Motorola 2009–2011 Long Range Incentive Plan (LRIP) Performance Cycle Terms

Summary

This agreement outlines Motorola's Long Range Incentive Plan (LRIP) for the 2009–2011 performance cycle. The plan rewards participants based on Motorola's total shareholder return (TSR) over a three-year period compared to a specified group of peer companies. Payouts are determined by Motorola's ranking among these peers, with higher ranks earning higher payout factors. The agreement defines how TSR is calculated and lists the peer companies used for comparison. The plan covers the period from January 1, 2009, to December 31, 2011.

EX-10.4 5 c50170exv10w4.htm EX-10.4 EX-10.4
Exhibit 10.4
Motorola Long Range Incentive Plan (LRIP) of 2009
                 
    2009-2011 LRIP Performance Cycle
 
               
Performance Period   Three years from January 1, 2009-December 31, 2011
 
               
Performance Measure   Relative Total Shareholder Return (TSR)
 
               
    TSR Defined as:
                Ending stock price
                    Daily average during the final three months of the Performance Cycle
                 + Value of reinvested dividends
                 = Total ending value
               Beginning stock price
                    Daily average during the three months preceding the Performance Cycle
                 = Total value created
                 ÷ Beginning share price
                    Daily average during the three months preceding the Performance Cycle
    = Total shareholder return                              
 
               
Peer Group
  Alcatel-Lucent (ALU)
  LM Ericsson Telephone Co. (ERIC)
 
  Apple Inc. (AAPL)
  Microsoft Corporation (MSFT)
 
  Cisco Systems, Inc. (CSCO)
  Nokia Corp. (NOK)
 
  Dell Inc. (DELL)
  Nortel Networks Corp. (NRTLQ.PK)
 
  EMC Corporation (EMC)
  Oracle Corp. (ORCL)
 
  Hewlett-Packard Company (HPQ)
  QUALCOMM Inc. (QCOM)
 
  Intel Corporation (INTC)
  Sun Microsystems Inc. (JAVA)
 
  International Business Machines Corp. (IBM)
  Texas Instruments Inc. (TXN)
                 
Payout Scale   TSR Rank   Payout Factor
 
    1       200 %
 
    2       200 %
 
    3       190 %
 
    4       170 %
 
    5       150 %
 
    6       140 %
 
    7       125 %
 
    8       110 %
 
    9       100 %
 
    10       75 %
 
    11       50 %
 
    12       25 %
 
    13       0 %
 
    14       0 %
 
    15       0 %
 
    16       0 %
 
    17       0 %