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| (Mark One) |
|------------|
| x          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       | For the fiscal year ended December 31, 2011 |
|       |   |
| Or         |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       | For the transition period from          to |

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| Delaware                                             |   | 25-1701361          |
|------------------------------------------------------|--------|---------------------|
| (State or Other Jurisdiction of                      |   | (I.R.S. Employer    |
| Incorporation or Organization)                       |   | Identification No.) |
|                                                 |   |                |
| 333 West San Carlos Street, Suite 700 |   |                |
| San Jose, California                            |   | 95110               |
| (Address of Principal Executive Offices)             |   | (Zip Code)          |

| Title of each class    |   | Name of each exchange on which registered |
|---------------------------------------|--------|-------------------------------------------------------------------------|
| Common Stock, $0.00015 par value |   | The NASDAQ Stock Market LLC                                             |

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| Large accelerated filer o | Accelerated filer x                      | Non-accelerated filer o | Smaller reporting company o |
|--------------------------------|-----------------------------------------------|------------------------------|----------------------------------|
|                           | (Do not check if a smaller reporting company) |

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| PART III |
|---------------|
| Item 10.      | Directors, Executive Officers and Corporate Governance | 5 |
| Item 11.      | Executive Compensation | 10 |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 30 |
| Item 13.      | Certain Relationships and Related Transactions and Director Independence | 33 |
| Item 14.      | Principal Accounting Fees and Services | 34 |
| Item 15.      | Exhibits | 36 |

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| Age | 53 |
|-----|----|

| Director Since; Class | 2006; Class I |
|-----------------------|---------------|

| Business Experience |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| and Education            | Dr. Caulfield has been an Entrepreneur in Residence  at Khosla Ventures since March 2012.  Most recently, Dr. Caulfield served as Chief Executive Officer of Caitin, Inc. from November 2008 through February 2012.  Previously, since 2005, Dr. Caulfield held numerous executive positions in publicly traded and private companies including: Chief Operating Officer of Ausra, Inc; Executive Vice President of Sales, Marketing and Customer Satisfaction at Novellus Systems, Inc.; and, prior to that, Vice President of Semiconductor Operations at International Business Machines Corporation for 16 years. Dr. Caulfield received a B.S. in Physics from St. Lawrence University and a B.S., M.S., and a DES in Materials Science/Metallurgy from Columbia University |

| Board Committee Memberships | Chairman of the Compensation Committee since May 18, 2010. Member of the Audit and Corporate Governance Committee and the Nominating Committee since October 23, 2008. |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Qualifications & Attributes | Dr. Caulfield has many years of experience as an executive officer in the technology industry. In addition to bringing industry experience, Dr. Caulfield brings key senior management, leadership, strategic planning and marketing experience to our Board. |
|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Age | 65 |
|-----|----|

| Director Since; Class | 2005; Class I |
|-----------------------|---------------|

| Business Experience |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| and Education            | Mr. Heinrichs is currently a private investor and a director of Avistar Communications. Most recently, Mr. Heinrichs served as a director of Catapult Communications Corporation from September 2005 through June 2009, when the company was acquired by Ixia, and also served as a director and was the audit committee chairman of Artisan Components, Inc. from January 2003 through 2005, when the company was acquired by ARM Holdings PLC. Prior to his retirement in 2001, Mr. Heinrichs served as Chief Financial Officer of Avistar Communications Corporation, a company he co-founded. |

| Board Committee Memberships | Chairman of the Audit and Corporate Governance Committee since August 1, 2005. Member of the Compensation Committee, Nominating Committee and Strategic Committee since October 23, 2008. |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Qualifications & Attributes | Mr. Heinrichs received a B.S. in Accounting from California State University Fresno. Mr. Heinrichs received his Certified Public Accountant license in December 1971 and has over 30 years of experience in finance and operations through positions he has held with various companies in public accounting and as a corporate officer. The Board has determined that Mr. Heinrichs is the audit committee’s “audit committee financial expert” based on his knowledge and understanding of generally accepted accounting principles and financial statements; experience analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues relevant to those of the Company; and an understanding of internal control over financial reporting. This financial experience is beneficial to the Company and to Mr. Heinrichs’ role as the Chairman of the Audit and Corporate Governance Committee. |
|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Age | 48 |
|-----|----|

| Director Since; Class | 1992; Class III |
|-----------------------|-----------------|

| Business Experience |
|--------------------------|

| and Education | Dr. Kibarian is one of our founders and has served as our President since November 1991 and our Chief Executive Officer since July 2000 Dr. Kibarian received a B.S. in Electrical Engineering, an M.S. E.C.E. and a Ph.D. E.C.E. from Carnegie Mellon University. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board Committee Memberships | Member of the Strategic Committee since October 23, 2008. |
|-----------------------------|-----------------------------------------------------------|

| Qualifications & Attributes | Having served as our President and Chief Executive Officer for 19 years, Dr. Kibarian brings to our Board an extraordinary understanding of our Company's business, history and organization. Dr. Kibarian's training and education as an engineer, together with his day-to-day leadership and intimate knowledge of our business and operations, helps the Board in developing and executing the Company’s long-term strategy. |
|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Age | 67 |
|-----|----|

| Director Since; Class | 1995; Class II |
|-----------------------|----------------|

| Business Experience |
|--------------------------|

| and Education | Mr. Lanza is the Managing Director of Lanza techVentures, an early stage venture capital and investment firm, which he founded in January 2001. Since 2008, he has been a general partner and the chief technology strategist of Radnorwood Capital, LLC, and an investor in public technology companies. Mr. Lanza served as a non-executive director of ARM from December 2004 to May 2010, and serves on the board of directors of several private companies. In August 2010, he joined the board of Harris & Harris Group, a publicly traded venture capital company that invests in nanotechnology and microsystems. Mr. Lanza received a doctorate in electronic engineering from Politecnico of Milan. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board Committee Memberships | Chairman of the Board since April 2004. Member of the Audit and Corporate Governance Committee since September 15, 2006, and the Strategic Committee since October 23, 2008. |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Qualifications & Attributes | Mr. Lanza's extensive operating history in the industry and detailed knowledge of the Company, combined with his experience as a chairman and director of numerous publicly traded and private companies, serves the Company well in his role as our Chairman and as a director. |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Age | 45 |
|-----|----|

| Director Since; Class | 1995; Class II |
|-----------------------|----------------|

