8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 22, 2006

Symbol Technologies, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	1-9802	112308681
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
One Symbol Plaza, Holtsville, New York		11742
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (631) 738-2400

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

On February 22, 2006, Symbol Technologies, Inc. (the "Company") entered into a separation agreement with Todd G. Hewlin (the "Hewlin Separation Agreement") in connection with his resignation as the Company's Senior Vice President--Corporate Development.

Pursuant to the Hewlin Separation Agreement, Mr. Hewlin's resignation from the position of Senior Vice President--Corporate Development of the Company was effective as of February 22, 2006. The Hewlin Separation Agreement provides that Mr. Hewlin will receive the payments pursuant to the Retention Agreement entered into between Mr. Hewlin and the Company dated August 22, 2005, a form of which is filed as Exhibit 10.2 to the Company's Current Report on Form 8-K dated August 26, 2005 (the "Retention Agreement"), including a lump sum amount on or before March 15, 2006 of $717,518 (less applicable taxes), which is equal to Mr. Hewlin's annual base salary and target annual bonus in effect as of January 1, 2006. Additionally, as contemplated by his Retent ion Agreement and the Hewlin Separation Agreement, as of March 1, 2006, 78,750 shares of Mr. Hewlin's restricted stock shall become fully vested and all restrictions with respect to such shares of restricted stock shall lapse. Under the Hewlin Separation Agreement, during the period of March 1, 2006 through August 31, 2006, Mr. Hewlin will remain an "on call" employee of the Company and will be paid $20,000 per month. The Company will continue to pay the lease and insurance costs for his Company provided automobile through the end of the on call period. During the on call period, Mr. Hewlin will be eligible to continue to participate in the Company's group health insurance plan at the current employee contribution rates. Additionally, the Hewlin Separation Agreement provides that from September 1, 2006 through February 28, 2007, the Company will pay Mr. Hewlin's group health insurance plan COBRA premiums on behalf of Mr. Hewlin and his dependents. In the event that the Company's payment of such COBRA be nefits is taxable to Mr. Hewlin, there will be a tax gross up to cover such amount. Mr. Hewlin will also receive payment for all accrued and unused vacation (as of February 28, 2006) on or before August 31, 2006. Pursuant to the Hewlin Separation Agreement, Mr. Hewlin's unvested stock options will continue to vest during the on call period and he will be eligible to exercise any vested stock options through August 31, 2006. The Hewlin Separation Agreement provides for a general release by Mr. Hewlin against the Company and subjects Mr. Hewlin to certain non-competition and non-solicitation requirements. This foregoing summary is qualified in its entirety by the terms of the Hewlin Separation Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.


On February 28, 2006, the Company entered into a separation agreement with John G. Bruno (the "Bruno Separation Agreement") in connection with his resignation as the Company's Senior Vice President--General Manager, R FID Division.

Pursuant to the Bruno Separation Agreement, Mr. Bruno's resignation from the position of Senior Vice President--GM, RFID Division of the Company was effective as of February 22, 2006. The Bruno Separation Agreement provides that Mr. Bruno will receive the payments pursuant to the Retention Agreement entered into between Mr. Bruno and the Company dated August 22, 2005, a form of which is filed as Exhibit 10.2 to the Company's Current Report on Form 8-K dated August 26, 2005 (the "Retention Agreement"), including a lump sum amount on or before May 25, 2006 of $717,518 (less applicable taxes), which is equal to Mr. Bruno's annual base salary and target annual bonus in effect as of January 1, 2006. Additionally, as contemplated by his Retention Agreement and the Bruno Separation Agreement, within 10 days following May 15, 2006, 78,750 shares of Mr. Bruno's restricted stock shall become fully vested and all restrictions with respect to such shares of restricted stock shall lapse. Under th e Bruno Separation Agreement, during the period of March 1, 2006 through May 15, 2006, Mr. Bruno will remain an "on call" employee of the Company and will be paid his current base salary and Company car allowance. During the on call period, Mr. Bruno will be eligible to continue to participate in the Company's group health insurance plan at the current employee contribution rates. Mr. Bruno will also receive payment for all accrued and unused vacation (as of February 28, 2006) on or before May 25, 2006. Additionally, Mr. Bruno's unvested stock options will continue to vest through the on call period and he will be eligible to exercise any vested stock options through May 15, 2006. The Bruno Separation Agreement provides for a general release by Mr. Bruno against the Company and subjects Mr. Bruno to certain non-competition and non-solicitation requirements. This foregoing summary is qualified in its entirety by the terms of the Bruno Separation Agreement, which is attached hereto as Exhibit 10.2 and inc orporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Exhibit No. Document Description

