Document:

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                                                                    EXHIBIT 10.3

            ANALOG DEVICES BV (IRELAND) EMPLOYEE STOCK OPTION PROGRAM

1.    DEFINITIONS

1.1.  In these Rules the following words and expressions shall have the
      following meanings :

      "Act"                         the Taxes Consolidation Act, 1997,

      "Adoption Date"               the date on which the Scheme is adopted by
                                    the Board,

      "Analog Devices, Inc.         the stock option plan adopted by the board
      1998 Stock Option Plan        of directors of Analog Devices, Inc. and
                                    approved by the stockholders of Analog
                                    Devices, Inc. on 15th January, 1998 and 10th
                                    March, 1998 respectively,

      "Base Pay"                    the remuneration of an Eligible Employee for
                                    a Year of Assessment including shift
                                    differentials, paid holidays and sick leave
                                    but excluding overtime and any other
                                    fluctuating emoluments,

      "Board"                       the Board of Directors of the Company or,
                                    except in Rule 10.4, a duly constituted
                                    committee thereof,

      "Company"                     Analog Devices BV

      "Control"                     has the meaning assigned to it in section
                                    432 of the Act,

      "Date of Grant"               the date on which an Option is granted,

      "Date of Exercise"            the date on which an Option is exercised,

      "Directors"                   the directors for the time being of the
                                    Company,

      "Eligible Employee"           every person, subject to Rule 6, who on the
                                    Date of Grant and on the Date of Exercise;

                                    (a) is an employee of the Company or a
                                    Participating Company, or
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                                    (b) is a full-time director of the Company
                                    or a Participating Company and

                                    (c) is chargeable to tax under Schedule E in
                                    respect of that employment,

                                    PROVIDED that no person shall be an Eligible
                                    Employee if that person is ineligible to
                                    participate in the Scheme by virtue of
                                    paragraph 7, Schedule 12C, to the Act,

      "Market Value"                the composite closing price of the common
                                    stock of Analog Devices, Inc. on the New
                                    York Stock Exchange as reported in The Wall
                                    Street Journal on the Date of Grant",

      "Key Director"                a full-time director of the Company whose
                                    specialist skills, qualifications and
                                    relevant experience are vital to the future
                                    success of the Company and is so certified
                                    to the Revenue Commissioners by the Company,

      "Key Employee"                an employee of the Company whose specialist
                                    skills, qualifications and relevant
                                    experience are vital to the future success
                                    of the Company and is so certified to the
                                    Revenue Commissioners by the Company,

      "Option"                      a right to acquire Shares granted in
                                    accordance with the Rules of the Scheme,

      "Option"                      a document evidencing the option in such
      Agreement"                    form as the Board shall determine and which
                                    has been agreed in writing with the Revenue
                                    Commissioners,

      "Option Holder"               an individual to whom an Option has been
                                    granted (including where the context
                                    permits, the legal personal representatives
                                    of a deceased Option Holder),

      "Participating Company"       Any Irish resident company under the Control
                                    of Analog Devices BV,
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      "Rules"                       the rules of the Scheme as amended from time
                                    to time,

      "the Scheme"                  means the Analog Devices BV (Ireland)
                                    Employee Stock Option Program constituted
                                    and governed by these Rules as from time to
                                    time amended,

      "Shares"                      fully paid up shares of common stock
                                    $.016-2/3 par value of Analog Devices Inc.
                                    which comply with the provisions of
                                    paragraphs 11 to 16, of Schedule 12C, to the
                                    Act,

      "Subscription Price"          the price at which each Share subject to an
                                    Option may be acquired on the exercise of
                                    that Option, being, subject to Rule 5.1, the
                                    Market Value of a Share, on the day that the
                                    Option was granted,

      "Vesting Date"                the second anniversary of the Date of Grant

      "Year of Assessment"          has the meaning assigned to it by section 2
                                    of the Act.

1.2.  Words importing the singular shall include the plural, and vice versa, and
      words importing the masculine shall include the feminine.

1.3.  Any reference to any statute (or a particular Part, Chapter or Section
      thereof) shall mean and include any statutory modification or re-enactment
      thereof for the time being in force, and any regulations made thereunder.

2.    THE SCHEME

2.1   This Scheme is subject to the rules of the Analog Devices, Inc. 1998 Stock
      Option Plan and is a sub-scheme of the Analog Devices, Inc. 1998 Stock
      Option Plan.

