Document:

Settlement Agreement

					
	  	 	  	  	FOIA
		 		  	CONFIDENTIAL
		 		  	TREATMENT
		 		  	REQUESTED

 EXHIBIT 10.37 
 SETTLEMENT AGREEMENT 
 This Settlement Agreement (“Settlement Agreement”) is made and
entered into as of the last date of signature below (the “Effective Date”), by and between Synopsys, Inc., a Delaware corporation, having offices at 700 East Middlefield Road, Mountain View, California 94043 USA (“Synopsys”), and
Magma Design Automation, Inc. (“Magma”), a Delaware corporation, having offices at 1650 Technology Dr., San Jose, CA 95110 USA (Synopsys and Magma are individually referred to herein as a “party,” and collectively as the
“parties”). 
 WHEREAS, Synopsys and Magma have asserted claims against each other in the Actions; 
 WHEREAS, Synopsys and Magma desire to settle all claims that were ever asserted in the Actions on the terms and conditions recited below; 
 NOW, THEREFORE, in consideration of the above recitals and the terms and conditions hereinafter contained, the parties agree as follows: 
 ARTICLE 1 — DEFINITIONS 
 As used
in this Settlement Agreement, the following terms shall have the following meanings: 
 1.1 “Actions” means the following
legal proceedings: 
 (a) Synopsys, Inc. v. Magma Design Automation, Inc., United States District Court for the Northern District of
California, Case No. 3:04-CV-03923-MMC (“the First California Case”); 
 (b) Synopsys, Inc. v. Magma Design Automation,
Inc., United States District Court for the Northern District of California, Case No. 3:05-CV-04243-MMC (“the Second California Case”); 
 (c) Synopsys, Inc. v. Magma Design Automation, Inc., United States District Court for the District of Delaware, Case No. 05-CV-701-GMS (“the Delaware Case”); 
 (d) Synopsys, Inc. v. Magma Design Automation, Inc., Landgericht München I (District Court Munich I), File No. 7 O 7714/05, filed
August 16, 2005; and, 
 (e) Synopsys, Inc. v. Magma Design Automation, Inc., Civil Department No. 40 of the Tokyo District
Court, Case No. (Wa) 15454/2005, filed July 29, 2005.  
  

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 1.2 “Change Of Control” means, as to a subject party, a transaction or a series of
related transactions in which either: 
 (a) (i) one or more related Third Parties (who did not previously Control or were Controlled by the
subject party) obtain Control of the subject party, or (ii) the subject party merges with, or transfers substantially all of its assets or business to, a one or more related Third Parties, or (iii) one or more related Third Parties
otherwise acquires all or substantially all of the assets or stock of the subject party; or 
 (b) the subject party acquires through merger, acquisition of stock, acquisition of assets, or otherwise, a Third Party, a portion of a Third Party, or some or all of the assets of a Third Party, such that any one or more of the
(i) value (as determined by market capitalization for a public company or as reasonably determined pursuant to GAAP for a private company), (ii) assets and/or (iii) revenue, in each case of (i), (ii) and/or (iii), of the subject
party after such acquisition are at least one and one half (1- 1/2) times their respective values prior to such
transaction. 
 1.3 “Control” (including “Controlled” and other forms) of an entity means (i) either
(A) beneficial ownership (whether direct, or indirect through Controlled entities or other means) of fifty percent (50%) or more of the outstanding voting securities of that entity or (B) in the case of an entity that has no
outstanding voting securities, having the right (directly or indirectly) to fifty percent (50%) or more of the profits of the entity, or having the right (directly or indirectly) in the event of dissolution to more than fifty percent
(50%) of the assets of the entity; or (ii) having the contractual power (directly or indirectly) presently to designate more than fifty percent (50%) of the directors of a corporation, or in the case of unincorporated entities, of
individuals exercising similar functions. (By way of example only, an entity has indirect Control of a Subsidiary of its Subsidiary). 
 1.4 “Magma Patent(s)” mean U.S. Patent No. 6,505,328 (the “‘328” Patent), U.S. Patent No. 6,519,745 (the “‘745” Patent), U.S. Patent No. 6,857,116 (the “‘116”
Patent), U.S. Patent No. 6,854,093 (the “‘093” Patent), U.S. Patent No. 6,931,610 (the “‘610” Patent), all reissues, reexaminations and extensions of any of such patents, and any other patents issuing from
continuations, continuations-in-part and divisions of the applications on which such patents are based, and all patent applications and issued patents (both foreign and domestic) which claim priority from the same application or applications as any
of the ‘328, ‘745, ‘116, ‘093, and ‘610 Patents. 
 1.5 “Person” shall mean an individual, trust,
corporation, partnership, joint venture, limited liability company, association, unincorporated organization or other legal or governmental entity. 
 1.6 “Subsidiary” means, for an identified entity, any entity Controlled by the identified entity, but only so long as such Control exists. Subsidiary shall not include any entity that meets the definition set forth in the
foregoing sentence as a consequence of a Change Of Control of a party. 
  

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 1.7 “Synopsys Patents” means U.S. Patent No. 6,453,446 (the “‘446”
Patent), U.S. Patent No. 6,725,438 (the “‘438” Patent), U.S. Patent No. 6,378,114 (the “‘114” Patent), U.S. Patent No. 6,192,508 (the “‘508” Patent), U.S. Patent No. 6,434,733 (the
“‘733” Patent), U.S. Patent No. 6,766,501 (the “‘501” Patent), all reissues, reexaminations and extensions of any of such patents, and any other patents issuing from continuations, continuations-in-part and
divisions of the applications on which such patents are based, and all patent applications and issued patents (both foreign and domestic) which claim priority from the same application or applications as any of the ‘446, ‘438, ‘114,
‘508, ‘733 and ‘501 Patents. 
 1.8 “Third Party” means a Person other than a party to this Settlement
Agreement or a Subsidiary of a party to this Settlement Agreement. 
 ARTICLE 2 — DISMISSALS, RELEASES, LICENSES AND STANDSTILL

 2.1 Dismissal Within five (5) business days of the Payment Date (as defined in Article 4.1), the parties shall jointly
execute and file dismissals with prejudice of all of the Actions, with each party bearing its own attorney’s fees and costs. With respect to the Actions pending in Germany and Japan, the parties shall jointly request withdrawal of those Actions
based upon the settlement reflected herein, including without limitation, Magma’s agreement, in Article 3 below, to quitclaim any ownership rights and assign the European and Japanese patent applications to Synopsys and IBM Corporation.
Notwithstanding the foregoing, in the event that Magma fails to make the payment to Synopsys on the Payment Date as required by Article 4 below, then Synopsys shall not be required to dismiss any of the claims or counterclaims it asserted in the
Actions, but Magma shall be required to dismiss with prejudice all claims and counterclaims it asserted in the Actions.  
 2.2
Synopsys Release Subject to the exceptions set forth in Article 2.8 below, Synopsys, and Synopsys’s successors, predecessors, parents, subsidiaries, affiliates, officers, directors, shareholders, employees and agents, hereby release,
relinquish and discharge Magma, and all of Magma’s successors, predecessors, parents, subsidiaries, affiliates, officers, directors, shareholders, employees, and agents from any and all claims, causes of action, demands, damages, liabilities
and losses of any nature (1) which ever were asserted by Synopsys in the Actions, or (2) which arise out of Lukas van Ginneken’s misappropriation of the information disclosed in the patent applications that led to the issuance of the
‘446 and ‘438 Patents, including but not limited to any trade secret information. 
 2.3 Magma Release Subject to the
exceptions set forth in Article 2.9 below, Magma, and Magma’s successors, predecessors, parents, subsidiaries, affiliates, officers, directors, shareholders, employees and agents, hereby release, relinquish and discharge Synopsys, and all of
Synopsys’s successors, predecessors, parents, subsidiaries, affiliates, officers, directors, shareholders, employees, and agents from any and all claims, causes of action, demands, damages, liabilities and losses of any nature which ever were
asserted by Magma in the Actions. 
  

