Document:

EX-10.3

 Exhibit 10.3 
 RESTRICTED STOCK AGREEMENT 
 This RESTRICTED STOCK AGREEMENT (this “Stock Agreement”), dated as of April 30, 2012 (the “Grant Date”), is between ZEBRA TECHNOLOGIES CORPORATION, a Delaware
corporation (the “Company”), and %%FIRST_NAME%-% %%LAST_NAME%-% (the “Participant”), relating to restricted stock granted under the Zebra Technologies Corporation 2011 Long-Term Incentive Plan (the “Plan”). Capitalized
terms used in this Stock Agreement without definition shall have the meanings ascribed to such terms in the Plan. 
 1. Grant of
Restricted Stock. 
  

	 	a.	Grant. Subject to the provisions of this Stock Agreement and pursuant to the provisions of the Plan, the Company hereby grants to the Participant as of
the Grant Date %%TOTAL_SHARES_GRANTED,’999,999,999’%-% shares (the “Target Shares”) of the Company’s Class A Common Stock, $.01 par value per share (the “Restricted Stock”). This Stock Agreement shall be null
and void unless the Participant accepts this Stock Agreement by either (i) electronically accepting this Stock Agreement through the Company’s electronic delivery and acceptance process operated by E*TRADE or (ii) executing this Stock
Agreement in the space provided below and returning it to the Company not later than May 30, 2012. 

  

	 	b.	Nontransferability. Except as otherwise permitted under the Plan or this Stock Agreement, the Restricted Stock granted hereunder shall be non-transferable
by the Participant during the Period of Restriction set forth under Section 2 of this Stock Agreement. 

 2. Vesting of
Restricted Stock. 
  

	 	a.	Period of Restriction and Performance Goal. 

  

	 	(i)	The Restricted Stock shall be forfeitable and non-transferable during the Period of Restriction. The “Period of Restriction” with respect to the Restricted
Stock shall begin on the Grant Date and shall end at the close of business on April 30, 2015 provided, however, that the Period of Restriction shall lapse on April 30, 2015 in accordance with Exhibit A. 

 

	 	(ii)	Except as otherwise provided for under this Stock Agreement, the Participant must remain employed continuously through April 30, 2015. 

 

	 	b.	Additional Vesting Rules. Notwithstanding Section 2(a) hereof, the Restricted Stock shall be subject to the following additional vesting rules in the
following circumstances: 

  

	 	(i)	 Death or Disability. In the event the Participant’s employment with the Company and its Subsidiaries is terminated prior to
December 31, 2014 due to death or Disability, a number of Shares equal to the Target Shares shall immediately become fully vested as of the effective date of the Participant’s

	 	
termination of employment and the remainder of the Period of Restriction relating to such Restricted Stock shall immediately lapse. In the event the Participant’s employment with the Company
and its Subsidiaries is terminated on or after December 31, 2014 and on or prior to April 30, 2015 due to death or Disability, the Period of Restriction shall lapse as of the effective date of the Participant’s termination of
employment in accordance with Exhibit A. 

  

	 	(ii)	Termination for Good Reason or by the Company or any Subsidiary other than for Cause. In the event the Participant’s employment with the Company and
its Subsidiaries is terminated by reason of the Participant’s resignation for Good Reason or by the Company and/or any Subsidiary other than for Cause, the Period of Restriction shall lapse on April 30, 2015 in accordance with Exhibit
A. For purposes of this Stock Agreement, “Good Reason” and “Cause” have the meanings set forth in the employment agreement, if any, between the Company and/or any Subsidiary and the Participant or, if the Participant is not a
party to such an agreement, “Good Reason” has the meaning set forth in the Plan and “Cause” has the meaning, as determined by the Company in its sole discretion, set forth in the Plan. 

 

	 	(iii)	Other Termination of Employment. In the event the Participant’s employment with the Company and its Subsidiaries is terminated on or prior to
April 30, 2015 for any reason other than as provided in Section 2(b)(i) or (ii) hereof, all Shares of Restricted Stock shall immediately be forfeited to the Company. 

3. Rights While Holding Restricted Stock. 
 a. Custody and Availability of Shares. The Company shall hold the shares of Restricted Stock subject to this Agreement in uncertificated, book-entry form registered in the Participant’s
name until the Restricted Stock shall have vested, in whole or in part, pursuant to Section 2. Subject to Section 4, if and to the extent shares of Restricted Stock become vested, the Company shall remove or cause the removal of the
restrictions on transfer of such shares arising from this Stock Agreement. Such unrestricted shares shall be made available to the Participant in uncertificated, book-entry form registered in the Participant’s name. 

b. Rights as a Stockholder. During the period that shares of Restricted Stock remain unvested, the Participant shall have
all of the rights of a stockholder of the Company with respect to the Restricted Stock including, but not limited to, the right to receive dividends paid on the shares of Restricted Stock and the full right to vote such shares. 

c. Section 83(b) Election. The Participant is not permitted to make a Section 83(b) election with respect to the
Restricted Stock. 

