consummate the disposition in such jurisdictions of the Shares covered by such
registration statement, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where it is not so qualified, or to subject itself to taxation in any such
jurisdiction, or to consent to general service of process in any such jurisdiction; 
  
 (g) (i) furnish to the Selling Holders, addressed to them, an opinion of counsel for the Company and (ii) use its best efforts to furnish to the Selling Holders, addressed to them, a “cold comfort” letter
signed by the independent public accountants who have certified the Company’s financial statements included in such registration statement, covering substantially the same matters with respect to such registration statement (and the prospectus
included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’ letters
delivered to underwriters in underwritten public offerings of securities and such other matters as the Selling Holders may reasonably request, in each case, in form and substance and as of the dates reasonably satisfactory to the Selling Holders;

  
 (h) immediately notify the Selling Holders, at any time when a
prospectus relating to a registration pursuant to Section 2 or 3 is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and at
the request of the 
  

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 Selling Holders prepare and furnish to the Selling Holders a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading. 
  
 (i) permit any Selling Holder(s) comprising holders of a majority of the Shares to be included in such
registration,            , in their sole and exclusive judgment, to participate in the preparation of such registration or comparable statement (including but not limited to having prompt
access to any SEC comment letters or other communications in connection with such registration and the Company’s responses thereto) and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable
judgment of such Selling Holder(s) and their counsel should be included; 
  
 (j) to make available members of management of the Company, as selected by the Holders of a majority of the Shares included in such registration, for assistance in the selling effort relating to the Shares covered by
such registration, including, but not limited to, the participation of such members of the Company’s management in road show presentations. 
  
 (k) in the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the
use of any related prospectus or suspending the qualification of any securities included in such registration statement for sale in any jurisdiction, the Company shall use it best efforts promptly to obtain the withdrawal of such order; and

  
 (l) use its best efforts to cause Shares covered by such
registration statement to be registered with or approved by such other government agencies or authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Shares. 
  
 The Company may require the Selling Holders to furnish the Company with such
information regarding the Selling Holders and the distribution of such Shares as the Company may from time to time reasonably request in writing and as shall be required by law, the SEC or any securities exchange on which any shares of Common Stock
are then listed for trading in connection with any registration. 
  

	4.2	Underwriting. If requested by the underwriters for any underwritten offering in connection with a registration requested hereunder (including any registration under
Section 3 which involves, in whole or in part, an underwritten offering), the Company will enter into an underwriting agreement with such underwriters for such offering, such agreement to contain such representations and warranties by the
Company and such other terms and provisions as are customarily contained in underwriting agreements with respect to that offering, including, without limitation, indemnities and contribution to the effect and to the extent provided in Section
6 and the provision of opinions of counsel and accountants’ letters to the effect and to the extent provided in Section 4.1(g). The Company may require that the Shares requested to be registered pursuant to Section 3 be
included in such underwriting on the same terms and conditions as shall be applicable to the other securities being sold 

  

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 through underwriters under such registration; provided, however, that no Selling Holder
shall be required to make any representations or warranties to the Company or the underwriters (other than representations and warranties regarding such Holder and such Holder’s intended method of distribution) or to undertake any
indemnification obligations to the Company or the underwriters with respect thereto, except as otherwise provided in Section 6 hereof. The Selling Holders shall be parties to any such underwriting agreement, and the representations and
warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters shall also be made to and for the benefit of such Selling Holders. 
  

	4.3	Blackout Periods for Shelf Registrations. 

  
 (a) At any time when a Shelf Registration effected pursuant to Section 2 relating to the Shares is effective, upon written notice from the Company
to the Selling Holders that the Company determines in the good faith judgment of the general counsel of the Company, to be confirmed within 15 days by the Board, that (i) the Selling Holders’ sale of the Shares pursuant to the Shelf
Registration would require disclosure of material information which the Company has a bona fide business purpose for preserving as confidential and the disclosure of which would have a material adverse effect on the Company or (ii) the Company is
unable to comply with SEC requirements for continued use or effectiveness of the Shelf Registration (in the case of either clause (i) or (ii), for convenience, referred to as an “Information Blackout”), the Selling Holders shall
suspend sales of the Shares pursuant to such Shelf Registration until the earlier of (A) the date upon which such material information is disclosed to the public or ceases to be material (or the Company otherwise complies with applicable SEC
requirements), (B) 90 days after the general counsel of the Company made such good faith determination (as subsequently confirmed by the Board) unless resuming use of the Shelf Registration is then prohibited by applicable SEC rules or published
interpretations, or (C) such time as the Company notifies the Selling Holders that sales pursuant to such Shelf Registration may be resumed (the number of days from such suspension of sales of the Selling Holders until the day when such sales may be
resumed hereunder is hereinafter called a “Sales Blackout Period”). 
  
 (b) If there is an Information Blackout and the Selling Holders do not notify the Company in writing of their desire to cancel such Shelf Registration, the period set forth in Section 4.1(c)(i) shall be
extended for a number of days equal to the number of days in the Sales Blackout Period. The fact that a Sales Blackout Period is required under this Section 4.3 or SEC rules shall not relieve the contractual duty of the Company as set forth in
Section 2.7 to file timely reports and otherwise file material required to be filed under the Exchange Act. 
  

	4.4	Listing and Other Requirements. In connection with the registration of any offering of the Shares pursuant to this Agreement, the Company agrees to use its best efforts to
effect the listing of such Shares on any securities exchange on which any shares of the Common Stock are then listed and otherwise facilitate the public trading of such Shares. The Company will take all other lawful actions reasonably necessary and
customary under the circumstances to expedite and facilitate the disposition by the Selling Holders of Shares registered pursuant to this Agreement as described in the prospectus relating thereto, including without limitation timely preparation and
delivery of stock certificates in appropriate denominations and furnishing any required instructions or legal opinions to the Company’s 

  

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 transfer agent in connection with Shares sold or otherwise distributed pursuant to an effective
registration statement. 
  

	4.5	Holdback Agreements. 

  
 (a) The Company shall not effect any public sale or distribution of its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and during the 90-day period beginning on the effective date of any registration statement in connection with a Demand Registration (other than a Shelf Registration) or a Piggyback
Registration, except pursuant to registrations on Form S-8 or any successor form or unless the underwriters managing any such public offering otherwise agree. 
  

(b) If the Holders of Shares notify the Company in writing that they intend to effect an underwritten sale of Shares registered pursuant to a Shelf
Registration pursuant to Section 2 hereof, the Company shall not effect any public sale or distribution of its equity securities, or any securities convertible into or exchangeable or exercisable for its equity securities, during the seven
days prior to and during the 90-day period beginning on the date such notice is received, except pursuant to registrations on Form S-8 or any successor form or unless the underwriters managing any such public offering otherwise agree. 
  
 (c) If the Company completes an underwritten registration with respect to any
of its securities (whether offered for sale by the Company or any other Person) on a form and in a manner that would have permitted registration of the Shares, if no Holder requested the inclusion of any Shares in such registration, and if the
Company gives each Holder at least 20 days prior written notice of the approximate date on which such offering is expected to be commenced, the Holders shall not effect any public sales or distributions of equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such securities, until the termination of the holdback period required from the Company by any underwriters in connection with such previous registration, provided that the holdback
period applicable to the Holders shall (i) in no event be longer than a period of 7 days before and 90 days after the effective date of such registration or apply to the Holders more than once in any 12 month period, (ii) not apply to any
Distribution under the Separation and Distribution Agreement, (iii) not apply to any securities of the Company acquired on the open market, (iv) not apply to any Holder owning less than 10% of the Company’s outstanding voting securities, and
(v) not apply unless all directors and officers of the Company and holders of 10% or more of the Company’s outstanding voting securities are bound by the same holdback restrictions as are intended to apply to the Holders. 
  
 Section 5. Preparation; Reasonable Investigation. In connection
with the preparation and filing of each registration statement registering the Shares under the Securities Act and each sale of the Shares thereunder, the Company will give the Selling Holders and the underwriters, if any, and their respective
counsel and accountants, access to its financial and other records, pertinent corporate documents and properties of the Company and such opportunities to discuss the business of the Company with its officers and the independent public accountants
who have certified its financial statements as shall be necessary, in the opinion of the Selling Holders and such underwriters or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act. 

 

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 Section 6. Indemnification and Contribution. 
  
 (a) In the event of any registration of any of the Shares hereunder, the
Company will enter into customary indemnification arrangements to indemnify and hold harmless each of the Selling Holders, each of their respective directors and officers, each Person who participates as an underwriter in the offering or sale of
such securities, each officer and director of each underwriter, and each Person, if any, who controls each such Selling Holder or any such underwriter within the meaning of the Securities Act (collectively, the “Covered Persons”)
against any losses, claims, damages, liabilities and expenses, joint or several, to which such Person may be subject under the Securities Act or otherwise insofar as such losses, claims, damages, liabilities or expenses (or actions or proceedings in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in any related registration statement filed under the Securities Act, any preliminary prospectus or final prospectus
included therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Company will reimburse each such Covered Person, as incurred, for any legal or any other expenses reasonably incurred by such Covered Person in connection with investigating or defending any such loss, claim,
liability, action or proceeding; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of
or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary prospectus or final prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such Selling Holder or such underwriter specifically for use in the preparation thereof. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of any such Covered Person and shall survive the transfer of such securities by the Selling Holders. In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (a) any Holder
exercising rights under this Agreement, or any controlling person of any such Holder, makes a claim for indemnification pursuant to this Section 6, but it is judicially determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 6 provides for indemnification in
such case, or (b) contribution under the Securities Act may be required on the part of any such Selling Holder or any such controlling person in circumstances for which indemnification is provided under this Section 6; then, and in each such
case, the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that such Holder is responsible for the portion represented
by the percentage that the public offering price of its Shares offered by and sold under the registration statement bears to the public offering price of all securities offered by and sold under such registration statement, and the Company and other
Selling Holders are responsible for the remaining portion; provided, however, that, in any such case: (i) no such Holder will be required to contribute any amount in excess of the net amount of proceeds of all such Shares offered and
sold by such Holder pursuant to such registration statement; and (ii) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be 
  

 -11- 

 entitled to contribution from any person or entity who was not guilty of such fraudulent
misrepresentation. 
  
 (b) Each of the Selling Holders, by virtue
of exercising its respective registration rights hereunder, agrees and undertakes to enter into customary indemnification arrangements to indemnify and hold harmless (in the same manner and to the same extent as set forth in clause (a) of this
Section 6) the Company, its directors and officers, each Person who participates as an underwriter in the offering or sale of such securities, each officer and director of each underwriter, and each Person, if any, who controls the Company or
any such underwriter within the meaning of the Securities Act, with respect to any statement in or omission from such registration statement, any preliminary prospectus or final prospectus included therein, or any amendment or supplement thereto, if
such statement or omission is contained in written information furnished by such Selling Holder to the Company specifically for inclusion in such registration statement or prospectus; provided, however, that the obligation to indemnify
shall be individual, not joint and several, for each Selling Holder and shall be limited to the net amount of proceeds received by such Selling Holder from the sale of Shares pursuant to such registration statement. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Company or any such director, officer or Person and shall survive the transfer of the registered securities by the Selling Holders. 
  
 (c) Any Person entitled to indemnification hereunder shall (i) give prompt
written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided, however, that the failure to give prompt notice shall not impair any Person’s rights to indemnification hereunder to
the extent such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the
indemnified party without the indemnifying party’s consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to (as a result of a conflict of interest, as determined in the indemnified party’s
reasonable judgment), or who elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. 
  
 (d) Indemnification and contribution similar to that specified in the preceding subdivisions of this Section 6 (with
appropriate modifications) shall be given by the Company and the Selling Holders with respect to any required registration or other qualification of such Shares under any federal or state law or regulation of governmental authority other than the
Securities Act. 
  
 (e) “Person” means an individual, a
partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity, or any department, agency or political subdivision thereof.

  

 -12- 

 Section 7. Benefits and Termination of Registration Rights. The Holders may exercise the
registration rights granted hereunder in such manner and proportions as they shall agree among themselves. The registration rights hereunder shall cease to apply to any particular Shares and such securities shall cease to be Shares when: (a) a
registration statement with respect to the sale of such Shares shall have become effective under the Securities Act and such Shares shall have been disposed of in accordance with such registration statement; (b) such Shares shall have been sold to
the public pursuant to Rule 144 under the Securities Act (or any successor provision); (c) such Shares shall have been otherwise transferred, new certificates for them not bearing a legend restricting further transfer shall have been delivered by
the Company and subsequent public distribution of them shall not require registration or qualification of them under the Securities Act or any similar state law then in force; (d) such Shares shall have ceased to be outstanding; or (e) in the case
of Shares held by a Permitted Transferee, when such Shares become eligible for sale pursuant to Rule 144(k) under the Securities Act (or any successor provision). 
  
