Document:

EX-10.2

EXHIBIT 10.2

EXECUTION VERSION

AMENDED AND RESTATED

GUARANTEE AND COLLATERAL AGREEMENT

dated as of

December 29, 2004

(as amended and restated as of September 1, 2006)

among

SYMBOL TECHNOLOGIES, INC.,

THE SUBSIDIARIES OF SYMBOL TECHNOLOGIES, INC.,

IDENTIFIED HEREIN

and

JPMORGAN CHASE BANK, N.A.,

1

as Collateral Agent

TABLE OF CONTENTS

ARTICLE I

Definitions

	 	 	SECTION 1.01. Credit Agreement

	 	 	SECTION 1.02. Other Defined Terms

ARTICLE II

Guarantee

	 	 	SECTION 2.01. Guarantee

	 	 	SECTION 2.02. Guarantee of Payment

	 	 	SECTION 2.03. No Limitations

	 	 	SECTION 2.04. Reinstatement

	 	 	SECTION 2.05. Agreement To Pay; Subrogation

	 	 	SECTION 2.06. Information

	 	 	SECTION 2.07. Withholding Taxes

ARTICLE III

Pledge of Securities

	 	 	SECTION 3.01. Pledge

	 	 	SECTION 3.02. Delivery of the Pledged Securities

	 	 	SECTION 3.03. Representations, Warranties and Covenants

	 	 	SECTION 3.04. Certification of Limited Liability Company

and Limited Partnership Interests

	 	 	SECTION 3.05. Registration in Nominee Name; Denominations

	 	 	SECTION 3.06. Voting Rights; Dividends and Interest

	 	 	SECTION 3.07. Conflicts with Foreign Pledge Agreements

	 	 	SECTION 3.08. Financing Statements; Annual Certificates

	 	 	SECTION 3.09. Further Assurances

ARTICLE IV

Remedies

	 	 	SECTION 4.01. Remedies Upon Default

	 	 	SECTION 4.02. Application of Proceeds

	 	 	SECTION 4.03. Securities Act

	 	 	SECTION 4.04. Registration

	 	 	SECTION 4.05. Symbol de Mexico Guarantee

ARTICLE V

Indemnity, Subrogation and Subordination

	 	 	SECTION 5.01. Indemnity and Subrogation

	 	 	SECTION 5.02. Contribution and Subrogation

	 	 	SECTION 5.03. Subordination

ARTICLE VI

Miscellaneous

	 	 	 
	SECTION 6.01. Notices

SECTION 6.02. Waivers; Amendment

	 	

	 
	 	 
	SECTION 6.03. Collateral Agent’s Fees and Expenses; Indemnification

	 
	 	 
	SECTION 6.04. Successors and Assigns

SECTION 6.05. Survival of Agreement

	 	

	 
	 	 
	SECTION 6.06. Counterparts; Effectiveness; Several Agreement

	 
	 	 
	SECTION 6.07. Severability

SECTION 6.08. Right of Set-Off

	 	

	 
	 	 
	SECTION 6.09. Governing Law; Jurisdiction; Consent to Service of Process

	 
	 	 
	SECTION 6.10. WAIVER OF JURY TRIAL

SECTION 6.11. Headings

SECTION 6.12. Security Interest Absolute

SECTION 6.13. Termination or Release

SECTION 6.14. Additional Subsidiaries

	 	

	 
	 	 
	SECTION 6.15. Collateral Agent Appointed Attorney-in-Fact

	 
	 	 
	SECTION 6.16. Parallel Debt (Covenant to pay the Collateral Agent)

	 
	 	 
	Schedules

Schedule I

Schedule II

	 	

Guarantors

Pledged Stock
	 
	 	 
	Exhibits

Exhibit I

Exhibit II

	 	

Form of Supplement

Form of Perfection Certificate

2

AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT (this
“Agreement”)dated as of December 29, 2004, as amended and restated as of
September 1, 2006, among SYMBOL TECHNOLOGIES, INC., the Subsidiaries of
SYMBOL TECHNOLOGIES, INC. identified herein and JPMORGAN CHASE BANK, N.A.,
as Collateral Agent.

Reference is made to the Credit Agreement dated as of December 29, 2004, as amended and
restated as of September 1, 2006 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among Symbol Technologies, Inc. (the “Borrower”), the lenders from time to
time party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of
America, N.A., as Syndication Agent. The Lenders have agreed to extend credit to the Borrower
subject to the terms and conditions set forth in the Credit Agreement. The obligations of the
Lenders to extend such credit are conditioned upon, among other things, the execution and delivery
of this Agreement. The Guarantors are affiliates of the Borrower, will derive substantial benefits
from the extension of credit to the Borrower pursuant to the Credit Agreement and are willing to
execute and deliver this Agreement in order to induce the Lenders to extend such credit.
Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not
otherwise defined herein have the meanings specified in the Credit Agreement. All terms defined in
the New York UCC (as defined herein) and not defined in this Agreement have the meanings specified
therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC.

(b) The rules of construction specified in Sections 1.03, 1.04 and 1.05 of the Credit
Agreement also apply to this Agreement.

SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

“Card Programs” means (a) purchasing card programs established to enable headquarters and
field staff of each Loan Party or any Domestic Subsidiary to purchase goods and supplies from
vendors and (b) any travel and entertainment card program established to enable headquarters and
field staff of each Loan Party or any Domestic Subsidiary to make payments for expenses incurred
related to travel and entertainment; provided that (i) the aggregate amount of outstanding
obligations at any time under all such Card Programs that is secured and guaranteed hereunder does
not exceed US$7,000,000 and (ii) any such Card Program is (x) is in effect on the Effective Date
with an institution that is a Lender or an Affiliate of a Lender as of the Effective Date or (y) is
established after the Effective Date with an institution that is a Lender or an Affiliate of a
Lender at the time such Card Program is established.

“Collateral” has the meaning assigned to such term in Section 3.01.

“Continuing Grantors” has the meaning assigned to such term in Section 6.13(e).

“Credit Agreement” has the meaning assigned to such term in the preliminary statement of this
Agreement.

“Existing Collateral Agreement” means the “Collateral Agreement” as defined in the Existing
Credit Agreement as such Collateral Agreement was in effect immediately prior to its amendment and
restatement as of the Effective Date.

“Federal Securities Laws” has the meaning assigned to such term in Section 4.03.

“Grantors” means the Borrower and the Guarantors (other than Symbol de Mexico).

“Guarantee Excluded Taxes” means, with respect to the Collateral Agent, any Lender, any
Issuing Bank or any other recipient of any payment to be made by or on behalf of any obligation of
the Guarantor hereunder, the following taxes, including interest, penalties or other additions
thereto:

(a) income taxes imposed on (or measured by) its net income or franchise taxes imposed on (or
measured by) its gross or net income by the United States of America, or by the jurisdiction under
the laws of which such recipient is organized, or in which its principal office is located or in
which it is otherwise deemed to be engaged in a trade or business for tax purposes or, in the case
of any Lender, in which its applicable lending office is located, in each case including any
political subdivision thereof;

(b) any branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction described in clause (a) above or

(c) any withholding tax that is attributable to a Lender’s failure to comply with Section
2.06(b) of the Credit Agreement.

“Guarantors” means (a) each Subsidiary that is identified as a Guarantor on Schedule I and (b)
each other Subsidiary that becomes a party to this Agreement as a Guarantor after the Effective
Date.

“Loan Document Obligations” means (a) the due and punctual payment by the Borrower of (i) the
principal of and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (ii) each payment required to be made by the Borrower
under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments
in respect of reimbursement of disbursements, interest thereon and obligations to provide cash
collateral, and (iii) all other monetary obligations of the Borrower to any of the Secured Parties
under the Credit Agreement and each of the other Loan Documents, including obligations to pay fees,
expense reimbursement obligations and indemnification obligations, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding), (b) the due and punctual performance of all other
obligations of the Borrower under or pursuant to the Credit Agreement and each of the other Loan
Documents and (c) the due and punctual payment and performance of all the obligations of each other
Loan Party under or pursuant to this Agreement and each of the other Loan Documents. For the
avoidance of doubt, (i) all obligations referred to in clause (b), (c), (d) and (e) of the
definition of “Obligations” shall not constitute Loan Document Obligations and (ii) any obligations
of the Borrower or any other Loan Party to a Lender or any Affiliate of a Lender under Section 6.16
of this Agreement shall not constitute Loan Document Obligations to the extent that such
obligations are of a type referred to in clause (b), (c), (d) or (e) of the definition of
“Obligations”.

“New York UCC” means the Uniform Commercial Code as from time to time in effect in the State
of New York.

