Document:

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                                                                    EXHIBIT 10.3

                                 SYNOPSYS, INC.

                   INTERNATIONAL EMPLOYEE STOCK PURCHASE PLAN

                (As amended on August 1, 1999, January 11, 2001,
                      March 8, 2000 and February 28, 2001)

     I.   PURPOSE

          The Synopsys, Inc. International Employee Stock Purchase Plan (the
"Plan") is intended to provide Eligible Employees of designated subsidiaries of
the Company with the opportunity to acquire a proprietary interest in the
Company through the periodic application of their payroll deductions to the
purchase of shares of the Company's common stock.

     II.  DEFINITIONS

          For purposes of plan administration, the following terms shall have
the meanings indicated:

          Base Salary means all compensation paid as wages, salaries,
commissions, overtime, and bonuses (other than bonuses subject to repayment as a
result of a specified future event), but excluding all of the following items
(even if included in taxable income): reimbursements, car allowances or other
expense allowances, severance pay, fringe benefits (cash and noncash), moving
expenses, deferred compensation, income attributable to stock options,
restricted stock grants, SARs and other equity-related incentive programs, and
welfare benefits.

          Code means the Internal Revenue Code of 1986, as amended from time to
time.

          Company means Synopsys, Inc., a Delaware corporation, and any
corporate successor to all or substantially all of the assets or voting stock of
Synopsys, Inc. which shall by appropriate action adopt the Plan.

          Common Stock means shares of the Company's common stock.

          Corporate Affiliate means any company which is a parent or subsidiary
corporation of the Company (as determined in accordance with Code Section 424),
including any parent or subsidiary corporation which becomes such after the
Effective Date.

          Effective Date means the first day of the initial offering period
scheduled to commence on May 3, 1993. However, for any Subsidiary which becomes
a Participating Subsidiary in the Plan after the first day of the initial
offering period, a subsequent Effective Date shall be designated with respect to
participation by its Eligible Employees.

          Eligible Employee means any person who is engaged, on a
regularly-scheduled basis of more than twenty (20) hours per week and more than
five (5) months per calendar year, in the rendition of personal services to any
Participating Subsidiary for earnings considered wages under Section 3121(a) of
the Code, but shall not include persons prohibited by the laws of the nation of
their residence or employment from participating in the Plan.

          Enrollment Date has the meaning ascribed to it in Section V.A.

          Participant means any Eligible Employee of a Participating Subsidiary
who is actively participating in the Plan.

          Participating Subsidiary means a Subsidiary of the Company that has
been designated as a Participating Subsidiary by the Board.

          Semi-Annual Entry Date means (i) during 1999 and each preceding
calendar year within an offering period in effect under the Plan, the first
business day of May and the first business day of November and (ii) during 2000
and all subsequent calendar

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years within an offering period under the Plan, the first business day of March
and the first business day of September. The earliest Semi-Annual Entry Date
under the Plan shall be May 3, 1993.

          Semi-Annual Period of Participation means each period for which the
Participant actually participates in an offering period in effect under the
Plan. There shall be a maximum of four (4) periods of participation within each
offering period. Except as otherwise designated by the Plan Administrator, each
such period shall commence on the applicable Semi-Annual Entry Date.

          Semi-Annual Purchase Date means (i) during 1999 and each preceding
year on which shares of Common Stock are automatically purchased for
Participants under the Plan, the last business day of April and October, and
(ii) during 2000 and each subsequent year on which shares of Common Stock are
automatically purchased for Participants under the Plan, the last business day
of February and August.

          Subsidiary shall mean any corporation described in Section 425(e) or
(f) of the Code.

     III. ADMINISTRATION

          The Plan shall be administered by the Board of Directors or a
committee that will satisfy Rule 16b-3 of the Securities and Exchange
Commission, as in effect with respect to the Company from time to time (in
either case, the "Board"). The Board may from time to time select a committee or
persons (the "Plan Administrator") to be responsible for any transactions not
subject to Rule 16b-3. Subject to the express provisions of the Plan, to the
overall supervision of the Board, and to the limitations of Section 423 of the
Code, the Plan Administrator may administer, interpret and amend the Plan in any
manner it believes to be desirable (including amendments to outstanding
options/purchase rights and the designation of a brokerage firm at which
accounts for the holding of shares purchased under the Plan must be established
by each employee desiring to participate in the Plan), and any such
interpretation shall be final and binding on all parties who have an interest in
the Plan; provided, however, that the Plan Administrator may not, without the
approval of the Company's Board, (i) increase the number of shares issuable
under the Plan or the maximum number of shares which may be purchased per
Participant or in the aggregate during any one Semi-Annual Period of
Participation under the Plan, except that the Plan Administrator shall have the
authority, exercisable without such stockholder approval, to effect adjustments
to the extent necessary to reflect changes in the Company's capital structure
pursuant to Section VI.B;(ii) alter the purchase price formula so as to reduce
the purchase price payable for the shares issuable under the Plan; or (iii)
materially increase the benefits accruing to Participants under the Plan or
materially modify the requirements for eligibility to participate in the Plan

     IV.  OFFERING PERIODS

          The Plan shall be implemented in a series of offering periods. Each
offering period shall be of a duration of twenty-four (24) months or less as
designated by the Plan Administrator prior to the start date of any offering
period, except that offering periods that include the Semi-Annual Entry Date on
November 1, 1999 shall be of a duration of twenty-two (22) months. Within each
offering period, there shall be a maximum of four (4) Semi-Annual Periods of
Participation.

     V.   ELIGIBILITY AND PARTICIPATION

          A. Each Eligible Employee of a Participating Subsidiary shall be
eligible to participate in the Plan in accordance with the following provisions:

          -    The Board may at any time designate one or more Subsidiaries as
participating in the Plan. The names of all Participating Subsidiaries shall be
shown on Exhibit A to the Plan, which shall be amended from time to time to
reflect additions and deletions of Participating Subsidiaries; failure to show a
Participating Subsidiary on Exhibit A shall not, however, prevent otherwise
eligible employees of that Subsidiary from participating in the Plan. No
Subsidiary participating in the Company's Employee Stock Purchase Plan effective
May 3, 1993 may be designated for participation in the Plan.

          - Each Eligible Employee will be automatically enrolled in the Plan in
     the offering period that begins on the first Semi-Annual Entry Date
     following the commencement of employment; thereafter, any Eligible Employee
     may enroll or re-enroll in the Plan in the offering period that begins as
     of any Semi-Annual Entry Date, or such other days as may be established by
     the Board from time to time (each, an "Enrollment Date"). To participate,
     an Eligible Employee must complete, sign, and submit to the Company an
     enrollment form prescribed by the Plan Administrator. Any enrollment form
     received by the Company by the 15th day of the month preceding

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     an Enrollment Date (or by the Enrollment Date in the case of employees
     hired after such 15th day), or such other date established by the Plan
     Administrator from time to time, will be effective on that Enrollment Date.
     Enrollment or re-enrollment by a Participant in the Plan on an Enrollment
     Date will constitute the grant by the Company to the Participant of an
     option to purchase shares of Common Stock from the Company under the Plan.
     At the end of each offering period, each Participant who has not withdrawn
     from the Plan will automatically be re-enrolled in the Plan in the offering
     period that begins on the Enrollment Date immediately following the date on
     which the option expires. Furthermore, except as may otherwise be
     determined by the Plan Administrator, each Participant who has not
     withdrawn from the Plan will automatically be re-enrolled in the Plan in
     each offering period that begins on an Enrollment Date on which the fair
     market value per share of the Company's Common Stock is lower than the fair
     market value per share of the Company's Common Stock on the Enrollment Date
     for the offering period in which the Participant is then enrolled.
     Notwithstanding anything in the Plan to the contrary, if the fair market
     value (the "Authorization Date FVM") on the date (the "Authorization Date")
     on which additional shares of Common Stock are authorized for issuance
     hereunder by the Company's shareholders is higher than the fair market
     value at the beginning of any Offering Period that commenced prior to the
     Authorization Date, then, with respect to any of such authorized shares
     available to be issued on Purchase Dates relating to such Offering Period,
     the Authorization Date FMV shall be used instead of the fair market value
     on the Enrollment Date for the purposes of the preceding sentence, provided
     that the Plan Administrator, in its discretion, may waive application of
     this sentence with respect to the first Purchase Date occurring after the
     Authorization Date.