2.2   In the event of any difference between the rules of the Analog Devices,
      Inc. 1998 Stock Option Plan and the Rules of the Scheme, the Rules of the
      Scheme shall prevail.
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3.    GRANT OF OPTIONS

3.1.  The Board may, at any time following the Adoption Date, grant Options to
      each Eligible Employee to purchase Shares at the Subscription Price.

3.2.  Subject to Rules 3.2.1, 3.2.2, 3.2.3, 3.3, 3.4, and 4, the form manner and
      timing of the grant of Options, any terms and conditions attaching to the
      grant of Options and the basis on which the number of Shares over which an
      individual shall be granted an Option shall be at the absolute discretion
      of the Board,

      PROVIDED that not less than 70% of the total number of Shares over which
      Options are granted by the Board in any Year of Assessment shall be
      granted to Eligible Employees (excluding Key Directors and Key Employees).

      3.2.1.  The form, manner and timing, any terms and conditions and the
              basis on which the number of Shares over which any individual
              shall be granted an Option shall be the same for all Eligible
              Employees, (excluding, at the discretion of the Board, Key
              Directors and Key Employees).

      3.2.2.  The basis upon which the number of Shares over which Eligible
              Employees are granted Options (excluding, at the discretion of the
              Board, Key Directors and Key Employees) shall be determined in
              accordance with Rule 4 below.

      3.2.3.  Key Directors and Key Employees who are granted Options pursuant
              to Rule 3.3 shall not be granted Options pursuant to this Rule
              3.2.

3.3.  A maximum amount not exceeding 30% of the total number of Shares in
respect of which Options have been granted to all Eligible Employees (including
Key Directors and Key Employees) participating in the Scheme shall be available
for grant by the Board to Key Directors and Key Employees in any Year of
Assessment.

3.4.  As soon as possible after Options have been granted the Board shall issue
an Option Agreement in respect of each Option.

3.5.  No Option may be transferred, assigned or charged, and any purported
transfer, assignment or charge shall cause the Option to lapse forthwith. Each
Option Agreement shall carry a statement to this effect.
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4.    CALCULATION OF ENTITLEMENT

4.1.  Subject to Rule 3.2.1 the number of Shares over which an Option is granted
to each Eligible Employee on each Date of Grant shall be such an amount as the
Board shall determine, expressed as 10% of Base Pay converted to US dollars at
the exchange rate prevailing at the Date of Grant, divided by the Market Value
of a Share on the Date of Grant.

            Provided that if an Eligible Employee's Base Pay converted to U.S.
            dollars at the exchange rate prevailing at the Date of Grant exceeds
            US$250,000 the number of Shares over which an Option is granted to
            such Eligible Employee on the Date of Grant shall be expressed as
            10% of US$250,000, divided by the Market Value of a Share on the
            Date of Grant.

5.    STOCK SPLITS ETC.

5.1   In the event of any stock split, reverse stock split, stock dividend,
      recapitalisation, combination of shares, reclassification of shares,
      spin-off or other similar change in capitalization or event, or any
      distribution to holders of Shares other than a normal cash dividend, then
      the number and class of Shares and the Subscription Price of a Share
      subject to an Option shall be appropriately adjusted by the Company to the
      extent the Board shall determine, in good faith, is appropriate and
      necessary

      Provided that no such adjustment to the Subscription Price shall be made
      without the prior written approval of the Revenue Commissioners and

      Provided also that following such adjustment the Shares shall continue to
      satisfy the conditions specified in paragraphs 12 to 16 inclusive,
      Schedule 12C, to the Act.

5.2   Except on the occurrence of an event listed at Rule 5.1 no adjustment
      shall be made to the Subscription Price of a Share subject to an Option.

6.    EXERCISE OF OPTIONS

6.1.  Subject to Rules 6.3, 6.4, 6.5 and 6.6, any Option which has not lapsed
      may be exercised in whole or in part at any time following the earliest of
      the following events;

i. the Vesting Date

ii. the death of the Option Holder.
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6.2.  Subject to Rules 6.3, 6.4, 6.5 and 6.6, an Option shall lapse on the
earliest of the following events;

i. the tenth anniversary of the Date of Grant

ii. the first anniversary of the Option Holder's death

6.3   If the Company or a Participating Company terminates the employment of an
Eligible Employee for cause all his Options shall lapse on termination.

