Exhibit 10.36


 


SYNOPSYS, INC.


 


FORM OF EXECUTIVE
CHANGE OF CONTROL SEVERANCE BENEFIT PLAN


 


SECTION 1.                                        INTRODUCTION.


 


The Synopsys, Inc. Executive Change of
Control Severance Benefit Plan (the “Plan”) is
hereby established effective March 23, 2006  (the “Effective Date”).
The purpose of the Plan is to provide for the payment of benefits to certain
eligible executive employees of Synopsys, Inc. (the “Company”)
if such employees are subject to qualifying employment terminations in
connection with a Change of Control (as such term is defined below). This Plan
shall supersede, as to any Eligible Employee, any severance benefit plan,
policy, or practice previously maintained by the Company, other than change of
control or severance benefits set forth in an equity incentive plan in which
the primary form of award is in the form of options on stock of the
Company or grants of shares of stock of the Company. In the event of a benefit
set forth in an equity incentive plan, an employee’s severance benefit, if any,
shall be governed by the terms of such equity incentive plan and shall be
governed by this Plan only to the extent that the reduction pursuant to Section 5(b) below
does not entirely eliminate benefits under this Plan. This Plan shall not
supersede or otherwise amend any severance plan, policy, or practice of the
Company with respect to individuals who are not Eligible Employees. This
document also constitutes the Summary Plan Description for the Plan.


 


SECTION 2.                                        DEFINITIONS.


 


For purposes of the Plan, the following terms
are defined as follows:


 


(a)                                  “Base Salary” means the Eligible
Employee’s annual base pay (excluding incentive pay, premium pay, commissions,
overtime, bonuses and other forms of variable compensation), at the rate in
effect during the last regularly scheduled payroll period immediately preceding
the date of the Eligible Employee’s Covered Termination.


 


(b)                                  “Board”
means the Board of Directors of the Company.


 


(c)                                  “Change of Control” means the
occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following events:


 


(i)                                    any
person becomes the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent
(50%) of the combined voting power of the Company’s then outstanding
securities other than by virtue of a merger, consolidation or similar
transaction. Notwithstanding the
foregoing, a Change of Control shall not be deemed to occur (A) on account
of the acquisition of securities of the Company by an investor, any affiliate
thereof or any other person from the Company in a transaction or series of
related transactions the primary purpose of which is to obtain financing for
the Company through the issuance of equity securities or (B) solely
because the level of Ownership held by any person (the “Subject Person”) exceeds the designated percentage
threshold of the outstanding voting securities as a result of a repurchase or
other acquisition of voting securities by the Company reducing the number of
shares outstanding, provided that if a Change of Control would occur (but for
the


 


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operation of this sentence) as a
result of the acquisition of voting securities by the Company, and after such
share acquisition, the Subject Person becomes the owner of any additional
voting securities that, assuming the repurchase or other acquisition had not
occurred, increases the percentage of the then outstanding voting securities
Owned by the Subject Person over the designated percentage threshold, then a Change
of Control shall be deemed to occur;


 


(ii)                                there
is consummated a merger, consolidation or similar transaction involving
(directly or indirectly) the Company and, immediately after the consummation of
such merger, consolidation or similar transaction, the stockholders of the
Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding
voting securities representing more than fifty percent (50%) of the combined outstanding voting power of
the surviving entity in such merger, consolidation or similar transaction or (B) more
than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving entity in such
merger, consolidation or similar transaction, in each case in substantially the
same proportions as their Ownership of the outstanding voting securities of the
Company immediately prior to such transaction;


 


(iii)                            the
stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or
liquidation of the Company shall otherwise occur;


 


(iv)                               there
is consummated a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries, other than a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the
Company in substantially the same proportions as their Ownership of the Company
immediately prior to such sale, lease, license or other disposition.


 


(v)                                   individuals
who, on the date this Plan is adopted by the Board, are members of the Board
(the “Incumbent Board”)
cease for any reason to constitute at least a majority of the members of the
Board; provided, however, that if the
appointment or election (or nomination for election) of any new Board member
was approved or recommended by a majority vote of the members of the Incumbent
Board then still in office, such new member shall, for purposes of this Plan,
be considered as a member of the Incumbent Board.


 


For the avoidance of doubt, the
term Change of Control shall not include a sale of assets, merger or other
transaction effected exclusively for the purpose of changing the domicile of
the Company. Once a Change of Control has occurred, no future events shall
constitute a Change of Control for purposes of the Plan.


 


(d)                                  “COBRA” means the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended.


 


(e)                                  “Code” means
the Internal Revenue Code of 1986, as amended.


 


(f)                                    “Company” means Synopsys, Inc.
or, following a Change of Control, the surviving entity resulting from such
transaction.


 


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(g)                                 “Constructive Termination” means a resignation
of employment by an Eligible Employee within sixty (60) days after one of the
following is undertaken without the Eligible Employee’s express written
consent:


 


(i)                                    the
Company significantly reduces the Eligible Employee’s duties, authority or
responsibilities, relative to the Eligible Employee’s duties, authority or
responsibilities as in effect immediately prior to such reduction, taken as a
whole; provided, however, that a change in the Eligible
Employee’s title shall not be taken into account in determining if the Eligible
Employee’s duties, authority or responsibilities have been reduced for the
purposes of this Section 2(g)(i);


 


(ii)                                the
Company reduces the Eligible Employee’s base salary, target bonus and/or employee
benefits, taken as a whole, unless such reduction is made in connection with an
across-the-board reduction of substantially all executives’ annual base
salaries, potential bonuses and/or employee benefits including those of the
acquiring company;


 


(iii)                            a
relocation of an Eligible Employee’s primary business office to a location more
than seventy-five (75) miles from the location at which the Eligible Employee
predominately performed duties as of the effective date of the Change of
Control, except for required travel by the Eligible Employee on the Company’s
business to an extent substantially consistent with the Eligible Employee’s
business travel obligations prior to the Change of Control.