  
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 d. Compliance with Federal and State Law. The Company may postpone issuing and
delivering any Restricted Stock for so long as the Company reasonably determines to be necessary to satisfy the following: 
 (i) its completing or amending any securities registration or qualification of the Restricted Stock or it or the Participant satisfying any exemption from registration under any federal or state law, rule
or regulation; and 
 (ii) the Participant complying with any federal, state or local tax withholding
obligations. 
 4. Payment of Taxes. If the Company is obligated to withhold an amount on account of any tax imposed as a result
of the issuance of the Restricted Stock, the Participant shall be required to pay such amount to the Company, as provided under Section 9.10 of the Plan. The Participant acknowledges and agrees that the Participant is responsible for the tax
consequences associated with the grant of the Restricted Stock and its vesting. 
 5. Change in Control. Subject to
Section 9.8 of the Plan: 
 (a) Notwithstanding any provision in this Agreement, in the event of a Change in Control
pursuant to Section 2.5(c) or (d) of the Plan in connection with which (i) holders of Shares receive consideration consisting solely of shares of common stock that are registered under Section 12 of the Exchange Act (and
disregarding the payment of cash in lieu of fractional shares) and (ii) this Stock Agreement is assumed or provision is made for the continuation of this Stock Agreement, then subject to Section 4.3 of the Plan, a number of Shares equal to
the Target Shares shall become fully vested immediately after the Change in Control and the remainder of the Period of Restriction relating to such Restricted Stock shall immediately lapse and there shall be substituted for each Share of Restricted
Stock then subject to this Stock Agreement, the number and class of shares into which each outstanding Share shall be converted pursuant to such Change in Control. 
 (b) Notwithstanding any provision in this Agreement to the contrary, in the event of a Change in Control pursuant to Section 2.5(a) or (b) of the Plan, or in the event of a Change in Control
pursuant to Section 2.5(c) or (d) of the Plan as to which Section 5(a) above does not apply, this grant shall be surrendered to the Company by the Participant, and this grant shall immediately be canceled by the Company, and the
Participant shall receive, within 10 days following the effective date of the Change in Control, a cash payment from the Company in an amount equal to the number of Target Shares, multiplied by the greater of (i) the highest per Share price
offered to stockholders of the Company in any transaction whereby the Change in Control takes place or (ii) the Fair Market Value of a Share on the effective date of the Change in Control. 

6. Confidentiality, Non-Solicitation and Non-Compete. Participant agrees to, understands and acknowledges the following: 

a. Confidential Information. The Participant will be furnished, use or otherwise have access to certain Confidential
Information of the Company and/or a Subsidiary. For purposes of this Stock Agreement, “Confidential Information” means any and all financial, technical, commercial or other information concerning the business and affairs of the Company
and/or a Subsidiary that is confidential and proprietary to the Company and/or a Subsidiary, including without limitation, 

  
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 (i) information relating to the Company’s or Subsidiary’s past and
existing customers and vendors and development of prospective customers and vendors, including specific customer product requirements, pricing arrangements, payment terms, customer lists and other similar information; 

(ii) inventions, designs, methods, discoveries, works of authorship, creations, improvements or ideas developed or
otherwise produced, acquired or used by the Company and/or a Subsidiary; 
 (iii) the Company’s or
Subsidiary’s proprietary programs, processes or software, consisting of, but not limited to, computer programs in source or object code and all related documentation and training materials, including all upgrades, updates, improvements,
derivatives and modifications thereof and including programs and documentation in incomplete stages of design or research and development; 
 (iv) the subject matter of the Company’s or Subsidiary’s patents, design patents, copyrights, trade secrets, trademarks, service marks, trade names, trade dress, manuals, operating instructions,
training materials, and other industrial property, including such information in incomplete stages of design or research and development; and 
 (v) other confidential and proprietary information or documents relating to the Company’s or Subsidiary’s products, business and marketing plans and techniques, sales and distribution networks
and any other information or documents which the Company reasonably regards as being confidential. 
 The Company and its Subsidiaries devotes
significant financial, human and other resources to the development of its products, its customer base and the general goodwill associated with its business, and the Company and its Subsidiaries diligently maintains the secrecy and confidentiality
of their Confidential Information. Each and every component of the Confidential Information is sufficiently secret to derive economic value from its not being generally known to other persons. While employed by the Company and/or Subsidiary and
thereafter, the Participant will hold in the strictest confidence and not use in any manner which is detrimental to the Company or its Subsidiaries or disclose to any individual or entity any Confidential Information, except as may be required by
the Company or its Subsidiaries in connection with the Participant’s employment. 
 All Company Materials are and will be the sole property
of the Company and/or Subsidiary. The Participant agrees that during and after his or her employment by the Company and/or Subsidiary, the Participant will not remove any Company Materials from the business premises of the Company or a Subsidiary or
deliver any Company Materials to any person or entity outside the Company or a Subsidiary, except as the Participant is required to do so in connection with performing the duties of his or her employment. The Participant further agrees that,
immediately upon the termination of his or her employment for any reason, or during the Participant’s employment if so requested by the Company, the Participant will return all Company Materials and other physical property, and any reproduction
thereof, excepting only the Participant’s copy of this Agreement. For purposes of this Stock Agreement, “Company 

  
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Materials” means documents or other media or tangible items that contain or embody Confidential Information or any other information concerning the business, operations or future/strategic
plans of the Company and/or any Subsidiary, whether such documents have been prepared by the Participant or by others. 
 b.
Non-Solicitation and Non-Compete. Notwithstanding any provision of this Stock Agreement, if at any time prior to the date that is one year after the date of vesting of all or any portion of the Restricted Stock, the Participant directly
or indirectly: 
 (i) breaches or violates Section 6(a) of this Stock Agreement; or 

(ii) employs, recruits or solicits for employment any person who is (or was within six (6) months prior to the
Participant’s employment termination date) an employee of the Company and/or any Subsidiary; or 
 (iii)
accepts employment or engages in a competing business which may require contact, solicitation, interference or diverting of any of the Company’s or any Subsidiary’s customers, or that may result in the disclosure, divulging, or other use,
of Confidential Information or Company Materials acquired during the Participant’s employment with the Company or any Subsidiary; or 
 (iv) solicits or encourages any customer, vendor or potential customer or vendor of the Company with whom the Participant had contact while employed by the Company to terminate or otherwise alter his, her
or its relationship with the Company or any Subsidiary. The Participant understands that any person or entity that Participant contacted during the twelve (12) months prior to the date of the Participant’s termination of employment for the
purpose of soliciting sales from such person or entity shall be regarded as a “potential customer” of the Company to whom the Company or a Subsidiary has a protectable proprietary interest; 

the unvested Restricted Stock shall be forfeited automatically on the date the Participant engages in such activity and the Participant shall pay the
Company, within five business days of receipt by the Participant of a written demand therefor, an amount in cash determined by multiplying the number of Shares of Restricted Stock subject to this Stock Agreement which vested within the one-year
period described above by the Fair Market Value of a Share, determined as of the date of vesting 
 c. Remedies for
Violation. 
 (i) Injunctive Action. Participant acknowledges that if he or she violates
the terms of this Section 6 the injury that would be suffered by the Company and/or a Subsidiary as a result of a breach of the provisions of this Stock Agreement (including any provision of Section 6(a) or (b) hereof) would be
irreparable and that an award of monetary damages to the Company and/or a Subsidiary for such a breach would be an inadequate remedy. Consequently, the Company and/or a Subsidiary will have the right, in addition to any other rights it may have, to
obtain injunctive relief to restrain any breach or threatened breach or otherwise to specifically enforce any provision of this Stock Agreement, and the Company and/or a Subsidiary will not be obligated to