 Section 8. Registration Expenses. As used in this Agreement, the term “Registration Expenses”
means all expenses incident to the Company’s performance of or compliance with the registration requirements set forth in this Agreement including, without limitation, the following: (a) the fees, disbursements and expenses of the
Company’s counsel and accountants in connection with the registration of the Shares to be disposed of under the Securities Act; (b) all expenses in connection with the preparation, printing and filing of the registration statement, any
preliminary prospectus or final prospectus, any other offering document and amendments and supplements thereto and the mailing and delivering of copies thereof to the underwriters and dealers and directly to securityholders in the case of an
Exchange Registration; (c) the cost of printing and producing any agreements among underwriters, underwriting agreements, and blue sky or legal investment memoranda, any selling agreements and any amendments thereto or other documents in connection
with the offering, sale or delivery of the Shares to be disposed of; (d) all expenses in connection with the qualification of the Shares to be disposed of for offering and sale under state securities laws, including the fees and disbursements of
counsel for the underwriters in connection with such qualification and in connection with any blue sky and legal investment surveys; (e) the filing fees incident to securing any required review by the New York Stock Exchange and any other securities
exchange on which the Common Stock is then traded or listed of the terms of the sale of the Shares to be disposed of and the trading or listing of all such Shares on each such exchange; (f) the costs of preparing stock certificates; (g) the costs
and charges of the Company’s transfer agent and registrar; and (h) the fees and disbursements of any custodians, solicitation agents, information agents and/or exchange agents. Registration Expenses shall not include underwriting discounts and
underwriters’ commissions attributable to the Shares being registered for sale on behalf of the Selling Holders, which shall be paid by the Selling Holders. 
  
 Section 9. Miscellaneous. 
  

	9.1	Entire Agreement. This Agreement, the Separation and Distribution Agreement, all the other Ancillary Agreements (as defined in the Separation and Distribution Agreement) and
all other Exhibits and Schedules attached hereto and thereto constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all 

  

 -13- 

 prior written and oral and all contemporaneous oral agreements and understandings with respect to the
subject matter hereof and thereof. 
  

	9.2	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware regardless of the laws that might otherwise govern under
principles of conflicts of laws applicable thereto. 

  

	9.3	Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, by telecopy with answer
back, by express or overnight mail delivered by a nationally recognized air courier (delivery charges prepaid), or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties as follows:

  
 if to Motorola: 
  
 Motorola, Inc. 
 1303 East Algonquin Road 
 Schaumburg, Illinois 60196 
 Attention:    General Counsel 
 Telecopy:    (847) 576-3628 
  

with a copy to: 
  
 Motorola, Inc. 
 1303 East Algonquin Road 
 Schaumburg, Illinois 60196 
 Attention:    Chief Financial Officer and Chief Accounting Officer 
 Telecopy:    (847) 576-4768 
  

if to the Company: 
  
 Freescale Semiconductor, Inc. 
 7700 West Parmer Lane 
 Austin, TX 78729 
 Attention:    General Counsel 
 Telecopy:    (512) 996-7697 
  

with a copy to: 
  
 Freescale Semiconductor, Inc. 
 6501 William Cannon Drive 
 Austin, Texas 78737 
 Attention:    Chief Financial Officer 
 Telecopy:    (512) 895-8696 
  

or to such other address as the party to whom notice is given may have previously furnished to the others in writing in the manner set forth above. Any notice or
communication delivered in 
  

 -14- 

 person shall be deemed effective on delivery. Any notice or communication sent by telecopy shall be
deemed effective on the day at the place such notice or communication is received if confirmed by return facsimile. Any notice or communication sent by air courier shall be deemed effective on the day at the place at which such notice or
communication is received if delivery is confirmed by the air courier. Any notice or communication sent by registered or certified mail shall be deemed effective on the fifth Business Day (as defined below) at the place from which such notice or
communication was mailed following the day on which such notice or communication was mailed. “Business Day” means any day other than a Saturday, a Sunday, or a day on which banking institutions located in Chicago, Illinois are
authorized or obligated by law or executive order to close. 
  

	9.4	Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their legal representatives and successors, and each
affiliate of the parties hereto, and nothing in this Agreement, express or implied, is intended to confer upon any other Person, other than any Permitted Transferee, any rights or remedies of any nature whatsoever under or by reason of this
Agreement. 

  

	9.5	Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.

  

	9.6	Assignment. This Agreement may not be assigned by any party hereto other than by Motorola to a Permitted Transferee as provided for in Section 2.5; provided,
further, that Motorola may assign this Agreement in connection with the sale of all or substantially all of its assets. 

  

	9.7	Amicable Resolution. Motorola and the Company mutually desire that friendly collaboration will continue between them. Accordingly, they will try to resolve in an amicable
manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement
(“Dispute”) between Motorola and the Company as to the interpretation of any provision of this Agreement (or the performance of obligations hereunder), the matter, upon written request of either party, will be referred for
resolution to a steering committee established pursuant to the Separation and Distribution Agreement (the “Steering Committee”) and treated as a “Dispute” under the applicable provisions of the Separation and Distribution
Agreement concerning the Steering Committee. For purposes of this Section 9.7, the Steering Committee shall be governed by and its decisions will have the effect, if any, set forth in the applicable provisions of the Separation and
Distribution Agreement. Notwithstanding anything to the contrary in this Section 9.7, no amendment to the terms of this Agreement will be effected except in writing signed by an authorized officer of both parties. 

  

	9.8	Mediation and Alternate Dispute Resolution. 

  
 (a) In the event any Dispute cannot be resolved in a friendly manner as set forth in Section 9.7, the parties intend that such Dispute be resolved
by ADR as defined and set forth in the Separation and Distribution Agreement. Nothing in this paragraph shall prevent either Motorola or the Company from commencing formal litigation proceedings if (i) good faith 
  

 -15- 

 efforts to resolve the Dispute under these procedures have been unsuccessful, or (ii) any delay resulting from efforts to
mediate such dispute could result in serious and irreparable injury to either Motorola or the Company. The use of any ADR procedures will not be construed under the doctrines of laches, waiver or estoppel to affect adversely the rights of either
party. 
  
 (b) Each of Motorola and the Company will bear its
costs of mediation or ADR, but both parties shall share the costs of the mediation or ADR equally. 
  

	9.9	Jurisdiction. In the event a Dispute under this Agreement is to be submitted to judicial proceedings, each of Motorola and the Company consents to the exclusive jurisdiction
of the federal or state courts of Delaware for any such legal action, suit or proceeding and agrees that any such action, suit, or proceeding may be brought only in such courts. Each of Motorola and the Company further waives any objection to the
laying of venue for any suit, action or proceeding in such courts. Each party also waives its rights to a trial by jury. Each party agrees to accept and acknowledge service of any and all process that may be served in any suit, action or proceeding.
Each party agrees that any service of process upon it mailed by registered or certified mail, return receipt requested to such party at the address provided in Section 9.3 above will be deemed in every respect effective service of process
upon such party in any such suit, action or proceeding. Each party agrees to waive any right it might have to a trial by jury in any such suit, action or proceeding. 

  

	9.10	Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in
an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. 

  

	9.11	Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or
be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. Subject
to Section 9.7, all rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

  

	9.12	Amendment. No change, amendment or waiver will be made to this Agreement, except by an instrument in writing signed on behalf of each of the parties hereto.

  

	9.13	Authority. Each of the parties hereto represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this
Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a
legal, valid and binding obligation, enforce- 

  

 - 16 - 

 able against it in accordance with its terms subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 
  

	9.14.	Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. When
a reference is made in this Agreement to an Article or a Section, such reference shall be to an Article or Section of this Agreement unless otherwise indicated. All references made herein to the Company as a party which operate as of a time
following the Effective Date shall be deemed to refer to the Company and its subsidiaries as a single party. 

  
 * * * 
  
 [SIGNATURES ON FOLLOWING PAGE] 
  

 - 17 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of
the date and year first written above. 
  

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

	 Its:
	 	Executive Vice President and Chief Financial Officer

  

			
	
	FREESCALE SEMICONDUCTOR, INC.
		
	 By:
	 	 /s/ Karen Roscher

	 Its:
	 	 Director of Planning and Analysis

  

 - 18 -Tax Sharing Agreement

 Exhibit 10.16 
  
  
  
  
  
  
  
 TAX SHARING AGREEMENT 
  
 DATED AS OF APRIL 4, 2004 
  
 BY AND AMONG 
  
 MOTOROLA, INC. 
  
 AND 
  
 FREESCALE
SEMICONDUCTOR, INC. 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Section 1.    Definition of Terms 
	  	1
		
	 Section 2.    Allocation of Tax Liabilities
	  	10
			
	             Section 2.01
	  	General Rule	  	10
			
	             Section 2.02
	  	Allocation of United States Federal Income Tax and Federal Other Tax	  	10
			
	             Section 2.03
	  	Allocation of State Income and State Other Taxes	  	10
			
	             Section 2.04
	  	Allocation of Foreign Taxes	  	11
			
	             Section 2.05
	  	Certain Transaction and Other Taxes	  	12
			
	             Section 2.06
	  	Foreign Stock Distributions	  	12
		
	 Section 3.    Proration of Taxes for Straddle Periods
	  	13
		
	 Section 4.    Preparation and Filing of Tax Returns
	  	13
			
	             Section 4.01
	  	General	  	13
			
	             Section 4.02
	  	MINC’s Responsibility	  	13
			
	             Section 4.03
	  	Freescale Responsibility	  	14
			
	             Section 4.04
	  	Tax Accounting Practices	  	14
			
	             Section 4.05
	  	Consolidated or Combined Tax Returns	  	15
			
	             Section 4.06
	  	Right to Review Tax Returns	  	15
			
	             Section 4.07
	  	Freescale Carrybacks and Claims for Refund	  	15
			
	             Section 4.08
	  	Apportionment of Earnings and Profits and Tax Attributes	  	16
		
	 Section 5.    Tax Payments
	  	16
			
	             Section 5.01
	  	Payment of Taxes with Respect to MINC Federal Consolidated Income Tax Returns	  	16
			
	             Section 5.02
	  	 Payment of Taxes With Respect to Joint Returns (other than a MINC Federal Consolidated
 Income Tax Return) and Certain Returns of Other Taxes
	  	16

  

 i 

					
			
	             Section 5.03
	  	Payment of Separate Company Taxes	  	17
			
	             Section 5.04
	  	Indemnification Payments	  	18
		
	 Section 6.    Tax Benefits
	  	18
			
	             Section 6.01
	  	Tax Benefits	  	18
		
	 Section 7.    Tax-Free Status
	  	20
			
	             Section 7.01
	  	Tax Opinions/Rulings and Representation Letters	  	20
			
	             Section 7.02
	  	Restrictions on Freescale	  	20
			
	             Section 7.03
	  	Restrictions on MINC	  	22
			
	             Section 7.04
	  	Procedures Regarding Opinions and Rulings	  	23
			
	             Section 7.05
	  	Liability for Tax-Related Losses	  	24
		
	 Section 8.    Assistance and Cooperation
	  	25
			
	             Section 8.01
	  	Assistance and Cooperation	  	25
			
	             Section 8.02
	  	Income Tax Return Information	  	25
			
	             Section 8.03
	  	Reliance by MINC	  	26
			
	             Section 8.04
	  	Reliance by Freescale	  	26
		
	 Section 9.    Tax Records
	  	27
			
	             Section 9.01
	  	Retention of Tax Records	  	27
			
	             Section 9.02
	  	Access to Tax Records	  	27
		
	 Section 10.  Tax Contests
	  	27
			
	             Section 10.01
	  	Notice	  	27
			
	             Section 10.02
	  	Control of Tax Contests	  	28
		
	 Section 11.  Effective Date; Termination of Prior Intercompany Tax Allocation
Agreements
	  	29
		
	 Section 12.  Survival of Obligations
	  	30
		
	 Section 13.  Treatment of Payments; Tax Gross Up
	  	30
			
	             Section 13.01
	  	Treatment of Tax Indemnity and Tax Benefit Payments	  	30

  

 ii 

					
	             Section 13.02
	  	Tax Gross Up	  	30
			
	             Section 13.03
	  	Interest Under This Agreement	  	30
		
	 Section 14.    Disagreements
	  	31
		
	 Section 15.    Late Payments
	  	31
		
	 Section 16.    Expenses
	  	31
		
	 Section 17.    General Provisions
	  	32
			
	             Section 17.01
	  	Addresses and Notices	  	32
			
	             Section 17.02
	  	Binding Effect	  	32
			
	             Section 17.03
	  	Waiver	  	32
			
	             Section 17.04
	  	Severability	  	33
			
	             Section 17.05
	  	Authority	  	33
			
	             Section 17.06
	  	Further Action	  	33
			
	             Section 17.07
	  	Integration	  	33
			
	             Section 17.08
	  	Construction	  	33
			
	             Section 17.09
	  	No Double Recovery	  	33
			
	             Section 17.10
	  	Counterparts	  	34
			
	             Section 17.11
	  	Governing Law	  	34
			
	             Section 17.12
	  	Jurisdiction	  	34
			
	             Section 17.13
	  	Amendment	  	34
			
	             Section 17.14
	  	Freescale Subsidiaries	  	34
			
	             Section 17.15
	  	Successors	  	34
			
	             Section 17.16
	  	Injunctions	  	34

  
  

 iii 

 TAX SHARING AGREEMENT 
  
 This TAX SHARING AGREEMENT (this “Agreement”) is entered into as of
                , 2004 by and between Motorola, Inc., a Delaware corporation (“MINC”), and Freescale Semiconductor, Inc., a Delaware corporation
and a wholly owned subsidiary of MINC (“Freescale”) (MINC and Freescale are sometimes collectively referred to herein as the “Companies”). 
  
