Document:

LINEAR TECHNOLOGY CORPORATION

                      CLIVE B. DAVIES EMPLOYMENT AGREEMENT

         This  Agreement is made by and between  Linear  Technology  Corporation
(the "Company") and Clive B. Davies ("Executive").

         1. Duties and Scope of Employment.

                  (a) Position; Agreement Commencement Date; Duties. Executive's
coverage  under this  Agreement  shall commence upon the date this Agreement has
been  signed  by  both  parties  hereto  (the  "Agreement  Commencement  Date").
Following the Agreement  Commencement Date, Executive shall continue to serve as
President of the Company,  reporting to the Chief Executive Officer.  The period
of  Executive's  employment  hereunder is referred to herein as the  "Employment
Term."  During the  Employment  Term,  Executive  shall render such business and
professional  services  in  the  performance  of  his  duties,  consistent  with
Executive's  position within the Company, as shall reasonably be assigned to him
by the Chief Executive Officer.

                  (b) Obligations.  During the Employment Term,  Executive shall
devote his full  business  efforts and time to the  Company.  Executive  agrees,
during the  Employment  Term,  not to actively  engage in any other  employment,
occupation  or  consulting  activity  for any  direct or  indirect  remuneration
without  the  prior  approval  of the Board of  Directors  of the  Company  (the
"Board");  provided,  however, that Executive may serve in any capacity with any
civic,  educational  or  charitable  organization,  or as a member of  corporate
Boards of Directors or  committees  thereof,  without the approval of the Board,
unless such service involves a conflict of interest with the Company's business.

                  (c) Employee Benefits.  During the Employment Term,  Executive
shall be eligible to participate in the employee benefit plans maintained by the
Company  that are  applicable  to other  senior  management  to the full  extent
provided for under those plans.

         2.  At-Will  Employment.  Executive  and  the  Company  understand  and
acknowledge that Executive's  employment with the Company constitutes  "at-will"
employment. Subject to the Company's obligation to provide severance benefits as
specified  herein,  Executive and the Company  acknowledge  that this employment
relationship  may be  terminated at any time,  upon written  notice to the other
party,  with or without good cause or for any or no cause,  at the option either
of the Company or Executive.

         3. Compensation.

                  (a) Base Salary.  While  employed by the Company,  the Company
shall pay the  Executive as  compensation  for his services a base salary at the
annualized  rate of $305,000  (the "Base  Salary").  Such  salary  shall be paid
periodically in accordance with normal Company payroll  practices and subject to
the usual,  required  withholding.  Executive's  Base  Salary  shall be reviewed
annually by the Compensation  Committee of the Board for possible adjustments in
light of Executive's performance and competitive data.

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                  (b)  Bonuses.  Executive  shall be  eligible  to earn a target
bonus under the Company's 1996 Senior Executive Bonus Plan as specified annually
by the  Compensation  Committee  of the  Board  and  will  also be  eligible  to
participate in the Key Employee  Incentive  Bonus Plan (the target amounts under
these plans, added together, are referred to herein as the "Target Bonus").

                  (c)  Severance  Prior to a Change of Control.  If, at any time
prior to a Change of Control (as defined  herein),  Executive's  employment with
the Company terminates due to (i) a voluntary  termination for "Good Reason" (as
defined  herein)  where the  grounds  for the Good  Reason  are not cured by the
Company  within 90 days  following  receipt of  written  notice  specifying  the
grounds from Executive,  or (ii) an involuntary termination by the Company other
than for "Cause" (as defined herein),  then, subject to Executive  executing and
not  revoking a standard  form of mutual  release of claims with the Company and
not breaching  the terms of Section 11 hereof,  (i) all of  Executive's  Company
stock options and restricted stock shall  immediately  accelerate  vesting as to
the amount of shares as would have vested had Executive remained employed by the
Company an  additional  six  months,  (ii)  Executive  shall  receive  continued
payments  of  six  month's  Base  Salary  plus  50% of his  Target  Bonus,  less
applicable  withholding,  in  accordance  with the  Company's  standard  payroll
practices  (the  "Severance  Payment"),  (iii) the  Company  shall pay the group
health and dental plan  continuation  coverage  premiums for  Executive  and his
covered dependents under Title X of the Consolidated  Budget  Reconciliation Act
of 1985, as amended ("COBRA") for the lesser of (A) six (6) months from the date
of Executive's  termination of employment,  or (B) the date upon which Executive
and his covered  dependents  are  covered by similar  plans of  Executive's  new
employer (the "COBRA Coverage").

         For  purposes  of this  Agreement,  "Cause"  shall  mean  (i) an act of
personal  dishonesty taken by Executive in connection with his  responsibilities
as an employee  and intended to result in  substantial  personal  enrichment  of
Executive,  (ii) Executive  being convicted of, or plea of nolo contendere to, a
felony,  (iii) a willful act by Executive which constitutes gross misconduct and
which is  injurious to the Company,  (iv)  following  delivery to Executive of a
written demand for  performance  from the Company which  describes the basis for
the Company's  reasonable belief that Executive has not substantially  performed
his duties,  continued violations by Executive of Executive's obligations to the
Company which are demonstrably willful and deliberate on Executive's part.

         For  purposes  of  this   Agreement,   "Good  Reason"  means,   without
Executive's  express consent,  (i) a material  reduction of Executive's  duties,
title,  authority or  responsibilities,  relative to Executive's duties,  title,
authority or  responsibilities as in effect immediately prior to such reduction,
or the  assignment  to  Executive of such reduced  duties,  title,  authority or
responsibilities  (ii) a material  reduction,  of the facilities and perquisites
(including office space and location)  available to Executive  immediately prior
to such  reduction,  other than a reduction  generally  applicable to all senior
management  of the Company;  (iii) a reduction by the Company in the Base Salary
of  Executive as in effect  immediately  prior to such  reduction  (other than a
reduction  that  generally  applies  to  Company  employees);  (iv)  a  material
reduction by the Company in the aggregate level of employee benefits,  including
Target  Bonuses,  to which  Executive  was  entitled  immediately  prior to such
reduction  with the  result  that  Executive's  aggregate  benefits  package  is
materially  reduced(other  than a reduction  that  generally  applies to Company
employees);  (v) the  relocation  of Executive to a facility or a location  more
than thirty-five (35) miles from Executive's then present location;  or

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(vi) any act or set of facts or circumstances which would, under California case
law or statute constitute a constructive termination of Executive.