| Business Experience |
|--------------------------|

| and Education | Dr. Michaels, one of our founders, has served as our Vice President, Products and Solutions since July 2010. Dr. Michaels served as our Vice President, Design for Manufacturability from June 2007 through June 2010. Prior to that, Dr. Michaels served as our Vice President, Field Operations for Manufacturing Process Solutions from January 2006 through May 2007. From March 1993 through December 2005, he served in various vice presidential capacities at PDF. He also served as Chief Financial Officer from November 1995 to July 1998. Dr. Michaels received a B.S. in Electrical Engineering, an M.S. E.C.E. and a Ph.D. E.C.E. from Carnegie Mellon University. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Committee Memberships | None |
|-----------------------|------|

| Qualifications & Attributes | Dr. Michaels provides the Board with unique insight regarding Company-wide issues as an executive of the Company in various leadership capacities and levels of operations, and as a co-founder of the Company. This experience provides the Board with invaluable insight into Company operations. |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Age | 71 |
|-----|----|

| Director Since; Class | 2005; Class I |
|-----------------------|---------------|

| Business Experience |
|--------------------------|

| and Education | Dr. Yu is active in private venture capital investing and serves on the board of directors of several technology companies and on the board of directors of Preferred Bank, an independent commercial bank. Previously, Dr. Yu had been employed with Intel Corporation for almost 30 years until his retirement in 2002. At Intel, he held numerous technical and executive management positions, including Senior Vice President and a member of the Corporate Management Committee, with responsibilities for corporate strategy, microprocessors, chipsets, and software. Dr. Yu received a B.S. from the California Institute of Technology, and an M.S. and Ph.D. from Stanford University, all in electrical engineering. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Board Committee Memberships | Chairman of the Nominating Committee since May 18, 2010. Member of the Compensation Committee since August 1, 2005. |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------|

| Qualifications & Attributes | Dr. Yu has first-hand managerial experience in large, multinational corporations as well as private venture capital investment companies. Dr. Yu's extensive experience in high technology companies enables him to provide invaluable insight regarding the industry in which the Company operates. |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | recommending the engagement of the independent registered public accounting firm; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | monitoring the effectiveness of our internal and external audit functions; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | monitoring and assessing the effectiveness of our financial and accounting organization and the quality of our system of internal accounting controls; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | overseeing all aspects of the Company’s corporate governance functions on behalf of the Board and making recommendations on corporate governance issues.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s annual incentive compensation is based on balanced performance metrics that promote disciplined progress towards Company goals; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company does not offer significant short-term incentives that might drive high-risk investments at the expense of long-term Company value; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s long-term incentives do not drive high-risk investments at the expense of long-term Company value; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s compensation programs are weighted towards cash, and the equity component does not promote unnecessary risk taking; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s compensation is capped at reasonable and sustainable levels, as determined by a review of the Company’s economic position and prospects, as well as the compensation offered by comparable companies. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | John K. Kibarian, Ph.D., our Chief Executive Officer and President; |
|--------|--------|---------------------------------------------------------------------|

|   | · | Gregory C. Walker, Vice President, Finance, and Chief Financial Officer; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | Michael Shahbazian, our former Interim Chief Financial Officer, Vice President, Finance; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | Joy E. Leo, our former Executive Vice President, Chief Administration Officer and Acting  Chief Financial Officer; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cornelis (Cees) Hartgring, our Vice President, Client Services and Sales; and |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Kimon Michaels, Ph.D., our Vice President, Products and Solutions. |
|--------|--------|--------------------------------------------------------------------|

----

|   | · | CEO Compensation.  In part due to his request, since 2002 through the end of fiscal 2011, Dr. Kibarian has not received an increase to his $250,000 base salary.  Also in response to his request, as well as a desire to conserve equity for other purposes, including to grant equity to other employees, Dr. Kibarian, has not received an annual discretionary cash bonus since 2002 and has not received an equity award since 2003.  As a significant stockholder, Dr. Kibarian’s interests are already strongly aligned with the interests of our other stockholders. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Independence.  The Compensation Committee of our Board of Directors develops, reviews and approves each element of executive compensation. The Compensation Committee is comprised solely of independent directors. Additionally, pursuant to its Charter, the Compensation Committee has the authority to engage a compensation consultant and other advisers as it deems appropriate or necessary to support it in fulfilling its responsibilities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | No Perquisites.  We do not provide perquisites or other personal benefits to our executives officers. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | No Tax Gross-Ups.  We do not provide tax gross-ups or other tax reimbursement payments to our executive officers. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | Severance and Change in Control Agreements. Except in the case of Ms. Leo and Mr. Walker, we have not entered into any agreement with our NEOs in connection with the commencement of, or during, their employment with us that provides for severance payments or other special benefits upon their future termination of their employment or any payments or other special benefits in the event of a termination of employment in connection with a change of control of the Company. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Exclusive Decision-Making Power. The Compensation Committee retains and does not delegate any of its exclusive power to determine all matters of executive compensation and benefits, although our Chief Executive Officer and the Company's Human Resources department periodically present compensation and benefit recommendations to the Compensation Committee. The Compensation Committee considers, but independently evaluates whether or not to accept, management's recommendations with respect to NEO compensation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Periodic Review. The Compensation Committee, in connection with management, regularly reviews our executive compensation policies and practices and program, including the mix of elements within our executive compensation program and the allocation between short-term and long-term compensation and cash and non-cash compensation, to ensure that our executive officers are compensated in a manner that is consistent with competitive market practice and sound corporate governance principles, and that rewards them for performance tied to the Company’s primary business objective of delivering sustained high-performance to our customers and stockholders. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Risk Mitigation.  The Compensation Committee regularly considers how the primary elements of our executive compensation program could encourage or mitigate excessive risk-taking, and has structured our program to mitigate risk by rewarding performance tied to several reasonable business objectives, and avoiding incentives that could encourage inappropriate risk-taking by our NEOs. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | to emphasize performance-based compensation that is progressively weighted with seniority level; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | to align our NEOs’ interest with long-term stockholder value; |
|--------|--------|---------------------------------------------------------------------|

|   | · | to attract and retain talented leadership; and |
|--------|--------|------------------------------------------------|