“Obligations” means (a) Loan Document Obligations, (b) the due and punctual payment and
performance of all obligations of each Loan Party under each Hedging Agreement that (i) is in
effect on the Effective Date with a counterparty that is a Lender or an Affiliate of a Lender as of
the Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a
Lender or an Affiliate of a Lender at the time such Hedging Agreement is entered into, (c) the due
and punctual payment and performance of all obligations owed from time to time by each Loan Party
or Subsidiary to any Lender or its Affiliates in respect of treasury and cash management services,
including obligations in respect of overdraft, interest and fees, in each case relating to such
treasury or cash management services, (d) the due and punctual payment and performance of all
obligations owed from time to time by each Loan Party or Domestic Subsidiary to any Lender or its
Affiliates in respect of Card Programs; provided that in no event shall any Obligations in
respect of any Obligations described in clauses (b), (c) or (d) hereof, in each case provided by an
Affiliate of a Lender, constitute Obligations for the purpose of any Security Document governed by
the laws of The United Kingdom unless the documents evidencing such Hedging Agreement, treasury
services, cash management services or Card Programs, as applicable, contain the following language:

“We [name of hedging counterparty, treasury services or cash management
provider or Card Programs provider] hereby confirm that by entering into this
[insert name of contract], we intend to be party to the Trust Agreement (the
“Trust Agreement”) dated February 16, 2005, between, among others, JPMorgan
Chase Bank, N.A., as Security Trustee (the “Security Trustee”), and the
Secured Parties named therein, and (a) undertake to perform all the obligations
expressed in the Trust Agreement to be assumed by a Secured Party, and (b) agree
that we shall be bound by all the provisions of the Trust Agreement, as if we had
been an original party thereto. We further agree that the Security Trustee may rely
upon our undertaking and agreement given herein.”

; provided further that any reference to “Obligations” or “Secured
Obligations” in any Security Document governed by the laws of any jurisdiction other than
the United States of America or The United Kingdom (in the case of The United Kingdom, to
the extent that the relevant documents evidencing such Hedging Agreement, treasury services,
cash management services or Card Programs, as applicable, contain the language noted above)
shall not be deemed to include the proviso following clause (d) of this definition and (e)
the due and punctual payment of all reimbursement obligations and interest thereon owed from
time to time by the Borrower to a Lender or an Affiliate of a Lender in respect of letters
of credit permitted by Section 6.01(a)(x) of the Credit Agreement.

“Perfection Certificate” means a certificate substantially in the form of Exhibit II,
completed and supplemented with the schedules and attachments contemplated thereby, and duly
executed by a Financial Officer and the chief legal officer of the Borrower.

“Pledged Securities” means any stock certificates or other securities now or hereafter
included in the Collateral, including all certificates, instruments or other documents representing
or evidencing any Collateral.

“Pledged Stock” has the meaning assigned to such term in Section 3.01.

“Proceeds” has the meaning specified in Section 9-102 of the New York UCC.

“Secured Parties” means (a) the Lenders, (b) the Collateral Agent, (c) the Issuing Banks,
(d) each counterparty to any Hedging Agreement with a Loan Party the obligations under which
constitute Obligations, (e) each Lender or Affiliate thereof providing treasury, cash management or
similar services the obligations under which constitute Obligations, (f) each Lender or Affiliate
thereof providing Card Programs or similar services the obligations under which constitute
Obligations, (g) the beneficiaries of each indemnification obligation undertaken by any Loan Party
under any Loan Document, (h) each Lender and Affiliate of a Lender issuing letters of credit
permitted by Section 6.01(a)(x) of the Credit Agreement, the reimbursement obligations under which
constitute Obligations and (i) the successors and assigns of each of the foregoing.

ARTICLE II

Guarantee

SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other
Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual
payment and performance of the Obligations. Each of the Guarantors further agrees that the
Obligations may be extended or renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal
of any Obligation. Each of the Guarantors waives presentment to, demand of payment from and
protest to the Borrower or any other Loan Party of any of the Obligations, and also waives notice
of acceptance of its guarantee and notice of protest for nonpayment.

SECTION 2.02. Guarantee of Payment. Each of the Guarantors further agrees that its guarantee
hereunder constitutes a guarantee of payment when due and not of collection, and waives any right
to require that any resort be had by the Collateral Agent or any other Secured Party to any
security held for the payment of the Obligations or to any balance of any deposit account or credit
on the books of the Collateral Agent or any other Secured Party in favor of the Borrower or any
other Person.

SECTION 2.03. No Limitations. (a) Except for termination of a Guarantor’s obligations
hereunder as expressly provided in Section 6.13, the obligations of each Guarantor hereunder shall
not be subject to any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any
defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of
the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by (i) the failure of the Collateral Agent or any other Secured Party to assert
any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or
otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of
the terms or provisions of, any Loan Document or any other agreement, including with respect to any
other Guarantor under this Agreement; (iii) the release of any security held by the Collateral
Agent or any other Secured Party for the Obligations or any of them; (iv) any default, failure or
delay, wilful or otherwise, in the performance of the Obligations; or (v) any other act or omission
that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise
operate as a discharge of any Guarantor as a matter of law or equity (other than the indefeasible
payment in full in cash of all the Obligations). Each Guarantor expressly authorizes the Secured
Parties to take and hold security for the payment and performance of the Obligations, to accept an
exchange, waive or release any or all such security (with or without consideration), to enforce or
apply such security and direct the order and manner of any sale thereof in their sole discretion or
to release or substitute any one or more other guarantors or obligors upon or in respect of the
Obligations, all without affecting the obligations of any Guarantor hereunder.

(b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based
on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of
the Obligations or any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower or any other Loan Party, other than the indefeasible payment in full in
cash of all the Obligations. The Collateral Agent and the other Secured Parties may, at their
election, foreclose on any security held by one or more of them by one or more judicial or
nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or
adjust any part of the Obligations, make any other accommodation with the Borrower or any other
Loan Party or exercise any other right or remedy available to them against the Borrower or any
other Loan Party, without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations have been fully and indefeasibly paid in full in
cash. To the fullest extent permitted by applicable law, each Guarantor waives any defense arising
out of any such election even though such election operates, pursuant to applicable law, to impair
or to extinguish any right of reimbursement or subrogation or other right or remedy of such
Guarantor against the Borrower or any other Loan Party, as the case may be, or any security.

SECTION 2.04. Reinstatement. Each of the Guarantors agrees that its guarantee hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any Obligation is rescinded or must otherwise be restored by the Collateral Agent or
any other Secured Party upon the bankruptcy or reorganization of the Borrower, any other Loan Party
or otherwise.

SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Collateral Agent or any other Secured Party has at law or in
equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan
Party to pay any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Collateral Agent for distribution to the applicable
Secured Parties in cash the amount of such unpaid Obligation. Upon payment by any Guarantor of any
sums to the Collateral Agent as provided above, all rights of such Guarantor against the Borrower
or any other Loan Party arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall in all respects be subject to Article V.

SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping
itself informed of the Borrower’s and each other Loan Party’s financial condition and assets, and
of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Collateral Agent or the other Secured Parties will have any duty to advise such
Guarantor of information known to it or any of them regarding such circumstances or risks.

SECTION 2.07. Withholding Taxes. (a) Any payment made by a Guarantor pursuant to this
Agreement which results in the imposition of Taxes (except Guarantee Excluded Taxes) which would
not have been imposed had the payment been made by the Borrower shall be made free and clear of and
without deduction for any such Taxes; provided that if a Guarantor shall be required to deduct any
such Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums paid under
this section) the Collateral Agent, Lender or Issuing Bank (as the case may be) receives an amount
equal to the sum it would have received had no such deductions been made, (ii) such Guarantor shall
make such deductions and (iii) such Guarantor shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law; provided, however that any additional
payment to be made under this Section 2.07 shall only be made to the Collateral Agent, Lender or
Issuing Bank, as the case may be, to the extent that the total payment received by such entity does
not exceed the total payment such entity would have received if the Borrower had made such payment.
For the avoidance of doubt, this Section 2.07 shall be read as an obligation of the Guarantors
that is in addition to their assumption of the Borrower’s obligations to indemnify for Indemnified
Taxes and Other Taxes pursuant to Section 2.16 of the Credit Agreement and shall not relieve a
Guarantor of its obligations to make payments pursuant to Section 2.16 of the Credit Agreement on
the Borrower’s behalf.