6.4   If an Eligible Employee leaves the employment of the Company or a
Participating Company of his own accord then:

i.    any Options which cannot be exercised due to the provisions of Rule 6.1
      shall lapse, and

ii.   all or any part of any Options capable of exercise in accordance with Rule
      6.1 on the last day of his employment with the Company or a Participating
      Company may be exercised within 90 days of such date.

6.5   If an Eligible Employee leaves the employment of the Company or a
      Participating Company due to disability or retirement, then all Options
      which on the last day of his employment are incapable of exercise due to
      Rule 6.1 shall continue to be exercisable in accordance with the Rules. An
      Employee is disabled if he is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or which has lasted or
      can be expected to last for a continuous period of not less than 12
      months. An individual shall not be considered to be disabled unless he
      furnishes proof of the existence thereof in the form of a doctor's
      certification. An Eligible Employee has retired if he terminates
      employment voluntarily after having (i) attained age 62, (ii) completed
      ten years of service and (iii) prior to termination of employment had
      completed an orderly transition of his duties and responsibilities. An
      Eligible Employee has completed 10 years of service if his total period of
      service with the Company, including service with any Participating Company
      and service before the Company was acquired by Analog Devices, Inc.,
      equals or exceeds 10 years. Periods when the Eligible Employee is absent
      from service due to illness, holiday, approved leave of absence or other
      similar reason shall be treated as periods of service. Service need not be
      continuous; periods of service shall be aggregated.

6.6   If an Eligible Employee leaves the employment of the Company or a
      Participating Company due to redundancy, then all Options which on the
      last day of his employment are incapable of exercise due to Rule 6.1 shall
      continue to be exercisable in accordance with the Rules, provided that any
      such Option must be exercised with
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      90 days of its Vesting Date. Any Option not exercised within the 90 day
      period aforesaid shall lapse.

7.    TAKE-OVERS

7.1.  If a company (in this Rule referred to as "the Acquiring Company") -

      obtains Control of Analog Devices Inc. as a result of making a general
      offer to;

            (i) acquire the whole of the issued ordinary share capital of Analog
            Devices Inc. which is made on condition such that if it is satisfied
            the person making the offer will have Control of Analog Devices,
            Inc., or

            (ii) acquire all the shares in Analog Devices, Inc. which are of the
            same class as the scheme Shares

the Option Holder may with the agreement of the Acquiring Company within the
"appropriate period" referred to in Rule 7.2 release each Subsisting Option
("the Old Option") in consideration of the grant of a new option ("the New
Option") which satisfies the conditions that it

i.    is over shares in the Acquiring Company or some other company falling
      within sub-paragraphs (b) or (c) of paragraph 12, Schedule 12C, to the
      Act, which satisfy the conditions specified in paragraphs 12 to 16
      inclusive, Schedule 12C, to the Act;

ii.   is a right to acquire such number of such Shares as has on acquisition of
      the New Option an aggregate Market Value equal to the aggregate Market
      Value of the Shares subject to the Old Option on its release;

iii.  has a Subscription Price per share such that the aggregate price payable
      on the complete exercise equals the aggregate price which would have been
      payable on complete exercise of the Old Option; and

iv.   is otherwise identical in terms to the Old Option.

7.2.  The "appropriate period" referred to in Rule 7.1 is 6 months beginning
with the time when the person making the offer has obtained Control of Analog
Devices, Inc. and any condition subject to which the offer is made is satisfied;

7.3.  Where an Option Holder is granted a New Option for release of his Old
Option in accordance with Rule 7.1 then;
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(i) the New Option shall be treated as having been acquired at the same time as
the Old Option and be exercisable in the same manner as the Old Option,

(ii) the New Option shall be subject to the provisions of the Scheme as it had
effect in relation to the Old Option immediately before the release, and

(iii) with effect from the release of the Old Option and the grant of the New
Option, the provisions of Rules 6,7,8, and 10 shall, in relation to the New
Option be construed as if references to Analog Devices Inc. and to the Shares
were references to the Acquiring Company or, as the case may be, to the other
company to whose shares the New Options relate, and to the shares in that other
company, but references to Participating Company shall continue to be construed
as if references to the Company were references to Analog Devices BV.

7.4.  For the purposes of this Rule 7 a person shall be deemed to have obtained
Control of Analog Devices Inc. if he and others acting in concert with him have
together obtained Control of it.