 RECITALS 
  
 WHEREAS, the Board of Directors of MINC has determined that it would be appropriate and desirable to completely separate the Freescale Business (as
defined below) from MINC; 
  
 WHEREAS, as of the date hereof, MINC
is the common parent of an affiliated group of corporations, including Freescale, which has elected to file consolidated Federal income tax returns; 
  
 WHEREAS, MINC and Freescale have entered into the Master Separation and Distribution Agreement (as defined below), pursuant to which (A) MINC has agreed
to contribute and otherwise transfer to Freescale, and Freescale has agreed to receive and assume, the assets and liabilities then associated with the Freescale Business as described therein; and (B) MINC and Freescale contemplate that Freescale
shall consummate the IPO (as defined below); 
  
 WHEREAS, pursuant
to the transactions contemplated by the Master Separation and Distribution Agreement, Freescale and its subsidiaries may cease to be members of the affiliated group (as that term is defined in Section 1504 of the Code) of which MINC is the common
parent (the “Deconsolidation”); 
  
 WHEREAS, MINC
intends, after the IPO, to distribute to shareholders of MINC the outstanding shares of Freescale Common Stock then owned by MINC; and 
  
 WHEREAS, the Companies desire to provide for and agree upon the allocation between the parties of liabilities for Taxes arising prior to, as a result of,
and subsequent to the IPO, and to provide for and agree upon other matters relating to Taxes; 
  
 NOW THEREFORE, in consideration of the mutual agreements contained herein, the Companies hereby agree as follows: 
  
 Section 1.    Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following terms
have the following meanings, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Master Separation and Distribution Agreement: 
  
 “Accountant” shall have the meaning set forth in Section 8.02(c) of this Agreement. 
  
 “Accounting Cutoff Date” means, with respect to Freescale,
any date as of the end of which there is a closing of the financial accounting records for such entity. 

 “Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of
the Code and the regulations thereunder) by Freescale of the Freescale Business. 
  
 “Adjustment Request” means any formal or informal claim or request filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including
(a) any amended Tax return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously
paid. 
  
 “Affiliate” means any entity that is
directly or indirectly “controlled” by either the person in question or an Affiliate of such person. “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through ownership of voting securities, by contract or otherwise. Except as otherwise provided herein, the term Affiliate shall refer to Affiliates of a person as determined immediately after the Separation. 

 
 “Agreement” shall mean this Tax Sharing Agreement.

  
 “Board Certificate” shall have the meaning
set forth in Section 7.02(e) of this Agreement. 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
  
 “Companies” means MINC and Freescale, collectively, and “Company”, as the context requires, means either MINC or Freescale. 
  
 “Contribution” means the contribution of assets by MINC
itself directly to Freescale itself pursuant to Section 2.1 of the Master Separation and Distribution Agreement. 
  
 “Controlling Party” shall have the meaning set forth in Section 10.02(e) of this Agreement. 
  
 “Deconsolidation” shall have the meaning provided in the
Recitals. 
  
 “Deconsolidation Date” means the
last date on which Freescale qualifies as a member of the affiliated group (as defined in Section 1504 of the Code) of which MINC is the common parent. 
  
 “Distribution” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “Distribution Date” has the meaning set forth in the Master
Separation and Distribution Agreement. 
  
 “DGCL”
means the Delaware General Corporation Law. 
  

 2 

 “Federal Income Tax” means any Tax imposed by Subtitle A of the Code, and any interest,
penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “Federal Other Tax” means any Tax imposed by the federal government of the United States of America other than any Federal Income Taxes, and any interest, penalties, additions to tax, or additional
amounts in respect of the foregoing. 
  
 “Fifty-Percent or
Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code. 
  
 “Final Determination” means the final resolution of liability for any Income Tax or Other Tax, which resolution may be for a specific
issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a State, local, or foreign taxing
jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the
right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has
become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign taxing jurisdiction; (d) by any allowance of a
refund or credit in respect of an overpayment of Income Tax or Other Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax;
(e) by a final settlement resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties.

  
 “Foreign Income Tax” means any Tax imposed by
any foreign country or any possession of the United States, or by any political subdivision of any foreign country or United States possession, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest, penalties,
additions to tax, or additional amounts in respect of the foregoing. 
  
 “Foreign Other Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign country or United States possession, other than any Foreign Income
Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “Foreign Stock Distribution” shall have the meaning set forth in Section 2.06 of this Agreement. 
  
 “Foreign Tax” means any Foreign Income Taxes or Foreign
Other Taxes. 
  
 “Freescale” shall have the
meaning provided in the first sentence of this Agreement. 
  
 “Freescale Adjustment” means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent Freescale would be exclusively liable for any 
  

 3 

 
resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 
  
 “Freescale Business” has the meaning of “SPS
Business” set forth in the Master Separation and Distribution Agreement. 
  
 “Freescale Capital Stock” means all classes or series of capital stock of Freescale, including (i) the “Freescale Class A Common Stock” (as defined in the Master Separation and
Distribution Agreement), (ii) the “Freescale Class B Common Stock” (as defined in the Master Separation and Distribution Agreement), (iii) all options, warrants and other rights to acquire such capital stock and (iv) all instruments
properly treated as stock in Freescale for U.S. federal income tax purposes. 
  
 “Freescale Carryback” means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the Freescale Group which may or must be carried from one Tax Period
to another prior Tax Period under the Code or other applicable Tax Law. 
  
 “Freescale Class B Common Stock” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “Freescale Common Stock” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “Freescale Federal Consolidated Income Tax Return” shall
mean any United States federal Income Tax Return for the affiliated group (as that term is defined in Code Section 1504) of which Freescale is the common parent. 
  
 “Freescale Group” means Freescale and its Affiliates, as determined immediately after the Separation.

  
 “Freescale Separate Return” means any
Separate Return of Freescale or any member of the Freescale Group. 
  
 “Group” means the MINC Group or the Freescale Group, or both, as the context requires. 
  
 “High-Level Dispute” means any dispute or disagreement (a) relating to liability under Section 7.05 of this Agreement or (b) in which the
amount of liability in dispute exceeds $50 million. 
  
 “Income Tax” means any Federal Income Tax, State Income Tax or Foreign Income Tax. 
  
 “Indemnitee” shall have the meaning set forth in Section 13.03 of this Agreement. 
  
 “Indemnitor” shall have the meaning set forth in Section
13.03 of this Agreement. 
  
 “Internal Restructuring”
shall have the meaning set forth in Section 7.02(f) of this Agreement. 
  
 “IPO” has the meaning set forth in the Master Separation and Distribution Agreement. 
  
 “IRS” means the United States Internal Revenue Service. 
  

 4 

 “Joint Adjustment” means any proposed adjustment by a Tax Authority or claim for refund
asserted in a Tax Contest which is neither a Freescale Adjustment nor a MINC Adjustment. 
  
 “Joint Return” shall mean any Return of a member of the MINC Group or the Freescale Group that is not a Separate Return. 
  
 “Master Separation and Distribution Agreement” means the Master Separation and Distribution Agreement, as
amended from time to time, by and between MINC and Freescale dated                 , 2004. 
  
 “MINC” shall have the meaning provided in the first sentence of this Agreement. 
  
 “MINC Adjustment” means any proposed adjustment by a Tax
Authority or claim for refund asserted in a Tax Contest to the extent MINC would be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement. 
  
 “MINC Affiliated Group” shall have the meaning provided in
the definition of “MINC Federal Consolidated Income Tax Return.” 
  
 “MINC Federal Consolidated Income Tax Return” means any United States federal Income Tax Return for the affiliated group (as that term is defined in Code Section 1504 and the regulations thereunder)
of which MINC is the common parent (the “MINC Affiliated Group”). 
  
 “MINC Group” means MINC and its Affiliates, excluding any entity that is a member of the Freescale Group. 
  
 “MINC Reduction” shall have the meaning set forth in Section 2.03(a)(i)(B) of this Agreement. 
  
 “MINC Separate Return” means any Separate Return of MINC or
any member of the MINC Group. 
  
 “MINC State Combined
Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that actually includes, by election or otherwise, one or more members of the MINC Group together with one or more members of the Freescale Group.

  
 “Motorola Business” shall have the meaning
provided in the Master Separation and Distribution Agreement. 
  
 “Non-Controlling Party” shall have the meaning set forth in Section 10.02(e) of this Agreement. 
  
 “Notified Action” shall have the meaning set forth in Section 7.04(a) of this Agreement. 
  
 “Other Tax” means any Federal Other Tax, State Other Tax, or
Foreign Other Tax. 
  
 “Past Practices” shall
have the meaning set forth in Section 4.04(a) of this Agreement. 
  

 5 

 “Payment Date” means (i) with respect to any MINC Federal Consolidated Income Tax
Return, the due date for any required installment of estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code Section 6072, and the date the return is
filed, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 
  
 “Payor” shall have the meaning set forth in Section 5.04 of this Agreement. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. federal
income tax purposes. 
  
 “Post-Deconsolidation
Period” means any Tax Period beginning after the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Deconsolidation Date. 
  
 “Pre-Deconsolidation Period” means any Tax Period ending on
or before the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date. 
  
 “Prime Rate” means the base rate on corporate loans charged by Citibank, N.A. from time to time, compounded daily on the basis of a year
of 365 or 366 (as applicable) days and actual days elapsed. 
  
 “Privilege” means any privilege that may be asserted under applicable law, including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges),
the accountant-client privilege and any privilege relating to internal evaluation processes. 
  
 “Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury
Regulation Section 1.355-7T, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Freescale management or shareholders, is a hostile acquisition, or
otherwise, as a result of which Freescale would merge or consolidate with any other Person or as a result of which any Person or any group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from Freescale and/or
one or more holders of outstanding shares of Freescale Capital Stock, a number of shares of Freescale Capital Stock that would, when combined with the number of shares of Freescale Capital Stock sold pursuant to the IPO and any other changes in
ownership of Freescale Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of Freescale as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of Freescale as of the date of such transaction, or in the case of a series of transactions, the date of
the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the adoption by Freescale of a shareholder rights plan or (B) issuances by Freescale that satisfy Safe Harbor VI (relating
to acquisitions in connection with a 

  

 6 

 
person’s performance of services) or Safe Harbor VII (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section
1.355-7T(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares
of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or
regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. 
  
 “Representation Letters” means the representation letters and any other materials (including, without limitation, a Ruling Request and
any related supplemental submissions to the IRS) delivered or deliverable by MINC and others in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax Opinions/Rulings. 
  
 “Required Party” shall have the meaning set forth in Section
5.04 of this Agreement. 
  
 “Responsible Company”
means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement. 
  