          - An individual who becomes an Eligible Employee immediately following
     termination of such employee's participation in the Synopsys, Inc. Employee
     Stock Purchase Plan shall, for purposes of participation in the Plan, have
     a deemed Enrollment Date corresponding to such employee's most recent
     Enrollment Date under the Synopsys, Inc. Employee Stock Purchase Plan.

          B. The payroll deduction authorized by the Participant for purposes of
acquiring shares of Common Stock under the Plan may be zero percent (0%) or any
whole multiple of one percent (1%) of the Base Salary paid to the Participant
during each Semi-Annual Period of Participation within the offering period, up
to a maximum of ten percent (10%). The deduction rate so authorized shall
continue in effect for the entire Semi-Annual Period of Participation and for
each successive Semi-Annual Period of Participation unless (i) the Participant
shall change the rate for a subsequent Semi-Annual Period of Participation by
filing the appropriate form with the Plan Administrator prior to the
commencement of that Semi-Annual Period of Participation or (ii) the Participant
shall change the rate within a Semi-Annual Period of Participation by filing the
appropriate form with the Plan Administrator. The new rate shall become
effective as soon as practicable following the filing of such form. A
Participant may not increase or decrease the deduction rate more than once per
Semi-Annual Period of Participation in addition to fixing the rate at the
beginning of the Semi-Annual Period of Participation. Payroll deductions,
however, will automatically cease upon the termination of the Participant's
purchase right in accordance with Article VII below.

          C. In no event may any Participant's payroll deductions for any one
Semi-Annual Period of Participation exceed Seven Thousand Five Hundred Dollars
($7,500.00) calculated on the Purchase Date following conversion of accumulated
withholdings into U.S. Dollars.

          D. It is intended that all eligible employees shall have substantially
equivalent rights and privileges with respect to the Plan; notwithstanding any
other provision of the Plan, however, the Plan Administrator may make such
changes in the terms of eligibility and participation from Subsidiary to
Subsidiary that it determines, in its discretion, to be necessary or desirable
to reflect or comply with local laws or conditions.

     VI.  STOCK SUBJECT TO PLAN

          A. The Common Stock purchasable by Participants under the Plan shall,
solely in the discretion of the Plan Administrator, be made available from
either authorized but unissued shares of the Common Stock or from shares of
Common Stock reacquired by the Company, including shares of Common Stock
purchased on the open market. The total number of shares which may be issued
under the Plan shall not exceed 7,050,000 shares, less any shares sold under the
Synopsys, Inc. Employee Stock Purchase Plan (subject to adjustment under Section
VI.B below).

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          B. In the event any change is made to the Company's outstanding Common
Stock by reason of any stock dividend, stock split, combination of shares or
other change affecting such outstanding Common Stock as a class without receipt
of consideration, then appropriate adjustments shall be made by the Plan
Administrator to (i) the class and maximum number of shares issuable over the
term of the Plan, (ii) the class and maximum number of shares purchasable per
Participant during each Semi-Annual Period of Participation, (iii) the class and
maximum number of shares purchasable in the aggregate by all Participants on any
one purchase date under the Plan and (iv) the class and number of shares and the
price per share of the Common Stock subject to each purchase right at the time
outstanding under the Plan. Such adjustments shall be designed to preclude the
dilution or enlargement of rights and benefits under the Plan.

     VII. PURCHASE RIGHTS

          An Employee who participates in the Plan for a particular offering
period shall have the right to purchase shares of Common Stock, in a series of
successive installments during such offering period, upon the terms and
conditions set forth below and shall execute such agreements and documents
embodying such terms and conditions and such other provisions (not inconsistent
with the Plan) as the Plan Administrator may deem advisable.

          Purchase Price. Common Stock shall be issuable on each Semi-Annual
     Purchase Date at a purchase price equal to eighty-five percent (85%) of the
     lower of (i) the fair market value per share on the Participant's
     Enrollment Date or (ii) the fair market value per share on the Semi-Annual
     Purchase Date. Notwithstanding anything in the Plan to the contrary, if the
     Authorization Date FVM is higher than the fair market value at the
     beginning of any Offering Period that commenced prior to the Authorization
     Date, then, with respect to any of such authorized shares available to be
     issued on Purchase Dates relating to such Offering Period, the
     Authorization Date FMV shall be used instead of the fair market value on
     the Enrollment Date for the purposes of clause (i) of the preceding
     sentence, provided that the Plan Administrator, in its discretion, may
     waive application of this sentence with respect to the first Purchase Date
     occurring after the Authorization Date.

          Valuation. The fair market value per share of Common Stock on any
relevant date shall be the closing selling price of the Common Stock on that
date, as officially quoted on the Nasdaq National Market System. If there is no
quoted selling price for such date, then the closing selling price on the next
preceding day for which there does exist such a quotation shall be determinative
of fair market value.

          Number of Purchasable Shares. The number of shares purchasable per
Participant on each Semi-Annual Purchase Date shall be the number of whole
shares obtained by dividing the amount collected, after conversion into U.S.
Dollars on the Purchase Date, from the Participant through payroll deductions
during the corresponding Semi-Annual Period of Participation by the purchase
price in effect for the Semi-Annual Purchase Date. However, no Participant may,
during any one Semi-Annual Purchase Period, purchase more than 2,000 shares of
Common Stock, subject to periodic adjustment under Section VI.B.

          Under no circumstances shall purchase rights be granted under the Plan
to any Eligible Employee if such individual would, immediately after the grant,
own (within the meaning of Code Section 424(d)) or hold outstanding options or
other rights to purchase, stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Company or
any of its Corporate Affiliates.

          Payment; Withholding. Payment for the Common Stock purchased under the
Plan shall be effected by means of the Participant's authorized payroll
deductions. Such deductions shall begin on the first pay day coincident with or
immediately following the Participant's Enrollment Date into the offering period
and shall (unless sooner terminated by the Participant) continue through the pay
day ending with or immediately prior to the last day of the offering period. The
amounts so collected shall be credited to the Participant's book account under
the Plan in local currency, but no interest shall be paid on the balance from
time to time outstanding in such account. The amounts collected from a
Participant may be commingled with the general assets of the Company and/or any
Participating Subsidiary and may be used for general corporate purposes. Upon
disposition of shares acquired by exercise of purchase right, the Participant
shall pay, or make provision adequate to the Company and the Participating
Subsidiary for payment of, all federal, state, and other tax (and similar)
withholdings that the Company or the Participating Subsidiary determines, in its
discretion, are required due to the disposition, including any such withholding
that the Company or the Participating Subsidiary determines, in its discretion,
is necessary to allow the Company or the Participating Subsidiary to claim tax
deductions or other benefits in connection

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with the disposition. A Participant shall make such similar provisions for
payment that the Company or the Participating Subsidiary determines, in its
discretion, are required due to the exercise of purchase right, including such
provisions as are necessary to allow the Company or the Participating Subsidiary
to claim tax deductions or other benefits in connection with the exercise of
purchase right.

          Termination of Purchase Right. The following provisions shall govern
the termination of outstanding purchase rights:

                    (i) A Participant may, at any time prior to the last five
          (5) business days of the Semi-Annual Period of Participation,
          terminate his/her outstanding purchase right under the Plan by filing
          the prescribed notification form with the Plan Administrator. No
          further payroll deductions shall be collected from the Participant
          with respect to the terminated purchase right, and any payroll
          deductions collected for the Semi-Annual Period of Participation in
          which such termination occurs shall, at the Participant's election, be
          immediately refunded or held for the purchase of shares on the next
          Semi-Annual Purchase Date. If no such election is made, then such
          funds shall be refunded as soon as possible after the close of such
          Semi-Annual Period of Participation.

                    (ii) The termination of such purchase right shall be
          irrevocable, and the Participant may not subsequently rejoin the
          offering period for which such terminated purchase right was granted.
          In order to resume participation in any subsequent offering period,
          such individual must enroll in the Plan in accordance with Section
          V.A.