7.5.  The exercise of an Option pursuant to the preceding provisions of this
Rule 7 shall be subject to the provisions of Rule 8 below.

8.    MANNER OF EXERCISE OF OPTIONS

8.1.  No Option shall be exercised by an individual at any time when he is, or
by the personal representatives of an individual who at the date of his death
was, precluded by paragraph 7, of Schedule 12C, to the Act from participating in
the Scheme.

8.2.  Subject to Rule 5.1 no Option shall be exercised at any time when the
shares which may be thereby acquired are not Shares as defined in Rule 1.1.

8.3   An Option shall be exercised by the Option Holder, or as the case may be,
his personal representatives, by

i.    by delivering to the Company a written notice of exercise, e-mail or other
      form of notice approved by the Board and accompanied by the appropriate
      payment.

8.4.  Shares shall be allotted and issued or transferred pursuant to a notice of
exercise within thirty days of the date of exercise. Save for any rights
determined by reference to a date preceding the date of allotment, such Shares
shall rank pari passu with the other Shares of the same class in issue at that
date of allotment.
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8.5.  When an Option is exercised only in part, the balance shall remain
exercisable on the same terms as originally applied to the whole Option and the
terms of the Option Agreement issued with respect to the whole Option shall
continue to apply to the unexercised balance. A new Option Agreement shall not
be issued.

9.    SALE OF SHARES

9.1.  Where an Option Holder disposes of any of the Shares acquired by him on
the exercise of an Option granted under the Scheme within a period of three
years from the Date of Grant he must notify the Company of any such disposal.

10.   ADMINISTRATION AND AMENDMENT

10.1. The Scheme shall be administered by the Board whose decision on all
disputes shall be final.

10.2. The Company may from time to time by resolution of the Board amend these
Rules provided that;

i. no amendment shall materially affect an Option Holder as regards an Option
granted prior to the amendment being made,

ii. no amendment shall be made which would make the terms on which Options may
be granted materially more generous without the prior approval of the Company in
general meeting,

iii. no amendment shall be made without the prior written approval of the
Revenue Commissioners.

10.3. The costs of establishing and operating the Scheme shall be borne by the
Company.

10.4. The Board may establish a committee consisting of not less than three
Board members to whom any or all of its powers in relation to the Scheme may be
delegated.

10.5  The Board may at any time dissolve the committee, alter its constitution
or direct the manner in which it shall act.

10.6. Any notice or other communication under or in connection with the Scheme
may be given by the Company either personally or by post and to the Company
either personally or by post to the secretary. Items sent by post shall be
pre-paid and shall be deemed to have been received seventy two hours after
posting.
<PAGE>
10.7. The Company shall at all times ensure that there are available sufficient
authorised and unissued Shares to satisfy the exercise to the full extent still
possible of all Options which have neither lapsed nor been fully exercised,
taking account of any other obligations of the Company to issue unissued Shares.

11.   GENERAL

11.1  These Rules shall be governed by and construed in accordance with the laws
of Ireland.

11.2  The Options granted hereunder are not intended to be Incentive Stock
Options within the meaning of Section 422 of The US Internal Revenue Code of
1986.

11.3  No Option may be granted under the Scheme after January 14, 2008, but
Options previously granted may extend beyond that date.

11.4  These Rules shall not apply to any option granted under any other plan,
scheme or similar arrangement.
<PAGE>
                              ANALOG DEVICES, INC.

                               FIRST AMENDMENT TO

         1998 ANALOG DEVICES BV (IRELAND) EMPLOYEE STOCK OPTION PROGRAM

      The Analog Devices BV (Ireland) Employee Stock Option Program (the
"Plan"), pursuant to Rule 10.2 thereof, is hereby amended as follows retroactive
to June 1, 2001:

      1.    That Rule 8.3(ii) of the Plan be and hereby is deleted in its
            entirety.

      2.    That Rule 8.4 of the Plan be and hereby is amended to read as
            follows:

            8.4.  Shares shall be allotted and issued or transferred pursuant to
                  a notice of exercise within thirty days of the date of
                  exercise. Save for any rights determined by reference to a
                  date preceding the date of allotment, such Shares shall rank
                  pari passu with the other Shares of the same class in issue at
                  that date of allotment.

      Approved by the Board of Directors on September 5, 2001.<PAGE>
                                                                    EXHIBIT 10.6

                              ANALOG DEVICES, INC.