ARTICLE III

Pledge of Securities

SECTION 3.01. Pledge. As security for the payment or performance, as the case may be, in full
of the Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, its successors
and assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its
successors and assigns, for the benefit of the Secured Parties, a security interest in, all of such
Grantor’s right, title and interest in, to and under (a) the shares of capital stock and other
Equity Interests of Subsidiaries owned by it, including those listed on Schedule II and any other
Equity Interests of Subsidiaries obtained in the future by such Grantor and the certificates
representing all such Equity Interests (the “Pledged Stock”); provided that the Pledged Stock shall
not include (i) any Equity Interests of Immaterial Domestic Subsidiaries, (ii) more than 65% of the
issued and outstanding voting Equity Interests of any Foreign Subsidiary, (iii) any Equity
Interests of any Foreign Subsidiary that is (y) organized in Australia or (z) not a Significant
Foreign Subsidiary or (iv) any Equity Interests of Symbol de Mexico and Symbol Technologies, C.V.;
(b) all other property that may be delivered to and held by the Collateral Agent pursuant to the
terms of this Section 3.01; (c) subject to Section 3.06, all payments of dividends, cash,
instruments and other property from time to time received, receivable or otherwise distributed in
respect of, in exchange for or upon the conversion of, and all other Proceeds received in respect
of, the securities referred to in clause (a) above; (d) subject to Section 3.06, all rights and
privileges of such Grantor with respect to the securities and other property referred to in
clauses (a), (b) and (c) above; and (e) all Proceeds of any of the foregoing (the items referred to
in clauses (a) through (e) above being collectively referred to as the “Collateral”).

SECTION 3.02. Delivery of the Pledged Securities. (a) Each Grantor agrees, to the extent not
otherwise required by a Foreign Pledge Agreement or prohibited by applicable law, promptly to
deliver or cause to be delivered to the Collateral Agent any and all certificates constituting
Pledged Securities (other than such certificates previously delivered to the Collateral Agent).

(b) Upon delivery to the Collateral Agent, (i) any certificates constituting Pledged
Securities shall be accompanied by stock powers duly executed in blank or other instruments of
transfer satisfactory to the Collateral Agent and by such other instruments and documents as the
Collateral Agent may reasonably request and (ii) all other property comprising part of the
Collateral shall be accompanied by proper instruments of assignment duly executed by the applicable
Grantor and such other instruments or documents as the Collateral Agent may reasonably request.
Each delivery of Pledged Securities shall be accompanied by a schedule describing the securities,
which schedule shall be attached hereto as Schedule II and made a part hereof; provided that
failure to attach any such schedule hereto shall not affect the validity of such pledge of such
Pledged Securities. Each schedule so delivered shall supplement any prior schedules so delivered.

(c) If the charter, by-laws or any other organizational document of an issuer of Pledged Stock
restricts the transfer of such Pledged Stock and such issuer is a wholly owned Subsidiary, then the
applicable Grantor shall deliver to the Collateral Agent a certified copy of a resolution of the
directors or shareholders of such issuer consenting to the transfer(s) contemplated by this
Agreement, including any prospective transfer of such Pledged Stock and any other related
Collateral by the Collateral Agent or any Secured Party upon a realization on the security
constituted hereby in accordance with this Agreement.

SECTION 3.03. Representations, Warranties and Covenants. The Grantors jointly and severally
represent, warrant and covenant to and with the Collateral Agent, for the benefit of the Secured
Parties, that:

(a) Schedule II correctly sets forth the percentage of the issued and outstanding units of
each class of the Equity Interests of the issuer thereof represented by the Pledged Stock and
includes all Equity Interests required to be pledged hereunder in order to satisfy the Collateral
and Guarantee Requirement;

(b) The Pledged Stock has been duly and validly authorized and issued by the issuers thereof
and is fully paid and nonassessable;

(c) except for the security interests granted hereunder and/or under any other Security
Documents governed by laws other than the laws of the United States of America, each of the
Grantors (i) is and, subject to any transfers made in compliance with the Credit Agreement, will
continue to be the direct owner, beneficially and of record, of the Pledged Securities indicated on
Schedule II as owned by such Grantor, (ii) holds the same free and clear of all Liens, other than
Liens created by this Agreement, Permitted Encumbrances and transfers made in compliance with the
Credit Agreement, (iii) will make no assignment, pledge, hypothecation or transfer of, or create or
permit to exist any security interest in or other Lien on, the Collateral, other than Liens created
by this Agreement, Permitted Encumbrances and transfers made in compliance with the Credit
Agreement, and (iv) will defend its title or interest thereto or therein against any and all Liens
(other than the Lien created by this Agreement and Permitted Encumbrances), however, arising, of
all Persons whomsoever;

(d) except for restrictions and limitations imposed by the Loan Documents or securities laws
generally, the Collateral is and will continue to be freely transferable and assignable, and none
of the Collateral is or will be subject to any option, right of first refusal, shareholders
agreement, charter or by-law provisions (or any analogous organizational documents in any
jurisdiction) or contractual restriction of any nature that might prohibit, impair, delay or
otherwise affect the pledge of such Collateral hereunder, the sale or disposition thereof pursuant
hereto or the exercise by the Collateral Agent of rights and remedies hereunder;

(e) each of the Grantors has the power and authority to pledge the Collateral pledged by it
hereunder in the manner hereby done or contemplated;

(f) except as otherwise required with respect to collateral pledged pursuant to the terms of
the Foreign Pledge Agreements, no consent or approval of any Governmental Authority, any securities
exchange or any other Person was or is necessary to the validity of the pledge effected hereby
(other than such as have been obtained and are in full force and effect);

(g) by virtue of the execution and delivery by the Grantors of this Agreement, when any
Pledged Securities are delivered to the Collateral Agent in accordance with this Agreement, and
with respect to Pledged Securities pledged pursuant to any Foreign Pledge Agreement, by virtue of
any additional requirements set forth in such Foreign Pledge Agreement, the Collateral Agent will
obtain a legal, valid and perfected lien upon and security interest in such Pledged Securities, as
security for the payment and performance of the Obligations;

(h) the performance of this Agreement and each Foreign Pledge Agreement does not contravene
any material law, contract provision or the charter, by-laws or other organizational documents of
each Grantor or order binding on such Grantor;

(i) the pledge effected hereby, when taken together with the Foreign Pledge Agreements, is
effective to vest in the Collateral Agent, for the benefit of the Secured Parties, the rights of
the Collateral Agent in the Collateral as set forth herein;

(j) the Perfection Certificates have been duly prepared, completed and executed and the
information set forth therein, including the exact legal name of each Grantor, is correct and
complete as of the Effective Date. The Uniform Commercial Code financing statements prepared by
the Collateral Agent based upon the information provided to the Collateral Agent in the Perfection
Certificates for filing in each governmental, municipal or other office specified in Schedule 5 to
the Perfection Certificates (or specified by notice from the Borrower to the Collateral Agent after
the Effective Date in the case of filings, recordings or registrations required by Section 5.03(a)
or 5.12 of the Credit Agreement), are all the filings, recordings and registrations that are
necessary to establish a legal, valid and perfected security interest in favor of the Collateral
Agent (for the benefit of the Secured Parties) in respect of all Collateral in which a security
interest may be perfected by filing, recording or registration in the United States of America (or
any political subdivision thereof) and its territories and possessions, and no further or
subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary in
any such jurisdiction, except as provided under applicable law with respect to the filing of
continuation statements.

(k) None of the Grantors has filed or consented to the filing of (i) any financing statement
or analogous document under the Uniform Commercial Code or any other applicable laws covering any
Collateral, (ii) any assignment in which any Grantor assigns any Collateral or any security
agreement or similar instrument covering any Collateral with any foreign governmental, municipal or
other office, which financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, for Liens expressly permitted pursuant
to clause (iii), (iv) or (v) of Section 6.02 of the Credit Agreement.

SECTION 3.04. Certification of Limited Liability Company and Limited Partnership Interests.
Each interest in any limited liability company or limited partnership controlled by any Grantor and
pledged hereunder shall, to the extent permitted by the applicable laws of any country other than
the United States of America, be represented by a certificate, shall be a “security” within the
meaning of Article 8 of the New York UCC and shall be governed by Article 8 of the New York UCC.

SECTION 3.05. Registration in Nominee Name; Denominations. The Administrative Agent, on
behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold
the Pledged Securities in the name of the applicable Grantor, endorsed or assigned in blank or in
favor of the Administrative Agent. At any time upon the occurrence and during the continuance of
an Event of Default, the Collateral Agent, on behalf of the Secured Parties, shall have the right
(in its sole and absolute discretion) to hold the Pledged Securities in its own name as pledgee,
the name of its nominee (as pledgee or as sub-agent) or the name of the applicable Grantor,
endorsed or assigned in blank or in favor of the Collateral Agent. Each Grantor will promptly give
to the Collateral Agent copies of any notices or other communications received by it with respect
to Pledged Securities registered in the name of such Grantor. The Collateral Agent shall at all
times have the right to exchange the certificates representing Pledged Securities for certificates
of smaller or larger denominations for any purpose consistent with this Agreement.

