Document:

Summary of Named Executive Officer Compensation

 Exhibit 10.1 
 Semtech Corporation 
 Summary of Named Executive Officer Compensation 
 Set forth below is a summary of the Company’s compensation arrangements with its Named Executive Officers, as defined by applicable SEC regulations, including
(i) former Chief Executive Officer Jason L.Carlson who left the Company on September 27, 2005 and (ii) Chairman of the Board John D. Poe, who served as Acting Chief Executive Officer from September 27, 2005 until April 3,
2006. 
 Although the Company’s new Chief Executive Officer, Mohan R. Maheswaran, is not a Named Executive Officer for fiscal year 2006 under SEC rules,
information regarding his compensation is presented due to his position with the Company effective April 3, 2006. For purposes of this exhibit, the term “Named Executive Officers” includes Mr. Maheswaran. The following commentary
regarding Mr. Maheswaran’s compensation is qualified in its entirety by the offer letter filed as Exhibit 10.1 to the Form 8-K filed by the Company on March 14, 2006 (“Offer Letter”). 
 All of the Named Executive Officers are employed on at-will basis and their compensation and employment status may be changed at any time at the discretion of the
Company. 
 Base Salary 
 The following table sets
forth the base salaries of the Named Executive Officers at the end of fiscal year 2006 (or when last employed during fiscal year 2006) and as established by Compensation Committee (“Committee”) of the Board of Directors in fiscal year
2007. The Committee noted that Mr. Wilson’s last base salary adjustment was effective in September 2002 and that the base salaries of the other Named Executive Officers receiving increases had been in effect since November 2003.

  

							
	 Name
	  	 Fiscal Year 2006
 Base Salary
	  	 Current
 Base Salary

	 Mohan R. Maheswaran
     President
and Chief Executive Officer
	  	 	—  	  	$	400,000
			
	 David G. Franz
     Chief Financial
Officer
	  	$	215,057	  	$	222,000
			
	 Paul D. Peterson
     Vice President,
Sales and Marketing
	  	$	215,004	  	$	230,000
			
	 Jeffrey T. Pohlman
     Vice
President, Protection Products
	  	$	180,198	  	$	205,000
			
	 John M. Wilson
     Vice, President,
Power Management Products
	  	$	200,078	  	$	205,000
			
	 Jason L. Carlson
     Former Chief
Executive Officer
	  	$	350,000	  	 	—  
			
	 John D. Poe 1
     Acting Chief Executive Officer
	  	$	600,000	  	$	600,000

	1	Mr. Poe, Chairman of the Board, served as acting Chief Executive Officer on an interim basis from September 27, 2005, until April 3, 2006 when
Mr. Maheswaran assumed the role. Mr. Poe will remain in a paid advisory capacity through April 28, 2006 to assist in the transition. Mr. Poe is paid $50,000 per month for these services. After April 28, 2006 this
remuneration will cease and he will revert to serving the Company solely in his role as Chairman of the Board. Annualized information is included here for the sake of comparison, even though Mr. Poe will have received the $50,000 monthly
remuneration for only about seven months. 

 Cash Bonus  
 Named Executive Officers are eligible to participate in the Company’s Cash Bonus Incentive Plan (“Bonus Plan”) A brief summary of the material elements of the Bonus Plan, as amended and restated as of
January 30, 2006, is attached as Exhibit 10.1 to the Form 8-K filed by the Company on March 1, 2006. The Bonus Plan is based on annual performance; the Company does not maintain a long-term performance plan. 
 Incentive Compensation Paid in Fiscal Year 2007 for efforts in Fiscal Year 2006 
 The Committee approved incentive compensation awards under the Bonus Plan as it existed during fiscal year 2006 (see Exhibits 10.1 and 10.19 to the Company’s annual
report on Form 10-K filed on April 15, 2005) for the following Named Executive Officers for efforts during fiscal year 2006 (January 31, 2005 through January 29, 2006): 
  

										
	 Name
	  	Bonus	  	Percent of
Target Bonus	 	 	Percent of Base
Salary1 	 
	 Mr. Franz
	  	$	56,829	  	38	%	 	26	%
	 Mr. Peterson
	  	$	70,000	  	47	%	 	33	%
	 Mr. Pohlman
	  	$	151,366	  	120	%	 	84	%
	 Mr. Wilson
	  	$	62,867	  	45	%	 	31	%
	 Mr. Carslon2
	  	 	—  	  	—  	 	 	—  	 
	 Mr. Poe3 
	  	 	—  	  	—  	 	 	—  	 

	1	Base salary in effect during fiscal year 2006. 

	2	Under the Agreement and Release entered into by he Company and Mr. Carlson in October
2005, Mr. Carlson was not entitled to any bonus under the Bonus Plan for services in fiscal year 2006. For more information, see the Company’s reports on Form 8-K filed on October 3, 2005 and October 14, 2005.