 


Notwithstanding the foregoing, a termination
shall not constitute a Constructive Termination based on conduct described
above unless (A) within the thirty (30) day period following the
occurrence  of the conduct, the Eligible
Employee provides the Chief Executive Officer of the Company with written
notice specifying (x) the particulars of the conduct and (y) that the Eligible
Employee deems such conduct to be described in (i), (ii) or (iii) of
this Section 2(g), and (B) the conduct described has not been cured
within thirty (30) days following receipt by the Chief Executive Officer of
such notice.


 


(h)                                 “Covered Termination” means either (A) an
Involuntary Termination Without Cause which occurs within thirty (30) days
prior to or twelve (12) months following the effective date of a Change of
Control, or (B) a Constructive Termination which occurs within twelve (12)
months following the effective date of a Change of Control. Termination of
employment of an Eligible Employee due to death or disability shall not
constitute a Covered Termination unless a voluntary termination of employment
by the Eligible Employee immediately prior to the Eligible Employee’s death or
disability would have qualified as a Constructive Termination.


 


(i)                                    “Eligible Employee” means an employee of the Company (A) who has been
designated by the Board as an “officer” under Section 16 of the Securities
Exchange Act of 1934; (B) who has received, signed and timely returned a
Participation Notice; and (C) whose employment with the Company terminates
due to a Covered Termination.


 


(j)                                    “Entity” means a corporation,
partnership or other entity.


 


(k)                                “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.


 


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(l)                                    “Involuntary Termination Without Cause”
means a termination by the Company of an Eligible Employee’s employment
relationship with the Company for any reason other than the following:


 


(i)                                    the Eligible Employee has committed an act
of personal dishonesty in connection with the Eligible Employee’s
responsibilities as a Company employee;


 


(ii)                                the Eligible Employee commits a felony or
any act of moral turpitude;


 


(iii)                            the
Eligible Employee commits any willful or grossly negligent act that constitutes
gross misconduct and/or injures, or is reasonably likely to injure,  the Company; or


 


(iv)                               the
Eligible Employee substantially fails to perform the Eligible Employee’s
job duties and/or willfully and materially violates (A) any written
policies or procedures of the Company or (B) the Eligible Employee’s
obligations to the Company and that violation, if curable, continues for a
period of thirty (30) days after the Company provides the Eligible Employee
written notice that describes the basis for the Company’s belief that the Eligible
Employee has not substantially performed the Eligible Employee’s duties and/or
willfully and materially violated (x) any written policies or procedures of the
Company or (y) the Eligible Employee’s obligations to the Company.


 


(m)                              “Own,” “Owned,”
“Owner,” “Ownership”
A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner”
of, or to have acquired “Ownership” of securities if such person or Entity,
directly or indirectly, through any contract, arrangement, understanding, relationship
or otherwise, has or shares voting power, which includes the power to vote or
to direct the voting, with respect to such securities.


 


(n)                                 “Participation
Notice” means the latest notice delivered by the Company
to an employee informing the employee that the employee is a participant in the
Plan. A Participation Notice shall be in such form as may be
determined by the Company. Notwithstanding the foregoing, neither the Company
nor any successor may amend a Participation Notice in any way that is adverse
to a participant, without the written consent of the participant, unless the
amendment is made more than nine (9) months
prior to an applicable Change of Control.


 


(o)                                  “Plan
Administrator” means the Board or any committee duly
authorized by the Board to administer the Plan. The Plan Administrator may, but
is not required to be, the Compensation Committee of the Board. The Board may at
any time administer the Plan, in whole or in part, notwithstanding that the
Board has previously appointed a committee to act as the Plan Administrator.


 


(p)                                  “Subsidiary” means, with respect to
the Company, (A) any corporation of which more than fifty percent (50%) of
the outstanding capital stock having ordinary voting power to elect a majority
of the board of directors of such corporation (irrespective of whether, at the
time, stock of any other class or classes of such corporation shall have
or might have voting power by reason of the happening of any contingency) is at
the time, directly or indirectly, Owned by the Company, and (B) any
partnership in which the Company has a direct or indirect interest (whether in
the form of voting or participation in profits or capital contribution) of
more than fifty percent (50%).


 


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SECTION 3.                            ELIGIBILITY FOR BENEFITS.


 


(a)                                  General
Rules. Subject to the limitations set forth in this Section 3 and Section 5,
in the event of a Covered Termination, the Company shall provide the severance
benefits described in Section 4 to each affected Eligible Employee.


 


(b)                                  Exceptions
to Benefit Entitlement. An employee, including an employee who otherwise is
an Eligible Employee, will not receive benefits under the Plan (or will receive
reduced benefits under the Plan) in the following circumstances, as determined
by the Plan Administrator in its sole discretion:


 


(i)                                    The
employee’s employment terminates or is terminated for any reason other than a
Covered Termination.


 


(ii)                                The
employee resigns his or her employment with the Company in order to accept
employment with another entity that is controlled (directly or indirectly) by
the Company or is otherwise an affiliate of the Company.


 


(iii)                            The
employee does not confirm in writing that he or she shall be subject to the
provisions of Section 5(f), the employee’s proprietary information
agreement with the Company or the employee’s confidentiality agreement with the
Company.


 


(iv)                               The
employee is rehired by the Company prior to the date benefits under the Plan
are scheduled to be paid or otherwise commence.


 


(v)                                   The
employee is offered an identical or substantially equivalent or comparable
position with the Company or a successor pursuant to a Change of Control. For
purposes of the foregoing, a “substantially equivalent or comparable position”
is one that offers the employee substantially the same level of responsibility
and compensation; provided, however, that an
employee shall not be considered to be offered a “substantially equivalent or
comparable position” if a resignation by the employee would constitute a Constructive
Termination.


