Document:

Exhibit

 

Exhibit 10.41
REFINANCING AMENDMENT 
(AMENDMENT NO. 2 TO CREDIT AGREEMENT)
REFINANCING AMENDMENT dated as of December 6, 2016 (this “Amendment”) to the Credit Agreement dated as of October 27, 2014 among Zebra Technologies Corporation (the “Borrower”), the Lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Revolving Facility Administrative Agent, and Morgan Stanley Senior Funding, Inc. as Term Loan Administrative Agent and Collateral Agent (as amended from time to time, the “Credit Agreement”).  Capitalized terms used but not defined herein are used as defined in the Credit Agreement.

RECITALS:
1.    The Borrower wishes to obtain Other Term Loans (the “Second Amendment Refinancing Term Loans”; and the Persons making such Loans, the “Second Amendment Refinancing Lenders”) as Credit Agreement Refinancing Indebtedness under the Credit Agreement to refinance all outstanding Term Loans (collectively, the “Second Amendment Refinanced Term Loans”) pursuant to a Refinancing Amendment under the Credit Agreement, and the Second Amendment Refinancing Lenders are willing to provide the Second Amendment Refinancing Term Loans on and subject to the terms and conditions set forth herein. 
2.    Second Amendment Refinancing Lenders will comprise, and Second Amendment Refinancing Term Loans will be made by:
(i)     in part, Term Lenders who hold Second Amendment Refinanced Term Loans and who agree to convert, exchange or “cashless roll” all of their Second Amendment Refinanced Term Loans to or for Second Amendment Refinancing Term Loans; and 
(ii)    in part, Persons providing new Second Amendment Refinancing Term Loans the proceeds of which will be used to repay holders of Second Amendment Refinanced Term Loans that will not be so converted, exchanged or rolled.  
3.    Upon the effectiveness of this Amendment, (A) each Second Amendment Refinancing Lender will make (or convert, exchange or roll its Second Amendment Refinanced Term Loans to or for) Second Amendment Refinancing Term Loans and (B) the Borrower will prepay (in cash or through delivery by the Borrower of Second Amendment Refinancing Term Loans, as applicable) the entire remaining amount of the Second Amendment Refinanced Term Loans, together with accrued and unpaid interest thereon.
4.    Therefore, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

Section 1.    Certain Terms of the Second Amendment Refinancing Term Loans and Amendments to the Credit Agreement.
(a)    New Defined Terms.  Section 1.01 of the Credit Agreement is hereby amended by inserting in appropriate alphabetical order the following new definitions:
“Amendment No. 2” shall mean Refinancing Amendment to this Agreement dated as of December 6, 2016.  
“Amendment No. 2 Effective Date” means December 6, 2016.
“Second Amendment Converting Refinancing Term Lender” means a Second Amendment Refinancing Term Lender that agrees pursuant to Amendment No. 2 to convert, exchange or “cashless roll” all, or any portion, of its Second Amendment Refinanced Term Loan for a Second Amendment Refinancing Term Loan.  A Second Amendment Refinancing Term Lender may be a Second Amendment Converting Refinancing Term Lender with respect to (i) less than all of its Second Amendment Refinancing Term Loan Commitment (if its Second Amendment Refinancing Term Loan Commitment is greater than its Second Amendment Refinanced Term Loan) or (ii) less than all of its Second Amendment Refinanced Term Loan (if its Second Amendment Refinanced Term Loan is greater than its Second Amendment Refinancing Term Loan Commitment).
“Second Amendment Refinancing Term Lender” means, at any time, each Lender with a Second Amendment Refinancing Term Loan Commitment or, after the Second Amendment Refinancing Term Loans are made or issued, holding a Second Amendment Refinancing Term Loan at such time.
“Second Amendment Refinanced Term Loan” means each Refinancing Term Loan, all of which are refinanced or converted, exchanged or rolled into Second Amendment Refinancing Term Loans pursuant to Amendment No. 2.
“Second Amendment Refinancing Term Loan” means each Other Term Loan made by or issued to a Refinancing Term Lender pursuant to Amendment No. 2.
“Second Amendment Refinancing Term Loan Commitment” means, for any Refinancing Term Lender, the amount set forth opposite such Second Amendment Refinancing Term Lender’s name on Schedule A (in the case of any Second Amendment Refinancing Lender making its Second Amendment Refinancing Term Loan in cash) to Amendment No. 2 or Schedule B (in the case of any Second Amendment Refinancing Lender converting, exchanging or rolling its Second Amendment Refinanced Term Loan for a Second Amendment Refinancing Term Loan) to Amendment No. 2.
(b)    Pricing and Maturity of Second Amendment Refinancing Term Loans.  