                    (iii) Should a Participant cease to remain an Eligible
          Employee while his/her purchase right remains outstanding or should
          there otherwise occur a change in such individual's employee status so
          that he/she is no longer an Eligible Employee while holding such
          purchase right, then such purchase right shall immediately terminate
          upon such termination of service or change in status and all sums
          previously collected from the Participant during the Semi-Annual
          Period of Participation in which the purchase right so terminates
          shall be promptly refunded to the Participant. However, should the
          Participant die or become permanently disabled while in service or
          should the Participant cease employment by reason of a leave of
          absence, then the Participant (or the person or persons to whom the
          rights of the deceased Participant under the Plan are transferred by
          will or the laws of inheritance) shall have the election, exercisable
          up until the end of the Semi-Annual Period of Participation in which
          the Participant dies or becomes permanently disabled or in which the
          leave of absence commences, to (i) withdraw all the funds credited to
          the Participant's account at the time of his/her cessation of service
          or at the commencement of such leave or (ii) have such funds held for
          the purchase of shares of Common Stock at the next Semi-Annual
          Purchase Date. If no such election is made, then such funds shall
          automatically be held for the purchase of shares of Common Stock at
          the next Semi-Annual Purchase Date. In no event, however, shall any
          further payroll deductions be added to the Participant's account
          following his/her cessation of service or the commencement of such
          leave; provided, however, that if a Participant's employment is
          terminated because of a transfer of employment to the Company or any
          subsidiary of the Company other than a Participating Subsidiary, any
          outstanding purchase right shall not terminate until the occurrence of
          the earlier of (x) the last Semi-Annual Purchase Date in the offering
          period or (y) enrollment of the Participant in the Company's Employee
          Stock Purchase Plan. While a purchase right remains outstanding, the
          Company or other subsidiary to which the participant is transferred
          shall effect payroll deductions authorized by the Participant and
          shall remit them to the Participating Subsidiary that employed the
          Participant at the time of the transfer for purposes of acquiring
          shares of Common Stock under the Plan. Following approval by the
          Company and the Participating Subsidiary, the Participant may, in lieu
          of payroll deduction, pay a corresponding amount to the Participating
          Subsidiary if such amount is received on or before the relevant
          Purchase Date. Should the Participant return to active service
          following a leave of absence, then his/her payroll deductions under
          the Plan shall automatically resume at the rate in effect at the time
          the leave began, provided such return to service occurs prior to the
          end of the offering period in which such leave began. For purpose of
          the Plan: (i) the Participant shall be considered to remain in service
          for so long as such Participant remains in the active employ of the
          Company or one or more other Participating Subsidiaries and (ii) the
          Participant shall be deemed to be permanently disabled if he/she is
          unable to engage in any substantial gainful employment, by reason of
          any medically determinable physical

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          or mental impairment expected to result in death or to be of
          continuous duration of at least twelve (12) months.

          Stock Purchase. Shares of Common Stock shall automatically be
purchased on behalf of each Participant (other than Participants whose payroll
deductions have previously been refunded or set aside for refund in accordance
with the Termination of Purchase Right provisions above) on each Semi-Annual
Purchase Date. The purchase shall be effected by applying each Participant's
payroll deductions after conversion to U.S. Dollars for the Semi-Annual Period
of Participation ending on such semiannual Purchase Date to the purchase of
whole shares of Common Stock (subject to the limitation on the maximum number of
purchasable shares as set forth above) at the purchase price in effect for such
Semi-Annual Period of Participation. Any payroll deductions not applied to such
purchase (a) because they are not sufficient to purchase a whole share or (b) by
reason of the limitation on the maximum number of shares purchasable by the
Participant for that Semi-Annual Period of Participation shall be promptly
refunded to the Participant.

          Proration of Purchase Rights. Not more than 500,000 shares of Common
Stock, subject to periodic adjustment under Section VI.B, may be purchased in
the aggregate by all participants under the Plan and under the Synopsys, Inc.
Employee Stock Purchase Plan on any one Semi-Annual Purchase Date. Should the
total number of shares of Common Stock which are to be purchased pursuant to
outstanding purchase rights on any particular date exceed either (i) the maximum
limitation on the number of shares purchasable in the aggregate on such date or
(ii) the number of shares then available for issuance under the Plan and the
Synopsys, Inc. Employee Stock Purchase Plan, the Plan Administrator shall make a
pro-rata allocation of the available shares on a uniform and non-discriminatory
basis (including, to the extent practicable vis a vis participants in the
Synopsys, Inc. Employee Stock Purchase Plan) and the payroll deductions for each
Participant, to the extent in excess of the aggregate purchase price payable for
the Common Stock pro-rated to such individual, shall be refunded to such
Participant.

          Rights as Stockholder. A Participant shall have no stockholder rights
with respect to the shares subject to his/her outstanding purchase right until
the shares are actually purchased on the Participant's behalf in accordance;
with the applicable provisions of the Plan. No adjustments shall be made for
dividends, distributions, or other rights for which the record date is prior to
the date of such purchase.

          Assignability. No purchase right granted under the Plan shall be
assignable or transferable by the Participant other than by will or by the laws
of descent and distribution following the Participant's death, and during the
Participant's lifetime the purchase right shall be exercisable only by the
Participant.

          Change in Ownership. Should the Company or its stockholders enter into
an agreement to dispose of all or substantially all of the assets or outstanding
capital stock of the Company by means of:

                    (i) a sale, merger or other reorganization in which the
          Company will not be the surviving corporation (other than a
          reorganization effected primarily to change the State in which the
          Company is incorporated), or

                    (ii) a reverse merger in which the Company is the surviving
          corporation but in which more than fifty percent (50%) of the
          Company's outstanding voting stock is transferred to holders different
          from those who held the stock immediately prior to the reverse merger,

          then all outstanding purchase rights under the Plan shall
automatically be exercised immediately prior to the consummation of such sale,
merger, reorganization or reverse merger by applying the payroll deductions of
each Participant, after conversion into U.S. Dollars on the date of purchase,
for the Semi-Annual Period of Participation in which such transaction occurs to
the purchase of whole shares of Common Stock at eighty-five percent (85%) of the
lower of (i) the fair market value of the Common Stock on the Participant's
Enrollment Date into the offering period in which such transaction occurs or
(ii) the fair market value of the Common Stock immediately prior to the
consummation of such transaction. However, the applicable share limitations of
Sections VII and VIII shall continue to apply to any such purchase, and the
clause (i) amount above shall not, for any Participant whose Enrollment Date for
the offering period is other than the start date of such offering period, be
less than the fair market value of the Common Stock on such start date.

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          The Company shall use its best efforts to provide at least ten (10)
days' advance written notice of the occurrence of any such sale, merger,
reorganization or reverse merger, and Participants shall, following the receipt
of such notice, have the right to terminate their outstanding purchase rights in
accordance with the applicable provisions of this Article VII.

     VIII. ACCRUAL LIMITATIONS

           A. No Participant shall be entitled to accrue rights to acquire
Common Stock pursuant to any purchase right outstanding under this Plan if and
to the extent such accrual, when aggregated with (i) rights to purchase Common
Stock accrued under any other purchase right outstanding under this Plan and
(ii) similar rights accrued under other employee stock purchase plans (within
the meaning of Section 423 of the Code) of the Company and its Corporate
Affiliates would otherwise permit such Participant to purchase more than $25,000
worth of stock of the Company or any Corporate Affiliate (determined on the
basis of the fair market value of such stock on the date or dates such rights
are granted to the Participant) for each calendar year such rights are at any
time outstanding.

          B. For purposes of applying such accrual limitations, the right to
acquire Common Stock pursuant to each purchase right outstanding under the Plan
shall accrue as follows:

                    (i) The right to acquire Common Stock under each such
          purchase right shall accrue in a series of successive semi-annual
          installments as and when the purchase right first becomes exercisable
          for each semi-annual installment on the last business day of each
          Semi-Annual Period of Participation for which the right remains
          outstanding.