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 2.4 Magma License 
  

	 	2.4.1	Subject to the exceptions set forth in Article 2.9 below, Magma hereby grants to Synopsys and its Subsidiaries a perpetual (unless terminated in accordance with Article 2.4.4),
fully paid-up, royalty free, worldwide, non-exclusive, non- transferable (except as provided in Article 2.4.4 below), non-sublicensable license under the Magma Patents to make, use, sell (including by means of a software license), offer to sell, and
import Synopsys Licensed Products. No license is granted to Synopsys to practice any Magma Patent except in the form of a Synopsys Licensed Product. 

  

	 	2.4.2	“Synopsys Licensed Product(s)” means a software product where (i) substantially all of the code has been authored by employees of, or consultants, to Synopsys,
(ii) Synopsys owns the copyright in such software, (iii) such product is marketed and sold under a Synopsys trademark, and (iv) such product is licensed to an end-user customer of Synopsys by Synopsys under an industry standard
license. 

  

	 	2.4.3	Synopsys shall not engage in any practice or conduct that would have the effect of granting, or result in any third party or other entity being granted, any sublicense to any of the
Magma Patents. 

  

	 	2.4.4	 The foregoing license is personal to Synopsys and its Subsidiaries and may not be transferred or assigned, directly or indirectly to any third party or other entity
except in the event of a Change Of Control of Synopsys (or any successor resulting from a Change Of Control of Synopsys); provided that in the event of such Change Of Control, the license set forth in Article 2.4.1 above shall extend only to those
Synopsys Licensed Products that are the same as those Synopsys Licensed Products (the “Original Synopsys Products”) that were being commercially sold by Synopsys (but not the successor resulting from a Change Of Control of Synopsys) or its
Subsidiaries on or before the date that is six months prior to Synopsys (but not the successor resulting from a Change of Control of Synopsys) signing a definitive agreement for such Change Of Control. For the purposes of the foregoing, a product
shall only be considered a Synopsys Licensed Product if it is substantially identical to an Original Synopsys Product or differs from an Original Synopsys Product only with respect to bug fixes, error corrections, or product updates, upgrades or
enhancements for the Original Synopsys Product made available as such to licensees of the Original Synopsys Product. For absence of doubt, “Original Synopsys Products” does not include replacement or successor products and refers to the
Synopsys Licensed Products being sold by Synopsys prior to a Change Of Control of Synopsys and not any 

  

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products being sold by a successor to Synopsys prior to such subsequent Change Of Control. Any purported assignment or transfer in violation of the foregoing
shall result in the termination of the license set forth in this Section 2.4. 

 2.5 Synopsys License.

  

	 	2.5.1	Subject to the exceptions set forth in Article 2.8 below, Synopsys hereby grants to Magma and its Subsidiaries a perpetual (unless terminated in accordance with Article 2.5.4),
fully paid-up, royalty free, worldwide, non-exclusive, non- transferable (except as provided in Article 2.5.4 below), non-sublicensable license under the Synopsys Patents to make, use, sell (including by means of a software license), offer to sell,
and import Magma Licensed Products. No license is granted to Magma to practice any Synopsys Patent except in the form of a Magma Licensed Product. 

  

	 	2.5.2	“Magma Licensed Product(s)” means a software product where (i) substantially all of the code has been authored by employees of, or consultants, to Magma,
(ii) Magma owns the copyright in such software, (iii) such product is marketed and sold under a Magma trademark, and (iv) such product is licensed to an end-user customer of Magma by Magma under an industry standard license.

  

	 	2.5.3	Magma shall not engage in any practice or conduct that would have the effect of granting, or result in any third party or other entity being granted, any sublicense to any of the
Synopsys Patents. 

  

	 	2.5.4	 The foregoing license is personal to Magma and its Subsidiaries and may not be transferred or assigned, directly or indirectly to any third party or other entity
except in the event of a Change Of Control of Magma (or any successor resulting from a Change Of Control of Magma); provided that in the event of such Change Of Control, the license set forth in Article 2.5.1 above shall extend only to those Magma
Licensed Products that are the same as those Magma Licensed Products (the “Original Magma Products”) that were being commercially sold by Magma (but not the successor resulting from a Change Of Control of Magma) or its Subsidiaries on or
before the date that is six months prior to Magma (but not the successor resulting from a Change Of Control of Magma) signing a definitive agreement for such Change Of Control. For the purposes of the foregoing, a product shall only be considered a
Magma Licensed Product if it is substantially identical to an Original Magma Product or differs from an Original Magma Product only with respect to bug fixes, error corrections, or product updates, upgrades or enhancements for the Original Magma
Product made available as such to licensees of the Original Magma Product. For absence of doubt, “Original Magma Products” does not include replacement or successor products and refers to the Magma Licensed Products being sold by Magma
prior to a Change Of Control of Magma and not any products being sold by a successor to 

  

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Magma prior to such subsequent Change Of Control. Any purported assignment or transfer in violation of the foregoing shall result in the termination of the
license set forth in this Section 2.5. 

 2.6 Magma Standstill Subject to the exceptions set forth in Article
2.9 below, and for a period of two years commencing on the Effective Date (the “Standstill Period”), Magma and its Subsidiaries shall not commence, or join in, any legal or administrative proceeding (i) accusing Synopsys or its
Subsidiaries of infringing any patent as to which, during the Standstill Period, Magma or its Subsidiaries has the right to sue for, or control the suit for, infringement, (ii) for a declaratory judgment that Magma, its Subsidiaries or either
of their direct or indirect customers do not infringe any patent owned by Synopsys, (iii) for a declaratory judgment that any patent owned by Synopsys or its Subsidiaries is invalid and/or unenforceable, and/or (iv) challenging the
validity or patentability of any patent or patent application owned by Synopsys or its Subsidiaries, including but not limited to reexamination proceedings (collectively “the Magma Patent Claims”). If during the Standstill Period, Synopsys
or its Subsidiaries commences legal proceedings against Magma or its Subsidiaries that are not prohibited by Article 2.7 below, then in such legal proceedings, the provisions of the first sentence of this Article 2.6 shall not prevent Magma or its
Subsidiaries from asserting by way of counterclaim any of the Magma Patent Claims. If during the Standstill Period, there is a Change Of Control in Synopsys, then the provisions of the first sentence of this Article 2.6 shall terminate. Upon
expiration of the Standstill Period, Magma and its Subsidaries shall have the right to commence any legal or administrative proceedings otherwise prohibited by the first sentence of this Article 2.6. In any patent infringement action commenced by
Magma or its Subsidiaries against Synopsys or its Subsidiaries upon expiration or termination of the Standstill Period, the provisions of the first sentence of this Article 2.6 shall not prevent Magma or its Subsidiaries from recovering damages for
any alleged infringement by Synopsys or its Subsidiaries that occurred during the Standstill Period. If during the Standstill Period, Magma or its Subsidiaries transfers to any Person (i) any patent that it or its Subsidiaries owns or controls,
or (ii) any right it or its Subsidiaries has to sue for infringement of any patent, Magma or its Subsidiaries shall require as a condition of such transfer that the transferee assume, in writing, the obligation not to commence legal proceedings
against Synopsys and its Subsidiaries for infringement of any such patent during the Standstill Period. In the event that the transferee commences such legal proceedings during the Standstill Period, then the standstill provisions of Article 2.7
shall terminate. 
 If Magma or its Subsidiaries commence or join in any legal or administrative proceeding against Synopsys or its
Subsidiaries not prohibited by this Article 2.6 during the Standstill Period, Magma shall immediately give notice to Synopsys, and both parties and their Subsidiaries shall keep such commencement or joinder confidential and shall not serve or
otherwise prosecute such action until 30 days after such commencement or joinder, during which 30 day period senior executives of the parties shall meet in person to discuss a resolution. 
 During the Standstill Period, neither Magma nor its Subsidiaries shall (i) take any further active role in the reexamination of the ‘446
Patent, the ‘438 Patent or the ‘114 Patent 