 “Ruling” means a private letter ruling (including a supplemental private letter ruling) issued by the IRS to MINC in connection with the
Contribution and Distribution. 
  
 “Ruling
Request” means any letter filed by MINC with the IRS requesting a ruling regarding certain tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any
amendment or supplement to such ruling request letter. 
  
 “Section 7.02(e) Acquisition Transaction” means any transaction or series of transactions, other than the IPO, that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage
reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%. 
  
 “Separate Return” means (a) in the case of any Tax Return of any member of the Freescale Group (including any consolidated, combined or unitary return), any such Tax Return that does not include any
member of the MINC Group and (b) in the case of any Tax Return of any member of the MINC Group (including any consolidated, combined or unitary return), any such Tax Return that does not include any member of the Freescale Group. 
  
 “Separation” means the series of transactions, including
transactions that occur after the IPO, that culminate in the transfer of the Freescale Business to Freescale. 
  
 “State Income Tax” means any Tax imposed by any State of the United States or by any political subdivision of any such State which is
imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  

 7 

 “State Other Tax” means any Tax imposed by any State of the United States or by any
political subdivision of any such State other than any State Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 “State Tax” means any State Income Taxes or State Other Taxes. 
  
 “Steering Committee” has the meaning set forth in the Master
Separation and Distribution Agreement. 
  
 “Straddle
Period” means any Tax Period that begins on or before and ends after the Deconsolidation Date. 
  
 “Tax” or “Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding,
payroll, social security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated
or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing. 
  
 “Tax Advisor” means a
United States tax counsel or accountant of recognized national standing. 
  
 “Tax Advisor Dispute” shall have the meaning set forth in Section 14 of this Agreement. 
  
 “Tax Attribute” or “Attribute” shall mean a net operating loss, net capital loss, unused investment credit, unused foreign tax
credit, excess charitable contribution, general business credit or any other Tax Item that could reduce a Tax. 
  
 “Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the
agency (if any) charged with the collection of such Tax for such entity or subdivision. 
  
 “Tax Benefit” means any refund, credit, or other reduction in otherwise required Tax payments. 
  
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of
redetermining Taxes (including any administrative or judicial review of any claim for refund). 
  
 “Tax Contest Committee” shall have the meaning provided in Section 10.02(d). 
  
 “Tax Control” means the definition of “control” set forth in Section 368(c) of the Code (or in any successor statute or
provision), as such definition may be amended from time to time. 
  
 “Tax-Free Status” means the qualification of the Contribution and Distribution, taken together, (a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock
distributed thereby is “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the Code and (c) as a transaction in which MINC, Freescale and the shareholders of MINC recognize no income or gain for U.S. federal income
tax purposes pursuant to Sections 355, 361 and 1032 of the Code, other than, in the case of MINC 
  

 8 

 
and Freescale, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the
Code. 
  
 “Tax Item” means, with respect to any
Income Tax, any item of income, gain, loss, deduction, or credit. 
  
 “Tax Law” means the law of any governmental entity or political subdivision thereof relating to any Tax. 
  
 “Tax Opinions/Rulings” means the opinions of Tax Advisors and/or the rulings by the IRS deliverable to MINC in connection with the
Contribution and the Distribution. 
  
 “Tax
Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law. 
  
 “Tax Records” means Tax Returns, Tax Return workpapers, documentation relating to any Tax Contests, and any other books of account or
records required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Tax Authority. 
  
 “Tax-Related Losses” means (i) all federal, state and local Taxes (including interest and penalties thereon) imposed pursuant to any
settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation
or controversies and any amount paid by MINC (or any MINC Affiliate) or Freescale (or any Freescale Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case,
resulting from the failure of the Contribution and the Distribution to have Tax-Free Status. 
  
 “Tax Return” or “Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return with
respect to Taxes, or any other similar report, statement, declaration, or document required to be filed under the Code or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any
amendments or supplements to any of the foregoing. 
  
 “Transactions” means the Contribution, the Distribution and the other transactions contemplated by the Master Separation and Distribution Agreement. 
  
 “Transfer Pricing Adjustment” shall mean any proposed or actual allocation by a Tax Authority of any Tax
Item between or among any member of the MINC Group and any member of the Freescale Group with respect to any Pre-Deconsolidation Period. 
  
 “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period.

  
 “Unqualified Tax Opinion” means an
unqualified “will” opinion of a Tax Advisor, which Tax Advisor is acceptable to MINC, on which MINC may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the 

  

 9 

 
Contribution and Distribution would have qualified for Tax-Free Status if the transaction in question did not occur. 
  
 Section 2.        Allocation
of Tax Liabilities. 
  
 Section
2.01    General Rule. 
  
 (a)    MINC Liability. MINC shall be liable for, and shall indemnify and hold harmless the Freescale Group from and against any liability for, Taxes which are allocated to MINC under this Section 2.

  
 (b)    Freescale Liability.
Freescale shall be liable for, and shall indemnify and hold harmless the MINC Group from and against any liability for, Taxes which are allocated to Freescale under this Section 2. 
  
 Section 2.02    Allocation of United States Federal Income Tax and Federal Other Tax.
Except as provided in Section 2.05, Federal Income Tax and Federal Other Tax shall be allocated as follows: 
  
 (a)    Allocation of Tax Relating to MINC Federal Consolidated Income Tax Returns. With respect to any MINC Federal
Consolidated Income Tax Return, MINC shall be responsible for any and all Federal Income Taxes due or required to be reported on any such Income Tax Return (including any increase in such Tax as a result of a Final Determination). 
  
 (b)    Allocation of Tax Relating to Federal
Separate Income Tax Returns. (i) MINC shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any MINC Separate Return (including any increase in such Tax as a result of a Final Determination);
(ii) Freescale shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Freescale Separate Return (including any increase in such Tax as a result of a Final Determination). 
  
 (c)    Allocation of Federal Other Tax.
MINC shall be responsible for any and all Federal Other Taxes attributable to the Motorola Business. Freescale shall be responsible for any and all Federal Other Taxes attributable to the Freescale Business. 
  
 Section 2.03    Allocation of State Income and
State Other Taxes. Except as provided in Section 2.05, State Income Tax and State Other Tax shall be allocated as follows: 
  
 (a)    Allocation of Tax Relating to MINC State Combined Income Tax Returns. Except as provided in Sections 2.03(a)(i)
and (ii) below, MINC shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any MINC State Combined Income Tax Return (including any increase in such Tax as a result of a Final Determination).

  
 (i)     Allocation
of Tax Relating to Post-Deconsolidation Periods.  
  
 (A)    With respect to any MINC State Combined Income Tax Returns relating to any Post-Deconsolidation Periods, Freescale shall be liable to MINC for State Income Tax liability computed as if all members of the
Freescale Group included in the computation of such Tax had filed such State Income Tax Return 
  

 10 

 
for such Freescale Group members based solely on the income and other Tax Items of such members for the period that such Freescale Group members are included
in such MINC State Combined Income Tax Return (without regard to any Taxes or Tax Attributes arising with respect to any period or portion thereof ending on or prior to the Deconsolidation Date), but based on the apportionment factors derived by
including all appropriate entities of both Groups on such State Income Tax Return. Any amount so allocated to the Freescale Group shall be a liability of Freescale to MINC under this Section 2, regardless of whether such amount exceeds the total Tax
liability shown on such MINC State Combined Income Tax Return. 
  
 (B)    If, with respect to any MINC State Combined Income Tax Returns relating to any Post-Deconsolidation Periods, a Tax Attribute of any of the members of the Freescale Group arising in such
Post-Deconsolidation Period actually reduces the combined Tax liability on the MINC State Combined Income Tax Return below the amount that would have been payable by MINC if the members of the Freescale Group had not been included in such Return
(the “MINC Reduction”), then MINC shall be liable to Freescale in an amount equal to the MINC Reduction. 
  
 (ii)    Allocation of Consolidated or Combined State Income Tax Adjustments. If there is any adjustment
to the Tax liability with respect to any MINC State Combined Income Tax Return relating to any Post-Deconsolidation Periods as reported on such Tax Return as described in Section 2.03(a)(i) above, Freescale shall be liable to MINC, or MINC shall be
liable to Freescale, for the difference between the amounts set forth in Section 2.03(a)(i) without regard to the adjustment and the amounts set forth in Section 2.03(a)(i) as adjusted. 
  
 (b)    Allocation of Tax Relating to Separate
Returns. (i) MINC shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any MINC Separate Return (including any increase in such Tax as a result of a Final Determination); (ii) Freescale shall
be responsible for any and all State Income Taxes due with respect to or required to be reported on any Freescale Separate Return (including any increase in such Tax as a result of a Final Determination). 
  
 (c)    Allocation of State Other Tax. MINC
shall be responsible for any and all State Other Taxes attributable to the Motorola Business. Freescale shall be responsible for any and all State Other Taxes attributable to the Freescale Business. 
  
 Section 2.04    Allocation of Foreign Taxes.
Except as provided in Sections 2.05 and 2.06, Foreign Income Tax and Foreign Other Tax shall be allocated as follows:  
  
 (a)    MINC shall be responsible for any and all Foreign Income Taxes due with respect to or required to be reported on any
MINC Separate Return, including Foreign Income Tax of MINC or any member of the MINC Group imposed by way of withholding by a member of the Freescale Group (and including any increase in such Foreign Income Tax as a result of a Final Determination).

  

 11 

 (b)    Freescale shall be responsible for any and all Foreign Income Taxes due
with respect to or required to be reported on any Freescale Separate Return, including Foreign Income Tax of Freescale or any member of the Freescale Group imposed by way of withholding by a member of the MINC Group (and including any increase in
such Foreign Income Tax as a result of a Final Determination). 
  
 (c)    MINC shall be responsible for any and all Foreign Other Taxes attributable to the Motorola Business. Freescale shall be responsible for any and all Foreign Other Taxes attributable to the Freescale
Business. 
  
 Section 2.05    Certain
Transaction and Other Taxes. 
  
 (a)    Freescale Liability. Freescale shall be liable for, and shall indemnify and hold harmless the MINC Group from and against any liability for: 
  
 (i)    Any stamp, sales and use, gross receipts, value-added or other transfer Taxes
imposed by any Tax Authority on any member of the Freescale Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 
  
 (ii)    any Tax resulting from a breach by Freescale of any covenant in this Agreement,
the Master Separation and Distribution Agreement or any Ancillary Agreement; and 
  
 (iii)    any Tax-Related Losses for which Freescale is responsible pursuant to Section 7.05 of this Agreement.

  
 (b)    MINC Liability. MINC shall
be liable for, and shall indemnify and hold harmless the Freescale Group from and against any liability for: 
  
 (i)    Any stamp, sales and use, gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on
any member of the MINC Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; 
  
 (ii)    any Tax resulting from a breach by MINC of any covenant in this Agreement, the Master Separation and
Distribution Agreement or any Ancillary Agreement; and 
  
 (iii)    any Tax-Related Losses for which MINC is responsible pursuant to Section 7.05 of this Agreement. 
  
 Section 2.06    Foreign Stock Distributions. Notwithstanding any other provision of this Agreement, (i) MINC shall be
responsible for 50 percent of any Foreign Income Tax, if any, imposed solely with respect to the distribution of shares of stock of a member of the MINC Group by a member of the Freescale Group pursuant to the Transactions (such distribution, a
“Foreign Stock Distribution”), (ii) neither MINC nor Freescale shall treat any Foreign Stock Distribution as giving rise to any Foreign Income Tax, unless otherwise required to do so 

  

 12 

 
pursuant to a Final Determination and (iii) MINC shall control in all respects, including as to settlement, any Tax Contest, ruling request or other
proceeding relating to any Foreign Stock Distribution. 
  
 Section 3.    Proration of Taxes for Straddle Periods. 
  
 (a)    General Method of Proration. In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Deconsolidation Periods and Post-Deconsolidation Periods in
accordance with the principles of Treasury Regulation Section 1.1502-76(b) as reasonably interpreted and applied by the Companies. No election shall be made under Treasury Regulation Section 1.1502-76(b)(2)(ii) (relating to ratable allocation of a
year’s items). If the Deconsolidation Date is not an Accounting Cutoff Date, the provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items (other than extraordinary items) for the month which
includes the Deconsolidation Date. 
  
 (b)    Transaction Treated as Extraordinary Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and Post-Deconsolidation Periods, any Tax Items relating to the
Transactions shall be treated as extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods, and any
Taxes related to such items shall be treated under Treasury Regulation Section 1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation
Periods. 
  
