-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V/0B8hL2obhJe8PitvXkEIKuCKjusSJwfM8X7Nl5WoHVMHqQvWq3N6mUHp4JDnu9 L4T44sC1ogW4Aw7TtfbUtA== 0000893750-99-000698.txt : 19991224 0000893750-99-000698.hdr.sgml : 19991224 ACCESSION NUMBER: 0000893750-99-000698 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991222 ITEM INFORMATION: FILED AS OF DATE: 19991223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL INSTRUMENT CORP CENTRAL INDEX KEY: 0001035881 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 364134221 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-12925 FILM NUMBER: 99779985 BUSINESS ADDRESS: STREET 1: 101 TOURNAMENT DRIVE CITY: HORSHAM STATE: PA ZIP: 19044 BUSINESS PHONE: 2153231000 MAIL ADDRESS: STREET 1: 101 TOURNAMENT DRIVE CITY: HORSHAM STATE: PA ZIP: 19044 FORMER COMPANY: FORMER CONFORMED NAME: NEXTLEVEL SYSTEMS INC DATE OF NAME CHANGE: 19970314 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 22, 1999 GENERAL INSTRUMENT CORPORATION (Exact Name of registrant specified in its charter) Delaware 001-12925 36-4134221 ----------------------- ----------------------- -------------------- (State of Incorporation) (Commission File Number) (IRS Employer Identification No.) 101 Tournament Drive Horsham, PA 19044 ---------------------------------------- (Address of principal executive offices) Registrant's telephone number: (215) 323-1000 Item 5. Other Events ------------ On September 14, 1999, General Instrument Corporation (the "Company") entered into an agreement and plan of merger with Motorola, Inc. ("Motorola") and a wholly-owned subsidiary of Motorola ("Sub") pursuant to which the Company will merge with Sub and become a wholly- owned subsidiary of Motorola and each share of common stock of the Company (other than shares held in the treasury of the Company) will be converted into the right to receive 0.575 of a share of Motorola common stock (the "Merger"). It is currently contemplated that the Merger will be consummated shortly following the receipt of approval of the Company's stockholders at a special meeting of stockholders of the Company to be held on January 5, 2000. A summary of the terms of the Merger and a copy of the merger agreement are included in the Company's proxy statement dated November 29, 1999 included in Motorola's Registration Statement on Form S-4 (File No. 333-88735) (the "Merger Proxy Statement") and incorporated herein by reference. Reference is made to the section of the Merger Proxy Statement entitled "Interests of Certain Persons in the Merger", which contains a description of Motorola's intention to implement a retention program for senior executives of the Company in order to provide incentives for them to remain with Motorola after the Merger is completed and to achieve high performance results. In furtherance of such retention program, on December 22, 1999, Edward D. Breen, Chairman of the Board and Chief Executive Officer, and certain other executives of the Company entered into retention agreements (the "Retention Agreements") with Motorola as contemplated by the proposed arrangements described in the Merger Proxy Statement under "Interests of Certain Persons in the Merger". As discussed in the Merger Proxy Statement, the Retention Agreements have three components: Motorola stock options, restricted Motorola share grants and cash retention bonuses. Pursuant to the Retention Agreements, each executive will receive two grants of Motorola stock options. Motorola will make one grant of stock options with an exercise price equal to the fair market value of the underlying shares on the date of grant within 10 business days after the effective time of the Merger and the other grant at the next annual cycle grant of Motorola stock options following the quarter in which the Merger occurs. The Motorola stock options will vest in four equal installments, on each of the first four anniversaries of the date of grant, in accordance with the Motorola Incentive Plan of 1998. The Retention Agreements provide that certain of the executives will be granted restricted Motorola shares within 10 business days after the effective time of the Merger, that will vest if their employment continues through the second anniversary of the Merger, subject to the terms and conditions of the Motorola Incentive Plan of 1998. In addition, under the Retention Agreements, the executives will receive a cash retention bonus if their employment continues for two years from the completion date of the Merger. The cash retention bonus with respect to certain executives includes a tax gross- up payment so that the executive is made whole for a specified amount of ordinary income tax levied against the cash bonus payment, assuming a 31.8% tax rate. The aggregate amount of such gross-up payments is approximately $2.6 million if all such retention bonuses become payable. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GENERAL INSTRUMENT CORPORATION (Registrant) By: /s/ Robert A. Scott Name: Robert A. Scott Title: Senior Vice President, General Counsel and Secretary Date: December 23, 1999 -----END PRIVACY-ENHANCED MESSAGE-----