                    (ii) No right to acquire Common Stock under any outstanding
          purchase right shall accrue to the extent the Participant has already
          accrued in the same calendar year the right to acquire $25,000 worth
          of Common Stock (determined on the basis of the fair market value on
          the date or dates of grant) pursuant to one or more purchase rights
          held by the Participant during such calendar year.

                    (iii) If by reason of such accrual limitations, any purchase
          right of a Participant does not accrue for a particular Semi-Annual
          Period of Participation, then the payroll deductions which the
          Participant made during that Semi-Annual Period of Participation with
          respect to such purchase right shall be promptly refunded.

          C. In the event there is any conflict between the provisions of this
Section VIII and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Section VIII shall be controlling.

     IX.  AMENDMENT AND TERMINATION

          A. The Board may amend, alter, suspend, discontinue, or terminate the
Plan at any time, including amendments to outstanding options/purchase rights.
However, the Board may not, without the approval of the Company's stockholders:

                    (i) Increase the number of shares issuable under the Plan or
          the maximum number of shares which may be purchased per Participant or
          in the aggregate during any one Semi-Annual Period of Participation
          under the Plan, except that the Plan Administrator shall have the
          authority, exercisable without such stockholder approval, to effect
          adjustments to the extent necessary to reflect changes in the
          Company's capital structure pursuant to Section VI.B;

                    (ii) alter the purchase price formula so as to reduce the
          purchase price payable for the shares issuable under the Plan; or

                    (iii) materially increase the benefits accruing to
          Participants under the Plan or materially modify the requirements for
          eligibility to participate in the Plan.

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          B. The Board may elect to terminate any or all outstanding purchase
rights at any time. In the event the Plan is terminated, the Board may also
elect to terminate outstanding purchase rights either immediately or upon
completion of the purchase of shares on the next Semi-Annual Purchase Date, or
may elect to permit purchase rights to expire in accordance with their terms
(and participation to continue through such expiration dates). If purchase
rights are terminated prior to expiration, all funds contributed to the Plan
that have not been used to purchase shares shall be returned to the Participants
as soon as administratively feasible.

     X.   GENERAL PROVISIONS

          A. The Plan shall become effective on the date on which it is adopted
by the Board, provided the Company has complied with all applicable requirements
established by law or regulation.

          B. All costs and expenses incurred in the administration of the Plan
shall be paid by the Company.

          C. Neither the action of the Company in establishing the Plan, nor any
action taken under the Plan by the Board or the Plan Administrator, nor any
provision of the Plan itself shall be construed so as to grant any person the
right to remain in the employ of the Company or any of its Corporate Affiliates
for any period of specific duration, and such person's employment may be
terminated at any time, with or without cause.

          D. The provisions of the Plan shall be governed by the laws of the
State of California without resort to that State's conflict-of-laws rules.

          E. If the Plan Administrator in its discretion so elects, it may
retain a brokerage firm, bank, or other financial institution to assist in the
purchase of shares, delivery of reports, or other administrative aspects of the
Plan. If the Plan Administrator so elects, each Participant shall (unless
prohibited by the laws of the nation of his or her employment or residence) be
deemed upon enrollment in the Plan to have authorized the establishment of an
account on his or her behalf at such institution. Shares purchased by a
Participant under the Plan shall be held in the account in the name in which the
share certificate would otherwise be issued pursuant to Section VII.

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Schedule A

                           Companies Participating in
                      International Employee Stock Purchase
                                      Plan

<TABLE>
<CAPTION>
Name                                          Jurisdiction of Incorporation
----                                          -----------------------------
<S>                                           <C>
Electronic Design Automation Services Europe                    Netherlands
Nihon Synopsys Co., Ltd.                                              Japan
Synopsys Consulting SARL                                             France
Synopsys Finland OY                                                 Finland
Synopsys GmbH                                                       Germany
Synopsys (India) Pvte. Ltd.                                           India
Synopsys International, Inc.                                       Barbados
Synopsys International Limited                                      Ireland
Synopsys Ireland Limited                                            Ireland
Synopsys Ireland Resources                                          Ireland
Synopsys Italia, SRL                                                  Italy
Synopsys Korea, Inc.                                                  Korea
Synopsys (Northern Europe) Ltd.                              United Kingdom
Synopsys SARL                                                        France
Synopsys Scandinavia AB                                              Sweden
Synopsys Services SARL                                               France
Synopsys Singapore Pte. Ltd.                                      Singapore
Synthesis and Optimisation Systems Ltd.                              Israel
The CAE Company                                                 Netherlands
Viewlogic Asia Corporation                                           U.S.A.
Viewlogic Benelux                                               Netherlands
Viewlogic Europe BV                                             Netherlands
</TABLE>

                                       9<PAGE>

                                                                    EXHIBIT 10.1

                                 SYNOPSYS, INC.

                             1992 STOCK OPTION PLAN

           (AMENDED JULY 29, 1992, OCTOBER 28, 1992, OCTOBER 27, 1993,
          OCTOBER 27, 1994, NOVEMBER 1, 1995, MAY 1, 1996, MAY 3, 1996,
              OCTOBER 30, 1996, JANUARY 11, 2000 AND MAY 25, 2001)

                                   ARTICLE ONE
                                     GENERAL

I. PURPOSE OF THE PLAN

                A. This 1992 Stock Option Plan ("Plan") is intended to promote
the interests of Synopsys, Inc., a Delaware corporation (the "Corporation"), by
providing (i) key employees (including officers and directors) of the
Corporation (or its parent or subsidiary corporations) who are responsible for
the management, growth and financial success of the Corporation (or its parent
or subsidiary corporations) and (ii) consultants and other independent advisors
who provide valuable services to the Corporation (or its parent or subsidiary
corporations) with the opportunity to acquire a proprietary interest, or
otherwise increase their proprietary interest, in the Corporation as an
incentive for them to remain in the service of the Corporation (or its parent or
subsidiary corporations).

                B. The Plan shall become effective on the first date on which
the shares of the Corporation's common stock are registered under Section 12(g)
of the Securities Exchange Act of 1934, as amended (the "1934 Act"). Such date
is hereby designated as the Effective Date of the Plan.

                C. This Plan shall serve as the successor to the Corporation's
1988 Restricted Stock Plan (the "1988 Plan"), and no further option grants shall
be made under the 1988 Plan from and after the Effective Date of this Plan. All
options outstanding under the 1988 Plan on such Effective Date are hereby
incorporated into this Plan and shall accordingly be treated as outstanding
options under this Plan. However, each outstanding option so incorporated shall
continue to be governed solely by the express terms and conditions of the
instrument evidencing such grant, and no provision of this Plan shall be deemed
to affect or otherwise modify the rights or obligations of the holders of such
incorporated options with respect to their acquisition of shares of the
Corporation's common stock thereunder. All outstanding unvested share issuances
under the 1988 Plan shall continue to be governed solely by the express terms
and conditions of the instruments evidencing such issuances, and no provision of
this Plan shall be deemed to affect or otherwise modify the rights or
obligations of the holders of such unvested shares.

                D. For purposes of the Plan, the following provisions shall be
applicable in determining the parent and subsidiary corporations of the
Corporation:

                Any corporation (other than the Corporation) in an unbroken
chain of corporations ending with the Corporation shall be considered to be a
parent of the Corporation, provided each such corporation in the unbroken chain
(other than the Corporation) owns, at the time of the determination, stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

                Each corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation shall be considered to be a
subsidiary of the Corporation, provided each such corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

II. ADMINISTRATION OF THE PLAN

                A. Administrator. The Plan shall be administered by the Board of
Directors or a committee that will satisfy Rule 16b-3 of the Securities and
Exchange Commission and Section 162(m) of the Internal Revenue

                                       1
<PAGE>

Code, as in effect with respect to the Company from time to time (in either
case, the "Administrator"). In connection with the administration of the Plan,
the Administrator shall have the powers possessed by the Board. The
Administrator may act only by a majority of its members, except that the
Administrator may authorize any one or more of its members or any officer of the
Company to execute and deliver documents on behalf of the Administrator. For so
long as not otherwise required for the Plan to comply with Rule 16b-3, the
Administrator or the Board may delegate to one or more directors of the Company
authority to grant stock options to persons who are not subject to Section 16 of
the Exchange Act, and may delegate administrative duties to such director(s) and
such employees of the Company as it deems proper. The Board at any time may
terminate the authority delegated to any committee of the Board pursuant to this
Section III(a) and revest in the Board the administration of the Plan.