|   | · | to maintain an executive compensation program that encourages our NEOs to adhere to high ethical standards. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | 50% of the Executive Performance Awards will be granted to an NEO only if the Company’s revenue growth rate (year-over-year) for the fiscal year equals or exceeds the annual revenue growth rate of worldwide electronic design automation (EDA) industry, as reported by EDAC. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 50% of the Executive Performance Awards will be granted to an NEO only if the Company’s annual profitability for the fiscal year exceeds 7%.  As used in the 2011 compensation program, profitability meant the Company’s non-GAAP, pre-tax net income, which excludes stock based compensation, amortization of acquired intangibles and restructuring charges, which we call EBITAR. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                   |   |                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Objective                    |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
| Element                                                |   | Philosophy Statement                                                                                                                                                                                                                                                                                                              |   | Basis for CompensationDecisions; Pay-for-Performance Criteria                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Reward Long-term Performance | Attract & Retain | Align to Stockholder Value | Adhere to High-Ethical Standards |
| Base Salary                                            |   | We provide a base salary to our NEOs as a significant element of their overall compensation to recruit and retain experienced executives.                                                                                                                                                                                         |   | Base salaries are initially established through arms-length negotiation at the time an NEO is hired, taking into account the NEO’s qualifications, experience, prior salary, and competitive salary information based on market data obtained from both Radford High-Tech Executive Surveys and publicly-available proxy data from peer companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                         | X |   | X |
| Annual Discretionary Cash Incentive Bonus              |   | We provide an annual incentive cash bonus, payable in the sole discretion of the Compensation Committee, to reward our NEO for individual and Company performance.                                                                                                                                                                |   | After the end of each year, the Compensation Committee reviews the Company's performance and the individual NEO’s performance for the preceding fiscal year taking into consideration such factors as leadership qualities, business responsibilities, career with the Company, current compensation arrangements, and long-term potential to enhance stockholder value. As noted below, commencing with the annual discretionary cash incentive bonus that may be paid in 2013 for 2012 performance, 50% of each such bonus will also be subject to the Company’s achievement of the performance goals noted below, provided that the Compensation Committee has reserved the sole discretion to determine the amount and whether any annual discretionary cash incentive bonus will be paid to any NEO.                            |   | X                            | X | X | X |
| Annual Discretionary Long-Term Equity Incentive Awards |   | We provide annual discretionary long-term equity incentive awards, which may consist of a mix of stock options and restricted stock or restricted stock unit awards (“Restricted Stock”), with vesting based on continued service with the Company to align our NEOs’ interests with those of our stockholders. |   | The Compensation Committee considers an NEO’s relative job scope, the value of such NEO’s outstanding long-term equity incentive awards, individual and Company performance history, prior contributions to the Company, the size of prior awards, and competitive market data based on publicly-available proxy data from peer companies. As noted above, 50% of the total target equity award will be subject to the Company’s achievement of performance goals which, for any equity awards made in 2012 will be based on the 2011 performance goals noted above and for any equity awards made in 2013 will be based on the 2012 performance goals noted below, provided that the Compensation Committee has reserved the sole discretion to determine the amount and whether any equity awards will be granted to any NEO |   | X                            | X | X | X |

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|                                             |   |                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                |   | Objective                    |
|--------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
| Element                                          |   | Philosophy Statement                                                                                                                                                                                                                                                                                                                                            |   | Basis forCompensationDecisions; Pay-for-Performance Criteria                                                                                        |   | Reward Long-term Performance | Attract & Retain | Align to Stockholder Value | Adhere to High-Ethical Standards |
| Stock Options                                    |   | We grant stock options to our NEOs with exercise prices based on the fair market value of the Company’s common stock on the date of grant, which ties the value of the stock option directly to our future financial performance, to provide further incentives to our NEOs to increase the value of our common stock and to create retention incentives. |   | The Compensation Committee considers the same general criteria as described above for long-term equity incentive awards.                            |   | X                            | X | X | X |
| Restricted Stock or Stock Unit Awards            |   | We grant Restricted Stock to reduce potential dilution to our stockholders, and to provide strong equity-based retention incentives to our NEOs.                                                                                                                                                                                                                |   | The Compensation Committee considers the same criteria as described above for long-term equity incentive awards.                                    |   | X                            | X | X | X |
| Health and Welfare Benefits, Retirement Benefits |   | We provide industry-standard programs to provide for the health, welfare and retirement planning of our NEOs, including life insurance equal to the lesser of $200,000 or twice base salary.                                                                                                                                                                    |   | The Compensation Committee has determined that our NEOs may participate on the same terms in the same programs that are available to all employees. |   |                         | X |   |   |

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|   | · | Assisting in the selection of our peer group companies and applicable benchmarks; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Providing compensation survey data to benchmark NEO compensation; |
|--------|--------|-------------------------------------------------------------------|

|   | · | Helping the Compensation Committee interpret compensation data; |
|--------|--------|-----------------------------------------------------------------|

|   | · | Advising on the reasonableness and effectiveness of our NEO compensation levels and programs; and |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | Assisting in the review of NEO compensation disclosure in the Proxy Statement filed by us for the 2011 annual meeting of stockholders. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| Advanced Analogic TechnologiesAXTBTU InternationalCascade MicrotechCEVAExarFormFactorFSI International |   | GSI TechnologyMattson TechnologyMaxLinearMEMSICMindspeed TechnologiesMIPS TechnologiesNanometrics |   | Pericom SemiconductorPLX TechnologyQuickLogicRamtron InternationalRudolph TechnologiesSupertexTranswitchVitesse Semiconductor |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | · | Our CEO must own shares equal to six (6) times such executive’s annual base salary. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | All NEOs other than our CEO must own shares equal to two (2) times such executive’s annual base salary. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