 Section 4.    Preparation and
Filing of Tax Returns. 
  
 Section
4.01    General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed when due (including extensions) by the person obligated to file such Tax Returns under the Code or applicable Tax
Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Section 8 with respect to the preparation and filing of Tax Returns, including providing information required
to be provided in Section 8. 
  
 Section
4.02    MINC’s Responsibility. MINC has the exclusive obligation and right to prepare and file, or to cause to be prepared and filed: 
  
 (a)    MINC Federal Consolidated Income Tax Returns for any Tax Periods ending on, before or
after the Deconsolidation Date; 
  
 (b)    MINC State Combined Income Tax Returns and any other Joint Returns which MINC reasonably determines are required to be filed (or which MINC chooses to be filed) by the Companies or any of their Affiliates
for Tax Periods ending on, before or after the Deconsolidation Date; provided, however, that MINC shall provide written notice of such determination to file such MINC State Combined Income Tax Returns or other Joint Returns to Freescale; and

  
 (c)    MINC Separate Returns and
Freescale Separate Returns which MINC reasonably determines are required to be filed by the Companies or any of their Affiliates for Tax Periods 

  

 13 

 
ending on, before or after the Deconsolidation Date (limited, in the case of Freescale Separate Returns, to such Returns as are required to be filed for Tax
Periods ending on or prior to the Deconsolidation Date). 
  
 Section 4.03    Freescale Responsibility. Freescale shall prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members of the Freescale Group
other than those Tax Returns which MINC is required to prepare and file under Section 4.02. The Tax Returns required to be prepared and filed by Freescale under this Section 4.03 shall include (a) any Freescale Federal Consolidated Income Tax Return
for Tax Periods ending after the Deconsolidation Date and (b) Freescale Separate Returns required to be filed for Tax periods ending after the Deconsolidation Date. 
  
 Section 4.04    Tax Accounting Practices. 
  
 (a)    General Rule. Except as provided in
Section 4.04(b), with respect to any Tax Return that Freescale has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.03, for any Pre-Deconsolidation Period or any Straddle Period (or any taxable period
beginning after the Deconsolidation Date to the extent items reported on such Tax Return might reasonably be expected to affect items reported on any Tax Return for any Pre-Deconsolidation Period or any Straddle Period), such Tax Return shall be
prepared in accordance with past practices (in the case of any such Tax Return for a taxable period beginning after the Deconsolidation Date, limited to past practices regarding the reporting of items on Schedule M-1 of the MINC Federal Consolidated
Income Tax Return or any similar schedule of any other Tax Return required to be filed by MINC under this Agreement), accounting methods, elections or conventions (“Past Practices”) used with respect to the Tax Returns in question
(unless there is no reasonable basis for the use of such Past Practices), and to the extent any items are not covered by Past Practices (or in the event that there is no reasonable basis for the use of such Past Practices), in accordance with
reasonable Tax accounting practices selected by Freescale. Except as provided in Section 4.04(b), MINC shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.02, in
accordance with reasonable Tax accounting practices selected by MINC. 
  
 (b)    Reporting of Transaction Tax Items. The Tax treatment reported on any Tax Return of the Transactions shall be consistent with the treatment thereof in the Ruling Requests and the Tax Opinions/Rulings
(and any Tax Return filed by MINC or any member of the MINC Group or caused to be filed by MINC, in each case with respect to periods prior to the Distribution Date or with respect to Straddle Periods), unless there is no reasonable basis for such
Tax treatment. To the extent there is a Tax treatment relating to the Transactions which is not covered by the Ruling Requests or Tax Opinions/Rulings, the Companies shall agree on the Tax treatment to be reported on any Tax Return. For this
purpose, the Tax treatment shall be determined by the Responsible Company with respect to such Tax Return and shall be agreed to by the other Company unless either (i) there is no reasonable basis for such Tax treatment, or (ii) such Tax treatment
is inconsistent with the Tax treatment contemplated in the Ruling Requests and/or the Tax Opinions/Rulings. Such Tax Return shall be submitted for review pursuant to Section 4.06(a), and any dispute regarding such proper Tax treatment shall be
referred for resolution pursuant to Section 14, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely filing of the Tax Return. 
  

 14 

 Section 4.05    Consolidated or Combined Tax Returns. Freescale will
elect and join, and will cause its respective Affiliates to elect and join, in filing any MINC State Combined Income Tax Returns and any Joint Returns that MINC determines are required to be filed or that MINC chooses to file pursuant to Section
4.02(b). With respect to any Freescale Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the Distribution Date, Freescale will elect and join, and will cause its respective Affiliates to elect and join, in filing
consolidated, unitary, combined, or other similar joint Tax Returns, to the extent each entity is eligible to join in such Tax Returns, if MINC reasonably determines that the filing of such Tax Returns is consistent with past reporting practices,
or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax to the entities eligible to join in such Tax Returns. 
  
 Section 4.06    Right to Review Tax Returns. 
  
 (a)    General. The Responsible Company
with respect to any material Tax Return shall make such Tax Return and related workpapers available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the requesting party would reasonably be
expected to be liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of such Taxes reported on
such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party reasonably determines that it must inspect such
Tax Return to confirm compliance with the terms of this Agreement. The Responsible Company shall use its reasonable best efforts to make such Tax Return available for review as required under this paragraph sufficiently in advance of the due date
for filing of such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such Tax Return and shall use its reasonable best efforts to have such Tax Return modified before filing, taking into account the
person responsible for payment of the Tax (if any) reported on such Tax Return and whether the amount of Tax liability with respect to such Tax Return is material. The Companies shall attempt in good faith to resolve any issues arising out of the
review of such Tax Return. For purposes of this section 4.06(a), a Tax Return is “material” if it could reasonably be expected to reflect (A) Tax liability equal to or in excess of $1 million, (B) a credit or credits equal to or in excess
of $1 million or (C) a loss or losses equal to or in excess of $3 million. 
  
 (b)    Execution of Returns Prepared by Other Party. In the case of any Tax Return which is required to be prepared and filed by one Company under this Agreement and which is required
by law to be signed by the other Company (or by its authorized representative), the Company which is legally required to sign such Tax Return shall not be required to sign such Tax Return under this Agreement if there is no reasonable basis for the
Tax treatment of any item reported on the Tax Return or the Tax treatment of any item reported on the Tax Return should, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, subject the
other Company (or its authorized representatives) to material penalties. 
  
 Section 4.07    Freescale Carrybacks and Claims for Refund. Freescale hereby agrees that, unless MINC consents in writing, (i) no Adjustment Request with respect to any Joint Return
(or any Return of Other Taxes described in clause (II) of Section 5.02) shall be filed, and 

  

 15 

 
(ii) any available elections to waive the right to claim in any Pre-Deconsolidation Period with respect to any Joint Return (or any Return of Other Taxes
described in clause (II) of Section 5.02) any Freescale Carryback arising in a Post-Deconsolidation Period shall be made, and no affirmative election shall be made to claim any such Freescale Carryback; provided, however, that the parties
agree that any such Adjustment Request shall be made with respect to any Freescale Carryback related to U.S. federal or State Taxes, upon the reasonable request of Freescale, if such Freescale Carryback is necessary to prevent the loss of the
federal and/or State Tax Benefit of such Freescale Carryback (including, but not limited to, an Adjustment Request with respect to a Freescale Carryback of a federal or State capital loss arising in a Post-Deconsolidation Period to a
Pre-Deconsolidation Period) and such Adjustment Request, based on MINC’s sole, reasonable determination, will cause no Tax detriment to MINC, the MINC Group or any member of the MINC Group. Any Adjustment Request which MINC consents to make
under this Section 4.07 shall be prepared and filed by the Responsible Company for the Tax Return to be adjusted. 
  
 Section 4.08    Apportionment of Earnings and Profits and Tax Attributes. MINC shall in good faith advise Freescale in
writing of the portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other consolidated, combined or unitary attribute which MINC determines shall be allocated or apportioned to the Freescale Group under applicable
law. Freescale and all members of the Freescale Group shall prepare all Tax Returns in accordance with such written notice. In the event that any temporary or final amendments to Treasury Regulations are promulgated after the date of this Agreement
that provide for any election to apply such regulations retroactively, then any such election shall be made only to the extent that Motorola and Freescale collectively agree to make such election. As soon as practicable after receipt of a written
request from Freescale, MINC shall provide copies of any studies, reports, and workpapers supporting the earnings and profits and other Tax Attributes allocable to Freescale. Any dispute regarding the apportionment of such earnings and profits or
any Tax Attribute shall be resolved pursuant to the provisions of Section 14 of this Agreement. All Tax Returns that are required to be filed under this Agreement after such resolution shall be filed in accordance with such resolution. In the event
of a subsequent adjustment to the earnings and profits or any Tax Attributes determined by MINC, MINC shall promptly notify Freescale in writing of such adjustment. For the absence of doubt, MINC shall not be liable to Freescale or any member of the
Freescale Group for any failure of any determination under this Section 4.08 to be accurate under applicable law. 
  
 Section 5.    Tax Payments. 
  
 Section 5.01    Payment of Taxes with Respect to MINC Federal Consolidated Income Tax Returns. MINC shall pay to the IRS
any Tax due with respect to any MINC Federal Consolidated Income Tax Return (including any Federal Income Tax due from the MINC Affiliated Group that is required to be paid as a result of an adjustment to a MINC Federal Consolidated Income Tax
Return).  
  
 Section
5.02    Payment of Taxes With Respect to Joint Returns (other than a MINC Federal Consolidated Income Tax Return) and Certain Returns of Other Taxes. In the case of (I) any Joint Return (other than a MINC Federal
Consolidated Tax Return) and (II) any Return of Other Taxes reflecting both Taxes for which MINC is responsible under Section 2 and Taxes for which Freescale is responsible under Section 2: 
  

 16 

 (a)    Computation and Payment of Tax Due. At least three business days
prior to any Payment Date for any Tax Return, the Responsible Company shall compute the amount of Tax required to be paid to the applicable Tax Authority (taking into account the requirements of Section 4.04 relating to consistent accounting
practices) with respect to such Tax Return on such Payment Date. The Responsible Company shall pay such amount to such Tax Authority on or before such Payment Date (and provide notice and proof of payment to the other Company). 
  
 (b)    Computation and Payment of Liability
With Respect To Tax Due. Within 30 days following the earlier of (i) the due date (including extensions) for filing any such Tax Return (excluding any Tax Return with respect to payment of estimated Taxes or Taxes due with a request for
extension of time to file) or (ii) the date on which such Tax Return is filed, if MINC is the Responsible Company, then Freescale shall pay to MINC (or MINC shall pay to Freescale) the amount allocable to the Freescale Group (or the amount to which
the Freescale Group is entitled) under the provisions of Section 2, and if Freescale is the Responsible Company, then MINC shall pay to Freescale (or Freescale shall pay to MINC) the amount allocable to the MINC Group (or the amount to which the
MINC Group is entitled) under the provisions of Section 2, in each case, plus interest computed at the Prime Rate on the amount of the payment based on the number of days from the earlier of (i) the due date of the Tax Return (including extensions)
or (ii) the date on which such Tax Return is filed, to the date of payment. 
  
 (c)    Adjustments Resulting in Underpayments. In the case of any adjustment pursuant to a Final Determination with respect to any such Tax Return, the Responsible Company shall pay
to the applicable Tax Authority when due any additional Tax due with respect to such Return required to be paid as a result of such adjustment pursuant to a Final Determination. The Responsible Company shall compute the amount attributable to the
Freescale Group in accordance with Section 2 and Freescale shall pay to MINC any amount due MINC (or MINC shall pay Freescale any amount due Freescale) under Section 2 within 30 days from the later of (i) the date the additional Tax was paid by the
Responsible Company or (ii) the date of receipt of a written notice and demand from the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable
detail the particulars relating thereto. Any payments required under this Section 5.02(c) shall include interest computed at the Prime Rate based on the number of days from the date the additional Tax was paid by the Responsible Company to the date
of the payment under this Section 5.02(c). 
  