  
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post bond or other security in seeking such relief. Without limiting the Company’s or a Subsidiary’s rights under this Section 6 or any other remedies of the Company or Subsidiary,
if the Participant breaches any of the provisions of Section 6(a) or (b) hereof, the Company will have the right to cancel this Stock Agreement. 
 (ii) Attorneys’ Fees; Set-off Right. In addition to the rights available to the Company and its Subsidiaries under Section 6(c)(i) hereof, if the Participant violates the terms of
this Section 6 at any time, the Company shall be entitled to reimbursement from the Participant of any fees and expenses (including attorneys’ fees) incurred by or on behalf of the Company or any Subsidiary in enforcing the Company’s
or a Subsidiary’s rights under this Section 6. By accepting this Restricted Stock grant, the Participant hereby consents to a deduction from any amounts the Company or any Subsidiary owes to the Participant from time to time (including
amounts owed to the Participant as wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed to the Participant by the Company or any Subsidiary), unless such amount is subject to Section 409A of the Code,
to the extent of any amounts that the Participant owes to the Company under this Section 6. In addition to any injunctive relief sought under Section 6(c)(i) hereof and whether or not the Company or any Subsidiary elects to make any
set-off in whole or in part, if the Company or any Subsidiary does not recover by means of set-off the full amount the Participant owes to the Company or any Subsidiary, calculated as set forth in this Section 6(c)(ii), the Participant agrees
to immediately pay the unpaid balance to the Company or any Subsidiary. 
 d. Enforceability of Restrictive Covenants.
The scope and duration of the restrictive covenants contained in this Stock Agreement are reasonable and necessary to protect a legitimate, protectable interest of the Company and its Subsidiaries. 

e. Written Acknowledgement by Participant. The Committee, in its sole discretion, may require the Participant, as a
condition to lapsing any restriction on the Restricted Stock, to acknowledge in writing that the Participant has not engaged, and is not in the process of engaging, in any of the activities described in this Section 6. 

7. Miscellaneous Provisions. 
 a. No Service or Employment Rights. No provision of this Stock Agreement or of the Restricted Stock granted hereunder shall give the Participant any right to continue in the service or
employ of the Company or any Subsidiary, create any inference as to the length of employment or service of the Participant, affect the right of the Company or any Subsidiary to terminate the employment or service of the Participant, with or without
Cause, or give the Participant any right to participate in any employee welfare or benefit plan or other program (other than the Plan) of the Company or any Subsidiary. 
 b. Plan Document Governs. The Restricted Stock is granted pursuant to the Plan, and the Restricted Stock and this Stock Agreement are in all respects governed by the Plan and subject to all
of the terms and provisions thereof, whether such terms and provisions are incorporated in this Stock Agreement by reference or are expressly cited. Any inconsistency between the Stock Agreement and the Plan shall be resolved in favor of the Plan.
Participant hereby acknowledges receipt of a copy of the Plan. 

  
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 c. Beneficiary Designation. The Participant may, from time to time, in
accordance with procedures set forth by the Committee, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Stock Agreement is to be paid in case of his or her death before he or she
receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Committee
during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate or exercised by the Participant’s estate. 

d. Administration. This Stock Agreement and the rights of the Participant hereunder are subject to all the terms and
conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer,
construe, and make all determinations necessary or appropriate to the administration of the Plan and this Stock Agreement, all of which shall be binding upon the Participant. 
 e. No Vested Right In Future Awards. Participant acknowledges and agrees (by executing this Stock Agreement) that the granting of Restricted Stock under this Stock Agreement is made on a
fully discretionary basis by the Company and that this Stock Agreement does not lead to a vested right to further restricted stock or other awards in the future. 
 f. Use Of Personal Data. By executing this Stock Agreement, Participant acknowledges and agrees to the collection, use, processing and transfer of certain personal data, including his or her
name, salary, nationality, job title, position and details of all past Awards and current Awards outstanding under the Plan (“Data”), for the purpose of managing and administering the Plan. The Participant is not obliged to consent to such
collection, use, processing and transfer of personal data, but a refusal to provide such consent may affect his or her ability to participate in the Plan. The Company, or its Subsidiaries, may transfer Data among themselves or to third parties as
necessary for the purpose of implementation, administration and management of the Plan. These various recipients of Data may be located elsewhere throughout the world. The Participant authorizes these various recipients of Data to receive, possess,
use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Plan. The Participant may, at any time, review Data with respect to the Participant and require any necessary amendments
to such Data. The Participant may withdraw his or her consent to use Data herein by notifying the Company in writing; however, the Participant understands that by withdrawing his or her consent to use Data, the Participant may affect his or her
ability to participate in the Plan. 
 g. Severability. If one or more provisions of this Stock Agreement
(including, without limitations, the provisions of Section 6 hereof) are held to be unenforceable under applicable law to any extent, such provision(s) shall, to that extent, be excluded from this Stock Agreement and the balance of the Stock
Agreement shall be interpreted as if such provision(s) were so excluded to that extent and shall be enforceable in accordance with its terms. 