 


(c)                                  Termination
or Return of Benefits. An Eligible Employee’s right to receive benefits
under this Plan shall terminate immediately (and any benefits received pursuant
to this Plan shall be immediately returned to the Company) if, at any time
prior to or during the eighteen (18) month period following a Change of Control,
the Eligible Employee, without the prior written approval of the Plan
Administrator:


 


(i)                                    willfully
breaches a material provision of the Eligible Employee’s proprietary
information or confidentiality agreement with the Company, as referenced in Section 3(b)(iii);


 


(ii)                                encourages
or solicits any of the Company’s then current employees to leave the Company’s
employ for any reason or interferes in any other manner with employment
relationships at the time existing between the Company and its then current
employees;


 


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(iii)                            induces
any of the Company’s then current clients, customers, suppliers, vendors,
distributors, licensors, licensees or other third party to terminate or
materially diminish their existing business relationship with the Company or
interferes in any other manner with any existing business relationship between
the Company and any then current client, customer, supplier, vendor,
distributor, licensor, licensee or other third party; or


 


(iv)                               willfully
breaches a material provision of Section 5(f).


 


SECTION 4.                            AMOUNT OF BENEFITS. In the event an Eligible Employee incurs
a Covered Termination, the Eligible Employee shall receive the benefits set
forth in this Section 4, subject, however, to the payment provisions set
forth in Section 6 and the other limitations and exclusions set forth in
this Plan.


 


(a)                                  Cash
Severance Benefits. Except as otherwise provided herein, the Company shall
make four equal quarterly cash severance payments to each Eligible Employee in
an amount equal to the sum of (i) one-fourth the Eligible Employee’s Base
Salary, as in effect on the date of a Covered Termination, or, if higher, as in
effect immediately prior to the Change of Control, plus (ii) an additional payment equal to one-fourth of the
product of (i) the Eligible Employee’s annual target bonus at 100%
achievement, as in effect on the date of a Covered Termination, or, if
higher, as in effect immediately prior to the Change of Control multiplied by (ii) a fraction (x) the
numerator of which is the sum of 365 plus the number of calendar days of
service actually served by the Eligible Employee in the fiscal year of the
Company in which such termination occurs and (y) the denominator of which is
365 (e.g., if a qualifying termination occurs effective May 31st of a
given year and the Company’s bonus program is based on an October 31
fiscal year end, the payment pursuant to this Section 4(a) will equal
the full bonus for the fiscal year of termination at 100% of target, regardless
of the Company’s actual performance, multiplied by (365 + 212)/365)), such
payments to be due on the last day of the third, sixth, ninth and twelfth months,
respectively, following the date of the Covered Termination. For the
avoidance of doubt, it is the intent of this Section 4(a) to provide
a cash severance benefit equal to 100% of the Base Salary (as modified) plus
100% of the target bonus for the year of the Covered Termination plus a
prorated target bonus (so that the total bonus is between 100% and 200% of the
target bonus regardless of actual over or under achievement of performance
targets).


 


(b)                                  Health
Continuation Coverage.


 


(i)                                    Provided
that the Eligible Employee is eligible for, and has made an election at the
time of the Covered Termination pursuant to COBRA under a health, dental, or
vision plan sponsored by the Company, each such Eligible Employee shall be
entitled to receive a lump-sum payment equal to the amount of the COBRA
premiums (inclusive of premiums for the Eligible Employee’s dependents for such
health, dental, or vision plan coverage as in effect immediately prior to the
date of the Covered Termination) necessary to maintain such health, dental, or
vision plan coverage for a period of twelve (12) months following the date of
the Covered Termination. At all times the Eligible Employee shall be solely
responsible for all health costs of the Eligible Employee and any dependents of
the Eligible Employee including any coverage pursuant to COBRA.


 


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(ii)                                For
purposes of this Section 4(b), (A) references to COBRA shall be
deemed to refer also to analogous provisions of state law, and (B) any
applicable insurance premiums that are paid by the Company shall not include
any amounts payable by the Eligible Employee under an Internal Revenue Code Section 125
health care reimbursement plan, which amounts, if any, are the sole
responsibility of the Eligible Employee.


 


(c)                                  Vesting Acceleration.
Effective upon the Covered Termination,
all Company stock awards, including options, restricted stock, stock
appreciation rights and any other form of performance-based equity award,
then held by the Eligible Employee shall vest in full and become fully
exercisable as of the date of such Covered Termination (subject, if applicable,
to the exercise period post-termination set forth in the applicable option
agreement, or if none is stated, in the plan(s) pursuant to which such options
were granted).


 


(d)                                  Other
Employee Benefits. All other benefits (such as life insurance, disability
coverage, and 401(k) plan coverage) shall terminate as of the Eligible Employee’s
termination date (except to the extent that a conversion privilege may be
available thereunder).


 


(e)                                  Additional
Benefits. Notwithstanding the foregoing, the Plan Administrator may, in its
sole discretion, provide benefits in addition to those pursuant to Sections
4(a), 4(b), and 4(c) to Eligible Employees or employees who are not
Eligible Employees (Non-Eligible Employees”)
chosen by the Plan Administrator, in its sole discretion, and the provision of
any such benefits to an Eligible Employee or a Non-Eligible Employee shall in
no way obligate the Company to provide such benefits to any other Eligible
Employee or to any other Non-Eligible Employee, even if similarly situated. If
benefits under the Plan are provided to a non-Eligible Employee, references in
the Plan to “Eligible Employee” (with the exception of Sections 4(a), 4(b), and
4(c)) shall be deemed to refer to such Non-Eligible Employee.


 


SECTION 5.                            LIMITATIONS ON BENEFITS.