 (d)    Any payments made by MINC to Freescale pursuant to Section 2.03(a)(i)(B) shall be recalculated in light of any Final Determination (or any other facts that may arise or come to light after such
payment is made, such as a carryback of a MINC Group Tax Attribute to a Tax Period in respect of which a payment was made by MINC to Freescale under Section 2.03(a)(i)(B)) that would affect the calculation set forth in Section 2.03(a)(i)(B) and an
appropriate adjusting payment shall be made by Freescale to MINC (or by MINC to Freescale) such that the aggregate amounts paid pursuant to Section 2.03(a)(i)(B) equal such recalculated amount (with interest computed at the Prime Rate). 

 
 Section 5.03    Payment of Separate Company
Taxes. Each Company shall pay, or shall cause to be paid, to the applicable Tax Authority when due all Taxes owed by such Company or a member of such Company’s Group with respect to a Separate Return of Income Taxes and with 

  

 17 

 
respect to a Separate Return of Other Taxes (provided that Separate Returns of Other Taxes described in clause (II) of Section 5.02 shall be governed by
Section 5.02). 
  
 Section
5.04    Indemnification Payments. 
  
 (a)    If any Company (the “Payor”) is required under applicable Tax Law to pay to a Tax Authority a Tax that another Company (the “Required Party”) is required to pay to such Tax
Authority under this Agreement, the Required Party shall reimburse the Payor within 30 days of delivery by the Payor to the Required Party of an invoice for the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid
and describing in reasonable detail the particulars relating thereto. The reimbursement shall include interest on the Tax payment computed at the Prime Rate based on the number of days from the date of the payment to the Tax Authority to the date of
reimbursement under this Section 5.04. 
  
 (b)    All indemnification payments under this Agreement shall be made by MINC directly to Freescale and by Freescale directly to MINC; provided, however, that if the Companies mutually agree with respect
to any such indemnification payment, any member of the MINC Group, on the one hand, may make such indemnification payment to any member of the Freescale Group, on the other hand, and vice versa. 
  
 Section 6.        Tax Benefits.

  
 Section 6.01    Tax Benefits.

  
 (a)    Except as set
forth below, MINC shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which MINC is liable hereunder, Freescale shall be entitled to any refund (and any interest
thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which Freescale is liable hereunder and a Company receiving a refund to which another Company is entitled hereunder shall pay over such refund to such other
Company within thirty days after such refund is received (together with interest computed at the Prime Rate based on the number of days from the date the refund was received to the date the refund was paid over). 
  
 (b)    If a member of the Freescale Group realizes
(or will realize) any Tax Benefit as a result of an adjustment (other than an adjustment set forth in Schedule 6.01(b), as such Schedule 6.01(b) may be amended by mutual agreement by the Companies prior to the date of the IPO) pursuant to a Final
Determination to any Taxes (other than Foreign Income Taxes) for which a member of the MINC Group is liable hereunder (or Tax Attribute of a member of the MINC Group, or of any consolidated, combined or unitary group the Taxes of which MINC is
liable for hereunder), or if a member of the MINC Group realizes (or will realize) any Tax Benefit as a result of an adjustment (other than an adjustment set forth in Schedule 6.01(b), as such Schedule 6.01(b) may be amended by mutual agreement by
the Companies prior to the date of the IPO) pursuant to a Final Determination to any Taxes (other than Foreign Income Taxes) for which a member of the Freescale Group is liable hereunder (or Tax Attribute of a member of the Freescale Group),
Freescale or MINC, as the case may be, shall make a payment to either MINC or Freescale, respectively, within 364 days following such Final Determination in an amount equal to such Tax Benefit (including any such Tax Benefit not yet realized). For
purposes of determining the amount of any Tax Benefit, the Freescale Group or MINC Group (or the 

  

 18 

 
applicable member thereof) (A) shall be deemed to realize such Tax Benefit in the first taxable year (or years) that such Tax Benefit (or the Tax Attribute
giving rise to such Tax Benefit) may be realized and utilized under applicable law (in the case of a Tax Benefit arising from additional basis in an asset, in no event later than the date of the Final Determination), (B) shall be deemed to pay Tax
at the highest marginal corporate Tax rates in effect in each relevant taxable year (or in the case of taxable years subsequent to the taxable year in which the Final Determination occurs, the highest marginal corporate Tax rates in effect in the
taxable year of the Final Determination) and (C) shall be deemed to have no Tax Attributes other than those giving rise to such Tax Benefit. 
  
 (c)    If a member of the Freescale Group actually realizes pursuant to a Final Determination any Tax Benefit as a
result of an adjustment pursuant to a Final Determination to any Foreign Income Taxes for which a member of the MINC Group is liable hereunder (or Foreign Income Tax Attribute of a member of the MINC Group) and such Tax Benefit would not have arisen
but for such adjustment, or if a member of the MINC Group actually realizes pursuant to a Final Determination any Tax Benefit as a result of an adjustment pursuant to a Final Determination to any Foreign Income Taxes for which a member of the
Freescale Group is liable hereunder (or Foreign Income Tax Attribute of a member of the Freescale Group) and such Tax Benefit would not have arisen but for such adjustment, Freescale or MINC, as the case may be, shall make a payment to either MINC
or Freescale, as appropriate, within 30 days following such actual realization of the Tax Benefit, in an amount equal to such Tax Benefit actually realized (including any Tax Benefit actually realized as a result of the payment), plus interest on
such amount computed at the Prime Rate based on the number of days from the date of such actual realization of the Tax Benefit to the date of payment of such amount under this Section 6.01(c). 
  
 (d)    No later than 30 days after the date of a
Final Determination referred to in Section 6.01(b), MINC (if a member of the MINC Group receives such Final Determination) or Freescale (if a member of the Freescale Group receives such Final Determination) shall provide the other Company with a
written calculation of the amount payable by such other Company to MINC or Freescale pursuant to this Section 6. No later than 30 days after a Tax Benefit described in Section 6.01(c) is actually realized by a member of the MINC Group or a member of
the Freescale Group, MINC (if a member of the MINC Group actually realizes such Tax Benefit) or Freescale (if a member of the Freescale Group actually realizes such Tax Benefit) shall provide the other Company with a written calculation of the
amount payable to such other Company by MINC or Freescale pursuant to this Section 6. In the event that MINC or Freescale disagrees with any such calculation described in this Section 6.01(d), MINC or Freescale shall so notify the other Company in
writing within 30 days of receiving the written calculation set forth above in this Section 6.01(d). MINC and Freescale shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable under this Section 6 shall be
determined in accordance with the disagreement resolution provisions of Section 14 as promptly as practicable. 
  
 (e)    Freescale shall be entitled to any refund that is attributable to, and would not have arisen but for, a Freescale
Carryback pursuant to the proviso set forth in Section 4.07. Any such payment of such refund made by MINC to Freescale pursuant to this Section 6.01(e) shall be recalculated in light of any Final Determination (or any other facts that may arise or
come to light after such payment is made, such as a carryback of a MINC Group Tax Attribute to a Tax 

  

 19 

 
Period in respect of which such refund is received) that would affect the amount to which Freescale is entitled, and an appropriate adjusting payment shall
be made by Freescale to MINC such that the aggregate amounts paid pursuant to this Section 6.01(e) equals such recalculated amount (with interest computed at the Prime Rate). 
  
 Section 7.        Tax-Free Status. 
  
 Section 7.01    Tax Opinions/Rulings and
Representation Letters. 
  
 (a)    Each of Freescale and MINC hereby represents and agrees that (A) it will read the Representation Letters prior to the date submitted and (B) subject to any qualifications therein, all information
contained in such Representation Letters that concerns or relates to such Company or any Affiliate of such Company will be true, correct and complete. 
  
 (b)    Freescale and MINC acknowledge that the Tax Opinions/Rulings and the Representation Letters have not yet been obtained
or submitted and may not be obtained or submitted until after the IPO. Freescale and MINC shall use their commercially reasonable efforts and shall cooperate in good faith to finalize the Representation Letters for the Distribution as soon as
possible hereafter and to cause the same to be submitted to the Tax Advisors, the IRS or such other governmental authorities as MINC shall deem necessary or desirable and shall take such other commercially reasonable actions as may be necessary or
desirable to obtain the Tax Opinions/Rulings in order to confirm the Tax-Free Status. 
  
 Section 7.02    Restrictions on Freescale. 
  
 (a)    Freescale agrees that it will not take or fail to take, or permit any Freescale Affiliate to take or fail to
take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters or Tax Opinions/Rulings. Freescale agrees that it will not take
or fail to take, or permit any Freescale Affiliate to take or fail to take, any action which prevents or could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any transaction contemplated by the Master Separation and Distribution
Agreement which is intended by the parties to be tax-free (including, but not limited to, those transactions listed on Schedule 7.02(a)) from so qualifying, including issuing any Freescale Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code. 
  
 (b)    Pre-Distribution Period. During the
period from the date hereof until the completion of the Distribution, Freescale shall not take any action (including the issuance of Freescale Capital Stock) or permit any Freescale Affiliate directly or indirectly controlled by Freescale to take
any action if, as a result of taking such action, Freescale could have a number of shares of Freescale Capital Stock (computed on a fully diluted basis or otherwise) issued and outstanding, including by way of the exercise of stock options (whether
or not such stock options 
  

 20 

 
are currently exercisable) or the issuance of restricted stock, that could cause MINC to cease to have Tax Control of Freescale. 
  
 (c)    Freescale agrees that, from the date hereof
until the first day after the two-year anniversary of the Distribution Date, it will (i) maintain its status as a company directly engaged in the Active Trade or Business and (ii) not engage in any transaction that would result in it ceasing to be a
company directly engaged in the Active Trade or Business. 
  
 (d)    Freescale agrees that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it will not (i) enter into any Proposed Acquisition Transaction or, to the extent
Freescale has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (a) redeeming rights under a shareholder rights plan, (b) finding a tender offer to be a “permitted
offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, or (c) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of
the DGCL or any similar corporate statute, any “fair price” or other provision of Freescale’s charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single
transaction or series of transactions sell or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to Freescale pursuant to the Contribution or sell or
transfer 60% or more of the gross assets of the Active Trade or Business or 60% or more of the consolidated gross assets of Freescale and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), (iv)
redeem or otherwise repurchase (directly or through a Freescale Affiliate) any Freescale stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30, (v) amend its certificate of
incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the relative voting rights of the separate classes of Freescale Capital Stock (including, without limitation,
through the conversion of one class of Freescale Capital Stock into another class of Freescale Capital Stock) or (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any
representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or
permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Freescale or otherwise jeopardize the Tax-Free Status, unless prior to taking any such
action set forth in the foregoing clauses (i) through (vi), (A) Freescale shall have requested that MINC obtain a Ruling in accordance with Section 7.04(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free
Status and MINC shall have received such a Ruling in form and substance satisfactory to MINC in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether a
Ruling is satisfactory, MINC may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such Ruling), or (B) Freescale shall provide MINC with an Unqualified Tax
Opinion in form and substance satisfactory to MINC in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether an opinion is satisfactory, MINC may
consider, among other factors, the appropriateness of any 

  

 21 

 
underlying assumptions and management’s representations if used as a basis for the opinion and MINC may determine that no opinion would be acceptable to
MINC) or (C) MINC shall have waived the requirement to obtain such ruling or opinion. 
  
 (e)    Certain Issuances of Freescale Capital Stock. If Freescale proposes to enter into any Section 7.02(e) Acquisition Transaction or, to the extent Freescale has the right to
prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first day after the two-year anniversary of the
Distribution Date, Freescale shall provide Motorola, no later than ten days following the signing of any written agreement with respect to the Section 7.02(e) Acquisition Transaction, with a written description of such transaction (including the
type and amount of Freescale Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of Freescale to the effect that the Section 7.02(e) Acquisition Transaction is not a Proposed Acquisition Transaction or any
other transaction to which the requirements of Section 7.02(d) apply (a “Board Certificate”). 
  
 (f)    Freescale Internal Restructuring. Freescale shall not engage in any internal restructuring (including by making
or revoking any election under Treasury Regulation Section 301.7701-3) involving Freescale and/or any of its subsidiaries or contribute any of the assets contributed to Freescale as part of the Contribution to any subsidiary of Freescale (any such
action, an “Internal Restructuring”) during or with respect to any taxable period (or portion thereof) ending on the Distribution Date without obtaining the prior written consent of MINC (such prior written consent not to be
unreasonably withheld). Freescale shall provide written notice to MINC describing any Internal Restructuring proposed to be taken during or with respect to any taxable period (or portion thereof) beginning after the Distribution Date and ending on
or prior to the two-year anniversary of the Distribution Date and shall consult with MINC regarding any such proposed actions reasonably in advance of taking any such proposed actions. 
  
