Document:

<PAGE>

                                                                   EXHIBIT 10.43

                          CADENCE DESIGN SYSTEMS, INC.

                     2000 NONSTATUTORY EQUITY INCENTIVE PLAN

1.       PURPOSES.

         (a)      AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide
a means by which Participants may receive grants of the following Stock Awards:
(i) Options, (ii) Incentive Stock, (iii) stock bonuses and (iv) rights to
acquire restricted stock.

         (b)      GENERAL PURPOSE. The Company, by means of the Plan, seeks to
retain the services of the group of persons eligible to receive Stock Awards, to
secure and retain the services of new members of this group and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

2.       DEFINITIONS.

         (a)      "AFFILIATE" means any parent corporation or subsidiary
corporation of the Company, whether now or hereafter existing, as those terms
are defined in Sections 424(e) and (f), respectively, of the Code.

         (b)      "BOARD" means the Board of Directors of the Company.

         (c)      "CODE" means the Internal Revenue Code of 1986, as amended.

         (d)      "COMMITTEE" means a committee of one or more members of the
Board appointed by the Board in accordance with subsection 3(c).

         (e)      "COMMON STOCK" means the common stock of the Company.

         (f)      "COMPANY" means Cadence Design Systems, Inc., a Delaware
corporation.

         (g)      "CONSULTANT" means any person, including an advisor, engaged
by the Company or an Affiliate to render consulting or advisory services and who
is compensated for such services. However, the term "Consultant" shall not
include Directors or members of the Board of Directors of an Affiliate.

         (h)      "CONTINUOUS SERVICE" means that the Participant's service with
the Company or an Affiliate is not interrupted or terminated. The Participant's
Continuous Service shall not be deemed to have terminated merely because of a
change in the capacity in which the Participant renders service to the Company
or an Affiliate or a change in the entity for which the Participant renders such
service, provided that there is no interruption or termination of the
Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate will not constitute an
interruption of Continuous Service. The Board

<PAGE>

or the chief executive officer of the Company, in that party's sole discretion,
may determine whether Continuous Service shall be considered interrupted in the
case of any leave of absence approved by that party, including sick leave,
military leave or any other personal leave.

         (i)      "DIRECTOR" means a member of the Board of Directors of the
Company.

         (j)      "EMPLOYEE" means any person employed by the Company or an
Affiliate.

         (k)      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (l)      "FAIR MARKET VALUE" means, as of any date, the average of the
high and low prices of the Common Stock, as reported on the New York Stock
Exchange. In the absence of such market for the Common Stock, the Fair Market
Value shall be determined in good faith by the Board.

         (m)      "INCENTIVE STOCK" means shares of Common Stock granted to a
Participant pursuant to Section 7 hereof.

         (n)      "INCENTIVE STOCK AGREEMENT" means a written agreement between
the Company and a holder of an award of Incentive Stock evidencing the terms and
conditions of an individual Incentive Stock grant. Each Incentive Stock
Agreement shall be subject to the terms and conditions of the Plan.

         (o)      "OPTION" means a nonstatutory stock option granted pursuant to
the Plan not intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

         (p)      "OPTION AGREEMENT" means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and conditions
of the Plan.

         (q)      "OPTIONHOLDER" means a person to whom an Option is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Option.

         (r)      "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

         (s)      "PLAN" means this Cadence Design Systems, Inc. 2000
Nonstatutory Equity Incentive Plan.

         (t)      "SECURITIES ACT" means the Securities Act of 1933, as amended.

         (u)      "STOCK AWARD" means any right granted under the Plan,
including an Option, Incentive Stock, a stock bonus and a right to acquire
restricted stock.

         (v)      "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

                                       2

<PAGE>

3.       ADMINISTRATION.

         (a)      ADMINISTRATION BY BOARD. The Board shall administer the Plan
unless and until the Board delegates administration to a Committee, as provided
in subsection 3(c).

         (b)      POWERS OF BOARD. The Board shall have the power, subject to,
and within the limitations of, the express provisions of the Plan:

                  (i)      To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock pursuant to a Stock Award; and the number of shares of
Common Stock with respect to which a Stock Award shall be granted to each such
person.

                  (ii)     To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

                  (iii)    To amend the Plan or a Stock Award as provided in
Section 12.

                  (iv)     Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company that are not in conflict with the provisions of the
Plan.

         (c)      DELEGATION TO COMMITTEE.

                  (i)      GENERAL. The Board may delegate administration of the
Plan to a Committee or Committees of one (1) or more members of the Board, and
the term "Committee" shall apply to any person or persons to whom such authority
has been delegated. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

         (d)      EFFECT OF BOARD'S DECISION. All determinations,
interpretations and constructions made by the Board in good faith shall not be
subject to review by any person and shall be final, binding and conclusive on
all persons.

                                       3

<PAGE>

4.       SHARES SUBJECT TO THE PLAN.

         (a)      SHARE RESERVE. Subject to the provisions of Section 11
relating to adjustments upon changes in Common Stock, the Common Stock that may
be issued pursuant to Stock Awards shall not exceed in the aggregate Fifty
Million (50,000,000) shares of Common Stock.

         (b)      REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award
shall for any reason expire or otherwise terminate, in whole or in part, without
having vested or been exercised in full, the shares of Common Stock not acquired
under such Stock Award shall revert to and again become available for issuance
under the Plan. If the Company repurchases any unvested shares of Common Stock
acquired pursuant to a Stock Award, such repurchased shares of Common Stock
shall revert to and again become available for issuance under the Plan.

         (c)      SOURCE OF SHARES. The shares of Common Stock subject to the
Plan may be unissued shares or reacquired shares, bought on the market or
otherwise.