 

(i)  The last sentence in the definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is amended as follows:
“Applicable Margin” means, for any day with respect to any Second Amendment Refinancing Term Loans, a per annum rate equal to (i) if such Second Amendment Refinancing Term Loan is a Eurocurrency Loan, 2.50% and (ii) if such Second Amendment Refinancing Term Loan is an ABR Loan, 1.50%.
 (ii)  The proviso at the end of the definition of “Adjusted Eurocurrency Rate” is amended in its entirety to read as follows:
provided that, notwithstanding the foregoing, as applied solely to the Initial Term Loans, the Refinancing Term Loans and the Second Amendment Refinancing Term Loans, the Adjusted Eurocurrency Rate shall at no time be less than 0.75% per annum. 
(iii) The definition of “Alternate Base Rate” is amended in its entirety to read as follows:
“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (i) the U.S. Prime Rate in effect on such day, (ii) the Federal Funds Rate, in effect on such day, plus one-half of one percent (1/2%) per annum, (iii) the Adjusted Eurocurrency Rate for any Interest Period of 1 month determined on such day (or if such day is not a Business Day, the immediately preceding Business Day) (without giving effect to the proviso of the definition thereof) (any changes in such rates to be effective as of the date of any change in such rate) plus one percent (1.00%) per annum, and (iv) solely in the case of the Initial Term Loans, the Refinancing Term Loans and the Second Amendment Refinancing Term Loans, 1.75%.
(iv)  The definition of “Term Loan Maturity Date” is modified by adding the following sentence to the end thereof:
The Term Loan Maturity Date with respect to the Second Amendment Refinancing Term Loans means October 27, 2021.
(c)    Commitments to Make Second Amendment Refinancing Term Loans.  Section 2.01 of the Credit Agreement is amended by adding the following to the end thereof:
Subject to the terms and express conditions set forth in Amendment No. 2, each Second Amendment Refinancing Term Lender severally agrees to make a Second Amendment Refinancing Term Loan in Dollars to the Borrower (or, in the case of a Second Amendment Converting Refinancing Term Lender, convert, exchange or roll its Second Amendment Refinanced Term Loan for a Second Amendment Refinancing Term Loan in an equal principal amount) on the Amendment No. 2 Effective Date in an aggregate principal amount equal to its Second Amendment Refinancing Term Loan Commitment.  Each Second 

 

Amendment Refinancing Term Commitment will terminate in full upon the making of the related Second Amendment Refinancing Term Loan (or conversion, exchange or roll of Second Amendment Refinanced Loan, as applicable).  Substantially simultaneously with the borrowing of Second Amendment Refinancing Term Loans, the Borrower shall fully prepay any outstanding Second Amendment Refinanced Term Loans, together with accrued and unpaid interest thereon to the Amendment No. 2 Effective Date; provided that each Second Amendment Converting Refinancing Term Lender irrevocably agrees to accept, in lieu of cash for the outstanding principal amount of its Second Amendment Refinanced Term Loan so prepaid, delivery from the Borrower on the Amendment No. 2 Effective Date of an equal principal amount of Second Amendment Refinancing Term Loans.  Each Second Amendment Refinancing Term Loan shall constitute an Other Term Loan and Term Loan for all purposes of this Agreement.  
The initial Borrowing of the Second Amendment Refinancing Term Loans will be a Eurocurrency Borrowing with an initial Interest Period beginning on the Amendment No. 2 Effective Date and ending (subject to the definition of “Interest Period”) on March 6, 2017.  The Borrower shall pay breakage to the extent required in accordance with the Credit Agreement as though (solely for this purpose) each Second Amendment Refinanced Term Loan of a Second Amendment Converting Refinancing Term Lender had been prepaid on the Amendment No. 2 Effective Date.
(d)    Repayment of Second Amendment Refinancing Term Loans.  Section 2.10(a) of the Credit Agreement is hereby amended in its entirety by adding a new clause (iii) directly below clause (ii) to read as follows:
(iii)    Subject to adjustment pursuant to paragraph (b) of this Section and subject to paragraph (i) of Section 2.11, the Borrower shall repay a principal amount of Second Amendment Refinancing Term Loans on March 31, June 30, September 30 and December 31 of each year (commencing with March 31, 2017) in an amount equal to 0.25% of the aggregate initial principal amount of all Second Amendment Refinancing Term Loans outstanding on the Amendment No. 2 Effective Date after giving effect to the transactions contemplated by Amendment No. 2.  Without limiting the foregoing, to the extent not previously paid, all Second Amendment Refinancing Term Loans shall be due and payable on the Term Loan Maturity Date with respect to the Second Amendment Refinancing Term Loans.
(e)    Soft-Call for Second Amendment Refinancing Term Loans.  The second and third sentences of Section 2.11(a) of the Credit Agreement are hereby amended to read in full as follows:
Each voluntary prepayment of any Loan pursuant to this Section 2.11(a) and mandatory prepayment pursuant to Section 2.11(e) shall be made without premium or penalty except that, in the event that on or prior to the date that is six months after the Amendment No. 2 Effective Date, the Borrower makes any prepayment or repayment of Second Amendment Refinancing Term Loans as a result of a Repricing Transaction or any amendment to this Agreement to effectuate a Repricing Transaction, the Borrower shall pay 

