INTERMEC, INC. 2002 DIRECTOR STOCK OPTION AND FEE PLAN As Amended Effective January 1, 2007

(b)           Share Election. Each Director may make an annual election (the “Share Election”) to receive in the form of Common Stock (subject to a Deferral Election) all of his or her Meeting Fees earned in each calendar year. The shares of Common Stock (and cash in lieu of fractional shares) issuable pursuant to a Share Election shall be issued quarterly in accordance with Section 5(c) hereof. The Share Election must be in writing and delivered to the Secretary of the Company on or prior to December 31 of the calendar year preceding the calendar year in which the applicable Meeting Fees are to be earned; provided, however, that any Director who commences service on the Board on or subsequent to January 1 of a calendar year may make a Share Election during the thirty-day period immediately following the commencement of his or her directorship. A Share Election, once made, shall be irrevocable for the calendar year with respect to which it is made and shall remain in effect for future calendar years unless revoked in writing or modified by a subsequent Share Election with respect to future calendar years on or prior to December 31 of the calendar year preceding the calendar year in which such revocation shall take effect and in accordance with the provisions hereof.

(c)           Issuance of Shares.  Shares of Common Stock issuable to a Director pursuant to Sections 5(a) and 5(b) shall be issued to such Director on the first business day following the end of each calendar quarter. The total number of shares of Common Stock to be so issued shall be determined by dividing (x) the dollar amount of the Director’s Retainer Fees for the preceding calendar quarter and any Meeting Fees for the preceding calendar quarter to which a Share Election applies, by (y) the Average Quarterly Price for the preceding quarter. In no event shall the Company be required to issue fractional shares. In the event that a fractional share of Common Stock would otherwise be required to be issued, an amount in lieu thereof shall be paid in cash based upon the Fair Market Value of such fractional share on the last business day of the preceding calendar quarter.

6.     Terms and Conditions of Deferral Elections.

(a)            In General.  Each Director may irrevocably elect annually to defer receiving all or a

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portion of (i) the shares of Common Stock that would otherwise be issued in connection with such Director’s Retainer Fees in respect of a calendar year, (ii) the shares of Common Stock that would otherwise be issued upon a Share Election, or (iii) such Director’s Meeting Fees in respect of a calendar year that are not subject to a Share Election (a “Deferral Election”). A Director who has made a Deferral Election with respect to shares of Common Stock shall have the number of shares of Common Stock that are the subject of the Deferral Election credited to a Share Account in the form of Share Units. A Director who has made a Deferral Election with respect to Meeting Fees that are not subject to a Share Election shall have the amount of deferred fees credited to a Cash Account.

(b)           Timing of Deferral Election.  The Deferral Election shall be in writing and delivered to the Secretary of the Company on or prior to December 31 of the calendar year preceding the calendar year in which the applicable Fees are to be earned; provided, however, that a Director who commences service on the Board on or subsequent to January 1 of a calendar year may make a prospective Deferral Election during the thirty-day period immediately following the commencement of his or her directorship, and, accordingly, such Deferral Election shall apply only with respect to compensation paid for services to be performed subsequent to the Deferral Election. A Deferral Election, once made, shall be irrevocable for the calendar year with respect to which it is made and shall remain in effect for future calendar years unless revoked or modified by a subsequent Deferral Election with respect to future calendar years on or prior to December 31 of the calendar year preceding the calendar year in which such revocation shall take effect and in accordance with the provisions hereof.  No subsequent Deferral Election may be made with respect to Fees earned during the current calendar year or prior calendar years.

(c)            Share Accounts.  Each Share Account shall be deemed to be invested in shares of Common Stock. Whenever regular cash dividends are paid by the Company on outstanding Common Stock, there shall be credited to the Director’s Share Account additional Share Units equal to (i) the aggregate dividend that would be payable on outstanding shares of Common Stock equal to the number of Share Units in such Share Account on the record date for the dividend, divided by (ii) the Fair Market Value of the Common Stock on the payment date of the dividend.

(d)            Cash Accounts.  Each Director’s Cash Account shall be credited with interest on the last day of each calendar quarter calculated on the basis of the average daily balance in the Cash Account during the calendar quarter. The interest rate for any calendar quarter shall be the prime rate of interest as reported in the Wall Street Journal as the prevailing prime rate of interest on the first business day of the calendar quarter.

