Exhibit 10.15
This Restricted Stock Unit Award (“Award”) is awarded on February ___, 2008 (“Date
of Grant”), by Motorola, Inc. (the “Company” or “Motorola”) to Xxxx Xxxxx (the
“Grantee”).
WHEREAS, Grantee is receiving the Award under the Motorola Omnibus Incentive Plan of 2006, as
amended (the “2006 Incentive Plan” or the “Plan”);
WHEREAS, Grantee is the Executive Vice President and Chief Financial Officer of Motorola;
WHEREAS, the Award is a grant of Motorola restricted stock units authorized by the Board of
Directors and the Board’s Compensation and Leadership Committee (the “Compensation
Committee”); and
WHEREAS, it is a condition to Grantee receiving the Award that Grantee electronically accept
the terms, conditions and Restrictions applicable to the restricted stock units as set forth in
this agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good
and valuable consideration, the Company hereby awards restricted stock units to Grantee on the
following terms and conditions:
| 1. |
|
Award of Restricted Stock Units. The Company hereby grants to Grantee a total of
131,000 Motorola restricted stock units (the “Units”) subject to the terms and
conditions set forth below. All Awards shall be paid in whole shares of Motorola Common
Stock (“Common Stock”); no fractional shares shall be credited or delivered to
Grantee. |
| 2. |
|
Restrictions. The Units are being awarded to Grantee subject to the transfer and
forfeiture conditions set forth below (the “Restrictions”) which shall lapse, if
at all, as described in Section 3 below. For purposes of this Award, the term Units
includes any additional Units granted to the Grantee with respect to Units, still subject
to the Restrictions. |
| |
a. |
|
Grantee may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge
or otherwise transfer any of the Units still subject to Restrictions. The Units
shall be forfeited if Grantee violates or attempts to violate these transfer
Restrictions. Motorola shall have the right to assign this Agreement, which
shall not affect the validity or enforceability of this Agreement. This
Agreement shall inure to the benefit of assigns and successors of Motorola. |
| |
| |
b. |
|
Any Units still subject to the Restrictions shall be automatically
forfeited upon the Grantee’s termination of employment with Motorola or a
Subsidiary for any reason other than death, Total and Permanent Disability, or
Involuntary Termination due to (i) a Divestiture or (ii) for a reason other
than for Cause. For purposes of this Agreement, a “Subsidiary” is any
corporation or other entity in which a 50 percent or greater interest is held
directly or indirectly by Motorola and which is consolidated for financial
reporting purposes. Total and Permanent Disability is defined in Section 3(a). |
| |
| |
c. |
|
If Grantee engages in any of the following conduct for any reason, in
addition to all remedies in law and/or equity available to the Company or any
Subsidiary, Grantee shall forfeit all restricted stock units under the Award
whose Restrictions |
| |
|
|
have not lapsed, and, for all restricted stock units under the Award whose
Restrictions have lapsed, Grantee shall immediately pay to the Company the
Fair Market Value (as defined in paragraph 7 below) of Motorola Common Stock
(“Common Stock”) on the date(s) such Restrictions lapsed, without
regard to any taxes that may have been deducted from such amount. For
purposes of subparagraphs (i) through and including (v) below, “Company” or
“Motorola” shall mean Motorola, Inc. and/or any of its Subsidiaries: |
| |
(i) |
|
During the course of Grantee’s employment and
thereafter, Grantee uses or discloses, except on behalf of the
Company and pursuant to the Company’s directions, any Company
Confidential Information. “Confidential Information” means
information concerning the Company and its business that is not
generally known outside the Company, and includes (A) trade
secrets; (B) intellectual property; (C) the Company’s methods of
operation and Company processes; (D) information regarding the
Company’s present and/or future products, developments, processes
and systems, including invention disclosures and patent
applications; (E) information on customers or potential customers,
including customers’ names, sales records, prices, and other terms
of sales and Company cost information; (F) Company personnel data;
(G) Company business plans, marketing plans, financial data and