 

to the Term Loan Administrative Agent, for the ratable account of each of the applicable Term Lenders, a prepayment premium in an amount equal to 1% of the amount of the Second Amendment Refinancing Term Loans being so prepaid, repaid or refinanced or the aggregate amount of the applicable Second Amendment Refinancing Term Loans outstanding immediately prior to such amendment and otherwise subject to the Repricing Transaction, as applicable. 
Section 2.    Conditions to Effectiveness of this Amendment.  This Amendment shall become effective as of December 6, 2016 (the “Amendment No. 2 Effective Date”) when:
(a)    this Amendment shall have been executed and delivered by the Borrower, the Subsidiary Loan Parties, each Second Amendment Refinancing Lender and the Term Loan Administrative Agent;
(b)    the Term Loan Administrative Agent shall have received a certificate of the Secretary or Assistant Secretary of the Borrower dated the date hereof certifying (w) that attached thereto is a true and complete copy of the certificate of incorporation, including all amendments thereto of the Borrower certified as of a recent date by the Secretary of State of the State of Delaware (or certifying that there has been no change to the certificate of incorporation of the Borrower since the Amendment No. 1 Effective Date) and a certificate as to the good standing of the Borrower as of a recent date, (x) that attached thereto is a true and complete copy of the by-laws of the Borrower as in effect on such date (or certifying that there has been no change to the by-laws of the Borrower since the Amendment No. 1 Effective Date), (y) that attached is a true and complete copy of the resolutions duly adopted by the Board of Directors of the Borrower, or duly constituted committee thereof, authorizing the execution, delivery and performance of this Amendment, all documents executed in connection therewith, the borrowings thereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect on such date and (z) as to the incumbency and specimen signature of each officer executing this Amendment and any document executed in connection therewith and countersigned by another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary executing such certificate;  
(c)     the Term Loan Administrative Agent shall have received a notice of borrowing of Second Amendment Refinancing Term Loans;
(d)    the Term Loan Administrative Agent shall have received a promissory note in form and substance reasonably acceptable to the Administrative Agent executed by the Borrower in favor of each Second Amendment Refinancing Lender requesting a promissory note;
(e)    the representations and warranties set forth in Article 3 of the Credit Agreement and in each other Loan Document shall be true and correct in all material respects on and as of the date hereof (both before and after giving effect to the transactions contemplated by this Amendment) with the same effect as though made on 

 