	3	The Committee previously determined the monthly fee paid to Mr. Poe for serving as acting CEO to be all inclusive; thus he was not eligible for an award under
the Bonus Plan 

 Incentive Compensation for Efforts in Fiscal Year 2007 
 The Committee has established a bonus pool for incentive compensation to be earned in fiscal year 2007 and has made other determinations as contemplated by the Bonus Plan
to correlate bonuses, including the CEO’s bonus, with performance against the Company’s annual business plan on a Company-wide and business unit basis. 
 The following Named Executive Officers are eligible to earn the minimum, target, and maximum bonus awards under the Bonus Plan during fiscal year 2007 as specified below 
 Incentive Awards as Percentage of Base Salary 
  

									
	 	  	 Minimum1
	  	Target	 	 	Maximum2	 
	 Mr. Maheswaran
	  	50% pro-rated	  	125	%	 	256.25	%
	 Mr. Franz
	  	0	  	75	%	 	153.75	%
	 Mr. Peterson
	  	0	  	90	%	 	184.50	%
	 Mr. Pohlman
	  	0	  	75	%	 	153.75	%
	 Mr. Wilson
	  	0	  	75	%	 	153.75	%
	 Mr. Poe 3
	  	—  	  	—  	 	 	—  	 

	1	The Bonus Plan does not guarantee a minimum award for any participant. However,
Mr. Maheswaran’s Offer Letter guarantees him a minimum bonus for fiscal year 2007 equal to 50% of his base salary, pro-rated for the number of months employed during fiscal year 2007. 

	2	The maximum award any participant may receive under the Bonus Plan is 205% of the target award. 

	3	The Committee previously determined the monthly fee paid to Mr. Poe for serving as
Acting CEO to be all inclusive; thus he is not eligible for an award under the Plan for services in Fiscal Year 2007. 

 As in fiscal year
2006, each of Named Executive Officers will have individual performance goals established on a quarterly basis related to specific technical, operational, financial, and/or managerial matters. 
 Deferred Compensation 
 In fiscal year 2004, the Company has
established a non-qualified deferred compensation plan, known as the Executive Compensation Plan (“EC Plan”). Executives selected by the Committee, including Named Executive Officers, may defer up to 100% of their compensation, as defined
by the EC Plan, for later distribution on the date or dates selected by the participant or on other dates specified by the EC Plan. The EC Plan documents are attached as Exhibits 10.12, 0.13, and 10.14 to the Company’s Annual Report on Form
10-K for the fiscal year ended January 25, 2004. 
 As currently implemented, participants may defer only base salary and the Company matches dollar for
dollar up to the first 20% of employee contributions for the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer positions; up to the first 15% for participants at the Vice President level; and up to the first 10% for other
participants. Amounts deferred by the participants are immediately vested. Company matching contributions vest over four years. 
 The Company does not
guarantee any rate of return on the compensation deferred by participants or on the matching contributions. Indeed, the participants may lose all or a portion of their deferred compensation or match. The deferred compensation and match are credited
with earnings and investment gains and losses that mirror investments chosen by the participants from a selection of investment vehicles offered by the third-party plan provider. Amounts credited to participant accounts are not actually invested in
these vehicles. Rather, participants are general creditors of the Company. The Company has purchased whole life insurance on the lives of certain of the participants that is intended to cover a majority of the payments expected to be made under the
EC Plan. These policies are held by a grantor trust that was established in connection with the EC Plan. See footnote 12 to the Company’s consolidated financial statements. 
 Information regarding fiscal year 2006 EC Plan matching contributions for the Named Executive Officers will be included in the Company’s Definitive Proxy Statement in connection with its annual meeting of
shareholders to be held on June 15,2006. 
 Stock Options 
 The Company has various stock option plans that provide for granting options to purchase shares of the Company’s common stock to employees, including the Named Executive Officers. The plans provide for the
granting of options that meet the Internal Revenue Code qualifications to be incentive stock options, as well as nonstatutory options. Under these plans, the option price must be at least equal to the fair market value of the Company’s common
stock at the date of the grant. Most options now outstanding expire within ten years from the date of grant and vest in equal annual increments over three to four years from the date of grant. Most options granted to employees prior to
October 3, 2001 will vest and become exercisable upon a change in control, as defined in the plans. All options granted to employees after October 3, 2001 will vest and become exercisable following a change in control only if, within one
year, the employee is either terminated without cause or subject to a constructive termination. 
 The Company has also issued some stock options outside of
any plan, including inducement options awarded as recruitment incentives to Named Executive Officers. As an inducement to join the company in April 2006, Mr. Maheswaran was awarded a, time-vested option for 250,000 shares of the Company’s
common stock (“Shares”) and a performance-vested option for 250,000 Shares. The terms and conditions of these inducement options are set forth in the option award agreements filed as exhibits to the Form 8-K filed by the Company on
April 5, 2006. 