          For  purposes of this  Agreement,  "Change of Control"  shall mean the
occurrence of any of the following  events in either a single  transaction  or a
series  of  related  transactions:

                  (i) Any "person"  (as such term is used in Sections  13(d) and
14(d)  of  the  Securities  Exchange  Act  of  1934,  as  amended)  becomes  the
"beneficial  owner"  (as  defined in Rule 13d-3  under  said Act),  directly  or
indirectly,  of  securities of the Company  representing  fifty percent (50%) or
more of the total voting power  represented  by the Company's  then  outstanding
voting securities; or

                  (ii)  The  consummation  of the  sale  or  disposition  by the
Company of all or substantially all the Company's assets; or

                  (iii) The  consummation  of a merger or  consolidation  of the
Company with any other corporation,  other than 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) at least fifty
percent (50%) of the total voting power  represented by the voting securities of
the Company or such surviving entity  outstanding  immediately after such merger
or consolidation; or

                  (iv) A change in the composition of the Board occurring within
a two-year  period,  as a result of which fewer than a majority of the directors
are Incumbent Directors.  "Incumbent  Directors" shall mean directors who either
(A) are  directors of the Company as of the date upon which this  Agreement  was
entered into, or (B) are elected,  or nominated for election,  to the Board with
the  affirmative  votes of at least a majority of those directors whose election
or  nomination  was  not  in  connection  with  any  transaction   described  in
subsections  (i),  (ii),  or (iii)  above,  or in  connection  with an actual or
threatened proxy contest relating to the election of directors to the Company.

         (d) The  Executive  shall not be required to mitigate  the value of any
severance benefits  contemplated by this section, nor shall any such benefits be
reduced by any  earnings or benefits  that the  Executive  may receive  from any
other source;  provided,  however, that if Executive receives severance benefits
hereunder, he expressly waives the right to receive severance benefits under any
other severance plan or policy of the Company.

         (e)  Severance on or  Following a Change of Control.  If, on or after a
Change of Control (as defined herein),  Executive's  employment with the Company
terminates  due to (i) a  voluntary  termination  for "Good  Reason" (as defined
herein)  where the  grounds  for the Good  Reason  are not cured by the  Company
within 30 days following  receipt of written notice  specifying the grounds from
Executive,  or (ii) an  involuntary  termination  by the Company  other than for
"Cause"  (as defined  herein),  then,  subject to  Executive  executing  and not
revoking a standard  form of mutual  release of claims  with the Company and not
breaching the terms of Section 11 hereof,  (i) all of Executive's  Company stock
options and restricted stock shall immediately  accelerate  vesting as to 50% of
the then unvested shares, (ii) Executive shall receive continued payments of one
year's Base Salary plus 50% of his Target Bonus, less applicable withholding, in
accordance  with  the  Company's  standard  payroll  practices  (the  "Severance
Payment"),  (iii) the  Company  shall  pay

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the group health and dental plan  continuation  coverage  premiums for Executive
and  his  covered   dependents  under  Title  X  of  the   Consolidated   Budget
Reconciliation  Act of 1985,  as amended  ("COBRA") for the lesser of (A) twelve
(12) months from the date of Executive's  termination of employment,  or (B) the
date upon which  Executive  and his  covered  dependents  are covered by similar
plans of Executive's new employer (the "COBRA Coverage").

                  The  Executive  shall not be required to mitigate the value of
any severance benefits contemplated by this section, nor shall any such benefits
be reduced by any earnings or benefits  that the  Executive may receive from any
other source;  provided,  however, that if Executive receives severance benefits
hereunder, he expressly waives the right to receive severance benefits under any
other severance plan or policy of the Company.

                  (f)  Voluntary   Termination   Other  than  for  Good  Reason;
Involuntary  Termination for Cause.  In the event that Executive  terminates his
employment voluntarily other than for Good Reason or is involuntarily terminated
by the Company  for Cause,  then all vesting of  Executive's  stock  options and
restricted stock shall terminate immediately and all payments of compensation by
the Company to Executive  hereunder shall  immediately  terminate  (except as to
amounts already earned).

         4. Death or Total Disability of Executive.

                  (a)  Death.  Upon  Executive's  death  while  Executive  is an
employee or  consultant  of the Company,  then (i)  employment  hereunder  shall
automatically  terminate,  (ii) all of  Executive's  Company  stock  options and
restricted  stock  shall  immediately  accelerate  vesting as to 50% of the then
unvested  shares,  and all subsequent  vesting of Executive's  stock options and
restricted  stock  shall  terminate  immediately,  and  (iii)  all  payments  of
compensation by the Company to Executive  hereunder shall immediately  terminate
(except as to amounts already earned).

                  (b)  Disability.  Upon  Executive's  becoming  permanently and
totally  disabled (as defined in accordance  with Internal  Revenue Code Section
22(e)(3)  or  its  successor  provision)  while  Executive  is  an  employee  or
consultant  of  the  Company,  then  employment  hereunder  shall  automatically
terminate and all payments of compensation by the Company to Executive hereunder
shall  immediately  terminate  (except as to amounts  already  earned),  and all
vesting of  Executive's  stock  options and  restricted  stock  shall  terminate
immediately.