 


(a)                                  Release.
In order to be eligible to receive benefits under the Plan, an Eligible
Employee must execute a general waiver and release in substantially the form attached
hereto as Exhibit A, Exhibit B,
or Exhibit C, as appropriate, and
such release must become effective in accordance with its terms. Unless a Change
of Control has occurred, the Plan Administrator, in its sole discretion, may modify
the form of the required release to comply with applicable law and shall
determine the form of the required release, which may be incorporated
into a termination agreement or other agreement with the Eligible Employee.


 


(b)                                  Certain
Reductions. The Plan Administrator, in its sole discretion, shall have the
authority to reduce an Eligible Employee’s severance benefits, in whole or in
part, by any other severance benefits, pay in lieu of notice, or other similar
benefits payable to the Eligible Employee by the Company that become payable in
connection with the Eligible Employee’s termination of employment pursuant to (i) any
applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act (the “WARN
Act”), (ii) a written employment or severance agreement
with the Company, or (iii) any Company policy or practice providing for
the Eligible Employee to remain on the payroll for a limited period of time
after being given notice of the termination of the Eligible Employee’s
employment. The benefits provided under this Plan are intended to satisfy, in
whole or in part, any and all statutory


 


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obligations that may arise out of an Eligible
Employee’s termination of employment, and the Plan Administrator shall so
construe and implement the terms of the Plan. The Plan Administrator’s decision
to apply such reductions to the severance benefits of one Eligible Employee and
the amount of such reductions shall in no way obligate the Plan Administrator
to apply the same reductions in the same amounts to the severance benefits of
any other Eligible Employee, even if similarly situated. In the Plan
Administrator’s sole discretion, such reductions may be applied on a
retroactive basis, with severance benefits previously paid being
re-characterized as payments pursuant to the Company’s statutory obligation.


 


(c)                                  Parachute
Payments. Except as otherwise provided in an agreement between an Eligible
Employee and the Company, if any payment or benefit the Eligible Employee would
receive in connection with a Change of Control from the Company or otherwise (“Payment”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but
for this sentence, be subject to the excise tax imposed by Section 4999 of
the Code (the “Excise Tax”), then such
Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be
either (x) the largest portion of the Payment that would result in no portion
of the Payment being subject to the Excise Tax, or (y) the largest portion, up
to and including the total, of the Payment, whichever amount, after taking into
account all applicable federal, state and local employment taxes, income taxes,
and the Excise Tax (all computed at the highest applicable marginal rate),
results in the Eligible Employee’s receipt, on an after-tax basis, of the
greater amount of the Payment notwithstanding that all or some portion of the
Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting “parachute payments” is necessary so that the Payment
equals the Reduced Amount, reduction shall occur in the following order unless
the Eligible Employee elects in writing a different order (provided, however,
that such election shall be subject to Company approval if made on or after the
date on which the event that triggers the Payment occurs): (1) reduction
of cash payments; (2) cancellation of accelerated vesting of equity awards
other than stock options; (3) cancellation of accelerated vesting of stock
options; and (4) reduction of other benefits paid to an Eligible Employee.
If acceleration of vesting of compensation from an Eligible Employee’s equity
awards is to be reduced, such acceleration of vesting shall be cancelled by
first canceling such acceleration for the vesting installment that will vest
last and continuing by canceling as a first priority such acceleration for
vesting installment with the latest vesting unless the Eligible Employee elects in writing a different
order for cancellation prior to any Change of Control.


 


(d)                                  Mitigation.
Except as otherwise specifically provided herein, an Eligible Employee shall
not be required to mitigate damages or the amount of any payment provided under
this Plan by seeking other employment or otherwise, nor shall the amount of any
payment provided for under this Plan be reduced by any compensation earned by an
Eligible Employee as a result of employment by another employer or any
retirement benefits received by such Eligible Employee after the date of the Eligible
Employee’s termination of employment with the Company, except for health
continuation coverage provided pursuant to Section 4(b).


 


(e)                                  Non-Duplication
of Benefits. Except as otherwise specifically provided for herein, no Eligible
Employee is eligible to receive benefits under this Plan more than one time. This
Plan is designed to provide certain severance pay and Change of Control to Eligible
Employees pursuant to the terms and conditions set forth in this Plan. The
payments pursuant to this Plan are in addition to, and not in lieu of, any
unpaid salary, bonuses or benefits to which an


 


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Eligible Employee may be entitled for
the period ending with the Eligible Employee’s Covered Termination.


 


(f)                                    Noncompetition.
At the written request of the Company or the surviving corporation in a Change
of Control, for a period of eighteen (18) months following the effective date
of the Change of Control, the Eligible Employee shall not serve as an officer,
director, stockholder, employee, partner, proprietor, investor, joint venturer,
affiliate, agent or consultant of any other person, corporation, firm,
partnership or other entity whatsoever that competes directly or indirectly
with the Company or any Subsidiary of the Company (“Applicable
Entities”) anywhere in the world, in any line of business
engaged in (or reasonably planned to be engaged in) by the Applicable Entities
immediately prior to the effective time of the Change of Control; provided, however, that the Eligible Employee may hold,
as a passive investment, up to (i) 2% of any class of securities of
any private enterprise (but without active participation in the activities of
such enterprise); or (ii) 1% of any class of securities of any
publicly-traded enterprise (but without active participation in the activities
of such enterprise).


 


SECTION 6.                            TIME OF PAYMENT AND FORM OF BENEFITS.


 


(a)                                  General
Rules. Except as otherwise provided herein, the payment of benefits in Section 4
shall be made in accordance with and subject to the Company’s normal payroll
practices. In no event shall payment of any Plan benefit be made prior to the Eligible
Employee’s termination date or prior to the effective date of the release
described in Section 5(a). For the avoidance of doubt, in the event of an
acceleration of the exercisability of an option pursuant to Section 4(c),
such option shall not be exercisable with respect to such acceleration of
exercisability unless and until the effective date of the release described in Section 5(a).