and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date;
(f)    the representations and warranties in Section 3 of this Amendment shall be true and correct in all material respects as of the date hereof;
(g)    each Second Amendment Refinancing Lender and the Term Loan Administrative Agent shall have received at least 3 Business Days prior to the date hereof all documentation and other information about the Borrower and the Subsidiary Loan Parties required under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act that has been requested in writing at least 5 Business Days prior to the date hereof; and
(h)    no Default or Event of Default shall exist on the date hereof before or after giving effect to the Second Amendment Refinancing Term Loans and the use of proceeds thereof.
The Borrowing of the Second Amendment Refinancing Term Loans shall be deemed to constitute a representation and warranty by the Borrower on the Amendment No. 2 Effective Date as to the matters specified in paragraphs (e) and (h) above.
Section 3.    Representations and Warranties.  By its execution of this Amendment, the Borrower hereby certifies that this Amendment and the Credit Agreement as amended hereby have been duly authorized by all necessary corporate, shareholder or other organizational action by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with the terms hereof, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
Section 4.      Certain Acknowledgements.  (a)  Each Loan Party hereby expressly acknowledges the terms of this Amendment and reaffirms, as of the date hereof, (i) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated hereby and (ii) its guarantee of the Obligations (including, without limitation, the Second Amendment Refinancing Term Loans) under the Subsidiary Guaranty and its grant of Liens on the Collateral to secure the Obligations (including, without limitation, the Obligations with respect to the Second Amendment Refinancing Term Loans) pursuant to the Security Documents.
(b)    After giving effect to this Amendment, neither the modification of the Credit Agreement effected pursuant to this Amendment nor the execution, delivery, performance or effectiveness of this Amendment (i) impairs the validity, effectiveness or priority of the Liens granted pursuant to any Loan Document, and such Liens continue unimpaired with the same priority to secure repayment of all 

 

Obligations, whether heretofore or hereafter incurred; or (ii) requires that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.
Section 5.      Amendment, Modifications and Waiver.  This Amendment may not be amended, modified or waived except in writing executed by all parties hereto.
Section 6.     Representations to the Agents and Lead Arrangers.  Each Second Amendment Refinancing Lender, solely for the benefit of the Term Loan Administrative Agent and each Amendment No. 1 Lead Arranger, hereby (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment; (ii) agrees that it will, independently and without reliance upon the Term Loan Administrative Agent or any other Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; and (iii) agrees that it shall be bound by the terms of the Credit Agreement as a Lender thereunder and it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
Section 7.      Miscellaneous.  
(a)    Entire Agreement.  This Amendment, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties hereto with respect to the subject matter hereof.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit Agreement, nor alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  It is understood and agreed that each reference in each Loan Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as amended hereby and that this Amendment is a Loan Document.
(b)     GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF TO THE EXTENT SUCH PRINCIPLES WOULD CAUSE THE APPLICATION OF THE LAW OF ANOTHER STATE.  SECTION 9.09(B) THROUGH (D) OF THE CREDIT AGREEMENT IS HEREBY INCORPORATED BY REFERENCE INTO THIS AMENDMENT AND SHALL APPLY HERETO.  
(c)    Severability.  If any provision of this Amendment is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
(d)    Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by telecopier or other electronic means of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment.

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Amendment as of the date first written above.
ZEBRA TECHNOLOGIES CORPORATION
By /s/ Olivier Leonetti    
     Name:    Olivier Leonetti
     Title:    Chief Financial Officer

ZIH CORP.
By /s/ James O’Hagan    
     Name:    James O’Hagan
     Title:    Vice President

ZEBRA TECHNOLOGIES INTERNATIONAL, LLC
By /s/ Jim L. Kaput    
     Name:    Jim L. Kaput
     Title:    Vice President

ZEBRA TECHNOLOGIES ENTERPRISE CORPORATION
By /s/ Todd R. Naughton    
     Name:    Todd R. Naughton
     Title:    Vice President
    

ZEBRA RETAIL SOLUTIONS, LLC
By /s/ Todd R. Naughton    
     Name:    Todd R. Naughton
     Title:    Vice President
LASER BAND, LLC
By /s/ Todd R. Naughton    
     Name:    Todd R. Naughton
     Title:    Vice President

MORGAN STANLEY SENIOR FUNDING, INC., 
    as Term Loan Administrative Agent and 
    Second Amendment Refinancing Lender
By /s/ Jonathon Raven    
     Name:    Jonathon Raven
     Title:    Authorized Signatory

TERM LENDER AGREEMENT
 [Check ONLY ONE of the two boxes below]

CASHLESS SETTLEMENT OPTION

o    The undersigned Lender hereby commits an amount equal to 100% of the outstanding principal amount of the Second Amendment Refinanced Term Loans held by such Lender on the Amendment No. 2 Effective Date (as set forth below) to the making of the Second Amendment Refinancing Term Loan and agrees to exchange (on a cashless basis) 100% of the outstanding principal amount of the Refinanced Term Loans held by such Lender (as set forth below) for Second Amendment Refinancing Term Loans in an equal principal amount, as set forth below.  

