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Summary of Standard Director Compensation Arrangements - Non-Employee Directors

 EXHIBIT 10.14 
 MAGMA DESIGN AUTOMATION, INC. 
 Summary of Standard Director Compensation Arrangements for
Non-Employee Directors 
 Description of Director Compensation (effective as of May 5, 2008) 
 Directors who are employees of Magma do not receive separate compensation for service on the Board of Directors. Directors who are not employees of Magma
receive a cash retainer of $30,000 per year and $2,500 per Board or committee meeting attended ($1,000 for teleconference meetings) for services as a member of the Board of the Directors. In addition, the Chairman of the Audit Committee receives a
fee of $20,000 per year, and the Chairman of the Compensation and Nominating Committee receives a fee of $15,000 per year; the other members of the Audit Committee receive a fee of $10,000 per year, and the other members of the Compensation
Committee receive a fee of $7,500 per year. Magma reimburses its non-employee Directors for out-of-pocket expenses incurred in attending meetings of the board or its Committees. 
 Pursuant to the 2001 Stock Incentive Plan, as amended, which was approved by Magma’s stockholders, each non-employee director receives an initial
award of 20,000 restricted stock units upon appointment or election. The initial award vests as to 25% on the first anniversary of the award date. The remainder of the award vests quarterly over 12 quarters. Following the conclusion of each regular
annual meeting of stockholders, each continuing non-employee director receives an additional award of 10,000 restricted stock units. When a non-employee director is appointed to the Board of Directors at a time other than at an annual meeting, such
director receives an interim award that is a pro rata portion of the annual 10,000 restricted stock unit award. The annual awards and the interim awards vest in full on the day immediately prior to the annual meeting of stockholders in the year
immediately following the year of the grant if the director continues as a member of the Board on that date. All awards will vest fully upon a change in control of Magma, as set forth under the 2001 Stock Incentive Plan.Summary of Compensation Arrangement for Certain Executive Officers

 EXHIBIT 10.16(a) 
 MAGMA DESIGN AUTOMATION, INC. 
 Summary of Compensation Arrangement for Certain Executive Officers

 Exhibit 10.16(b) lists the executives for which this Exhibit 10.16(a) applies. In addition, Exhibit 10.16(b) sets forth the annualized base salary and
target bonus percentage for such named executive officers. Additional employees other than the executives set forth in Exhibit 10.16(b) may have the same or similar compensation as set forth in this Exhibit 10.16(a) and in Exhibit 10.16(b).

 Description of Compensation for Certain Executive Officers 
 Each such executive officer’s compensation package consists of three elements: 
  

	 	•	 	 base compensation, which compensates for the underlying job; 

  

	 	•	 	 variable or bonus compensation, which rewards based on the achievement of financial and individual performance goals; and 

  

	 	•	 	 equity-based incentive compensation, which rewards for Magma’s growth and increased stockholder value. 

