Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
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Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
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 3 and have no effect on the vote for this Proposal 3.

### Purpose and Background
The Purchase Plan is designed to provide our eligible employees and those of our designated subsidiaries and affiliates with the opportunity to purchase shares of our common stock on periodic purchase dates through accumulated payroll deductions. The Purchase Plan is designed to allow U.S.-based employees to make such purchases in a manner that receives favorable tax treatment under Section 423. Our Board of Directors, or its delegate, may approve offerings under the Purchase Plan that are not intended to qualify for such favorable tax treatment under Section 423, including, without limitation, offerings in which eligible employees who are not subject to U.S. tax laws may participate.

Our management believes that maintaining a competitive employee stock purchase plan is an important element in recruiting, motivating and retaining our employees. The Purchase Plan is designed to more closely align the interests of our employees with those of our stockholders by encouraging employees to invest in our common stock, and to help our employees share in our success through the appreciation in value of such purchased stock. The Purchase Plan together with our equity plans are important employee retention and recruitment vehicles. As of August 31, 2024, the close of enrollment for our most recent semi-annual purchase period under the Purchase Plan, there were 17,462 employees participating in the Purchase Plan, representing approximately 82% of our employees who were eligible to participate in the Purchase Plan. As of August 31, 2024, 21,285 employees were eligible to participate in the Purchase Plan, an increase of 4,830 people since the last time our stockholders approved an increase in the number of shares issuable under the Purchase Plan.

As of January 31, 2025, an aggregate of 12,942,898 shares of common stock remained available for future issuance under the Purchase Plan. Our Board of Directors has, subject to stockholder approval of this Proposal 3, increased the aggregate number of shares of our common stock issuable under the Purchase Plan by 2,200,000 shares. Our Board of Directors believes the proposed share increase is in the best interests of Synopsys and its stockholders and will help us continue to provide our employees with the opportunity to acquire an ownership interest in Synopsys through their participation in the Purchase Plan.

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| PROPOSAL 3 — Approval of Our Employee Stock Purchase Plan, as Amended |

Description of the Employee Stock Purchase Plan

The Purchase Plan was amended to increase the number of shares in