  
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 h. Waiver; Cumulative Rights. The failure or delay of either party to require
performance by the other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be
exercised in part or in whole from time to time. 
 i. Notices. Any notice which either party hereto may be
required or permitted to give the other shall be in writing and may be delivered personally or by mail, postage prepaid, addressed to the Secretary of the Company, at its then corporate headquarters, and the Participant at the Participant’s
address (including any electronic mail address) as shown on the Company’s records, or to such other address as the Participant, by notice to the Company, may designate in writing from time to time. The Participant hereby consents to electronic
delivery of any notices that may be made hereunder. 
 j. Counterparts. This Stock Agreement may be signed in two
counterparts, each of which shall be an original, but both of which shall constitute but one and the same instrument. 
 k.
Successors and Assigns. This Stock Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company. All obligations imposed upon the Participant, and all rights granted to the Company hereunder, shall
be binding upon the Participant’s heirs, legal representatives and successors. 
 l. Governing Law. This
Stock Agreement and the Restricted Stock granted hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without giving effect to provisions thereof regarding conflict of laws. 

m. Entire Agreement. This Stock Agreement, together with the Plan, constitute the entire obligation of the parties hereto
with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction. 
 n. Amendment. Any amendment to this Stock Agreement shall be in writing and signed by an executive officer of the Company or the Director of Compensation and Benefits. 

o. Headings and Construction. The headings contained in this Stock Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Stock Agreement. This Stock Agreement is intended to be a stock right excluded from the requirements of Code Section 409A. The terms of this Stock Agreement shall be administered and construed in a
manner consistent with the intent that it be a stock right excluded from the requirements of Code Section 409A. 

  
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 IN WITNESS WHEREOF, the Company has caused this Stock Agreement to be duly executed
by an officer thereunto duly authorized, and the Participant has hereunto set his or her hand, all as of the day and year first above written. 
  

					
	ZEBRA TECHNOLOGIES CORPORATION
		
	By:	 	/s/ Anders Gustafsson
	Name:	 	Anders Gustafsson
	Title:	 	Chief Executive Officer

  
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 Exhibit A 

 

	1.	Total Net Sales Performance Goal (Step 1). 

  

																	
	 	  	Below Threshold	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 Compounded Annual Growth Rate of Total Net Sales
	  	 	< 5.00	% 	 	 	5.00	% 	 	 	7.50	% 	 	 	10.00	% 
	 Vested Percentage of Restricted Stock
	  	 	0	% 	 	 	50.00	% 	 	 	100.00	% 	 	 	150.00	% 

 Compounded Annual Growth Rate of Total Net Sales (“CAGR”) equals (A) the quotient obtained by dividing
2014 total net sales of the Company by 2011 total net sales of the Company, (B) raised to the one-third power, minus (C) one. CAGR shall be rounded to the nearest one-hundredth of one percent. For a CAGR between 5.00% and 10.00%,
the Vested Percentage of Restricted Stock shall be interpolated on a straight line basis and rounded to the nearest one-hundredth of one percent. 
 Annual Net Sales Performance Goal: The Participant is eligible for banking of a specified number of shares on an annual basis based upon an implied annual growth rate. Unless the Committee or the Board
otherwise determines in its sole discretion, the implied annual growth target will be the same as the three-year CAGR target of 7.5%. If, as of December 31 of each calendar year commencing December 31, 2012, the implied annual target is
achieved, 1/3 of the number of Target Shares (rounded to the nearest whole Share) shall be banked for further calculations in steps 1 and 2. If the implied annual target for such year is not achieved, then no Shares shall be banked for such year. No
interpolation or pro-ration is applied to the number of Shares if the implied annual target is not achieved and, if the implied annual target is exceeded, no additional Target Shares in respect of such year shall be banked. The sum of the banked
shares in respect of each calendar year, if any, shall be the “Minimum Initial Vested Shares”. 
 As of December 31, 2014, the
greater of either (1) the Minimum Initial Vested Shares or (2) the number of Shares determined under this step 1 pursuant to the first paragraph in this Exhibit A shall be the initial number of Shares of Restricted Stock, if any, that vest
and shall be rounded to the nearest whole Share (the “Initial Vested Shares”). The Vested Percentage of Restricted Stock, as so determined, shall be multiplied by the number of Target Shares to determine the number of Shares under this
step 1. 
 Unless the Committee or the Board otherwise determines in its sole discretion, for purposes of calculating the CAGR and ROIC (as
defined below and including the determination of Annual Fiscal ROIC and NOPAT), (A) net sales and ROIC of the Company derived from acquisitions shall be included and (B) divestitures of subsidiaries or businesses of the Company shall not
affect the determination of total net sales or ROIC of the Company. 

  
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	2.	Return on Invested Capital Modifier (Step 2). If the number of Initial Vested Shares exceeds zero, then the number of “Vested Shares” shall
equal the product of the Initial Vested Shares multiplied by the Modifier set forth in the following table (rounded to the nearest whole share): 

  

																	
	 ROIC
	  	< 13.00%	 	  	13.00% to
< 18.00%	 	  	18.00% to
< 22.00	 	  	Equal to or
greater than
22.00%	 
	 Modifier
	  	 	0.6	  	  	 	0.8	  	  	 	1.0	  	  	 	1.2	  

 ROIC equals the average of the Annual Fiscal ROIC for 2012, 2013, and 2014. Annual Fiscal ROIC is defined as net
operating profit after tax (“NOPAT”) for the fiscal period divided by Invested Capital where (1) NOPAT equals Operating Income of the Company for the fiscal period multiplied by (1-budgeted tax rate for the fiscal period ) and
(2) Invested Capital equals total assets, less cash and cash equivalents, current and long-term investments and marketable securities, and non-interest-bearing current liabilities, and which is calculated as the average Invested Capital
reflected on five balance sheet dates (the ending balance for the prior fiscal year and the ending balance for all four fiscal quarters). “Operating Income” means the consolidated operating income of the Company for the fiscal year,
adjusted to remove non-recurring charges and for acquisitions as described in this subsection. 
 Unless the Committee or the Board otherwise
determines in its sole discretion, non-recurring charges specifically include such expense items as (i) one-time charges, non-operating charges or expenses incurred that are not under the control of operations management, as ratified by the
Committee or the Board; (ii) restructuring expenses; (iii) exit expenses; (iv) integration expenses; (v) Board of Directors project activities (e.g.: director searches); or (vi) gains or losses on the sale of assets;
(vii) acquired in-process technology or (viii) impairment charges. This list is not exhaustive and is meant to represent examples of the kind of expenses typically excluded from the calculations of income from operations. Unless the
Committee or the Board otherwise determines in its sole discretion, an acquisition shall be included beginning with the first quarter beginning at least six months after the acquisition closes. 