 


(b)                                  Application
of Section 409A. If the Plan Administrator determines that (i) any
cash severance benefit provided under Section 4(a), (ii) any health
continuation coverage provided under Section 4(b) or (iii) any
additional benefit provided under Section 4(e) fails to satisfy the
distribution requirement of Section 409A(a)(2)(A) of the Code as a
result of the application of Section 409A(a)(2)(B)(i) of the Code,
the payment of such benefit shall be delayed to the minimum extent necessary so
that such benefits are not subject to the provisions of Section 409A(a)(1) of
the Code. The Plan Administrator may attach conditions to or adjust the
amounts paid pursuant to this Section 6(b) to preserve, as closely as
possible, the economic consequences that would have applied in the absence of
this Section 6(b); provided, however,
that no such condition shall result in the payments being subject to Section 409A(a)(1) of
the Code.


 


(c)                                  Withholding.
All such payments under the Plan will be subject to all applicable withholding obligations
of the Company, without limitation, obligations to withhold for federal, state
and local income and employment taxes.


 


(d)                                  Indebtedness
of Eligible Employees. If an Eligible Employee is indebted to the Company
on the effective date of his or her Covered Termination, the Plan Administrator
reserves the right to offset any severance payments under the Plan by the
amount of such indebtedness.


 


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SECTION 7.                            REEMPLOYMENT.


 


In the event of an Eligible Employee’s reemployment by the Company
during the period of time in respect of which severance benefits pursuant to Section 4(a),
4(b), 4(c), and 4(e) have been paid, the Plan Administrator, in its sole
and absolute discretion, may require such Eligible Employee to repay to
the Company all or a portion of such severance benefits as a condition of
reemployment.


 


SECTION 8.                            RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.


 


(a)                                  Exclusive
Discretion. The Plan Administrator shall have the exclusive discretion and
authority to establish rules, forms, and procedures for the administration of
the Plan, and to construe and interpret the Plan and to decide any and all
questions of fact, interpretation, definition, computation or administration
arising in connection with the operation of the Plan, including, but not
limited to, the eligibility to participate in the Plan and amount of benefits
paid under the Plan. The rules, interpretations, computations and other actions
of the Plan Administrator shall be binding and conclusive on all persons.


 


(b)                                  Amendment
or Termination. The Company reserves the right to amend or terminate this
Plan or the benefits provided hereunder at any time; provided, however, that no such amendment or termination
shall occur during the period that begins nine (9) months prior to a Change
of Control and ends twelve (12) months after such Change of Control as to any Eligible
Employee who would be adversely affected by such amendment or termination
unless such Eligible Employee consents in writing to such amendment or
termination. Any action amending or terminating the Plan shall be in writing
and executed by the Chief Executive Officer or General Counsel of the Company.


 


SECTION 9.                                        NO IMPLIED EMPLOYMENT CONTRACT.


 


The Plan shall not be deemed (i) to give
any employee or other person any right to be retained in the employ of the
Company, or (ii) to interfere with the right of the Company to discharge
any employee or other person at any time, with or without cause, which right is
hereby reserved.


 


SECTION 10.                                 LEGAL CONSTRUCTION.


 


This Plan is intended to be governed by and
shall be construed in accordance with ERISA and, to the extent not preempted by
ERISA, the laws of the State of California.


 


SECTION 11.                                 CLAIMS, INQUIRIES AND APPEALS.


 


(a)                                  Applications
for Benefits and Inquiries. Any application for benefits, inquiries about
the Plan or inquiries about present or future rights under the Plan must be
submitted to the Plan Administrator in writing by an applicant (or his or her
authorized representative). The Plan Administrator is set forth in Section 13(d).


 


(b)                                  Denial
of Claims. In the event that any application for benefits is denied in
whole or in part, the Plan Administrator must provide the applicant with
written or electronic


 


10

















 


notice of the denial of the application, and
of the applicant’s right to review the denial. Any electronic notice will
comply with the regulations of the U.S. Department of Labor. The notice of
denial will be set forth in a manner designed to be understood by the applicant
and will include the following:


 


(i)                                    the
specific reason or reasons for the denial;


 


(ii)                                references
to the specific Plan provisions upon which the denial is based;


 


(iii)                            a
description of any additional information or material that the Plan
Administrator needs to complete the review and an explanation of why such
information or material is necessary; and


 


(iv)                               an
explanation of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the applicant’s right to bring a
civil action under Section 502(a) of ERISA following a denial on
review of the claim, as described in Section 11(d) below.


 


This notice of denial will be given to the
applicant within ninety (90) days after the Plan Administrator receives the
application, unless special circumstances require an extension of time, in
which case, the Plan Administrator has up to an additional ninety (90) days for
processing the application. If an extension of time for processing is required,
written notice of the extension will be furnished to the applicant before the
end of the initial ninety (90) day period.


 


This notice of extension will describe the
special circumstances necessitating the additional time and the date by which
the Plan Administrator is to render its decision on the application.


 


(c)                                  Request
for a Review. Any person (or that person’s authorized representative) for
whom an application for benefits is denied, in whole or in part, may appeal
the denial by submitting a request for a review to the Plan Administrator
within sixty (60) days after the application is denied. A request for a review
shall be in writing and shall be addressed to:


 


Synopsys, Inc.


Attn:  General Counsel

700 East Middlefield Road

Mountain View, CA 94043


 


A request for review must set forth all of the grounds on which it is
based, all facts in support of the request and any other matters that the
applicant feels are pertinent. The applicant (or his or her representative)
shall have the opportunity to submit (or the Plan Administrator may require
the applicant to submit) written comments, documents, records, and other
information relating to his or her claim. The applicant (or his or her
representative) shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to his or her claim. The review shall take into account all comments, documents,
records and other information submitted by the applicant (or his or her
representative) relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination.