(e)            Commencement of Payment.  Except as otherwise provided in Section 6(g) hereof, a Director’s Deferred Amounts shall become payable in the January following the year in which the Director terminates service as a Director. Payments from a Share Account shall be made by converting Share Units into Common Stock on a one-for-one basis, with payment of fractional shares to be made in cash based upon the Fair Market Value of such fractional share on the last business day of the preceding calendar quarter.

(f)            Timing of Payments.  Subject to Section 6(g) hereof, each Director shall elect in his or her Deferral Election to receive payment of his or her Deferred Amounts either in a lump sum or in two to fifteen substantially equal annual installments.

(g)           Distributions Upon Death, Disability or Unforeseeable Emergency.  In the event of a Director’s death, payment of the remaining portion of the Director’s Deferred Amounts will be made to the Director’s beneficiary (or, if no beneficiary has been designated, to the Director’s

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estate or other legal representative) in the same form as the Director has elected; provided, however, that if permitted under the Code and the rules and regulations promulgated thereunder, such payment of the remaining portion of the Director’s Deferred Amounts will be made to the Director’s beneficiary (or, if no beneficiary has been designated, to the Director’s estate or other legal representative) in a lump sum as soon as practicable following the Director’s death. Notwithstanding any Deferral Election, in the event of disability (as defined in Section 409A(a)(2)(C) of the Code) or severe financial hardship to a Director resulting from an illness or accident of the Director, the Director’s spouse or a dependent (as defined in Section 152(a) of the Code) of the Director, loss of the Director’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Director, a Director may, by providing written notice to the Secretary of the Company, withdraw any portion of the Share Units in his or her Share Account (in an equivalent number of shares of Common Stock) and/or cash in his or her Cash Account, provided that, as determined under regulations of the Secretary of the Treasury, the amounts distributed with respect to an emergency do not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).

(h)           No Account Transfers.  A Director may not transfer or convert a Share Account to a Cash Account, or vice versa.

(i)            Status of Accounts.  The Share and Cash Accounts shall not be funded, and all Deferred Amounts shall be held in the general assets of the Company and be subject to the general creditors of the Company.

7.     Annual Grants of Stock Options.

(a)            Annual Grants.  Commencing in 2005, Options to purchase 10,000 shares of Common Stock shall be granted to each Director automatically on the first business day of January in each year.  Any person who becomes a Director at any other time of the year shall receive a pro-rata portion of the Annual Grant, based upon the time remaining in such year, such grant to be effective on the date he or she becomes a Director. The Board shall have the right to increase or decrease the number of shares of Common Stock subject to the Annual Grant as the Board may determine is necessary or appropriate to attract and retain persons to serve as members of the Board, it being understood that all such grants and changes in the number of options granted shall comply with Section 16 of the Exchange Act and the rules promulgated thereunder and the Code.

(b)            Option Price Per Share.  Options granted pursuant to this Section 7 shall be exercisable at a price per share equal to the Fair Market Value of the Common Stock on the date of the grant of the Option.

(c)            Period of Option.  (i)  Options granted on the first business day of January pursuant to this Section 7 shall vest  and become exercisable in four equal installments (subject to adjustment for fractional shares) on the first business day of each fiscal quarter of the Company, beginning on the date of grant, and shall remain exercisable until the tenth anniversary of the date of grant, at which time it shall expire.  (ii) Options granted on a day other than the first business day of January pursuant to this Section 7 shall vest and become exercisable in equal installments (subject to adjustment for fractional shares) on the date of grant and the first business day of each fiscal quarter of the Company remaining in the year of grant, and shall remain exercisable until the tenth

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anniversary of the date of grant, at which time it shall expire.

(d)            Exercise of Options.  Options may be exercised only by written notice to the Company at its corporate office accompanied by payment of the full consideration for the shares as to which they are exercised. The purchase price is to be paid in full to the Company upon the exercise of the option (i) by cash, including a personal check payable to the order of the Company, or (ii) by delivering Common Stock already owned by the optionee for a period of at least six months (valued at Fair Market Value as of the date of delivery), or (iii) any combination of cash and Common Stock so valued.

(e)            Nonstatutory Options.  No option granted hereunder shall constitute an “incentive stock option” as that term is defined in the Code.