Changes in accounting principles shall be consistently applied. 

  
 11EX-10.4

 Exhibit 10.4 
 STOCK APPRECIATION RIGHTS AGREEMENT 
 This STOCK APPRECIATION RIGHTS AGREEMENT (this “SAR Agreement”), dated as of April 30, 2012 (the “Grant Date”), is between ZEBRA TECHNOLOGIES CORPORATION, a Delaware
corporation (the “Company”), and Anders Gustafsson (the “Participant”), relating to a stock appreciation right granted under the Zebra Technologies Corporation 2011 Long-Term Incentive Plan (the “Plan”). Capitalized
terms used in this SAR Agreement without definitions shall have the meanings ascribed to such terms in the Plan. 
  

	1.	Grant of Stock Appreciation Right. 

  

	 	(a)	Grant. Subject to the provisions of this SAR Agreement and pursuant to the provisions of the Plan, the Company hereby grants to the Participant as of the
Grant Date a stock appreciation right (the “SAR”) covering %%TOTAL_SHARES_GRANTED,’999,999,999’%-% shares (the “SAR Shares”) of the Company’s Class A Common Stock, $0.01 par value per share (the
“Stock”), at a price of %%OPTION_PRICE,’$999,999,999.99’%- per share (the “SAR Price”). The SAR is not issued in tandem with an Option. This SAR Agreement shall be null and void unless the Participant accepts this SAR
Agreement by either (i) electronically accepting this SAR Agreement through the Company’s electronic delivery and acceptance process operated by e*Trade or (ii) executing this SAR Agreement in the space provided below and returning it
to the Company not later than May 30, 2012. 

  

	 	(b)	 Term of the SAR. Unless the SAR terminates earlier pursuant to other provisions of the SAR Agreement, the SAR shall expire on the tenth
(10th) anniversary of the Grant Date (the
“Expiration Date”). 

  

	 	(c)	Nontransferability. The SAR shall be nontransferable, except by will or the laws of descent and distribution, or as otherwise permitted under the Plan.

  

	2.	Vesting of the SAR. 

  

	 	(a)	General Vesting Rule. Prior to the Expiration Date, the SAR shall become and be exercisable as follows: 

 

					
	 Vesting Date Anniversary
	  	Percentage of SAR Exercisable	 
	 Prior to the first anniversary

of the Grant Date
	  	 	0	% 
	 On or after the first anniversary

of the Grant Date
	  	 	25	% 
	 On or after the second anniversary

of the Grant Date, an additional
	  	 	25	% 
	 On or after the third anniversary

of the Grant Date, an additional
	  	 	25	% 
	 On or after the fourth anniversary

of the Grant Date, an additional
	  	 	25	% 

  
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 provided, however, except as otherwise provided for under this SAR Agreement, the
Participant must remain employed by the Company or any Subsidiary continuously through the applicable vesting dates.  
  

	 	(b)	Additional Vesting Rules. Notwithstanding Section 2(a) hereof, the SAR shall be subject to the following additional vesting rules in the following
circumstances: 

  

	 	(i)	Death, Disability, Good Reason or Termination by the Company or any Subsidiary other than for Cause. Notwithstanding the Employment Agreement between the
Company and the Participant effective as of September 4, 2007, as amended (the “Employment Agreement”), and unless otherwise determined by the Board of Directors of the Company or the Compensation Committee of the Board of Directors,
in the event the Participant’s employment with the Company is terminated due to the Participant’s death or Disability, or by reason of the Participant’s resignation for Good Reason, or by the Company other than for Cause, the number
of SAR Shares that shall be vested as of the date of the Participant’s termination of employment shall equal the number obtained by (A) multiplying [insert total number of SARs] by a fraction, the numerator of which is the number of days
from but excluding the Grant Date and to and including the date of the Participant’s termination of employment, and the denominator of which is 1461 and (B) subtracting from such product the number, if any, of SAR Shares that vested prior
to the date of the Participant’s termination of employment in accordance with Section 2(a). Any unexercised vested portion of the SAR shall remain exercisable until the earlier of: 

 

	 	(A)	the Expiration Date; or 

  

	 	(B)	one (1) year after the date of the Participant’s termination of employment due to the Participant’s death or Disability; or 

 

	 	(C)	ninety (90) days after the date of the Participant’s termination of employment by reason of the Participant’s resignation for Good Reason, or by the
Company other than for Cause. 

 For purposes of this SAR Agreement, “Good Reason” and “Cause”
have the meanings assigned to them in the Participant’s Employment Agreement. In the event of the Participant’s death, the Participant’s beneficiary or estate may exercise the vested SAR. 

 

	 	(ii)	Retirement. In the event the Participant’s employment with the Company is terminated due to Retirement, any unexercised vested portion of the SAR as
of the date of the Participant’s termination of employment shall remain exercisable until the earlier of: 

  

	 	(A)	the Expiration Date; or 

  

	 	(B)	one (1) year after the date of the Participant’s termination of employment due to Retirement. 

  
 2 

 For purposes of this SAR Agreement, “Retirement” means the Participant’s
voluntary termination of employment with the Company after attaining either: 
  

	 	•	 	 age fifty-five (55) with ten (10) or more complete years of service with the Company and/or any Subsidiary; or 

 

	 	•	 	 age sixty-five (65). 

  

	 	(iii)	Termination for Cause. In the event the Participant’s employment with the Company is terminated for Cause, any unexercised SAR, whether vested or
not, shall expire immediately, be forfeited, and be considered null and void. 