5.       ELIGIBILITY.

         (a)      ELIGIBILITY FOR SPECIFIC STOCK AWARDS. The Board may grant
Stock Awards only to Employees or Consultants as defined in Section 2 hereof.
The Board may grant an additional Stock Award or Stock Awards to an Employee or
a Consultant who has been granted a Stock Award if he or she is otherwise
eligible. Notwithstanding the foregoing, the Board may not grant a Stock Award
to an Employee or Consultant who is an executive officer of the Company within
the meaning of Section 16 of the Exchange Act, who is a Director or who
beneficially owns ten percent (10%) or more of the Company's Common Stock unless
the Stock Award will be granted to a person not previously employed by the
Company as a material inducement to such person's entering into an employment
contract with the Company.

         (b)      CONSULTANTS.

                  (i)      A Consultant shall not be eligible for the grant of a
Stock Award if, at the time of grant, a Form S-8 Registration Statement under
the Securities Act ("Form S-8") is not available to register either the offer or
the sale of the Company's securities to such Consultant because of the nature of
the services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both (i) that such
grant (A) shall be registered in another manner under the Securities Act (e.g.,
on a Form S-3 Registration Statement) or (B) does not require registration under
the Securities Act in order to comply with the requirements of the Securities
Act, if applicable, and (ii) that such grant complies with the securities laws
of all other relevant jurisdictions.

                  (ii)     Form S-8 generally is available to consultants and
advisors only if (i) they are natural persons; (ii) they provide bona fide
services to the issuer, its parents, its majority-owned subsidiaries or
majority-owned subsidiaries of the issuer's parent; and (iii) the services are
not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for
the issuer's securities.

                                       4

<PAGE>

6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

         (a)      TERM. The Board shall determine the term of each Option.

         (b)      EXERCISE PRICE. The exercise price of each Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the Common
Stock subject to the Option on the date the Option is granted. Notwithstanding
the foregoing, a Nonstatutory Stock Option may be granted with an exercise price
lower than that set forth in the preceding sentence if such Option is granted
pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

         (c)      CONSIDERATION. The purchase price of Common Stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (i) in cash at the time the Option is exercised
or (ii) at the discretion of the Board at the time of the grant of the Option or
subsequently (1) by delivery to the Company of other Common Stock, (2) according
to a deferred payment or other similar arrangement with the Optionholder or (3)
in any other form of legal consideration that may be acceptable to the Board.
Unless otherwise specifically provided in the Option, the purchase price of
Common Stock acquired pursuant to an Option that is paid by delivery to the
Company of other Common Stock acquired, directly or indirectly from the Company,
shall be paid only by shares of the Common Stock of the Company that have been
held for more than six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes). At
any time that the Company is incorporated in Delaware, payment of the Common
Stock's "par value," as defined in the Delaware General Corporation Law, shall
not be made by deferred payment. In making its determination as to the type of
consideration to accept, the Board shall consider if acceptance of such
consideration may be reasonably expected to benefit the Company.

         In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

         (d)      TRANSFERABILITY. An Option shall be transferable to the extent
provided in the Option Agreement. If the Option does not provide for
transferability, then the Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder. Notwithstanding the
foregoing, the Optionholder may, by delivering written notice to the Company, in
a form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionholder, shall thereafter be entitled to exercise the
Option.

         (e)      VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that

                                       5

<PAGE>

may, but need not, be equal. The Option may be subject to such other terms and
conditions on the time or times when it may be exercised (which may be based on
performance or other criteria) as the Board may deem appropriate. The vesting
provisions of individual Options may vary. The provisions of this subsection
6(e) are subject to any Option provisions governing the minimum number of shares
of Common Stock as to which an Option may be exercised.

         (f)      TERMINATION OF CONTINUOUS SERVICE. In the event an
Optionholder's Continuous Service terminates (other than upon the Optionholder's
death or disability), the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified in the Option Agreement, the Option
shall terminate.

         (g)      EXTENSION OF TERMINATION DATE. An Optionholder's Option
Agreement may also provide that if the exercise of the Option following the
termination of the Optionholder's Continuous Service (other than upon the
Optionholder's death or disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
expiration of a period of three (3) months after the termination of the
Optionholder's Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

         (h)      DISABILITY OF OPTIONHOLDER. In the event that an
Optionholder's Continuous Service terminates as a result of the Optionholder's
disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement) or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination,
the Optionholder does not exercise his or her Option within the time specified
herein, the Option shall terminate.

         (i)      DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but
only within the period ending on the earlier of (1) the date twelve (12) months
following the date of death (or such longer or shorter period specified in the
Option Agreement) or (2) the expiration of the term of such Option as set forth
in the Option Agreement. If, after death, the Option is not exercised within the
time specified herein, the Option shall terminate.

                                       6

<PAGE>

         (j)      EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Any unvested shares of Common Stock so purchased may
be subject to a repurchase option in favor of the Company or to any other
restriction the Board determines to be appropriate.

         (k)      RE-LOAD OPTIONS.

                  (i)      Without in any way limiting the authority of the
Board to make or not to make grants of Options hereunder, the Board shall have
the authority (but not an obligation) to include as part of any Option Agreement
a provision entitling the Optionholder to a further Option (a "Re-Load Option")
in the event the Optionholder exercises the Option evidenced by the Option
Agreement, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Option Agreement.
Unless otherwise specifically provided in the Option, the Optionholder shall not
surrender shares of Common Stock acquired, directly or indirectly from the
Company, unless such shares have been held for more than six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes).

                  (ii)     Any such Re-Load Option shall (1) provide for a
number of shares of Common Stock equal to the number of shares of Common Stock
surrendered as part or all of the exercise price of such Option; (2) have an
expiration date which is the same as the expiration date of the Option the
exercise of which gave rise to such Re-Load Option; and (3) have an exercise
price which is equal to one hundred percent (100%) of the Fair Market Value of
the Common Stock subject to the Re-Load Option on the date of exercise of the
original Option. Notwithstanding the foregoing, a Re-Load Option shall be
subject to the same exercise price and term provisions heretofore described for
Options under the Plan.

                  (iii)    There shall be no Re-Load Options on a Re-Load
Option. Any such Re-Load Option shall be subject to the availability of
sufficient shares of Common Stock under subsection 4(a) and shall be subject to
such other terms and conditions as the Board may determine which are not
inconsistent with the express provisions of the Plan regarding the terms of
Options.