10.1 Hewlin Separation Agreement, effective as of February 22, 2006

10.2 Bruno Separation Agreement, effective as of February 22, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Symbol Technologies, Inc.
February 28, 2006	By:	Salvatore Iannuzzi
		Name: Salvatore Iannuzzi
		Title: President and Chief Executive Officer

Exhibit Index

Exhibit No.	Description
10.1	Hewlin Separation Agreement
10.2	Bruno Separation Agreement

EX-10.1

EXHIBIT 10.1

February 21, 2006

Todd Hewlin

[OMITTED]

[OMITTED]

Re:  Separation of Employment

Dear Todd:

This letter sets forth the terms and conditions relative to your separation from your employment with Symbol Technologies, Inc, including its subsidiaries and affiliated corporations, and their respective current and former directors, officers, employees, agents and assigns (“Symbol” or “the Company”).

Your resignation from Symbol’s employ will be effective August 31, 2006 (the “Termination Date”). However, your status as an Executive Officer of the Company will terminate effective February 22, 2006. Provided you execute and return this Agreement to the Company on or before the close of business on March 4, 2006,  the Company will provide you with the following:

1.During the period from the date of this Agreement through February 28, 2006, you will continue as a regular Associate of the Company with your normal employee benefits continuing, except that you will not be eligible for any bonus for calendar year 2006.

2.Beginning on March 1, 2006, and continuing through August 31, 2006 (the “on-call period”), you will be paid a salary at the rate of $20,000 per month, payable in installments coincident with the Company’s normal payroll cycles, less applicable taxes and all other deductions as may be required by law or which have been previously authorized.  During this period, you will be considered an “on call” employee, and you agree to make yourself  available for telephone and in person consultations with Company officials as required, although you will not be reporting to the Company’s offices except as directed.  You agree to diligently perform all of your duties and responsibilities and to continue to serve the Company in a fully professional and competent manner as required.

During the on-call period, you will not be eligible to participate in any of the Company’s employee benefit plans, except that your coverage in the Company’s group health insurance plan  (medical and dental only) will continue at normal contribution rates for yourself and your eligible dependents.  For the first six (6) months, after your Termination Date, the Company will pay your COBRA premiums for yourself and your eligible dependents. As provided in the letter agreement dated May 29, 2003, between you and the Company, if the Company’s payment of such COBRA benefits is taxable to you, there will be a tax gross-up to cover such amount. After this six (6) month period, should you not be covered under another group health plan, the Company will offer you the opportunity to continue as a member of its group health plan for up to an additional twelve (12) months, in accordance with applicable federal law.  In addition, during the on-call period, any deferral election you have made under the Company’s deferred compensation plan will continue in effect.