ASSIGNMENT SETTLEMENT OPTION

o    The undersigned Lender hereby agrees to have an amount equal to 100% of the outstanding principal amount of the Second Amendment Refinanced Term Loans held by such Lender on the Amendment No. 2 Effective Date (as set forth below) prepaid on the Amendment No. 2 Effective Date and to purchase by assignment Second Amendment Refinancing Term Loans under the Credit Agreement (as amended by Amendment No. 2) in an equal principal amount post-closing.
  
Existing principal amount of Second Amendment Refinanced Term Loans immediately prior to Amendment No. 2 Effective Date: $_________________

	
		
	Name of Lender:

	 

	 

	 

	 

	 

	By _________________________________

	 
	Name:

	 
	Title:

	 

	 

	 

	For any Lender requiring a second signature line:

	 

	 

	By _________________________________

	 
	Name:

	 
	Title:

SCHEDULE A

Second Amendment Refinancing Lenders and Second Amendment Refinancing Term Loans

	
		
	Second Amendment Refinancing Lender
	Second Amendment Refinancing Term Loans (USD)

	Morgan Stanley Senior Funding, Inc.
	$1,723,000,000.00

SCHEDULE B

[To be kept by Term Loan Administrative Agent]Exhibit

Exhibit 10.43

Confidential Waiver Agreement and General Release 

Reference is hereby made to the Employment Agreement dated as of May 1, 2008, as amended (the “Employment Agreement”) between me, Michael Smiley, and Zebra Technologies Corporation (the “Company”).  This Confidential Waiver Agreement and General Release (“Waiver/Release”) is a binding agreement between me and the Company and is the waiver and release referenced pursuant to Section 7B(3) of the Employment Agreement.  My employment will terminate on December 2, 2016 (the “Termination Date”).  I voluntarily and of my own free will sign this Waiver/Release because the Company is agreeing to give me something of value in return for my signing this Waiver/Release. The payments and benefits being provided for pursuant to the Employment Agreement and in consideration of this Waiver/Release are, specifically:

		
	(a)
	In accordance with Section 7A of the Employment Agreement, a payment in an amount equal to any unpaid salary through and including the Termination Date plus any accrued but unused vacation, less statutory income tax withholdings; 

		
	(b)
	In accordance with Section 7B(1)(i)of the Employment Agreement, a payment in the amount of $450,000, said amount representing severance pay equal to 52 weeks of base salary, to be paid in equal biweekly payments of $17,307.69 each in accordance with the Company’s payroll practices (the “Salary Severance Payments”), less statutory income tax withholdings;

		
	(c)
	In accordance with Section 7B(1)(ii) of the Employment Agreement, a payment in an amount to be determined based on actual performance and base earnings in each of the four plan quarters under the 2016 Zebra Incentive Plan, which aggregate amount is to be paid in a lump sum when the 2016 Zebra Incentive is paid to other participants in the plan (the “2016 Annual Incentive Payment”), less statutory income tax withholdings; it being understood, that for purposes of the 2016 Annual Incentive Payment only, the Company will regard my 2016 personal performance as having “met expectations” and whether and to what extent I may receive a 2016 Annual Incentive Payment is subject to the achievement of financial performance targets in the 2016 Zebra Incentive Plan;   

		
	(d)
	In accordance with Section 7B(1)(iv) of the Employment Agreement, a one-time payment in the amount of $382,500, said amount representing severance pay equal to my 2016 target annual incentive under the 2016 Zebra Incentive Plan, to be paid in a lump sum when the 2016 Zebra Incentive is paid to other participants in the plan (the “Annual Incentive Severance Payment”), less statutory income tax withholdings; 

		
	(e)
	In accordance with Section 7B(1)(vi) of the Employment Agreement, the opportunity to participate in the Company’s outplacement assistance program with a value of such assistance up to $50,000 (“Outplacement Assistance”); and

1

		
	(f)
	In accordance with Section 7B(1)(vii) of the Employment Agreement, a subsidy of the cost for continuation coverage of any Company medical and dental plan in which I participated, in accordance with the Consolidated Omnibus Budget 

Reconciliation Act (COBRA).
  