projections; and (H) information received in confidence by the
Company from third parties. Information regarding products,
services or technological innovations in development, in test
marketing or being marketed or promoted in a discrete geographic
region, which information the Company or one of its affiliates is
considering for broader use, shall be deemed generally known until
such broader use is actually commercially implemented; and/or |
| |
| |
(ii) |
|
During Grantee’s employment and for a period of two
years following the termination of Grantee’s employment for any
reason, Grantee hires, recruits, solicits or induces, or causes,
allows, permits or aids others to hire, recruit, solicit or induce,
or to communicate in support of those activities, any employee of
the Company who possesses Confidential Information of the Company
to terminate his/her employment with the Company and/or to seek
employment with Grantee’s new or prospective employer, or any other
company; and/or |
| |
| |
(iii) |
|
During Grantee’s employment and for a period of
two years following the termination of Grantee’s employment for any
reason, Grantee engages in activities which are entirely or in part
the same as or similar to activities in which Grantee engaged at
any time during the two years preceding termination of Grantee’s
employment with the Company, for any person, company or entity in
connection with products, services or technological developments
(existing or planned) that are entirely or in part the same as,
similar to, or competitive with, any products, services or
technological developments (existing or planned) on which Grantee
worked at any time during the two years preceding termination of
Grantee’s |
| |
|
|
employment. This paragraph applies in countries in which
Grantee has physically been present performing work for the
Company at any time during the two years preceding termination
of Grantee’s employment; and/or |
| |
(iv) |
|
During Grantee’s employment and for a period of two
years following the termination of Grantee’s employment for any
reason, Grantee, directly or indirectly, on behalf of Grantee or
any other person, company or entity, solicits or participates in
soliciting, products or services competitive with or similar to
products or services offered by, manufactured by, designed by or
distributed by the Company to any person, company or entity which
was a customer or potential customer for such products or services
and with which Grantee had direct or indirect contact regarding
those products or services or about which Grantee learned
confidential information at any time during the two years prior to
Grantee’s termination of employment with the Company; and/or |
| |
| |
(v) |
|
During Grantee’s employment and for a period of two
years following the termination of Grantee’s employment for any
reason, Grantee, directly or indirectly, in any capacity, provides
products or services competitive with or similar to products or
services offered by the Company to any person, company or entity
which was a customer for such products or services and with which
customer Grantee had direct or indirect contact regarding those
products or services or about which customer Grantee learned
Confidential Information at any time during the two years prior to
Grantee’s termination of employment with the Company. |
| |
d. |
|
The Units are subject to the terms and conditions of the Company’s
Policy Regarding Recoupment of Incentive Payments upon Financial Restatement
(such policy, as it may be amended from time to time, being the “Recoupment
Policy”). The Recoupment Policy provides for determinations by the
Company’s independent directors that, as a result of intentional misconduct by
Grantee, the Company’s financial results were restated (a “Policy
Restatement”). In the event of a Policy Restatement, the Company’s
independent directors may require, among other things (a) cancellation of any
of the Units that remain outstanding; and/or (b) reimbursement of any gains in
respect of the Units, if and to the extent the conditions set forth in the
Recoupment Policy apply. Any determinations made by the independent directors
in accordance with the Recoupment Policy shall be binding upon Grantee. The
Recoupment Policy is in addition to any other remedies which may be otherwise
available at law, in equity or under contract, to the Company. |
The Company will not be obligated to pay Grantee any consideration whatsoever for forfeited Units.