 In addition to the above, each such executive officer is eligible to participate in various employee benefit plans, including (without limitation) 401(k)
plans , life, disability, health, accident and other insurance programs, paid vacations, and similar plans or programs, subject in each case to the generally applicable terms and conditions of the applicable plan or program. 
 The variable or bonus compensation paid to each executive officer (if any) is earned for achievement of performance goals for each fiscal year of the
Company. The applicable performance goals are set by the Compensation Committee of Magma’s Board of Directors at the beginning of each fiscal year. The Committee may choose financial, strategic or operational goals, including EPS, Operating
Margin, Annual Bookings or Revenue goals. The Committee sets a target bonus for each officer, which is a percentage of his or her base salary. Such target bonuses for each officer are set forth in Exhibit 10.16(b). The actual bonus payable to any
officer may be higher or lower than his or her target bonus, depending on whether actual performance meets, partially meets, or exceeds the predetermined performance goals. Bonuses are paid in the first fiscal quarter of the fiscal year following
the fiscal year in which the bonus was earned. An officer generally must remain an employee of Magma through the payment date in order to receive a bonus. The Committee has discretion to increase or decrease the bonus otherwise payable to any
executive. The Committee also has full discretion to make all determinations with respect to executive officer bonuses. 
 Each such
executive officer’s employment is at-will. 
 Employment, Severance and Change of Control Agreements 
 Magma does not have formal employment or severance agreements with any of the executive officers set forth in Exhibit 10.16(b) except that Magma has
agreed to pay to Mr. Peter S. Teshima a severance amount equal to six months’ of Mr. Teshima’s initial annual base salary (which initial annual base salary was $200,000.00) if Mr. Teshima’s employment with Magma is
involuntarily terminated without Cause (as defined in Mr. Teshima’s offer letter). However, such executive officers may be entitled to accelerated vesting of their outstanding stock options in connection with a change in control or similar
transaction and certain terminations of employment related to a change in control. Specifically, for options granted on or after October 22, 2003, if a change in control of Magma occurs, 25% of their unvested options will become immediately
vested and exercisable and, if the executive officer is involuntarily terminated without cause (as described in further detail in the Company’s Proxy Statement dated July 23, 2007) within the first year following the change in control, an
additional 50% of his unvested options will become vested and exercisable. However, any potential accelerated option vesting upon or following a change in control is subject to the 2001 Plan’s general parachute payment limitation.Schedule of Certain Executive Officers

 EXHIBIT 10.16(b) 
 MAGMA DESIGN AUTOMATION, INC. 
 Schedule of Certain Executive Officers for the Summary of Compensation
Arrangement set forth in Exhibit 10.16(a) 
 The compensation arrangements for the below listed executives are set forth in Exhibit 10.16(a).

  

									
	 Name
	  	 Title
	  	Annualized Base
Salary For
Fiscal Year 2008	  	Target
Bonus
Percentage	 
	 Rajeev Madhavan
	  	Chief Executive Officer and Chairman of the Board	  	$	475,000	  	90	%
	 Roy E. Jewell
	  	President and Chief Operating Officer and Director	  	$	475,000	  	90	%
	 Bruce Eastman
	  	Corporate Vice President, Worldwide Sales	  	$	300,000	  	100	%
	 Peter S. Teshima
	  	Corporate Vice President-Finance and Chief Financial Officer	  	$	300,000	  	60	%
	 David H. Stanley
	  	Corporate Vice President, Corporate Affairs & Secretary	  	$	290,000	  	60	%Form Notice of Grant of Stock Options and Stock Option Agreement

 Exhibit 10.21 
  

					
		  	Magma Design Automation, Inc.	  	
		  	ID: 77-0454924	  	
	Notice of Grant of Stock Options	  	1650 Technology Drive	  	
	and Option Agreement	  	San Jose, CA 95110	  	

  

			
	[Name]	  	Option Number:
		  	Plan:
		  	ID:

 Effective MM/DD/YYYY, you have been granted a(n) [Non-Qualified Stock Option] [Incentive Stock Option] to buy
x,xxx shares of Magma Design Automation, Inc. (the Company) stock at $x.xxxx per share. 
 The total option price of the shares granted is $xx,xxxx.xx.

 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares
	  	 Vest Type
	  	 Full Vest
	  	 Expiration

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 By your signature and the Company’s signature below, you and the Company agree that these options are granted
under and governed by the terms and conditions of the Company’s Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document. 
  

					
			
	  	 		 	  
	Magma Design Automation, Inc.	 		 	Date
			
	  	 		 	  
	[Name of Optionee]	 		 	Date

 STOCK OPTION AGREEMENT 
 TERMS AND CONDITIONS 
 MAGMA DESIGN AUTOMATION, INC. 
 2001 Stock Incentive Plan 
 THIS STOCK
OPTION AGREEMENT TERMS AND CONDITIONS (the “Stock Option Agreement Terms and Conditions”), together with the Notice of Stock Option Grant (the “Notice of Grant”) to which this Stock Option Agreement Terms and Conditions is
attached, constitute the Stock Option Agreement referred to in the Magma Design Automation, Inc. 2001 Stock Incentive Plan (the “Plan”) with respect to the option granted to you pursuant to the Notice of Grant (the “Option”).
This Option is intended to be an Incentive Stock Option or a Nonstatutory Stock Option, as provided in the Notice of Grant. 
  