  

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currently pending in the United States Patent and Trademark Office (“USPTO”), except as required by law; (ii) respond to any inquiries from
the USPTO with respect to such reexamination of the ‘446, ‘438 and ‘114 Patents, except as required by law; or (iii) materially assist any Third Party in challenging the validity or enforceability of the ‘446, ‘438 and
‘114 Patents or responding to any inquiry from the USPTO with respect to any such Third Party reexamination of the ‘446, ‘438 and ‘114 Patents, except as required by law. 
 2.7 Synopsys Standstill Subject to the exceptions set forth in Article 2.8 below, and during the Standstill Period, Synopsys and its Subsidiaries
shall not commence, or join in, any legal or administrative proceeding (i) accusing Magma or its Subsidiaries of infringing any patent as to which, during the Standstill Period, Synopsys or its Subsidiaries has the right to sue for, or control
the suit for, infringement, (ii) for a declaratory judgment that Synopsys, its Subsidiaries or either of their direct or indirect customers do not infringe any patent owned by Magma or its Subsidiaries, (iii) for a declaratory judgment
that any patent owned by Magma or its Subsidiaries is invalid and/or unenforceable, and/or (iv) challenging the validity or patentability of any patent or patent application owned by Magma or its Subsidiaries, including but not limited to
reexamination proceedings (collectively “the Synopsys Patent Claims”). If during the Standstill Period, Magma or its Subsidiaries commences legal proceedings against Synopsys or its Subsidiaries that are not prohibited by Article 2.6
above, then in such legal proceedings, the provisions of the first sentence of this Article 2.7 shall not prevent Synopsys or its Subsidiaries from asserting by way of counterclaim any of the Synopsys Patent Claims. If during the Standstill Period,
there is a Change Of Control in Magma, then the provisions of the first sentence of this Article 2.7 shall terminate. Upon expiration of the Standstill Period, Synopsys and its Subsidiaries shall have the right to commence any legal or
administrative proceedings otherwise prohibited by the first sentence of this Article 2.7. In any patent infringement action commenced by Synopsys or its Subsidiaries against Magma or its Subsidiaries upon expiration or termination of the Standstill
Period, the provisions of the first sentence of this Article 2.7 shall not prevent Synopsys or its Subsidiaries from recovering damages for any alleged infringement by Magma or its Subsidiaries that occurred during the Standstill Period. If during
the Standstill Period, Synopsys or its Subsidiaries transfers to any Person (i) any patent that it or its Subsidiaries owns or controls, or (ii) any right it or its Subsidiaries has to sue for infringement of any patent, Synopsys or its
Subsidiaries shall require as a condition of such transfer that the transferee assume, in writing, the obligation not to commence legal proceedings against Magma and its Subsidiaries for infringement of any such patent during the Standstill Period.
In the event that the transferee commences such legal proceedings during the Standstill Period, then the standstill provisions of Article 2.6 shall terminate. 
 If Synopsys or its Subsidiaries commence or join in any legal or administrative proceeding against Magma or its Subsidiaries not prohibited by this Article 2.7 during the Standstill Period, Synopsys shall immediately
give notice to Magma, and both parties and their Subsidiaries shall keep such commencement or joinder confidential and shall not serve or otherwise prosecute such action until 30 days after such commencement or joinder, during which 30 day period
senior executives of the parties shall meet in person to discuss a resolution. 
  

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 During the Standstill Period, neither Synopsys nor its Subsidiaries shall (i) take any further
active role in the reexamination or declaration of reexamination of the ‘328 Patent the request for which is pending in the United States Patent and Trademark Office (“USPTO”), except as required by law; (ii) respond to any
inquiries from the USPTO with respect to such reexamination or order for reexamination of the ‘328 Patent, except as required by law; or (iii) materially assist any Third Party in challenging the validity or enforceability of the ‘328
Patent or responding to any inquiry from the USPTO with respect to any such Third Party reexamination of the ‘328 Patent, except as required by law. 
 2.8 Exceptions Applicable to Magma If after the Effective Date, Magma or its Subsidiaries materially breach this Settlement Agreement, including without limitation the standstill provisions set forth in Article
2.6 above, the payment provisions set forth in Article 4 below and/or the assignment provisions set forth in Article 3.1 below, then Synopsys shall provide Magma with notice of the breach. If the breach is not cured within five business days of the
notice, then any release and license granted pursuant to Articles 2.2 and 2.5 above shall immediately terminate and be deemed null and void, and Synopsys and its Subsidiaries shall be relieved of their obligations under the standstill provisions of
Article 2.7. Without limiting the availability of any remedies for such breaches, Synopsys shall be entitled to injunctive relief for any breach by Magma of the standstill provisions set forth in Article 2.6 above. In the event of such termination,
the parties further agree that notwithstanding any other provision of this Settlement Agreement, including the filing of any dismissal with prejudice in any of the Actions, Synopsys shall not be estopped, precluded, deemed to have waived, or
otherwise prohibited from asserting, interposing or otherwise raising any claim or other form of action against Magma, even if such claim or other form of action was raised or could have been raised in any of the Actions, including any claim or
other form of action that, absent this Article 2, would otherwise be foreclosed or released by the settlement, dismissals, licenses and releases provided for elsewhere under this Settlement Agreement.  
 2.9 Exceptions Applicable to Synopsys If after the Effective Date, Synopsys or its Subsidiaries materially breach this Settlement Agreement,
including without limitation the standstill provisions set forth in Article 2.7 above, then Magma shall provide Synopsys with notice of the breach. If the breach is not cured within five business days of the notice, then any release and license
previously granted pursuant to Articles 2.3 and 2.4 above shall immediately terminate and be deemed null and void, and Magma and its Subsidiaries shall be relieved of their obligations under the standstill provisions of Article 2.6. Without limiting
the availability of any remedies for such breaches, Magma shall be entitled to injunctive relief for any breach by Synopsys of the standstill provisions set forth in Article 2.7 above. In the event of such termination, the parties further agree that
notwithstanding any other provision of this Settlement Agreement, including the filing of any dismissal with prejudice in any of the Actions, (i) Magma shall not be estopped, precluded, deemed to have waived, or otherwise prohibited from
asserting, interposing or otherwise raising any claim or other form of action against Synopsys, even if such claim or other form of action was raised or could have been raised in any of the Actions, including any claim or other form of action that,
absent this Article 2, would otherwise be foreclosed or released by the settlement, dismissals, licenses and releases provided for elsewhere under this Settlement Agreement. 
  