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<PAGE>

         5. Golden Parachute Excise Taxes.

                  (a) Parachute Payments of Less than 3.59 x Base Amount. In the
event that the benefits  provided for in this agreement or otherwise  payable to
Executive (a) constitute "parachute payments" within the meaning of Section 280G
of the Internal  Revenue Code of 1986,  as amended  (the  "Code"),  (b) would be
subject  to the excise tax  imposed  by  Section  4999 of the Code,  and (c) the
aggregate  value of such parachute  payments,  as determined in accordance  with
Section 280G of the Code and the proposed  Treasury  Regulations  thereunder (or
the final Treasury Regulations, if they have then been adopted) is less than the
product  obtained by multiplying  3.59 by  Executive's  "base amount" within the
meaning of Code Section  280G(b)(3),  then such benefits shall be reduced to the
extent  necessary  (but only to that extent) so that no portion of such benefits
will be subject to excise tax under Section 4999 of the Code.

                  (b)  Parachute  Payments  Equal to or Greater than 3.59 x Base
Amount.  In the  event  that the  benefits  provided  for in this  agreement  or
otherwise  payable to Executive (a) constitute  "parachute  payments" within the
meaning  of  Section  280G of the Code,  (b) would be  subject to the excise tax
imposed  by  Section  4999 of the  Code,  and (c) the  aggregate  value  of such
parachute  payments,  as determined in accordance  with Section 280G of the Code
and  the  proposed  Treasury  Regulations  thereunder  (or  the  final  Treasury
Regulations,  if they have then been  adopted)  is equal to or greater  than the
product  obtained by multiplying  3.59 by  Executive's  "base amount" within the
meaning of Code  Section  280G(b)(3),  then the  Executive  shall  receive (i) a
payment  from the  Company  sufficient  to pay such  excise  tax,  plus  (ii) an
additional payment from the Company sufficient to pay the excise tax and federal
and state income and  employment  taxes  arising  from the payments  made by the
Company to Executive pursuant to this sentence.

                  (c) 280G Determinations.  Unless the Company and the Executive
otherwise  agree  in  writing,  the  determination  of  Executive's  excise  tax
liability  and the amount  required to be paid or reduced  under this  Section 5
shall be made in writing by the Company's independent auditors who are primarily
used  by  the  Company   immediately   prior  to  the  Change  of  Control  (the
"Accountants"). For purposes of making the calculations required by this Section
5, the Accountants may make reasonable assumptions and approximations concerning
applicable  taxes  and  may  rely  on  reasonable,  good  faith  interpretations
concerning  the  application  of Sections 280G and 4999 of the Code. The Company
and  the  Executive  shall  furnish  to the  Accountants  such  information  and
documents  as  the  Accountants  may  reasonably  request  in  order  to  make a
determination  under  this  Section.  The  Company  shall  bear  all  costs  the
Accountants   may  reasonably   incur  in  connection   with  any   calculations
contemplated by this Section 5.

         6.  Assignment.  This Agreement  shall be binding upon and inure to the
benefit of (a) the heirs, beneficiaries,  executors and legal representatives of
Executive upon Executive's death and (b) any successor of the Company.  Any such
successor of the Company shall be deemed  substituted  for the Company under the
terms of this  Agreement for all  purposes.  As used herein,  "successor"  shall
include any person,  firm,  corporation  or other  business  entity which at any
time, whether by purchase, merger or otherwise,  directly or indirectly acquires
all or substantially  all of the assets or business of the Company.  None of the
rights of Executive to receive any form of compensation payable pursuant to this
Agreement  shall be assignable or  transferable  except  through a  testamentary
disposition  or by the  laws of  descent  and  distribution  upon  the  death of
Executive. Any attempted

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assignment,  transfer, conveyance or other disposition (other than as aforesaid)
of any interest in the rights of  Executive to receive any form of  compensation
hereunder shall be null and void.

         7. Notices.  All notices,  requests,  demands and other  communications
called  for  hereunder  shall be in  writing  and shall be  deemed  given if (i)
delivered  personally  or by  facsimile,  (ii) one (1) day after  being  sent by
Federal Express or a similar commercial  overnight  service,  or (iii) three (3)
days  after  being  mailed by  registered  or  certified  mail,  return  receipt
requested,  prepaid and addressed to the parties or their successors in interest
at the  following  addresses,  or at such other  addresses  as the  parties  may
designate by written notice in the manner aforesaid:

         If to the Company:             Linear Technology Corporation
                                        720 Sycamore Drive
                                        Milpitas, CA  95035
                                        Attn: General Counsel

         If to Executive:               Clive B. Davies
                                        at the last residential address
                                        known by the Company.

         8.  Severability.  In the event that any provision hereof becomes or is
declared by a court of competent  jurisdiction to be illegal,  unenforceable  or
void,  this  Agreement  shall  continue  in full force and effect  without  said
provision.

         9. Entire Agreement.  This Agreement,  the Confidential Information and
Invention  Assignment  Agreement  previously  entered  into by and  between  the
Company and Executive and the indemnification  agreement previously entered into
by and between the Company and  Executive  represent  the entire  agreement  and
understanding   between  the  Company  and  Executive   concerning   Executive's
employment  relationship with the Company, and supersede and replace any and all
prior   agreements  and   understandings   concerning   Executive's   employment
relationship with the Company.

         10. Dispute Resolution.

                  (a) The parties shall first meet to settle any dispute through
good faith  negotiation or non-binding  mediation.  If not settled by good faith
negotiation or non-binding mediation between the parties within 30 days from the
date one party  requests in writing to meet the other party,  then to the extent
permitted by law, any dispute or controversy  arising out of, relating to, or in
connection with this Agreement, or the interpretation,  validity,  construction,
performance,  breach, or termination thereof shall be finally settled by binding
arbitration to be held in Santa Clara County, California, in accordance with the
National Rules for the  Resolution of Employment  Disputes then in effect of the
American  Arbitration  Association  (the  "Rules").  The  arbitrator  may  grant
injunctions or other relief in such dispute or controversy.  The decision of the
arbitrator shall be confidential,  final,  conclusive and binding on the parties
to the  arbitration.  Judgment may be entered  under a  protective  order on the
arbitrator's  decision in any court having  jurisdiction.  The Company shall pay
all costs of any mediation or arbitration;  provided,  however,  that each party
shall pay its own attorney and advisor fees.