 (g)    Distributions by Foreign Freescale Subsidiaries. Until January 1st of the calendar year immediately following the calendar year in which the Distribution occurs, Freescale shall neither cause
nor permit any foreign subsidiary of Freescale to enter into any transaction or take any action that would be considered under the Code to constitute the declaration or payment of a dividend (including pursuant to Section 304 of the Code) without
obtaining the prior written consent of MINC (such prior written consent not to be unreasonably withheld). 
  
 Section 7.03    Restrictions on MINC. MINC agrees that it will not take or fail to take, or permit any member of the
MINC Group to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters or Tax Opinions/Rulings. MINC
agrees that it will not take or fail to take, or permit any member of the MINC Group to take or fail to take, any action which prevents or could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any other transaction contemplated by
the Master Separation and Distribution Agreement which is intended by the parties to be tax-free from so qualifying; provided, however, that this Section 7.03 shall not be construed as obligating MINC to consummate the Distribution without
the satisfaction or waiver of all conditions set forth in Section 4.3 of the Master Separation and Distribution Agreement nor shall it be construed as preventing MINC from terminating the Master Separation and Distribution Agreement pursuant to
Section 9.14 thereof. 
  

 22 

 Section 7.04    Procedures Regarding Opinions and Rulings.

  
 (a)    If Freescale notifies
MINC that it desires to take one of the actions described in clauses (i) through (vi) of Section 7.02(d) (a “Notified Action”), MINC and Freescale shall reasonably cooperate to attempt to obtain the ruling or opinion referred to in
Section 7.02(d), unless MINC shall have waived the requirement to obtain such ruling or opinion. 
  
 (b)    Rulings or Unqualified Tax Opinions at Freescale’s Request. MINC agrees that at the reasonable request of
Freescale pursuant to Section 7.02(d), MINC shall cooperate with Freescale and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of permitting
Freescale to take the Notified Action. Further, in no event shall MINC be required to file any Ruling Request under this Section 7.04(b) unless Freescale represents that (A) it has read the Ruling Request, and (B) all information and
representations, if any, relating to any member of the Freescale Group, contained in the Ruling Request documents are (subject to any qualifications therein) true, correct and complete. Freescale shall reimburse MINC for all reasonable costs and
expenses incurred by the MINC Group in obtaining a Ruling or Unqualified Tax Opinion requested by Freescale within ten business days after receiving an invoice from MINC therefor. 
  
 (c)    Rulings or Unqualified Tax Opinions at MINC’s Request. MINC shall have the
right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If MINC determines to obtain a Ruling or an Unqualified Tax Opinion, Freescale shall (and shall cause each Affiliate of Freescale to) cooperate
with MINC and take any and all actions reasonably requested by MINC in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information
requested by the IRS or Tax Advisor; provided that Freescale shall not be required to make (or cause any Affiliate of Freescale to make) any representation or covenant that is inconsistent with historical facts or as to future matters or
events over which it has no control). MINC and Freescale shall each bear its own costs and expenses in obtaining a Ruling or an Unqualified Tax Opinion requested by MINC. 
  
 (d)    Freescale hereby agrees that MINC shall have sole and exclusive control over the process
of obtaining any Ruling, and that only MINC shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 7.04(b), (A) MINC shall keep Freescale informed in a timely manner of all material actions taken or proposed to be taken
by MINC in connection therewith; (B) MINC shall (1) reasonably in advance of the submission of any Ruling Request documents provide Freescale with a draft copy thereof, (2) reasonably consider Freescale’s comments on such draft copy, and (3)
provide Freescale with a final copy; and (C) MINC shall provide Freescale with notice reasonably in advance of, and Freescale shall have the right to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that
relate to such Ruling. Neither Freescale nor any Freescale Affiliate directly or indirectly controlled by Freescale shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the
Contribution or the Distribution (including the impact of any transaction on the Contribution or the Distribution) or any transaction listed on Schedule 7.02(a). 
  

 23 

 Section 7.05    Liability for Tax-Related Losses. 
  
 (a)    Notwithstanding anything in this Agreement
or the Master Separation and Distribution Agreement to the contrary, subject to Section 7.05(c), Freescale shall be responsible for, and shall indemnify and hold harmless MINC and its Affiliates and each of their respective officers, directors and
employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution, as defined in the Master
Separation and Distribution Agreement, the Distribution or the actions set forth in Section 3.4 of the Master Separation and Distribution Agreement) of all or a portion of Freescale’s stock and/or its assets by any means whatsoever by any
Person, (B) any negotiations, understandings, agreements or arrangements by Freescale with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants,
capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Freescale representing a
Fifty-Percent or Greater Interest therein, (C) any action or failure to act by Freescale after the IPO (including, without limitation, any amendment to Freescale’s certificate of incorporation (or other organizational documents), whether
through a stockholder vote or otherwise) affecting the relative voting rights of the separate classes of Freescale stock (including, without limitation, through the conversion of one class of Freescale Capital Stock into another class of Freescale
Capital Stock), (D) any act or failure to act by Freescale or any Freescale Affiliate described in Section 7.02 (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or
(C) of Section 7.02(d), a Board Certificate described in Section 7.02(e) or a consent described in Section 7.02(f) or (g)), or (E) any breach by Freescale of its agreement and representation set forth in Section 7.01(a). 
  
 (b)    Notwithstanding anything in this Agreement
or the Master Separation and Distribution Agreement to the contrary, subject to Section 7.05(c), MINC shall be responsible for, and shall indemnify and hold harmless Freescale and its Affiliates and each of their respective officers, directors and
employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution, as defined in the Master
Separation and Distribution Agreement, the Distribution or the actions set forth in Section 3.4 of the Master Separation and Distribution Agreement) of all or a portion of MINC’s stock and/or its assets by any means whatsoever by any Person
other than an Affiliate of MINC, (B) any negotiations, agreements or arrangements by MINC with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants,
capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of MINC representing a
Fifty-Percent or Greater Interest therein, (C) any act or failure to act by MINC or a member of the MINC Group described in Section 7.03 or (D) any breach by MINC of its agreement and representation set forth in Section 7.01(a). 
  
 (c)    To the extent that any Tax-Related Loss is
subject to indemnity under both Sections 7.05(a) and (b), 

  

 24 

 
responsibility for such Tax-Related Loss shall be shared by MINC and Freescale according to relative fault. 
  
 Section
8.        Assistance and Cooperation. 
  
 Section 8.01    Assistance and Cooperation. 
  
 (a)    After the IPO, the Companies shall cooperate (and cause their respective Affiliates to
cooperate) with each other and with each other’s agents, including accounting firms and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates including (i) preparation and filing of Tax Returns, (ii)
determining the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in respect of Taxes
assessed or proposed to be assessed. Such cooperation shall include making all information and documents in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 9. Each of the
Companies shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective Affiliates) responsible for preparing, maintaining, and
interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes. In the
event that a member of the MINC Group, on the one hand, or a member of the Freescale Group, on the other hand, suffers a Tax detriment as a result of a Transfer Pricing Adjustment, the Companies shall cooperate pursuant to this Section 8 to seek any
competent authority relief that may be available with respect to such Transfer Pricing Adjustment. 
  
 (b)    Any information or documents provided under this Section 8 shall be kept confidential by the Company receiving the
information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding any other provision of this Agreement or
any other agreement, (i) neither MINC nor any MINC Affiliate shall be required to provide Freescale, any Freescale Affiliate or any other Person access to or copies of any information or procedures (including the proceedings of any Tax Contest)
other than information or procedures that relate solely to Freescale, a Freescale Affiliate or the business or assets of Freescale or any Freescale Affiliate and (ii) in no event shall MINC or any MINC Affiliate be required to provide Freescale, any
Freescale Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that MINC determines that the provision of any information
to Freescale or any Freescale Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this Section 8 in a manner
that avoids any such harm or consequence. 
  
 Section
8.02    Income Tax Return Information. Freescale and MINC acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by MINC or Freescale pursuant to Section 8.01
or this Section 8.02. Freescale and MINC acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by MINC or Freescale could cause irreparable harm. 
  

 25 

 (a)    Each Company shall provide to the other Company information and
documents relating to its Group required by the other Company to prepare Tax Returns. Any information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form as the Responsible Company reasonably
requests and in sufficient time for the Responsible Company to file such Tax Returns on a timely basis. 
  
 (b)    At Freescale’s sole expense, Freescale shall provide to MINC the information set forth on Schedule 8.02(b) in
accordance with the deadlines set forth on such Schedule, and shall provide such other information reasonably requested in writing by MINC in connection with the preparation of Tax Returns in accordance with the deadlines set forth in such written
request. 
  
 (c)    In the event that
Freescale fails to provide any information requested by MINC pursuant to Section 8.01 or this Section 8.02, within the deadlines as set forth herein (or otherwise reasonably set by MINC and agreed to by Freescale, such agreement not to be
unreasonably withheld), MINC shall have the right to engage a nationally recognized public accounting firm of its choice (the “Accountant”), in its sole and absolute discretion, to gather such information directly from Freescale or
any other members of the Freescale Group. Freescale and all members of the Freescale Group agree, upon ten business days’ notice by MINC, in the case of a failure by Freescale to provide information pursuant to Section 8.01 or this Section
8.02, to permit any such Accountant full access to all records or other information requested by such Accountant that are in the possession of Freescale or any member of the Freescale Group during reasonable business hours. Freescale agrees to
promptly pay MINC all reasonable costs and expenses incurred by MINC in connection with the engagement of such Accountant. 
  
 Section 8.03    Reliance by MINC. If any member of the Freescale Group supplies information to a member of the MINC
Group in connection with a Tax liability and an officer of a member of the MINC Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of
the MINC Group identifying the information being so relied upon, the chief financial officer of Freescale (or any officer of Freescale as designated by the chief financial officer of Freescale) shall certify in writing that to his or her knowledge
(based upon consultation with appropriate employees) the information so supplied is accurate and complete. Freescale agrees to indemnify and hold harmless each member of the MINC Group and its directors, officers and employees from and against any
fine, penalty, or other cost or expense of any kind attributable to a member of the Freescale Group having supplied, pursuant to this Section 8, a member of the MINC Group with inaccurate or incomplete information in connection with a Tax liability.

  
 Section 8.04    Reliance by
Freescale. If any member of the MINC Group supplies information to a member of the Freescale Group in connection with a Tax liability and an officer of a member of the Freescale Group signs a statement or other document under penalties of
perjury in reliance upon the accuracy of such information, then upon the written request of such member of the Freescale Group identifying the information being so relied upon, the chief financial officer of MINC (or any officer of MINC as
designated by the chief financial officer of MINC) shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. MINC agrees to indemnify and hold
harmless each member of the Freescale Group and its directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to 

  

 26 

 
a member of the MINC Group having supplied, pursuant to this Section 8, a member of the Freescale Group with inaccurate or incomplete information in
connection with a Tax liability. 
  
 Section
9.        Tax Records. 
  
 Section 9.01    Retention of Tax Records. Each Company shall preserve and keep all Tax Records exclusively relating to the assets and activities of its Group for Pre-Deconsolidation Periods, and MINC shall
preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but
in any event until the later of (i) the expiration of any applicable statutes of limitation, or (ii) seven years after the Deconsolidation Date. After such later date, each Company may dispose of such records upon 90 days’ prior written notice
to the other Company. If, prior to the expiration of the applicable statute of limitation or such seven-year period, a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 9
are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then such first Company may dispose of such records upon 90 days’ prior notice to the other Company. Any notice
of an intent to dispose given pursuant to this Section 9.01 shall include a list of the records to be disposed of describing in reasonable detail each file, book, or other record accumulation being disposed. The notified Company shall have the
opportunity, at its cost and expense, to copy or remove, within such 90-day period, all or any part of such Tax Records. 
  
 Section 9.02    Access to Tax Records. The Companies and their respective Affiliates shall make available to each other for
inspection and copying during normal business hours upon reasonable notice all Tax Records in their possession to the extent reasonably required by the other Company in connection with the preparation of Tax Returns, audits, litigation, or the
resolution of items under this Agreement. 
  
 Section
10.        Tax Contests. 
  