7.       INCENTIVE STOCK

         (a)      GENERAL. Incentive Stock is an award or issuance of shares of
Common Stock the grant, issuance, retention, vesting and/or transferability of
which is subject during specified periods of time to such conditions (including
continued employment or performance conditions) and terms as the Board deems
appropriate.

         (b)      INCENTIVE STOCK AGREEMENT. Each Incentive Stock Agreement
shall contain provisions regarding (a) the number of shares of Common Stock
subject to such award or a formula for determining such, (b) the purchase price
of the shares, if any, and the means of payment for the shares, (c) the
performance criteria, if any, and level of achievement versus these criteria
that shall determine the number of shares granted, issued, retainable and/or
vested, (d)

                                       7

<PAGE>

such terms and conditions on the grant, issuance, vesting and/or forfeiture of
the shares as may be determined from time to time by the Board, (e) restrictions
on the transferability of the shares and (f) such further terms and conditions
in each case not inconsistent with this Plan as may be determined from time to
time by the Board. Shares of Incentive Stock may be issued in the name of the
Participant and held by the Participant or held by the Company, in each case as
the Board may provide.

         (c)      SALES PRICE. Subject to the requirements of applicable law,
the Board shall determine the price, if any, at which shares of Incentive Stock
shall be sold or awarded to a Participant, which may vary from time to time and
among Participants and which may be below the Fair Market Value of such shares
at the date of grant or issuance.

         (d)      SHARE VESTING. The grant, issuance, retention and/or vesting
of shares of Incentive Stock shall be at such time and in such installments as
determined by the Board. The Board shall have the right to make the timing of
the grant and/or the issuance, ability to retain and/or vesting of shares of
Incentive Stock subject to continued employment, passage of time and/or such
performance criteria as deemed appropriate by the Board.

         (e)      TRANSFERABILITY. Shares of Incentive Stock shall be
transferable by the Participant only upon such terms and conditions as are set
forth in the Incentive Stock Agreement, as the Board shall determine in its
discretion, so long as Incentive Stock awarded under the Incentive Stock
Agreement remains subject to the terms of the Incentive Stock Agreement.

         (f)      DISCRETIONARY ADJUSTMENTS. Notwithstanding satisfaction of any
performance goals, the number of shares granted, issued, retainable and/or
vested under an award of Incentive Stock on account of either financial
performance or personal performance evaluations may be reduced by the Board on
the basis of such further considerations as the Board shall determine.

8.       PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS AND INCENTIVE STOCK.

         (a)      STOCK BONUS AWARDS. Each stock bonus agreement shall be in
such form and shall contain such terms and conditions as the Board shall deem
appropriate. The terms and conditions of stock bonus agreements may change from
time to time, and the terms and conditions of separate stock bonus agreements
need not be identical, but each stock bonus agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i)      CONSIDERATION. A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

                  (ii)     VESTING. Shares of Common Stock awarded under the
stock bonus agreement may, but need not, be subject to a share repurchase option
in favor of the Company in accordance with a vesting schedule to be determined
by the Board.

                  (iii)    TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In
the event a Participant's Continuous Service terminates, the Company may
reacquire any or all of the shares

                                       8

<PAGE>

of Common Stock held by the Participant which have not vested as of the date of
termination under the terms of the stock bonus agreement.

                  (iv)     TRANSFERABILITY. Rights to acquire shares of Common
Stock under the stock bonus agreement shall be transferable by the Participant
only upon such terms and conditions as are set forth in the stock bonus
agreement, as the Board shall determine in its discretion, so long as Common
Stock awarded under the stock bonus agreement remains subject to the terms of
the stock bonus agreement.

         (b)      RESTRICTED STOCK AWARDS. Each restricted stock purchase
agreement shall be in such form and shall contain such terms and conditions as
the Board shall deem appropriate. The terms and conditions of the restricted
stock purchase agreements may change from time to time, and the terms and
conditions of separate restricted stock purchase agreements need not be
identical, but each restricted stock purchase agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions:

                  (i)      PURCHASE PRICE. The purchase price under each
restricted stock purchase agreement shall be such amount as the Board shall
determine and designate in such restricted stock purchase agreement. The
purchase price shall not be less than one hundred percent (100%) of the Common
Stock's Fair Market Value on the date such award is made or at the time the
purchase is consummated.

                  (ii)     CONSIDERATION. The purchase price of Common Stock
acquired pursuant to the restricted stock purchase agreement shall be paid
either: (i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be
acceptable to the Board in its discretion; provided, however, that at any time
that the Company is incorporated in Delaware, then payment of the Common Stock's
"par value," as defined in the Delaware General Corporation Law, shall not be
made by deferred payment.

                  (iii)    VESTING. Shares of Common Stock acquired under the
restricted stock purchase agreement may, but need not, be subject to a share
repurchase option in favor of the Company in accordance with a vesting schedule
to be determined by the Board.

                  (iv)     TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In
the event a Participant's Continuous Service terminates, the Company may
repurchase or otherwise reacquire any or all of the shares of Common Stock held
by the Participant which have not vested as of the date of termination under the
terms of the restricted stock purchase agreement.

                  (v)      TRANSFERABILITY. Rights to acquire shares of Common
Stock under the restricted stock purchase agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
restricted stock purchase agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the restricted stock purchase
agreement remains subject to the terms of the restricted stock purchase
agreement.

                                        9

<PAGE>

9.       COVENANTS OF THE COMPANY.

         (a)      AVAILABILITY OF SHARES. During the terms of the Stock Awards,
the Company shall keep available at all times the number of shares of Common
Stock required to satisfy such Stock Awards.

         (b)      SECURITIES LAW COMPLIANCE. The Company shall seek to obtain
from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority which counsel for
the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise of such Stock Awards unless and until
such authority is obtained.