                  (b) The arbitrator shall apply California law to the merits of
any  dispute  or claim,  without  reference  to rules of  conflict  of law.  The
arbitration  proceedings shall be governed by federal arbitration law and by the
Rules,  without reference to state  arbitration law.  Executive hereby

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expressly consents to the personal  jurisdiction of the state and federal courts
located in California  for any action or proceeding  arising from or relating to
this  Agreement  and/or  relating  to any  arbitration  in which the parties are
participants.

                  (c) Executive  understands that nothing in Section 10 modifies
Executive's  at-will  status.  Either the Company or Executive can terminate the
employment relationship at any time, with or without cause.

                  (d)  EXECUTIVE  HAS READ AND  UNDERSTANDS  SECTION  10,  WHICH
DISCUSSES  ARBITRATION.  EXECUTIVE  UNDERSTANDS  THAT BY SIGNING THIS AGREEMENT,
EXECUTIVE  AGREES,  TO THE EXTENT  PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS
ARISING  OUT OF,  RELATING  TO, OR IN  CONNECTION  WITH THIS  AGREEMENT,  OR THE
INTERPRETATION,  VALIDITY,  CONSTRUCTION,  PERFORMANCE,  BREACH,  OR TERMINATION
THEREOF TO BINDING  ARBITRATION,  AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A
WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL
DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

         11. Covenants Not to Compete and Not to Solicit.

                  (a) Covenant Not to Compete. If and only if Executive receives
severance  benefits  under either  Section 3(c) or 3(d) hereof,  then  Executive
agrees that, until the end of the six or twelve month severance benefits period,
as  applicable,  following the date of his  termination  of employment  with the
Company  for any  reason or no reason,  Executive  will not  directly  engage in
(whether  as  an  employee,   consultant,   proprietor,   partner,  director  or
otherwise),  or have any ownership interest in, or participate in the financing,
operation,  management or control of, any person, firm,  corporation or business
that  engages  or  participates  anywhere  in the world in  providing  goods and
services  similar to those  provided by the Company upon the date of Executive's
termination of employment.  Ownership of less than 3% of the outstanding  voting
stock of a corporation  or other entity will not  constitute a violation of this
provision.  The  Company  agrees  not  to  unreasonably  withhold  consent  from
Executive to engage in any activity that is not competitive with the Company.

                  (b) Covenant Not to Solicit. If and only if Executive receives
severance  benefits  under either  Section 3(c) or 3(d) hereof,  then  Executive
agrees that he will not, at any time  during the six or twelve  month  severance
benefits  period,  as applicable,  following his termination  date,  directly or
indirectly  solicit any individuals to leave the Company's employ for any reason
or interfere in any other manner with the employment  relationships  at the time
existing between the Company and its current or prospective employees.

                  (c)  Representations.  The parties  intend that the  covenants
contained  in Section  11(a) and (b) shall be  construed as a series of separate
covenants, one for each county, city and state (or analogous entity) and country
of the world.  If, in any judicial  proceeding,  a court shall refuse to enforce
any of the separate  covenants,  or any part  thereof,  then such  unenforceable
covenant,  or such part thereof,  shall be deemed eliminated from this Agreement
for the  purpose  of those  proceedings  to the extent  necessary  to permit the
remaining separate covenants, or portions thereof, to be enforced.

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                  (d)  Reformation.  In the event  that the  provisions  of this
Section 11 should ever be deemed to exceed the time or  geographic  limitations,
or scope of this  covenant,  permitted by applicable  law, then such  provisions
shall be reformed to the maximum time or geographic limitations, as the case may
be, permitted by applicable laws.

                  (e) Reasonableness of Covenants.  Executive represents that he
(i) is familiar with the covenants not to compete and solicit, and (ii) is fully
aware  of  his  obligations  hereunder,   including,   without  limitation,  the
reasonableness  of the length of time,  scope and  geographic  coverage of these
covenants.

                  (f)  Remedy for Breach by  Executive.  In the event  Executive
breaches  his  obligations  under this Section 11, the sole remedy shall be that
the Company may thereafter  discontinue  providing the severance  benefits under
Section 3(c) or 3(d) hereof that Executive would otherwise receive.

         12. No Oral Modification, Cancellation or Discharge. This Agreement may
only be amended,  canceled or discharged in writing  signed by Executive and the
Chairman of the Board.

         13. Withholding. The Company shall be entitled to withhold, or cause to
be withheld,  from payment any amount of withholding  taxes required by law with
respect  to  payments  made to  Executive  in  connection  with  his  employment
hereunder.

         14.  Governing Law. This Agreement shall be governed by the laws of the
State of California.

         15.  Effective  Date.  This Agreement is effective upon the date it has
been executed by both parties.

         16.  Acknowledgment.   Executive  acknowledges  that  he  has  had  the
opportunity  to discuss  this  matter  with and obtain  advice  from his private
attorney,  has  had  sufficient  time  to,  and has  carefully  read  and  fully
understands  all  the  provisions  of  this  Agreement,  and  is  knowingly  and
voluntarily entering into this Agreement.

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<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Agreement:

LINEAR TECHNOLOGY CORPORATION

------------------------------------------
Thomas Volpe

EXECUTIVE

------------------------------------------
Clive B. Davies

Date:__________________, 2001LINEAR TECHNOLOGY CORPORATION

                        PAUL COGHLAN EMPLOYMENT AGREEMENT

         This  Agreement is made by and between  Linear  Technology  Corporation
(the "Company") and Paul Coghlan ("Executive").