 Section 10.01    Notice. Each of the parties shall provide prompt notice to the other party of any written communication from a Tax Authority regarding any pending or threatened Tax audit, assessment or proceeding
or other Tax Contest of which it becomes aware related to Taxes for Tax Periods for which it is indemnified by the other party hereunder. Such notice shall attach copies of the pertinent portion of any written communication from a Tax Authority and
contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters. If an
indemnified party has knowledge of an asserted Tax liability with respect to a matter for which it is to be indemnified hereunder and such party fails to give the indemnifying party prompt notice of such asserted Tax liability and the indemnifying
party is entitled under this agreement to contest the asserted Tax liability, then (i) if the indemnifying party is precluded from contesting the asserted Tax liability in any forum as a result of the failure to give prompt notice, the indemnifying
party shall have no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax liability, and (ii) if the indemnifying party is not precluded from contesting the asserted Tax liability in any forum, but such failure
to give prompt notice results in a material monetary detriment to the indemnifying party, then any amount which the indemnifying party is otherwise required to pay 

  

 27 

 
the indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment. 
  
 Section 10.02    Control of Tax Contests.

  
 (a)    Separate Company
Taxes. In the case of any Tax Contest with respect to any Separate Return (other than a Separate Return of Other Taxes described in clause (II) of Section 5.02), the Company having liability for the Tax shall have exclusive control over the Tax
Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(e) and (f) below. 
  
 (b)    MINC Federal Consolidated Income Tax Return. In the case of any Tax Contest with respect to any MINC Federal
Consolidated Income Tax Return, MINC shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(e) and (f) below. 
  
 (c)    MINC State Combined Income Tax Return.
In the case of any Tax Contest with respect to any MINC State Combined Income Tax Return, MINC shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to
Sections 10.02(e) and (f) below. 
  
 (d)    Joint Returns and Certain Other Returns. In the case of any Tax Contest with respect to (I) any Joint Return (other than any MINC Federal Consolidated Income Tax Return or any MINC State Combined
Income Tax Return) or (II) any Return of Other Taxes described in clause (II) of Section 5.02, (i) MINC shall control the defense or prosecution of the portion of the Tax Contest directly and exclusively related to any MINC Adjustment, including
settlement of any such MINC Adjustment and (ii) Freescale shall control the defense or prosecution of the portion of the Tax Contest directly and exclusively related to any Freescale Adjustment, including settlement of any such Freescale Adjustment,
and (iii) the Tax Contest Committee shall control the defense or prosecution of Joint Adjustments and any and all administrative matters not directly and exclusively related to any MINC Adjustment or Freescale Adjustment. The “Tax
Contest Committee” shall be comprised of two persons, one person selected by MINC (as designated in writing to Freescale) and one person selected by Freescale (as designated in writing to MINC). Each person serving on the Tax Contest
Committee shall continue to serve unless and until he or she is replaced by the party designating such person. Any and all matters to be decided by the Tax Contest Committee shall require the unanimous approval of both persons serving on the
committee. In the event the Tax Contest Committee shall be deadlocked on any matter, the provisions of Section 14 of this Agreement shall apply. 
  
 (e)    Settlement Rights. The Controlling Party shall have the sole right to contest, litigate, compromise and settle
any Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may
reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of
all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall provide the Non-Controlling Party copies of any written materials 

  

 28 

 
relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall timely provide the
Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; (iv) the Controlling Party shall consult with the
Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest; and (v) the Controlling
Party shall defend such Tax Contest diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of
any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling
Party from any other liability or obligation which it may have to the Controlling Party. In the case of any Tax Contest described in Section 10.02(a), (b) or (c), “Controlling Party” means the Company entitled to control the Tax
Contest under such Section and “Non-Controlling Party” means the other Company. 
  
 (f)    Tax Contest Participation. Unless waived by the parties in writing, the Controlling Party shall provide the
Non-Controlling Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to attend, any formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in
connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under
this Agreement. The failure of the Controlling Party to provide any notice specified in this Section 10.02(f) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the
Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may
have to the Controlling Party. 
  
 (g)    Power of Attorney. Each member of the Freescale Group shall execute and deliver to MINC (or such member of the MINC Group as MINC shall designate) any power of attorney or other similar document
reasonably requested by MINC (or such designee) in connection with any Tax Contest (as to which MINC is the Controlling Party) described in this Section 10. Each member of the MINC Group shall execute and deliver to Freescale (or such member of the
Freescale Group as Freescale shall designate) any power of attorney or other similar document requested by Freescale (or such designee) in connection with any Tax Contest (as to which Freescale is the Controlling Party) described in this Section 10.

  
 Section
11.    Effective Date; Termination of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective as of the date hereof. As of the date hereof, (i) all prior intercompany
Tax allocation agreements or arrangements shall be terminated, and (ii) amounts due under such agreements as of the date hereof shall be settled as of the date hereof (including capitalization or distribution of amounts due or receivable under such
agreements). Upon such termination and settlement, no further payments by or to MINC or by or to Freescale, with respect to such agreements shall be made, and all other rights and obligations resulting from 
  

 29 

 
such agreements between the Companies and their Affiliates shall cease at such time. Any payments pursuant to such agreements shall be disregarded for
purposes of computing amounts due under this Agreement; provided that payments made pursuant to such agreements shall be credited to Freescale or MINC, respectively, in computing their respective obligations pursuant to this Agreement, in the event
that such payments relate to a Tax liability that is the subject matter of this Agreement for a Tax Period that is the subject matter of this Agreement. 
  
 Section 12.        Survival of Obligations. The representations, warranties, covenants and
agreements set forth in this Agreement shall be unconditional and absolute and shall remain in effect without limitation as to time. 
  
 Section 13.        Treatment of Payments; Tax Gross Up. 
  
 Section 13.01    Treatment of Tax Indemnity and
Tax Benefit Payments. In the absence of any change in Tax treatment under the Code or other applicable Tax Law, 
  
 (a)    any Tax indemnity payments made by a Company under Section 5 shall be reported for Tax purposes by the payor and the
recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or
the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability, and 
  
 (b)    any Tax Benefit payments made by a Company
under Section 6, shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a
Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or
retained liability. 
  
 Section
13.02    Tax Gross Up. If notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were reported, there is an adjustment to the Tax liability of a Company as a result of its receipt of a
payment pursuant to this Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax
Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the Company receiving such payment would otherwise be entitled to receive pursuant to this Agreement. 
  
 Section 13.03    Interest Under This
Agreement. Anything herein to the contrary notwithstanding, to the extent one Company (“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period
from the date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the
extent provided by law) and as interest income by the Indemnitee (includible in income to the extent provided by law). The amount of the payment 
  

 30 

 
shall not be adjusted under Section 2.02 to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee. 

 
 Section 14.    Disagreements. The
Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings
connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (other than a High-Level Dispute) (a “Tax Advisor
Dispute”) between the Companies as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Advisor Dispute. If
such good faith negotiations do not resolve the Tax Advisor Dispute, then the matter, upon written request of either Company, will be referred for resolution to the Steering Committee, which will make a good faith effort to resolve the Tax Advisor
Dispute pursuant to the procedures set forth in Section 9.3(a) of the Master Separation and Distribution Agreement. If the Steering Committee does not agree to a resolution of a Tax Advisor Dispute within thirty (30) days after the reference of the
Tax Advisor Dispute to it, then the matter will be referred to a Tax Advisor acceptable to each of the Companies. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that the Tax
Advisor deems necessary to assist it in resolving such disagreement. The Tax Advisor shall furnish written notice to the Companies of its resolution of any such Tax Advisor Dispute as soon as practical, but in any event no later than 45 days after
its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be conclusive and binding on the Companies. Following receipt of the Tax Advisor’s written notice to the Companies of its resolution of the Tax Advisor
Dispute, the Companies shall each take or cause to be taken any action necessary to implement such resolution of the Tax Advisor. In accordance with Section 16, each Company shall pay its own fees and expenses (including the fees and expenses of its
representatives) incurred in connection with the referral of the matter to the Tax Advisor. All fees and expenses of the Tax Advisor in connection with such referral shall be shared equally by the Companies. Any High-Level Dispute shall be resolved
pursuant to the procedures set forth in Section 9.3 of the Master Separation and Distribution Agreement. Nothing in this Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax
Advisor Dispute through the Tax Advisor Steering Committee and the Tax Advisor (or any delay resulting from the efforts to resolve any High-Level Dispute through the procedures set forth in Section 9.3 of the Master Separation and Distribution
Agreement) could result in serious and irreparable injury to either Company. 
  
 Section 15.        Late Payments. Any amount owed by one party to another party under this Agreement which is not paid when due shall bear interest at the Prime
Rate plus two percent, compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this Section 15 duplicates interest required to be paid under any other provision of this Agreement,
interest shall be computed at the higher of the interest rate provided under this Section 15 or the interest rate provided under such other provision. 
  
 Section 16.        Expenses. Except as otherwise provided in this Agreement, each party and
its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement. 
  
 Section 17.        General
Provisions. 
  
 Section
17.01    Addresses and Notices. Each party giving any notice required or permitted under this Agreement will give the notice in writing and use one of the following 
  

 31 

 
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 17.01: (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 17.01 and shall be deemed given on the date that the intended addressee
actually receives the notice. 
  

			
	 If to Motorola:
  
 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Director, Taxes
 Facsimile: 
  
  
	  	 with a copy to:
  
 Motorola, Inc.
 1303 East Algonquin Road
 Schaumburg, Illinois 60196
 Attention: Chief Financial Officer
 Facsimile: 
  
  

	 If to Freescale:
  
 Freescale Semiconductor, Inc.
 6501 William Cannon Drive
 Austin, Texas 78737
 Attention: Director, Taxes
 Facsimile: 
	  	 with a copy to:
  
 Freescale Semiconductor, Inc.
 6501 William Cannon Drive
 Austin, Texas 78737
 Attention: Chief Financial Officer
 Facsimile: 

  
 A party may change the address for
receiving notices under this Agreement by providing written notice of the change of address to the other parties. 
  
 Section 17.02    Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their successors and assigns. 
  
 Section
17.03    Waiver. The parties may waive a provision of this Agreement 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. 
  
 Section 17.04    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. 
  

 32 

 Section 17.05    Authority. Each of the parties represents to the other
that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other action,
(c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 
  
 Section 17.06    Further Action. The parties shall execute and deliver all documents, provide all information, and take
or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such powers of attorney or other
authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10. 
  
 Section 17.07    Integration. This
Agreement, together with each of the exhibits and schedules appended hereto, 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, as applicable. In the event of any inconsistency between this Agreement and the Master Separation and
Distribution Agreement, or any other agreements relating to the transactions contemplated by the Master Separation and Distribution Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control. 
  
 Section 17.08    Construction. The language
in all parts of this Agreement shall in all cases be construed according to its fair meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do
not affect this Agreement’s construction or interpretation. Unless otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement. 
  
 Section 17.09    No Double Recovery. No provision of this Agreement shall be construed to
provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless
expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement. 
  
 Section 17.10    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. This Agreement is effective upon delivery of one executed counterpart
from each party to the other party. 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. 
  

 33 

 Section 17.11    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 exhibits and schedules hereto and thereto (whether
arising in contract, tort, equity or otherwise). 
  
 Section
17.12    Jurisdiction. If any dispute arises out of or in connection with this Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause
each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that
the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION BY JURY. 
  
 Section 17.13    Amendment. The parties may amend this Agreement 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. 
  
 Section 17.14    Freescale Subsidiaries. If, at any time, Freescale acquires or creates one or more subsidiaries that are includable in the Freescale Group, they shall be subject to
this Agreement and all references to the Freescale Group herein shall thereafter include a reference to such subsidiaries. 
  
 Section 17.15    Successors. This Agreement shall be binding on and inure to the benefit of any successor by merger,
acquisition of assets, or otherwise, to any of the parties hereto (including but not limited to any successor of MINC or Freescale succeeding to the Tax attributes of either under Section 381 of the Code), to the same extent as if such successor had
been an original party to this Agreement. 
  
 Section
17.16    Injunctions. The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise
breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in
addition to any other remedy to which they may be entitled at law or in equity. 
  

 34 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers as
of the date set forth above. 
  
 Motorola, Inc. 
  
  

			
	By:	 	 /s/ David W. Devonshire

	Its:	 	Executive Vice President and Chief Financial Officer

  
  
 Freescale Semiconductor, Inc. 
  
  

			
	By:	 	 /s/ Alan Campbell

	Its:	 	Senior Vice President and Chief Financial Officer

  
  

 35

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