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----

|   | · | Increase Portion of NEO Compensation Tied to Performance.  In addition to 50% of each NEO’s total target annual equity awards being subject to the achievement of revenue and profitability triggers, 50% of each NEO’s annual discretionary cash incentive bonus will also be subject to the achievement of such performance triggers.  We call this 50% of each of the equity awards and incentive cash bonus that is at risk, collectively the “Performance Compensation.” |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Use Internal Revenue Measures. Instead of judging the Company’s performance based on the growth of EDA Industry, which includes many dissimilar companies and results, the Compensation Committee decided it was a better measure of results to consider whether the Company’s revenue growth for the fiscal year equals or exceeds the Company’s internal revenue plan. Accordingly, 50% of each NEO’s Performance Compensation will be tied to this measure. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Use GAAP and Non-GAPP Profitability Triggers. Instead of judging the Company’s profitability performance based solely on a non-GAAP measure, the Compensation Committee decided it was a better measure of profitability results to equally consider whether the Company’s non-GAAP, pre-tax net income, excluding stock-based compensation, depreciation, amortization of acquired intangibles and restructuring charges, which we call EBITDAR, and the Company’s GAAP earnings per share each equaled or exceeded certain thresholds.  Accordingly, 12.5% of each NEO’s Performance Compensation will be tied to the EBITDAR measure and 12.5% of each NEO’s Performance Compensation will be tied to the GAAP earnings per share measure. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF PDF SOLUTIONS, INC.: Thomas Caulfield, DES, ChairAlbert Y.C. Yu, Ph.D.R. Stephen Heinrichs |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name & Principal Position           | Year   |   | Salary ($) |   |   | Bonus ($) |   | StockAwards($)(1) |    |   | OptionAwards($)(1) |    |   | All OtherCompensation($)(2) |    | Total ($) |   |
|-----------------------------------------|--------|--------|------------|--------|--------|-----------|--------|-------------------|---------|--------|--------------------|---------|--------|-----------------------------|---------|-----------|--------|
| John K. Kibarian                        | 2011   |   | 250,000    |   |   | _         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 250,200 |   |
| Chief Executive Officer,                | 2010   |   | 250,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 250,200 |   |
| President and Director                  | 2009   |   | 250,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 250,200 |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
| Gregory C. Walker                       | 2011   |   | 44,020     |   |   | 16,670    | (4)    |              |    |   |               | 546,050 |   |                        | 40      |      |   | 606,780 |   |
| Chief Financial Officer,                | 2010   |   | -          |   |   | -         |   |              | -       |   |               | -       |   |                        | -       |      |   | - |   |
| Vice President, Finance (3)             | 2009   |   | -          |   |   | -         |   |              | -       |   |               | -       |   |                        | -       |      |   | - |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
| Michael Shahbazian                      | 2011   |   | 128,950    |   |   | -         |   |              | 50,670  |   |               | -       |   |                        | 100     |      |   | 179,720 |   |
| Former Interim Chief Financial Officer, | 2010   |   | -          |   |   | -         |   |              | -       |   |               | -       |   |                        | -       |      |   | - |   |
| and Vice President, Finance (5)         | 2009   |   | -          |   |   | -         |   |              | -       |   |               | -       |   |                        | -       |      |   | - |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
| Joy E. Leo                              | 2011   |   | 123,750    |   |   | -         |   |              | -       |   |               | -       |   |                        | 137,200 | (7)       |   | 260,950 |   |
| Former Executive Vice President,        | 2010   |   | 270,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 270,200 |   |
| Chief Administration Officer and        | 2009   |   | 270,000    |   |   | 89,400    | (8)    |              | -       |   |               | 98,600  |   |                        | 200     |      |   | 458,200 |   |
| Acting Chief Financial Officer (6)      |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
| Cornelis (Cees) Hartgring               | 2011   |   | 240,000    |   |   | -         |   |              | 41,900  |   |               | 64,800  |   |                        | 200     |      |   | 346,900 |   |
| Vice President, Client                  | 2010   |   | 240,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 240,200 |   |
| Services and Sales                      | 2009   |   | 240,000    |   |   | -         |   |              | -       |   |               | 51,700  |   |                        | 200     |      |   | 291,900 |   |
|                                    |   |   |       |   |   |      |   |              |    |   |               |    |   |                        |    |      |   |   |   |
| Kimon W. Michaels                       | 2011   |   | 210,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 210,200 |   |
| Vice President, Products                | 2010   |   | 210,000    |   |   | -         |   |              | -       |   |               | -       |   |                        | 200     |      |   | 210,200 |   |
| and Solutions and Director              | 2009   |   | 210,000    |   |   | -         |   |              | 135,600 |   |               |    |   |                        | 200     |      |   | 345,800 |   |

|   | (1) | The amounts reported in these columns reflect the aggregate grant date fair value for financial statement reporting purposes for stock options and restricted stock unit awards granted in that fiscal year as determined in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 718, or FASB ASC Topic 718. These amounts reflect our accounting expense for these awards and do not represent the actual economic value that may be realized by the Named Executive Officers. There can be no assurance that these amounts will ever be realized. For information on the assumptions used in valuing these awards, refer to the Note to the consolidated financial statements contained in the Company's Annual Report on Form 10-K  for the fiscal year in which the award was granted titled "Stockholder's Equity". |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Unless indicated otherwise, the amounts reported represent the dollar value of premiums for term life insurance paid by us on behalf of each Named Executive Officer during the fiscal years ended December 31, 2009, 2010 and 2011.  There is no cash surrender value under these life insurance policies. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3)    | Mr. Walker was appointed our Vice President, Finance and Chief Financial Officer on November 10, 2011.                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (4)    | This amount represents the portion of the first-year bonus that the Company agreed to pay to Mr. Walker in connection with his hire, which bonus is to be paid to Mr. Walker on a semi-monthly basis over the first 12 months of his employment with the Company.                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (5)    | Mr. Shahbazian was appointed as our Vice President Finance and Interim Chief Financial Officer on June 17, 2011 and served through December 1, 2011.                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (6)    | Ms. Leo resigned as our Executive Vice President, Chief Administration Officer and Acting Chief Financial Officer effective June 17, 2011.                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (7)    | This amount includes the portion of then current base salary paid to Ms. Leo in connection with termination of Ms. Leo’s employment as set forth under Ms. Leo’s employment offer.                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (8)    | This amount represents a retention bonus agreed to through arms-length negotiation at the time Ms. Leo was hired and set forth in the offer letter between Ms. Leo and the Company effective as of July 9, 2008. In agreeing to pay this retention bonus, the Company took into account Ms. Leo's qualifications, experience, prior salary, and competitive salary information for companies that are comparable to ours. |

| Name                      | Grant Date | All OtherStock Awards:Number of Sharesof Stock or Units(#) |   | All OtherOption Awards:Number of SecuritiesUnderlying Options(#) |    | Exercise orBase Priceof Option Awards($/Sh) |   | Grant DateFair Valueof Stock andOption Awards($) (1) |    |
|---------------------------|------------|------------------------------------------------------------|--------|------------------------------------------------------------------|---------|---------------------------------------------|--------|------------------------------------------------------|---------|
| Gregory C. Walker         | 11/16/2011 |                                                       | -      |                                                             | 180,000 |                                        | 6.09   |                                                 | 546,050 |   |
| Michael Shahbazian        | 06/10/2011 |                                                       | 9,000  |                                                             | -       |                                        | -      |                                                 | 50,670  |   |
| Cornelis (Cees) Hartgring | 5/27/2011  |                                                       | -      |                                                             | 20,250  |                                        | 6.21   |                                                 | 64,782  |   |
|                      | 5/27/2011  |                                                       | 6,750  |                                                             | -       |                                        | -      |                                                 | 41,920  |   |