10.      USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

11.      MISCELLANEOUS.

         (a)      ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall
have the power to accelerate the time at which a Stock Award may first be
exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest.

         (b)      ADDITIONAL RESTRICTIONS ON STOCK AWARDS. Either at the time a
Stock Award is granted or by subsequent action, the Board may, but need not,
impose such restrictions, conditions or limitations as it determines appropriate
as to the timing and manner of any resales by a Participant or other subsequent
transfers by a Participant of any shares issued under a Stock Award, including
without limitation (a) restrictions under an insider trading policy, (b)
restrictions designed to delay and/or coordinate the timing and manner of sales
by Participants, and (c) restrictions as to the use of a specified brokerage
firm for such resales or other transfers.

         (c)      STOCKHOLDER RIGHTS. No Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to such Stock Award unless and until such Participant
has satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

         (d)      NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or
any instrument executed or Stock Award granted pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or an Affiliate
in the capacity in effect at the time the Stock Award was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the employment
of an Employee with or without notice and with or without cause, or (ii) the
service

                                       10

<PAGE>

of a Consultant pursuant to the terms of such Consultant's agreement with the
Company or an Affiliate.

         (e)      INVESTMENT ASSURANCES. The Company may require a Participant,
as a condition of exercising or acquiring Common Stock under any Stock Award,
(i) to give written assurances satisfactory to the Company as to the
Participant's knowledge and experience in financial and business matters and/or
to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters and that he
or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

         (f)      WITHHOLDING OBLIGATIONS. To the extent provided by the terms
of a Stock Award Agreement, the Participant may satisfy any federal, state or
local tax withholding obligation relating to the exercise or acquisition of
Incentive Stock or Common Stock under a Stock Award by any of the following
means (in addition to the Company's right to withhold from any compensation paid
to the Participant by the Company) or by a combination of such means: (i)
tendering a cash payment; (ii) authorizing the Company to withhold shares of
Common Stock from the shares of Common Stock otherwise issuable to the
Participant as a result of the exercise or acquisition of Common Stock under the
Stock Award, provided, however, that no shares of Common Stock are withheld with
a value exceeding the minimum amount of tax required to be withheld by law; or
(iii) delivering to the Company owned and unencumbered shares of Common Stock.

12.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a)      CAPITALIZATION ADJUSTMENTS. If any change is made in the
Common Stock subject to the Plan, or subject to any Stock Award, without the
receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to subsection 4(a), and outstanding Stock Awards will be
appropriately adjusted in the class(es) and number of securities and price per
share of Common Stock subject to such outstanding Stock Awards. The Board shall
make such adjustments, and its determination shall be final, binding and
conclusive.

                                       11

<PAGE>

(The conversion of any convertible securities of the Company shall not be
treated as a transaction "without receipt of consideration" by the Company.)

         (b)      CHANGE IN CONTROL.

                  (i)      A "Change in Control" shall be deemed to occur upon
the consummation of any one of the following events: (a) a sale of all or
substantially all of the assets of the Company; (b) a merger or consolidation in
which the Company is not the surviving corporation (other than a transaction the
principal purpose of which is to change the state of the Company's incorporation
or a transaction in which the voting securities of the Company are exchanged for
beneficial ownership of at least fifty percent (50%) of the voting securities of
the controlling acquiring corporation); (c) a merger or consolidation in which
the Company is the surviving corporation and less than fifty percent (50%) of
the voting securities of the Company that are outstanding immediately after the
consummation of such transaction are beneficially owned, directly or indirectly,
by the persons who owned such voting securities immediately prior to such
transaction; (d) any transaction or series of related transactions after which
any person (as such term is used in Section 13(d)(3) of the Exchange Act), other
than any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Affiliate, becomes the beneficial owner of voting securities of
the Company representing forty percent (40%) or more of the combined voting
power of all of the voting securities of the Company; (e) during any period of
two consecutive years, individuals who at the beginning of such period
constitute the membership of the Company's Board of Directors ("Incumbent
Directors") cease for any reason to have authority to cast at least a majority
of the votes which all Directors are entitled to cast, unless the election, or
the nomination for election by the Company's stockholders, of a new Director was
approved by a vote of at least two-thirds of the votes entitled to be cast by
the Incumbent Directors, in which case such director shall also be treated as an
Incumbent Director in the future; or (f) the liquidation or dissolution of the
Company.

                  (ii)     In the event of a Change in Control, then: (a) any
surviving or acquiring corporation shall assume Stock Awards outstanding under
the Plan or shall substitute similar Stock Awards (including an option to
acquire the same consideration paid to stockholders in the transaction described
in this subsection 11(b) for those outstanding under the Plan), or (b) in the
event any surviving or acquiring corporation refuses to assume such Stock Awards
or to substitute similar Stock Awards for those outstanding under the Plan, (i)
with respect to Stock Awards held by persons whose Continuous Service has not
terminated, the vesting both of such Stock Awards and of any shares of Common
Stock acquired pursuant to a Stock Award as well as the time during which such
Stock Awards may be exercised shall be accelerated prior to such event and the
Stock Awards terminated if not exercised after such acceleration and at or prior
to such event, and (ii) with respect to any other Stock Awards outstanding under
the Plan, if there is a successor corporation, such Stock Awards shall be
terminated if not exercised prior to such event.

13.      LIABILITY OF COMPANY.

         The Company and any Affiliate which is in existence or hereafter comes
into existence shall not be liable to a Participant or other persons as to:

                                       12

<PAGE>

         (a)      THE NON-ISSUANCE OF SHARES. The non-issuance or sale of shares
as to which the Company has been unable to obtain from any regulatory body
having jurisdiction the authority deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any shares hereunder; or

         (b)      TAX CONSEQUENCES. Any tax consequence expected, but not
realized, by any Participant or other person due to the receipt, exercise or
settlement of any Stock Award granted hereunder.

14.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

         (a)      AMENDMENT OF PLAN. The Board at any time, and from time to
time, may amend the Plan.