SECTION 3.06. Voting Rights; Dividends and Interest. (a) Unless and until an Event of
Default shall have occurred and be continuing and the Collateral Agent shall have notified the
Grantors that their rights under this Section 3.06 are being suspended:

(i) Each Grantor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Securities or any part thereof
for any purpose consistent with the terms of this Agreement, the Credit Agreement and the
other Loan Documents; provided that such rights and powers shall not be exercised in any
manner that could materially and adversely affect the rights inuring to a holder of any
Pledged Securities or the rights and remedies of any of the Collateral Agent or the other
Secured Parties under this Agreement or the Credit Agreement or any other Loan Document or
the ability of the Secured Parties to exercise the same.

(ii) The Collateral Agent shall execute and deliver to each Grantor, or cause to be
executed and delivered to such Grantor, all such proxies, powers of attorney and other
instruments as such Grantor may reasonably request for the purpose of enabling such Grantor
to exercise the voting and/or consensual rights and powers it is entitled to exercise
pursuant to subparagraph (i) above.

(iii) Each Grantor shall be entitled to receive and retain any and all dividends and
other distributions paid on or distributed in respect of the Pledged Securities to the
extent and only to the extent that such dividends and other distributions are permitted by,
and otherwise paid or distributed in accordance with, the terms and conditions of the
Credit Agreement, the other Loan Documents and applicable laws; provided that any noncash
dividends or other distributions that would constitute Pledged Stock, whether resulting
from a subdivision, combination or reclassification of the outstanding Equity Interests of
the issuer of any Pledged Securities or received in exchange for Pledged Securities or any
part thereof, or in redemption thereof, or as a result of any merger, consolidation,
acquisition or other exchange of assets to which such issuer may be a party or otherwise,
shall be and become part of the Collateral, and, if received by any Grantor, shall not be
commingled by such Grantor with any of its other funds or property but shall be held
separate and apart therefrom, shall be held in trust for the benefit of the Collateral
Agent and shall be forthwith delivered to the Collateral Agent in the same form as so
received (with any necessary endorsement).

(b) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified the Grantors of the suspension of their rights under paragraph
(a)(iii) of this Section 3.06, then all rights of any Grantor to dividends or other distributions
that such Grantor is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.06
shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall
have the sole and exclusive right and authority to receive and retain such dividends or other
distributions. All dividends or other distributions received by any Grantor contrary to the
provisions of this Section 3.06 shall be held in trust for the benefit of the Collateral Agent,
shall be segregated from other property or funds of such Grantor and shall be forthwith delivered
to the Collateral Agent upon demand in the same form as so received (with any necessary
endorsement). Any and all money and other property paid over to or received by the Collateral
Agent pursuant to the provisions of this paragraph (b) shall be retained by the Collateral Agent in
an account to be established by the Collateral Agent upon receipt of such money or other property
and shall be applied in accordance with the provisions of Section 4.02 of this Agreement. After
all Events of Default have been cured or waived and the Borrower has delivered to the Collateral
Agent a certificate to that effect, the Collateral Agent shall, promptly repay to each Grantor
(without interest) all dividends or other distributions that such Grantor would otherwise be
permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that
remain in such account.

(c) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified the Grantors of the suspension of their rights under paragraph
(a)(i) of this Section 3.06, then all rights of any Grantor to exercise the voting and consensual
rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 3.06, and
the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease,
and all such rights shall thereupon become vested in the Collateral Agent, which shall have the
sole and exclusive right and authority to exercise such voting and consensual rights and powers;
provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have
the right from time to time following and during the continuance of an Event of Default to permit
the Grantors to exercise such rights.

(d) Any notice given by the Collateral Agent to the Grantors suspending their rights under
paragraph (a) of this Section 3.06 (i) may be given by telephone if promptly confirmed in writing,
(ii) may be given to one or more of the Grantors at the same or different times and (iii) may
suspend the rights of the Grantors under paragraph (a)(i) or paragraph (a)(iii) in part without
suspending all such rights (as specified by the Collateral Agent in its sole and absolute
discretion) and without waiving or otherwise affecting the Collateral Agent’s rights to give
additional notices from time to time suspending other rights so long as an Event of Default has
occurred and is continuing.

SECTION 3.07. Conflicts with Foreign Pledge Agreements. To the extent that there is any
overlap between, or conflict with, the provisions of this Agreement and any Foreign Pledge
Agreement such Foreign Pledge Agreement shall prevail with respect only to (i) any provision
relating to the portion of the Collateral described in and covered under such Foreign Pledge
Agreement and (ii) any other provision in respect of which adherence to the law governing such
Foreign Pledge Agreement is required for such Foreign Pledge Agreement to be valid or enforceable
in accordance with its terms.

SECTION 3.08. Financing Statements; Annual Certificates. (a) Each Grantor hereby irrevocably
authorizes the Collateral Agent at any time and from time to time to file in any relevant
jurisdiction any initial financing statements with respect to the Collateral or any part thereof
and amendments thereto that (i) identify the Collateral and (ii) contain the information required
by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any
financing statement or amendment, including (a) whether such Grantor is an organization, the type
of organization and any organizational identification number issued to such Grantor. Each Grantor
agrees to provide such information to the Collateral Agent promptly upon request. Each Grantor
also ratifies its authorization for the Collateral Agent to file in any relevant jurisdiction any
initial financing statements or amendments thereto if filed prior to the date hereof.

(b) Each Grantor agrees promptly to notify the Collateral Agent in writing of any change
(i) in corporate name, (ii) in the location of its chief executive office, its principal place of
business and any office in which it maintains books or records relating to the Collateral owned by
it, (iii) in its identity or type of organization or corporate structure, (iv) in its Federal
Taxpayer Identification Number or organizational identification number or (v) in its jurisdiction
of organization. Each Grantor agrees to promptly provide the Collateral Agent with certified
organizational documents reflecting any of the changes described in the first sentence of this
paragraph. Each Grantor agrees not to effect or permit any change referred to in the preceding
sentence unless all filings have been made under the Uniform Commercial Code or otherwise that are
required in order for the Collateral Agent to continue at all times following such change to have a
valid, legal and perfected first priority security interest in all the Collateral.

(c) Each year, at the time of delivery of annual financial statements with respect to the
preceding fiscal year pursuant to Section 5.01(a) of the Credit Agreement, the Borrower shall
deliver to the Collateral Agent a certificate as required under Section 5.01(c) of the Credit
Agreement.

SECTION 3.09. Further Assurances. Each Grantor agrees, at its own expense, to execute,
acknowledge, deliver and cause to be duly filed all such further instruments and documents and take
all such actions as the Collateral Agent may from time to time reasonably request to better assure,
preserve, protect and perfect the security interest granted hereunder and the rights and remedies
created hereby, including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of security interests hereunder and the
filing of any financing statements or other documents in connection herewith or therewith.

ARTICLE IV

Remedies

SECTION 4.01. Remedies Upon Default. Upon the occurrence and during the continuance of an
Event of Default, each Grantor agrees that the Collateral Agent shall have the right to exercise
any and all rights afforded to a secured party under the Uniform Commercial Code or other
applicable law. Without limiting the generality of the foregoing, each Grantor agrees that the
Collateral Agent shall have the right, subject to the mandatory requirements of applicable law, to
sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at
any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as
the Collateral Agent shall deem appropriate. The Collateral Agent shall be authorized at any such
sale of Pledged Securities or other securities (if it deems it advisable to do so) to restrict the
prospective bidders or purchasers to Persons who will represent and agree that they are purchasing
the Collateral for their own account for investment and not with a view to the distribution or sale
thereof, and upon consummation of any such sale the Collateral Agent shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold. Each
such purchaser at any sale of Collateral shall hold the property sold absolutely, free from any
claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted
by law) all rights of redemption, stay and appraisal which such Grantor now has or may at any time
in the future have under any rule of law or statute now existing or hereafter enacted.