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 2.10 No Admission The parties agree that the settlement of the Actions is intended solely as a
compromise of disputed claims, counterclaims and defenses, all as more particularly described in this Settlement Agreement. Neither the fact of a party’s entry into this Settlement Agreement nor the terms hereof nor any acts undertaken pursuant
hereto shall constitute an admission or concession by any party relating to any Action regarding liability or the validity of any claim, counterclaim, or defense in the Actions. 
 ARTICLE 3 — ASSIGNMENT OF PATENTS AND APPLICATIONS 
 3.1 Assignment
Within 30 calendar days of the Effective Date, Magma shall deliver to Synopsys (1) executed quitclaims and (2) Magma-executed assignment forms assigning to Synopsys and IBM Corporation the entire right, title and interest in and to the
following patent applications: U.S. Application Nos. 10/828,547, 11/388,325, 11/388,357; Korean Application No. 10-2000-7007136; Israeli Application No. 136709; Canadian Application No. 2317538; and International PCT
Application No. PCT/US98/27488, and any other patents or patent applications which claim priority from the same application or applications as any of the ‘446 and ‘438 Patents. Within 10 calendar days of the Effective Date, Magma
shall assign to Synopsys (1) executed quitclaims and (2) Magma-executed assignment forms assigning to Synopsys and IBM Corporation the entire right, title and interest in and to the following patent applications: Japanese Application
No. 2000-526885; and European Application No. 98964899.3. 
 ARTICLE 4 — PAYMENT 
 4.1 Magma shall pay to Synopsys the sum of 12.5 million dollars in United States currency (US $12,500,000). The sum shall be due and payable
ten calendar days after the Effective Date (the “Payment Date”), and shall be made by wire transfer of funds to the following account: 
 [***] 
 [***] 
 [***]

 Beneficiary: Synopsys, Inc. 
 [***]1 

	 1
	 Information in Section 4.1 of this Agreement has been omitted pursuant to a request for
confidential treatment and filed separately with the Securities Exchange Commission. This Information was omitted because it is confidential, financial information obtained from Synopsys, Inc. 

  

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 ARTICLE 5 – WARRANTIES AND DISCLAIMERS 
 5.1 Synopsys Warranty Synopsys warrants and represents that it has the full right and power to enter into this Settlement Agreement, and to grant
the rights and incur the obligations recited in this Settlement Agreement. 
 5.2 Magma Warranty Magma warrants and represents that it
has the full right and power to enter into this Settlement Agreement, and to grant the rights and incur the obligations recited in this Settlement Agreement. 
 5.3 Disclaimers Nothing in this Settlement Agreement shall be construed as: 
 (a) a warranty or
representation by any party as to the validity or scope of any of its patents; 
 (b) a warranty or representation by any party that any
manufacture, sale, use or other disposition of products by the other party has been or will be free from infringement of any patents; 
 (c)
an agreement by any party to bring or prosecute actions or suits against any Third Party for infringement, or conferring any right to any other party to bring or prosecute actions or suits against any Third Party for infringement; 
 (d) conferring upon any party any right to include in advertising, packaging or other commercial activities related to any product, any reference to
another party, its trade names, trademarks or service marks in a manner which would be likely to cause confusion or to indicate that such product is in any way certified by any other party or its Subsidiaries; 
 (e) conferring by implication, estoppel or otherwise, upon any party, any right or license not expressly set forth herein under any patent or other
intellectual property right; or 
 (f) an obligation to furnish any technical information, copyrights, mask works or know-how, or any
tangible embodiments thereof. 
 ARTICLE 6 — MISCELLANEOUS PROVISIONS 
 6.1 Remedies for Breach In the event of a breach of this Settlement Agreement, the non-defaulting party shall have all rights and remedies
available to it at law or equity, in addition to the rights and remedies provided for in this Settlement Agreement. 
 6.2 Confidentiality
No party shall disclose the terms of this Settlement Agreement, or information relating to this Settlement Agreement, without the prior written consent of the other party except: 
 (a) to Subsidiaries of the parties in confidence; 
  

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 (b) to any governmental body having jurisdiction and specifically requiring such disclosure (in
confidence to the extent allowed); 
 (c) in response to a valid subpoena or as otherwise may be required by law (in confidence to the extent
allowed); 
 (d) as otherwise may be required by law or legal process (including legal requirements and regulations of the U.S. Securities
and Exchange Commission and rules of NASDAQ), as determined by such party based on advice and counsel from such party’s outside securities counsel that such disclosure is advisable under such law or legal process; 
 (e) as set forth in the mutually agreed press release set forth in Exhibit A, provided that no further press releases regarding this Settlement
Agreement shall be made by any party or any Person employed or retained by a party; 
 (f) to a party’s or its Subsidiaries’
accountants, legal counsel and other financial and legal advisors in their capacity of advising a party in such matters, subject to obligations of confidentiality and/or other legal duties preventing disclosure consistent with this Article 6.2;

 (g) if a party is required to do so by a subpoena (or other legal process) or court order seeking disclosure of the terms set forth in
this Settlement Agreement, such party or Subsidiary shall, before responding thereto, provide the other parties with prior written notice of such subpoena, legal process, order or legal requirement in sufficient time (if reasonably feasible) to
permit the other parties the opportunity to object (or, if the timing of such litigation makes advance notice impracticable, such notice is provided within ten (10) days after such disclosure), to seek a court-entered protective order or
comparable court-ordered restriction, and shall reasonably cooperate with the other party in its efforts to obtain such protective order and provided further that, the disclosing party shall seek to have the disclosure of such terms and conditions
restricted, as authorized or permitted by the court, in the same manner as is the confidential information of other litigating Persons; and 
 (h) to a Third Party in connection with a potential merger or acquisition by, of or with the party, or any other potential Change Of Control of a party, provided that such disclosure shall (i) be on a strictly limited, need-to-know
basis, (ii) when the party believes that such transaction is reasonably likely to take place, and (iii) on terms applicable to other highly confidential information disclosed by such party in connection with such transaction provided such
terms prohibit disclosure, prohibit use for any purpose other than as required for due diligence in connection with the potential transaction and provide for reasonable care. 
 6.3 Representation Each party hereby declares and represents that it is executing this Settlement Agreement after consultation with its own
independent legal counsel. 
 6.4 Further Acts Each party agrees to perform any further acts, and to execute and deliver any further
documents that may be reasonably necessary to carry out the provisions of this Settlement Agreement. 
  