|   | (1) | The amounts in this column reflects the aggregate grant date fair value for financial statement reporting purposes for stock options and restricted stock units granted in that fiscal year as determined in accordance with the FASB ASC Topic 718. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                      | Grant Date | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Unexercisable (1) |   | OptionExercisePrice ($) |   | OptionExpirationDate |   | Number ofShares orUnits ofStock ThatHave NotVested (#) |   | MarketValue of Shares or Units ofStock ThatHave NotVested($) |
|---------------------------|------------|----------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|-------------------------|--------|----------------------|--------|--------------------------------------------------------|--------|--------------------------------------------------------------|
| John K. Kibarian          | 4/21/2003  | 6,668                                                          |   | -                                                                    |   | 6.39                    |   | 04/20/2013           |   | -                                                      |   | -                                                            |
|                      | 4/21/2003  | 73,332                                                         |   | -                                                                    |   | 6.39                    |   | 04/20/2013           |   | -                                                      |   | -                                                            |
|                      |       |                                                           |   |                                                                 |   |                    |   |                 |   |                                                   |   |                                                         |
| Gregory Walker            | 11/16/2011 | -                                                              |   | 180,000                                                              |   | 6.09                    |   | 11/9/2021            |   |                                                   |   |                                                         |
|                      |       |                                                           |   |                                                                 |   |                    |   |                 |   |                                                   |   |                                                         |
| Cornelis (Cees) Hartgring | 09/03/2002 | 74,072                                                         |   | -                                                                    |   | 5.40                    |   | 09/02/2012           |   | -                                                      |   | -                                                            |
|                      | 09/03/2002 | 60,867                                                         |   | -                                                                    |   | 5.40                    |   | 09/02/2012           |   | -                                                      |   | -                                                            |
|                      | 11/07/2007 | 80,000                                                         |   | -                                                                    |   | 8.92                    |   | 11/06/2017           |   | -                                                      |   | -                                                            |
|                      | 10/29/2009 | 18,958                                                         |   | 16,042                                                               |   | 3.62                    |   | 10/28/2019           |   | -                                                      |   | -                                                            |
|                      | 05/27/2011 | 2,953                                                          |   | 17,297                                                               |   | 6.21                    |   | 05/26/2021           |   |                                                   |   |                                                         |
|                      | 08/18/2008 | -                                                              |   | -                                                                    |   | -                       |   | -                    |   | 2,977 (2)                                              |   | 20,750                                                       |
|                      | 05/27/2011 | -                                                              |   | -                                                                    |   | -                       |   | -                    |   | 5,907 (3)                                              |   | 41,170                                                       |
|                      |       |                                                           |   |                                                                 |   |                    |   |                 |   |                                                   |   |                                                         |
| Kimon Michaels            | 08/18/2008 | -                                                              |   | -                                                                    |   | -                       |   | -                    |   | 2,381 (2)                                              |   | 16,600                                                       |

|   | (1)    | 25% of the total shares subject to the original option vested on the first anniversary of the grant and 1/48th of the total shares subject to the original option vested and will vest on the grant date day of each month thereafter until fully vested. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                      |
|   | (2)    | 12.5% of the total original award vested on May 15, 2009 and vested or will vest every six months thereafter until fully vested.                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                      |
|   | (3)    | 12.5% of the total original award vested on November 27, 2011 and vested or will vest every six months thereafter until fully vested.                                                                                                                     |

----

|                      |   | Option Awards                             |   |   | Stock Awards                  |   |
|---------------------------|--------|-------------------------------------------|--------|--------|-------------------------------|--------|
| Name                      |   | Number of Shares Acquired on Exercise (#) |   |   | Value Realizedon Exercise ($) |   |   | Number of Shares Acquired on Vesting (#) |   |   | Value Realizedon Vesting ($) (1) |   |
| John K. Kibarian          |   | -                                         |   |   | -                             |   |   | - |   |   | - |   |
| Gregory Walker            |   | -                                         |   |   | -                             |   |   | - |   |   | - |   |
| Michael Shahbazian        |   | -                                         |   |   | -                             |   |   | 9,000 |   |   | 48,700 |   |
| Joy E. Leo                |   | 326,040                                   |   |   | 65,110                        |   |   | - |   |   | - |   |
| Cornelis (Cees) Hartgring |   | -                                         |   |   | -                             |   |   | 6,596 |   |   | 40,500 |   |
| Kimon W. Michaels         |   | -                                         |   |   | -                             |   |   | 22,620 |   |   | 128,100 |   |

----

|   | (1) | The values of the vested awards were determined based on the number of shares that vested multiplied by the per share closing sale price on the NASDAQ Global Market reported for the applicable vesting date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | vesting acceleration with respect to her outstanding and unvested stock options and/or restricted stock units for an additional 12 months after the effective date of her termination; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 12 months of her then-current annual base salary, paid in accordance with the Company’s standard payroll procedures over a 12-month period following the termination date; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a percentage of her annual incentive target bonus, which would have been determined by pro rating the percentage of the target bonus that the Company determined was earned as of the effective date of her separation, had such target bonus been payable at such time; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s payment of the premiums for Ms. Leo’s COBRA coverage from the last date on which she received health care coverage as a Company employee until the earlier of: (1) the date that is 12 months following the effective date of her separation; or (2) the date Ms. Leo becomes covered under another employer’s health coverage plan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Executive Benefits and Payments UponTermination of Employment               |   | Value of the Hypothetical Benefit and Payment Amount ($) |   | Value of the Benefit and Payment Amount Received at the Time of Resignation ($) |
|-----------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|---------------------------------------------------------------------------------|
| Vesting acceleration of outstanding and unvested stock options              |   | 287,600                                                  | (1)    |                                                                            | 85,400 | (2) |
| Vesting acceleration of outstanding and unvested restricted stock units (3) |   | -                                                        |   |                                                                            | - |   |
| Twelve months of annual base salary                                         |   | 270,000                                                  |   |                                                                            | 270,000 |   |
| A percentage of target bonus                                                |   | 216,000                                                  | (4)    |                                                                            | - |   |
| Premiums for COBRA coverage                                                 |   | 7,200                                                    |   |                                                                            | 6,800 |   |
| Total                                                                       |   | 895,600                                                  |   |                                                                            | 362,200 |   |

|   | (1) | The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on December 31, 2011 ($6.97), volatility 62.8%, risk free rate of return 0.81%, no dividends and expected term of 4.6 years. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on June 17, 2011 ($5.55), volatility 37.97%, risk free rate of return 0.03%, no dividends and expected term of 0.25 years. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Ms. Leo did not have any restricted stock units as of December 31, 2011 or at the time of her resignation. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (4) | Amount is calculated based on the maximum potential annual incentive target bonus, which was 80% of Ms. Leo's base salary. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

| (i) | vesting acceleration of his then outstanding and unvested stock options and restricted stock as if he had provided continuous service to the Company for an additional 6 months after his separation date; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | 6 months of his then-current annual base salary, paid in accordance with the Company's standard payroll procedures over a 6-month period; |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii)  | a payment equal to 50% of the  annual target bonus paid for the immediately preceding performance period; and,                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                     |
| (iv)   | the Company's payment of the premiums for COBRA coverage from the last date on which he receives health care coverage as a Company employee until the earlier of: (1) the date that is 6 months following the separation date; or (2) the date Mr. Walker becomes covered under another employer's health coverage plan. |

