Intermec, Inc. 2004 Long-Term Performance Share Program

Name of Program

The program will be called the Intermec, Inc. 2004 Long-Term Performance Share Program, and will be considered a “sub-plan” under the 2004 Omnibus Incentive Compensation Plan (the “Plan”).

Purpose

The primary purposes of the program are to:

•  Reward officers and key employees for the overall success of Intermec, Inc. (the “Company”) as reflected through the Company’s financial performance and stock price; and

•  Provide a competitive long-term incentive program.

Effective Date

The effective date of the program is May 6, 2004. The program will remain in effect until terminated by the Compensation Committee (the “Committee”) of the Board.

Performance Period

The performance period under the program is three years, with the first performance period running from January 1, 2004 to December 31, 2006.

Grant Frequency

A new three-year performance period will begin annually, which will create overlapping performance periods.

Size of Awards

Target awards will be established for each participant, denominated in shares. Target award levels will be approved annually by the Committee.

Program Structure

Participants can earn from 0 percent to 200 percent of their target shares based on Company financial performance.

Performance Measure(s)

Before the commencement of each performance period, the Committee shall select performance measures from those set forth in Section 10(a) of the Plan. The Committee may choose to include or exclude any of the events set forth in Section 10(b) of the Plan to the evaluation of performance for such period.

Dividends

Dividends, if any, declared during the performance period will be converted into additional performance shares, based on each participant’s target award.