         (b)      NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted
before amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the Company requests the consent of the Participant and (ii) the
Participant consents in writing.

         (c)      AMENDMENT OF STOCK AWARDS. The Board at any time, and from
time to time, may amend the terms of any one or more Stock Awards; provided,
however, that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

15.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a)      PLAN TERM. The Board may suspend or terminate the Plan at any
time.

         (b)      NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan
shall not impair rights and obligations under any Stock Award granted while the
Plan is in effect except with the written consent of the Participant.

16.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective on January 1, 2000.

17.      CHOICE OF LAW.

         The law of the State of Delaware shall govern all questions concerning
the construction, validity and interpretation of this Plan, without regard to
such state's conflict of laws rules.

                                       13<PAGE>

                                                                   EXHIBIT 10.47

                          CADENCE DESIGN SYSTEMS, INC.

                     1997 NONSTATUTORY STOCK INCENTIVE PLAN

         1.       PURPOSES OF THE PLAN.

                  (a)      Amendment and Restatement. The Plan initially was
established as the 1997 Non-Statutory Stock Option Plan and most recently was
amended effective as of November 1, 2000. The Plan hereby is amended and
restated in its entirety, effective upon adoption.

                  (b)      Specific Purposes. The purposes of this Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to the Employees and Consultants
(as such terms are defined below) of the Company and its Affiliates, and to
promote the success of the Company's business.

         2.       DEFINITIONS. As used herein, the following definitions shall
apply:

                  (a)      "AFFILIATE" shall mean any parent corporation or
subsidiary corporation, whether now or hereafter existing, as those terms are
defined in Sections 424(e) and (f) respectively, of the Code, or such other
parent corporation or subsidiary corporation designated by the Board.

                  (b)      "BOARD" shall mean the Committee, if one has been
appointed, or the Board of Directors, if no Committee is appointed.

                  (c)      "BOARD OF DIRECTORS" shall mean the Board of
Directors of the Company.

                  (d)      "CODE" shall mean the Internal Revenue Code of 1986,
as amended.

                  (e)      "COMMITTEE" shall mean the Committee appointed by the
Board of Directors in accordance with paragraph (a) of Section 4 of the Plan, if
one is appointed.

                  (f)      "COMMON STOCK" shall mean the Common Stock of the
Company.

                  (g)      "COMPANY" shall mean CADENCE DESIGN SYSTEMS, INC., a
Delaware corporation.

                  (h)      "CONSULTANT" shall mean any consultants, independent
contractors or advisers to the Company or an Affiliate (provided that such
persons render bona fide services not in connection with the offering and sale
of securities in capital raising transactions).

                  (i)      "CONTINUOUS STATUS AS AN EMPLOYEE OR CONSULTANT"
shall mean the absence of any interruption or termination of service to the
Company or an Affiliate, whether as

<PAGE>

an Employee or Consultant. The Board or the Chief Executive Officer of the
Company may determine, in that party's sole discretion, whether Continuous
Status as an Employee or Consultant shall be considered interrupted in the case
of: (i) any leave of absence approved by the Board or the Chief Executive
Officer of the Company, including sick leave, military leave, or any other
personal leave; or (ii) transfers between the Company, Affiliates or their
successors.

                  (j)      "EMPLOYEE" shall mean any person employed by the
Company or by any Affiliate.

                  (k)      "EXCHANGE ACT" shall mean the Securities Exchange Act
of 1934, as amended.

                  (l)      "INCENTIVE STOCK" means shares of Common Stock
granted to a Participant pursuant to Section 10 hereof.

                  (m)      "INCENTIVE STOCK AGREEMENT" means a written agreement
between the Company and a holder of an award of Incentive Stock evidencing the
terms and conditions of an individual Incentive Stock grant. Each Incentive
Stock Agreement shall be subject to the terms and conditions of the Plan.

                  (n)      "NONSTATUTORY STOCK OPTION" shall mean an Option not
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and the regulations promulgated thereunder.

                  (o)      "OPTION" shall mean a nonstatutory stock option
granted pursuant to the Plan.

                  (p)      "OPTION AGREEMENT" shall mean a written agreement
between the Company and a Participant evidencing the terms and conditions of an
individual Option grant. Each Option Agreement shall be subject to the terms and
conditions of the Plan.

                  (q)      "OPTIONED STOCK" shall mean the Common Stock subject
to an Option.

                  (r)      "PARTICIPANT" shall mean an Employee or Consultant
who receives a Stock Award.

                  (s)      "PLAN" shall mean this 1997 Nonstatutory Stock
Incentive Plan.

                  (t)      "SHARE" shall mean a share of Common Stock, as
adjusted in accordance with Section 12 of the Plan.

                  (u)      "STOCK AWARD" shall mean any right granted under the
Plan, including an Option or Incentive Stock.

         3.       STOCK SUBJECT TO THE PLAN. Subject to the provisions of
Section 12 of the Plan, the maximum aggregate number of Shares which may be
issued pursuant to the Plan is thirty million (30,000,000) shares of Common
Stock. The Shares may be authorized, but unissued, or reacquired Common Stock.
If a Stock Award should expire, become unexercisable or otherwise

                                       2

<PAGE>

terminate for any reason without having vested or been exercised in full, the
unpurchased Shares which were subject thereto shall, unless the Plan shall have
been terminated, become available for future grant under the Plan.

         4.       ADMINISTRATION OF THE PLAN.

                  (a)      Procedure. The Plan shall be administered by the
Board of Directors. The Board of Directors may appoint a Committee consisting of
not less than two members of the Board of Directors to administer the Plan on
behalf of the Board of Directors, subject to such terms and conditions as the
Board of Directors may prescribe. In such event, any references in the Plan to
the Board of Directors shall be deemed to refer to the Committee. Once
appointed, the Committee shall continue to serve until otherwise directed by the
Board of Directors. From time to time the Board of Directors may increase the
size of the Committee and appoint additional members thereof, remove members
(with or without cause), and appoint new members in substitution therefor, fill
vacancies however caused and remove all members of the Committee, and thereafter
directly administer the Plan. Notwithstanding anything in this Section 4 to the
contrary, at any time the Board of Directors or the Committee may delegate to a
committee of one or more members of the Board of Directors the authority to
grant Stock Awards to all Employees and Consultants or any portion or class
thereof.