         1. Duties and Scope of Employment.

                  (a) Position; Agreement Commencement Date; Duties. Executive's
coverage  under this  Agreement  shall commence upon the date this Agreement has
been  signed  by  both  parties  hereto  (the  "Agreement  Commencement  Date").
Following the Agreement  Commencement Date, Executive shall continue to serve as
Vice  President,  Finance and Chief  Financial  Officer,  reporting to the Chief
Executive Officer. The period of Executive's employment hereunder is referred to
herein as the  "Employment  Term." During the Employment  Term,  Executive shall
render such business and professional services in the performance of his duties,
consistent with Executive's  position within the Company, as shall reasonably be
assigned to him by the Chief Executive Officer.

                  (b) Obligations.  During the Employment Term,  Executive shall
devote his full  business  efforts and time to the  Company.  Executive  agrees,
during the  Employment  Term,  not to actively  engage in any other  employment,
occupation  or  consulting  activity  for any  direct or  indirect  remuneration
without  the  prior  approval  of the Board of  Directors  of the  Company  (the
"Board");  provided,  however, that Executive may serve in any capacity with any
civic,  educational  or  charitable  organization,  or as a member of  corporate
Boards of Directors or  committees  thereof,  without the approval of the Board,
unless such service involves a conflict of interest with the Company's business.

                  (c) Employee Benefits.  During the Employment Term,  Executive
shall be eligible to participate in the employee benefit plans maintained by the
Company  that are  applicable  to other  senior  management  to the full  extent
provided for under those plans.

         2.  At-Will  Employment.  Executive  and  the  Company  understand  and
acknowledge that Executive's  employment with the Company constitutes  "at-will"
employment. Subject to the Company's obligation to provide severance benefits as
specified  herein,  Executive and the Company  acknowledge  that this employment
relationship  may be  terminated at any time,  upon written  notice to the other
party,  with or without good cause or for any or no cause,  at the option either
of the Company or Executive.

         3. Compensation.

                  (a) Base Salary.  While  employed by the Company,  the Company
shall pay the  Executive as  compensation  for his services a base salary at the
annualized  rate of $285,000  (the "Base  Salary").  Such  salary  shall be paid
periodically in accordance with normal Company payroll  practices and subject to
the usual,  required  withholding.  Executive's  Base  Salary  shall be reviewed
annually by the Compensation  Committee of the Board for possible adjustments in
light of Executive's performance and competitive data.
<PAGE>

                  (b)  Bonuses.  Executive  shall be  eligible  to earn a target
bonus under the Company's 1996 Senior Executive Bonus Plan as specified annually
by the  Compensation  Committee  of the  Board  and  will  also be  eligible  to
participate in the Key Employee  Incentive  Bonus Plan (the target amounts under
these plans, added together, are referred to herein as the "Target Bonus").

                  (c)  Severance  Prior to a Change of Control.  If, at any time
prior to a Change of Control (as defined  herein),  Executive's  employment with
the Company terminates due to (i) a voluntary  termination for "Good Reason" (as
defined  herein)  where the  grounds  for the Good  Reason  are not cured by the
Company  within 90 days  following  receipt of  written  notice  specifying  the
grounds from Executive,  or (ii) an involuntary termination by the Company other
than for "Cause" (as defined herein),  then, subject to Executive  executing and
not  revoking a standard  form of mutual  release of claims with the Company and
not breaching  the terms of Section 11 hereof,  (i) all of  Executive's  Company
stock options and restricted stock shall  immediately  accelerate  vesting as to
the amount of shares as would have vested had Executive remained employed by the
Company an  additional  six  months,  (ii)  Executive  shall  receive  continued
payments  of  six  month's  Base  Salary  plus  50% of his  Target  Bonus,  less
applicable  withholding,  in  accordance  with the  Company's  standard  payroll
practices  (the  "Severance  Payment"),  (iii) the  Company  shall pay the group
health and dental plan  continuation  coverage  premiums for  Executive  and his
covered dependents under Title X of the Consolidated  Budget  Reconciliation Act
of 1985, as amended ("COBRA") for the lesser of (A) six (6) months from the date
of Executive's  termination of employment,  or (B) the date upon which Executive
and his covered  dependents  are  covered by similar  plans of  Executive's  new
employer (the "COBRA Coverage").

         For  purposes  of this  Agreement,  "Cause"  shall  mean  (i) an act of
personal  dishonesty taken by Executive in connection with his  responsibilities
as an employee  and intended to result in  substantial  personal  enrichment  of
Executive,  (ii) Executive  being convicted of, or plea of nolo contendere to, a
felony,  (iii) a willful act by Executive which constitutes gross misconduct and
which is  injurious to the Company,  (iv)  following  delivery to Executive of a
written demand for  performance  from the Company which  describes the basis for
the Company's  reasonable belief that Executive has not substantially  performed
his duties,  continued violations by Executive of Executive's obligations to the
Company which are demonstrably willful and deliberate on Executive's part.

         For  purposes  of  this   Agreement,   "Good  Reason"  means,   without
Executive's  express consent,  (i) a material  reduction of Executive's  duties,
title,  authority or  responsibilities,  relative to Executive's duties,  title,
authority or  responsibilities as in effect immediately prior to such reduction,
or the  assignment  to  Executive of such reduced  duties,  title,  authority or
responsibilities  (ii) a material  reduction,  of the facilities and perquisites
(including office space and location)  available to Executive  immediately prior
to such  reduction,  other than a reduction  generally  applicable to all senior
management  of the Company;  (iii) a reduction by the Company in the Base Salary
of  Executive as in effect  immediately  prior to such  reduction  (other than a
reduction  that  generally  applies  to  Company  employees);  (iv)  a  material
reduction by the Company in the aggregate level of employee benefits,  including
Target  Bonuses,  to which  Executive  was  entitled  immediately  prior to such
reduction  with the  result  that  Executive's  aggregate  benefits  package  is
materially  reduced(other  than a reduction  that  generally  applies to Company
employees);  (v) the  relocation  of Executive to a facility or a location  more
than thirty-five (35) miles from Executive's then present location;  or

                                       2
<PAGE>

(vi) any act or set of facts or circumstances which would, under California case
law or statute constitute a constructive termination of Executive.