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 6.5 Notices All notices required or permitted to be given hereunder shall be in writing and shall
be made by depositing the writing with Federal Express, expenses prepaid for overnight delivery with receipt signature required. Notices shall be deemed effective upon execution of the receipt signature. Notices shall be addressed as follows:

  

			
	If to Synopsys:	  	Synopsys, Inc.
		  	700 East Middlefield Road
		  	Mountain View, CA 94043
		  	Attention: General Counsel
		
	If to Magma:	  	Magma Design Automation, Inc
		  	1650 Technology Drive
		  	San Jose, CA 95110
		  	Attention: General Counsel

 6.6 Governing Law This Settlement Agreement and matters connected with the performance
thereof shall be construed, interpreted, applied and governed in all respects in accordance with the laws of the United States of America and the State of California, without reference to conflict of laws principles. 
 6.7 Jurisdiction The parties agree (i) that all disputes and litigation regarding this Settlement Agreement and matters connected with its
performance be subject to the exclusive jurisdiction of the state or federal courts located in Santa Clara County, California, and (ii) to submit any disputes, matters of interpretation, or enforcement actions arising with respect to the
subject matter of this Settlement Agreement exclusively to these courts. The parties hereby waive any challenge to the jurisdiction or venue of these courts over these matters. 
 6.8 Severability If any provision of this Settlement Agreement is held to be illegal or unenforceable, such provision shall be limited or
eliminated to the minimum extent necessary so that the remainder of this Settlement Agreement will continue in full force and effect and be enforceable. The parties agree to negotiate in good faith an enforceable substitute provision for any invalid
or unenforceable provision that most nearly achieves the intent and effect of such provision. 
 6.9 Entire Agreement This Settlement
Agreement, with Exhibit A, embodies the entire understanding of the parties with respect to the subject matter hereof, and merges all prior discussions and agreements (written or oral) between them, and none of the parties shall be bound by any
conditions, definitions, warranties, understandings, or representations with respect to the subject matter hereof other than as expressly provided herein. No oral explanation or oral information by any party hereto shall alter the meaning or
interpretation of this Settlement Agreement. 
  

 - 12 - 

 6.10 Modification No modification or amendment to this Settlement Agreement will be effective
unless it is in writing and executed by authorized representatives of the parties, nor will any waiver of any rights be effective unless assented to in writing by the party to be charged. The waiver of any breach or default will not constitute a
waiver of any subsequent breach or default. 
 6.11 Construction Any rule of construction to the effect that ambiguities are to be
resolved against the drafting party will not be applied in the construction or interpretation of this Settlement Agreement. As used in this Settlement Agreement, the words “include” and “including,” “for example”,
“such as” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words “without limitation.” The headings in this Settlement Agreement will not be referred to in
connection with the construction or interpretation of this Settlement Agreement. 
 6.12 Counterparts This Settlement Agreement may be
executed in identical counterparts or duplicate originals, both of which shall be regarded as one and the same instrument, and which shall be the official and governing version in the interpretation of this Settlement Agreement. This Settlement
Agreement may be executed by facsimile signatures and such signatures shall be deemed to bind each party as if they were original signatures. 
 6.13 Assignability Subject to the Change Of Control provisions set forth above, this Settlement Agreement shall not be assignable by either party to any Person without the prior written consent of the other party. Consent may be
withheld for any reason. 
 IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be signed below by their
respective duly authorized officers. 
  

									
	Synopsys, Inc.	 		 	Magma Design Automation, Inc.
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	Dr. Chi-Foon Chan	 		 	Name:	 	Roy Jewell
	Title:	 	President & COO	 		 	Title:	 	President & COO
	Date:	 		 		 	Date:	 	

  

 - 13 - 

									
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	Brian Cabrera, Esq.	 		 	Name:	 	Clayton Parker, Esq.
	Title:	 	Vice President & General Counsel	 		 	Title:	 	Vice President & General Counsel
	Date:	 		 		 	Date:	 	

  

 - 14 - 

 Exhibit A 
 NEWS RELEASE 
  

							
	Synopsys Contacts:	 		 		  	Magma Contact:
				
	Editorial:	 		 		  	
	Yvette Huygen	 		 		  	Milan G. Lazich
	Synopsys, Inc.	 		 		  	Magma Design Automation
	(650) 584-4547	 		 		  	(408) 565-7706
	yvetteh@synopsys.com	 		 		  	Milan.lazich@magma-da.com
				
	Investor	 		 		  	
	Lisa Ewbank	 		 		  	
	Synopsys, Inc.	 		 		  	
	650.584.1901	 		 		  	

 Synopsys and Magma Agree to Settle All Litigation 
 MOUNTAIN VIEW and SAN JOSE, Calif., March 29, 2007 — Synopsys, Inc. (Nasdaq: SNPS) and Magma Design Automation (Nasdaq: LAVA) today announced the companies
have agreed to settle all pending litigation between them. As part of the settlement, 
  

	 	•	 	 Synopsys and Magma agree to release all claims in both California and Delaware and to cross license the patents at issue in these jurisdictions as well as any
related applications; 

  

	 	•	 	 Both companies agree not to initiate future patent litigation against each other for 2 years provided certain terms are met; 

  

	 	•	 	 Magma agrees to make a payment to Synopsys of $12,500,000 toward the settlement of this dispute; and, 

  

	 	•	 	 All other terms of the settlement are confidential. 

 “For us, this case has always been about the return of Synopsys technology and the protection of our IP, and we have achieved this,” said Aart de Geus, chairman and CEO of Synopsys, Inc. “Looking forward, we will focus our
energy fully toward our customers’ success and concentrate on growing our business.” 
 “This unfortunate episode involved significant expense
to both sides,” said Rajeev Madhavan, chairman and CEO of Magma. “I am pleased we found common ground for a resolution that makes business sense for both of us.” 
 About Synopsys 
 Synopsys, Inc. is a world leader in EDA software for semiconductor design. The company delivers
technology-leading semiconductor design and verification platforms and IC manufacturing software products to the global electronics market, enabling the development and production of complex systems-on-chips (SoCs). Synopsys also provides
intellectual property and design services to simplify the design process and accelerate time-to-market for its customers. Synopsys is headquartered in Mountain View, 
 California and has offices in more than 60 locations throughout North America, Europe, Japan and Asia. Visit Synopsys online at http://www.synopsys.com. 
  

 - 15 - 

 Synopsys is a registered trademark of Synopsys, Inc. All other trademarks mentioned in this release are the intellectual
property of their respective owners. 
 About Magma 
 Magma’s software for integrated circuit (IC) design is recognized as embodying the best in semiconductor technology. The world’s top chip companies use Magma’s EDA software to design and verify complex, high-performance ICs
for communications, computing, consumer electronics and networking applications, while at the same time reducing design time and costs. Magma provides software for IC implementation, analysis, physical verification, characterization and programmable
logic design, and the company’s integrated RTL-to-GDSII design flow offers “The Fastest Path from RTL to Silicon”TM. Magma is headquartered in Santa Clara, Calif. with offices around the world. Magma’s stock trades on Nasdaq
under the ticker symbol LAVA. Visit Magma Design Automation on the Web at www.magma-da.com. 
 Magma is a registered trademark and “The Fastest Path
from RTL to Silicon” is a trademark of Magma Design Automation Inc. All other product and company names are trademarks and registered trademarks of their respective companies. 
  

