Document:

Document

Exhibit 10.4
December 14, 2021

Gregory Bryant
17301 Canal Circle
Lake Oswego, OR 97035

Dear GB:
It is our great pleasure to offer you employment to join Analog Devices, Inc. (the “Company”) as Executive Vice President and President of Business Units, reporting to Vincent Roche, the Company’s President and Chief Executive Officer.  Your start date will be no later than March 14, 2022. 
Cash Compensation  
•Base Salary. You will be paid at the bi-weekly rate of $28,846.15, which is annualized at $750,000.  

•Bonus. In addition to your base salary, you will be eligible to participate in the Company’s Executive Performance Incentive Plan (the “Plan”), which is currently based on the Company’s overall financial performance.  Note that in the second half of FY22, we expect to add a personal component to the bonus achievement calculation for all executives.  Your bonus target under the Plan will be 150% of your base salary.  You are eligible to participate in the Plan beginning on the first date of your employment.  Bonuses are paid out semiannually, in June and December of each year.

•First year bonus guarantee.  For fiscal year 2022 only, we will guarantee that your bonus will pay out at a minimum of 1.4X, prorated to your start date.  For purposes of clarity, if ADI’s bonus payout for the full year to all employees is at a factor of 1.4X or greater, you will receive a bonus paid at the applicable rate to all employees.  However, in the event that the factor for ADI’s bonus payout is less than 1.4X for the full 2022 fiscal year, then we will pay you an amount equal to the difference between the full year payout factor and the 1.4X target.  If this payment is due to you, we will pay the amount in December 2022, on the same date as we pay all U.S. employees their second-half bonus.
Equity Grants
Sign on Equity Grant.  You will receive equity awards with an aggregate grant date value of $24 million under the terms of the Analog Devices, Inc. 2020 Equity Incentive Plan (the “EIP”).  These awards will be comprised of the following:

Analog Devices, Inc. | One Analog Way | Wilmington, MA 018876 | U.S.A | Tel: 781.329.4700

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A restricted stock unit award (“RSU award”) with a grant date value of $5 million, vesting in equal annual installments of 25% per year of the total RSU awarded, beginning on the first anniversary of the grant date.

•An RSU award with a grant date value of $5 million, vesting in full on the third anniversary of the grant date.

•A performance-based RSU award (“PRSU award” and, together with the RSU awards, the “Sign-On Awards”) with a grant date value of $14 million. The number of shares subject to the PRSU award that may be earned will range from 0% to a maximum of 150% of the target amount, and will vest subject to the attainment of the following target share price thresholds during the four-year performance period following the grant date:

◦75% of the shares subject to the PRSU award will vest if the average closing stock price of the Company’s Common Stock over 70 consecutive trading days is equal to or exceeds $200 during the performance period; and 

◦the remaining 75% of the shares subject to the PRSU award will vest if the average closing stock price of the Company’s Common Stock over 70 consecutive trading days during the performance period is equal to or exceeds $220.
The grant date of these awards will be the 15th day of the month following the first date of your employment or the next trading day of the NASDAQ, as applicable.  
Calculation Methodology.  To determine the number of shares of equity awarded, the value of the award is divided by the fair market value (FMV) of each share award type. The FMV considers a variety of factors including the price and volatility of the Company’s stock around the time of the grant, the value of the dividend and interest rates, Monte Carlo simulations and Black-Scholes valuation methodology as applicable.
Post-Employment Vesting of Sign On Equity in Limited Circumstance.  If your employment with the Company is terminated without cause, the Sign-On Awards will continue to vest following the termination of your employment from the Company on the schedule set forth above.  The PRSU Award will vest according to achievement of the performance criteria set forth above. This post-employment vesting will be conditioned on your entering into a general release of all claims and separation agreement on the Company’s standard form.
Focal Grant.  At the Company’s next annual focal cycle (currently anticipated to be in April/May 2022), you will receive an equity award having an aggregate grant date value of $7.5 million. The equity award will be comprised of the same types of equity received by other executives reporting to the CEO.  Since 2019, our executive equity awards have been comprised of the following;

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•25% of the total grant date value in the form of stock options, which vest in equal installments over four years on each anniversary of the grant date; 