The Collateral Agent shall give the applicable Grantors 10 days’ written notice of the
Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public
sale, shall state the time and place for such sale and, in the case of a sale at a broker’s board
or on a securities exchange, shall state the board or exchange at which such sale is to be made and
the day on which the Collateral, or portion thereof, will first be offered for sale at such board
or exchange. Any such public sale shall be held at such time or times within ordinary business
hours and at such place or places as the Collateral Agent may fix and state in the notice (if any)
of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one
lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute
discretion) determine. The Collateral Agent shall not be obligated to make any sale of any
Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such
Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn
any public or private sale or cause the same to be adjourned from time to time by announcement at
the time and place fixed for sale, and such sale may, without further notice, be made at the time
and place to which the same was so adjourned. In case any sale of all or any part of the
Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the
Collateral Agent until the sale price is paid by the purchaser or purchasers thereof, but the
Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall fail
to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may
be sold again upon like notice. At any public (or, to the extent permitted by law, private) sale
made pursuant to this Agreement, any Secured Party may bid for or purchase, free (to the extent
permitted by law) from any right of redemption, stay, valuation or appraisal on the part of any
Grantor (all said rights being also hereby waived and released to the extent permitted by law), the
Collateral or any part thereof offered for sale and may make payment on account thereof by using
any claim then due and payable to such Secured Party from any Grantor as a credit against the
purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain
and dispose of such property without further accountability to any Grantor therefor. For purposes
hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a
sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement
and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject
thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an
agreement all Events of Default shall have been remedied and the Obligations paid in full. As an
alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may
proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale
pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially
reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

SECTION 4.02. Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection or sale of Collateral, including any Collateral consisting of cash, as follows:

FIRST, to the payment of all costs and expenses incurred by the Collateral Agent in
connection with such collection or sale or otherwise in connection with this Agreement, any
other Loan Document or any of the Obligations, including all court costs and the reasonable
fees and expenses of its agents and legal counsel, the repayment of all advances made by
the Collateral Agent hereunder or under any other Loan Document on behalf of any Grantor
and any other costs or expenses incurred in connection with the exercise of any right or
remedy hereunder or under any other Loan Document;

SECOND, to the payment in full of the Obligations (the amounts so applied to be
distributed among the Secured Parties pro rata in accordance with the amounts of the
Obligations owed to them on the date of any such distribution); and

THIRD, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Collateral Agent or such officer or be answerable in any way for the misapplication
thereof.

SECTION 4.03. Securities Act. In view of the position of the Grantors in relation to the
Collateral, or because of other current or future circumstances, a question may arise under the
Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted
analogous in purpose or effect (such Act and any such similar statute as from time to time in
effect being called the “Federal Securities Laws”) with respect to any disposition of the
Collateral permitted hereunder. Each Grantor understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the
Collateral Agent were to attempt to dispose of all or any part of the Collateral, and might also
limit the extent to which or the manner in which any subsequent transferee of any Collateral could
dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the
Collateral Agent in any attempt to dispose of all or part of the Collateral under applicable Blue
Sky or other state securities laws or similar laws analogous in purpose or effect. Each Grantor
recognizes that in light of such restrictions and limitations the Collateral Agent may, with
respect to any sale of the Collateral, limit the purchasers to those who will agree, among other
things, to acquire such Collateral for their own account, for investment, and not with a view to
the distribution or resale thereof. Each Grantor acknowledges and agrees that in light of such
restrictions and limitations, the Collateral Agent, in its sole and absolute discretion (a) may
proceed to make such a sale whether or not a registration statement for the purpose of registering
such Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) may
approach and negotiate with a single potential purchaser to effect such sale. Each Grantor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to
the seller than if such sale were a public sale without such restrictions. In the event of any
such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any
part of the Collateral at a price that the Collateral Agent, in its sole and absolute discretion,
may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a
substantially higher price might have been realized if the sale were deferred until after
registration as aforesaid or if more than a single purchaser were approached. The provisions of
this Section 4.03 will apply notwithstanding the existence of a public or private market upon which
the quotations or sales prices may exceed substantially the price at which the Collateral Agent
sells.

SECTION 4.04. Registration. Each Grantor agrees that, upon the occurrence and during the
continuance of an Event of Default, if for any reason the Collateral Agent desires to sell any of
the Collateral at a public sale, it will, at any time and from time to time, upon the written
request of the Collateral Agent, use its best efforts to take or to cause the issuer of such
Collateral to take such action and prepare, distribute and/or file such documents, as are required
or advisable in the reasonable opinion of counsel for the Collateral Agent to permit the public
sale of such Collateral. Each Grantor further agrees to indemnify, defend and hold harmless the
Collateral Agent, each other Secured Party, any underwriter and their respective officers,
directors, affiliates and controlling persons from and against all loss, liability, expenses, costs
of counsel (including, without limitation, reasonable fees and expenses to the Collateral Agent of
legal counsel), and claims (including the costs of investigation) that they may incur insofar as
such loss, liability, expense or claim arises out of or is based upon any alleged untrue statement
of a material fact contained in any prospectus (or any amendment or supplement thereto) or in any
notification or offering circular, or arises out of or is based upon any alleged omission to state
a material fact required to be stated therein or necessary to make the statements in any thereof
not misleading, except insofar as the same may have been caused by any untrue statement or omission
based upon information furnished in writing to such Grantor or the issuer of such Collateral by the
Collateral Agent or any other Secured Party expressly for use therein. Each Grantor further
agrees, upon such written request referred to above, to use its best efforts to qualify, file or
register, or cause the issuer of such Collateral to qualify, file or register, any of the
Collateral under the Blue Sky or other securities laws of such states as may be requested by the
Collateral Agent and keep effective, or cause to be kept effective, all such qualifications,
filings or registrations. Each Grantor will bear all costs and expenses of carrying out its
obligations under this Section 4.04. Each Grantor acknowledges that there is no adequate remedy at
law for failure by it to comply with the provisions of this Section 4.04 and that such failure
would not be adequately compensable in damages, and therefore agrees that its agreements contained
in this Section 4.04 may be specifically enforced.

SECTION 4.05. Symbol de Mexico Guarantee. Notwithstanding (a) any provisions to the contrary
contained in this Agreement or (b) any provisions that partially address the terms covered
hereunder, in respect of the obligations and liabilities of Symbol de Mexico hereunder, Symbol de
Mexico waives, to the extent applicable and to the fullest extent permitted by law, any right to
which it may be entitled (i) so that the assets of the Borrower or any other Grantor are first
used, depleted and/or applied in satisfaction of the Borrower’s or any other Grantor’s obligations
before any amounts can be claimed from or paid by Symbol de Mexico, (ii) so that any suit or claim
against the Borrower or any Grantor be initiated, completed or enforced before any action or
proceeding can be initiated against Symbol de Mexico, (iii) so that amounts payable hereunder be
divided among Guarantors or between Guarantors and the Borrower and (iv) to the extent applicable,
the benefits of órden, excusión, division, quita and espera under Articles 2813, 2814, 2815, 2816,
2817, 2818, 2819, 2820, 2821, 2822, 2823, 2826, 2827, 2836, 2837, 2838, 2839, 2840, 2841, 2842,
2845, 2846 and 2848 of Mexico’s Federal Civil Codes and of the Civil Codes of any applicable States
within Mexico.

ARTICLE V

Indemnity, Subrogation and Subordination

SECTION 5.01. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Guarantors may have under applicable law (but subject to Section 5.03), the
Borrower agrees that (a) in the event a payment of an obligation shall be made by any Guarantor
under this Agreement, the Borrower shall indemnify such Guarantor for the full amount of such
payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment
shall have been made to the extent of such payment and (b) in the event any assets of any Grantor
shall be sold pursuant to this Agreement or any other Security Document to satisfy in whole or in
part an obligation owed to any Secured Party, the Borrower shall indemnify such Grantor in an
amount equal to the greater of the book value or the fair market value of the assets so sold.

SECTION 5.02. Contribution and Subrogation. Each Guarantor and Grantor (a “Contributing
Party”) agrees (subject to Section 5.03) that, in the event a payment shall be made by any other
Guarantor hereunder in respect of any Obligation or assets of any other Grantor shall be sold
pursuant to any Security Document to satisfy any Obligation owed to any Secured Party and such
other Guarantor or Grantor (the “Claiming Party”) shall not have been fully indemnified by the
Borrower as provided in Section 5.01, the Contributing Party shall indemnify the Claiming Party in
an amount equal to the amount of such payment or the greater of the book value or the fair market
value of such assets, as the case may be, in each case multiplied by a fraction of which the
numerator shall be the net worth of the Contributing Party on the date hereof and the denominator
shall be the aggregate net worth of all the Guarantors and Grantors on the date hereof (or, in the
case of any Guarantor or Grantor becoming a party hereto pursuant to Section 6.14, the date of the
supplement hereto executed and delivered by such Guarantor or Grantor). Any Contributing Party
making any payment to a Claiming Party pursuant to this Section 5.02 shall be subrogated to the
rights of such Claiming Party under Section 5.01 to the extent of such payment.

SECTION 5.03. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors and Grantors under Sections 5.01 and 5.02 and all other
rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the
part of the Borrower or any Guarantor or Grantor to make the payments required by Sections 5.01 and
5.02 (or any other payments required under applicable law or otherwise) shall in any respect limit
the obligations and liabilities of any Guarantor or Grantor with respect to its obligations
hereunder, and each Guarantor and Grantor shall remain liable for the full amount of the
obligations of such Guarantor or Grantor hereunder.