8.     Modification, Extension, and Renewal of Options.  The Board shall have the power to modify, extend, or renew outstanding options and authorize the grant of new options in substitution therefor, provided that such power may not be exercised in a manner which would (i) alter or impair any rights or obligations of any option previously granted without the written consent of the optionee, (ii) adversely affect the qualification of the Plan or any other stock-related plan of the Company under Rule 16b-3 under the Exchange Act, (iii) lower the exercise price of existing options, (iv) substitute new options for previously granted options having a higher exercise price, or (v) cause an option to become subject to Section 409A of the Code.

9.     Limitation of Rights.

(a)            No Right to Continue as a Director.  Neither the Plan, nor the granting of an option or the making of a Share Election or Deferral Election, or any other action taken pursuant to the Plan, shall constitute or be evidence of any agreement or understanding, express or implied, that the Company will retain a Director for any period of time, or at any particular rate of compensation.

(b)            No Shareholder’s Rights.  An optionee or a Director who has made a Share Election or Deferral Election (or his or her representative) shall have no rights as a shareholder with respect to the shares covered by his or her Options or Share Election or to any Share Units with respect to a Deferral Election until the date of the actual issuance to him or her (or such representative) of shares of Common Stock (either through the Company’s Direct Registration System or by certification) and, subject to Sections 6(c) and 10 hereof, no adjustment will be made for dividends or other rights for which the record date is prior to the date such shares are issued.

10.  Effect of Certain Changes in Capitalization.  In the event of any change in corporate capitalization (such as a stock split), any corporate transaction (such as any merger, consolidation or separation (including a spinoff)), any other distribution of stock or property of the Company, any reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, the Board shall equitably adjust the Share Account to reflect any such transaction and shall make such substitution or adjustments in the aggregate number and kind of shares reserved for issuance under the Plan, in the number, kind and option price of shares subject to outstanding Options, in the number and kind of shares subject to Annual Grants pursuant to Section 7 and/or such other equitable substitution or adjustments in the terms of Options as it may determine to be appropriate in its sole discretion; provided, however, that the number of shares subject to any Option shall always be a whole number.

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11.  Change in Control.

(a)            Definition.  For purposes of the Plan, a “Change in Control” shall mean a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company as provided in Section 409A(2)(A)(v) of the Code and the regulations thereunder and interpretations thereof, as the same may be applicable from time to time.

(b)            Consequences of Change in Control.   Notwithstanding anything in the Plan to the contrary, upon the occurrence of a Change in Control:

(i)  all Share Units credited to a Share Account shall be converted into Common Stock and together with all Deferred Amounts credited to a Cash Account shall be transferred as soon as practicable to each Director;

(ii)  Fees earned in respect of the calendar quarter in which the Change in Control occurs shall be paid in cash as soon as practicable; and

(iii)  all Options shall immediately vest and become exercisable in full.

(c)           Definition Modified to Extent Required by Section 409A of the Code.  Notwithstanding the foregoing, to the extent necessary to comply with Section 409A of the Code, in the case of any payment hereunder that in the determination of the Company would be considered “nonqualified deferred compensation” subject to Section 409A and as to which, in the determination of the Company, the requirements of Section 409A(a)(2)(A)(v) of the Code would apply, an event or occurrence described above shall be considered a “Change of Control” only if it also constitutes a change of ownership or effective control of the Company, or a change in ownership of the Company’s assets, described in Section 409A(a)(2)(A)(v) of the Code.

12.  Term of Plan.  This Plan shall be effective as of the Effective Date, subject to approval of the Plan by the shareholders of the Company at the first annual meeting of shareholders after the Effective Date. The Plan shall terminate on December 31, 2011, unless earlier terminated by the Board. Notwithstanding the Plan’s termination, amounts shall be delivered pursuant to any Deferral Election made prior to the Plan’s termination in accordance with such election. Options may be granted under the Plan at any time prior to the termination of the Plan. Deferral Elections and Share Elections may not be made for any Fees which would be paid following the date of the termination of the Plan. If the shareholders of the Company do not approve this Plan, then this Plan shall be void, all Share Elections and Deferral Elections made with respect to this Plan shall be deemed to be Share Elections and Deferral Elections under the 1997 Plan, and all shares of Common Stock issued, Share Units credited to a Director’s Share Account, and Fees credited to a Director’s Cash Account under this Plan shall be deemed to have been issued and credited under the 1997 Plan.