•25% of the total grant date value in the form of time-based RSUs, which vest in equal installments over four years on each anniversary of the grant date;

•25% of the total grant date value in the form of PRSUs, which vest in the range of 0% to 200% of the target award issued on the third anniversary of the grant date (based on the Company’s total shareholder return, or TSR, compared to the median TSR of a comparator group of companies over a three-year performance period); 

•25% of the total grant date value in the form of PRSUs, which vest in the range of 0% to 200% of the target award issued on the third anniversary of the grant date (based on the Company’s achievement of one-year, two-year cumulative and three-year cumulative operating profit over a corresponding one year, two-year cumulative and three-year cumulative performance period).
The Company’s Compensation Committee has full discretion in determining the composition of annual executive equity awards. There is no guarantee that the composition of executive equity awards in 2022 (or in subsequent years) will be identical to the formula and equity types described above.
Additional features of your employment at ADI. 
•You will be provided with the Company’s standard Employee Retention Agreement for executive officers which provides that, in the event of a Change of Control occurs, you will be paid an amount equal to the sum of (A) 299% of the higher of (i) your annual base salary in effect at the Date of Termination or (ii) your annual base salary in effect immediately prior to the Change of Control, plus (B) 299% of the aggregate cash bonuses paid or awarded to you in respect of the four fiscal quarters preceding the Date of Termination, plus (iii) the continuation of life, disability, dental, accident and group health insurance benefits for a period of 24 months. We will provide you with our form of Employee Retention Agreement prior to your start date. 

•You will be eligible for the Company’s Deferred Compensation Program and will receive further information regarding this benefit in the near future.  

•You will also be eligible to participate in various employee benefit programs, including group health, life, and disability insurance; and a retirement savings plan with a generous Company contribution beginning upon hire and participation in the Plan.  More detailed information about Analog’s benefit programs can be found at our Benefit for Life website at http://benefits.analog.com/adi-benefit-summaries.html. 

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The Company’s offer of employment is contingent upon verification of employment information provided in your employment process, successful completion of a background check as determined by the Company, proof of employment eligibility, and signing of our Employee Confidentiality and Developments Agreement, a copy of which will be separately provided to you before your start date.

Your employment relationship with Analog Devices will be on an “at will” basis.  This means either you or the Company may terminate the employment relationship at any time, for any reason, or without a reason, and without prior notice.  No one at the Company has the authority to alter your “at will” status other than the Chief Executive Officer, which in such cases must be done in a signed written agreement. 
This offer letter is not a contract.  The Company reserves the right to amend or terminate any of the above-described programs, plans, or policies at any time and from time to time.  This means that policies, compensation and benefits may be amended or terminated at the Company’s discretion. 
This offer of employment is not based on your possession of or access to any proprietary information belonging to your current or previous employers.  When you accept this offer of employment and join us, the Company directs that you do not disclose any such information or bring materials belonging to any former employer or use any such materials while in the Company’s employ.  Further, you represent and warrant to the Company that you are not bound by any restrictions or covenant not to compete that would prevent you from performing your expected job duties at the Company. 
GB, we believe you will be an excellent addition to the Analog Devices executive team and look forward to your starting with us.  We are certain you will find your employment with Analog Devices both challenging and rewarding. 
If you have any questions or concerns, please do not hesitate to contact me.  This offer letter expires on January 8, 2022.
Very truly yours, 

						
	By:	/s/ Margaret Seif

		Margaret Seif

		Senior Vice President and Chief People Officer

I accept the above offer and will begin my employment on     No later than March 14th           , 2022. 

															
	Signature:
	/s/ Gregory Bryant
		Date:
	01/05/2022
		Gregory BryantDocument

Exhibit 10.6

 ADI Executive Performance Incentive Plan

On April 4, 2022, the Compensation Committee of the Board of Directors of Analog Devices, Inc. (the “Company”) approved the terms of the ADI Executive Performance Incentive Plan effective May 1, 2022. All executive officers and other senior management selected by the Chief Executive Officer will participate in the ADI Executive Performance Incentive Plan. Bonus payments under the ADI Executive Performance Incentive Plan are calculated and paid as follows:

1. Each participant’s Bonus Target is obtained by multiplying his or her Base Salary by his or her Individual Target Bonus Percentage:

•Base Salary – the individual’s base pay during the applicable bonus period.