                B. Authority. The Administrator shall grant options and
authorize stock issuances (in either case an "Award") to selected eligible
employees and consultants. In particular and without limitation, the
Administrator, subject to the terms of the Plan, shall:

                  (i) select the officers, other employees, and consultants to
        whom Awards may be granted;

                  (ii) determine whether and to what extent Awards are to be
        granted under the Plan;

                  (iii) determine the number of shares to be covered by each
        Award granted under the Plan; and

                  (iv) determine the terms and conditions of any Award granted
        under the Plan and any related loans to be made by the Company, based
        upon factors determined by the Administrator;

                  provided, however, that the Administrator shall not have the
        power to approve a program whereby outstanding Awards are surrendered in
        exchange for Awards with a lower exercise price, without first obtaining
        stockholder approval of such program.

III. ELIGIBILITY

                A. The persons eligible to receive option grants ("Optionee")
are as follows:

                  (i) officers and other key employees of the Corporation (or
        its parent or subsidiary corporations) who render services which
        contribute to the management, growth and financial success of the
        Corporation (or its parent or subsidiary corporations);

                  (ii) those consultants or other independent advisors who
        provide valuable services to the Corporation (or its parent or
        subsidiary corporations).

                B. Non-employee members of the Board shall not be eligible to
participate in the Plan or in any other stock option, stock purchase, stock
bonus or other stock plan of the Corporation (or its parent or subsidiary
corporations), other than the 1994 Non-Employee Directors Stock Option Plan.

IV. STOCK SUBJECT TO THE PLAN

                A. Shares of the Corporation's common stock (the "Common Stock")
shall be available for issuance under the Plan and shall be drawn from either
the Corporation's authorized but unissued shares of Common Stock or from
reacquired shares of Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock
which may be issued over the term of the Plan shall not exceed the sum of (i)
17,767,142 shares plus (ii) an additional number of shares equal to 5% of the
number of shares of Common Stock and Common Stock equivalents outstanding on the
first day of each of the 1997, 1998 and 1999 fiscal years. Such authorized share
reserve includes the number of shares which remained available for issuance, as
of the Effective Date, under the 1988 Plan as last approved by the Corporation's
stockholders prior to such Effective Date, including the shares subject to the
outstanding options incorporated into this Plan and any other shares available
for future option grant under the 1988 Plan as last approved by the
stockholders, and such reserve shall be adjusted from time to time in accordance
with the provisions of this Section IV. To the extent one or more

                                       2
<PAGE>

outstanding options under the 1988 Plan which have been incorporated into this
Plan are subsequently exercised, the number of shares issued with respect to
each such option shall reduce, on a share- for-share basis, the number of shares
available for issuance under this Plan.

                B. In no event may the maximum number of shares which may be
issued pursuant to Incentive Options granted under the Plan on or after the
first day of the 1995 fiscal year (October 2, 1994) exceed 16,000,000 shares,
subject to adjustment from time to time in accordance with the provisions of
this Section IV. The maximum number of shares which may be issued pursuant to
Incentive Options granted under the Plan prior to the first day of the 1995
fiscal year (October 2, 1994) shall not exceed 11,400,000 shares, subject to
adjustment from time to time in accordance with the provisions of this Section
IV.

                C. In no event may the aggregate number of shares of Common
Stock for which any one individual participating in the Plan may be granted
stock options and/or separately-exercisable stock appreciation rights during any
fiscal year exceed 750,000 shares, except in the case of an individual's initial
employment with the Company, in which case such individual may be granted stock
options and/or stock appreciation rights for an additional 250,000 shares,
subject to adjustment from time to time in accordance with the provisions of
this Section IV. For purposes of such limitation, no stock options or stock
appreciation rights granted prior to January 1, 1994 shall be taken into
account.

                D. Should one or more outstanding options under this Plan
(including outstanding options under the 1988 Plan incorporated into this Plan)
expire or terminate for any reason prior to exercise in full (including any
option cancelled in accordance with the cancellation-regrant provisions of
Section IV of Article Two of the Plan), then the shares subject to the portion
of each option not so exercised shall be available for subsequent option grant
under the Plan. Shares subject to any option or portion thereof surrendered or
cancelled in accordance with Section V of Article Two and all shares issuances
under the Plan, whether or not the shares are subsequently repurchased by the
Corporation pursuant to its repurchase rights under the Plan, shall not be
available for subsequent option grant under the Plan. In addition, should the
exercise price of an outstanding option under the Plan be paid with shares of
Common Stock, then the number of shares of Common Stock available for issuance
under the Plan shall be reduced by the gross number of shares for which the
option is exercised, and not by the net number of shares of Common Stock
actually issued to the holder of such option.

                E. In the event any change is made to the Common Stock issuable
under the Plan by reason of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration, appropriate adjustments shall be made to (i) the maximum number
and/or class of securities issuable under the Plan, (ii) the maximum number
and/or class of securities which may be issued pursuant to Incentive Options
granted under the Plan, whether before or after the first day of the 1995 fiscal
year, (iii) the total number and/or class of securities for which stock options
and separately-exercisable stock appreciation rights may be granted to any one
participant in the Plan after December 31, 1993, (iv) the number and/or class of
securities and price per share in effect under each outstanding option under the
Plan and (v) the number and/or class of securities and price per share in effect
under each outstanding option incorporated into this Plan from the 1988 Plan.
Such adjustments to the outstanding options are to be effected in a manner which
shall preclude the enlargement or dilution of rights and benefits under such
options.

                The adjustments determined by the Plan Administrator shall be
final, binding and conclusive.

                F. Common Stock issuable under the Plan may be subject to such
restrictions on transfer, repurchase rights or other restrictions determined by
the Plan Administrator.

                                   ARTICLE TWO
                                  OPTION GRANTS

I. TERMS AND CONDITIONS OF OPTIONS

                Options granted pursuant to the Plan shall be authorized by
action of the Plan Administrator and may, at the Plan Administrator's
discretion, be either Incentive Options or non-statutory options. Individuals
who

                                       3
<PAGE>

are not Employees of the Corporation or its parent or subsidiary corporations
may only be granted non-statutory options. Each granted option shall be
evidenced by one or more instruments in the form approved by the Plan
Administrator; provided, however, that each such instrument shall comply with
the terms and conditions specified below. Each instrument evidencing an
Incentive Option shall, in addition, be subject to the applicable provisions of
Section II of this Article Two.

                A. Option Price.

                (1) The option price per share shall be fixed by the Plan
Administrator. In no event, however, shall it be less than one hundred percent
(100%) of the fair market value per share of Common Stock on the date of the
option grant.

                (2) The option price shall become immediately due upon exercise
of the option and, subject to the provisions of Article Three, Section I and the
instrument evidencing the grant, shall be payable in one of the following
alternative forms specified below:

                  - full payment in cash or check drawn to the Corporation's
        order;

                  - full payment in shares of Common Stock held for at least six
        (6) months and valued at fair market value on the Exercise Date (as such
        term is defined below);

                  - full payment in a combination of shares of Common Stock held
        for at least six (6) months and valued at fair market value on the
        Exercise Date and cash or check; or

                  - full payment through a broker-dealer sale and remittance
        procedure pursuant to which the Optionee (I) shall provide irrevocable
        written instructions to a Corporation-designated brokerage firm to
        effect the immediate sale of the purchased shares and remit to the
        Corporation, out of the sale proceeds available on the settlement date,
        sufficient funds to cover the aggregate option price payable for the
        purchased shares plus all applicable Federal and State income and
        employment taxes required to be withheld by the Corporation in
        connection with such purchase and (II) shall provide written directives
        to the Corporation to deliver the certificates for the purchased shares
        directly to such brokerage firm in order to complete the sale
        transaction.