The above Salary Severance Payments, 2016 Annual Incentive Payment, and Annual Incentive Severance Payment shall cease and not be made, and the Outplacement Assistance shall cease, if and when I breach any of my obligations with respect to the Transition Cooperation, Confidentiality, Non-Solicitation & Non-Competition provisions and subparagraph (a) under Additional Agreements and Representations set forth below.

With respect to the period of the special COBRA subsidy, I will pay the same share of the applicable premium that would apply if I were participating in the medical and/or dental plans as an active employee and the Company will pay the applicable premium difference.  I will also be allowed to continue my coverage in the Company’s vision plan in which I participated and will pay the applicable premium I paid as an active employee, in addition to a two percent COBRA administration fee.

This COBRA subsidy begins with the first day of the month after the Termination Date and continues until the earlier of December 31, 2017 and the date I become eligible for coverage under another group health plan that does not impose preexisting condition limitations on my coverage.   Following the completion of my subsidy period, I will be required to pay the total COBRA cost in order to retain medical and dental coverage.

I understand that in return for the payments and benefits listed above, I will be giving up – i.e. “waiving” and “releasing” – any claims that I might have against the Company and certain other related persons or organizations, and am making certain other commitments as listed below.

I will receive the payments and assistance set forth above, less statutory income tax withholdings, only following my return of a fully executed copy of this Waiver/Release, provided that I do not revoke this Waiver/Release; provided, further that the payment set forth in (a) above shall be paid regardless of whether I execute this Waiver/Release.  All such payments will be mailed to me at my home address.

Coverage of Waiver/Release

I intend that this Waiver/Release bind not only me, but also anyone who might stand in my place, including my heirs, executors, administrators, successors and assigns.

I also intend that this Waiver/Release cover not only the Company, but also the present and former employees of the Company, and all other persons who have or are regarded as having some relation to the Company, including its agents, directors, officers and servants. In addition, 
I intend this Waiver/Release also cover other companies which are regarded as parents, subsidiaries, divisions, affiliates, owners, successors and assigns of the Company. All of the persons and business entities referred to in this subparagraph are collectively referred to as “Released Parties” for purposes of this Waiver/Release.

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Claims Waived and Released

By signing this Waiver/Release, to the fullest extent of the law, I permanently waive, release and discharge each and every one of the Released Parties of and from any and all claims, demands, actions, expenses and liabilities of any kind, including but not limited to attorneys’ fees, which 
I may have against them. This includes any claims I ever had or now have or can have of any nature whatsoever, whether now known to me or not known, through the date of my signing of this Waiver/Release, except any claims or rights which cannot be waived by law, including the right to file a federal, state or local administrative charge of discrimination. 

Nothing in this Waiver/Release shall limit my right to participate or cooperate in a charge or complaint of discrimination or retaliation with any federal, state or local agency, and nothing in this Waiver/Release shall limit my right to challenge the enforceability of the release of age-related claims under this Waiver/Release. This paragraph shall be construed to the fullest extent permitted by law and in a manner that is consistent with the EEOC’s regulation on “Tender Back”, to the extent applicable.

My waiver, release and discharge of claims includes, but is not limited to, any claims arising in any way from my employment with the Company or the termination of my employment. Among the claims I waive, release and discharge are the following, although my waiver, release and discharge is not limited to these specific claims:

Any claims under the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. Section 621 et seq. (“ADEA”); Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as amended; the Americans with Disabilities Act; the Employee Retirement Income Security Act of 1974, as amended; the Family and Medical Leave Act of 1993; any state law prohibiting employment discrimination or harassment and any other federal, state or local statute, rule, regulation or principle of common law, including any claims based on theories of contract, tort or otherwise; and any other claims for compensation or payment of any type other than the payments and benefits described on page (1), including but not limited to salary, bonus, vacation pay and/or long-term incentive payments, including stock options.  However, it is agreed that I do not waive, release or discharge any claim I may have to receive whatever benefits in which I am fully vested under the terms of any Company benefit plans applicable to me.

No Admission of Liability

It is agreed that this Waiver/Release is not to be construed in any way as an admission of any liability whatsoever by one or more of the Released Parties. I understand that any such liability has been expressly denied by the Released Parties.

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Confidentiality of Waiver/Release

I agree to keep the terms and provisions of this Waiver/Release in strictest confidence, I will not reveal to anyone, either directly or indirectly, the payments and benefits involved or the other terms and provisions of this Waiver/Release, except the following people after I have first had them promise to keep the information confidential: my personal attorney, my tax advisor and members of my immediate family living with me.