During the on-call period, you will not accrue any vacation, will not be eligible to participate in the Company’s 401k plan (and thus not be eligible for any matching contributions, except matching contributions for calendar year 2005 will be paid), will not be covered by the Company’s life insurance and disability benefit plans, and you will not be eligible to participate in the Company’s bonus plan or receive any Company contributions under any deferred compensation program. However, your unvested stock options will continue to vest during the on-call period and you will be eligible to exercise your vested options through and including your Termination Date. You will also be able to use your Company provided automobile during the on-call period, with the Company paying the lease and insurance costs, but you will be responsible for all other expenses in connection with the use of this vehicle. After the Termination Date, you will be entitled to receive distribution of your vested benefits under the Company’s 401(k) and the Deferred Compensation Plans in accordance with the terms of the applicable Plan documents, except that Deferred Compensation Plan benefits will not be paid prior to 6 months after the Termination Date to the extent required by Section 409A of the Internal Revenue Code.

In addition to the above, any payments and benefits to which you are entitled pursuant to the Retention Agreement between you and the Company dated August 22, 2005 (the “Retention Agreement”), will be paid to you prior to March 15, 2006. You have previously received the Retention Payment and the vesting of the Tranche A Award under your LTIP Restricted Stock Agreement. On or before March 15, 2006, the Company will pay you a lump sum amount equal to your annual base salary as in effect as of January 1, 2006, and your target- level annual bonus amount, less applicable taxes and any other required deductions.

Pursuant to the Retention Agreement, as of March 1, 2006, any and all unvested shares of LTIP Restricted Stock held by you shall become fully vested and all restrictions with respect to such shares of LTIP Restricted Stock shall lapse.   

In exchange for the Company providing you with the aforementioned  payments, and the other benefits set forth above, which you acknowledge represents good, valuable and sufficient consideration to support your execution of this Agreement,  you hereby waive all claims against the Company and unconditionally and irrevocably release and discharge the Company from liability for any claims or damages that you have or may have against it, its current and former directors, officers, employees, agents and assigns up to the moment that this Agreement becomes fully executed, regardless of whether those claims are known or unknown including, but not limited to, any claims for wages, severance (except as specifically provided for herein), bonuses or benefits (except as specifically provided for herein), or any other claims whatsoever arising during or, in whole or in part, out of your employment relationship with the Company, or violations of an federal, state or local fair employment statute, executive order, ordinance, law or regulation, including Title VII of the Civil Rights Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefit Protection Act,  the New York State Human Rights Law, or any other potentially applicable employment or labor law, or any other rule of law or common law including, but not limited to those concerning possible torts, express or implied contract,  the implied covenant of good faith and fair dealing, public policy, or other obligations. Other than with respect to any rights to which you may be entitled under the federal Age Discrimination in Employment Act, you also agree not to initiate any administrative or legal action against the Company to assert such claims. Moreover, to the extent any such action is brought by you or on your behalf by any third party, you agree to waive all claims to monetary relief or damages of any kind, including attorneys’ fees and costs. You understand that the fact of this Agreement, and/or the agreement to pay or the payment of the consideration described herein does not constitute an admission by the Company that it has violated any such law or legal obligation. This Agreement shall not affect any entitlements you may have to Indemnification pursuant to the By-Laws of the Company, under any liability policy that may be maintained by the Company, and the laws of the State of Delaware. Nothing contained in the Agreement shall preclude you from enforcing the terms of this Agreement, should that ever be necessary.  

You agree that you will not disclose, or cause to be disclosed in any way, any confidential information or documents relating to your employment with the Company, the operations of the Company, the terms of this Agreement, the facts and circumstances underlying this Agreement or the fact that such Agreement exists, except to your attorneys, accountants, and immediate family, and as otherwise required by law. This provision should not be construed as preventing you from discussing your employment with Symbol with any prospective employer. Further, you agree to continue to abide by the terms of the Company’s Non-Disclosure Agreement, which you signed while an associate of the Company. You also agree not to make any disparaging or derogatory remarks about the Company, or its products or services. In response to outside inquiries, the Company will respond in accordance with its normal policy and will confirm only your dates of employment and positions held.