 Information regarding stock options awarded to the Named Executive Officers, including options awarded in fiscal year
2006, will be included in the Company’s Definitive Proxy Statement in connection with its annual meeting of shareholders to be held on June 15, 2006. 
 Restricted Stock 
 As an inducement to join the Company, Mr. Maheswaran was awarded a time-vested restricted stock award for
100,000 Shares. The terms and conditions of this restricted stock award are set forth in the award agreement filed as an exhibit to the Form 8-K filed by the Company on April 5, 2006. 
 Benefit Programs Available to Employees Generally 
 The Named
Executive Officers are eligible to participate in broad-based benefit programs generally available to the Company’s salaried employees, including health, disability and life insurance programs and a qualified 401K plan. 
 Other 
 Semtech does not provide Company cars to the Named
Executive Officers. However, each Named Executive Officer is paid a monthly car allowance of $637.50, which includes an allowance for maintenance and insurance, and is reimbursed for actual gasoline expenses. 
 The Company provides cellular telephones and/or other communication devices to the Named Executive Officers and certain other employees for business use. The Company
permits personal use of these items without reimbursement. The incremental cost to the Company, if any, is negligible. 
 Mr. Franz receives one week of
paid vacation in addition to paid vacation based on the schedule that applies to employees generally. Mr. Maheswaran is entitled to four weeks annual vacation, which is two weeks more than generally received by U.S. employees with less than
five years of service. 
 As set forth in greater detail in the Offer Letter, Mr. Maheswaran will receive relocation assistance, including a gross-up to
offset any tax liability for any imputed income, and reimbursement of up to $15,000 for legal fees in connection with negotiation of the Offer Letter. 
 Termination of Employment 
 All of the Named Executive Officers, including the Chief Executive Officer, are employed on at-will basis
and their compensation and employment status may be changed at any time at the discretion of the Company. 
 As an inducement for Mr. Carlson to join
Semtech in fiscal year 2003, the Company agreed that should his services be terminated by the Board of Directors, he would be granted a severance allowance equal to six months salary and benefits continuation upon signing of a non-compete agreement
and a full release of all claims and obligations. Vesting of stock options would cease as of the last day that services are actively provided to the Company. Mr. Carlson left the Company in September 2005. His severance agreement, which
provided for a cash payment of $63,000 in addition to the benefits contemplated by the parties in 2002, is attached as Exhibit 10.1 to the Form 8-K filed by the Company on October 14, 2005. 
 Mr. Maheswaran’s Offer Letter provides for the following severance benefits for Mr. Maheswaran if the Company terminates his employment other than for
death, disability, or Cause (as defined in the Offer Letter) or Mr. Maheswaran resigns for Good Reason (as defined in the Offer Letter) within 30 days of an event that constitutes Good Reason: 
  

	 	•	 	twelve months of base salary 

  

	 	•	 	up to 12 months of medical, dental, life, and long-term disability insurance (or cash equivalent) 

  

	 	•	 	to the extent not already vested, an additional 25% of the inducement awards made on April 3, 2006 (time-vested option, performance-vested option and restricted stock) would
become fully vested 

 The above severance benefits are contingent upon Mr. Maheswaran’s execution of a release
agreement and his compliance with the restrictive covenant contained in the Offer Letter regarding employment with or consultation for the Company’s competitors. 
 Mr. Maheswaran’s Offer Letter provides the following severance benefits for Mr. Maheswaran if within twelve months of a Change in Control (as defined in the Offer Letter) the Company terminates his
employment other than for death, disability or Cause or he resigns for Good Reason within 30 days of an event that constitutes Good Reason: 
  

	 	•	 	two times annual base salary 

  

	 	•	 	two times annual target bonus 

  

	 	•	 	pro-rated target bonus for the fiscal year of the termination 

  

	 	•	 	up to twenty-four months of medical, dental, life, and long-term disability insurance (or cash equivalent) 

  

	 	•	 	to the extent not already vested, all of the Equity Awards would become fully vested 

  

	 	•	 	to the extent any severance payment after a Change in Control is subject to an excise tax, a gross-up payment with respect to the excise tax 

 These Change in Control severance benefits are contingent upon Mr. Maheswaran’s execution of a release.Summary of Director Compensation

 Exhibit 10.2 
 Semtech Corporation 
 Summary of Director Compensation 
 Directors who are Company employees are not paid fees or additional compensation for attending Board of Directors (“Board”) or committee meetings. Chief
Executive Officer Mohan Maheswaran is currently the only employee on the Board. 
 Set forth below is a summary of the current compensation arrangements for
non-employee members of the Board (“Outside Directors”). 
 Stock Options in Lieu of Cash Retainer and Meeting
Fees 
 In continuation of a policy established in 1998, the compensation program for our Outside Directors is equity based. The program we use was
developed by an independent consulting firm and was established to align the interests of the Board with those of stockholders, to reduce the expense associated with director compensation and to attract and retain high quality directors. 