                For purposes of this subparagraph (2), the Exercise Date shall
be the date on which written notice of the option exercise is delivered to the
Corporation. Except to the extent the sale and remittance procedure is utilized
in connection with the exercise of the option, payment of the option price for
the purchased shares must accompany such notice.

                (3) The fair market value per share of Common Stock on any
relevant date under the Plan shall be determined in accordance with the
following provisions:

                  - If the Common Stock is not at the time listed or admitted to
        trading on any national stock exchange but is traded on the Nasdaq
        National Market, the fair market value shall be the closing selling
        price per share of Common Stock on the date in question, as such price
        is reported by the National Association of Securities Dealers on the
        Nasdaq National Market System or any successor system. If there is no
        reported closing selling price for the Common Stock on the date in
        question, then the closing selling price on the last preceding date for
        which such quotation exists shall be determinative of fair market value.

                  - If the Common Stock is at the time listed or admitted to
        trading on any national stock exchange, then the fair market value shall
        be the closing selling price per share of Common Stock on the date in
        question on the stock exchange determined by the Plan Administrator to
        be the primary market for the Common Stock, as such price is officially
        quoted in the composite tape of transactions on such exchange. If there
        is no reported sale of Common Stock on such exchange on the date in
        question, then the fair market value shall be the closing selling price
        on the exchange on the last preceding date for which such quotation
        exists.

                B. Term and Exercise of Options. Each option shall be
exercisable at such time or times and during such period as is determined by the
Plan Administrator and set forth in the stock option agreement

                                       4
<PAGE>

evidencing the grant; provided that at least 75% of the options granted
hereunder shall become exercisable ratably over a four year period from the date
of grant, with the vesting interval (i.e., monthly, quarterly, etc.) and any
period prior to the commencement of vesting determined in each case by the Plan
Administrator. No such option, however, shall have a maximum term in excess of
ten (10) years from the grant date. During the lifetime of the Optionee, the
option shall be exercisable only by the Optionee and shall not be assignable or
transferable by the Optionee otherwise than by will or by the laws of descent
and distribution following the Optionee's death.

                C. Termination of Service.

                (1) Except to the extent otherwise provided pursuant to Section
VI of this Article Two, the following provisions shall govern the exercise
period applicable to any outstanding options under the Plan which are held by
the Optionee at the time of his or her cessation of Service or death.

                  - Should the Optionee cease Service for any reason (including
        death or permanent disability as defined in Section 22(e)(3) of the
        Internal Revenue Code) while holding one or more outstanding options
        under the Plan, then none of those options shall (except to the extent
        otherwise provided pursuant to Section VI of this Article Two) remain
        exercisable beyond the limited post-Service period designated by the
        Plan Administrator at the time of the option grant and set forth in the
        option agreement.

                  - Any option granted to an Optionee under the Plan and
        exercisable in whole or in part on the date of the Optionee's death may
        be subsequently exercised, by the personal representative of the
        Optionee's estate or by the person or persons to whom the option is
        transferred pursuant to the Optionee's will or in accordance with the
        laws of descent and distribution, provided and only if such exercise
        occurs prior to the earlier of (i) the expiration of the period
        designated by the Plan Administrator at the time of the option grant and
        set forth in the option agreement, which may be any period from one
        month to three years measured from the date of the Optionee's death, or
        (ii) the specified expiration date of the option term. Upon the
        occurrence of the earlier event, the option shall terminate and cease to
        be exercisable.

                  - Under no circumstances, however, shall any such option be
        exercisable after the specified expiration date of the option term.

                  - During the limited post-Service exercise period, the option
        may not be exercised for more than the number of shares for which the
        option is exercisable on the date of the Optionee's cessation of
        Service. Upon the expiration of such limited exercise period or (if
        earlier) upon the expiration of the option term, the option shall
        terminate and cease to be exercisable. However, upon the Optionee's
        cessation of Service, each outstanding option at the time held by the
        Optionee shall immediately terminate and cease to be outstanding with
        respect to any shares for which the option is not otherwise at that time
        exercisable or in which the Optionee is not otherwise vested.

                  - Should (i) the Optionee's Service be terminated for
        misconduct (including, but not limited to, any act of dishonesty,
        willful misconduct, fraud or embezzlement) or (ii) the Optionee make any
        unauthorized use or disclosure of confidential information or trade
        secrets of the Corporation or its parent or subsidiary corporations,
        then in any such event all outstanding options held by the Optionee
        under this Article Two shall terminate immediately and cease to be
        exercisable.

                (2) The Plan Administrator shall have complete discretion,
exercisable either at the time the option is granted or at any time while the
option remains outstanding, to permit one or more options held by the Optionee
under this Article Two to be exercised, during the limited period of
exercisability provided under subparagraph (1) above, not only with respect to
the number of shares for which each such option is exercisable at the time of
the Optionee's cessation of Service but also with respect to one or more
subsequent installments for which the option would otherwise have become
exercisable had such cessation of Service not occurred.

                (3) For purposes of the foregoing provisions of this Section I.C
(and for all other purposes under the Plan):

                  - The Optionee shall (except to the extent otherwise
        specifically provided in the applicable option agreement) be deemed to
        remain in the Service of the Corporation for so long as such individual

                                       5
<PAGE>

       renders services on a periodic basis to the Corporation (or any parent or
       subsidiary corporation) in the capacity of an Employee, a non-employee
       member of the Board or an independent consultant or advisor.

                  - The Optionee shall be considered to be an Employee for so
        long as he or she remains in the employ of the Corporation or one or
        more parent or subsidiary corporations, subject to the control and
        direction of the employer entity not only as to the work to be performed
        but also as to the manner and method of performance.

                D. Stockholder Rights.

                An Optionee shall have no stockholder rights with respect to any
shares covered by the option until such individual shall have exercised the
option, paid the option price for the purchased shares and been issued a stock
certificate for such shares.

                E. Repurchase Rights.

                The shares of Common Stock acquired upon the exercise of options
granted under this Article Two may be subject to repurchase by the Corporation
in accordance with the following provisions:

                (a) The Plan Administrator shall have the discretion to
authorize the issuance of unvested shares of Common Stock under this Article
Two. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase any or all of those unvested
shares at the option price paid per share. The terms and conditions upon which
such repurchase right shall be exercisable (including the period and procedure
for exercise and the appropriate vesting schedule for the purchased shares)
shall be established by the Plan Administrator and set forth in the instrument
evidencing such repurchase right.

                (b) All of the Corporation's outstanding repurchase rights shall
automatically terminate, and all shares subject to such terminated rights shall
immediately vest in full, upon the occurrence of any Corporate Transaction under
Section III of this Article Two, except to the extent:

                  (i) any such repurchase right is to be assigned to the
        successor corporation (or parent thereof) in connection with the
        Corporate Transaction or (ii) such termination is precluded by other
        limitations imposed by the Plan Administrator at the time the repurchase
        right is issued.

                (c) The Plan Administrator shall have the discretionary
authority, exercisable either before or after the Optionee's cessation of
Service, to cancel the Corporation's outstanding repurchase rights with respect
to one or more shares purchased or purchasable by the Optionee under this
Article Two and thereby accelerate the vesting of such shares in whole or in
part at any time.

II. INCENTIVE OPTIONS

                The terms and conditions specified below shall be applicable to
all Incentive Options granted under the Plan. Incentive Options may only be
granted to individuals who are Employees of the Corporation. Options which are
specifically designated as "non- statutory" options when issued under the Plan
shall not be subject to such terms and conditions.

                A. Dollar Limitation. The aggregate fair market value
(determined as of the respective date or dates of grant) of the Common Stock for
which one or more options granted to any Employee after December 31, 1986 under
this Plan (or any other option plan of the Corporation or its parent or
subsidiary corporations) may for the first time become exercisable as incentive
stock options under the Federal tax laws during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two or more such options which become exercisable for the first
time in the same calendar year, the foregoing limitation on the exercisability
of such options as incentive stock options under the Federal tax laws shall be
applied on the basis of the order in which such options are granted.