Transition Cooperation, Confidentiality & Non-Solicitation

In further consideration for the benefits described above, I agree to cooperate with and reasonably assist the Company in facilitating a smooth transition of my job duties (the “Transition Cooperation”), including by answering questions as may be asked of me by the Company from time-to-time following the termination of my employment, and I agree, understand and acknowledge the following:  

		
	(a)
	Confidential Information.  I have been furnished, have used or otherwise have had access to certain Confidential Information of the Company and/or a subsidiary of the Company.  For purposes of this Waiver/Release, “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: 

4

		
	(i)
	    information relating to the Company’s or a 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 a 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 a 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 a 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 devote 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 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 a subsidiary and thereafter, I have held and 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.
All Company Materials are and will remain the sole property of the Company and/or a subsidiary.  I agree that I 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.  I further agree that I have returned or will return all Company Materials and other physical property, and any reproduction thereof, and other Company property in my possession (i.e. keys, pagers, credit cards, calling cards, procurement cards, conference call cards, identification cards, mobile devices, all documents and records relating in any way to the Company’s business, whether written or in electronically stored, including documents (and all copies), manuals, computer files, 

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diskettes, customer lists and reports, laptop computers and related accessories, all computer equipment, flash drives or memory sticks, personal digital assistants, business equipment, home office equipment, etc.) not later than Termination Date.  
For purposes of this Waiver/Release, “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 me or by others.
Nothing in this Waiver/Release prohibits me from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. I do not need the prior authorization of Zebra or its Legal Department to make any such reports or disclosures and I am not required to notify Zebra that I have made such reports or disclosures.
		
	(b)
	Non-Solicitation and Non-Compete.  Notwithstanding any provision of this Waiver/Release, if, at any time prior to the date that is one year after the Termination Date, I directly or indirectly: 

		
	(i)
	    breach or violate subsection (a) above regarding Confidential Information and Company Materials; or 

		
	(ii)
	    employ, recruit or solicit for employment any person who is (or was within six (6) months prior to the Termination Date) an employee of the Company and/or any subsidiary; or

		
	(iii)
	    accept employment or engage 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 my employment with the Company or any subsidiary; or

		
	(iv)
	    solicit or encourage any customer, vendor or potential customer or vendor of the Company or any subsidiary with whom I 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; it being understood by me that any person or entity that I contacted during the twelve (12) months prior to the Termination Date for the purpose of soliciting sales from such person or entity shall be regarded as a "potential customer" of the Company or a subsidiary as to whom the Company or a subsidiary has a protectable proprietary interest;

the payments and other benefits set forth in this Waiver/Release (other than the payment set forth in (a) above) shall be forfeited automatically as of the date I engage in such activity and 

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I shall pay the Company, within five (5) business days of receipt by me of a written demand therefor, an amount in cash equal to any amounts previously paid to me under this Waiver/Release, without any deductions for tax or other offsets.     
		
	(c)
	Remedies for Violation.  

Injunctive Action.  I acknowledge that if I violate the terms of this Section the injury that would be suffered by the Company and/or a subsidiary as a result of a breach of the provisions of this Waiver/Release (including any provision of subsection (a) or (b) above) 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 Waiver/Release, and the Company and/or a subsidiary will not be obligated to post bond or other security in seeking such relief.  
		
	(d)
	Enforceability of Restrictive Covenants.  I agree, understand and acknowledge that the scope and duration of the restrictive covenants contained in this Waiver/Release are reasonable and necessary to protect a legitimate, protectable interest of the Company and its subsidiaries.  

Additional Agreements and Representations
I further agree and represent that:

		
	a)
	My eligibility for the benefits in this Waiver/Release are subject to my continuing to serve as the Chief Financial Officer of the Company or in such other transition role as the Company may establish for me until the Termination Date unless an earlier date is agreed to in writing by an executive officer of the Company.  

		
	b)
	I have not filed any legal proceedings, complaints or charges against any one or more of the Released Parties that has not been dismissed, discontinued, withdrawn or fully and finally resolved;

		
	c)
	I have not suffered any workplace injury that could be the basis for a workers’ compensation or other claim against the Company or any of the Released Parties and for which I have not already filed a claim;

		
	d)
	I agree to answer questions and provide information reasonably required to transfer my job duties as needed following the Termination Date.  I further agree that I shall cooperate with any investigations, claims or suits which may relate to my employment or with respect to which I may have knowledge.