| Executive Benefits and Payments upon Termination of Employment          |   | Value of the Hypothetical Benefit and Payment Amount (change of control) ($) | Value of the Hypothetical Benefit and Payment Amount (termination at any time without cause or disability) ($) |
|-------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| Vesting acceleration of outstanding and unvested stock options          |   | 339,880                                                                      | (1)                                                                                                            | - |   |
| Vesting acceleration of outstanding and unvested restricted stock units |   | -                                                                            |                                                                                                           | - |   |
| Base salary                                                             |   | 315,000                                                                      |                                                                                                           | 157,500 |   |
| A percentage of target bonus                                            |   | 220,500                                                                      | (2)                                                                                                            | 110,250 |   |
| Premiums for COBRA coverage                                             |   | 11,700                                                                       |                                                                                                           | 11,700 |   |
| Total                                                                   |   | 887,080                                                                      |                                                                                                           | 279,450 |   |

|   | (1) | The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on 12/30/2011 ($6.97), volatility 62.8%, risk free rate of return 0.81%, no dividends and expected term of 4.6 years. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amount is calculated based on the maximum potential annual incentive target bonus, which was 70% of Mr. Walker’s base salary. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| Pursuant to the employment agreement with  Mr. Walker, in the event that the Company undergoes a “Change in Control” during the first 12 months of his employment and if, at any time over the next 12 months after consummation of such Change of Control, his employment is terminated without “Cause” or he resigns with “Good Reason” (as such terms are defined in the employment agreement) and, provided Mr. Walker’s termination or resignation was a “separation from service” within the meaning of Internal Revenue Code Section 409A, then he will be entitled to all of the following: |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | vesting acceleration with respect to 50% of then outstanding and unvested stock options and restricted stock; |
|-----|---------------------------------------------------------------------------------------------------------------|

| (ii) | 12 months of then-current annual base salary, paid in accordance with the Company's standard payroll procedures over a 12-month period; |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | a payment equal to 100% of the annual target bonus paid for the immediately preceding performance period; and |
|-------|---------------------------------------------------------------------------------------------------------------|

----

| (iv) | the Company's payment of the premiums for COBRA coverage from the last date on which he receives health care coverage as a Company employee until the earlier of: (1) the date that is 12 months following the separation date; or (2) the date Mr. Walker becomes covered under another employer's health coverage plan. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                      |   | Value of AcceleratedRights ($) |
|---------------------------|--------|--------------------------------|
| John K. Kibarian          |   | -                              |   |
| Gregory Walker            |   | 339,880                        | (1) |
| Michael Shahbazian        |   | -                              |   |
| Joy E. Leo                |   | -                              |   |
|                      |   |                           |   |
| Cornelis (Cees) Hartgring |   | 61,920                         | (2) |
| Kimon W. Michaels         |   | 16,600                         | (2) |

|   | (1) | Consists of options. The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on December 31, 2011 ($6.97), volatility 62.8%, risk free rate of return 0.81%, no dividends and expected term of 4.6 years. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Consists of restricted stock units. The value was determined by multiplying the number of unvested shares subject to the restricted stock unit award as of December 31, 2011 by the closing market price of the Company's common stock on December 31, 2011 ($6.97 per share). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Compensation Element                                                       |   | Director Compensation Program                                                                        |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|
| Annual cash retainer                                                       |   | $36,000 for each non-employee director (1)                                                           |
|                                                                       |   |                                                                                                 |
| Annual equity award                                                        |   | Option to purchase 11,250 shares and 3,750 restricted stock units for each non-employee director (2) |
|                                                                       |   |                                                                                                 |
| Additional annual cash retainer and equity award for Chairman of the Board |   | $30,000 plus an option to purchase 15,000 shares and 5,000 restricted stock units (1)(2)             |

----

| Additional annual cash retainer for Audit and Corporate Governance Committee |   | $12,000 (chair); $6,000 (member) (1)                                  |
|------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
|                                                                         |   |                                                                  |
| Additional annual cash retainer for Compensation Committee                   |   | $10,000 (chair); $4,000 (member) (1)                                  |
|                                                                         |   |                                                                  |
| Additional annual cash retainer for Nominating Committee                     |   | $5,000 (chair); $2,000 (member) (1)                                   |
|                                                                         |   |                                                                  |
| Additional cash fees for Strategic Committee meetings                        |   | $1,000 per in-person meeting and $500 for telephone participation     |
|                                                                         |   |                                                                  |
| New Director equity award (one-time)                                         |   | Option to purchase 17,650 shares and 5,750 restricted stock units (3) |

|   | (1) | All cash retainers are paid in four equal quarterly installments at the beginning of each calendar quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | These stock options and restricted stock units are targeted to be awarded on or around May 15th of each year. Under the director compensation program, options granted in 2012 and thereafter will vest with respect to 1/4th of the total shares subject to the option on the grant date and 1/48th of the total shares monthly after the grant date until fully vested; and (b) restricted stock unit awards will be subject to the performance criteria for the fiscal year prior to the year of grant and thereafter and will vest with respect to 1/4th of the total shares on the grant date and 1/4th of the total units subject to such award every anniversary of the grant date thereafter until fully vested. |
|   | (3) | These stock option grants are awarded at the time a new director is appointed or elected to the Board. These stock options will vest with respect to 1/48th of the total shares subject to the option on the grant date and each month thereafter until fully vested, and restricted stock unit awards will vest with respect to 1/8th of the total shares subject to such award every 6 months after the grant date until fully vested.                                                                                                                                                                                                                                                                                           |

|   | · | With respect to fiscal year 2011, (1) 50% of each non-employee director’s annual restricted stock unit awards will be granted to such director in 2012 only if the Company’s revenue growth rate (year-over-year) for the prior fiscal year equals or exceeds the annual revenue growth rate (for the same period) of the EDA industry; and (2) 50% of each director’s annual restricted stock unit awards will be granted to such director only if the Company’s annual EBITAR for the prior fiscal year exceeds 7%. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | With respect to fiscal year 2012 and thereafter, (1) 25% of each director’s annual total equity awards will be granted to such director in 2013 and thereafter only if the Company’s annual revenue growth rate equal or exceeds the Company’s internal plan; (2) 12.5% of each director’s annual total equity awards will be granted to such director only if the Company’s non-GAAP, pre-tax net income, excluding stock-based compensation, depreciation, amortization of acquired intangibles and restructuring charges, which we call EBITDAR, for the prior fiscal year equal or exceeds certain thresholds; and (3) 12.5% of each director’s annual total equity awards will be granted to such director only if the Company’s GAAP earnings per share for the prior fiscal year equaled or exceeded certain thresholds. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                  |   | Fees Earned orPaid in Cash ($) |   |   | Stock Awards($) |   |   | Option Awards($) (1) |   |   | All OtherCompensation |   |   | Total($) |   |
|-----------------------|--------|--------------------------------|--------|--------|-----------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------|--------|
| Thomas Caulfield, DES |   | 54,000                         |   |   | 23,300          |   |   | 36,000               |   |   | -                     |   |   | 113,300  |   |
| R. Stephen Heinrichs  |   | 54,000                         |   |   | 23,300          |   |   | 36,000               |   |   | -                     |   |   | 113,300  |   |
| Albert Y.C. Yu, Ph.D  |   | 45,000                         |   |   | 23,300          |   |   | 36,000               |   |   | -                     |   |   | 104,300  |   |
| Lucio Lanza           |   | 72,000                         |   |   | 54,400          |   |   | 84,000               |   |   | -                     |   |   | 210,800  |   |