          For  purposes of this  Agreement,  "Change of Control"  shall mean the
occurrence of any of the following  events in either a single  transaction  or a
series  of  related  transactions:

                           (i) Any  "person"  (as such term is used in  Sections
13(d) and 14(d) of the Securities  Exchange Act of 1934, as amended) becomes the
"beneficial  owner"  (as  defined in Rule 13d-3  under  said Act),  directly  or
indirectly,  of  securities of the Company  representing  fifty percent (50%) or
more of the total voting power  represented  by the Company's  then  outstanding
voting securities; or

                           (ii) The  consummation  of the sale or disposition by
the Company of all or substantially all the Company's assets; or

                           (iii) The  consummation of a merger or  consolidation
of the Company with any other corporation,  other than 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) at least fifty  percent (50%) of the total voting power  represented  by
the voting  securities  of the  Company  or such  surviving  entity  outstanding
immediately after such merger or consolidation; or

                           (iv)  A  change  in  the  composition  of  the  Board
occurring within a two-year  period,  as a result of which fewer than a majority
of the directors  are  Incumbent  Directors.  "Incumbent  Directors"  shall mean
directors  who either (A) are directors of the Company as of the date upon which
this Agreement was entered into, or (B) are elected,  or nominated for election,
to the  Board  with  the  affirmative  votes  of at  least a  majority  of those
directors   whose  election  or  nomination  was  not  in  connection  with  any
transaction described in subsections (i), (ii), or (iii) above, or in connection
with an actual or threatened proxy contest relating to the election of directors
to the Company.

                  (d) The Executive  shall not be required to mitigate the value
of any  severance  benefits  contemplated  by this  section,  nor shall any such
benefits be reduced by any earnings or benefits  that the  Executive may receive
from any other source;  provided,  however, that if Executive receives severance
benefits hereunder,  he expressly waives the right to receive severance benefits
under any other severance plan or policy of the Company.

                  (e)  Severance on or Following a Change of Control.  If, on or
after a Change of Control (as defined herein),  Executive's  employment with the
Company  terminates  due to (i) a voluntary  termination  for "Good  Reason" (as
defined  herein)  where the  grounds  for the Good  Reason  are not cured by the
Company  within 30 days  following  receipt of  written  notice  specifying  the
grounds from Executive,  or (ii) an involuntary termination by the Company other
than for "Cause" (as defined herein),  then, subject to Executive  executing and
not  revoking a standard  form of mutual  release of claims with the Company and
not breaching  the terms of Section 11 hereof,  (i) all of  Executive's  Company
stock options and restricted stock shall  immediately  accelerate  vesting as to
50% of the then unvested shares, (ii) Executive shall receive continued payments
of one  year's  Base  Salary  plus  50% of his  Target  Bonus,  less  applicable
withholding,  in accordance with the Company's  standard payroll  practices (the
"Severance  Payment"),  (iii) the Company  shall pay

                                       3
<PAGE>

the group health and dental plan  continuation  coverage  premiums for Executive
and  his  covered   dependents  under  Title  X  of  the   Consolidated   Budget
Reconciliation  Act of 1985,  as amended  ("COBRA") for the lesser of (A) twelve
(12) months from the date of Executive's  termination of employment,  or (B) the
date upon which  Executive  and his  covered  dependents  are covered by similar
plans of Executive's new employer (the "COBRA Coverage").

                  The  Executive  shall not be required to mitigate the value of
any severance benefits contemplated by this section, nor shall any such benefits
be reduced by any earnings or benefits  that the  Executive may receive from any
other source;  provided,  however, that if Executive receives severance benefits
hereunder, he expressly waives the right to receive severance benefits under any
other severance plan or policy of the Company.

                  (f)  Voluntary   Termination   Other  than  for  Good  Reason;
Involuntary  Termination for Cause.  In the event that Executive  terminates his
employment voluntarily other than for Good Reason or is involuntarily terminated
by the Company  for Cause,  then all vesting of  Executive's  stock  options and
restricted stock shall terminate immediately and all payments of compensation by
the Company to Executive  hereunder shall  immediately  terminate  (except as to
amounts already earned).

         4. Death or Total Disability of Executive.

                  (a)  Death.  Upon  Executive's  death  while  Executive  is an
employee or  consultant  of the Company,  then (i)  employment  hereunder  shall
automatically  terminate,  (ii) all of  Executive's  Company  stock  options and
restricted  stock  shall  immediately  accelerate  vesting as to 50% of the then
unvested  shares,  and all subsequent  vesting of Executive's  stock options and
restricted  stock  shall  terminate  immediately,  and  (iii)  all  payments  of
compensation by the Company to Executive  hereunder shall immediately  terminate
(except as to amounts already earned).

                  (b)  Disability.  Upon  Executive's  becoming  permanently and
totally  disabled (as defined in accordance  with Internal  Revenue Code Section
22(e)(3)  or  its  successor  provision)  while  Executive  is  an  employee  or
consultant  of  the  Company,  then  employment  hereunder  shall  automatically
terminate and all payments of compensation by the Company to Executive hereunder
shall  immediately  terminate  (except as to amounts  already  earned),  and all
vesting of  Executive's  stock  options and  restricted  stock  shall  terminate
immediately.