	1.	Exercise 

 The Option evidenced by this
Agreement becomes exercisable [insert vesting schedule] as summarized in the Notice of Grant. Your rights to exercise the Option accrue only for the time period you render Service to the Company following your vesting commencement date. Your vesting
commencement date is [insert vesting date] as set forth in the Notice of Grant. 
  

	2.	Term 

 The Option expires on the date shown
in the Notice of Grant, but in no event later than the fifth anniversary of the Date of Grant set forth in the Notice of Grant. The Option may expire earlier in connection with the termination of your Service, as described below. 
  

	3.	Regular Termination 

 If your Service with
the Company or a Subsidiary terminates for any reason excluding death, Total and Permanent Disability or Cause (as defined below), this Option will expire on the date three months after your termination date. Your “Termination Date” will
be the date you are no longer actively providing Service to the Company. 
  

	4.	Death or Disability 

 If your Service with
the Company or a Subsidiary terminates as a result of your Total and Permanent Disability or death, this Option will expire on the date six months after your Termination Date. 
  

	5.	Cause 

 If your Service with the Company or a
Subsidiary terminates for Cause, this Option will expire on the date seven days following your Termination Date. For purposes of this section, “Cause” shall mean (i) continued failure to perform substantially your duties, which
standard of duties shall be referenced to the standards set by the Company at the date of this Agreement (other than as a result of 

 
sickness, accident or similar cause beyond your reasonable control) after receipt of a written warning and your being given thirty (30) days to cure the
failure; (ii) willful misconduct or gross negligence, which is demonstrably injurious to the Company or any of its Subsidiaries, including without limitation willful or grossly negligent failure to perform your material duties as an officer or
employee of the Company or any of its Subsidiaries or a material breach of this Agreement, your employment agreement (if any) or your Proprietary Information and Inventions Agreement with the Company; (iii) conviction of or plea of nolo
contendere to a felony; or (iv) commission of an act of fraud against, or the misappropriation of property belonging to, the Company or any affiliated company, employee, customer or supplier of the Company. 
  

	6.	Leaves of Absence 

 For purposes of this
Option, your Service does not terminate when you go on a military leave of absence, a sick leave of absence or another bona fide leave of absence, if the leave of absence was approved by the Company in writing and if continued crediting of Service
is required by the terms of the leave or by applicable law. Your Service will terminate when the approved leave of absence ends unless you immediately return to active employment. Except as provided by applicable law, or unless expressly provided in
writing pursuant to a Company-approved leave of absence, the period of the approved leave of absence will not be credited as Service to the Company for the purposes of determining when your Option vests. In accordance with the preceding sentence,
the dates on which the Option would otherwise vest will be postponed by the number of days of the approved leave of absence. 
  

	7.	Restrictions on Exercise 

 The Company will
not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation. The exercise of this Option and the issuance of the Shares upon such exercise is subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. No Shares will be issued or delivered to you under the Plan unless and until there has been compliance with such applicable laws.

  

	8.	Notice of Exercise 

 When you wish to
exercise this Option you must notify the Company by completing the Notice of Stock Option Exercise in the form attached to this Agreement (or such other form approved by the Company) (the “Notice of Exercise”) and filing it with the
Treasury Department of the Company. The exercise of your Option will be effective when the Notice of Exercise and payment of the Exercise Price is received by the Company. In the case of a cashless exercise through a securities broker approved by
the Company, the Notice of Exercise form must be filed in advance and approved by the Company prior to placing the order with the broker. This Notice of Exercise form may be superseded by a Company-sponsored web-based trading program that includes
security measures sufficient to ensure your identification, such that your entry of a web-based exercise or cashless exercise constitutes your request and authorization to exercise the Option. If someone else wants to exercise this Option after your
death, that person must prove to the Company’s satisfaction that he or she is entitled to do so. 