On December 5, 2002, a stock option grant was made to each then Outside Director in lieu of a cash retainer and meeting fees for the period July 15, 2003
through July 15, 2008. The number of options was computed by multiplying the forgone cash compensation over the five-year period of service by four (multiplier), and then dividing that amount by the Company’s stock price on the date of
grant, to compute the number of options to be granted. The multiplier was set to recognize the relative risk of taking stock options, compared to cash compensation. The annual cash compensation foregone by Vice Chairman Hankin was set at $30,000 and
at $20,000 for each other Outside Director. Using this formula, Vice Chairman Hankin was granted 46,047 stock options and Directors Antle, Burra, Lindstrom, Piotrowski and Schraith were each granted 30,698 stock options. 
 The vesting period for these options began on July 15, 2003. Twenty percent of the options vest each year, but the annual vesting will not occur, and that portion
of the award will be forfeited, if a Director does not attended three of the four most recent regularly scheduled meetings for that year, with certain exceptions. These options are governed by the terms of the Company’s Long Term Stock
Incentive Plan (“Plan”), approved by the stockholders in 1998 and on file with the SEC. Upon a change in control, as defined in the Plan, these options become fully vested and the directors will have the right to exercise them immediately.

 Director Poe’s status changed to that of an Outside Director in October 2003. In lieu of cash retainers and meeting fees for the period from
October 6, 2003 through July 15, 2008, Director Poe was granted an option for 45,960 shares of the Company’s stock, based on the same formula used for the December 2002 grants to other Outside Directors, taking into account the period
of service is less than five years. Taking into consideration the leadership role of the Chairman, the annual cash compensation foregone was set at $50,000. These options are subject to the same 20% vesting schedule and other terms and conditions as
the options granted to the other Outside Directors for service through July 15, 2008. 
 Semi-annual Stock Option
Grants 
 Each January 1 and July 1, each Outside Director receives a stock option to purchase 5,000 shares of the Company’s common stock
at the market price as of the date of grant. Vesting is over four years. These options are governed by the terms of the Plan. Upon a change in control, as defined in the Plan, these options become fully vested and the directors will have the right
to exercise them immediately. 
 Insurance 
 Outside Directors are covered by a travel accident policy maintained by the Company for officers and employees. 
 Reimbursement of Expenses 
 Outside
Directors are reimbursed for expenses related to Board membership, including attendance at director education events. 

 Arrangements with Chairman Poe 
 In addition to the compensation provided to Outside Directors generally, the following arrangements were made with Mr. Poe upon his termination of employment and
change to Outside Director status in October 2003. 
 He is entitled to continue participation in Company-sponsored medical and dental plans on an individual
or family basis, as he elects, until he reaches the age of sixty-five. The Company is not obligated to provide any insurance not available to Company employees generally and the allocation of premiums between the Company and Mr. Poe is
calculated in the same manner as for Company employees generally. Mr. Poe pays his allocated portion of the premiums on an annual basis. During fiscal year 2006, the Company’s cost to maintain this insurance coverage for Mr. Poe was
approximately $7,800. 
 Should Mr. Poe leave the Board in good standing prior to the final vesting date for employee stock options awarded him prior to
October 6, 2003, and if he so requests, the Company will employ him on a part time basis from the date he ceases to be a Director until September 21, 2007 on such terms and conditions as the Compensation Committee may then establish.

 The Company continues to provide to Mr. Poe, without charge, a computer, cell phone and similar items for use on Company business. As with cell
phones provided to employees, the Company permits personal use of the phone without reimbursement. The incremental cost to the Company, if any, is negligible. 
 Mr. Poe served as acting Chief Executive Officer on an interim basis from September 27, 2005, until April 3, 2006 when Mr. Maheswaran assumed the role. Mr. Poe will remain in a paid advisory capacity until
April 28, 2006 to assist with the transition. Mr. Poe is paid $50,000 per month for these services. This monthly fee is all inclusive; thus Mr. Poe was not eligible to participate in the Company’s bonus plan. After April 28,
2006 Mr. Poe will revert to serving the Company solely in his role as Chairman of the Board. 
 New Directors

 Any new Outside Director who joins the Board will receive an initial grant of 10,000 stock options, on such terms and conditions as may be specified at
the time of the grant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]