                                       4
<PAGE>

         5. Golden Parachute Excise Taxes.

                  (a) Parachute Payments of Less than 3.59 x Base Amount. In the
event that the benefits  provided for in this agreement or otherwise  payable to
Executive (a) constitute "parachute payments" within the meaning of Section 280G
of the Internal  Revenue Code of 1986,  as amended  (the  "Code"),  (b) would be
subject  to the excise tax  imposed  by  Section  4999 of the Code,  and (c) the
aggregate  value of such parachute  payments,  as determined in accordance  with
Section 280G of the Code and the proposed  Treasury  Regulations  thereunder (or
the final Treasury Regulations, if they have then been adopted) is less than the
product  obtained by multiplying  3.59 by  Executive's  "base amount" within the
meaning of Code Section  280G(b)(3),  then such benefits shall be reduced to the
extent  necessary  (but only to that extent) so that no portion of such benefits
will be subject to excise tax under Section 4999 of the Code.

                  (b)  Parachute  Payments  Equal to or Greater than 3.59 x Base
Amount.  In the  event  that the  benefits  provided  for in this  agreement  or
otherwise  payable to Executive (a) constitute  "parachute  payments" within the
meaning  of  Section  280G of the Code,  (b) would be  subject to the excise tax
imposed  by  Section  4999 of the  Code,  and (c) the  aggregate  value  of such
parachute  payments,  as determined in accordance  with Section 280G of the Code
and  the  proposed  Treasury  Regulations  thereunder  (or  the  final  Treasury
Regulations,  if they have then been  adopted)  is equal to or greater  than the
product  obtained by multiplying  3.59 by  Executive's  "base amount" within the
meaning of Code  Section  280G(b)(3),  then the  Executive  shall  receive (i) a
payment  from the  Company  sufficient  to pay such  excise  tax,  plus  (ii) an
additional payment from the Company sufficient to pay the excise tax and federal
and state income and  employment  taxes  arising  from the payments  made by the
Company to Executive pursuant to this sentence.

                  (c) 280G Determinations.  Unless the Company and the Executive
otherwise  agree  in  writing,  the  determination  of  Executive's  excise  tax
liability  and the amount  required to be paid or reduced  under this  Section 5
shall be made in writing by the Company's independent auditors who are primarily
used  by  the  Company   immediately   prior  to  the  Change  of  Control  (the
"Accountants"). For purposes of making the calculations required by this Section
5, the Accountants may make reasonable assumptions and approximations concerning
applicable  taxes  and  may  rely  on  reasonable,  good  faith  interpretations
concerning  the  application  of Sections 280G and 4999 of the Code. The Company
and  the  Executive  shall  furnish  to the  Accountants  such  information  and
documents  as  the  Accountants  may  reasonably  request  in  order  to  make a
determination  under  this  Section.  The  Company  shall  bear  all  costs  the
Accountants   may  reasonably   incur  in  connection   with  any   calculations
contemplated by this Section 5.

         6.  Assignment.  This Agreement  shall be binding upon and inure to the
benefit of (a) the heirs, beneficiaries,  executors and legal representatives of
Executive upon Executive's death and (b) any successor of the Company.  Any such
successor of the Company shall be deemed  substituted  for the Company under the
terms of this  Agreement for all  purposes.  As used herein,  "successor"  shall
include any person,  firm,  corporation  or other  business  entity which at any
time, whether by purchase, merger or otherwise,  directly or indirectly acquires
all or substantially  all of the assets or business of the Company.  None of the
rights of Executive to receive any form of compensation payable pursuant to this
Agreement  shall be assignable or  transferable  except  through a  testamentary
disposition  or by the  laws of  descent  and  distribution  upon  the  death of
Executive. Any attempted

                                       5
<PAGE>

assignment,  transfer, conveyance or other disposition (other than as aforesaid)
of any interest in the rights of  Executive to receive any form of  compensation
hereunder shall be null and void.

         7. Notices.  All notices,  requests,  demands and other  communications
called  for  hereunder  shall be in  writing  and shall be  deemed  given if (i)
delivered  personally  or by  facsimile,  (ii) one (1) day after  being  sent by
Federal Express or a similar commercial  overnight  service,  or (iii) three (3)
days  after  being  mailed by  registered  or  certified  mail,  return  receipt
requested,  prepaid and addressed to the parties or their successors in interest
at the  following  addresses,  or at such other  addresses  as the  parties  may
designate by written notice in the manner aforesaid:

         If to the Company:             Linear Technology Corporation
                                        720 Sycamore Drive
                                        Milpitas, CA  95035
                                        Attn: General Counsel

         If to Executive:               Paul Coghlan
                                        at the last residential address
                                        known by the Company.

         8.  Severability.  In the event that any provision hereof becomes or is
declared by a court of competent  jurisdiction to be illegal,  unenforceable  or
void,  this  Agreement  shall  continue  in full force and effect  without  said
provision.

         9. Entire Agreement.  This Agreement,  the Confidential Information and
Invention  Assignment  Agreement  previously  entered  into by and  between  the
Company and Executive and the indemnification  agreement previously entered into
by and between the Company and  Executive  represent  the entire  agreement  and
understanding   between  the  Company  and  Executive   concerning   Executive's
employment  relationship with the Company, and supersede and replace any and all
prior   agreements  and   understandings   concerning   Executive's   employment
relationship with the Company.

         10. Dispute Resolution.

                  (a) The parties shall first meet to settle any dispute through
good faith  negotiation or non-binding  mediation.  If not settled by good faith
negotiation or non-binding mediation between the parties within 30 days from the
date one party  requests in writing to meet the other party,  then to the extent
permitted by law, any dispute or controversy  arising out of, relating to, or in
connection with this Agreement, or the interpretation,  validity,  construction,
performance,  breach, or termination thereof shall be finally settled by binding
arbitration to be held in Santa Clara County, California, in accordance with the
National Rules for the  Resolution of Employment  Disputes then in effect of the
American  Arbitration  Association  (the  "Rules").  The  arbitrator  may  grant
injunctions or other relief in such dispute or controversy.  The decision of the
arbitrator shall be confidential,  final,  conclusive and binding on the parties
to the  arbitration.  Judgment may be entered  under a  protective  order on the
arbitrator's  decision in any court having  jurisdiction.  The Company shall pay
all costs of any mediation or arbitration;  provided,  however,  that each party
shall pay its own attorney and advisor fees.