  

	 	(iv)	Other Termination of Employment. In the event the Participant’s employment with the Company is terminated for any reason other than as provided in
Section 2(b)(i), (ii) or (iii) hereof, the unexercised vested portion of the SAR as of the date of the Participant’s termination of employment shall remain exercisable until the earliest of: 

 

	 	(A)	the Expiration Date; or 

  

	 	(B)	thirty (30) days after the date of the Participant’s termination of employment. 

 

	3.	Exercise of SAR. 

(a) Notice of Exercise. Prior to the Expiration Date, the vested portion of the SAR may be exercised, in whole or in part,
by delivering written notice to the Company in accordance with Section 7(j) hereof and in such form as the Company may require from time to time. Such notice of exercise shall specify the number of SAR Shares to be exercised. 

(b) Payment. As of the date of exercise of the SAR, the Company shall settle the exercised portion of the SAR as provided
in Section 6.6 of the Plan. The amount of the payment for each SAR Share exercised shall equal (i) the Fair Market Value of a share of Stock on the date of exercise, less (ii) the SAR Price for each such exercised SAR Share. The
exercised SAR shall be settled in whole shares of Stock, and cash for the value of a fractional share of Stock. 
 (c)
Payment of Taxes. If the Company is obligated to withhold an amount on account of any tax imposed as a result of the exercise of the SAR, the Participant shall be required to pay such amount to the Company, as provided in
Section 9.10 of the Plan. Alternatively, subject to Company approval, the Participant may elect to withhold a portion of the SAR exercise payment equal to the minimum statutory tax that would be imposed on the exercise, as provided under
Section 9.10 of the Plan. The Participant acknowledges and agrees that the Participant is responsible for the tax consequences associated with the grant of the SAR and its exercise. 

(d) Death Prior to Exercise. In the event of the Participant’s death prior to the exercise of any vested portion of
the SAR, the Participant’s beneficiary or estate may exercise the vested SAR. 

  
 3 

	4.	Compliance with Federal and State Law. The Company reserves the right to delay the Participant’s exercise of any portion of the SAR if (a) the
Company’s issuance of Stock upon such exercise would violate any applicable federal or state securities laws or any other applicable laws or regulations, or (b) the Company reasonably determines that payment of such SAR portion would not
be deductible under Code Section 162(m). The Participant may not sell or otherwise dispose of any portion of the SAR in violation of any applicable law. The Company may postpone issuing and delivering any Stock in payment for the exercise of
such portion of the SAR for so long as the Company reasonably determines to be necessary to satisfy the following: 

  

	 	(i)	its completing or amending any securities registration or qualification of the Stock or it or the Participant satisfying any exemption from registration under any
federal or state law, rule, or regulation; 

  

	 	(ii)	its receiving proof it considers satisfactory that a person seeking to exercise the SAR after the Participant’s death is entitled to do so; and

  

	 	(iii)	the Participant complying with any federal, state, or local tax withholding obligations. 

 

	5.	Change in Control. Subject to Section 9.8 of the Plan: 

 (a) Notwithstanding any provision in this Agreement, in the event of a Change in Control pursuant to Section 2.5(c) or (d) of the Plan in connection with which (i) holders of Shares receive
consideration consisting solely of shares of common stock that are registered under Section 12 of the Exchange Act (and disregarding the payment of cash in lieu of fractional shares) and (ii) this SAR Agreement is assumed or provision is
made for the continuation of this SAR Agreement, then subject to Section 4.3 of the Plan, this SAR Agreement shall continue in accordance with its terms, and there shall be substituted for each SAR Share then subject to this SAR Agreement, the
number and class of shares into which each outstanding Share shall be converted pursuant to such Change in Control. In the event of any such substitution, the SAR Price shall be appropriately adjusted by the Board or Committee (whose determination
shall be final, binding and conclusive), such adjustments to be made without an increase in the aggregate SAR Price. 
 (b)
Notwithstanding any provision in this Agreement to the contrary, in the event of a Change in Control pursuant to Section 2.5(a) or (b) of the Plan, or in the event of a Change in Control pursuant to Section 2.5(c) or (d) of the
Plan as to which Section 5(a) above does not apply, this grant shall be surrendered to the Company by the Participant, and this grant shall immediately be canceled by the Company, and the Participant shall receive, within 10 days following the
effective date of the Change in Control, a cash payment from the Company in an amount equal to the number of SAR Shares then subject to this SAR, multiplied by the excess, if any, of the greater of (i) the highest per Share price offered to
stockholders of the Company in any transaction whereby the Change in Control takes place or (ii) the Fair Market Value of a Share on the effective date of the Change in Control, over the SAR Price. 

  
 4 

	6.	Confidentiality, Non-Solicitation and Non-Compete. The Participant agrees to, understands, and acknowledges the following: 

 

	 	(a)	Confidential Information. The Participant will be furnished, use or otherwise have access to certain Confidential Information of the Company and/or a
Subsidiary. For purposes of this SAR Agreement, “Confidential Information” means any and all financial, technical, commercial or other information concerning the business and affairs of the Company and/or a Subsidiary that is confidential
and proprietary to the Company and/or a Subsidiary, including without limitation: 

  

	 	(i)	information relating to the Company’s or Subsidiary’s past and existing customers and vendors and development of prospective customers and vendors, including
specific customer product requirements, pricing arrangements, payment terms, customer lists and other similar information; 

  

	 	(ii)	inventions, designs, methods, discoveries, works of authorship, creations, improvements or ideas developed or otherwise produced, acquired or used by the Company and/or
a Subsidiary; 

  

	 	(iii)	the Company’s or Subsidiary’s proprietary programs, processes or software, consisting of, but not limited, to computer programs in source or object code and
all related documentation and training materials, including all upgrades, updates, improvements, derivatives and modifications thereof and including programs and documentation in incomplete stages of design or research and development;

  

	 	(iv)	the subject matter of the Company’s or Subsidiary’s patents, design patents, copyrights, trade secrets, trademarks, service marks, trade names, trade dress,
manuals, operating instructions, training materials, and other industrial property, including such information in incomplete stages of design or research and development; and 

 

	 	(v)	other confidential and proprietary information or documents relating to the Company’s or Subsidiary’s products, business and marketing plans and techniques,
sales and distribution networks and any other information or documents that the Company and/or a Subsidiary reasonably regards as being confidential. 