                B. 10% Stockholder. If any individual to whom an Incentive
Option is granted is the owner of stock (as determined under Section 424(d) of
the Internal Revenue Code) possessing 10% or more of the total

                                       6
<PAGE>

combined voting power of all classes of stock of the Corporation or any one of
its parent or subsidiary corporations, then the option price per share shall not
be less than one hundred and ten percent (110%) of the fair market value per
share of Common Stock on the grant date, and the option term shall not exceed
five (5) years, measured from the grant date.

                Except as modified by the preceding provisions of this Section
II, the provisions of Articles One, Two and Three of the Plan shall apply to all
Incentive Options granted hereunder.

III. CORPORATE TRANSACTIONS/CHANGES IN CONTROL

                A. In the event of any of the following stockholder-approved
transactions to which the Corporation is a party (a "Corporate Transaction"):

                (i) a merger or consolidation in which the Corporation is not
the surviving entity, except for a transaction the principal purpose of which is
to change the State of the Corporation's incorporation,

                (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Corporation in liquidation or dissolution
of the Corporation, or

                (iii) any reverse merger in which the Corporation is the
surviving entity but in which securities possessing more than fifty percent
(50%) of the total combined voting power of the Corporation's outstanding
securities are transferred to holders different from those who held such
securities immediately prior to such merger, then the exercisability of each
option outstanding under the Plan shall automatically accelerate so that each
such option shall, immediately prior to the specified effective date for the
Corporate Transaction, become fully exercisable with respect to the total number
of shares of Common Stock at the time subject to such option and may be
exercised for all or any portion of such shares. However, an outstanding option
under this Article Two shall not so accelerate if and to the extent: (i) such
option is, in connection with the Corporate Transaction, to be assumed by the
successor corporation or parent thereof or replaced with a comparable option to
purchase shares of the capital stock of the successor corporation or parent
thereof, (ii) such option is to be replaced by a comparable cash incentive
program of the successor corporation based on the option spread at the time of
the Corporate Transaction, or (iii) the acceleration of such option is subject
to other limitations imposed by the Plan Administrator at the time of the option
grant. The determination of comparability under clause (i) or (ii) above shall
be made by the Plan Administrator, and its determination shall be final, binding
and conclusive.

                B. Immediately after the consummation of the Corporate
Transaction, all outstanding options under the Plan shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation or its
parent company.

                C. Each outstanding option under the Plan which is assumed in
connection with the Corporate Transaction or is otherwise to continue in effect
shall be appropriately adjusted, immediately after such Corporate Transaction,
to apply and pertain to the number and class of securities which would have been
issued to the option holder, in consummation of such Corporate Transaction, had
such person exercised the option immediately prior to such Corporate
Transaction. Appropriate adjustments shall also be made to the option price
payable per share, provided the aggregate option price payable for such
securities shall remain the same. In addition, the maximum number and/or class
of securities available for issuance under the Plan, the maximum number and/or
class of securities which may be issued pursuant to Incentive Options granted
under the Plan, whether before or after the first day of the 1995 fiscal year,
and the total number and/or class of securities for which stock options and
separately-exercisable stock appreciation rights may be granted to any one
participant in the Plan after December 31, 1993 shall be appropriately adjusted
following the consummation of the Corporate Transaction to reflect the effect of
such transaction upon the Corporation's capital structure.

                D. The grant of options under the Plan shall in no way affect
the right of the Corporation to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets.

                E. The Plan Administrator shall have the discretionary
authority, exercisable at the time the option is granted or at any time while
the option remains outstanding, to provide for the automatic acceleration of

                                       7
<PAGE>

one or more outstanding options under this Article Two (and the termination of
one or more of the Corporation's outstanding repurchase rights under this
Article Two) upon the occurrence of a Change in Control. Alternatively, the Plan
Administrator shall have full power and authority to condition any such option
acceleration (and the termination of any outstanding repurchase rights) upon the
subsequent termination of the Optionee's Service within a specified period
following the Change in Control.

                F. For purposes of this Section III, a Change in Control shall
be deemed to occur in the event:

                (i) any person or related group of persons (other than the
Corporation or a person that directly or indirectly controls, is controlled by,
or is under common control with, the Corporation) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation's outstanding securities pursuant to a tender or
exchange offer made directly to the Corporation's stockholders which the Board
does not recommend such stockholders to accept; or

                (ii) there is a change in the composition of the Board over a
period of twenty-four (24) consecutive months or less such that a majority of
the Board members ceases, by reason of one or more proxy contests for the
election of Board members, to be comprised of individuals who either (A) have
been Board members continuously since the beginning of such period or (B) have
been elected or nominated for election as Board members during such period by at
least a majority of the Board members described in clause (A) who were still in
office at the time such election or nomination was approved by the Board.

                G. Any options accelerated in connection with the Change in
Control shall remain fully exercisable until the expiration or sooner
termination of the option term.

                H. The exercisability as incentive stock options under the
Federal tax laws of any options accelerated under this Section III in connection
with a Corporate Transaction or Change in Control shall remain subject to the
dollar limitation of Section II of this Article Two.

IV. [INTENTIONALLY OMITTED.]

V. STOCK APPRECIATION RIGHTS

                A. Provided and only if the Plan Administrator determines in its
discretion to implement the stock appreciation right provisions of this Section
V, one or more Optionees may be granted the right, exercisable upon such terms
and conditions as the Plan Administrator may establish, to surrender all or part
of an unexercised option under this Article Two in exchange for a distribution
from the Corporation in an amount equal to the excess of (i) the fair market
value (on the option surrender date) of the number of shares in which the
Optionee is at the time vested under the surrendered option (or surrendered
portion thereof) over (ii) the aggregate option price payable for such vested
shares.

                B. No surrender of an option shall be effective hereunder unless
it is approved by the Plan Administrator. If the surrender is so approved, then
the distribution to which the Optionee shall accordingly become entitled under
this Section V may be made in shares of Common Stock valued at fair market value
on the option surrender date, in cash, or partly in shares and partly in cash,
as the Plan Administrator shall in its sole discretion deem appropriate.

                C. If the surrender of an option is rejected by the Plan
Administrator, then the Optionee shall retain whatever rights the Optionee had
under the surrendered option (or surrendered portion thereof) on the option
surrender date and may exercise such rights at any time prior to the later of
(i) five (5) business days after the receipt of the rejection notice or (ii) the
last day on which the option is otherwise exercisable in accordance with the
terms of the instrument evidencing such option, but in no event may such rights
be exercised more than ten (10) years after the date of the option grant.

                D. One or more officers of the Corporation subject to the
short-swing profit restrictions of the Federal securities laws may, in the Plan
Administrator's sole discretion, be granted limited stock appreciation rights

                                       8
<PAGE>

in tandem with their outstanding options under the Plan. Upon the occurrence of
a Hostile Take-Over effected at any time when the Corporation's outstanding
Common Stock is registered under Section 12(g) of the 1934 Act, each outstanding
option with such a limited stock appreciation right in effect for at least six
(6) months shall automatically be cancelled, to the extent such option is at the
time exercisable for fully-vested shares of Common Stock. The Optionee shall in
return be entitled to a cash distribution from the Corporation in an amount
equal to the excess of (i) the Take-Over Price of the vested shares of Common
Stock at the time subject to the cancelled option (or cancelled portion of such
option) over (ii) the aggregate exercise price payable for such shares. The cash
distribution payable upon such cancellation shall be made within five (5) days
following the consummation of the Hostile Take-Over. Neither the approval of the
Plan Administrator nor the consent of the Board shall be required in connection
with such option cancellation and cash distribution. The uncancelled portion of
the option (if any) shall continue to remain outstanding and become exercisable
in accordance with the terms of the agreement evidencing that grant.

                E. For purposes of Section V.D, the following definitions shall
be in effect:

                A Hostile Take-Over shall be deemed to occur in the event (i)
any person or related group of persons (other than the Corporation or a person
that directly or indirectly controls, is controlled by, or is under common
control with, the Corporation) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Corporation's outstanding securities pursuant to a tender or exchange offer
made directly to the Corporation's stockholders which the Board does not
recommend such stockholders to accept and (ii) more than fifty percent (50%) of
the securities so acquired in such tender or exchange offer are accepted from
holders other than Corporation officers and directors participating in the Plan.