 


11

















 


(d)                                  Decision
on Review. The Plan Administrator will act on each request for review
within sixty (60) days after receipt of the request, unless special
circumstances require an extension of time (not to exceed an additional sixty
(60) days), for processing the request for a review. If an extension for review
is required, written notice of the extension will be furnished to the applicant
within the initial sixty (60) day period. This notice of extension will
describe the special circumstances necessitating the additional time and the
date by which the Plan Administrator is to render its decision on the review. The
Plan Administrator will give prompt, written or electronic notice of its
decision to the applicant. Any electronic notice will comply with the
regulations of the U.S. Department of Labor. In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or
in part, the notice will set forth, in a manner calculated to be understood by
the applicant, the following:


 


(i)                                    the
specific reason or reasons for the denial;


 


(ii)                                references
to the specific Plan provisions upon which the denial is based;


 


(iii)                            a
statement that the applicant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to his or her claim; and


 


(iv)                               a
statement of the applicant’s right to bring a civil action under Section 502(a) of
ERISA.


 


(e)                                  Rules and
Procedures. The Plan Administrator will establish rules and
procedures, consistent with the Plan and with ERISA, as necessary and
appropriate in carrying out its responsibilities in reviewing benefit claims. The
Plan Administrator may require an applicant who wishes to submit
additional information in connection with an appeal from the denial of benefits
to do so at the applicant’s own expense.


 


(f)                                    Exhaustion
of Remedies. No legal action for benefits under the Plan may be
brought until the applicant (i) has submitted a written application for
benefits in accordance with the procedures described by Section 11(a) above,
(ii) has been notified by the Plan Administrator that the application is
denied, (iii) has filed a written request for a review of the application
in accordance with the appeal procedure described in Section 11(c) above,
and (iv) has been notified that the Plan Administrator has denied the
appeal. Notwithstanding the foregoing, if the Plan Administrator does not
respond to an applicant’s claim or appeal within the relevant time limits
specified in this Section 11, the applicant may bring legal action
for benefits under the Plan pursuant to Section 502(a) of ERISA.


 


SECTION 12.                                 BASIS OF PAYMENTS TO AND FROM PLAN.


 


The Plan shall be unfunded, and all benefits
hereunder shall be paid only from the general assets of the Company.


 


SECTION 13.                                 OTHER PLAN INFORMATION.


 


(a)                                  Employer
and Plan Identification Numbers. The Employer Identification Number
assigned to the Company (which is the “Plan Sponsor” as that term is used in
ERISA)


 


12

















 


by the Internal Revenue Service is 56-1546236.
The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the
instructions of the Internal Revenue Service is 5    .


 


(b)                                  Ending
Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the
purpose of maintaining the Plan’s records is the fiscal year ending on the
Saturday that is closest to October 31.


 


(c)                                  Agent
for the Service of Legal Process. The agent for the service of legal process
with respect to the Plan is:


 


Synopsys, Inc.


Attn:  General Counsel

700 East Middlefield Road


Mountain View, CA 94043


 


(d)                                  Plan
Sponsor and Administrator. The “Plan Sponsor” and the “Plan Administrator”
of the Plan is:


 


Synopsys, Inc.


Attn:  General Counsel

700 East Middlefield Road


Mountain View, CA 94043


 


The Plan Sponsor’s and Plan Administrator’s
telephone number is (650) 584-5000. The Plan Administrator is the named
fiduciary charged with the responsibility for administering the Plan.


 


SECTION 14.                                 STATEMENT OF ERISA RIGHTS.


 


Participants in this Plan (which is a welfare
benefit plan sponsored by Synopsys, Inc.) are entitled to certain rights
and protections under ERISA. If you are an Eligible Employee, you are
considered a participant in the Plan for the purposes of this Section 14
and, under ERISA, you are entitled to:


 


(a)                                  Receive
Information About Your Plan and Benefits


 


(i)                                    Examine,
without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan and a copy of
the latest annual report (Form 5500 Series), if applicable, filed by the
Plan with the U.S. Department of Labor and available at the Public Disclosure Room of
the Employee Benefits Security Administration;


 


(ii)                                Obtain,
upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500
Series), if applicable, and an updated (as necessary) Summary Plan Description.
The Administrator may make a reasonable charge for the copies; and


 


13

















 


(iii)                            Receive
a summary of the Plan’s annual financial report, if applicable. The Plan
Administrator is required by law to furnish each participant with a copy of
this summary annual report.


 


(b)                                  Prudent
Actions By Plan Fiduciaries. In addition to creating rights for Plan participants,
ERISA imposes duties upon the people who are responsible for the operation of
the employee benefit plan. The people who operate the Plan, called “fiduciaries”
of the Plan, have a duty to do so prudently and in the interest of you and
other Plan participants and beneficiaries. No one, including your employer,
your union or any other person, may fire you or otherwise discriminate against
you in any way to prevent you from obtaining a Plan benefit or exercising your
rights under ERISA.


 


(c)                                  Enforce
Your Rights.


 


(i)                                    If
your claim for a Plan benefit is denied or ignored, in whole or in part, you
have a right to know why this was done, to obtain copies of documents relating
to the decision without charge, and to appeal any denial, all within certain
time schedules.


 


(ii)                                Under
ERISA, there are steps you can take to enforce the above rights. For instance,
if you request a copy of Plan documents or the latest annual report from the
Plan, if applicable, and do not receive them within 30 days, you may file
suit in a Federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay you up to $110 a day until you
receive the materials, unless the materials were not sent because of reasons
beyond the control of the Plan Administrator.


 


(iii)                            If
you have a claim for benefits which is denied or ignored, in whole or in part,
you may file suit in a state or Federal court.