 The Company and its Subsidiaries devote significant financial, human and other resources to the development of their products, customer base and the general goodwill associated with their business, and
the Company and its Subsidiaries diligently maintain the secrecy and confidentiality of their Confidential Information. Each and every component of the Confidential Information is sufficiently secret to derive economic value from its not being
generally known to other persons. While employed by the Company and/or Subsidiary and thereafter, the Participant will hold in the strictest confidence and not use in any manner which is detrimental to the Company or its Subsidiaries or disclose to
any individual or entity any Confidential Information, except as may be required by the Company or its Subsidiaries in connection with the Participant’s employment. 

  
 5 

 All Company Materials are and will be the sole property of the Company and/or Subsidiary.
The Participant agrees that during and after his or her employment by the Company and/or Subsidiary, the Participant will not remove any Company Materials from the business premises of the Company or a Subsidiary or deliver any Company Materials to
any person or entity outside the Company or a Subsidiary, except as the Participant is required to do so in connection with performing the duties of his or her employment. The Participant further agrees that, immediately upon the termination of his
or her employment for any reason, or during the Participant’s employment if so requested by the Company, the Participant will return all Company Materials and other physical property, and any reproduction thereof, excepting only the
Participant’s copy of this Agreement. For purposes of this SAR Agreement, “Company Materials” means documents or other media or tangible items that contain or embody Confidential Information or any other information concerning the
business, operations or future/strategic plans of the Company and/or any Subsidiary, whether such documents have been prepared by the Participant or by others. 
  

	 	(b)	Non-Solicitation and Non-Compete. Notwithstanding any provision of this SAR Agreement, if at any time prior to the date that is one year after the date of
exercise of all or any portion of the SAR, the Participant directly or indirectly: 

  

	 	(i)	breaches or violates Section 6(a) of this SAR Agreement; or 

  

	 	(ii)	employs, recruits or solicits for employment any person who is (or was within the six (6) months prior to the Participant’s employment termination date) an
employee of the Company and/or any Subsidiary; or 

  

	 	(iii)	accepts employment or engages in a competing business that may require contact, solicitation, interference or diverting of any of the Company’s or any
Subsidiary’s customers, or that may result in the disclosure, divulging, or other use of Confidential Information or Company Materials acquired during the Participant’s employment with the Company or any Subsidiary; or

  

	 	(iv)	solicits or encourages any customer, vendor or potential customer or vendor of the Company or any Subsidiary with whom the Participant had contact while employed by the
Company or any Subsidiary to terminate or otherwise alter his, her or its relationship with the Company or any Subsidiary. The Participant understands that any person or entity that the Participant contacted during the twelve (12) months prior
to the date of the Participant’s termination of employment for the purpose of soliciting sales from such person or entity shall be regarded as a “potential customer” of the Company to whom the Company or a Subsidiary has a protectable
proprietary interest; 

 the SAR shall terminate automatically on the date the Participant engages in such activity
and the Participant shall pay the Company, within five business days of receipt by the Participant of a written demand therefor, an amount in cash determined by multiplying the number of Shares as to which the SAR was exercised within the one-year
period described above by the difference between (i) the Fair Market Value of a Share on the date of such exercise and (ii) the SAR Price per SAR (without reduction for any Shares withheld by the Company pursuant to Section 3(c)).

  
 6 

	 	(c)	Remedies for Violation. 

  

	 	(i)	Injunctive Action. The Participant acknowledges that if he or she violates the terms of this Section 6, the injury that would be suffered by the
Company and/or a Subsidiary as a result of a breach of the provisions of this SAR Agreement (including any provision of Section 6(a) or (b) hereof) would be irreparable and that an award of monetary damages to the Company and/or a
Subsidiary for such a breach would be an inadequate remedy. Consequently, the Company and/or a Subsidiary will have the right, in addition to any other rights it may have, to obtain injunctive relief to restrain any breach or threatened breach or
otherwise to specifically enforce any provision of this SAR Agreement, and the Company and/or Subsidiary will not be obligated to post bond or other security in seeking such relief. Without limiting the Company’s or Subsidiary’s rights
under this Section 6 or any other remedies of the Company or a Subsidiary, if the Participant breaches any of the provisions of Section 6(a) or (b) hereof, the Company will have the right to cancel this SAR Agreement.

  

	 	(ii)	Attorneys’ Fees; Set-off Right. In addition to the rights available to the Company and its Subsidiaries under Section 6(c)(i) hereof, if the
Participant violates the terms of this Section 6 at any time, the Company shall be entitled to reimbursement from the Participant of any fees and expenses (including attorneys’ fees) incurred by or on behalf of the Company or any
Subsidiary in enforcing the Company’s or a Subsidiary’s rights under this Section 6. By accepting this SAR grant, the Participant hereby consents to a deduction from any amounts the Company or any Subsidiary owes to the Participant
from time to time (including amounts owed to the Participant as wages or other compensation, fringe benefits, or vacation pay, as well as any other amounts owed to the Participant by the Company or any Subsidiary), unless such amount is subject to
Section 409A of the Code, to the extent of any amounts that the Participant owes the Company under this Section 6. In addition to any injunctive relief sought under Section 6(c)(i) hereof and whether or not the Company or any
Subsidiary elects to make any set-off in whole or in part, if the Company or any Subsidiary does not recover by means of set-off the full amount the Participant owes to the Company or any Subsidiary, calculated as set forth in this
Section 6(c)(ii), the Participant agrees to immediately pay the unpaid balance to the Company or any Subsidiary. 