|   | (1) | The amounts reported in this column reflect the aggregate grant date fair value for financial statement reporting purposes for the stock options granted in 2011 as determined in accordance with the FASB ASC Topic 718. These amounts reflect our accounting expense for these awards and do not represent the actual value that may be realized by our non-employee directors. For information on the assumptions used in valuing these stock option grants, refer to the Note to the consolidated financial statements contained in the Company's Annual Report on Form 10-K for 2011 titled "Stockholder's Equity." The number of outstanding stock options held by each non-employee director at the end of 2011 were: Dr. Caulfield (53,750); Mr. Heinrichs (194,195); Mr. Lanza (373,750); and Dr. Yu (41,095). The outstanding and unvested restricted stock units held by each non-employee director at the end of 2011 were: Dr. Caulfield (5,961); Mr. Heinrichs (3,282); Mr. Lanza (7,657); and Dr. Yu (5,792). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Plan Category                                          |   | Number of Securities to be issued Upon Exercise of Outstanding Options, Warrants and Rights(a) |   | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(b) |   | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding Securities Reflected in Column (a))(c) |
|--------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity Compensation Plans Approved by Stockholders (1) |   | 3,668,559                                                                                      |   |                                                                           | $5.78  |                                                                                                                                           | 5,710,932 | (2)(3) |
| Equity Compensation Plans Not Approved by Stockholders |   | 204,266                                                                                        | (4)    |                                                                           | $8.31  |                                                                                                                                           | 388,919 | (4) |
| Total                                                  |   | 3,872,825                                                                                      |   |                                                                           |   |                                                                                                                                           | 6,099,851 |   |

----

| (1)   | In 2001, the Company terminated its 1996 Stock Option Plan and 1997 Stock Plan with respect to future option grants, and adopted its 2001 Stock Plan. As of December 31, 2011, no option rights were outstanding under the 1996 Stock Option and 1997 Stock Plans. The 2001 Plan expired in 2011. For a description of these plans, see Note 8 to our Consolidated Financial Statements in the Form 10-K filed with SEC on March 23, 2011.  In 2011, the Company adopted 2011 Stock Incentive Plan. For a description of the 2011 Plan, see Note 8 to our Consolidated Financial Statements in the Form 10-K filed with SEC on March 15, 2012. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes 4,625,986 shares available for issuance pursuant to options and stock purchase rights under the 2001 Stock Plan, awarded prior to its expiration on June 12, 2011. Other than in connection with outstanding awards, no shares remain available for issuance pursuant to 2001 Stock Plan. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 1,084,946 shares available for issuance under the 2001 Employee Stock Purchase Plan (as amended the “ESPP”). The ESPP, designed to comply with Internal Revenue Code Section 423, includes an "evergreen" feature which provides for an automatic annual increase in the number of shares available under the plan on the first day of each of our fiscal years, equal to the lesser of 675,000 shares, 2% of our outstanding common stock on the last day of the immediately preceding fiscal year, or such amount as is determined by our Board.  At the annual meeting of stockholders on May 18, 2010, our stockholders approved an amendment to the ESPP to extend it through May 17, 2020. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Consists of the Stock Option/Stock Issuance Plan that was assumed by us upon the acquisition of IDS Software Systems, Inc.  Stock options granted under the plan generally vest with respect to 25% of the shares subject to the option one year after the date of grant and then 1/48 of the shares subject to the option each month thereafter.  Options generally expire 10 years after the grant date.  The vesting for certain options is accelerated upon a change in control. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name and Address of Beneficial Owner                              |   | Amount and Nature of Beneficial Ownership (1) |   | Percent of Class (1)(2) |
|-------------------------------------------------------------------|--------|-----------------------------------------------|--------|-------------------------|
| 5% Stockholders:                                                  |   |                                          |   |                    |   |   |
| T. Rowe Price Associates, Inc                                     |   | 2,639,801                                     |   |                    | 9.3 |   |
| 100 E. Pratt Street                                               |   |                                          |   |                    |   |   |
| Baltimore, Maryland 21202 (3)                                     |   |                                          |   |                    |   |   |
| Samjo Capital LLC                                                 |   | 2,225,700                                     |   |                    | 7.9 |   |
| 1325 Avenue of the Americas, 26th Floor                           |   |                                          |   |                    |   |   |
| New York, New York 10019 (4)                                      |   |                                          |   |                    |   |   |
| John K. Kibarian (5)                                              |   | 2,567,474                                     |   |                    | 9.1 |   |
| Kimon W. Michaels (6)                                             |   | 1,520,334                                     |   |                    | 5.4 |   |
| Directors and Named Executive Officers:                           |   |                                          |   |                    |   |   |
| John K. Kibarian (5)                                              |   | 2,567,474                                     |   |                    | 9.1 |   |
| Gregory C. Walker                                                 |   | -                                             |   |                    | * |   |
| Michael Shahbazian (7)                                            |   | 12,806                                        |   |                    | * |   |
| Joy Leo                                                           |   | 18,991                                        |   |                    | * |   |
| Kimon W. Michaels (6)                                             |   | 1,520,334                                     |   |                    | 5.4 |   |
| Cornelis (Cees) Hartgring (8)                                     |   | 302,108                                       |   |                    | 1.1 |   |
| Lucio L. Lanza (9)                                                |   | 629,257                                       |   |                    | 2.2 |   |
| R. Stephen Heinrichs (10)                                         |   | 168,568                                       |   |                    | * |   |
| Albert Y.C. Yu (11)                                               |   | 21,666                                        |   |                    | * |   |
| Thomas Caulfield (12)                                             |   | 45,622                                        |   |                    | * |   |
| All directors and executive officers as a group (10 persons) (13) |   | 5,286,826                                     |   |                    | 18.7 |   |