 - 16 -Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT is entered into on the 1st day of
June, 2007, by and between Alphatec Holdings, Inc. (the “Company”), a Delaware corporation, and Dirk Kuyper (the “Executive”) (hereinafter collectively referred to as the “parties”). 
 WHEREAS, the Company wishes to employ the Executive and the Executive wishes to be employed by the Company upon the terms and subject to the
conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein, the
parties agree as follows: 
 1. Employment Term. The Executive shall be employed by the Company for the period (the “Employment
Term”) beginning July 2, 2007 or such earlier date as the parties may agree (the “Effective Date”) and ending on July 1, 2011 unless the Company agrees to extend the Employment Term beyond July 1, 2011 by giving the
Executive at least three months’ advance notice thereof, or upon his termination of employment pursuant to Section 10 of this Agreement. 
 2. Position and Duties. The Executive will be employed as the President and Chief Executive Officer of the Company or in such other position(s) as may be mutually agreed upon by the parties, working principally from the
Company’s headquarters which currently are located in Carlsbad, California. The Executive will perform the duties, undertake the responsibilities and exercise the authority customarily performed, undertaken and exercised by persons employed in
a similar executive capacity or as directed by the Company’s Board of Directors (the “Board”). The Executive shall report directly to the Board. In addition, it is the Company’s intention that the Executive will be appointed or
elected to serve as a member of the Board of Directors of the Company (the “Board”) throughout the Employment Term. 
 3.
Devotion of Full Time and Attention. The Executive will devote his full working time, attention and skill to the performance of his duties and responsibilities as an executive employee of the Company and will do so in a trustworthy and
professional manner. He will use his best efforts to promote the interests of the Company. The Executive will not, without prior written approval of the Board, engage in any other activities that would interfere with the performance of his duties as
an employee of the Company, are in violation of written policies of the Company, are in violation of applicable law, or would create an actual or perceived conflict of interest with respect to the Executive’s obligations as an employee of the
Company. 
 4. Compensation. During his employment, the Executive shall be paid the following as compensation for his services:

 A. Base Salary. The Executive’s initial base salary will be $350,000 per annum (such base salary, as it may be adjusted from
time to time in accordance with this Section, the “Base Salary”), from which shall be deducted all required or authorized payroll deductions, including state and federal withholdings. The Base Salary will be payable in accordance with the
Company’s customary payroll practices applicable to its executives. The Base Salary will be reviewed, and may be adjusted, at least annually in a manner determined by the Board or, if the Board so directs, by the Compensation Committee of the
Board (the “Compensation Committee”). 
  

 1 

 B. Bonus. The Executive will be eligible for an annual bonus for each fiscal year of his
employment. Such bonus shall be based on a target equal to 100 per cent of the Executive’s Base Salary (which shall be pro rated for the fiscal year in which the Executive’s employment begins) and shall be awarded based on a
determination by the Board of the Executive’s performance against criteria mutually determined by the Board and the Executive at the beginning of each fiscal year (or at the beginning of the Employment Term in the case of the fiscal year in
which the Executive’s employment begins). Each bonus earned by the Executive will be paid to the Executive on or before 2 1/2 months following the end of the fiscal year in which the bonus was earned. If the Board so
directs, the determinations invested in it by this paragraph B may be made by the Compensation Committee. 
 C. Equity Compensation.

 (i) Effective on July 2, 2007, the Company shall grant the Executive 690,000 shares of restricted Company stock (the
“Shares”) pursuant to the Amended and Restated 2005 Employee, Director and Consultant Stock Plan (“Stock Plan”). So long as the Executive continues to be employed by the Company, 1/16 of all such Shares shall become
non-forfeitable and the restrictions thereon shall lapse (such shares then being referred to as “vested”) on October 2, 2007 and every three months until all such Shares have vested. Upon termination of his employment the Executive
shall forfeit his interest in any Shares which have not vested. In addition, in the event that there is a Change in Control (as defined below) during the Executive’s Employment, any Shares which have not previously vested shall become vested
immediately upon such Change in Control. 
 a. Change in Control. For purposes of this Section, “Change in Control” means
the occurrence of any of the following events: 
 (x) the acquisition by an individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in excess of 50% of either the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or the combined voting
power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (A), the following
acquisitions shall not constitute a Change in Control: (1) any acquisition of more than 50% of the Outstanding Company Common Stock directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any
security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter
or agent of the Company); 

  

 2 

 
(2) any acquisition of more than 50% of the Outstanding Company Common Stock by the Company; (3) any acquisition of more than 50% of the Outstanding
Company Common Stock by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or (4) any acquisition by any Person who, prior to such acquisition, already owned more
than 50% of the Outstanding Company Common Stock or Outstanding Company Voting Securities; or 
 (y) such time as the majority of the members
of the Board (or, if applicable, the board of directors of a successor corporation to the Company) is replaced during any 12-month period (commencing no earlier than the date of this Agreement) by directors whose appointment or election is not
endorsed by a majority of the members of the Board prior to the date of the appointment or election; or 
 (z) the consummation of a merger,
consolidation, reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company in one or a series of transactions (a “Business
Combination”), unless, immediately following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the
election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, respectively. 
 (ii) The Executive will also be eligible to be considered by the Compensation Committee for grants or
awards of stock options or other stock-based compensation under the Stock Plan or similar plans as in effect from time to time. All such grants or awards shall be governed by the relevant plan documents and requirements and shall be evidenced by the
Company’s then-standard form of stock option, restricted stock or other applicable agreement. 
 5. Benefits. The Executive will
be entitled to participate in all employee benefit plans, practices and programs maintained by the Company and made available to employees generally including, without limitation, all pension, retirement, profit sharing, savings, health,
hospitalization, disability, dental, life or travel accident insurance benefit plans, vacation and sick leave in accordance with the terms of such plans, practices and programs as in effect from time to time. 
 6. Expense Reimbursement. The Company will pay the reasonable and properly documented expenses incurred by the Executive in furtherance of the
Company’s business in accordance with applicable Company policies and procedures. 
  

 3 

 7. Vacation. The Executive may take up to four (4) weeks of paid vacation during each year at
such times as shall be consistent with the Company’s vacation policies and with vacations scheduled for other executives and employees of the Company. 
 8. Automobile Allowance. The Executive shall be entitled to be reimbursed up to $1,000 per month for expenses associated with his use of an automobile for Company business upon submission of appropriate
documentation of such expenses. 
 9. Relocation Expenses. The Executive has agreed to relocate his residence from Pennsylvania to the
Carlsbad, California area, which is where the Company’s headquarters are located. 
 A. The Company will reimburse the Executive for the
reasonable Relocation Expenses (as defined below) he incurs in selling his current home and in transporting himself, his family, and their belongings to a residence near the Company’s headquarters. The Company shall make such reimbursement
promptly upon presentation of reasonably detailed documentation of the Executive’s Relocation Expenses. For purposes hereof, “Relocation Expenses” shall mean the following reasonable expenses incurred by the Executive related to
moving his and his family’s primary residence from Pennsylvania to the Carlsbad, California area: (i) costs of looking for a new primary residence, including house hunting trips; (ii) attorneys’ fees, closing costs and
brokers’ commissions (up to 6%) associated with the sale of the Executive’s Pennsylvania residence, (iii) attorneys’ fees and closing costs associated with the purchase of the Executive’s new residence in the Carlsbad,
California area (but excluding mortgage loan fees and points); (iv) up to four months’ temporary family housing expenses; (v) relocation travel expenses; (vi) costs for the physical movement of furniture, clothing, household
effects, vehicles and other items from the Executive’s Pennsylvania home to the Carlsbad, California area; and (vii) if the Executive is not able, despite his reasonable best efforts, to sell his Pennsylvania home for $800,000 or more, the
difference between $800,000 and the sales price he obtains, provided that the amount payable by the Company pursuant to this subparagraph (vii) shall be capped at $100,000. To the extent any Relocation Expenses are deemed to be taxable
compensation to the Executive, the Company will make a “gross up” payment to the Executive sufficient to pay all federal, state and local income taxes imposed on the Executive in connection with the Company’s reimbursement of
Relocation Expenses and the payment of such taxes, but in no event shall the total of all amounts payable to the Executive pursuant to this paragraph A exceed $270,000. 
 B. If the Executive is unable to sell his Pennsylvania home within four months of the Effective Date (or such longer period as the parties may mutually agree), in lieu of receiving reimbursement of Relocation Expenses
as provided in paragraph A above, the Executive will receive a special bonus of $150,000 to support his purchase of a residence in the Carlsbad, California area plus up to $10,000 to reimburse his actual expenses for the physical movement of
furniture, clothing, household effects, vehicles and other items from the Executive’s Pennsylvania home to the Carlsbad, California area and the costs of up to four months’ temporary housing for himself and his family. 
  