                  (b)      Powers of the Board. Subject to the provisions of the
Plan, the Board shall have such authority with regard to the Plan and the Stock
Awards as determined by the Board of Directors, including the authority, in its
discretion: (i) to grant Stock Awards under the Plan; (ii) to determine, upon
review of relevant information and in accordance with Section 8(c) of the Plan,
the fair market value of the Common Stock; (iii) to determine the exercise price
per share of Options to be granted, which exercise price shall be determined in
accordance with Section 8(a) of the Plan; (iv) to determine the Employees or
Consultants to whom, and the time or times at which, Stock Awards shall be
granted and the number of Shares to be represented by each Stock Award, provided
that no Stock Awards may be granted to persons who are neither Employees nor
Consultants; (v) to interpret the Plan; (vi) to prescribe, amend and rescind
rules and regulations relating to the Plan; (vii) to determine the terms and
provisions of each Stock Award granted (which need not be identical) in
accordance with the Plan, and, with the consent of the holder thereof with
respect to any adverse change, modify or amend each Stock Award; (viii) to
accelerate or defer (the latter with the consent of the Participant) the
exercise date and vesting of any Stock Award; (ix) to authorize any person to
execute on behalf of the Company any instrument required to effectuate the grant
of an Stock Award previously granted by the Board; and (x) to make all other
determinations deemed necessary or advisable for the administration of the Plan.

                  (c)      Effect of Board's Decision. All decisions,
determinations and interpretations of the Board shall be final and binding on
all Participants and any other holders of any Stock Awards granted under the
Plan.

         5.       ELIGIBILITY. Stock Awards may be granted only to Employees or
Consultants as defined in Section 2 hereof. An Employee or Consultant who has
been granted a Stock Award may, if he or she is otherwise eligible, be granted
an additional Stock Award. Notwithstanding the foregoing, no Employee or
Consultant who is an executive officer of the Company within the

                                       3

<PAGE>

meaning of Section 16 of the Exchange Act, who is a member of the Board of
Directors or who beneficially owns 10% or more of the Company's Common Stock
shall be entitled to receive the grant of a Stock Award under the Plan.

                  The Plan shall not confer upon any Participant any right with
respect to continuation of employment or consultancy by the Company, nor shall
it interfere in any way with the Participant's right or the Company's right to
terminate the Participant's employment at any time or the Participant's
consultancy pursuant to the terms of the Consultant's agreement with the
Company.

         6.       TERM OF THE PLAN. The Plan shall become effective upon its
adoption by the Board of Directors. It shall continue in effect until terminated
under Section 16 of the Plan.

         7.       TERM OF OPTION. The term of each Option shall be ten (10)
years from the date of grant thereof or such shorter term as may be provided in
the Option Agreement.

         8.       EXERCISE PRICE, CONSIDERATION AND VESTING.

                  (a)      Exercise Price. The per Share exercise price for the
Shares to be issued pursuant to exercise of an Option shall be no less than 100%
of the fair market value per Share on the date of grant. Notwithstanding the
foregoing, an Option may be granted with an exercise price lower than set forth
above if such Option is granted pursuant to an assumption or substitution for
another option in a manner which substantially satisfies the provisions of
Section 424(a) of the Code.

                  (b)      Fair Market Value. The fair market value shall be
determined by the Board in its discretion; provided however, that where there is
a public market for the Common Stock, the fair market value per Share shall be
the average of the high and low prices of the Common Stock on the date of grant,
as reported on the New York Stock Exchange.

                  (c)      Consideration. The consideration to be paid for the
Shares to be issued upon exercise of an Option, including the method of payment,
shall be determined by the Board and may consist entirely of (i) cash or check;
(ii) promissory note (except that payment of the common stock's "par value", as
defined in the Delaware General Corporation Law, shall not be made by deferred
payment); (iii) other shares of the Common Stock of the Company having a fair
market value on the date of surrender equal to the aggregate exercise price of
the Shares as to which the Option shall be exercised, including by delivering to
the Company an attestation of ownership of owned and unencumbered shares of the
Common Stock of the Company in a form approved by the Company; (iv) payment
pursuant to a program developed under Regulation T as promulgated by the Federal
Reserve Board which, prior to the issuance of Common Stock, results in either
the receipt of cash (or check) by the Company or the receipt of irrevocable
instructions to pay the aggregate exercise price to the Company from the sales
proceeds; (v) any combination of such methods of payment; or (vi) such other
consideration and method of payment for the issuance of Shares to the extent
permitted under applicable law. In making its determination as to the type of
consideration to accept, the Board shall consider if acceptance of such
consideration may be reasonably expected to benefit the Company.

                                       4

<PAGE>

                  (d)      Vesting. The total number of Shares subject to an
Option may, but need not, be allotted in periodic installments (which may, but
need not, be equal). The Option Agreement may provide that, from time to time
during each of such installment periods, the Option may become exercisable
("vest") with respect to some or all of the Shares allotted to that period, and
may be exercised with respect to some or all of the Shares allotted to such
period and/or any prior period as to which the Option became vested but was not
fully exercised. The Option may be subject to such other terms and conditions on
the time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate. The provisions of this
Section 8(d) are subject to any Option provisions governing the minimum number
of Shares as to which an Option may be exercised.

         9.       EXERCISE OF OPTION.

                  (a)      Procedure for Exercise; Rights as a Stockholder. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Board, including performance criteria with
respect to the Company and/or the Participant, and as shall be permissible under
the terms of the Plan.

                           An Option may not be exercised for a fraction of a
Share.

