Linear Technology (LLTC)

     The impact on each of the Company’s Named Executive Officers was as follows:

     In fiscals 2009 and 2008 the total bonus pool as determined by the Compensation Committee represented approximately 5% of operating income. In distributing the individual bonuses to be paid to the Named Executive Officers, the Compensation Committee distributed between 2% and 6% of the total pool in both 2009 and 2008 to each such officer, depending on his position within the Company and the Compensation Committee’s evaluation of his individual contribution to the profitability and sales of the Company. During this period of global recession the Company’s sales deteriorated roughly in line with its competitors, but its operating income as a percentage of sales significantly outperformed its peers. This was the largest factor considered in determining the bonus of each of the Named Executive Officers. Each of the officers contributed collectively and similarly as they had done in the previous year to the overall goals of the Company. Consequently, their bonuses each decreased in roughly similar ranges, as the above chart depicts. In 1996, the Company adopted the Senior Executive Bonus Plan (the “Senior Plan”) to facilitate, under Section 162(m) of the Internal Revenue Code, the federal income tax deductibility of compensation paid to the Company's most highly compensated executive officers. In each of 2000 and 2005, the Company's stockholders approved the continuance of the Senior Plan for an additional five years. In fiscal 2009, the participants included Messrs. Swanson, Maier, Coghlan, Dobkin and Paulus. The Company plans to replace the Senior Plan in its entirety with the new 2009 Executive Bonus Plan (the “Bonus Plan”), which is described in more detail in Proposal Three. If the stockholders do not approve the new Bonus Plan, the Senior Plan will remain in effect. In fiscal 2010, the effective plan will include the Executive Chairman, Chief Executive Officer and each of the Company's three other most highly compensated executive officers. The maximum amount payable to any individual in any one year under the plan is $5 million.

     In 1996, the Company adopted the Senior Executive Bonus Plan to facilitate, under Section 162(m) of the Internal Revenue Code, the federal income tax deductibility of compensation paid to the Company’s most highly compensated executive officers. In each of 2000 and 2005, the Company’s stockholders approved the

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     In 1996, the Company adopted the Senior Executive Bonus Plan to facilitate, under Section 162(m) of the Internal Revenue Code, the federal income tax deductibility of compensation paid to the Company's most highly compensated executive officers. In each of 2000 and 2005, the Company's stockholders approved the continuance of the plan for an additional five years. In fiscal 2007, the participants included Messrs. Swanson, Maier, Coghlan, Dobkin and Paulus. In fiscal 2008, the plan will include the Executive Chairman, Chief Executive Officer and each of the Company's three other most highly compensated executive officers. The maximum amount payable to any individual in any one year under the plan is $5 million.

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