Document:

ADI-01.31.2015-Ex 10.2

Exhibit 10.2

	
		
	

Hittite Microwave Corporation
2 Elizabeth Drive
Chelmsford, Massachusetts 01824
	

 
August 27, 2013
 
Rick D. Hess                                           
65 Village Road
Westford, MA 01886
Dear Rick, 
Reference is made to the employment agreement dated March 13, 2013 between Hittite Microwave Corporation (“Hittite” or the “Company”) and you (the “Employment Agreement”). This is to confirm our agreement that, in order to correct a clerical error in Appendix A to the Employment Agreement as executed on March 13, 2013, relating to the conditions for vesting of the Retention Award described therein,the Employment Agreement shall be, and it is hereby, amended by replacing such Appendix A with the corrected version of Appendix A in the form attached to this letter.

Except as expressly amended hereby, the Employment Agreement shall remain in force and be given effect in accordance with its terms. 

Please confirm that this letter correctly sets forth our agreement by signing where indicated below and returning an executed copy of this offer to me at your earliest convenience. 
 
	
	
	 

	Sincerely,

	 

	/s/ Franklin Weigold

	Franklin Weigold

	 

	Chairman of the Board

Acknowledged and agreed:. 
 
	
							
	 
	 
	 
	 
	 
	 
	 

	/s/ Rick D. Hess
	 
	 
	 
	August 27, 2013
	 
	 

	Rick D. Hess
	 
	 
	 
	Date
	 
	 

	 
	 
	 
	 

cc: HR file 
 

Appendix A to offer letter 
 
Retention Award Vesting Conditions

The Retention Award will vest on the fourth anniversary of the date of grant of the award (the “Vesting Date”), provided that you are employed by the Company on that date, with the number of shares that vest, if any, being determined as follows: 

At the conclusion of the four-year period ending on the Vesting Date (the “Measurement Period”), the total shareholder return (as defined below) (“TSR”) of the Company’s common stock over the Measurement Period will be calculated in a manner specified in the award agreement and ranked by percentile in relation to the TSRs of a representative group of public semiconductor companies, including the Company, selected by the Compensation Committee (the “Comparison Group”), calculated in the same manner over the Measurement Period.

		
	•
	If the Company’s TSR is below the 25th percentile of the Comparison Group, no shares will vest; 

		
	•
	If the Company’s TSR is at the 50th percentile of the Comparison Group, the number of shares as to which the award will vest will be equal to [insert number of shares having an aggregate value on the date of grant equal to$1.5 million] (the “Target Award”);

		
	•
	If the Company’s TSR is positive (the “Positive TSR Condition”) and is at or above the 75th percentile of the Comparison Group, a number of shares equal to 200% of the Target Award will vest;  provided ,that  in no event will the number of shares that vest exceed that number of shares as have an aggregate market value on the Vesting Date, determined by reference to the closing price of the Company’s Common Stock on the Vesting Date, as reported by Nasdaq, equal to $4.5 million (the “Share Cap”);

		
	•
	If the Company’s TSR is between the 25th percentile and the 50th percentile, the number of shares that will vest will be determined by linear interpolation, consistent with the following illustration:

- 2 -    

	
			
	Company TSR 
at the stated percentile
	Percentage of 
Target Award Issued

	At or below 25th
	0
	%

	30th
	20
	%

	35th
	40
	%

	40th
	60
	%

	45th
	80
	%

	50th
	100
	%

		
	•
	If the Company’s TSR is above the 50th percentile, the number of shares that vest will be determined by linear interpolation, consistent with the following illustration, and subject to the limitations that (a) no shares in excess of the Target Award shall vest if the Positive TSR Condition is not met, and (b) in no event will the number of shares that vest exceed the Share Cap:

	
			
	Company TSR
at the stated percentile
	Percentage of 
Target Award Issued

	50th
	100
	%

	55th
	120
	%

	60th
	140
	%

	65th
	160
	%

	70th
	180
	%

	75th  or above
	200
	%

- 3 -ADI-1.31.2015-Ex 10.6

Exhibit 10.6

October 31, 2014
Rick D. Hess
Analog Devices, Inc.
2 Elizabeth Drive
Chelmsford, MA 01824
Dear Rick:
     In connection with your promotion effective November 2, 2014, Analog Devices, Inc. (“Analog”) wishes to extend to you certain cash severance protections that are comparable in amount to those in place for its other executive officers.  The new protections take into account your current protections under your employment agreement with Analog as amended through June 9, 2014 and assigned to Analog by Hittite Microwave Corporation and your welcome letter dated July 23, 2014 (collectively, the “Employment Agreement”).  By signing this amendment (the “Fifth Amendment”), you agree to the modifications to the Employment Agreement set forth below.  Except as set forth below or other separately communicated changes in connection with your promotion, the terms of your Employment Agreement remain in full force and effect.