	9.	Form of Payment 

 Payment may be made
(i) by personal check, a cashier’s check or a money order, (ii) in shares of Company Stock which have been owned by you or your representative for more than twelve (12) months and which are surrendered to the Company in good form
for transfer, or (iii) by delivering a Committee-approved form of irrevocable direction to a securities broker approved by the Company to sell all or part of the Shares subject to the Option and to deliver to the Company from the sale proceeds
an amount sufficient to pay the aggregate Exercise Price and any federal, state or local withholding taxes. In the case of a cashless exercise, the balance of the sale proceeds will be delivered to you and you will not receive any Shares. In the
case of any other exercise method described herein, as soon as practicable after the date you exercise your Option, the Company shall issue to you the purchased Shares, (as evidenced by the appropriate entry in the books of the Company or a duly
authorized transfer agent of the Company). Notwithstanding the foregoing, a form of payment will not be available if the Committee determines, in its sole and absolute discretion, that such form of payment could violate any law or regulation.

  

	10.	Withholding Taxes and Stock Withholding 

 You
will not be allowed to exercise this Option unless you make arrangements acceptable to the Company to pay any federal, state or local withholding taxes that may be due as a result of the Option exercise. These arrangements may include withholding
Shares of Company Stock that otherwise would be issued to you when you exercise this Option. The value of these Shares, determined as of the effective date of Option exercise, will be applied to the withholding taxes. 
  

	11.	Restrictions on Resale  

 By entering into
this Stock Option Agreement Terms and Conditions, you agree not to sell any Shares at a time when applicable laws or Company policies prohibit a sale. This restriction will apply as long as you are providing Service to the Company or a Subsidiary.

  

	12.	Transfer of Option 

 Prior to your death,
only you can exercise this Option. You cannot sell, transfer, assign, pledge or otherwise alienate this Option. For instance, you may not sell this Option or use it as security for a loan. If you attempt to do any of these things, this Option will
immediately become invalid. You may in any event dispose of this Option in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company
obligated to recognize your former spouse’s interest in your Option in any other way. 
  

	13.	Retention Rights 

 Neither your Option nor
this Agreement gives you the right to be retained by the Company or a Subsidiary in any capacity. The Company and its Subsidiaries reserve the right to terminate your Service at any time, with or without Cause. 

	14.	Stockholder Rights 

 You have no rights as a
stockholder of the Company until you have exercised this Option by giving the required Notice of Exercise to the Company and paying the Exercise Price. No adjustments are made for dividends or other rights if the applicable record date occurs before
you exercise this Option, except as described in the Plan. 
  

	15.	Adjustments 

 In the event of a stock split,
a stock dividend or a similar change in Company Stock, the number of Shares subject to this Option and the Exercise Price per share may be adjusted pursuant to the Plan. 
  

	16.	Applicable Law 

 This Option grant and the
provisions of this Agreement will be interpreted and enforced under the laws of the State of California (without regard to choice-of-law provisions). 
  

	17.	The Plan and Other Agreements 

 The text of
the Plan is incorporated in this Agreement by reference. Capitalized terms used herein and not defined shall have the meanings set forth in the Plan. This Agreement, the Notice of Grant, the Notice of Exercise and the Plan constitute the entire
understanding between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning the Option are superseded. This Agreement, the Notice of Grant and the Notice of Exercise may be amended only by another
written agreement, signed by both you and the Company. 

	18.	Severability  

 The provisions of this
Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
  

	19.	Electronic Delivery  

 The Company may, in
its sole discretion, decide to deliver any documents related to the Option granted under the Plan or future Options that may be granted under the Plan by electronic means or to request your consent to participate in the Plan by electronic means. You
hereby consent to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the
Company. 
 BY SIGNING THE NOTICE OF GRANT, YOU AGREE TO ALL OF THE 
 TERMS AND CONDITIONS DESCRIBED IN THE NOTICE OF GRANT, THE 
 AGREEMENT, THE
NOTICE OF EXERCISE AND THE PLAN, AND ACKNOWLEDGE 
 RECEIPT OF A COPY OF THE PLAN

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