You agree that during the six (6) month period following your Termination Date, you will not: (i) engage in, manage, operate, control or supervise or participate in the management, operation, control or supervision of, any business or entity, which is a Competitive Business of the Company (as such term is defined in the Retention Agreement); or (ii) have any ownership or financial interest, directly or indirectly, in any Competitive Business,  all including, without limitation, as an individual, partner, shareholder (other than as a shareholder of a publicly-owned corporation), officer, director, employee, principal, agent or consultant. Additionally, you agree that during the six (6) month  period following your Termination Date, you will not, directly or indirectly, call on any customer of the Company for the purpose of soliciting and/or providing to such customer any products or services similar to those sold or provided by the Company, nor will you in any way, directly or indirectly, induce any customer of the Company to cease doing business with the Company.  Further you agree that during the six (6) month period following your termination, you will not directly or indirectly, solicit, encourage, or induce any of the Company’s other associates or consultants of the Company to leave the Company’s employ, or to work for you or any Competitive Business of the Company, or any other entity.

You further agree that you will reasonably cooperate fully with the Company at mutually convenient times in connection with any existing or future internal or external investigations which the Company is currently conducting, conducts in the future, or in which it is currently or may become involved, and in any existing or future litigation involving the Company, whether administrative, civil, or criminal in nature, in which and to the extent the Company deems your cooperation necessary. Symbol will endeavor to provide you with reasonable notice of the need for such cooperation and will limit the time that may be required in this regard to reasonable periods. In addition, during any such period when cooperation is necessary, Symbol will reimburse you for reasonable out-of-pocket expenses you incur to comply with this Section.

You acknowledge that you have had more than twenty-one (21) days to consider the terms of this Agreement. You also acknowledge that you were advised by Symbol to discuss the terms of this Agreement with your attorneys prior to signing this Agreement. You further acknowledge that you are entering into this Agreement, freely, knowingly, and voluntarily, with a full understanding of its terms and that you will have 7 days to revoke this Agreement after executing the same by notifying the undersigned in writing during this seven-day period. Should any disputes arise between you and the Company relating to your employment or this Agreement, said disputes shall be resolved pursuant to the Dispute Resolution and Arbitration provision contained in paragraph 11 of the Retention Agreement.

Except as set forth herein, this constitutes the entire agreement between us regarding the subject matter hereof, except with respect to those provisions of the Retention Agreement which have been incorporated herein by reference. This Agreement may not be changed or altered, except by a writing signed by you and the Company. This Agreement is entered into in the State of New York and the laws of the State of New York will apply to any dispute concerning it, without regard to its conflicts of law provisions.  If any clause of this Agreement should ever be determined to be unenforceable, it is agreed that this will not affect the enforceability of any other clause or the remainder of this Agreement.

Sincerely,

/s/ Mary McLeod
Mary McLeod
Senior Vice President, Human Resources

Symbol Technologies, Inc.

AGREED AND ACCEPTED:

By:          /s/ Todd Hewlin                                                                     Date:        02/21/2006        

       Todd Hewlin  

EXHIBIT 10.2

February 27, 2006

John Bruno

[OMITTED]

[OMITTED]

Re: Separation of Employment

Dear John:

This letter sets forth the terms and conditions relative to your separation from your employment with Symbol Technologies, Inc, including its subsidiaries and affiliated corporations, and their respective current and former directors, officers, employees, agents and assigns (“Symbol” or “the Company”).

Your resignation from Symbol’s employ will be effective May 15, 2006 (the “Termination Date”). However, your status as an Executive Officer of the Company will terminate effective February 22, 2006. Provided you execute and return this Agreement to the Company on or before the close of business on March 16, 2006, the Company will provide you with the following:

1. During the period from the date of this Agreement through February 28, 2006, you will continue as a regular Associate of the Company with your normal employee benefits continuing, except that you will not be eligible for any bonus for calendar year 2006.