1.    Addition of Certain Change in Control Benefits.  Under this Fifth Amendment, you will be entitled to additional severance benefits  (“Supplemental Severance”) if your employment ends for a Good Reason (as defined in and governed by the Employment Agreement) or another Involuntary Termination (as defined in the Employment Agreement and excluding death and disability) on or before the date 24 months (the “CIC Coverage Period”) following the closing of a Change in Control (a “Qualifying Termination”).  In addition, your equity compensation from Analog will be treated in a similar manner as that for other senior executive officers (with double-trigger acceleration after a change in control as defined in the documents governing such equity compensation).  The Supplemental Severance is in addition to any other severance to which you may be entitled under the Employment Agreement.
A “Change in Control” for this Fifth Amendment will use the same definition as in the Employment Agreement, except that (x) the “Company” will be Analog, (y) the triggers in clauses (b) (re merger) and (c) (re sale of assets) in such definition will occur in connection with the closing of those transactions rather than shareholder approval, and (z) if and to the extent required for Code Section 409A, the Change in Control must also be a change in control event as set forth in Treas. Reg. § 1.409A‐3(i)(5).  For the avoidance of doubt, your simply quitting during the CiC Coverage Period without a Qualifying Termination will entitle you to the severance under the Employment Agreement (if after July 23, 2016) but not to the Supplemental Severance.  
2.    Specifics of the Supplemental Severance. If a Qualifying Termination occurs during the Term (as defined below), you will, in addition, to any severance to which you might 

be entitled under the Employment Agreement before this amendment, receive as Supplemental Severance:
(a)    a lump sum payment in an amount equal to the excess, if any, of (x) 299% of the higher of (i) your annual base salary in effect on the effective date of the Qualifying Termination or (ii) your annual base salary in effect immediately prior to the Change in Control over (y) the severance component in Section 10(a)(i) of the Employment Agreement (as amended by the second amendment to such agreement, “Amended Section 10(a)”),
(b)    a lump sum payment of the excess, if any, of (x) 299% of the aggregate cash bonuses paid or awarded to you in respect of the four fiscal quarters preceding the effective date of the Qualifying Termination over (y) the severance component in lieu of a bonus that is described in Amended Section 10(a)(ii)(B);
(c)    payment by Analog of all legal fees and expenses (excluding any taxes) incurred by you as a result of such termination (including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Fifth Amendment or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) to any payment or benefit provided hereunder); and
(d)    in lieu of the Continuation Benefits in the Employment Agreement (and if and to the extent permitted by applicable law without the imposition of penalties on you or Analog), Analog’s arranging to provide you for 24 months with life, disability, dental, accident and group health insurance benefits substantially similar to those which you were receiving immediately prior to the effective date of the Qualifying Termination. Notwithstanding the foregoing, Analog will not provide any benefit otherwise receivable by you pursuant to this paragraph 2(d) if an equivalent benefit is actually received by you during the 24 month period following your termination, and you must report any such benefit actually received to Analog.
The Supplemental Severance is subject to the release requirements of the Employment Agreement, with payment to be made or, for installments, begin on the timing specified in the Employment Agreement.
3.    Term.  As with the other executives, the additional protection provided by this Fifth Amendment will remain in place through September 30, 2015 (the “Term”); provided, however, that commencing on September 30, 2015 and each September 30 thereafter, the Term will be automatically extended for one additional year unless, not later than June 30 of such year, Analog gives you written notice that the Term will not be extended; and provided further that, if a Change in Control has occurred during the original or extended Term, the Fifth Amendment and the Term will continue in effect for a period of not less than 24 months beyond the month in which such Change in Control occurred.

Sincerely,
ANALOG DEVICES, INC.

By:  /s/ Vincent T. Roche
Name: Vincent T. Roche
Title: President and Chief Executive Officer

I have carefully read this amendment, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign my name of my own free act.

/s/ Rick D. Hess                Date:  October 20, 2014
Rick D. Hess

ActiveUS 136792920v.3

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