 4 

 10. Termination and Compensation Upon Termination. The Executive’s employment shall
terminate, other than by expiration of the Employment Term, as set forth in this Section. 
 A. Definitions. 
 (i) Cause. For purposes of this Agreement, “Cause” means: 
 (A) a finding by the Board that the Executive failed to substantially perform his duties and obligations to the Company (other than a
failure resulting from the Executive’s incapacity because of a Disability, as defined below), including but not limited to one or more acts of gross negligence; 
 (B) a finding by the Board of a material breach of the Company’s Code of Conduct or other policies and procedures; 
 (C) indictment or conviction (including the entry of a plea of guilty or nolo contendere by the Executive) to any felony or any
misdemeanor or other criminal offense involving fraud, dishonesty, theft, breach of trust or moral turpitude or that requires mandatory exclusion in any Federal health care program pursuant to 42 U.S.C. § 1320a-7(a) during the Executive’s
employment; 
 (D) a finding by the Board that the Executive willfully engaged in conduct which is demonstrably and
materially injurious to the Company, monetarily or otherwise; 
 (E) a finding by the Board that the Executive materially
breached this Agreement; or 
 (F) the Executive’s violation of the Securities Act of 1933 or the Securities Exchange
Act of 1934. 
 (ii) Disability. 
 (A) Except as set forth in Section 10(a)(ii)(B) below, for purposes of this Agreement, “Disability” means a physical or mental illness, impairment or infirmity which renders the Executive unable to perform the essential
functions of his position, including his duties under this Agreement, with reasonable accommodation, as determined by a physician selected by the Company and acceptable to the Executive or the Executive’s legal representative, for at least one
hundred eighty (180) days during any 365-consecutive-day period. 
 (B) Notwithstanding the foregoing, to the extent that any payment
under this Agreement that is subject to Code Section 409A may be triggered due to a Disability, “Disability” shall mean Executive (A) is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (B) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under
a Company-sponsored group disability plan. 
  

 5 

 The Executive shall be entitled to the compensation and benefits provided for under this Agreement for
any period during the Term of this Agreement and prior to the establishment of the Executive’s Disability during which the Executive is unable to work due to a physical or mental illness, impairment or infirmity. Notwithstanding anything
contained in this Agreement to the contrary, the Executive will be entitled to return to his position with the Company as set forth in this Agreement in which event no Disability of the Executive will be deemed to have occurred, until the
Termination Date specified in a Notice of Termination (as each term is hereinafter defined) relating to the Executive’s Disability. 
 B. Events Resulting in Termination; Compensation Upon Termination. 
 (i) Termination for Cause. The Company may
terminate the Executive’s employment for Cause. 
 (A) If the Executive’s employment is terminated by the Company
for Cause, then the Company will pay the Executive all amounts earned or accrued hereunder through the Termination Date but not paid as of the Termination Date, including (1) Base Salary; (2) Expenses incurred by the Executive on behalf of
the Company for the period ending on the Termination Date; and (3) any bonus or other compensation with respect to the fiscal year ended prior to the fiscal year in which the Termination Date occurs that was earned but not paid (collectively,
“Accrued Compensation”). 
 (B) In the event that the Company terminates the Executive’s employment without
Cause, but the Board determines subsequently that the Company had the right to terminate the Executive’s employment for Cause pursuant to this Section 10B(i), the Company may terminate the payment of all amounts to the Executive pursuant
to Section 10B(ii) and the Executive shall return all previous payments made to him pursuant to Section 10B(ii) other than the Accrued Compensation. 
 (ii) Termination by the Company Without Cause. The Company may terminate the Executive’s employment without Cause. If the Executive’s employment with the Company is terminated by the Company without
Cause (excluding any termination due to the Executive’s death or Disability), then the Company will pay the Executive: 
 (A) all Accrued Compensation; 
 (B) a severance payment equal to the Executive’s Base Salary immediately
preceding the Termination Date which shall be paid to the Executive in twelve (12) equal monthly installments on the first business day of each month following the Termination Date except that the first payment shall not be sooner than the
eighth day following the date on which the Executive delivers to the Company the release referred to in Section 10B(ii)(D) below; 
  

 6 

 (C) directly, or by reimbursing the Executive for, the monthly premium for continuation
coverage under the Company’s health and dental insurance plans, to the same extent that such insurance is provided to persons currently employed by the Company, provided that the Executive makes a timely election for such continuation coverage
under the Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”). The “qualifying event” under COBRA shall be deemed to have occurred on the Termination Date. The Company’s obligation under this paragraph shall end
12 months after the Termination Date or at such earlier date as the Executive becomes eligible for comparable coverage under another employer’s group coverage. The Executive agrees to notify the Company promptly and in writing of any new
employment and to make full disclosure to the Company of the health and dental insurance coverage available to him through such new employment. 
 (D) The Company shall not be obligated to make the payments otherwise provided for in Sections 10B(ii)(B) and (C) unless the Executive provides to the Company, and does not revoke, a general release of claims in
a form satisfactory to the Company. 
 (iii) Disability. The Company may terminate the Executive’s employment upon
the Executive’s Disability. If the Executive’s employment with the Company is terminated because of his Disability, then the Company will pay the Executive (A) all Accrued Compensation; and (B) an amount equal to the
Executive’s target bonus for the fiscal year in which the Executive’s employment is terminated due to his Disability, multiplied by a fraction, the numerator of which shall be the number of days from the beginning of such fiscal year
through the Termination Date and the denominator of which shall be three hundred and sixty-five (365). If the Executive’s Disability meets the definition set forth in Section 10A(ii)(B), the Company will also pay the Executive any deferred
compensation. In addition, effective upon the Executive’s Disability, each outstanding option to purchase shares of Common Stock of the Company held by the Executive shall become immediately exercisable in full and will no longer be subject to
a right of repurchase by the Company, and each outstanding restricted stock award shall be deemed to be fully vested and will no longer be subject to a right of repurchase by the Company. 
 (iv) Death. The Executive’s employment shall terminate because of the Executive’s death. If the Executive’s
employment with the Company terminates because of the Executive’s death, then the Company will pay the Executive’s beneficiaries or heirs (A) all Accrued Compensation; and (B) an amount equal to the Executive’s target bonus
for the fiscal year in which the Executive’s employment is terminated due to his death, multiplied by a fraction, the numerator of which shall be the number of days from the beginning of such fiscal year through the Termination Date and the
denominator of which shall be three hundred and sixty-five (365). In addition, effective upon the death of the Executive, each outstanding option to purchase shares of Common Stock of the Company held by the Executive shall become immediately
exercisable in full and will no longer be subject to a right of repurchase by the Company, and each outstanding restricted stock award shall be deemed to be fully vested and will no longer be subject to a right of repurchase by the Company.