(b) Each Guarantor and Grantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to any other Guarantor, Grantor or any other Subsidiary shall be fully
subordinated to the indefeasible payment in full in cash of the Obligations.

ARTICLE VI

Miscellaneous

SECTION 6.01. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit
Agreement. All communications and notices hereunder to any Guarantor shall be given to it in care
of the Borrower as provided in Section 9.01 of the Credit Agreement.

SECTION 6.02. Waivers; Amendment. (a) No failure or delay by the Collateral Agent, the
Issuing Banks or any Lender in exercising any right or power hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or power, or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Collateral Agent, the Issuing Banks and the Lenders hereunder and under
the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they
would otherwise have. No waiver of any provision of this Agreement or consent to any departure by
any Loan Party therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section 6.02, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Collateral Agent, any Lender or any Issuing Bank
may have had notice or knowledge of such Default at the time. No notice or demand on any Loan
Party in any case shall entitle any Loan Party to any other or further notice or demand in similar
or other circumstances.

(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the Loan
Party or Loan Parties with respect to which such waiver, amendment or modification is to apply,
subject to any consent required in accordance with Section 9.02 of the Credit Agreement.

SECTION 6.03. Collateral Agent’s Fees and Expenses; Indemnification. (a) The parties hereto
agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred
hereunder as provided in Section 9.03 of the Credit Agreement.

(b) Without limitation of its indemnification obligations under the other Loan Documents, each
Grantor and each Guarantor jointly and severally agree to indemnify the Collateral Agent and the
other Indemnitees (as defined in Section 9.03 of the Credit Agreement) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including the reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result
of, the execution, delivery or performance of this Agreement or any claim, litigation,
investigation or proceeding relating to any of the foregoing agreement or instrument contemplated
hereby, or to the Collateral, whether or not any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the bad faith, gross negligence or wilful
misconduct of such Indemnitee or any of its Related Parties.

(c) Any such amounts payable as provided hereunder shall be additional Obligations secured
hereby and by the other Security Documents. The provisions of this Section 6.03 shall remain
operative and in full force and effect regardless of the termination of this Agreement or any other
Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of
the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or
any other Loan Document, or any investigation made by or on behalf of the Collateral Agent or any
other Secured Party. All amounts due under this Section 6.03 shall be payable on written demand
therefor.

(d) Each Grantor hereby acknowledges the authorization by the Secured Parties under the Credit
Agreement of the Collateral Agent to act as the representative of each Secured Party in connection
with any Foreign Pledge Agreement.

SECTION 6.04. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of such
party; and all covenants, promises and agreements by or on behalf of any Guarantor, Grantor or the
Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.

SECTION 6.05. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Agreement or any other
Loan Document shall be considered to have been relied upon by the Lenders and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any Lender or on its behalf and
notwithstanding that the Collateral Agent, any Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any credit is extended
under the Credit Agreement, and shall continue in full force and effect as long as the principal of
or any accrued interest on any Loan or any fee or any other amount payable under any Loan Document
is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments
have not expired or terminated.

SECTION 6.06. Counterparts; Effectiveness; Several Agreement. This Agreement may be executed
in counterparts, each of which shall constitute an original but all of which when taken together
shall constitute single contract. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed counterpart of this
Agreement. This Agreement shall become effective as to any Loan Party when a counterpart hereof
executed on behalf of such Loan Party shall have been delivered to the Collateral Agent and a
counterpart hereof shall have been executed on behalf of the Collateral Agent, and thereafter shall
be binding upon such Loan Party and the Collateral Agent and their respective permitted successors
and assigns, and shall inure to the benefit of such Loan Party, the Collateral Agent and the other
Secured Parties and their respective successors and assigns, except that no Loan Party shall have
the right to assign or transfer its rights or obligations hereunder or any interest herein or in
the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated
by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate
agreement with respect to each Loan Party and may be amended, modified, supplemented, waived or
released with respect to any Loan Party without the approval of any other Loan Party and without
affecting the obligations of any other Loan Party hereunder.

SECTION 6.07. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The
parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

SECTION 6.08. Right of Set-Off. If an Event of Default shall have occurred and be continuing,
each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by
such Lender or Affiliate to or for the credit or the account of any Guarantor against any of and
all the obligations of such Guarantor now or hereafter existing under this Agreement owed to such
Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section 6.08
are in addition to other rights and remedies (including other rights of set-off) which such Lender
may have.

SECTION 6.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement
shall be construed in accordance with and governed by the law of the State of New York.

(b) Each of the Loan Parties hereby irrevocably and unconditionally submits, for itself and
its property, to the jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, and to the courts of its own corporate domicile, in respect of
actions brought against it as a defendant, in any action or proceeding arising out of or relating
to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New York State or, to
the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the Collateral Agent, any Issuing
Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Document against any Grantor or Guarantor, or its properties in the courts of any
jurisdiction.

(c) Each of the Loan Parties hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
or any other Loan Document in any court referred to in paragraph (b) of this Section 6.09 and
further waives any right to which it may be entitled on account of place of residence or domicile.
Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 6.01. The Borrower hereby consents to its appointment by Symbol de
Mexico as agent to receive service of process to the extent permitted by applicable law on behalf
of Symbol de Mexico in the manner specified in this Agreement for any action or proceeding arising
out of or relating to this Agreement or any other Loan Document, including any action or proceeding
for recognition or enforcement of any judgment relating to the foregoing. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.

SECTION 6.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 6.10.

SECTION 6.11. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

SECTION 6.12. Security Interest Absolute. All rights of the Collateral Agent hereunder, the
grant of security interests in the Collateral and all obligations of each Grantor and Guarantor
hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any
of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any
change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure from the Credit
Agreement, any other Loan Document or any other agreement or instrument, (c) any exchange, release
or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or
consent under or departure from any guarantee, securing or guaranteeing all or any of the
Obligations, or (d) any other circumstance that might otherwise constitute a defense available to,
or a discharge of, any Grantor or Guarantor in respect of the Obligations or this Agreement.

SECTION 6.13. Termination or Release. (a) This Agreement, the Guarantees made herein and the
security interests granted hereby shall terminate when all the Loan Document Obligations have been
indefeasibly paid in full and the Lenders have no further commitment to lend under the Credit
Agreement, the LC Exposure has been reduced to zero and the Issuing Banks have no further
obligations to issue Letters of Credit under the Credit Agreement.

(b) Upon the occurrence of the Collateral Release Event, the Liens on the Collateral will be
released and terminated in accordance with and subject to Section 9.15 of the Credit Agreement.

(c) A Guarantor shall automatically be released from its obligations hereunder and any
security interest granted hereby in the Collateral of such Guarantor shall be automatically
released upon the consummation of any transaction permitted by the Credit Agreement as a result of
which such Guarantor ceases to be a Subsidiary of the Borrower; provided that the Required Lenders
shall have consented to such transaction (to the extent required by the Credit Agreement) and the
terms of such consent do not provide otherwise.

(d) Upon any sale or other transfer by any Grantor of any Collateral that is permitted under
the Credit Agreement, or upon the effectiveness of any written consent to the release of the
security interest granted hereby in any Collateral pursuant to Section 9.02 of the Credit
Agreement, the security interest in such Collateral shall be automatically released.

(e) Upon the effectiveness of this Agreement, (i) the security interests and other liens
granted by Symbol de Mexico, Symbol Technologies Finance, Inc., Telxon System Services, Inc. and
The Retail Technology Group, Inc. in the Existing Collateral Agreement shall be automatically
released and terminated, (ii) the security interests and other liens granted by the Borrower,
@pos.com, Inc., Covigo, Inc., Symbol Technologies International, Inc., Symbolease, Inc., and Telxon
Corporation (collectively, the “Continuing Grantors”) in the Existing Collateral Agreement shall be
automatically released and terminated, except those that are expressly granted by the Continuing
Grantors in this Agreement, which shall, as so granted, continue without prejudice and remain in
full force and effect, (iii) the security interests and other liens granted pursuant to the Mexican
Pledge Agreement (as defined in the Existing Credit Agreement) shall be automatically released and
terminated, (iv) all obligations of Symbol Technologies Finance, Inc., Telxon System Services, Inc.
and The Retail Technology Group, Inc. under the Affiliate Subordination Agreement (as defined in
the Existing Credit Agreement) and the Existing Collateral Agreement shall be released and
discharged, except those that are expressly specified in any such agreement as surviving that
agreement’s termination, which shall, as so specified, survive without prejudice and remain in full
force and effect and (v) all obligations of Symbol de Mexico under the Existing Collateral
Agreement in its capacity as a “Grantor” thereunder shall be released and discharged (it being
agreed, however, that such release and discharge shall not be applicable insofar as obligations of
Symbol de Mexico under the Existing Credit Agreement are undertaken or owed in its capacity as a
“Guarantor” thereunder), except those that are expressly specified in the Existing Collateral
Agreement as surviving its termination, which shall, as so specified, survive without prejudice and
remain in full force and effect.