13.  Amendment; Termination.  The Board may at any time and from time to time alter, amend, suspend, or terminate the Plan in whole or in part; provided, however, that no amendment which is required by any regulation, law or stock exchange rule to be approved by shareholders shall be effective unless it is approved by the shareholders of the Company entitled to vote thereon. Notwithstanding the foregoing, no amendment shall affect adversely any of the rights of any Director, under any option or under any election theretofore in effect under the Plan, or with respect to Deferred Amounts, without such Director’s consent.

14.  Nontransferability.  No Option, or right or interest of any Director in Deferred Amounts, shall be transferable by a Director other than (i) by will or by the laws of descent and distribution,

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(ii) pursuant to a qualified domestic relations order (as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended), or (iii) in the case of an Option, as otherwise expressly permitted under the applicable option agreement including, if so permitted, pursuant to a gift to such optionee’s family, whether directly or indirectly or by means of a trust or partnership or otherwise. All Options or rights with respect to Deferred Amounts shall be exercisable, during the Director’s lifetime, only by the Director or by the guardian or legal representative of the Director or an alternate payee pursuant to a qualified domestic relations order or, in the case of an Option, by any person to whom such Option is transferred pursuant to the preceding sentence. Under the Plan, it is understood that the term “optionee” includes the guardian and legal representative of the Director named in the option agreement and any person to whom an Option is transferred by will or the laws of descent and distribution, pursuant to a qualified domestic relations order or as otherwise described above.

15.  Beneficiaries.  The Board shall establish such procedures as it deems appropriate for a Director to designate a beneficiary to whom any amounts payable in the event of a Director’s death are to be paid or by whom any Options held by a Director may be exercised following his or her death. Directors shall make a beneficiary election with respect to Deferred Amounts at the same time that a Deferral Election is made.

16.  Compliance with Law, Etc.   Notwithstanding any other provision of the Plan or agreements made pursuant hereto, the Company shall not be required to issue or deliver any certificate or certificates for shares of Common Stock under the Plan prior to fulfillment of all of the following conditions:

(a)  the listing, or approval for listing upon notice of issuance, of such shares on the New York Stock Exchange or such other securities exchange or NASDAQ as may at the time be the principal market for Common Stock;

(b)  any registration or other qualification of such shares of the Company under any state or federal law or regulation, or the maintaining in effect of any such registration or other qualification which the Board shall, in its absolute discretion upon the advice of counsel, deem necessary or advisable; and

(c)  the obtaining of any other consent, approval, or permit from any state or federal governmental agency, which the Board shall, in its absolute discretion after receiving the advice of counsel, determine to be necessary or advisable.

17.  Notice.  Any written notice to the Company required by any of the provisions of the Plan shall be addressed to the Secretary of the Company and shall become effective when it is received.

18.  Governing Law.  The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware, without reference to principles of conflict of laws, and shall be construed accordingly.

19.  Headings.  The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan.

20.  Termination of the 1997 Plan.  If the shareholders of the Company approve this Plan as provided in Section 12 hereof, the 1997 Plan shall terminate in accordance with Section 12 thereof as of the date of such approval. In that case, Share Accounts and Cash Accounts maintained under the 1997 Plan shall be converted to and maintained as Share Accounts and Cash Accounts under this Plan. If the shareholders of the Company do not approve this Plan, then the 1997 Plan shall continue in full force and effect until terminated in accordance with the provisions thereof, all grants of options made pursuant to

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Sections 5(d) and 5(e) shall be null and void, and all Share Elections and Deferral Elections made under this Plan shall be deemed to have been made under the 1997 Plan.

21.  Savings Clause.  This Plan is intended to comply in all respects with Section 409A of the Code and the rules and regulations promulgated thereunder. In the event that any provision of this Plan would result in Adverse Tax Consequences or similar adverse tax consequences to the Company or any Director, such provision shall without further action by the Board be modified, restricted or nullified, as appropriate to avoid such adverse tax consequences.  In addition, if the time or form of any payment election is made in accordance with this Plan, but in violation of Section 409A of the Code, then such payment election shall be null and void, and all amounts deferred shall be paid or payments thereof shall commence on the earliest date permitted in accordance with Section 409A of the Code without the imposition of any Adverse Tax Consequences under Section 409A or other adverse tax consequences to the Director and the Company.

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