                  (b) The arbitrator shall apply California law to the merits of
any  dispute  or claim,  without  reference  to rules of  conflict  of law.  The
arbitration  proceedings shall be governed by federal arbitration law and by the
Rules,  without reference to state  arbitration law.  Executive hereby

                                       6
<PAGE>

expressly consents to the personal  jurisdiction of the state and federal courts
located in California  for any action or proceeding  arising from or relating to
this  Agreement  and/or  relating  to any  arbitration  in which the parties are
participants.

                  (c) Executive  understands that nothing in Section 10 modifies
Executive's  at-will  status.  Either the Company or Executive can terminate the
employment relationship at any time, with or without cause.

                  (d)  EXECUTIVE  HAS READ AND  UNDERSTANDS  SECTION  10,  WHICH
DISCUSSES  ARBITRATION.  EXECUTIVE  UNDERSTANDS  THAT BY SIGNING THIS AGREEMENT,
EXECUTIVE  AGREES,  TO THE EXTENT  PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS
ARISING  OUT OF,  RELATING  TO, OR IN  CONNECTION  WITH THIS  AGREEMENT,  OR THE
INTERPRETATION,  VALIDITY,  CONSTRUCTION,  PERFORMANCE,  BREACH,  OR TERMINATION
THEREOF TO BINDING  ARBITRATION,  AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A
WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL
DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

         11. Covenants Not to Compete and Not to Solicit.

                  (a) Covenant Not to Compete. If and only if Executive receives
severance  benefits  under either  Section 3(c) or 3(d) hereof,  then  Executive
agrees that, until the end of the six or twelve month severance benefits period,
as  applicable,  following the date of his  termination  of employment  with the
Company  for any  reason or no reason,  Executive  will not  directly  engage in
(whether  as  an  employee,   consultant,   proprietor,   partner,  director  or
otherwise),  or have any ownership interest in, or participate in the financing,
operation,  management or control of, any person, firm,  corporation or business
that  engages  or  participates  anywhere  in the world in  providing  goods and
services  similar to those  provided by the Company upon the date of Executive's
termination of employment.  Ownership of less than 3% of the outstanding  voting
stock of a corporation  or other entity will not  constitute a violation of this
provision.  The  Company  agrees  not  to  unreasonably  withhold  consent  from
Executive to engage in any activity that is not competitive with the Company.

                  (b) Covenant Not to Solicit. If and only if Executive receives
severance  benefits  under either  Section 3(c) or 3(d) hereof,  then  Executive
agrees that he will not, at any time  during the six or twelve  month  severance
benefits  period,  as applicable,  following his termination  date,  directly or
indirectly  solicit any individuals to leave the Company's employ for any reason
or interfere in any other manner with the employment  relationships  at the time
existing between the Company and its current or prospective employees.

                  (c)  Representations.  The parties  intend that the  covenants
contained  in Section  11(a) and (b) shall be  construed as a series of separate
covenants, one for each county, city and state (or analogous entity) and country
of the world.  If, in any judicial  proceeding,  a court shall refuse to enforce
any of the separate  covenants,  or any part  thereof,  then such  unenforceable
covenant,  or such part thereof,  shall be deemed eliminated from this Agreement
for the  purpose  of those  proceedings  to the extent  necessary  to permit the
remaining separate covenants, or portions thereof, to be enforced.

                                       7
<PAGE>

                  (d)  Reformation.  In the event  that the  provisions  of this
Section 11 should ever be deemed to exceed the time or  geographic  limitations,
or scope of this  covenant,  permitted by applicable  law, then such  provisions
shall be reformed to the maximum time or geographic limitations, as the case may
be, permitted by applicable laws.

                  (e) Reasonableness of Covenants.  Executive represents that he
(i) is familiar with the covenants not to compete and solicit, and (ii) is fully
aware  of  his  obligations  hereunder,   including,   without  limitation,  the
reasonableness  of the length of time,  scope and  geographic  coverage of these
covenants.

                  (f)  Remedy for Breach by  Executive.  In the event  Executive
breaches  his  obligations  under this Section 11, the sole remedy shall be that
the Company may thereafter  discontinue  providing the severance  benefits under
Section 3(c) or 3(d) hereof that Executive would otherwise receive.

         12. No Oral Modification, Cancellation or Discharge. This Agreement may
only be amended,  canceled or discharged in writing  signed by Executive and the
Chairman of the Board.

         13. Withholding. The Company shall be entitled to withhold, or cause to
be withheld,  from payment any amount of withholding  taxes required by law with
respect  to  payments  made to  Executive  in  connection  with  his  employment
hereunder.

         14.  Governing Law. This Agreement shall be governed by the laws of the
State of California.

         15.  Effective  Date.  This Agreement is effective upon the date it has
been executed by both parties.

         16.  Acknowledgment.   Executive  acknowledges  that  he  has  had  the
opportunity  to discuss  this  matter  with and obtain  advice  from his private
attorney,  has  had  sufficient  time  to,  and has  carefully  read  and  fully
understands  all  the  provisions  of  this  Agreement,  and  is  knowingly  and
voluntarily entering into this Agreement.

                                       8
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Agreement:

LINEAR TECHNOLOGY CORPORATION

------------------------------------------
Thomas Volpe

EXECUTIVE

------------------------------------------
Paul Coghlan

Date:__________________, 2001

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