 


(iv)                               If
you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a
Federal court. The court will decide who should pay court costs and legal fees.
If you are successful, the court may order the person you have sued to pay
these costs and fees. If you lose, the court may order you to pay these
costs and fees, for example, if it finds your claim is frivolous.


 


(d)                                  Assistance
With Your Questions. If you have any questions about the Plan, you should
contact the Plan Administrator. If you have any questions about this statement
or about your rights under ERISA, or if you need assistance in obtaining
documents from the Plan Administrator, you should contact the nearest office of
the Employee Benefits Security Administration, U.S. Department of Labor, listed
in your telephone directory or the Division of Technical Assistance and
Inquiries, Employee Benefits Security Administration, U.S. Department of Labor,
200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain
certain publications about your rights and responsibilities under ERISA by
calling the publications hotline of the Employee Benefits Security
Administration.


 


SECTION 15.                                 GENERAL PROVISIONS.


 


(a)                                  Notices.
Any notice, demand or request required or permitted to be given by either
the Company or an Eligible Employee pursuant to the terms of this Plan shall be
in writing


 


14

















 


and shall be deemed given when delivered
personally or deposited in the U.S. mail, First Class with postage
prepaid, and addressed to the parties, in the case of the Company, at the
address set forth in Section 13(d) and, in the case of an Eligible
Employee, at the address as set forth in the Company’s employment file
maintained for the Eligible Employee as previously furnished by the Eligible
Employee or such other address as a party may request by notifying the
other in writing.


 


(b)                                  Transfer
and Assignment. The rights and obligations of an Eligible Employee under
this Plan may not be transferred or assigned without the prior written
consent of the Company. This Plan shall be binding upon any surviving entity
resulting from a Change of Control and upon any other person who is a successor
by merger, acquisition, consolidation or otherwise to the business formerly
carried on by the Company without regard to whether or not such person or
entity actively assumes the obligations hereunder.


 


(c)                                  Waiver.
Any Party’s failure to enforce any provision or provisions of this Plan
shall not in any way be construed as a waiver of any such provision or
provisions, nor prevent any Party from thereafter enforcing each and every
other provision of this Plan. The rights granted the Parties herein are cumulative
and shall not constitute a waiver of any Party’s right to assert all other
legal remedies available to it under the circumstances.


 


(d)                                  Severability.
Should any provision of this Plan be declared or determined to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired.


 


(e)                                  Section Headings.
Section headings in this Plan are included for convenience of
reference only and shall not be considered part of this Plan for any other
purpose.


 


SECTION 16.                                 EXECUTION.


 


To record the adoption of the Plan as set
forth herein, Synopsys, Inc. has caused its duly authorized officer to
execute the same as of the Effective Date.


 


	
   

  	
   

  	
  SYNOPSYS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  



 


15

















 


For Employees Age 40 or Older


Individual Termination


 


EXHIBIT A


 


RELEASE
AGREEMENT


 


I understand and agree completely to the
terms set forth in the Synopsys, Inc. Executive Change of Control Severance
Benefit Plan (the “Plan”).


 


I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that
is not expressly stated therein. Certain capitalized terms used in this Release
are defined in the Plan.


 


I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.


 


Except as otherwise set forth in this
Release, I hereby generally and completely release Synopsys, Inc. and its
current and former directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring prior to my signing
this Agreement. This general release includes, but is not limited to:  (1) all claims arising out of or in any
way related to my employment with the Company, or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing, express or implied; (4) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (5) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the federal Age
Discrimination in Employment Act of 1967 (as amended) (“ADEA”),
the California Constitution or the constitution of any other state, and the
California Fair Employment and Housing Act (as amended) or similar statute of
any other state; provided, however, that nothing in this paragraph shall be
construed in any way to release the Company from its obligation to indemnify me
pursuant to agreement or applicable law.


 


I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge
that the consideration given for the ADEA Waiver is in addition to anything of
value to which I was already entitled. I further acknowledge that I have been
advised by this writing, as required by the ADEA, that: (a) my ADEA Waiver
does not apply to any rights or claims that arise after the date I sign this
Release; (b) I should consult with an attorney prior to signing this
Release; (c) I have twenty-one (21) days to consider this Release
(although I may choose to voluntarily sign it sooner); (d) I have
seven (7) days following the date I sign this Release to revoke the ADEA
Waiver; and (e)


 


1

















 


the ADEA Waiver will not be effective until the date upon which the
revocation period has expired unexercised, which will be the eighth day after I
sign this Release (“Effective Date”). Nevertheless,
my general release of claims, except for the ADEA Waiver, is effective
immediately, and not revocable.


 


I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any
law of any jurisdiction of similar effect with respect to my release of any
claims hereunder.


 


To the fullest extent permitted by law, at no
time after the execution of this Release will I pursue, or cause or knowingly
permit the pursuit in any state or federal court, or before any local, state or
federal administrative agency, or any tribunal, any charge, claim or action of
any kind, nature or character arising out of the matters released as described
herein, except for an action to enforce the provisions of the Plan; provided, however, that nothing in this paragraph prevents
me from testifying truthfully in any legal proceeding pursuant to subpoena or
other legal process.


 


I acknowledge that to become effective, I
must sign and return this Release to the Company so that it is received not
later than twenty-one (21) days following the date it is provided to me.


 


	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
					



 


2

















 


For Employees Age 40 or Older


Group Termination


 


EXHIBIT B


 


RELEASE
AGREEMENT


 


I understand and agree completely to the
terms set forth in the Synopsys, Inc. Executive Change of Control
Severance Benefit Plan (the “Plan”).


 


I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that
is not expressly stated therein. Certain capitalized terms used in this Release
are defined in the Plan.


 


I hereby confirm my obligations under the
Company’s proprietary information and inventions agreement.