•Individual Target Bonus Percentage — a percentage of the individual’s Base Salary, determined individually for each participant by the Compensation Committee up to 200%, in the Compensation Committee’s sole discretion.

2. Each participant’s Bonus Target is then multiplied by the Bonus Payout Factor. The Bonus Payout Factor is equal to (A) 50% of the Bonus Payout Factor (as shown in the table below) based on the Company’s operating profit before tax (OPBT) as a percentage of revenue for the applicable quarter plus (B) 50% of the Bonus Payout Factor (as shown in the table below) based on the Company’s revenue growth for the applicable quarter compared to the same quarter in the prior fiscal year.1  For purposes of the Executive Performance Incentive Plan, revenue will be measured on a sell-in basis (commonly referred to as POA revenue).  The calculations of revenue growth and OPBT as a percentage of revenue are adjustable by the Compensation Committee in its sole discretion to take account of special items, including but not limited to: restructuring-related expense, acquisition- or disposition-related items, non-recurring royalty payments or receipts, and other similar non-cash or non-recurring items. If OPBT is equal to or less than 40% of revenue for the applicable quarter, the Bonus Payout Factor shall be zero for that quarter, even if the Company has revenue growth for that quarter. The Bonus Payout Factor can range from 0% to 300%.

The following Bonus Payout Factor tables apply under the Executive Performance Incentive Plan:

															
	ADI Bonus Plan Targets
	OPBT		REVENUE
	OPBT by Qtr.	Payout Factor		YTY Growth by Qtr.	Payout Factor
	≤ 40.0 %
	0		≤ 0 %
	0
	42.0 %	1.0 x		8.0 %	1.0 x
	45.0 %	2.0 x		15.0 %	2.0 x
	≥ 50.0 %
	3.0 x		≥ 22%
	3.0 x
	

If OPBT <= 40% the entire bonus will pay at 0% regardless of revenue attainment

1 In order to facilitate a comparison of fiscal quarters for purposes of the revenue growth element of the plan, all 14-week quarters will be normalized to a 13-week quarter.

The Bonus Payout Factor is determined quarterly and will be linearly interpolated between the values specified in the tables above. For example, if OPBT for a quarter is 43.5% of revenue (which would result in a Bonus Payout Factor of 150% for that element) and revenue growth for the quarter compared to the same quarter in the prior fiscal year was 4.0% (which would result in a Bonus Payout Factor of 50% for that element), then the Bonus Payout Factor for the quarter would be 100% which is the sum of 50% of the OPBT payout factor of 150% and 50% of the revenue growth payout factor of 50%. The Bonus Payout Factor is calculated in the same manner under the Company’s ADI Corporate Bonus Plan for all eligible employees.

A participant’s bonus for a quarter shall be equal to the product obtained by multiplying a participant’s Bonus Target for the quarter by the Bonus Payout Factor for that quarter. Each participant’s Bonus Payment can range from zero to three times his or her Bonus Target.

         3.     The ADI Executive Performance Incentive Plan is a discretionary plan, and the Compensation Committee reserves the right to modify it or reduce a Bonus Payout Factor (including the right not to make bonus payments at all) or terminate it at any time, with or without notice, subject to and in accordance with applicable local law. This Plan remains in effect until otherwise changed, amended, suspended, or terminated by the Company in accordance with applicable law.

4. Bonus payments, if any, under the ADI Executive Performance Incentive Plan will be calculated at the end of each fiscal quarter and distributed after the fiscal second quarter on or before June 30 and fiscal fourth quarter on or before December 31.

5. Participants are eligible for a bonus payment if they are actively employed by the Company on the applicable bonus payment date. This means, any bonus payment is not earned until the payout date, which is determined by the Compensation Committee, at its sole discretion. Bonus payments, if any, are prorated based on start date. 

        6. If the Company is required pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or otherwise by applicable law or regulation to develop and implement a policy providing for the recovery from a participant of any payment under the Executive Performance Incentive Plan, the payment will be subject to recovery in accordance with such clawback policy.

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