(f) In connection with any termination or release pursuant to paragraph (a), (b), (c), (d) or
(e) of this Section 6.13, the Collateral Agent shall (i) execute and deliver to the Borrower, at
the Borrower’s expense, all documents that the Borrower shall reasonably request to evidence such
termination or release and (ii) promptly return to the Borrower any stock or other certificates and
other items of collateral in respect of which the security interests have been terminated and
released pursuant to this Section 6.13. Any execution and delivery of documents pursuant to this
Section 6.13 shall be without recourse to or warranty by the Collateral Agent.

SECTION 6.14. Additional Subsidiaries. Pursuant to Section 5.11 of the Credit Agreement, each
Subsidiary of a Loan Party that was not in existence or not a Subsidiary on the date of the Credit
Agreement may be required to enter into this Agreement as a Guarantor and Grantor upon becoming
such a Subsidiary. Upon execution and delivery by the Collateral Agent and a Subsidiary of an
instrument in the form of Exhibit I hereto, such Subsidiary shall become a Guarantor and Grantor
hereunder with the same force and effect as if originally named as a Guarantor and Grantor herein.
The execution and delivery of any such instrument shall not require the consent of any other Loan
Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full
force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement.

SECTION 6.15. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby appoints the
Collateral Agent the attorney-in-fact of such Grantor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument that the Collateral
Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is
irrevocable and coupled with an interest. Without limiting the generality of the foregoing, the
Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event
of Default, with full power of substitution either in the Collateral Agent’s name or in the name of
such Grantor (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks,
drafts, money orders or other evidences of payment relating to the Collateral or any part thereof;
(b) to demand, collect, receive payment of, give receipt for and give discharges and releases of
all or any of the Collateral; (c) to commence and prosecute any and all suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise
realize on all or any of the Collateral or to enforce any rights in respect of any Collateral;
(d) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to
all or any of the Collateral; and (e) to use, sell, assign, transfer, pledge, make any agreement
with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and
things necessary to carry out the purposes of this Agreement, as fully and completely as though the
Collateral Agent were the absolute owner of the Collateral for all purposes; provided that nothing
herein contained shall be construed as requiring or obligating the Collateral Agent to make any
commitment or to make any inquiry as to the nature or sufficiency of any payment received by the
Collateral Agent, or to present or file any claim or notice, or to take any action with respect to
the Collateral or any part thereof or the moneys due or to become due in respect thereof or any
property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable
only for amounts actually received as a result of the exercise of the powers granted to them
herein, and neither they nor their officers, directors, employees or agents shall be responsible to
any Grantor for any act or failure to act hereunder, except for their own bad faith, gross
negligence or wilful misconduct.

SECTION 6.16. Parallel Debt (Covenant to pay the Collateral Agent). (a) Notwithstanding any
other provision of this Agreement and solely for the purpose of ensuring and preserving the
validity and continuity of certain of the Foreign Pledge Agreements and subject as provided below,
each of the Guarantors hereby irrevocably and unconditionally undertakes to pay to the Collateral
Agent, as creditor in its own right and not as representative of the other Secured Parties, sums
equal to and in the currency of each amount payable by such Guarantor (as required by Section
2.17(a) of the Credit Agreement) to each and any of the Secured Parties under any of the Loan
Documents and/or any of the Hedging Agreements and/or for treasury or cash management services
and/or Card Programs as and when that amount falls due for payment under the relevant Loan Document
and/or Hedging Agreement and/or for treasury or cash management service and/or Card Programs as
described above or would have fallen due but for any discharge resulting from failure of another
Secured Party to take appropriate steps, in insolvency proceedings affecting that Guarantor, to
preserve its entitlement to be paid that amount (the “Parallel Debt”).

(b) The Collateral Agent shall have its own independent right to demand payment of the amounts
payable by each Guarantor under this Section 6.16, irrespective of any discharge of such
Guarantor’s obligation to pay those amounts to the other Secured Parties resulting from failure by
them to take appropriate steps, in insolvency proceedings affecting that Guarantor, to preserve
their entitlement to be paid those amounts.

(c) Any amount due and payable by a Guarantor to the Collateral Agent under this Section 6.16
shall be decreased to the extent that the other Secured Parties have received (and are able to
retain) payment in full of the corresponding amount under the other provisions of the Loan
Documents and/or the Hedging Agreements and/or for treasury or cash management services and/or Card
Programs as described in Section 6.16 and any amount due and payable by a Guarantor to the other
Secured Parties under those provisions shall be decreased to the extent that the Collateral Agent
has received (and is able to retain) payment in full of the corresponding amount under this Section
6.16.

(d) The rights of the Secured Parties (other than the Collateral Agent) to receive payment of
amounts payable by each Guarantor under the Loan Documents and/or the Hedging Agreements and/or
treasury or cash for management services and/or Card Programs as described in Section 6.16 are
several and are separate and independent from, and without prejudice to, the rights of the
Collateral Agent to receive payment under this Section 6.16.

3

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	 	 	 
	SYMBOL TECHNOLOGIES, INC.,

	 
	 	 
	by

	 
	 	 
	
 
	 	/s/ James Porretto
	
 
	 	 
	 
	 	 
	
 
	 	Name: James Porretto
	 
	 	 
	
 
	 	Title: Vice President Tax & Treasurer

	 	 	 
	@POS.COM, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	COVIGO, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	SYMBOLEASE, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	SYMBOL TECHNOLOGIES AFRICA, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

4

	 	 	 
	SYMBOL TECHNOLOGIES ASIA, INC.,

	 
	 	 
	by

	 
	 	 
	
 
	 	/s/ James Porretto
	
 
	 	 
	 
	 	 
	
 
	 	Name: James Porretto
	 
	 	 
	
 
	 	Title: Vice President & Treasurer

	 	 	 
	SYMBOL TECHNOLOGIES DELAWARE, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	SYMBOL TECHNOLOGIES INTERNATIONAL, INC.,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	TELXON CORPORATION,
	by
	/s/ James Porretto
	Name: James Porretto
	Title: Vice President & Treasurer

	 	 	 
	SYMBOL DE MEXICO, S. DE R.L. DE C.V.,	 	 	 	 
	by	 	 	 	 
	 	 	/s/ James Porretto	 	 	 	 
	 	 	Name: James Porretto	 	 	 	 
	 	 	Title:	 	 	Vice President & Legal	 	 	Representative

5

	 	 	 
	JPMORGAN CHASE BANK, N.A., AS
COLLATERAL AGENT,

	 
	 	 
	by

	 
	 	 
	
 
	 	/s/ Anne Biancardi
	
 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	
 
	 	Name:
	 
	 	 
	 
	 	 
	 
	 	 
	
 
	 	Title:
	 
	 	 

6EXHIBIT 10.1

    
       

      
        
          

        

      

      
        
           

          Exhibit
            10.1

      

    

    
      

      

      September
        1, 2006

      

      

      Mr.
        John
        T. Kurtzweil

      2109
        Far
        Gallant Drive

      Austin,
        TX  78746 

      

      Dear
        John: 

      

      It
        is my
        pleasure to extend to you an offer of employment with Cree, Inc. at our
        principal offices in Durham, North Carolina.  With your skills,
        qualifications and enthusiasm, we are excited about the prospect of you joining
        the Cree team!  Our offer is as follows:

      

      TITLE:
         You
        will be employed by Cree, Inc. (the “Company”) as its Executive Vice President-
        Finance, Chief Financial Officer, and Treasurer. 

      

      REPORTING
        RELATIONSHIP: 
        You will be reporting directly to Chuck Swoboda in his role as Chief Executive
        Officer (CEO).

      

      COMPENSATION: 
        You will receive an annual base salary of $350,000 to be paid in accordance
        with
        the Company’s standard payroll practices in effect from time to time.  Our
        payroll is currently paid on a bi-weekly basis.  Your base salary will be
        reviewed by the Compensation Committee on an annual basis, beginning September
        2007.

      

      SIGN
        ON BONUS: 
        You will be paid a sign-on bonus of $62,000 within sixty (60) days following
        your start date.  If you voluntarily resign or your employment is
        terminated for cause within twelve (12) months of your start date, you will
        be
        obligated to repay the Company the amount you received on account of the
        sign-on
        bonus, less one-twelfth of such amount for each full month of employment
        that
        you have completed.  If repayment is necessary, your total earnings for the
        year will be adjusted to reflect the forfeiture of part or all of the sign-on
        bonus, as applicable, after receipt of the amount due.