  

	 	(d)	Enforceability of Restrictive Covenants. The scope and duration of the restrictive covenants contained in this SAR Agreement are reasonable and necessary
to protect a legitimate, protectable interest of the Company and its Subsidiaries. 

  
 7 

	 	(e)	Written Acknowledgement by the Participant. The Committee, in its sole discretion, may require the Participant, as a condition to the exercise of this
SAR, to acknowledge in writing that he or she has not engaged, and is not in the process of engaging, in any of the activities described in this Section 6. 

 

	7.	Miscellaneous Provisions. 

  

	 	(a)	No Service or Employment Rights. No provision of this SAR Agreement or of the SAR granted hereunder shall give the Participant any right to continue in
the service or employ of the Company or any Subsidiary, create any inference as to the length of employment or service of the Participant, affect the right of the Company or any Subsidiary to terminate the employment or service of the Participant,
with or without Cause, or give the Participant any right to participate in any employee welfare or benefit plan or other program (other than the Plan) of the Company or any Subsidiary. 

 

	 	(b)	Stockholder Rights. Until the SAR shall have been duly exercised into Stock and such Stock has been officially recorded as issued on the Company’s
official stockholder records, no person or entity shall be entitled to vote, receive dividends or be deemed for any purpose the holder of such Stock, and adjustments for dividends or otherwise shall be made only if the record date thereof is
subsequent to the date such shares are recorded and after the date of exercise and without duplication of any adjustment. 

  

	 	(c)	Plan Document Governs. The SAR is granted pursuant to the Plan, and the SAR and this SAR Agreement are in all respects governed by the Plan and subject to
all of the terms and provisions thereof, whether such terms and provisions are incorporated in this SAR Agreement by reference or are expressly cited. Any inconsistency between the SAR Agreement and the Plan shall be resolved in favor of the Plan.
The Participant hereby acknowledges receipt of a copy of the Plan. 

  

	 	(d)	Beneficiary Designation. The Participant may, from time to time, in accordance with procedures set forth by the Committee, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this SAR Agreement is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior
designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Committee during the Participant’s lifetime. In the absence of any such designation,
benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate or exercised by the Participant’s estate. 

  

	 	(e)	Administration. This SAR Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be
amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary
or appropriate to the administration of the Plan and this SAR Agreement, all of which shall be binding upon the Participant.  

  
 8 

	 	(f)	No Vested Right in Future Awards. The Participant acknowledges and agrees (by executing this SAR Agreement) that the granting of the SAR under this SAR
Agreement is made on a fully discretionary basis by the Company and that this SAR Agreement does not lead to a vested right to further SAR or other awards in the future. 

 

	 	(g)	Use of Personal Data. By executing this SAR Agreement, the Participant acknowledges and agrees to the collection, use, processing and transfer of certain
personal data, including his or her name, salary, nationality, job title, position, and details of all past Awards and current Awards outstanding under the Plan (“Data”), for the purpose of managing and administering the Plan. The
Participant is not obliged to consent to such collection, use, processing and transfer of personal data, but a refusal to provide such consent may affect his or her ability to participate in the Plan. The Company or its Subsidiaries may transfer
Data among themselves or to third parties as necessary for the purpose of implementation, administration and management of the Plan. These various recipients of Data may be located elsewhere throughout the world. The Participant authorizes these
various recipients of Data to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Plan. The Participant may, at any time, review Data with respect to the
Participant and require any necessary amendments to such Data. The Participant may withdraw his or her consent to use Data herein by notifying the Company in writing; however, the Participant understands that by withdrawing his or her consent to use
Data, the Participant may affect his or her ability to participate in the Plan. 

  

	 	(h)	Severability. In the event that any provision of this SAR Agreement (including, without limitations, the provisions of Section 6 hereof) are held to
be unenforceable under applicable law to any extent, such provision(s) shall, to that extent, be excluded from this SAR Agreement and the balance of the SAR Agreement shall be interpreted as if such provision(s) were so excluded to that extent and
shall be enforceable in accordance with its terms. 

  

	 	(i)	Waiver; Cumulative Rights. The failure or delay of either party to require performance by the other party of any provision hereof shall not affect its
right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time. 

 

	 	(j)	Notices. Any notice which either party hereto may be required or permitted to give the other shall be in writing and may be delivered personally or by
mail, postage prepaid, addressed to the Secretary of the Company, at its then corporate headquarters, and the Participant at the Participant’s address (including any electronic mail address) as shown on the Company’s records, or to such
other address as the Participant, by notice to the Company, may designate in writing from time to time. The Participant hereby consents to electronic delivery of any notices that may be made hereunder. 

 

	 	(k)	Counterparts. This SAR Agreement may be signed in counterparts, each of which shall be an original, but both of which shall constitute but one and the
same instrument. 

  
 9 

	 	(l)	Successors and Assigns. This SAR Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company. All obligations
imposed upon the Participant, and all rights granted to the Company hereunder, shall be binding upon the Participant’s heirs, legal representatives and successors. 

 

	 	(m)	Governing Law. This SAR Agreement and the SAR granted hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State
of Delaware, without giving effect to provisions thereof regarding conflict of laws. 

  

	 	(n)	Entire Agreement. This SAR Agreement, together with the Plan, constitutes the entire obligation of the parties hereto with respect to the subject matter
hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction. 

  

	 	(o)	Amendment. Any amendment to this SAR Agreement shall be in writing and signed by an executive officer of the Company or the Director of Compensation and
Benefits. 

  

	 	(p)	Headings. The headings contained in this SAR Agreement are for reference purposes only and shall not affect the meaning or interpretation of this SAR
Agreement. 

 IN WITNESS WHEREOF, the Company has caused this SAR Agreement to be duly executed by an
officer thereunto duly authorized, and the Participant has hereunto set his or her hand, all as of the day and year first above written. 
  

					
	ZEBRA TECHNOLOGIES CORPORATION
		
	 By:
	 	/s/ Joanne Townsend
	Name:	 	Joanne Townsend
	Title:	 	Vice President, Human Resources

  
 10

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