 


Except as otherwise set forth in this
Release, I hereby generally and completely release Synopsys, Inc. and its
current and former directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring prior to my signing this
Agreement. This general release includes, but is not limited to:  (1) all claims arising out of or in any
way related to my employment with the Company, or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing, express or implied; (4) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of
public policy; and (5) all federal, state, and local statutory claims,
including claims for discrimination, harassment, retaliation, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the federal Age
Discrimination in Employment Act of 1967 (as amended) (“ADEA”),
the California Constitution or the constitution of any other state, and the
California Fair Employment and Housing Act (as amended) or similar statute of
any other state; provided, however, that nothing in this paragraph shall be
construed in any way to release the Company from its obligation to indemnify me
pursuant to agreement or applicable law.


 


I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge
that the consideration given for the ADEA Waiver is in addition to anything of
value to which I was already entitled. I further acknowledge that I have been
advised by this writing, as required by the ADEA, that:  (a) my ADEA Waiver does not apply to any
rights or claims that arise after the date I sign this Release; (b) I
should consult with an attorney prior to signing this Release; (c) I have
forty-five (45) days to consider this Release (although I may choose to
voluntarily sign it sooner); (d) I have seven (7) days following the
date I sign this Release to revoke the ADEA Waiver; and (e)


 


1

















 


the ADEA Waiver will not be effective until the date upon which the
revocation period has expired unexercised, which will be the eighth day after I
sign this Release (“Effective Date”). Nevertheless,
my general release of claims, except for the ADEA Waiver, is effective
immediately, and not revocable.


 


I have received with this Release a detailed
list of the job titles and ages of all employees who were terminated in this
group termination and the ages of all employees of the Company in the same job
classification or organizational unit who were not terminated.


 


I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any
law of any jurisdiction of similar effect with respect to my release of any
claims hereunder.


 


To the fullest extent permitted by law, at no
time after the execution of this Release will I pursue, or cause or knowingly
permit the pursuit in any state or federal court, or before any local, state or
federal administrative agency, or any tribunal, any charge, claim or action of
any kind, nature or character arising out of the matters released as described
herein, except for an action to enforce the provisions of the Plan, provided, however, that nothing in this paragraph prevents
me from testifying truthfully in any legal proceeding pursuant to subpoena or
other legal process.


 


I acknowledge that to become effective, I
must sign and return this Release to the Company so that it is received not
later than forty-five (45) days following the date it is provided to me.


 


	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
					



 


2

















 


For Employees Under Age 40


Individual and Group
Termination


 


EXHIBIT C


 


RELEASE
AGREEMENT


 


I understand and agree completely to the
terms set forth in the Synopsys, Inc. Executive Change of Control
Severance Benefit Plan (the “Plan”).


 


I understand that this Release, together with
the Plan, constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that
is not expressly stated therein. Certain capitalized terms used in this Release
are defined in the Plan.


 


I hereby confirm my obligations under the Company’s
proprietary information and inventions agreement.


 


Except as otherwise set forth in this
Release, I hereby generally and completely release Synopsys, Inc. and its
current and former directors, officers, employees, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions occurring prior to my signing
this Agreement. This general release includes, but is not limited to:  (1) all claims arising out of or in any
way related to my employment with the Company, or the termination of that
employment; (2) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (5) all federal, state, and local statutory claims, including claims
for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the California Constitution or the
constitution of any other state, and the California Fair Employment and Housing
Act (as amended) or similar statute of any other state; provided, however,
that nothing in this paragraph shall be construed in any way to release the
Company from its obligation to indemnify me pursuant to agreement or applicable
law.


 


I acknowledge that I have read and understand
Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.”  I hereby expressly
waive and relinquish all rights and benefits under that section and any
law of any jurisdiction of similar effect with respect to my release of any
claims hereunder.


 


To the fullest extent permitted by law, at no
time after the execution of this Release will I pursue, or cause or knowingly
permit the pursuit in any state or federal court, or before any local,


 


1

















 


state or federal administrative agency, or any tribunal, any charge,
claim or action of any kind, nature or character arising out of the matters
released as described herein, except for an action to enforce the provisions of
the Plan; provided, however, that nothing in this
paragraph prevents me from testifying truthfully in any legal proceeding
pursuant to subpoena or other legal process.


 


I acknowledge that to become effective, I
must sign and return this Release to the Company so that it is received not
later than fourteen (14) days following the date it is provided to me.


 


	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
					



 

















 


SYNOPSYS, INC.


 


EXECUTIVE CHANGE
OF CONTROL SEVERANCE BENEFIT PLAN


 


PARTICIPATION
NOTICE


 


To:                               


 


Date:                    


 


Synopsys, Inc. (the “Company”) has adopted
the Synopsys, Inc. Executive Change of Control Severance Benefit Plan (the
“Plan”). The
Company is providing you with this Participation Notice to inform you that
you qualify as a participant in the Plan. A copy of the Plan document is
attached to this Participation Notice. [Except as provided below, the][The]
terms and conditions of your participation in the Plan are as set forth in the
Plan, and in the event of any conflict between this Participation Notice and
the Plan, the terms of the Plan shall prevail.


 


[Your participation in the Plan is modified
as follows:                                               ]


 


Please retain a copy of this Participation
Notice, along with the Plan document, for your records.


 


	
   

  	
  SYNOPSYS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
				



 


ACKNOWLEDGEMENT


 


The undersigned hereby acknowledges receipt of the foregoing
Participation Notice. The undersigned acknowledges that the undersigned has
been advised to obtain tax and financial advice regarding the consequences of
participating in the Plan, including the effect, if any, of Sections 409A and
4999 of the Internal Revenue Code. The undersigned further acknowledges that
the undersigned has no severance benefits [(other than with respect to awards
under the            Plan)]
except as provided by the attached Plan.


 


	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print name