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	e)
	I agree to return all Company property, equipment and materials in my possession on or before the Termination Date, including, but not limited to, keys, pagers, credit cards, calling cards, procurement cards, conference call cards, identification cards, mobile devices, laptop computers and related accessories, personal digital assistants, business equipment, home office equipment, all computer equipment, flash drives or memory sticks, and all documents and records relating in any way to the Company’s business, whether written or in electronically stored, including documents (and all copies), manuals, computer files, diskettes, customer lists and reports; 

		
	f)
	I will not encourage or urge or suggest to any current or former employee of the Company or of any other of the Released Parties that she or he should file any claim or complaint against the Company or against any other of the Released Parties; and

		
	g)
	That it is my responsibility, together with my personal legal and tax advisors, to consider the effect of this Waiver/Release on my individual tax situation. It is also my responsibility to pay any taxes that any tax authority may claim are payable. I understand that neither the Company, any other of the Released Parties or any of their representatives has made any representation to me with respect to taxes.

Entire Agreement/Modification 

This Waiver/Release contains the entire agreement between us; provided, that this Waiver/Release shall not affect the terms or conditions, or affect the validity of, any equity award agreement between the Company and me, any compensation plan of the Company, which will remain in full force and effect and I restate my commitment to comply with any and all applicable post-employment restrictions by my signature below.  Subject to such exceptions, we agree that no other agreement, representation, or promise is valid or binding. We also agree that no modification of or change to this Waiver/Release can be binding unless it is made in writing and signed by the party to be bound. 

Acknowledgements

The waiver and release of claims, including claims under the ADEA, contained in this Waiver/Release does not cover rights or claims that may arise after the date on which I sign this Waiver/Release. I acknowledge that I have been advised by the Company to consult with an attorney during the Evaluation Period (defined below) and prior to signing this Waiver/Release. 
I also acknowledge and agree that the payments and benefits listed on page one (1) that I will receive for signing this Waiver/Release are in addition to anything of value to which I was already entitled.  I further acknowledge that, as of the date I sign this Waiver/Release and except as provided in this Waiver/Release and as set forth in the Employment Agreement, I have received all monies and benefits from the Company to which I am or was otherwise entitled.  If I participate in the Zebra Technologies Corporation Deferred Compensation Plan (the “Plan”), my eligibility to participate in the Plan will end on my Termination Date, and any amounts credited to me under the Plan will be paid, distributed or held under the Plan in accordance with the Plan terms and my elections. 

8

 
Evaluation/Revocation Period

I acknowledge and agree that I have been given the opportunity to take up to twenty-one (21) days from the date I receive this Waiver and Release Agreement within which to consider and evaluate its terms (the “Evaluation Period”), and that I have voluntarily waived that Evaluation Period if I deliver signed documents prior to the expiration of those twenty-one (21) days.  I understand that for a period of seven (7) days following my signing this Waiver/Release, I may revoke it by delivering a written notice of revocation to the Company, specifically to the Zebra General Counsel, so that it is received before the eighth day.  It is agreed that this Waiver/Release will not become effective or enforceable until the seven (7) day revocation period has expired.

Voluntary and Knowing Execution

I declare and represent that I have carefully read and fully understand the terms of this Waiver/Release. In exchange for consideration (something of value) in addition to anything of value to which I am already entitled, I, knowingly and voluntarily, of my own free will without any duress, being fully informed and after due deliberation, accept the terms of this Waiver/Release in full compromise and settlement of all of my claims. I sign this Waiver/Release as my own free act on the date indicated below.

Applicable Law

It is agreed that the laws of the State of Illinois will govern this Waiver/Release.

Employee:                        Zebra Technologies Corporation, by:    

Michael Terzich    
Michael Smiley                        (printed name)

 /s/ Michael Smiley         /s/ Michael Terzich    
(signature)                        (signature)

 November 18, 2016         November 21, 2016    
(date)                            (date)

[confidential]    
(email & phone)    

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Mail your (original) completed form to:

Zebra Technologies Corporation
Attention:  General Counsel
3 Overlook Point
Lincolnshire, IL 60069

T: +1 847 634 6700  F: +1 847 821 1492

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