2. Beginning on March 1, 2006, and continuing through May 15, 2006 (the “on-call period”), you will be paid your current salary and car allowance, payable in installments coincident with the Company’s normal payroll cycles, less applicable taxes and all other deductions as may be required by law or which have been previously authorized. During this period, you will be considered an “on call” employee, and you agree to make yourself available for telephone and in person consultations with Company officials as required, although you will not be reporting to the Company’s offices except as directed. You agree to diligently perform all of your duties and responsibilities and to continue to serve the Company in a fully professional and competent manner as required.

During the on-call period, you will not be eligible to participate in any of the Company’s employee benefit plans, except that your coverage in the Company’s group health insurance plan (medical and dental only) will continue at normal contribution rates for yourself and your eligible dependents. Thereafter, should you not be covered under another group health insurance plan, the Company will offer you the opportunity to continue as a member of its group health insurance plan for up to eighteen (18) months at your own expense in accordance with applicable federal law, i.e., COBRA. In addition, during the on-call period, any deferral election you have made under the Company’s deferred compensation plan will continue to be in effect.

During the on-call period, you will not accrue any vacation, will not be eligible to participate in the Company’s 401k plan (and thus not be eligible for any matching contributions, other than any not previously made by the Company for calendar year 2005, and for January 1 – February 28, 2006), will not be covered by the Company’s life insurance and disability benefit plans, and you will not be eligible to participate in the Company’s bonus plan or receive any Company contributions under any deferred compensation program. However, your unvested stock options will continue to vest during the on-call period and you will be eligible to exercise your vested options through and including your Termination Date. After the Termination Date, you will be entitled to receive distribution of your vested benefits under the Company’s 401(k) and Deferred Compensation Plans in accordance with the terms of the applicable Plan documents, except that Deferred Compensation Program benefits will not be paid prior to six (6) months after the Termination Date to the extent required by Section 409A of the Internal Revenue Code.

Further, any payments and benefits to which you are entitled pursuant to the Retention Agreement between you and the Company dated August 22, 2005, will be paid to you within ten (10) business days of the Termination Date (i.e., one year’s base salary and target bonus, and the Retention Payment, to the extent not previously paid). In addition, any unvested shares of LTIP restricted stock shall become fully vested and all restrictions with respect to such shares of LTIP restricted stock shall lapse. Further, you will be paid for all accrued unused vacation (i.e., accrued and unused as of February 28, 2006) by May 30, 2006.

In exchange for the Company providing you with the aforementioned payments, and the other benefits set forth above, which you acknowledge represents good, valuable and sufficient consideration to support your execution of this Agreement, you hereby waive all claims against the Company and unconditionally and irrevocably release and discharge the Company from liability for any claims or damages that you have or may have against it, its current and former directors, officers, employees, agents and assigns up to the moment that this Agreement becomes fully executed, regardless of whether those claims are known or unknown including, but not limited to, any claims for wages, severance (except as specifically provided for herein), bonuses or benefits (except as specifically provided for herein), or any other claims whatsoever arising during or, in whole or in part, out of your employment relationship with the Company, or violations of any federal, state or local fair employment statute, executive order, ordinance, law or regulation, including Title VII of the Civil Rights Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefit Protection Act, the New York State Human Rights Law, or any other potentially applicable employment or labor law, or any other rule of law or common law including, but not limited to those concerning possible torts, express or implied contract, the implied covenant of good faith and fair dealing, public policy, or other obligations. Other than with respect to any rights to which you may be entitled under the federal Age Discrimination in Employment Act, you also agree not to initiate any administrative or legal action against the Company to assert such claims. Moreover, to the extent any such action is brought by you or on your behalf by any third party, you agree to waive all claims to monetary relief or damages of any kind, including attorneys’ fees and costs. You understand that the fact of this Agreement, and/or the agreement to pay or the payment of the consideration described herein does not constitute an admission by the Company that it has violated any such law or legal obligation. This Agreement shall not affect any entitlements you may have to indemnification pursuant to the By-Laws of the Company, under any liability policy that may be maintained by the Company, and the laws of the State of Delaware. Nothing contained in the Agreement shall preclude you from enforcing the terms of this Agreement, should that ever be necessary.