  

 7 

 (v) Resignation. The Executive may terminate this Agreement upon thirty
(30) days’ prior written notice to the Board. If the Executive’s employment with the Company is terminated by the Executive, then the Company will pay the Executive all Accrued Compensation earned through the Termination Date
specified in the Notice of Termination. 
 C. Notice of Termination. Any purported termination by the Company or by the Executive will
be communicated by a written Notice of Termination to the other. For purposes of this Agreement, a “Notice of Termination” means a notice which indicates the specific termination provision in this Agreement relied upon and sets forth the
Termination Date (as defined below). For purposes of this Agreement, no purported termination of employment will be effective without a Notice of Termination. 
 D. Termination Date. “Termination Date” will mean (i) in the case of the Executive’s Death, the Executive’s date of Death; (ii) if the Executive’s employment is terminated for
Disability, the date of the Executive’s Disability; (iii) if the Executive terminates his employment, on the effective date of termination specified in the Notice of Termination; and (iv) if the Executive’s employment is
terminated for any other reason, the date specified in the Notice of Termination, which will not be longer than seven (7) days after the Notice of Termination. 
 E. Timing of Payment. The Accrued Compensation payable to the Executive will be paid as required by applicable state law or within ten (10) business days after the Executive’s Termination Date,
whichever period is shorter. Any other compensation provided for in Section 10(b) will be paid as set forth above. 
 11.
Confidential Information and Intellectual Property; Non-solicitation of Employees. 
 A. Confidential Information. All
information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company’s business or financial affairs (collectively, “Confidential Information”) is and shall be the exclusive property
of the Company. By way of illustration, but not limitation, Confidential Information may include inventions, products, processes, methods, techniques, formulas, compositions, compounds, projects, developments, plans, research data, clinical data,
financial data, personnel data, computer programs, and customer and supplier lists. The Executive will not disclose any Confidential Information to others outside the Company or use the same for any unauthorized purposes without written approval by
an officer of the Company, either during or after his employment, unless and until such Proprietary Information has become public knowledge without fault by the Executive. 
 B. Business Records. All files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other
written, photographic, or other tangible material whether or not containing Confidential Information, whether created by 

  

 8 

 
the Executive or others, which shall come into his custody or possession, shall be and are the exclusive property of the Company to be used by the Executive
only in the performance of his duties for the Company and shall be returned to the Company upon termination of the Executive’s employment. 
 C. Third Party Information. The Executive’s obligation not to disclose or use information, know-how and records of the types set forth in paragraphs A and B above, also extends to such types of information, know-how, records and
tangible property of subsidiaries and joint ventures of the Company, customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to the Executive in the course of the
Company’s business. 
 D. Creations. All Creations (as herein defined) shall be the property of the Company.
“Creations” shall mean all ideas, prospect and customer lists, inventions, research, plans for products or services, potential marketing and sales relationships, business development strategies, marketing plans, designs, logos, branding,
layouts, templates, computer software (including, without limitation, source code), computer programs, original works of authorship, copyrightable expression, characters, know-how, trade secrets, information, data, developments, discoveries,
improvements, modifications, technology, methodologies, algorithms and designs, whether or not subject to patent or copyright protection, made, conceived, expressed, developed, or actually or constructively reduced to practice by the Executive
solely or jointly with others to the extent relating to or otherwise in connection with the Executive’s employment by the Company. The Executive agrees to cooperate in all respects regarding requests by the Company relating to the
Company’s intellectual property rights in the Creations, whether such cooperation is required during or after the termination of the employment period. 
 E. Non-solicitation. For a period of one (1) year after termination of the Executive’s employment for any reason, the Executive will not recruit, solicit or induce, or attempt to recruit, solicit or
induce, any employee of the Company to terminate his or her employment with, nor shall he otherwise interfere in the relationship between the Company and any such employee. 
 F. Remedy. The restrictions contained in this Section 12 are necessary for the protection of the business and goodwill of the Company and are
acknowledged by the Executive to be reasonable. The Executive agrees that any breach of this Section 12 will cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies
which may be available, the Company shall have the right to seek specific performance and injunctive relief in a court of law. 
 12.
Successors and Assigns. 
 A. Successor to Company. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such
succession had taken place. 
  

 9 

 B. Successor to the Executive. Neither this Agreement nor any right or interest hereunder will be
assignable or transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement will inure to the benefit of and be enforceable by the Executive’s legal personal
representative. 
 13. Arbitration. The Company and the Executive agree that they prefer to arbitrate any dispute they may have
instead of litigating in court before a judge or jury. Therefore, any and all disputes, claims and controversies between the Company or any of its Affiliates and the Executive arising out of or relating to this Agreement, or the breach thereof, or
otherwise arising out of or relating to the Executive’s employment or the termination thereof will be resolved by binding arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association (or any comparable rules then in existence). The arbitration will take place in the San Diego, California metropolitan area. The arbitrator will have no authority to award punitive damages. The award of the arbitrator will be final and
judgment thereon may be entered in any court having jurisdiction. The parties will share the costs of the arbitration equally, unless otherwise ordered by the arbitrator. Each party will bear its own attorneys’ fees and costs. Judgment upon the
arbitration award may be entered in any federal or state court having jurisdiction. The parties understand and agree that EACH PARTY TO THIS AGREEMENT WAIVES ANY RIGHT TO A JURY TRIAL. 
 14. Notice. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of
Termination) will be in writing and will be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other,
provided that all notices to the Company will be directed to the attention of the Board with a copy to the Secretary of the Company. All notices and communications will be deemed to have been received on the date of delivery thereof or on the third
business day after the mailing thereof, except that notice of change of address will be effective only upon receipt. 
 15.
Non-exclusivity of Rights. Nothing in this Agreement will prevent or limit the Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its subsidiaries
and for which the Executive may qualify, nor will anything herein limit or reduce such rights as the Executive may have under any other agreements with the Company or any of its subsidiaries. Amounts which are vested benefits or which the Executive
is otherwise entitled to receive under any plan or program of the Company or any of its subsidiaries will be payable in accordance with such plan or program, except as explicitly modified by this Agreement. 
 16. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and the Company. The Company and the Executive agree that they will negotiate in good faith and jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements of
Code Section 409A, or any successor statute, regulation and guidance thereto; provided that no such amendment shall increase the total financial obligation of the Company under this Agreement. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar 

  

 10 

 
provisions or conditions at the same or at any prior or subsequent time. No agreement or representations, oral or otherwise, express or implied, with respect
to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. 
 17. Governing Law.
This Agreement will be governed by and construed and enforced in accordance with the laws of the State of California without giving effect to the conflict of law principles thereof. The Executive hereby irrevocably submits and acknowledges and
recognizes the jurisdiction of the courts of the State of California, or if appropriate, a federal court located in California (which courts, for purposes of this Agreement, are the only courts of competent jurisdiction), over any suit, action or
other proceeding arising out of, under or in connection with this Agreement or the subject matter hereof. 
 18. Severability. The
provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof. 
 19. Tax Consequences. The Company makes no representation regarding, and does not guarantee, the tax treatment or tax consequences associated with
any payment or benefit arising under this Agreement. 
 20. Equity Pool for Other Employees. The Company has or will make available a
pool of stock options, restricted stock and/or other equity for the purpose of assisting the Executive to recruit capable management to support the Executive’s efforts to grow the Company and increase profitability. Any grant of such equity
shall be subject to approval by the Board in accordance with the terms of the Stock Plan or similar plans in effect from time to time. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written. 
  

			
	Alphatec Holdings, Inc.
		
		 	 /s/ John H. Foster

	Name:	 	John H. Foster
	Title:	 	President and Chief Executive Officer
	
	Dirk Kuyper
		
		 	 /s/ Dirk Kuyper

  

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