| 3. |
|
Lapse of Restrictions. |
| |
a. |
|
The Restrictions applicable to the Units shall lapse, as long as the
Units have not been forfeited as described in Section 2 above, as follows: |
| |
(i) |
|
On the third anniversary of the Date of Grant if Grantee is
continuously employed by the Company through that date. For purposes of this
Agreement, the “Restriction Period” applicable to a Unit shall refer to the
period of time beginning on the Date of Grant and ending on the date that the
Restrictions applicable to such Unit shall lapse, as set forth
above. |
| |
| |
(ii) |
|
If a Change in Control of the Company occurs and
the successor corporation (or parent thereof) does not assume this
Award or replace it with a comparable award; provided, further,
that with respect to any Award that is assumed or replaced, such
assumed or replaced awards shall provide that the Restrictions
shall lapse if Grantee is involuntarily terminated (for a reason
other than “Cause”) or quits for “Good Reason” within 24 months of
the Change in Control. For purposes of this Agreement, the terms
“Change in Control”, “Cause ” and “Good Reason” are defined in the
2006 Incentive Plan; |
| |
| |
(iii) |
|
Upon termination of Grantee’s employment by
Motorola or a Subsidiary by Total and Permanent Disability. “Total
and Permanent Disability” means for (x) U.S. employees, entitlement
to long term disability benefits under the Motorola Disability
Income Plan, as amended and any successor plan or a determination
of a permanent and total disability under a state workers
compensation statute and (y) non-U.S. employees, as established by
applicable Motorola policy or as required by local regulations; or |
| |
| |
(iv) |
|
If the Grantee dies. |
| |
b. |
|
In the case of Involuntary Termination due to a Divestiture before the
expiration of the Restriction Period, if the Units have not been forfeited as
described in Section 2 above, then the Restrictions shall lapse on a pro rata
basis determined by dividing (i) the number of completed full years of service
by the Grantee from the Award Date to the employee’s date of termination by
(ii) the total length of the Restriction Period. In the case of Involuntary
Termination for a reason other than Cause (but not a Divestiture) before the
expiration of the Restriction Period, if the Units have not been forfeited as
described in Section 2 above, then the Restrictions on all the Units shall
lapse. |
| |
| |
c. |
|
“Termination due to a Divestiture” for purposes of this Agreement means
if Grantee accepts employment with another company in direct connection with
the sale, lease, outsourcing arrangement or any other type of asset transfer or
transfer of any portion of a facility or any portion of a discrete
organizational unit of Motorola or a Subsidiary, or if Grantee remains employed
by a Subsidiary that is sold or whose shares are distributed to the Motorola
stockholders in a spin-off or similar transaction (a “Divestiture”). |
| |
| |
d. |
|
If, during the Restriction Period, the Grantee takes a Leave of Absence
from Motorola or a Subsidiary, the Units will continue to be subject to this
Agreement. If the Restriction Period expires while the Grantee is on a Leave
of Absence the |
| |
|
|
Grantee will be entitled to the Units even if the Grantee has not returned
to active employment. “Leave of Absence” means an approved leave of absence
from Motorola or a Subsidiary that is not a termination of employment, as
determined by Motorola. |
| |
e. |
|
To the extent the Restrictions lapse under this Section 3 with respect
to the Units, they will be free of the terms and conditions of this Award
(other than 2(c)). |
| 4. |
|
Adjustments. If the number of outstanding shares of Common Stock is changed as a
result of a stock split or the like without additional consideration to the Company, the
number of Units subject to this Award shall be adjusted to correspond to the change in the
outstanding shares of Common Stock. |
| 5. |
|
Dividends. No dividends (or dividend equivalents) shall be paid with respect to
Units credited to the Grantee’s account. |
| 6. |
|
Delivery of Certificates or Equivalent. Upon the lapse of Restrictions
applicable to the Units, the Company shall, at its election, either (i) deliver to the
Grantee a certificate representing a number of shares of Common Stock equal to the number
of Units upon which such Restrictions have lapsed, or (ii) establish a brokerage account
for the Grantee and credit to that account the number of shares of Common Stock of the
Company equal to the number of Units upon which such Restrictions have lapsed. |
| 7. |
|
Withholding Taxes. The Company is entitled to withhold applicable taxes for the
respective tax jurisdiction attributable to this Award or any payment made in connection
with the Units. Grantee may satisfy any minimum withholding obligation in whole or in
part by electing to have the plan administrator retain shares of Common Stock deliverable
in connection with the Units having a Fair Market Value on the date the Restrictions
applicable to the Units lapse equal to the amount to be withheld. “Fair Market Value” for