                            1994 DIRECTOR OPTION PLAN
                       (RESTATED(1) AS OF MARCH 11, 1998)

1.    PURPOSE

      The purpose of this 1994 Director Option Plan (the "Plan") of Analog
Devices, Inc. (the "Company") is to encourage ownership in the Company by
outside directors of the Company whose continued services are considered
essential to the Company's future progress and to provide them with a further
incentive to remain as directors of the Company.

2.    ADMINISTRATION

      The Board of Directors shall supervise and administer the Plan. Grants of
stock options under the Plan and the amount and nature of the awards to be
granted shall be automatic and non-discretionary in accordance with Section 5.
However, all questions of interpretation of the Plan or of any options issued
under it shall be determined by the Board of Directors and such determination
shall be final and binding upon all persons having an interest in the Plan.

3.    PARTICIPATION IN THE PLAN

      Directors of the Company who are not employees of the Company or any
subsidiary of the Company shall be eligible to participate in the Plan.

4.    STOCK SUBJECT TO THE PLAN

      (a)   The maximum number of shares which may be issued under the Plan
shall be five hundred fifty thousand (550,000) shares of the Company's Common
Stock, par value $.16-2/3 per share ("Common Stock"), subject to adjustment as
provided in Section 9 of the Plan.

      (b)   If any outstanding option under the Plan for any reason expires or
is terminated without having been exercised in full, the shares allocable to the
unexercised portion of such option shall again become available for grant
pursuant to the Plan.

      (c)   All options granted under the Plan shall be non-statutory options
not entitled to special tax treatment under Section 422 of the Internal Revenue
Code of 1986, as amended to date and as may be amended from time to time (the
"Code").
<PAGE>
5.    TERMS, CONDITIONS AND FORM OF OPTIONS

      Each option granted under the Plan shall be evidenced by a written
agreement in such form as the Board of Directors shall from time to time
approve, which agreements shall comply with and be subject to the following
terms and conditions:

      (a)   Automatic Option Grants.

            (i)   An option for the purchase of 10,500 shares of Common Stock
shall be granted automatically to each eligible director at the close of
business on the date the Plan is approved by the Board of Directors of the
Company (December 7,1994), subject to shareholder approval of the Plan at the
1995 Annual Meeting of Stockholders.

            (ii)  Each eligible director who is first elected or appointed to
serve on the Board after December 7,1994 shall be granted an option to purchase
10,500 shares of Common Stock upon such election or appointment.

            (iii) Each such eligible director shall be granted an additional
option to purchase 10,500 shares of Common Stock upon each of the "Anniversary
Dates" (as defined below) of the initial option grant to such eligible director;
provided that such person is an eligible director on the applicable Anniversary
Date.

            (iv)  The Anniversary Dates of an eligible director who was a member
of the Board of Directors on December 7,1994 shall be December 7,1995 and
successive anniversaries thereof. The Anniversary Dates of an eligible director
who is first elected or appointed to the Board of Directors after December 7,
1994 shall be the date which is twelve (12) months after such election or
appointment and the successive anniversaries thereof.

      (b)   Option Exercise Price. The option exercise price per share for each
option granted under the Plan shall equal (i) the last reported sales price per
share of the Company's Common Stock, as listed on a nationally recognized
securities exchange, on the date of grant (or, if no such price is reported on
such date, such price as reported on the nearest preceding day); or (ii) the
fair market value of the stock on the date of grant, as determined by the Board
of Directors, if the Common Stock is not publicly traded.

      (c)   Options Non-Transferable. Each option granted under the Plan by its
terms shall not be transferable by the optionee otherwise than by will, or by
the laws of descent and distribution, or pursuant to a qualified domestic
relations order (as defined in Section 414(p) of the Code), and shall be
exercised during the lifetime of the optionee only by him. No option or interest
therein may be transferred, assigned,

                                      -2-
<PAGE>
pledged or hypothecated by the optionee during his lifetime, whether by
operation of law or otherwise, or be made subject to execution, attachment or
similar process.