      

      MANAGEMENT
        INCENTIVE COMPENSATION PLAN: 
        You will be eligible to participate in the Company’s Management Incentive
        Compensation Program (MICP) with an annual target award level of 50% of your
        base salary.  The actual amount of the MICP incentive payment will be
        determined based on meeting objectives tied to quarterly (weighted at 40%)
        and
        annual (weighted at 60%) performance goals set in accordance with the plan
        document.  Your performance measurement against individual goals during the
        first four fiscal quarters of participation (Q2FY07 through Q1FY08) will
        be
        deemed to be 100%, without regard to actual results.  Your award amount for
        such quarters will otherwise be determined in accordance with the terms of
        the
        plan document.  You will begin participating in the MICP on the later of
        your actual start date or the first day of the second quarter of Cree’s 2007
        fiscal year, with prorated 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      eligibility
        for all award periods during which you are not employed for the entire award
        period.  Your participation in the MICP is subject to review and approval
        of the Compensation Committee annually.

      

      START
        DATE: 
        Your start date will be September 29, 2006, or such other date as agreed
        by you
        and the CEO.

      

      EQUITY
        PROGRAM: 
        You will be eligible to receive long-term incentive awards from time to time
        subject to terms and conditions established by the Compensation Committee,
        the
        underlying long-term incentive plan document, and the Company’s terms and
        conditions for the applicable type of award, including vesting criteria such
        as
        continued service or performance objectives.  Initially, you will be
        granted an option to purchase 70,000 shares of the Company’s common stock at a
        purchase price equal to the fair market value on the grant date, determined
        as
        the last sale price reported for the regular trading session on the Nasdaq
        Stock
        Market on the grant date (or, if the grant date is not a trading day, the
        last
        day of regular trading preceding the grant date).  You will also be granted
        20,000 shares of restricted stock. Both the option grant and the restricted
        stock award will be made pursuant to the Company’s 2004 Long-Term Incentive
        Compensation Plan (the “Plan”).  The grant date for both awards will be the
        first business day of the calendar month following the first day of your
        employment.  The option will be a nonqualified stock option and will vest
        over a three-year period in equal installments on each anniversary of the
        grant
        date so long as you remain employed with the Company or a related Employer
        under
        the Plan.  The restricted stock award will vest over a five-year period in
        equal installments beginning on September 1, 2007 and on each anniversary
        of
        such date so long as you remain employed with the Company or a related Employer
        under the Plan.  The option will be subject to the provisions of the Plan
        and the Cree, Inc. Master Stock Option Award Agreement to be entered into
        by you
        and the Company.  The restricted stock award will be subject to the
        provisions of the Plan and the Cree, Inc. Master Restricted Stock Award
        Agreement to be entered into by you and the Company.  Copies of these
        agreements have been provided to you under separate cover. 

      

      BENEFITS: 
        You will be eligible to participate in all benefit plans offered to Company
        employees generally, subject to applicable service periods and other terms
        of
        the governing plan documents. A summary of these benefits has been sent to
        you
        under separate cover.

      

      RELOCATION: 
        The Company will provide you with temporary housing, for up to one year from
        your start date, in the vicinity of Research Triangle Park, North Carolina
        until
        you are able to make permanent housing arrangements.  The Company will
        reimburse you for seller brokerage fees in connection with the sale of your
        primary residence in Austin, Texas, upon receipt of appropriate documentation
        and subject to applicable withholding taxes.  The Company will also pay or
        reimburse the actual and reasonable costs of moving you, your family, and
        household belongings from your current residence in Austin, Texas to the
        Research Triangle Park area, for expenses incurred within one year from your
        start date, in accordance with the terms of our Relocation Policy for New
        Hires,
        a copy of which has been provided to you under separate cover.  In
        addition, until the first anniversary of your start date or until your family's
        residence has been moved to North Carolina, whichever occurs first, the Company
        will reimburse you for the cost of round-trip, coach-fare airline tickets
        for up
        to one trip to Austin, 

       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

       

      Texas
        every other week.  Reimbursement amounts will be paid promptly following
        submission of appropriate documentation evidencing payment, and will be subject
        to applicable withholding taxes. 

      

      PAID
        TIME OFF: 
        Initially, you will be eligible to accrue paid-time off (i.e., vacation)
        at the
        rate of three weeks annually, and your accrual rate will increase for each
        year
        of employment in accordance with the Company’s paid-time off policy.

      

      CONFIDENTIALITY,
        INTELLECTUAL PROPERTY AND NON-COMPETITION AGREEMENT: 
        You will be required to sign the Company’s standard form of Employee Agreement
        Concerning Confidential Information, Intellectual Property and Non-Competition
        (“Employee Agreement”) on or before your first day of employment.  A copy
        of this agreement has been provided to you under separate cover.  This
        agreement obligates you, among other things, not to disclose confidential
        information of the Company without authorization, to assign to the Company
        rights in inventions or other intellectual property developed in the course
        of
        your employment, and not to engage in competition with the Company for a
        period
        of one year following any termination of your employment.  Neither this
        letter nor the Employee Agreement, however, constitutes a commitment by the
        Company to employ you for any specific term. Either you or the Company may
        terminate the employment relationship at any time, with or without cause
        or
        notice.

      

      SEVERANCE
        AGREEMENT:  Concurrently
        with the commencement of your employment, you and the Company will enter
        into a
        Severance Agreement, a copy of which is enclosed. Pursuant to this agreement,
        in
        the event that the Company terminates your employment without “Cause” or you
        resign for “Good Reason” within twelve (12) months after a “Change in Control”
(as such terms are defined in the Severance Agreement), you will receive:
        (i)
        continued payment of your base salary for twelve (12) months following your
        termination, (ii) accelerated vesting of all unvested equity awards, if any,
        and
        (iii) reimbursement of COBRA premiums paid by you to continue coverage under
        the
        Company’s medical plans for you and your eligible dependents for up to twelve
        (12) months following your termination, provided you elect to continue medical
        coverage in accordance with applicable law.  In addition, in the event that
        the Company terminates your employment without “Cause” or you resign for “Good
        Reason” in any other circumstance, you will receive: (i) continued payment of
        your base salary for twelve (12) months following your termination, and (ii)
        reimbursement of COBRA premiums paid by you to continue coverage under the
        Company’s medical plans for you and your eligible dependents for up to twelve
        (12) months following your termination, provided you elect to continue medical
        coverage in accordance with applicable law.  These severance payments,
        continued benefits, and accelerated vesting will be subject to applicable
        tax
        withholding and to (i) your signing and not revoking a separation agreement
        and
        release of claims in a mutually agreed form, and (ii) your signing and
        continuing to comply with non-compete, non-solicitation, and non-disparagement
        obligations during the twelve (12) months following termination of your
        employment.  In the event of inconsistency between the foregoing summary
        and the terms and conditions of the Severance Agreement, the Severance Agreement
        shall control.

      

      CODES
        OF CONDUCT AND ETHICS: 
At
        all times, you will be expected to observe the highest standards of ethical,
        personal, and professional conduct and to comply with the

       

      
        
          
          

        

        
          -
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            -

          
            

          

        

        
          
          

        

      

       

      Company’s
        Code of Conduct and the Code of Ethics for Senior Financial Officers, copies
        of
        which have been provided to you.  You will be required to sign a
        Certificate of Acknowledgment annually regarding the Code of Conduct and
        the
        Code of Ethics for Senior Financial Officers. 

      

      ABSENCE
        OF CONFLICTING OBLIGATIONS:  By
        accepting this offer, you are representing and promising to the Company that
        your employment with the Company will not breach any obligation you have
        to any
        prior employer or to another third party, whether pursuant to a non-competition
        or other agreement or applicable law.

      

      CONDITIONS
        PRECEDENT: 
As
        a condition of employment, you must also successfully complete a pre-employment
        drug screen in accordance with the Company’s policy.  In addition, on your
        first day of employment you will also be required to produce two forms of
        identification; one establishing your identity and one establishing your
        employment eligibility, as listed by the U.S. Department of Justice on its
        Employee Eligibility Verification Form.

      

      If
        these
        employment terms are satisfactory to you, please indicate your acceptance
        by
        signing below and returning one copy of the signed offer letter to me.

      

      John,
        we
        are looking forward to working with you and are confident that your skills
        and
        experience will make a significant contribution to Cree’s growth.

      

      Sincerely,

      

      /s/
        Brenda F. Castonguay

      

      Brenda
        F.
        Castonguay

      Vice-President,
        Human Resources

      

      

      

      

      

      AGREED
        TO
        BY:    /s/
        John T. Kurtzweil             
        9/1/06    

         
        John
        T.
        Kurtzweil                 Date

       

      

      

      
        
          
            

          

          
          

        

        
          -
            4
            -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]