                           An Option shall be deemed to be exercised when
written notice of such exercise has been given to the Company in accordance with
the terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may, as authorized by the Board, consist
of any consideration and method of payment allowable under Section 8(c) of the
Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the stock
certificate is issued, except as provided in Section 12 of the Plan.

                           Exercise of an Option in any manner shall result in a
decrease in the number of Shares which thereafter may be available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as
to which the Option is exercised.

                           The Option may, but need not, include a provision
whereby the Participant may elect at any time while an Employee or Consultant
(or while an officer or director of the Company) to exercise the Option as to
any part or all of the shares subject to the Option, subject to a repurchase
right in favor of the Company on such terms as the Board shall establish.

                  (b)      Termination of Status as an Employee or Consultant.
If a Participant ceases to serve as an Employee or Consultant for any reason
other than death or disability, the Participant may, but only within three (3)
months (or such other period of time as is determined by the Board) after the
date the Participant ceases to be an Employee or Consultant, exercise the Option
to the extent that the Participant was entitled to exercise it at the date of
such termination. To the extent that the Participant was not entitled to
exercise the Option at the date of such

                                       5

<PAGE>

termination, or if the Participant does not exercise such Option (which the
Participant was entitled to exercise) within the time specified herein, the
Option shall terminate.

                  (c)      Death of Participant. In the event of the death of a
Participant during the term of the Option who is at the time of his or her death
an Employee or Consultant and who shall have been in Continuous Status as an
Employee or Consultant since the date of grant of the Option, the Option may be
exercised at any time within twelve (12) months (or such other period of time as
is determined by the Board) following the date of death, by the Participant's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, to the extent that the Participant was entitled to exercise it
at the date of such termination. To the extent that the Participant was not
entitled to exercise the Option at the date of such termination, or if the
Option is not exercised (to the extent the Participant was entitled to exercise)
within the time specified herein, the Option shall terminate.

                  (d)      Disability of Participant. In the event of the
disability of a Participant during the term of the Option who is at the time of
his or her disability an Employee or Consultant and who shall have been in
Continuous Status as an Employee or Consultant since the date of grant of the
Option, the Participant (or the Participant's legal guardian or conservator)
may, but only within twelve (12) months (or such other period of time as is
determined by the Board) after the date the Participant ceases to be an Employee
or Consultant on account of such disability, exercise the Option to the extent
that the Participant was entitled to exercise it at the date of such
termination. To the extent that the Participant was not entitled to exercise the
Option at the date of such termination, or if the Participant does not exercise
such Option (which the Participant was entitled to exercise) within the time
specified herein, the Option shall terminate.

         10.      INCENTIVE STOCK.

                  (a)      General. Incentive Stock is an award or issuance of
shares of Common Stock the grant, issuance, retention, vesting and/or
transferability of which is subject during specified periods of time to such
conditions (including continued employment or performance conditions) and terms
as the Board deems appropriate.

                  (b)      Incentive Stock Agreement. Each Incentive Stock
Agreement shall contain provisions regarding (a) the number of shares of Common
Stock subject to such award or a formula for determining such, (b) the purchase
price of the shares, if any, and the means of payment for the shares, (c) the
performance criteria, if any, and level of achievement versus these criteria
that shall determine the number of shares granted, issued, retainable and/or
vested, (d) such terms and conditions on the grant, issuance, vesting and/or
forfeiture of the shares as may be determined from time to time by the Board,
(e) restrictions on the transferability of the shares and (f) such further terms
and conditions in each case not inconsistent with this Plan as may be determined
from time to time by the Board. Shares of Incentive Stock may be issued in the
name of the Participant and held by the Participant or held by the Company, in
each case as the Board may provide.

                  (c)      Sales Price. Subject to the requirements of
applicable law, the Board shall determine the price, if any, at which shares of
Incentive Stock shall be sold or awarded to a

                                       6

<PAGE>

Participant, which may vary from time to time and among Participants and which
may be below the Fair Market Value of such shares at the date of grant or
issuance.

                  (d)      Share Vesting. The grant, issuance, retention and/or
vesting of shares of Incentive Stock shall be at such time and in such
installments as determined by the Board. The Board shall have the right to make
the timing of the grant and/or the issuance, ability to retain and/or vesting of
shares of Incentive Stock subject to continued employment, passage of time
and/or such performance criteria as deemed appropriate by the Board.

                  (e)      Transferability. Shares of Incentive Stock shall be
transferable by the Participant only upon such terms and conditions as are set
forth in the Incentive Stock Agreement, as the Board shall determine in its
discretion, so long as Incentive Stock awarded under the Incentive Stock
Agreement remains subject to the terms of the Incentive Stock Agreement.

                  (f)      Discretionary Adjustments. Notwithstanding
satisfaction of any performance goals, the number of shares granted, issued,
retainable and/or vested under an award of Incentive Stock on account of either
financial performance or personal performance evaluations may be reduced by the
Board on the basis of such further considerations as the Board shall determine.

         11.      TRANSFERABILITY OF STOCK AWARDS. Except as otherwise expressly
provided in the terms of the Option Agreement or Incentive Stock Agreement, a
Stock Award may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or
distribution and may be exercised, during the lifetime of the Participant, only
by the Participant. Notwithstanding the foregoing, the Participant may, by
delivering written notice to the Company, in a form satisfactory to the Company,
designate a third party who, in the event of the death of the Participant, shall
thereafter be entitled to exercise the Stock Award.

         12.      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER. The
number of Shares covered by each outstanding Stock Award, and the number of
Shares which have been authorized for issuance under the Plan but as to which no
Stock Awards have yet been granted or which have been returned to the Plan upon
cancellation or expiration of a Stock Award, as well as the price per Share
covered by each such outstanding Stock Award, shall be proportionately adjusted
for any increase or decrease in the number of issued shares of Common Stock
resulting from a stock split or the payment of a stock dividend with respect to
the Common Stock or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration".
Such adjustments shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to a Stock Award.