      (d)   Exercise Period. Each option shall vest and be exercisable on a
cumulative basis as to one-third of the shares subject to such option on each of
the first, second and third Anniversary Dates of the grant of such option;
provided that subject to the provisions of Sections 5(e) and 5(f), no option may
be exercised more than 90 days after the optionee ceases to serve as a director
of the Company and such option may then only be exercised for the purchase of
such number of shares as were vested and exercisable at the time of such
termination; provided, further, however, that if the director shall become an
employee of the Company and in connection with such employment he ceases to
serve as a director, all options granted to him as a director shall continue to
vest during the period that he is so employed and shall be exercisable (i) no
later than 90 days after such employment terminates and (ii) for the purchase of
such number of shares as were vested at the time of such termination; or if such
employment terminates by reason of his death or disability, such options shall
be exercisable for such number of shares and for such period as is provided in
Section 5(f). No option shall be exercisable after the expiration of ten (10)
years from the date of grant or prior to approval of the Plan by the
stockholders of the Company.

      (e)   Exercise Period Upon Retirement. Notwithstanding the provisions of
Section 5(d), in the event an optionee ceases to be a director by reason of
retirement of the optionee as a director at the retirement age determined by the
Company or by reason of the Company's failure to nominate the optionee for
reelection as a director (other than for such director's refusal to serve as a
director), each option then held by such director shall, at the time he or she
ceases to be a director, be exercisable for that number of shares of Common
Stock which equals the sum of (i) the shares which are then vested and
exercisable and (ii) the shares which would otherwise become vested and
exercisable at the next succeeding Anniversary Date.

      (f)   Exercise Period Upon Death or Disability. Notwithstanding the
provisions of Section 5(d), any option granted under the Plan:

            (i)   may be exercised in full by an optionee who becomes disabled
      (within the meaning of Section 22(e)(3) of the Code or any successor
      provision thereto) while serving as a director of the Company; or

            (ii)  may be exercised

                  (x)   in full upon the death of an optionee while serving as a
            director of the Company, or

                                       -3-
<PAGE>
                  (y)   to the extent then exercisable upon the death of an
            optionee within 90 days of ceasing to serve as a director of the
            Company,

            by the person to whom it is transferred by will, by the laws of
            descent and distribution, or by written notice filed pursuant to
            Section 5(i);

in each such case within the period of one year after the date the optionee
ceases to be such a director by reason of such death or disability; provided,
that no option shall be exercisable after the expiration of ten (10) years from
the date of grant or prior to the approval of the Plan by the stockholders of
the Company.

      (g)   Exercise Procedure. Options may be exercised only by written notice
to the Company at its principal office accompanied by payment of the full
consideration for the shares as to which they are exercised.

      (h)   Payment of Purchase Price. Options granted under the Plan may
provide for the payment of the exercise price (i) by delivery of cash or a check
to the order of the Company in an amount equal to the exercise price of such
options or, (ii) to the extent provided in the applicable option agreement, by
delivery to the Company of shares of Common Stock of the Company already owned
by the optionee having a fair market value equal in amount to the exercise price
of the options being exercised, or (iii) by any combination of such methods of
payment. The fair market value of any shares of the Company's Common Stock which
may be delivered upon exercise of an option shall be determined by the Board of
Directors.

      (i)   Exercise by Representative Following Death of Director. A director,
by written notice to the Company, may designate one or more persons (and from
time to time change such designation) including his legal representative, who,
by reason of his death, shall acquire the right to exercise all or a portion of
the option. If the person or persons so designated wish to exercise any portion
of the option, they must do so within the term of the option as provided herein.
Any exercise by a representative shall be subject to the provisions of the Plan.

      (j)   Deferral of Shares Issuable Upon Exercise. A director may elect, at
the discretion of, and in accordance with rules to be established by the Board,
to defer receipt of any shares of Common Stock issuable upon the exercise of an
option, provided that such election is irrevocable and made at least that number
of days prior to the exercise of the option that shall be determined by the
Board or the Committee. The director's account under the Analog Devices, Inc.
Deferred Compensation Plan shall be credited with a number of stock units equal
to the number of shares so deferred.

                                      -4-
<PAGE>
6.    ASSIGNMENTS

      The rights and benefits under the Plan may not be assigned except for the
designation of a beneficiary as provided in Section 5.

7.    TIME FOR GRANTING OPTIONS

      All options for shares subject to the Plan shall be granted, if at all,
not later than ten (10) years after the approval of the Plan by the Company's
stockholders.

8.    LIMITATION OF RIGHTS

      (a)   No Right to Continue as a Director. Neither the Plan, nor the
granting of an option nor 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.