this purpose shall be the closing price for a share of Common Stock on the date the
Restrictions applicable to the Units lapse (the “Restrictions Lapse Date”) as reported for
the New York Stock Exchange- Composite Transactions in the Wall Street Journal at
xxx.xxxxxx.xxx.xxx or, for purposes of imposing sanctions under paragraph 2(d), on any
date specified therein. In the event the New York Stock Exchange is not open for trading
on the Restrictions Lapse Date, or if the Common Stock does not trade on such day, Fair
Market Value for this purpose shall be the closing price of the Common Stock on the last
trading day prior to the Restrictions Lapse Date. |
| 8. |
|
Voting and Other Rights. |
| |
a. |
|
Grantee shall have no rights as a stockholder of the Company in
respect of the Units, including the right to vote and to receive cash
dividends and other distributions until delivery of certificates
representing shares of Common Stock in satisfaction of the Units. |
| |
| |
b. |
|
The grant of Units does not confer upon Grantee any right to
continue in the employ of the Company or a Subsidiary or to interfere with
the right of the Company or a Subsidiary, to terminate Grantee’s employment
at any time. |
| 9. |
|
Agreement Following Termination of Employment. Grantee agrees that upon
termination of employment with Motorola or a Subsidiary, Grantee will immediately inform
Motorola of (a) the identity of any new employer (or the nature of any start-up business
or self-employment), |
| |
|
(b) Grantee’s new title, and (c) Grantee’s job duties and responsibilities. Grantee
hereby authorizes Motorola or a Subsidiary to provide a copy of this Award Document to
Grantee’s new employer. Grantee further agrees to provide information to Motorola or a
Subsidiary as may from time to time be requested in order to determine his/her
compliance with the terms hereof. |
| 10. |
|
Consent to Transfer Personal Data. By accepting this award, Grantee voluntarily
acknowledges and consents to the collection, use, processing and transfer of personal data
as described in this paragraph. Grantee is not obliged to consent to such collection,
use, processing and transfer of personal data. However, failure to provide the consent
may affect Grantee’s ability to participate in the Plan. Motorola, its Subsidiaries and
Grantee’s employer hold certain personal information about Grantee, that may include
his/her name, home address and telephone number, date of birth, social security number or
other employee identification number, salary grade, hire data, salary, nationality, job
title, any shares of stock held in Motorola, or details of all restricted stock units or
any other entitlement to shares of stock awarded, canceled, purchased, vested, or
unvested, for the purpose of managing and administering the Plan (“Data”). Motorola
and/or its Subsidiaries will transfer Data amongst themselves as necessary for the purpose
of implementation, administration and management of Grantee’s participation in the Plan,
and Motorola and/or any of its Subsidiaries may each further transfer Data to any third
parties assisting Motorola in the implementation, administration and management of the
Plan. These recipients may be located throughout the world, including the United States.
Grantee authorizes them to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing
Grantee’s participation in the Plan, including any requisite transfer of such Data as may
be required for the administration of the Plan and/or the subsequent holding of shares of
stock on Grantee’s behalf to a broker or other third party with whom Grantee may elect to
deposit any shares of stock acquired pursuant to the Plan. Grantee may, at any time,
review Data, require any necessary amendments to it or withdraw the consents herein in
writing by contacting Motorola; however, withdrawing consent may affect Grantee’s ability
to participate in the Plan. |
| 11. |
|
Nature of Award. By accepting this Award Agreement, the Grantee acknowledges his
or her understanding that the grant of Units under this Award Agreement is completely at
the discretion of Motorola, and that Motorola’s decision to make this Award in no way
implies that similar awards may be granted in the future or that Grantee has any guarantee
of future employment. Nor shall this or any such grant interfere with Grantee’s right or
the Company’s right to terminate such employment relationship at any time, with or without
cause, to the extent permitted by applicable laws and any enforceable agreement between
Grantee and the Company. In addition, the Grantee hereby acknowledges that he or she has
entered into employment with Motorola or a Subsidiary upon terms that did not include this
Award or similar awards, that his or her decision to continue employment is not dependent
on an expectation of this Award or similar awards, and that any amount received under this
Award is considered an amount in addition to that which the Grantee expects to be paid for
the performance of his or her services. Grantee’s acceptance of this Award is voluntary.
