SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
Pepe Alexander

(Last) (First) (Middle)
C/O FREESCALE SEMICONDUCTOR, INC.
6501 WILLIAM CANNON DRIVE WEST

(Street)
AUSTIN TX 78735

(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
FREESCALE SEMICONDUCTOR INC [ FSL ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director 10% Owner
X Officer (give title below) Other (specify below)
Senior VP, Manufacturing
3. Date of Earliest Transaction (Month/Day/Year)
12/01/2006
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Freescale Semiconductor, Inc. Class A Common Stock 12/01/2006 A(1) 9,459 A $0 90,909 D
Freescale Semiconductor, Inc. Class A Common Stock 12/01/2006 D(2) 90,909 D $40 0 D
Freescale Semiconductor, Inc. Class A Common Stock 12/01/2006 D(3) 4.1247 D $40 0 I 401(k) Plan
Freescale Semiconductor, Inc. Class B Common Stock 12/01/2006 D(4) 2,022.3317 D $40 0 D
Freescale Semiconductor, Inc. Class B Common Stock 12/01/2006 D(5) 39.462 D $40 0 I 401(k) Plan
Freescale Semiconductor, Inc. Class B Common Stock 12/01/2006 D(6) 132.001 D $40 0 I held w/spouse
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee stock option (right to buy) $13 07/16/2004 D 29,000 (7) 07/16/2014 Class A Common Stock 29,000 $40(8) 0 D
Employee stock option (right to buy) $7.5264 12/02/2004 D 17,823 (9) 05/06/2013 Class A Common Stock 17,823 $40(10) 0 D
Employee stock option (right to buy) $8.23 12/02/2004 D 20,523 (11) 12/20/2007 Class A Common Stock 20,523 $40(10) 0 D
Employee stock option (right to buy) $13.3401 12/02/2004 D 2,700 (12) 03/16/2011 Class A Common Stock 2,700 $40(10) 0 D
Employee stock option (right to buy) $13.3679 12/02/2004 D 11,882 (13) 05/07/2012 Class A Common Stock 11,882 $40(10) 0 D
Employee stock option (right to buy) $14.4418 12/02/2004 D 2,700 (14) 03/16/2011 Class A Common Stock 2,700 $40(10) 0 D
Employee stock option (right to buy) $18.96 05/11/2005 D 50,000 (15) 05/11/2012 Class A Common Stock 50,000 $40(16) 0 D
Employee stock option (right to buy) $31.45 04/24/2006 D 31,606 (15) 04/24/2013 Class A Common Stock 31,606 $40(16) 0 D
Explanation of Responses:
1. Reflects the issuance of restricted stock units that settle in Issuer's Class A Common Stock pursuant to a performance based award granted to Reporting Person under the Freescale Semiconductor, Inc. Omnibus Incentive Plan of 2005. The amount of restricted stock units issued under the award was calculated pursuant to the change of control provisions of the award agreement as a result of the transactions consummated under the Merger Agreement dated September 15, 2006 by and among the Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation.
2. Includes Reporting Person's restricted stock units which were accelerated and converted into the right to receive $40 per share in cash or equity, as applicable, on the Transaction Date under the terms of the Merger Agreement dated September 15, 2006, by and among the Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation.
3. Reporting Person's holdings of Issuer's Class A Common Stock held in Issuer's 401(k) Plan were converted into the right to receive $40 per share in cash under the terms of the Merger Agreement dated September 15, 2006, by and among Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation. In accordance with the Merger Agreement, the shares were converted into the right to receive $40 per share in cash to be allocated to other investments offered under Issuer's 401(k) Plan.
4. Consists of Reporting Person's holdings of Class B Common Stock which were converted into the right to receive $40 per share in cash or equity, as applicable, on the Transaction Date under the terms of the Merger Agreement dated September 15, 2006, by and among the Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation.
5. Reporting Person's holdings of Issuer's Class B Common Stock held in Issuer's 401(k) Plan were converted into the right to receive $40 per share in cash under the terms of the Merger Agreement dated September 15, 2006, by and among Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation. In accordance with the Merger Agreement, the shares were converted into the right to receive $40 per share in cash to be allocated to other investments offered under Issuer's 401(k) Plan.
6. Consists of Reporting Person's holdings of Issuer's Class B Common Stock held with Reporting Person's spouse which were converted into the right to receive $40 in cash or equity, as applicable, on the Transaction Date under the terms of the Merger Agreement dated September 15, 2006, by and among the Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation.
7. Only vested options can be exercised. The option vests over three years, with 33% vesting on the first two anniversaries of the grant date, and the remaining 34% vesting on the third anniversary of the grant date.
8. Reporting Person's options were accelerated under the terms of the Merger Agreement dated September 15, 2006, by and among Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation. This option to purchase Issuer common stock was granted under the Omnibus Incentive Plan of 2004. In accordance with the Merger Agreement, this option was cancelled and converted into the right to receive cash or equity, as applicable, in an amount equal to the excess (if any) of $40 per share over the exercise price per share of the option, multiplied by the number of shares subject to the option.
9. Only vested options can be exercised; 33 1/3% of the shares vested on May 6, 2005, 33 1/3% of the shares vested on May 6, 2006, and the remaining 33 1/3% of the shares vest on May 6, 2007.
10. Reporting Person's unvested options were accelerated under the terms of the Merger Agreement dated September 15, 2006, by and among Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation. This option to purchase Issuer common stock was granted under the Freescale Semiconductor, Inc. Conversion Plan of 2004. In accordance with the Merger Agreement, this option was cancelled and converted into the right to receive cash or equity, as applicable, in an amount equal to the excess (if any) of $40 per share over the exercise price per share of the option, multiplied by the number of shares subject to the option.
11. These options became fully vested on December 2, 2004.
12. These options became fully vested March 16, 2005.
13. These options became fully vested on May 7, 2006.
14. These options became fully vested on October 1, 2005.
15. Only vested options can be exercised. The options vest at the rate of 25% per year on each anniversary of the grant date so that the option is fully vested on the fourth anniversary of the grant date.
16. Reporting Person's options were accelerated under the terms of the Merger Agreement dated September 15, 2006, by and among Issuer, Firestone Holdings LLC and Firestone Acquisition Corporation. This option to purchase Issuer common stock was granted under the Freescale Semiconductor, Inc. Omnibus Incentive Plan of 2005. In accordance with the Merger Agreement, this option was cancelled and converted into the right to receive cash or equity, as applicable, in an amount equal to the excess (if any) of $40 per share over the exercise price per share of the option, multiplied by the number of shares subject to the option.
/s/ Alexander Pepe by Dathan Voelter under Power of Attorney 12/05/2006
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.