      (b)   No Stockholders' Rights for Options. An optionee shall have no
rights as a stockholder with respect to the shares covered by his options until
the date of the issuance to him of a stock certificate therefor, and no
adjustment will be made for dividends or other rights for which the record date
is prior to the date such certificate is issued.

9.    CHANGES IN COMMON STOCK

      (a)   If (x) the outstanding shares of Common Stock are exchanged for a
different number or kind of shares or other securities of the Company, or (y)
the outstanding shares of Common Stock are increased or decreased as a result of
any recapitalization, reclassification, stock dividend or stock split (except
for the 3-for-2 stock split approved by the Board of Directors on November 29,
1994, which has been reflected in the Plan as adopted by the Board of Directors
on December 7,1994), reverse stock split or other similar transaction, an
appropriate and proportionate adjustment shall be made in (i) the maximum number
and kind of shares reserved for issuance under the Plan, and (ii) the number and
kind of shares or other securities subject to then outstanding options under the
Plan and (iii) the price for each share subject to any then outstanding options
under the Plan, without changing the aggregate purchase price as to which such
options remain exercisable. No fractional shares will be issued under the Plan
on account of any such adjustments. Notwithstanding the foregoing, no adjustment
shall be made pursuant to his Section 9 if such adjustment would cause the Plan
to fail to comply with Rule 16b-3 or any successor rule promulgated pursuant to
Section 16 of the Securities Exchange Act of 1934.

                                       -5-
<PAGE>
      (b)   If any event occurs that would constitute a "Change of Control"
within the meaning of clause (iii) or (iv) of Section 10 below, the Board of
Directors of the Company, or the board of directors of any corporation assuming
the obligations of the Company, shall, subject to the provisions of Section 10,
as to outstanding options, take one or more of the following actions: (i)
provide that such options shall be assumed, or equivalent options shall be
substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to the optionees, provide that all
unexercised options will terminate immediately prior to the consummation of such
transaction unless exercised by the optionee within a specified period following
the date of such notice, or (iii) if, under the terms of a merger transaction,
holders of the Common Stock of the Company will receive upon consummation
thereof a cash payment for each share surrendered in the merger (the "Merger
Price"), make or provide for a cash payment to the optionees equal to the
difference between (A) the Merger Price times the number of shares of Common
Stock subject to such outstanding options (to the extent then exercisable at
prices not in excess of the Merger Price) and (B) the aggregate exercise price
of all such outstanding options in exchange for the termination of such options.

10.   CHANGE IN CONTROL

      Notwithstanding any other provision to the contrary in this Plan, in the
event of a Change of Control (as defined below), all options outstanding as of
the date such Change in Control occurs shall become exercisable in full, whether
or not exercisable in accordance with their terms. A "Change in Control" shall
occur or be deemed to have occurred only if any of the following events occur:
(i) any "person," as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended, (other than the Company, any
trustee or other fiduciary holding securities under an employee benefit plan of
the Company, or any corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportion as their ownership of stock
of the Company) is or becomes the "beneficial owner" (as defined in Rule 13d-3
under the Securities Exchange Act of 1934), directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power
of the Company's then outstanding securities; (ii) individuals who, as of July
1, 1992, constitute the Board of Directors of the Company (as of the date
thereof, the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the date thereof whose election, or nomination for election by the Company's
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board (other than an election or nomination of an
individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the
Company, as such terms are used in Rule 14a-11 of Regulation 14A under the
Securities Exchange Act of 1934) shall be, for purposes of this Agreement,
considered as though such person were a member of the Incumbent Board; (iii) the
stockholders of the Company approve a merger or

                                      -6-
<PAGE>
consolidation of the Company with any other corporation, other than (A) a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation or (B) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no
"person" (as hereinabove defined) acquires more than 30% of the combined voting
power of the Company's then outstanding securities; or (iv) the stockholders of
the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially all
of the Company's assets."

11.   AMENDMENT OF THE PLAN

      The Board of Directors may suspend or discontinue the Plan or review or
amend it in any respect whatsoever; provided, however, that without approval of
the stockholders of the Company no revision or amendment shall change the number
of shares subject to the Plan (except as provided in Section 9), change the
designation of the class of directors eligible to receive options, or materially
increase the benefits accruing to participants under the Plan. The Plan may not
be amended more than once in any six-month period.