You agree that you will not disclose, or cause to be disclosed in any way, any confidential information or documents relating to your employment with the Company, the operations of the Company, the terms of this Agreement, the facts and circumstances underlying this Agreement or the fact that such Agreement exists, except to your attorneys, accountants, and immediate family, and as otherwise required by law. This provision should not be construed as preventing you from discussing your employment with Symbol with any prospective employer. Further, this provision does not restrict the disclosure of information that has become public, other than as a result of a breach of this confidentiality provision. Further, you agree to continue to abide by the terms of the Company’s Non-Disclosure Agreement, which you signed while an associate of the Company. You also agree not to make any disparaging or derogatory remarks about the Company, or its products or services. In response to outside inquiries, the Company will respond in accordance with its normal policy and will confirm only your dates of employment and positions held.

You agree that during the six (6) month period following your Termination Date, you will not: (i) engage in, manage, operate, control or supervise or participate in the management, operation, control or supervision of, any business or entity, which is a Competitive Business of the Company (as such term is defined in the Retention Agreement); or (ii) have any ownership or financial interest, directly or indirectly, in any Competitive Business, all including, without limitation, as an individual, partner, shareholder (other than as a shareholder of a publicly-owned corporation), officer, director, employee, principal, agent or consultant. Additionally, you agree that during the six (6) month period following your Termination Date, you will not, directly or indirectly, call on any customer of the Company for the purpose of soliciting and/or providing to such customer any products or services similar to those sold or provided by the Company, nor will you in any way, directly or indirectly, induce any customer of the Company to cease doing business with the Company. Further you agree that during the six (6) month period following your Termination Date, you will not directly or indirectly, solicit, encourage, or induce any of the Company’s other associates or consultants of the Company to leave the Company’s employ, or to work for you or any Competitive Business of the Company, or any other entity.

You further agree that you will reasonably cooperate fully with the Company at mutually convenient times in connection with any existing or future internal or external investigations which the Company is currently conducting, conducts in the future, or in which it is currently or may become involved, and in any existing or future litigation involving the Company, whether administrative, civil, or criminal in nature, in which and to the extent the Company deems your cooperation necessary. Symbol will endeavor to provide you with reasonable notice of the need for such cooperation and will limit the time that may be required in this regard to reasonable periods. In addition, during any such period when cooperation is necessary, Symbol will reimburse you for reasonable out-of-pocket expenses you incur to comply with this Section.

You acknowledge that you have had more than twenty-one (21) days to consider the terms of this Agreement. You also acknowledge that you were advised by Symbol to discuss the terms of this Agreement with your attorneys prior to signing this Agreement. You further acknowledge that you are entering into this Agreement, freely, knowingly, and voluntarily, with a full understanding of its terms and that you will have seven (7) days to revoke this Agreement after executing the same by notifying the undersigned in writing during this seven-day period. Should any disputes arise between you and the Company relating to your employment or this Agreement, said disputes shall be resolved pursuant to the Dispute Resolution and Arbitration provision contained in paragraph 11 of the Retention Agreement.

Except as set forth herein, this constitutes the entire agreement between us regarding the subject matter hereof, except with respect to those provisions of the Retention Agreement which have been incorporated herein by reference. This Agreement may not be changed or altered, except by a writing signed by you and the Company. This Agreement is entered into in the State of New York and the laws of the State of New York will apply to any dispute concerning it, without regard to its conflicts of law provisions. If any clause of this Agreement should ever be determined to be unenforceable, it is agreed that this will not affect the enforceability of any other clause or the remainder of this Agreement.

AGREED AND ACCEPTED:	Sincerely, /s/ Mary McLeod Mary McLeod Senior Vice President, Human Resources Symbol Technologies, Inc.
By: /s/ John G. Bruno	Date: 02/27/2006
John Bruno