                The Take-Over Price per share shall be deemed to be equal to the
greater of (a) the fair market value per share on the date of cancellation, as
determined pursuant to the valuation provisions of Section I.A. (3) of this
Article Two, or (b) the highest reported price per share of Common Stock paid in
effecting such Hostile Take-Over. However, if the cancelled option is an
Incentive Option, the Take-Over Price shall not exceed the clause (a) price per
share.

                F. The shares of Common Stock subject to any option surrendered
or cancelled for an appreciation distribution pursuant to this Section V shall
not be available for subsequent option grant under the Plan.

VI. EXTENSION OF EXERCISE PERIOD

                The Plan Administrator shall have full power and authority to
extend the period of time for which any option granted under this Article Two is
to remain exercisable following the Optionee's cessation of Service or death
from the limited period in effect under Section I.C.(1) of this Article Two to
such greater period of time as the Plan Administrator shall deem appropriate;
provided, however, that in no event shall such option be exercisable after the
specified expiration date of the option term.

                                  ARTICLE THREE
                                  MISCELLANEOUS

I. [INTENTIONALLY OMITTED.]

II. AMENDMENT OF THE PLAN AND AWARDS

                A. The Board has complete and exclusive power and authority to
amend or modify the Plan in any or all respects whatsoever. However, no such
amendment or modification may adversely affect the rights and obligations of an
Optionee with respect to options at the time outstanding under the Plan, unless
the Optionee consents to such amendment. In addition, the Board may not, without
the approval of the Corporation's stockholders, amend the Plan to (i) materially
increase the maximum number of shares issuable under the Plan, the maximum
number of shares issuable pursuant to Incentive Options granted under the Plan
on or after the first day of the 1995 fiscal year or the number of shares for
which any one individual participating in the Plan may be granted

                                       9
<PAGE>

stock options and separately-exercisable stock appreciation rights in the
aggregate after December 31, 1993 (except for permissible adjustments under
Article One, Section IV) or (ii) materially modify the eligibility requirements
for participation in the Plan or the benefits accruing to Optionees under the
Plan.

                B. Options to purchase shares of Common Stock may be granted in
excess of the number of shares then available for issuance under the Plan,
provided any excess shares actually issued are held in escrow until stockholder
approval is obtained for a sufficient increase in the number of shares available
for issuance under the Plan. If such stockholder approval is not obtained within
twelve (12) months after the date the first such excess option grants are made,
then (I) any unexercised excess options shall terminate and cease to be
exercisable and (II) the Corporation shall promptly refund the purchase price
paid for any excess shares actually issued under the Plan and held in escrow,
together with interest (at the applicable Short Term Federal Rate) for the
period the shares were held in escrow.

III. EFFECTIVE DATE AND TERM OF PLAN

                A. The Plan was initially adopted by the Board effective
February 24, 1992. The Plan was amended by the Board on July 29, 1992, October
28, 1992, October 27, 1993, October 27, 1994, November 1, 1995, May 1, 1996, May
3, 1996, October 30, 1996, January 11, 2000, and May 25, 2001.

                B. Each option issued and outstanding under the 1988 Plan
immediately prior to the Effective Date of this Plan shall be incorporated into
this Plan and treated as an outstanding option under this Plan, but each such
option shall continue to be governed solely by the terms and conditions of the
instrument evidencing such grant, and nothing in this Plan shall be deemed to
affect or otherwise modify the rights or obligations of the holders of such
options with respect to their acquisition of shares of Common Stock thereunder.
Each unvested share of Common Stock outstanding under the 1988 Plan on the
Effective Date of this Plan shall continue to be governed solely by the terms
and conditions of the instrument evidencing such share issuance, and nothing in
this Plan shall be deemed to affect or otherwise modify the rights or
obligations of the holder of such unvested shares.

                C. The sale and remittance procedure authorized for the exercise
of outstanding options under this Plan shall be available for all options
granted under this Plan on or after the Effective Date and for all non-statutory
options outstanding under the 1988 Plan and incorporated into this Plan. The
Plan Administrator may also allow such procedure to be utilized in connection
with one or more disqualifying dispositions of Incentive Option shares effected
after the Effective Date, whether such Incentive Options were granted under this
Plan or the 1988 Plan.

                D. The option/vesting acceleration provisions of Section III of
Article Two relating to Corporate Transactions and Changes in Control may, in
the Plan Administrator's discretion, be extended to one or more stock options
which are outstanding under the 1988 Plan on the Effective Date of this Plan but
which do not otherwise provide for such acceleration.

                E. The Plan shall terminate upon the earlier of (i) January 13,
2002 or (ii) the date on which all shares available for issuance under the Plan
shall have been issued or cancelled pursuant to the exercise, surrender or
cash-out of the outstanding options under the Plan. If the date of termination
is determined under clause (i) above, then all option grants outstanding on such
date shall thereafter continue to have force and effect in accordance with the
provisions of the instruments evidencing such grants.

IV. USE OF PROCEEDS

                Any cash proceeds received by the Company from the sale of
shares under the Plan shall be used for general corporate purposes.

V. REGULATORY APPROVALS

                                       10
<PAGE>

                A. The implementation of the Plan, the granting of any option
under the Plan and the issuance of Common Stock upon the exercise or surrender
of the option grants made hereunder shall be subject to the Corporation's
procurement of all approvals and permits required by regulatory authorities
having jurisdiction over the Plan, the options granted under it, and the Common
Stock issued pursuant to it.

                B. No shares of Common Stock or other assets shall be issued or
delivered under this Plan unless and until there shall have been compliance with
all applicable requirements of Federal and State securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing requirements
of any securities exchange on which stock of the same class is then listed.

VI. NO EMPLOYMENT/SERVICE RIGHTS

                Neither the action of the Company in establishing the Plan, nor
any action taken by the Plan Administrator hereunder, nor any provision of the
Plan shall be construed so as to grant any individual the right to remain in the
employ or service of the Corporation (or any parent or subsidiary corporation)
for any period of specific duration, and the Corporation (or any parent or
subsidiary corporation retaining the services of such individual) may terminate
such individual's employment or service at any time and for any reason, with or
without cause.

VII. MISCELLANEOUS PROVISIONS

                A. The right to acquire Common Stock or other assets under the
Plan may not be assigned, encumbered or otherwise transferred by any Optionee.

                B. The provisions of the Plan shall be governed by the laws of
the State of California, as such laws are applied to contracts entered into and
performed in such State.

                C. The provisions of the Plan shall inure to the benefit of, and
be binding upon, the Corporation and its successors or assigns, whether by
Corporate Transaction or otherwise, and the Optionees, the legal representatives
of their respective estates, their respective heirs or legatees and their
permitted assignees.

                                       11
<PAGE>

Schedule A

                           Companies Participating in
                      International Employee Stock Purchase
                                      Plan

<TABLE>
<CAPTION>
Name                                                           Jurisdiction of Incorporation
----                                                           -----------------------------
<S>                                                            <C>
Nihon Synopsys KK                                                                      Japan
Synopsys Consulting SARL                                                              France
Synopsys Finland OY                                                                  Finland
Synopsys GmbH                                                                        Germany
Synopsys (India) Private Limited.                                                      India
Synopsys International, Inc.                                                        Barbados
Synopsys International Limited                                                       Ireland
Synopsys Ireland Limited                                                             Ireland
Synopsys Ireland Resources                                                           Ireland
Synopsys Italia, S.r.l.                                                                Italy
Synopsys Korea, Inc. (Yuhan Hoesa Synopsys Korea)                                      Korea
Synopsys (Northern Europe) Limited                                            United Kingdom
Synopsys SARL                                                                         France
Synopsys Scandinavia AB                                                               Sweden
Synopsys Services SARL                                                                France
Synopsys (Singapore) Pte. Limited.                                                 Singapore
Synopsys Israel Limited                                                               Israel
Synopsys (India) EDA Software Private Limited                                          India
Synopsys Denmark ApS                                                                 Denmark
Synopsys Leda SARL                                                                    France
Synopsys Taiwan Limited                                                               Taiwan
</TABLE>

                                       1

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