12.   WITHHOLDING

      The Company shall have the right to deduct from payments of any kind
otherwise due to the optionee any federal, state or local taxes of any kind
required by law to be withheld with respect to any shares issued upon exercise
of options under the Plan.

13.   EFFECTIVE DATE AND DURATION OF THE PLAN

      (a)   Effective Date. The Plan shall become effective when adopted by the
Board of Directors, but no option granted under the Plan shall become
exercisable unless and until the Plan shall have been approved by the Company's
shareholders. If such shareholder approval is not obtained within twelve months
after the date of the Board's adoption of the Plan, all options granted under
the Plan shall terminate and no further options shall be granted under the Plan.
Amendments to the Plan not requiring shareholder approval shall become effective
when adopted by the Board of Directors; amendments requiring shareholder
approval (as provided in Section 11) shall become effective when adopted by the
Board of Directors, but no option granted after the date of such amendment shall
become exercisable (to the extent that such amendment to the Plan was required
to enable the Company to grant such option to a particular optionee) unless and
until such amendment shall have been

                                      -7-
<PAGE>
approved by the Company's shareholders. If such shareholder approval is not
obtained within twelve months of the Board's adoption of such amendment, any
options granted on or after the date of such amendment shall terminate to the
extent that such amendment to the Plan was required to enable the Company to
grant such option to a particular optionee. Subject to this limitation, options
may be granted under the Plan at any time after the effective date and before
the date fixed for termination of the Plan.

      (b)   Termination. Unless sooner terminated in accordance with Section 9,
the Plan shall terminate upon the earlier of (i) the close of business on March
31, 2001, or (ii) the date on which all shares available for issuance under the
Plan shall have been issued pursuant to the exercise or cancellation of options
granted under the Plan. If the date of termination is determined under (i)
above, then options outstanding on such date shall continue to have force and
effect in accordance with the provisions of the instruments evidencing such
options.

14.   NOTICE

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

15.   COMPLIANCE WITH RULE 16B-3

      Transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successor promulgated pursuant to Section 16 of
the Securities Exchange Act of 1934. To the extent any provision of the Plan or
action by the Board of Directors in administering the Plan fails to so comply,
it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Board of Directors.

16.   GOVERNING LAW

      The Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the Commonwealth of Massachusetts.

                                             Approved by the Board of Directors
                                             on December 7,1994

                                             Approved by the Stockholders on
                                             March 14, 1995

                                      -8-
<PAGE>
1.    This Restatement of the 1994 Director Option Plan is dated as of March 11,
1998 (the "Restatement Date") and incorporates the 1st Amendment to the Plan,
adopted by the Board of Directors on December 3,1996; and the Second Amendment
to the plan, adopted by the Board of Directors on January 15, 1998 and approved
by the stockholders of the Company on March 10,1998. All share numbers have been
adjusted to reflect all stock splits effected by the Company through the
Restatement Date.

                                      -9-
<PAGE>
                              ANALOG DEVICES, INC.

                     AMENDMENT TO 1994 DIRECTOR OPTION PLAN

      Clause (ii) of Section 5(a) of the 1994 Director Option Plan be and hereby
is deleted and the following new clause (ii) is substituted in lieu thereof:

            "(ii) Each eligible director who is first elected or appointed to
                  serve on the Board after December 9,1998 shall be granted an
                  option to purchase 30,000 shares of Common Stock upon such
                  election or appointment."

      Approved by the Board of Directors on December 9,1998.
<PAGE>
                              ANALOG DEVICES, INC.

             SECOND AMENDMENT TO RESTATED 1994 DIRECTOR OPTION PLAN

      Subsection (c) of Section 5 of the Restated 1994 Director Option Plan be
and hereby is deleted and the following new Subsection (c) is substituted in
lieu thereof:

            "(c)  Transferability of Options. Except as the Board may otherwise
            determine or provide in an Option or an amendment to an outstanding
            Option, Options shall not be sold, assigned, transferred, pledged or
            otherwise encumbered by the person to whom they are granted, either
            voluntarily or by operation of law, except by will, or by the laws
            of descent and distribution, or pursuant to a qualified domestic
            relations order as defined in Section 414(p) of the Code, and during
            the life of the Optionee, shall be exercisable only by the Optionee.
            References to an Optionee, the extent relevant in the context, shall
            include references to authorized transferees."

      Approved by the Board of Directors on June 21, 2000.

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