                                       7

<PAGE>

         For purposes of the Plan, a "Change in Control" shall be deemed to
occur upon the consummation of any one of the following events: (a) a sale of
all or substantially all of the assets of the Company; (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a transaction the principal purpose of which is to change the state of the
Company's incorporation or a transaction in which the voting securities of the
Company are exchanged for beneficial ownership of at least 50% of the voting
securities of the controlling acquiring corporation); (c) a merger or
consolidation in which the Company is the surviving corporation and less than
50% of the voting securities of the Company which are outstanding immediately
after the consummation of such transaction are beneficially owned, directly or
indirectly, by the persons who owned such voting securities immediately prior to
such transaction; (d) any transaction or series of related transactions after
which any person (as such term is used in Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended), other than any employee benefit plan (or
related trust) sponsored or maintained by the Company or any subsidiary of the
Company, becomes the beneficial owner of voting securities of the Company
representing 40% or more of the combined voting power of all of the voting
securities of the Company; (e) during any period of two consecutive years,
individuals who at the beginning of such period constitute the membership of the
Company's Board of Directors ("Incumbent Directors") cease for any reason to
have authority to cast at least a majority of the votes which all directors on
the Board of Directors are entitled to cast, unless the election, or the
nomination for election by the Company's stockholders, of a new director was
approved by a vote of at least two-thirds of the votes entitled to be cast by
the Incumbent Directors, in which case such director shall also be treated as an
Incumbent Director in the future; or (f) the liquidation or dissolution of the
Company.

         In the event of a Change in Control, then: (a) any surviving or
acquiring corporation shall assume Stock Awards outstanding under the Plan or
shall substitute similar awards (including an option to acquire the same
consideration paid to stockholders in the transaction described in this Section
12 for those outstanding Options under the Plan), or (b) in the event any
surviving or acquiring corporation refuses to assume such Stock Awards or to
substitute similar awards for those outstanding under the Plan, (i) with respect
to Stock Awards held by persons then performing services as Employees or
Consultants, the vesting of such Stock Awards and the time during which such
Stock Awards may be exercised shall be accelerated prior to such event and the
Stock Awards terminated if not exercised after such acceleration and at or prior
to such event, and (ii) with respect to any other Options outstanding under the
Plan, such Options shall be terminated if not exercised prior to such event.

         Notwithstanding the foregoing, the Board shall at all times have the
complete and sole discretion to accelerate the vesting and exercisability of
some or all of the shares of Common Stock subject to any or all of then
outstanding Stock Awards granted under the Plan and to establish the date as of
which any such Stock Awards shall terminate (and all other terms and conditions
relating to such termination.)

         13.      TIME OF GRANTING STOCK AWARDS. The date of grant of a Stock
Award shall, for all purposes, be the date on which the Board makes the
determination granting such Stock Award. Notice of the determination shall be
given to each Employee or Consultant to whom a Stock Award is so granted within
a reasonable time after the date of such grant.

                                       8

<PAGE>

         14.      WITHHOLDING. To the extent provided by the terms of an Option
Agreement or Incentive Stock Agreement, the Participant may satisfy any federal,
state or local tax withholding obligation relating to the exercise or
acquisition of Common Stock under a Stock Award by any of the following means
(in addition to the Company's right to withhold from any compensation paid to
the Participant by the Company) or by a combination of such means: (i) tendering
a cash payment; (ii) authorizing the Company to withhold shares of Common Stock
from the shares of Common Stock otherwise issuable to the Participant as a
result of the exercise or acquisition of Common Stock under the Stock Award,
provided, however, that no shares of Common Stock are withheld with a value
exceeding the minimum amount of tax required to be withheld by law; or (iii)
delivering to the Company owned and unencumbered shares of Common Stock.

         15.      LIABILITY OF COMPANY. The Company and any Affiliate which is
in existence or hereafter comes into existence shall not be liable to a
Participant or other persons as to:

                  (a)      The Non-Issuance of Shares. The non-issuance or sale
of shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any shares hereunder; or

                  (b)      Tax Consequences. Any tax consequence expected, but
not realized, by any Participant or other person due to the receipt, exercise or
settlement of any Stock Award granted hereunder.

         16.      AMENDMENT AND TERMINATION OF THE PLAN.

                  (a)      Amendment and Termination. The Board may amend or
terminate the Plan from time to time in such respects as the Board may deem
advisable.

                  (b)      Effect of Amendment or Termination. Any such
amendment or termination of the Plan shall not affect Stock Awards already
granted, and such Stock Awards shall remain in full force and effect as if this
Plan had not been amended or terminated unless mutually agreed otherwise between
the Participant and the Board, which agreement must be in writing and signed by
the Participant and the Company.

         17.      CONDITIONS UPON ISSUANCE OF SHARES. The Company may require
any Participant, or any person to whom a Stock Award is transferred under
Section 11, as a condition of exercising any such Stock Award, (i) to give
written assurances satisfactory to the Company as to the Participant's knowledge
and experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (ii) to give written assurances
satisfactory to the Company stating that such person is acquiring the Shares
subject to the Stock Award for such person's own account and not with any
present intention of selling or otherwise distributing the Shares. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (1) the issuance of the Shares upon the exercise of the Stock
Award has been registered under a then currently

                                       9

<PAGE>

effective registration statement under the Securities Act of 1933, as amended,
or (2) as to any particular requirement, a determination is made by counsel for
the Company that such requirement need not be met in the circumstances under the
then applicable securities laws. The Company may require the Participant to
provide such other representations, written assurances or information which the
Company shall determine is necessary, desirable or appropriate to comply with
applicable securities and other laws as a condition of granting a Stock Award to
such Participant or permitting the Participant to exercise such Stock Award. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the shares.

         18.      RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.

                  Inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

         19.      AWARD AGREEMENT. Options shall be evidenced by written Option
Agreements and Incentive Stock shall be evidenced by written Incentive Stock
Agreements in such form or forms as the Board or the Committee shall approve.

         20.      EFFECTIVE DATE. The amended and restated Plan shall become
effective upon adoption.

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]