The Award is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses, long-service awards,
pension, or retirement benefits or similar payments, notwithstanding any provision of any
compensation, insurance agreement or benefit plan to the contrary, |
| 12. |
|
Remedies for Breach. Grantee hereby acknowledges that the harm caused to the
Company by the breach or anticipated breach of paragraphs 2(c)(i), (ii), (iii), (iv)
and/or (v) of this |
| |
|
Agreement will be irreparable and further agrees the Company may obtain injunctive
relief against the Grantee in addition to and cumulative with any other legal or
equitable rights and remedies the Company may have pursuant to this Agreement, any other
agreements between the Grantee and the Company for the protection of the Company’s
Confidential Information, or law, including the recovery of liquidated damages.
Grantee agrees that any interim or final equitable relief entered by a court of
competent jurisdiction, as specified in paragraph 15 below, will, at the request of the
Company, be entered on consent and enforced by any such court having jurisdiction over
the Grantee. This relief would occur without prejudice to any rights either party may
have to appeal from the proceedings that resulted in any grant of such relief. |
| 13. |
|
Acknowledgements. With respect to the subject matter of paragraphs 2(c)(i),
(ii), (iii), (iv) and (v) and paragraphs 12 and 15 hereof, this Agreement is the entire
agreement with the Company. No waiver of any breach of any provision of this Agreement by
the Company shall be construed to be a waiver of any succeeding breach or as a
modification of such provision. The provisions of this Agreement shall be severable and
in the event that any provision of this Agreement shall be found by any court as specified
in paragraph 15 below to be unenforceable, in whole or in part, the remainder of this
Agreement shall nevertheless be enforceable and binding on the parties. Grantee hereby
agrees that the court may modify any invalid, overbroad or unenforceable term of this
Agreement so that such term, as modified, is valid and enforceable under applicable law.
Further, by accepting any Award under this Agreement, Grantee affirmatively states that
(s)he has not, will not and cannot rely on any representations not expressly made herein. |
| 14. |
|
Funding. No assets or shares of Common Stock shall be segregated or earmarked by
the Company in respect of any Units awarded hereunder. The grant of Units hereunder shall
not constitute a trust and shall be solely for the purpose of recording an unsecured
contractual obligation of the Company. |
| 15. |
|
Governing Law. All questions concerning the construction, validity and
interpretation of this Award shall be governed by and construed according to the law of
the State of Illinois without regard to any state’s conflicts of law principles. Any
disputes regarding this Award or Agreement shall be brought only in the state or federal
courts of Illinois. |
| 16. |
|
Waiver. The failure of the Company to enforce at any time any provision of this
Award shall in no way be construed to be a waiver of such provision or any other provision
hereof. |
| 17. |
|
Actions by the Compensation Committee. The Committee may delegate its authority
to administer this Agreement. The actions and determinations of the Compensation
Committee or delegate shall be binding upon the parties. |
| 18. |
|
Acceptance of Terms and Conditions. By electronically accepting this Award
within 30 days after the date of the electronic mail notification by the Company to
Grantee of the grant of this Award (“Email Notification Date”), Grantee agrees to
be bound by the foregoing terms and conditions, the 2006 Incentive Plan and any and all
rules and regulations established by Motorola in connection with awards issued under the
2006 Incentive Plan. If Grantee does not electronically accept this Award within 30 days
of the Email Notification Date Grantee will not be entitled to the Units. |
| 19. |
|
Plan Documents. The 2006 Incentive Plan and the Prospectus for the 2006
Incentive Plan are available at xxxx://xxxx.xxx.xxx/xxx.xxxxxxxx/xxxxxx_xxxxxxxxxx/xxxxx_xxxxxxx/xxxx_xxxxxxxxx.xxx or
from Global Rewards, 0000 Xxxx Xxxxxxxxx Xxxx, Xxxxxxxxxx, XX 00000, (000) 000-0000.
|