|   | (1) | Beneficial ownership is determined in accordance with SEC rules. In computing the number of shares beneficially owned by a person, we have included shares for which the named person has sole or shared power over voting or investment decisions. The number of shares beneficially owned also includes ownership of which the named person has the right to acquire, through conversion, option and warrant exercise or otherwise, within 60 days after March 30, 2012. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (2) | Percentage of beneficial ownership is based on 28,303,915 shares outstanding as of March 30, 2012.  For each named person, the percentage ownership includes beneficial ownership which the person has the right to acquire within 60 days after March 30, 2012, as described in Footnote 1.  However, such beneficial ownership shall not be deemed outstanding with respect to the calculation of ownership percentage for any other person. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Based solely on the Schedule 13G Amendment No. 8 filed on February 13, 2012 (the “T. Rowe Price 13G Amendment”). These securities are owned by various individual and institutional investors including T. Rowe Price Associates, Inc. (which owns 2,639,801 shares, representing 9.3% of the shares outstanding as of filing of the T. Rowe Price 13G Amendment), of which T. Rowe Price Associates, Inc. (Price Associates) serves as investment adviser with power to direct investments and/or sole power to vote the securities. For purposes of the reporting requirements of the Securities Exchange Act of 1934, Price Associates is deemed to be a beneficial owner of such securities; however, Price Associates expressly disclaims that it is, in fact, the beneficial owner of such securities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Based solely on the Schedule 13G Amendment No. 1 that was jointly filed on February 6, 2012 by Samjo Capital LLC (“Samjo Capital”), Samjo Management LLC (“Samjo Management”) and Andrew Wiener. The Schedule 13G indicates that: (i) Samjo Capital, Samjo Management and Mr. Wiener share voting power and dispositive power over 2,221,000 shares; and, (ii) Mr. Weiner has sole voting power and dispositive power over 4,700 shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Includes 80,000 shares issuable upon the exercise of stock options fully vested as of March 30, 2012. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (6) | Includes 20,894 shares issuable to Mr. Michaels upon the exercise of stock options vested as of March 30, 2012 and 1,646 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. Excludes 89,318 shares held by Mr. Michaels' spouse as separate property. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Consists of 12,806 shares of restricted stock units that will be fully vested within 60 days after March 30, 2012. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (8)    | Includes 240,302 shares issuable upon the exercise of stock options vested as of March 30, 2012 and 2,302 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012.                                                                                                                                                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                  |
|   | (9)    | Includes 310,776 shares issuable upon the exercise of stock options vested as of March 30, 2012 and 6,721 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. Includes 121,720 shares owned by Lanza techVentures, an early stage venture capital and investment firm of which Mr. Lanza is the managing director. |

|   | (10) | Includes 157,889 shares issuable upon the exercise of stock options vested as of March 30, 2012 and 4,429 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Includes 3,229 shares issuable upon the exercise of stock options vested as of March 30, 2012 and 2,239 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Includes 25,571 shares issuable upon the exercise of stock options vested as of March 30, 2012 and 2,239 shares issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Consists of 5,286,826 shares held by our directors and executive officers, as a group, of which 838,661 shares are issuable upon the exercise of stock options vested as of March 30, 2012 and 19,576 shares are issuable upon the exercise of stock options that will vest within 60 days after March 30, 2012. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | all directors who serve on the Audit and Corporate Governance, Compensation, and Nominating Committees are independent under the NASDAQ Listing Rules and SEC rules; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | all members of the Audit and Corporate Governance Committee meet the additional independence requirement and they do not directly or indirectly receive compensation from the Company other than their compensation as directors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fee Category       |   | Fiscal 2011 Fees |   | Fiscal 2010 Fees |
|--------------------|--------|------------------|--------|------------------|
| Audit Fees (1)     |   | $1,200,400       |   |             | 804,000 |   |
| Audit-Related Fees |   | -                |   |             | 6,000 | (2) |
| Tax Fees           |   | -                |   |             | - |   |
| All Other Fees     |   | -                |   |             | 55,000 | (3) |
| Total Fees         |   | $1,200,400       |   |             | 865,000 |   |

|   | (1) | Represents the aggregate fees for professional services rendered in connection with the annual audit of financial statements and internal controls over financial reporting. $1,084,500 of the amount shown under “Fiscal 2011 Fees” has been billed as of April 30, 2012. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)    | Represents aggregate fees billed in 2010 for professional services rendered in connection with delivering consent for the Company’s S-8 filing. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
|   | (3)    | Represents aggregate fees billed in such year for consulting services rendered in connection with our early adoption of EITF08-1.                     |

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|   | (a) The following documents are filed as part of this report: |
|--------|--------------------------------------------------------------------|
|   |                                                               |

| ExhibitNumber |   | Description                                                                                                                                                                                            |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.01         |   | Certification of principal executive officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.              |
| 31.02         |   | Certification of principal finance and accounting officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |

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|   | PDF SOLUTIONS, INC. |
|--------|---------------------|
|   |                |   |
|   | By:                 | /s/ JOHN K. KIBARIAN |
|   |                | John K. Kibarian |
|   |                | President and Chief Executive Officer |
|   |                |   |
|   | By:                 | /s/ MICHAEL SHAHBAZIAN |
|   |                | Michael Shahbazian |
|   |                | Vice President |

| Date           | Signature                         | Title                                           |
|----------------|-----------------------------------|-------------------------------------------------|
|           |                              |                                            |
| April 30, 2012 | /s/  JOHN K. KIBARIAN   | Director, President and Chief Executive Officer |
|           | John K. Kibarian                  | (principal executive officer)                   |
|           |                              |                                            |
| April 30, 2012 | /s/  MICHAEL SHAHBAZIAN | Vice President                                  |
|           | Michael Shahbazian                | (principal financial and accounting officer)    |
|           |                              |                                            |
| April 30, 2012 | /s/ KIMON W. MICHAELS             | Director, Vice President, Products and          |
|           | Kimon W. Michaels                 | Solutions                                       |
|           |                              |                                            |
| April 27, 2012 | /s/ LUCIO L. LANZA                | Chairman of the Board of Directors              |
|           | Lucio L. Lanza                    |                                            |
|           |                              |                                            |
| April 26, 2012 | /s/ R. STEPHEN HEINRICHS          | Director                                        |
|           | R. Stephen Heinrichs              |                                            |
|           |                              |                                            |
| April 26, 2012 | /s/ THOMAS CAULFIELD              | Director                                        |
|           | Thomas Caulfield                  |                                            |
|           |                              |                                            |
| April 26, 2012 | /s/ ALBERT Y.C. YU                | Director                                        |
|           | Albert Y.C. Yu                    |                                            |

----

| ExhibitNumber |   | Description                                                                                                                                                                               |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.01         |   | Certification of principal executive officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|          |   |                                                                                                                                                                                      |
| 31.02         |   | Certification of principal financial and accounting officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |